Globalization Today Globalization Today ––Globalization Today Globalization Today ––yyAn Enterprise Strategic Initiative An Enterprise Strategic Initiative

yyAn Enterprise Strategic Initiative An Enterprise Strategic Initiative

National Board Members’ Technical ProgramWednesday October 7 2009Wednesday, October 7, 2009

Mark SheehanManaging Director, DevelopmentASME Standards & Certification

Global Update OutlineGlobal Update Outline

C t A ti iti• Current Activities– China– India– Europe– Middle-East, Africa– Latin America

• External Relations

Strategic FocusStrategic Focus

ASME opport nities in China India• ASME opportunities in China, India and Europe

• Build ASME Code, Standard and Certification presence in Market

• Follow with products and services for the power industry and oil and gas sector; next phase bio/pharma sector

Global GrowthCertified Boiler & Pressure Vessel ManufacturersCertified Boiler & Pressure Vessel Manufacturers (Non-Nuclear)

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074 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08

U S & Canada International TotalU.S. & Canada International Total

Data as of 2008-06-30

Certified Manufacturers − China & India

250

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July 1, 2008 totals:

Chi 303

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China − 303

India − 107

100

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First manufacturer in China − 1985

China passes India − 1988

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100

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First manufacturer in India − 1980

080 82 84 86 88 90 92 94 96 98 00 02 04 06 08

China IndiaChina India

Projected Growth in Conformity Assessment

500550600

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Four Year Projection

Chi 303 t 575

350400450500

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China − 303 to 575

India − 107 to 160

200250300350

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China passes India − 1988

50100150200

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First manufacturer in India − 1980

080 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12

China IndiaChina (Projected) India (Projected)

Local Office StrategyLocal Office Strategy• Vital to future success and growth

M i t i t t k ith t• Maintain strong network with government and industry leaders

• Organize workshops and seminarsOrganize workshops and seminars• Attend trade shows and public meetings• Work with universities and industry to

promote training• Support ASME’s overall objectives

A t ASME’ l l i i i t• Act as ASME’s local inquiry point

Three Different ModelsThree Different Models

China Office ObjectivesChina Office ObjectivesObjectives being metObjectives being metIncrease number of companies in China certified by ASME.I / l f ASME C d d St d dIncrease use/sales of ASME Codes and Standards in China.Increase number of technical experts from China participating on ASME standards committees.Increase ASME Courses in China.Increase number of ASME Conferences in ChinaIncrease number of ASME Conferences in China.Increase number of ASME members from industry in China.

China Office ApproachChina Office Approach

• Requires strong government contacts due to political climate – CSCA Office was critical

• Builds on gov’t relations (and personal) to establish industry contacts – BRO’s strength

India Office ObjectivesIndia Office ObjectivesObjectives being metBuild an ASME Training capability in India• Sold 1 In-company course (Section VIII)• Held 3 train the trainer Sessions on B31Q, B31.8S and B31.8• Launching India Campus for Distance Learning (Sept 09)• Training providers/Instructors identified and vetted, contracts

pendingSupport local industry focused conferences as aSupport local industry-focused conferences as a mechanism for broadening business contacts• 2nd India Oil and Gas Pipeline Conference and workshop – a

successful modelsuccessful model Support membership development efforts• Established 3 new student sections with over 200 new student

members• first Student Design Competition yielded 17 teams

India ProgressIndia ProgressASME Codes now referenced…• ASME B31.4 Pipeline Transportation Systems for Liquid

Hydrocarbons and Other Liquids• ASME B31.8 Gas Transmission and Distribution Piping Systems• ASME Boiler and Pressure Vessel Code Section VIII, Division 1;

Pressure VesselsPressure Vessels• ASME Boiler and Pressure Vessel Code Section IX; Welding

Qualifications• ASME B16.5, B16.9, B16.20, B16.34, B16.36, B16.40; Standards for

Valves and Fittingsg• ASME B18.2.1 and B18.2.2; Standards for Screws, Bolts and Nuts• Under Consideration:

– ASME B31.8S Managing System Integrity of Gas Pipelines– ASME B31Q Pipeline Personnel Qualification Standard

The Ministry of Power Central Electricity Authority (CEA) ‘Standard Technical– The Ministry of Power, Central Electricity Authority (CEA) Standard Technical Specification for Main Plant Package of Sub-Critical Thermal Power Project 2x (500 MW or Above)’ of September 2008 includes 54 references to ASME standards such as the ASME Boiler & Pressure Vessel Code, ASME PTC-6, ASME PTC-12.2, ASME Section IX, ASME B36.10, ASME-TDP-1985, ASME Section VIII, ASME B31.1 and ASME B16.9, B16.11, B16.25.

