APC 2011 Annual Report Download - page 35

332011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
DESCRIPTION OFTHEGROUP, ANDITSSTRATEGY, MARKETS ANDBUSINESSES
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ORGANISATIONAL SIMPLICITY ANDEFFICIENCY
4.2 A more modular approach to information systems
In 2011 Schneider Electric continued with the redesign of its
ITstrategy, in order to gradually roll out a common model aimed at
simplifying and standardising operations. This model is developing
towards a more open architecture, capable of deploying faster and
less inter-dependent IT platforms to allow for easier upgrades at a
lower cost.
Four platforms are being rolled out for employee management,
customer relations, back-offi ce functions and R&D support systems.
The gradual roll out of an SAP-based information system known
as “bridge” is now focused on back-offi ce functions. After pilot
testing in India, Hungary, Austria, Croatia, Romania, Slovakia and
Slovenia, in 2011 the bridge core system has continued to be rolled
out various countries and entities. The roll out will continue in 2012.
This thinking at Group level was facilitated by the globalisation of
information systems within a single IT function created in 2009 that
has a governance role and provides services internally. This move
towards globalisation mainly involved:
•gradually deploying a single IT Department that serves all
businesses and users within Schneider Electric in a uniform
manner. To achieve this, the most qualifi ed and competitive
providers – both internal and external – will be used as needed;
•gradually setting up a global IT infrastructure (networks, data
centres, distributed computing and help desk) that is independent
of the various managerial lines and that makes the most of the
Group’s critical size and accumulated experience.
4.3 Worldwide redeployment of production and supply chain resources
Schneider Electric has more than 260 production sites and
110 distribution centres around the world for whom customer
satisfaction is the top priority.
While working constantly to improve occupational health and safety
and environmental protection, the Group’s manufacturing policy
aims to fulfi l four key objectives (listed in order of importance):
1. deliver a level of quality and service that meets or exceeds
customer expectations;
2. achieve competitive product costs and keep increasing
productivity;
3. develop the speed and effi ciency of the system and limit
production sites’ risk exposure (currency parity, geopolitical risks
and changes in cost factors);
4. optimise capital employed in manufacturing operations.
A number of the production facilities and distribution centres are
dedicated to the global market. The other units are located as
close as possible to their end markets. Although design and/or
aesthetic features may be adapted to meet local requirements,
Schneider Electric standardises key components as much as
possible. This global/local approach helps Schneider Electric
maximise economies of scale and optimise profi tability and
servicequality.
Drawing on its global scope, the Group has re-balanced and
optimised its manufacturing and supply chain resources. The Group
launched a new stage in its industrial deployment in 2010. As part
of the Group’s new organisation, the Power business production
and supply chain resources have been globalised and combined
under a single organisation, with global operating responsibility.
Previously, these resources were organised by region and reported
to the various Operating Divisions.
In Western Europe, the United States, Japan and Australia,
rightsizing plans continued to be deployed with a focus on
specialising production and supply chain units and reducing the
number of sites.
Continuous improvement on a global scale
At the same time, an industrial excellence programme called
Schneider Production System (SPS) has been rolled out in all
plants to substantially and continuously improve service quality
and productivity. The programme also takes environmental criteria
into account. Based on a lean manufacturing approach, SPS is
supported by the extension of Six Sigma and Quality and Value
Analysis programmes across the Group. By deploying these
optimisation methods globally and sharing best practices, the
Group intends to lift the operational performance of all its plants to
the same high standard.
Schneider Electric’s plants and products comply with increasingly
extensive and stringent European regulations and with international
standards governing environmental protection in all host countries.
In many cases, the Group anticipates future standards. In 1992,
Schneider Electric defi ned a formal environmental policy, which was
revised in 2004 to take account of changes both inside and outside
the Group. This policy is designed to improve production processes,
promote eco-design, integrate customer expectations into the
Group’s environmental protection approach and raise awareness
among all employees and partners about environmental protection
and energy effi ciency. In order to limit risks related to the environment
generally, the Group has implemented an ISO 14001-compliant
process to continuously improve the environmental performance of
its plants and supply chain centres.
External environmental audits were implemented in 2011 that were
responsible for validating this process as well as for the consistency
of assessments.
The segmented response to customers’ needs
Since 2011, a new approach to progress was initiated in terms
of the search for responses that were better adapted to industrial
operation for each customer segment (distributers, partners, panel
builders,etc.).