WÄRTSILÄ SERVICES 2015

Transcription

1 WÄRTSILÄ SERVICES 2015 LIFECYCLE EFFICIENCY THROUGH OPTIMISING OPERATIONS Guido Pfister General Manager, 2-S Services, Middle East and Asia 1 Wärtsilä 6 August 2015 SERVICES PRESENTATION 2015

2 Wärtsilä Services in brief 2 Wärtsilä 6 August 2015 SERVICES PRESENTATION 2015

3 Wärtsilä Services Mission and Strategic Goal Wärtsilä Services Mission We create lifecycle services with our customers, enhancing their business whenever, wherever. Wärtsilä Services Strategic Goal Our customers recognize us as their most valued and competitive service partner: competent, reliable and easy to deal with. 3 Wärtsilä 6 August 2015 SERVICES PRESENTATION 2015

4 Services in a nutshell In one year: We serve 12,000 customers 115,000 deliveries, constituting more than 900,000 line items, packed in 134,000 packages 117,000 unique materials stored 16,300,000 kg of parts, with a total volume of 46,700 m 3 66,700 export declarations Our 3,600 field service professionals perform 100,000 field services jobs Around 106,000 transportations making use of roughly 150 carrier modalities We provide 20,000 technical answers We maintain knowledge and skills for 350 different product types We maintain 450 installations under longterm contract...one promise to the customer: We offer expertise, proximity, reliability and responsiveness for our customers in the most sustainable way 4 Wärtsilä 6 August 2015 SERVICES PRESENTATION 2015

5 We are where our customers need us to be 11,000 service professionals in 70 countries, 160 locations Marine installed base by operating country Power installed base by operating country Service locations 5 Wärtsilä 6 August 2015 SERVICES PRESENTATION 2015

6 LIFECYCLE EFFICIENCY THROUGH OPTIMISING OPERATIONS 6 Wärtsilä 6 August 2015 SERVICES PRESENTATION 2015

7 Why are we changing the 2S-Service organization? We want to become MUCH more customer focused. We change our setup to become much more agile 2- stroke customer focused. With a dedicated organization, we can be fast and efficient, and we can maintain the focus which is needed to serve our customers. We are the service provider for the new 2-stroke Joint Venture Company (Wärtsilä+CSSC WIN G&D) where we commit to give fast and competitive services. We want to serve other 2-stroke brands. Our value proposition will be: OEM quality - but faster and more attractive pricing. Wärtsilä

8 Global 2-stroke Services and seven hubs 2-stroke Centre Winterthur (Serves also as Hub for SEAF) Global Management Global Sales & Innovation Parts Management Product Management Operation Support Engineering & Experts Field Services Warranty Management Training Projects & Contracts Mgmt North Europe Hub China Hub East Asia Hub Americas Hub Hub Functions ( not all functions are located at the Hub): Business Management Sales and Sales Support Field Services coordination Technical Support South Europe & Africa Hub Middle East & South Asia Hub South East Asia Hub 8 Wärtsilä 6 August 2015

9 Strategic focus areas and our perspective on improving lifecycle efficiency 9 Wärtsilä 6 August 2015 SERVICES PRESENTATION 2015

10 Our customer promise Optimising customer operations whenever, wherever is our shared passion. We provide the broadest portfolio of products and services for the marine and energy markets. We offer expertise, proximity and responsiveness for all customers in the most environmentally sound way. 10 Wärtsilä 6 August 2015 SERVICES PRESENTATION 2015

11 Improving lifecycle efficiency Performance optimisation Longer term strategies are aimed at improving business efficiency. Optimising performance of installations reduces operational expenses and improves uptime. Preventing the unexpected Reliable, continuous performance is essential. Planning the operational reliability of installations through access to highest quality of technologies, services and competences ensures smooth operations and managing risk. Environmental efficiency Environmental legislation and energy efficiency are currently major concerns for our customers. Sustainable solution options enable a reduced environmental impact and improved operational efficiency. 11 Wärtsilä 6 August 2015 SERVICES PRESENTATION 2015

12 Colombo, 28 July 2015 Guido Pfister (General Manager, 2-S Service, Middle East and Asia) 12 Wärtsilä 06 August 2015 TCO Optimization/ NZU001

13 Factors influencing the profitability of shipping: Reduced shipping volumes globally Overcapacity Low freight rates Unpredictable markets Increased focus on shareholder value Rise of accounting style of management in Shipping Measure of profitability: = Net Profit / Capital employed KEY POINT: Reducing costs by $1 >>> influence than increasing revenues by $1 13 Wärtsilä 06 August 2015 TCO Optimization / NZU001

14 TCO CAPEX OPEX Total cost to acquire, finance, own, sell or scrap a total asset or a single capital equipment Total lifecycle cost for running, operating and maintaining an asset or single equipment 14 Wärtsilä 06 August 2015 TCO Optimization / NZU001

