http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/RSS.ashxVestasInside PagesWed, 10 Feb 2010 09:16:24 +0100http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=1http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=1No 1, 2010 Triple15 We made it! A visit ISSUE: the fut to ure ey to th e end o f SPECIA L - a journ 2015.2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=2http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=22015: Local markets for a global company Over the last few years, the wind-energy markets have changed rapidly, and Vestas has had to adapt in order to reach the Triple15 targets. Vestas’ Competitor Intelligence network gives a quick update on the key markets and Vestas’ position in them. Page 6 Following wind forecast In the opinion of E.ON, one of our biggest customers, it is Vestas’ technological superiority that has secured the company the position of No. 1 in the industry in 2015. However, the exclusive focus on wind is both Vestas’ strength and its weakness. Page 12 Big business – small footprint No one produced greener wind turbines than Vestas in 2015, and by sharing its green initiatives and experience, Vestas has helped its subcontractors become more environmentally friendly. Page 18 Building blocks for the future Blades assembled on site, a wide range of new products and intense monitoring of wind power plants down to the smallest detail. Vestas’ technology has come a long way since 2010. Page 22 2 VestasInside2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=3http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=3A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. Triple15: The hard work has paid off It has been a long haul, but the result for our Triple 15 target match the effort. Today, at the beginning of 2016, we can conclude that we have reached our Triple15 targets: an EBIT margin of 15 per cent and revenues of 15 billion euro by 2015. This is a great achievement that gives us every reason to celebrate. So, this edition of Inside, is a celebration of that success. We set the targets back in 2009 as a milestone for our strategy: No. 1 in Modern Energy. Since then, we have worked hard to improve in crucial areas: Safety has been improved significantly, so that we are now closing in of our target of zero accidents. We have also increased customer satisfaction - a prerequisite for winning key markets. Our technological advances means that we deliver the industry’s best solutions to our customers - and by using systems such as Six Sigma, the quality of our products is higher than ever before, in 2015 reaching 6 Sigma. And finally, we have made significant improvements to our organization and the way we work, so that today we are a much more efficient companythan in 2010. 2009 and 2010 proved to be a challenging start towards reaching Triple15. Nevertheless, we can conclude that we have fulfilled our vision: Wind, Oil and Gas. Today, wind energy is an energy resource on a par with fossil fuels. You can read about our new vision in the next edition of VestasInside. Until then, enjoy your success in achieving these great results. Thank you everyone for your hard work. Without it, Triple15 would not have become reality – and wind power would not be an integral part of the world’s electricity supply. Very best regards Ditlev Engel President and CEO VestasInside 32010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=4http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=4Vestas inducted into Windpower’s Hall of Fame An ambitious but realistic aim. That is how the Vestas Triple15 targets were presented back in 2009. Today, six years on, the target has been reached, and for that achievement, Vestas has been inducted into Windpower’s Hall of Fame. 4 VestasInside2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=5http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=5A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. What made Triple15 possible? “I think the key words were people and commitment. Every Vestas employee had to be committed to increasing quality, safety, competitiveness and flexibility. We had to work in different ways: Each of us taking on more responsibility. To make this happen, it was important that everyone felt they were an important part of the organisation – a lot of work went into increasing our sense of belonging. Communication played a very important role in this.” Mara Snidersich Partner – Training & Recruiting Taranto, Italy “It was important that top management consistently communicated the targets to the whole company and explaining that we were moving in the right direction. Showing us that we were on the right path motivated and encouraged everyone, and it showed us that the targets were feasible and something we could achieve through doing our daily business.” Mauro Youiti Miyamoto Finance Manager Sao Paulo, Brazil “The first time I heard about the Triple15 targets, instinctively, I thought, “Wow, this is going to be tough.” Then, after looking at what Vestas has achieved before, I realized that while they were indeed challenging goals, they were also realistic for a company like Vestas. One area in particular made a difference: our service organization. Being the best in service boosted our revenues, increased EBIT, and helped retain highly valuable customers.” Alessandro Carrani Vestas Graduate Rheden, Netherlands VestasInside 52010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=6http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=62015: Local markets for a global company The USA Adam Serchuk, Director, Market Intelligence, Vestas Americas: “The growth, profitability and dynamism have made the US market essential for Vestas. However, cheap fossil fuel and a slowerthan-expected economic recovery at the beginning of this decade have made it a nerve-racking environment. Today, Vestas is the second largest player in the market with major production facilities and competitive products in the region. Furthermore, Vestas has developed strong customer relationships with Customer Excellence Teams and Customer Summits.” Offshore Thomas Lyhne, Manager, Customer & Market Intelligence, Vestas Offshore: “The focus on customer satisfaction and loyalty, entries into key growth markets, and the introduction of the V112-3.0 MW and 6 MW turbines has kept Vestas a leading wind turbine manufacturer in the offshore segment.