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Jan Nickmans and Bart Peetermans with Prof. Geert Waeyenbergh, An Molenaers and Mrs Els De Keukelaere (KPMG). 20 years of KPMG Management Award Group t students develop total cost model for spare parts management A perfect mix of technology, management and teamwork with a distinct international flavor. The KPMG jury had no difficulties selecting the winners of the 20 th edition of the Management Award. Bart Peetermans and Jan Nickmans, two Electromechanics engineers, were awarded for their pioneering thesis at Continental Temic Electronics in Calamba City in the Philippines. GROUP T - LEUVEN ENGINEERING COLLEGE 4 Six master’s theses were submitted for the 20 th edition of the Management Award from the auditing company KPMG. In each of the works, one or more aspects of management are discussed, and these include investment analysis, cost evaluation, production planning, market study, plant layout, information management, quality management, and so on. One master’s thesis stood out head and shoulders above the rest. Bart and Jan’s project was not only awarded the highest score but it stood out in other ways as well. From July to September 2009, the pair stayed in the Philippines. “Prof. Guido Vercammen put us in touch with Dirk Verhaeren, a GROUP T alumnus who now works for the Continental plant in Calamba”, Bart relates. “He offered us three interesting project proposals in the company. In consultation with our supervisors, professors Geert Waeyenbergh and An Molenaers, we opted for optimizing the spare parts management.” Optimal stock Continental Temic Electronics is part of the Continental Corporation Automotive Group. The plant in Calamba manufactures electronic components, more particularly pressure sensors, for the car industry. “As usual in the electronics sector, Continental has a fully automated sequential production layout”, Jan continues. “Of course that has its advantages, but there is also a weak point. Any link in the chain has the potential of shutting down the entire line. So there have to be enough spare parts available on a permanent basis to repair or replace a defective part immediately.” “And that is exactly where the problem was at Continental”, Bart adds. “How big a stock of spare parts do you need? These parts are not cheap, after all. If your stock is too large, the company has a needlessly jg. 20, nr. 1, 15 december 2010 great expense. If it is too small, you risk the entire production coming to a standstill if there is a breakdown and then suffering considerable loss.” “Our model allowed Continental to increase production reliability.” Establishing and managing the optimal stock of spare parts, that was the challenge Bart and Jan faced. “We started with drawing up an inventory of the company’s stocks”, Jan says. “Via the data in the SAP system we soon found out that there were clearly too many machine parts in stock. This was also revealed in the many conversations we had with the managers who were responsible for logistics and maintenance. In the next phase of our research we carried out a socalled Failure Mode and Effect Analysis. This consists in checking, for each part, what could happen if it brakes or fails. If you know how a part can fail, you can also assess the risks and draw up an appropriate maintenance plan of the components that require monitoring. This will enable you to formulate a preventive ranking of critical parts.” Total cost Subsequently, Bart and Jan had a look at the financial picture. “Based on the available financial data, the before-mentioned risk analysis and the expected usage pattern, we mapped the annual cost of every part”, explains Bart. “While the conventional prediction models provide a good indication of a part’s use over a certain period, they cannot predict the optimal stock that has to be available. To do this, you have to have a precise understanding of the costs. So we developed a model that accurately assesses the annual cost for various stock levels. Using this model we can determine the minimum, the maximum and the so-called safety stock level. Our total cost model offers clear stock control decision criteria that are easy to interpret. Once the optimal stock quantity and value have been determined, ordering parts can be perfectly aligned to maintenance planning.” Bart and Jan’s work did not go unnoticed at Continental. “One thing is for sure, it did lead to a greater financial awareness among management,” Jan confirms. “They were genuinely amazed to learn how much money the stocks represent in the company. Our model allowed Continental to increase production reliability.” Extra reference Both laureates speak very positively of their stay on the Philippines. “A pleasant country with hospitable, friendly people who furthermore speak good English. We were given a good reception and were coached well, also locally by Dirk Verhaeren. What was remarkable was also the great freedom we were given in the company as well as the helpfulness of the personnel at all levels. We felt like colleagues right from the outset.” Meanwhile, Jan has started at an IT company in South Africa, and Bart has registered in the Applied Economic Sciences master’s program at the K.U.Leuven. After that, he hopes to get a challenging job in logistics or production planning, preferably with a large international company. The KPMG Management Award 2010 on his CV already represents an additional reference. Y.P.