Summary of GrowthSummary of Growth

• China: From March 2004 toChina: From March 2004 to September 2009, the number of certificate holders has risen from 117

40 (248%)to 407 (248%)

• India: From March 2004 to September 2009, the number of certificate holders has risen from 47certificate holders has risen from 47 to 144 (206%)

Europe Office Objectivesp j

Objectives being metObjectives being metEstablish a sustainable ASME presence and business portfolio:Development of an ASME training capability – Public Short Courses - Ran 3 programs in FY09

B l A t d St kh l• Barcelona, Amsterdam, Stockholm– Building 4 platforms in FY10

• Concentrating on Technical/Codes courses– In-company leads (five in negotiations)

• ASME Day at Suez in planning– Identified 4 local instructors– Identified 4 local instructors

Europe Office ActivitiesEurope Office ActivitiesDeveloped, promoted and managed Virtual Reality conference with French Society - 127 participantsO i d K St k h ld R dt bl f dOrganized Key Stakeholder Roundtable focused on Workforce Development in the Nuclear industrySupport for ICONE, PVP and ESDA ConferencesLeading efforts to develop relationship with EYE (European Young Engineers)Support of Sections and District Board– Monthly e-newsletter to over 20,000 members and

prospects

Middle East / AfricaMiddle East / Africa

G f C C (GCC) GCC• Gulf Cooperation Council (GCC) / GCC Standards Organization (GSO)*

Discussions on Standards– Discussions on Standards– Discussions on ASME Standards Training.

• Engaging Saudi Aramco in the S&C• Engaging Saudi Aramco in the S&C committees

• Regional S&C growth statsRegional S&C growth stats– Certificate holders rose 107% from 3/04 to 3/09

(or 98 to 203)

* GCC includes: Saudi Arabia, UAE, Qatar, Oman, Bahrain, Kuwait

Middle East / AfricaMiddle East / Africa

• South Africa ASME Codes continue to be• South Africa – ASME Codes continue to be referenced in South Africa and ASME held a Nuclear Codes and Standards Workshop Supporting New Build and NuclearSupporting New Build and Nuclear Manufacturing in South Africa' in Johannesburg in Oct. 08

• Nigeria – with the involvement of the StandardsNigeria with the involvement of the Standards Organization of Nigeria (SON), four ASME standards were referenced in new regulation in November 2008: – SECTION VIII: DIVISIONS 1, 2 & 3.– SECTION XII.

Latin America & CaribbeanLatin America & Caribbean

• Codes• Codes– Committee on ASME C&S in Spanish with

Subcommittees on Piping and Pipelines and Pressure Vessels

– C&S working with Regulators in Colombia, Bolivia and Argentina

– Certificate holders rose 57% from 3/04 to 3/09 (or 72 to 113)*113)

• Courses: – In FY 08, 11 training partners provided training to 1,563

professionals in 15 countriesprofessionals in 15 countries • Conferences

– RioPipeline, and 2 new events: Sub-Sea Brazil and RioOffShore

* does not include Mexico

External RelationsExternal RelationsPresident, ED & team participated in:

W ld E i i C W ld F d ti f– World Engineering Congress, World Federation of Engineering Orgs and UPADI in Brazil, Dec 2008

• Focus: Workforce Development and Continuing Ed.E M ti i M h f d N l– European Meetings in March focused on Nuclear Energy, Workforce Development and Climate Change.

• Rolls Royce Suez IMechE IDA etc• Rolls Royce, Suez, IMechE, IDA, etc.• Hosted Nuclear Workforce round-table

– China visits postponed due to H1-N1 Flu• CMES Ministries and Government Agencies• CMES, Ministries and Government Agencies

Reinforcing ASME’s Role as a Valued C t t P id d Thi d P t CContent Provider and Third-Party Convener

Global Growth at ASMEGlobal Growth at ASME

Three primary drivers:• Driven by Industry and ASME

Customers• Driven by Country/Regional Focus

d l l ff tand local efforts• Driven by internal, learning and

th ti iti ithi th tgrowth activities within the sectors.