15 Bulk Carrier kw 14% 1% 2% Fuel Costs 6% Lube Oil Costs Engine Financing 4% 2% Fuel 70.8% Engine Maintenance Costs Insurance Costs Fees & other Costs Manpower Costs 15 Wärtsilä 06 August 2015 TCO Optimization / NZU001 Total Cost of Ownership of Marine Propulsion Engines/ Rolf Vestergren, CIMAC Sept.2010

16 TCO Ideal maintenance costs According to design & documentation Real life Maintenance Costs Including real life influences Vessel Operating Costs 18 Wärtsilä 06 August 2015 TCO Optimization / NZU001

17 TCO Ideal maintenance costs According to design & documentation Real life Maintenance Costs Component Pricing Component Lifetimes Maintenance Possibilities 19 Wärtsilä 06 August 2015 TCO Optimization / NZU001

18 TCO Ideal Case According to design & documentation Real life case Including real life influences TBO variations Failure & Reliability issues Off-hire & charter penalties 20 Wärtsilä 06 August 2015 TCO Optimization / NZU001

19 TCO Vessel Operating Costs Fuels & Lubes Manning Insurance 21 Wärtsilä 06 August 2015 TCO Optimization / NZU001

20 Wärtsilä Offerings for TCO Optimization CAPEX Optimized Products Portfolio OPEX ENGINE SERVICES Propulsion Services Automation Services Shafting & Seals Services FLEX Agreements 22 Wärtsilä 06 August 2015 TCO Optimization / NZU001

21 Solutions Portfolio 2-stroke RPLS Lub rica CLU1-E tion Slow Steaming Upgrade Kit T/C Blinding FAST Intelligent Combustion Monitoring & Control RITA Fuel Efficiency IMO Approved Method Environ facturing -ment Main- Spare Parts Field Service Maintenance on request BoB Engine C&M Remanu- tena- nce Proactive Maintenance FLEX Service Agreements DENIS-R / SBC-R 23 Wärtsilä MAPEX-PR Remanufactured parts

22 Solutions for Wärtsilä 2-Stroke Engines Cyl. Engine Type RPM - CMCR KW - CMCR Fuel Savings Solution (Potential Savings) 8 RTA82C SSUK (4 to 10g/kWh) RITA (Upto 2.5g/kWh) FAST * (1g/kWh) 8 RTA82C SSUK (4 to 10g/kWh) RITA (Upto 2.5g/kWh) FAST * (1g/kWh) 6 RT-flex50-B ICC (Upto 2.5g/kWh) FAST (1g/kWh) 6 RT-flex50-B ICC (Upto 2.5g/kWh) FAST (1g/kWh) 7 RTA84T-D SSUK (4 to 10g/kWh) FAST * (1g/kWh) 7 RTA84T-D SSUK (4 to 10g/kWh) FAST * (1g/kWh) 6 RTA68-B RITA (Upto 2.5g/kWh) FAST * (1g/kWh) 6 RTA68-B RITA (Upto 2.5g/kWh) FAST * (1g/kWh) 6 RTA58T RITA (Upto 2.5g/kWh) FAST * (1g/kWh) CLO Savings Solution (Potential Savings) RPLS (up to 30% savings on SLOC) RPLS (up to 30% savings on SLOC) RPLS (up to 30% savings on SLOC) RPLS (up to 30% savings on SLOC) RPLS (up to 30% savings on SLOC) 5 RTA RITA (Upto 2.5g/kWh) FAST * (1g/kWh) RPLS (up to 30% savings on SLOC) 7 RTA RITA (Upto 2.5g/kWh) FAST * (1g/kWh) SSUK (4 to 10gm/kWh) RPLS (up to 30% savings on SLOC) 7 RTA RITA (Upto 2.5g/kWh) FAST * (1g/kWh) SSUK (4 to 10gm/kWh) RPLS (up to 30% savings on SLOC) 7 RTA RITA (Upto 2.5g/kWh) FAST * (1g/kWh) SSUK (4 to 10gm/kWh) RPLS (up to 30% savings on SLOC) 5 RTA RITA (Upto 2.5g/kWh) FAST * (1g/kWh) RPLS (up to 30% savings on SLOC) 5 RTA RITA (Upto 2.5g/kWh) FAST * (1g/kWh) RPLS (up to 30% savings on SLOC) 6 RTA RITA (Upto 2.5g/kWh) FAST * (1g/kWh) CLUE-1 24 Wärtsilä 06 August 2015 TCO Optimization / NZU001

23 2-STROKE FLEX AGREEMENTS AGREEMENTS FITTING THE SPECIFIC NEEDS OF CUSTOMERS WITH WÄRTSILÄ RT-FLEX AND W-X MAIN ENGINES Wärtsilä Services, 2-stroke 25 / Wärtsilä August 2015 TCO Optimization / NZU001 Doc.ID: Revision: Status:

24 Agreements for merchant vessels covered equipment Vessel technical management 2-stroke Flex Agreements Piston running Complete main engine RCS Complete main engine Turbochargers RCS Complete main engine Engine room management Propulsion machinery management All engines management Main engine management RT-flex comp. RT-flex comp. 26 Wärtsilä 06 August 2015 TCO Optimization / NZU001