Fourth Umicore Solar Team ready for take-off Innovating energy, energizing innovation Thirteen ambitious engineering students and two dedicated alumni. They form the new GROUP T Solar Team. Six years after the first team churned out Belgium’s first solar car, team manager Thomas Sterken and his team take up this great challenge again: build an even better performing car for the prestigious World Solar Challenge 2011, the unofficial world championship for solar-energy powered cars. Our sole goal is not to design and build a solar car and secure a spot in the top three in Australia”, Thomas clarifies. “The Solar Team placed this undertaking in a broader perspective right from the outset. First of all, we want to make the greater public aware of the exhaustibility of fossil fuels. Solar energy is one of the valid alternatives. We want to contribute to its further development and demonstrate to the public an accessible application. Technology is a crucial factor in this. In our country, much know-how is already available in this field, spread out over various high-tech companies and research centers. A project like ours is a great opportunity to bring this top technology together and promote it, which is our second goal. Our third objective is to stimulate entrepreneurship. Building a solar car is a complex process which requires not only technical expertise but also specific competencies in leadership and management. Our most largest target audience is no doubt young people. With our project we want to warm them up to technology, innovation and entrepreneurship so that more of them will choose technical studies and professions. As the number of jobs in green energy increases, the need for technically skilled professionals will be greater than ever.” What about the crash? After two successful entries in the World Solar Challenge, 2009 was a complete disaster. Because of a sudden fierce gust of wind the Umicar Inspire crashed into a tree at 110 km/hour and the Solar Team’s dream went up in smoke after only 400km of the race. How can this be prevented from happening again in 2011? “In the first place there is a different team mentality”, answers Thomas. “We no longer want to look at racing and performing alone but we also want to focus more on the challenge itself. This same mentality change is seen in the Formula 1 world as well. There too, they have come to the conclusion that racing in the extreme leads to risky behavior and accidents. The organizers of the World Solar Challenge, in the meantime, have also taken measures to improve safety.” One of the most significant changes in the contest regulations of the 2011 edition relates to the car’s solar panel. “The surface area is simply cut in half from 6m 2 to 3m 2 of germanium cells”, Thomas explains. “That means less power, so less speed but also it’s also significantly cheaper so that more teams can afford to participate. At the same time, it’s a new challenge to produce a high-performance solar car again in spite of these restrictions.” Mechanics, Energy and Marketing The new Solar Team is organized as a true company. Team manager Thomas heads the three departments. The first is the Mechanics department. “They take care of the structural design of the solar car”, Thomas explains. “Important elements in this are the aerodynamics, the suspension, the engine and the ergonomics. As with all sports cars, aerodynamics play an essential role. The carrying structure of the car must on the one hand be rigid to protect the pilot but on the other it needs to be sufficiently light to remain race worthy. The suspension, in turn, takes care of the connection between the chassis and the wheels.” The Energy department is responsible for the car’s entire energy management. “The solar energy that is captured by the solar cells is used to propel the electric engine”, Thomas continues. “Any energy surplus is stored in the battery pack. If there is a shortage the engine can draw from the stored energy. Furthermore, this team takes care of the racing strategy by taking into consideration factors like weather and road surface conditions, and so on, to the greatest extent possible.” Finally, there is the Marketing department. “These people take care of the non-technical aspects of the project. Logistics support, for instance, but also important tasks like public relations, finances, sponsorship and the organization of events like the Solar Olympics for schools and the Solar Tour across Belgium.” Extensive network Throughout the years, the different Solar Teams have set up a wide network. “We can count on the more than 100 partners who we work with intensively”, says Thomas. “Not only multinationals but also SMEs, research centers and universities in Belgium and abroad. They make not only material but also knowhow available. We invite our partners to GROUP T a few times throughout the course of the project. During these networking evenings they can meet each other in an informal atmosphere and exchange information. This way, we create a professional entrepreneurs’ forum. The fact that none of the partners pulled out after the crash of 2009 proves that the confidence in the Solar Project remained unscathed.” Umicore Solar Team International While the previous Solar Teams were uniquely Flemish, the team now has a Chinese student in its ranks. “Kang Zhou spontaneously applied and passed the application procedure with flying colors”, Thomas confirms. “In the Mechanics department his responsibilities include the solar car’s aerodynamics and engine, two of its crucial elements. His contribution will no doubt add to the technological resourcefulness of our team.” By mid-December 2010, the concept of the new solar car must be ready according to Thomas. Then its optimization and design will begin. Actual production will start in May 2011, and an intense testing period will follow during the summer months. In September, the entire Solar Team flies to Australia. On Sunday, 16 October 2011, the starting shot will sound in Darwin. Propelled by the silent, pure power of nature, the competition will race right down through the continent to Adelaide, an adventure of more than 3,000km. Y.P. www.solarteam.be www.worldsolarchallenge.org The new GROUP T Solar Team takes up the challenge to build a performing solar car. GROUP T - LEUVEN ENGINEERING COLLEGE jg. 20, nr. 1, 15 december 2010 5
Page 1 and 2: interview verschijnt driemaandelijk
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