Globalization Tomorrow -Globalization Tomorrow -An Enterprise Strategic InitiativeAn Enterprise Strategic Initiative

ASME’s Changing Presence*ASME s Changing Presence

“Top-Ten” Cert. Holders**“Top-Ten” MembershipJune 1999 March 2009

1 Italy (141) China (364)2 Germany South Korea

1998 20081 Japan (693) India (1,466)

2 Saudi Arabia Peru y3 China Italy

4 UK GermanySo th Korea India

3 UK Japan4 Singapore UK5 India Iran 5 South Korea India

6 France Mexico7 Japan Japan

5 India Iran6 South Korea Mexico7 Hong Kong Colombia

8 Mexico UK9 Spain France

10 Netherlands (28) UAE (66)

8 Mexico Venezuela9 Italy Pakistan

10 Germany (209) Australia (301) 10 ( ) ( )y ( ) ( )

* Excluding the US & Canada ** BPV and Nuclear Stamp Holders

Nations Turning to Nuclear EnergyFrance 2Lithuania 1

Slovakia 2Slovenia 1

Bulgaria 1Turkey 2

Russia 42Ukraine 2

Nations Turning to Nuclear Energy

Canada 2

Japan 12North Korea 1

Czech Rep. 2 Romania 3 Armenia 1 Kazakhstan 1

Canada 2USA 32Mexico 2

A ti 1

South Korea 7China 63India 23Vietnam 2Argentina 1

Brazil 1

Vietnam 2Indonesia 1

Red – Countries Using ASME Code as Basis

Egypt 1South Africa 25

Israel 1Iran 5

Nations have planned or proposed building more than 220 power reactors

Blue – Countries Considering Use of ASME Code

Pakistan 4power reactors

Source: World Nuclear Association (as of Dec. 8, 2006) in Nuclear Energy Insight, January 2007

ASME’s Global ChallengeASME s Global Challenge

• Keeping pace with the changing needs of engineers around the world

• Delivering needed products and services in a manner that is relevant to local social and economic conditions

ASME OperationsASME Operations

Country (Region) Approach• Country (Region) Approach– Deliver to established, defined market– Build appropriate local resources for

sustainable presence• Industry Approach

– Develop “Cut and Paste” programs forDevelop Cut and Paste programs for deployment to local partners

– Countries and local partners identified by Govt., Industry and Academic contactsGovt., Industry and Academic contacts

• Deployment, Coordination and Resource allocation by G-SET/SMC

Global SETGlobal - SET• To provide staff leadership for execution on

ASME enterprise strategic objective on “Globalization.”

• Charge: The Globalization Strategy Executive Team (G-SET) reports to the ExecutiveTeam (G SET) reports to the Executive Leadership Team (ELT); executes on ASME enterprise strategic objectives on “ l b li ti ” t k d“globalization”; tracks progress; and communicates on developments.

Global SETGlobal - SETCore Team: Mark Sheehan, Rob Lettieri, , ,

Burt Dicht, Tom Perry, Roy Arbeit, Michael Rovins, Mike Michaud (leader)

J Li ( )– June Ling (sponsor), – Bernie Hrubala (link to SMC)

Activities to date– Review of Charge, BOG’s Goals, Processes– Consensus on Metrics, Development of Index– Development of Report, Preparation for BOG

RetreatRetreat

Global IndexGlobal IndexGoal: Develop an accurate measure of p

ASME’s Global “footprint”.

• Measures “strategic” growth (revenue• Measures strategic growth (revenue is measured separately)

• Includes leading and lagging g gg gindicators

• Compiled per country but provides regional or “basket” viewsregional or basket views

• Valuable over long-term

Global IndexGlobal IndexMeasures include:“Global Index Top-Ten” Measures include:• Web Visits, Membership,

Stamp Holders and Participants from a wide

p6/2008 3/2009

1 Japan + XXX %

2 Saudi YYY % Participants from a wide range of ASME activities

• Adjusted and combined, it id b li t

2 Saudi - YYY %

3 England4 Singapore

provides a baseline country to country comparison

• Will serve as a growth

5 India6 South7 Hong Kong

measure over long term –beyond cycles.

8 Mexico9 Italy

10 Germany10 Germany

G SET Next StepsG-SET Next Steps

OG f G• Engage BOG at retreat, refine Global goals and strategyS t t t i l i• Support strategic planning process with Sectors and Business UnitsCoordinate Global activities internally• Coordinate Global activities internally with Units through SMC

• Provide Accurate Reporting to BOG• Provide Accurate Reporting to BOG

Defining ASME’s Global StrategyDefining ASME s Global StrategyRelevance + Responsiveness + RepetitionRelevance Responsiveness Repetition = Global Growth

• Relevance: Having products and services that meet the latest needs of engineers worldwide

• Responsiveness: Identifying where those products are needed and delivering them cost-effectivelyeffectively

• Repetition: Continuing to deliver in a consistent, quality manner