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KONE CMD 2015 Introduction to KONE’s supply chain operations in China Janne Kuisma, Head of Supply Operations China September 25, 2015

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Page 1: Introduction to KONE’s supply chain operations in China · KONE CMD 2015 Introduction to KONE’s supply chain operations in China . Janne Kuisma, Head of Supply Operations China

KONE CMD 2015

Introduction to KONE’s supply chain operations in China Janne Kuisma, Head of Supply Operations China September 25, 2015

Page 2: Introduction to KONE’s supply chain operations in China · KONE CMD 2015 Introduction to KONE’s supply chain operations in China . Janne Kuisma, Head of Supply Operations China

KONE’s supply chain

Kunshan production facility

September 25, 2015 Janne Kuisma | KONE's Capital Markets Day 2015 | © KONE Corporation 2

Page 3: Introduction to KONE’s supply chain operations in China · KONE CMD 2015 Introduction to KONE’s supply chain operations in China . Janne Kuisma, Head of Supply Operations China

September 25, 2015 Janne Kuisma | KONE's Capital Markets Day 2015 | © KONE Corporation 3

Elevators are delivered as modules

Module

1 Hoisting machinery

2 Guide rails

3 Hoist mechanics

4 Car sling

5 Counterweight filler bits

6 Elevator car

7 Electrification

8 Signalisation

9 Doors

10 Door operator

11 Intercom devices

12 Rope compensator

13 Fences and beams

Counter-weight

Machinery

Suspension ropes

Car and car door

Landing door

Buffers

Guide rails

Sling

Page 4: Introduction to KONE’s supply chain operations in China · KONE CMD 2015 Introduction to KONE’s supply chain operations in China . Janne Kuisma, Head of Supply Operations China

A streamlined and capital-light network of production and distribution centers, focusing on assembly

Suppliers Customers’ installation sites

KONE’s manufacturing units

KONE’s distribution centers

Suppliers include component manufacturers, raw material providers and contract manufacturers.

Production consists largely of the assembly of sourced components. Only selected components are produced in-house.

The final assembly of equipment is carried out on-site in the course of installation.

Coal Valley

Hyvinkää

Kunshan

Chennai

Ùsti nad Labem

Torreón

Pero

Nanxun (GiantKONE)

Allen

Janne Kuisma | KONE's Capital Markets Day 2015 | © KONE Corporation 4 September 25, 2015

Page 5: Introduction to KONE’s supply chain operations in China · KONE CMD 2015 Introduction to KONE’s supply chain operations in China . Janne Kuisma, Head of Supply Operations China

KONE’s supply chain

Kunshan production facility

September 25, 2015 Janne Kuisma | KONE's Capital Markets Day 2015 | © KONE Corporation 5

Page 6: Introduction to KONE’s supply chain operations in China · KONE CMD 2015 Introduction to KONE’s supply chain operations in China . Janne Kuisma, Head of Supply Operations China

Overview of KONE’s Kunshan factory

The new Kunshan factory opened 2013 and is KONE’s largest manufacturing facility globally for elevators and escalators

Total headcount is over 2,000 at the Kunshan site

Flexible operation according to actual demand

R&D center with the highest elevator test tower in China to be opened soon

September 25, 2015 Janne Kuisma | KONE's Capital Markets Day 2015 | © KONE Corporation 6

Page 7: Introduction to KONE’s supply chain operations in China · KONE CMD 2015 Introduction to KONE’s supply chain operations in China . Janne Kuisma, Head of Supply Operations China

The Kunshan manufacturing facility consists of four separate factories

1. Test tower

2. Offices

3. Electrification factory

4. Escalator factory

5. Car factory

6. Machine factory

September 25, 2015 Janne Kuisma | KONE's Capital Markets Day 2015 | © KONE Corporation 7

1

2

6

5 4

3

Page 8: Introduction to KONE’s supply chain operations in China · KONE CMD 2015 Introduction to KONE’s supply chain operations in China . Janne Kuisma, Head of Supply Operations China

September 25, 2015 Janne Kuisma | KONE's Capital Markets Day 2015 | © KONE Corporation 8

Machine factory

Production area: 8,200m2 Three production lines

Page 9: Introduction to KONE’s supply chain operations in China · KONE CMD 2015 Introduction to KONE’s supply chain operations in China . Janne Kuisma, Head of Supply Operations China

September 25, 2015 Janne Kuisma | KONE's Capital Markets Day 2015 | © KONE Corporation 9

Car factory

Production area: 16,000m2

Automated & semi-automated production lines

Page 10: Introduction to KONE’s supply chain operations in China · KONE CMD 2015 Introduction to KONE’s supply chain operations in China . Janne Kuisma, Head of Supply Operations China

September 25, 2015 Janne Kuisma | KONE's Capital Markets Day 2015 | © KONE Corporation 10

Escalator factory

Production area: 18,800m2

Standard & heavy-duty escalator production

Page 11: Introduction to KONE’s supply chain operations in China · KONE CMD 2015 Introduction to KONE’s supply chain operations in China . Janne Kuisma, Head of Supply Operations China

September 25, 2015 Janne Kuisma | KONE's Capital Markets Day 2015 | © KONE Corporation 11

Electrification factory

Production area: 8,600m2 Production of electrification systems for elevators and escalators

Page 12: Introduction to KONE’s supply chain operations in China · KONE CMD 2015 Introduction to KONE’s supply chain operations in China . Janne Kuisma, Head of Supply Operations China

Safety guidelines for the factory visit

September 25, 2015 Janne Kuisma | KONE's Capital Markets Day 2015 | © KONE Corporation 12

We will tour the factory in three groups led

by KONE personnel

Two factories will be visited in a golf cart, two by foot

No safety shoes or helmet will be used during this visit – please stay strictly in the designated area and follow the instructions of the group leader

Please do not take photographs inside the factories. Photography is allowed outside.

Page 13: Introduction to KONE’s supply chain operations in China · KONE CMD 2015 Introduction to KONE’s supply chain operations in China . Janne Kuisma, Head of Supply Operations China