25 Support Deliverables Agreements for merchant vessels services scopes All or selected parts deliveries (if required with fleet-specific stocks / exchange pools) Shore-based resources for all or selected jobs (Supervision, specialists, technicians. Optionally: riding squads or permanent crew) Workshop services (remanufacturing, overhauls) Remote monitoring, regular onboard audits, technical advice (ensuring and optimizing performance, efficiency, reliable operation and lifecycle costs) Technical and logistics management (technical services, maintenance management, end-to-end logistics and inventory) Projects management for dry-docking or upgrades (technical services, maintenance management, end-to-end logistics and inventory) Contract and financial management (technical services, maintenance management, end-to-end logistics and inventory) Guarantees and risk / benefit sharing schemes (for jointly specified KPIs) 27 Wärtsilä 06 August 2015 TCO Optimization / NZU001

26 Agreements for merchant vessels offerings 2-stroke flex agreements Supply Agreements Technical Management Maintenance Agreements Asset Management Manpower Spare parts Workshops E-Solutions Maintenance planning Risk evaluation Condition monitoring & inspection Training and competences Planning support Manpower & parts Performance guarantee Global coordination & supply Operations & Maintenance Manpower & crew Equipment Installation 28 Wärtsilä 06 August 2015 TCO Optimization / NZU001

27 Contract support services Equipment scope Scope modules for 2-stroke flex agreements Included or optional service levels Provision of all required parts always included Either supervision of work or partial or full workforce Globally or only in selected ports With or without: guaranteed component service lifetimes service level guarantees performance/efficiency guarantees availability guarantees Piston running Complete main engine Control systems Complete main engine Turbochargers Control systems Complete main engine All or selected RTflex components All RT-flex components Dedicated contract mgmt, global delivery coordination, regular mgmt reports and reviews Maintenance planning or planning support Technical support for crew, trouble-shooting if required Optional Optional Optional CBM / Optimiser system 2-4 onboard inspections per year for condition evaluation Monthly performance/condition monitoring, expert evaluation & reporting 29 Wärtsilä 06 August 2015 TCO Optimization / NZU001

28 Services scope and guarantees per commercial model Scope items In-house Shared Outsourced Flat Rate Outsourced Pay-by-hour Parts Remanufacturing / exchange parts Onboard supervision Recommended Onboard work Optional Onboard audits Optional Recommended Remote monitoring -- (or optional) Logistics management Maintenance management -- Planning support Technical support Optional Management -- Guaranteed TBOs -- Pro-rata scheme Guaranteed total costs Hrs dependent Guaranteed service levels Guaranteed performance tbd by parties Tbd by parties Guaranteed availability tbd by parties Tbd by parties 30 Wärtsilä 06 August 2015 TCO Optimization / NZU001

29 Example of annual costs with In-House 31 Wärtsilä 06 August 2015 TCO Optimization / NZU001

30 Example of annual costs with Shared 32 Wärtsilä 06 August 2015 TCO Optimization / NZU001

31 Pro-rata pricing scheme for components in Shared Example: ICU, hrs TBO Pro-rata benefit sharing for extended TBOs Normal net price Normal net price x 125% Normal net price x 50% Full warranty Pro-rata risk sharing for too short TBOs Normal TBO hrs Extended TBO e.g. 150% 33 Wärtsilä 06 August 2015 TCO Optimization / NZU001

32 Example of annual costs with Outsourced: Flat rate 34 Wärtsilä 06 August 2015 TCO Optimization / NZU001

33 Example of annual costs with Outsourced: Pay-by-Hour 35 Wärtsilä 06 August 2015 TCO Optimization / NZU001

34 Comparison of commercial models Annual costs depending on operating hours Cost dimensions shown for a RT-flex components scope 36 Wärtsilä 06 August 2015 TCO Optimization / NZU001

35 2-stroke flex agreements A solution to improve and control your operational results / 42 Doc.ID: Revision: Status:

36 FLEX Agreements Agreement costs versus total vessel management cost 39 / 42 Wärtsilä 06 August 2015 TCO Optimization / NZU001 Doc.ID: Revision: Status:

37 Comparison of largest scope with typical ship mgmt costs Typical annual OPEX for MR1 size tankers Expected average inflation rates for different OPEX elements (figures based on Drewry): Maintenance & Repair 4.0% Crewing 3.5% Wärtsilä agreement costs considered Insurance 5.0% with 2% annual inflation rate Lubes & Stores 4.0% Others 1.5% 40 / Wärtsilä August 2015 TCO Optimization / NZU001 Doc.ID: Revision: Status:

38 Average ship management costs and cost spreads Extrapolated from market analysis report results, which analysed real costs 2012 of >1 000 vessels Market displays high cost spread for M&R costs. Partly explainable by normal fluctuation of overhaul needs, but partly due to high risk of unexpected repairs. Wärtsilä Service Agreements support customers to minimize this risk and to keep these costs within a narrow and predictable cost range. 41 / Wärtsilä August 2015 TCO Optimization / NZU001 Doc.ID: Revision: Status:

39 Guido Pfister /Thank you. 42 Wärtsilä 06 August 2015 TCO Optimization / NZU001