“ Europe Thomas Hegedüs, Market Analyst, Vestas Central Europe: “With growth in Eastern Europe and the UK, Vestas has maintained its strong position in the European markets. Key account management, customer focused services, and ensuring that market conditions are taken into consideration in writing up contracts. This has proven to be very beneficial.” 6 VestasInside2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=7http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=7A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. Over the last few years, the wind energy markets have changed rapidly, and Vestas has had to adapt in order to reach the Triple15 targets. Vestas’ Competitive Intelligence network gives a quick update on the key markets and Vestas’ position in them. India Naveen Raghavan Balachandran Business Development Manager Vestas Asia Pacific: • “After a decline in 2008 and 2009, Vestas India managed to reverse the trend by capturing the demand from large International and domestic customers and government tenders. Vestas’ successful growth strategy in India was primarily a result of improved product offering in the low wind market and successful implementation of the Key Account Management program.” China Xinwei Liu, Director Strategy/Performance Management Vestas China: ”The Chinese market became the world’s biggest in 2009, and it has been among the largest markets ever since. China is also the toughest market in the world in terms of competition, price range, and market penetration because of tough restrictions for nonChinese manufacturers. However, Vestas has managed to adapt to the market. Vestas focuses on offering new standards for wind turbine performance and building profitable relationships with selected customers and provincial governments.” VestasInside 72010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=8http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=8Winning at away games Though Vestas has had to compete with strong national players, it has succeeded in achieving a healthy market share in various growth markets by complying with local demands. 8 VestasInside2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=9http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=9A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. How did you contribute to Triple15? “For me, personally, the Triple15 targets meant larger sales volumes and higher sales efficiency. It was also a matter of being fast, flexible, and adaptive enough to respond to the dynamic market conditions and requirements. We needed to outperform our competitors. For us in the sales team, it was basically a matter of reaching our own KPIs: deliver on our promises and complete more and more successful sales.” Spain has Gamesa. China has Goldwind. North America has GE. As so-called home players, they are very strong in their own regions. But even though they all dominate their home markets, Vestas has a competitive presence there as well. “We have to face the fact that the home players will always have an advantage in their own markets. They are very hard to defeat,” says Senior Vice President of Group Finance & Operations, Johnny Thomsen. “Nevertheless, Vestas has achieved a solid market share in each country. We have done that by adapting to local demands – like in the USA where we have established Customer Excellence Teams and improved construction. This has been key in accomplishing the Triple15 targets,” says Thomsen. “We are always playing in away-games, going into markets where there are some very strong home-field players. It is in these markets, under these conditions, that Vestas has earned the title of No. 1 in Modern Energy,” says Thomsen. Viktor Garbev Sales Engineer Sofia, Bulgaria “In our department, we made sure that our customers got the right technical support and that we kept providing the most effective siting solutions. We also made a point of clearly communicating to our customers how we could work more closely together to achieve the best results. Every little thing helps. Customers are in contact with Vestas every single day, so clearly communicating our values, our emphasis on quality, and our technology has also helped us achieve our goals.” Elena Takoudi Siting and Performance Engineer Vestas Mediterranean, Greece “It was important that we translated the global targets into specific goals for our department. Managers were very important in this process. Responsible for the warehouse, I did my best to get the people I coordinated with involved and committed. One of the targets in the warehouse was to reduce the response time to ensure spare parts were available on-site when they were needed – not a day early and not a day late.” Lucia Santina Gambardella Warehouse Coordinator Vestas Spare Parts & Repair, Italy VestasInside 92010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=10http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=10More blades, less waste 10 VestasInside2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=11http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=11A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. Even though Vestas Blades seldom meets its customers faceto-face, the business unit has still learned to listen to them. That is why blades are made the way customers want them – safe, environmentally friendly and of high quality. It is rare for customers to visit Vestas Blades to learn about the various phases of blade production and to shake hands with the employees. However, the Triple15 targets that were launched in 2009 signalled the start of a new approach at here: the business unit started to listen to what customers really wanted. “Triple15 encouraged us to think about our customers in everything we do. The objective was to make our blades more attractive – not just from the quality perspective, but also by making our production process safer and more environmentally friendly and thereby making Vestas even more competitive on the market,” explains Ole Borup Jakobsen, president of Vestas Blades. “Improvements of this kind do not simply happen on their own. Therefore, we set up six focus areas in 2009. Areas with which we have been working ever since and with great success,” he continues. Several of the focus areas were designed to have direct, positive significance for the customer. Today, six years later, Blades has done more than simply achieve its goals. The production of Vestas’ blades has changed dramatically, and so has the quality. “Today, we supply blades that continue to function throughout the life of the turbine without requiring service or repair. That is what our customers want; worldclass quality,” states Borup Jakobsen. No blood on the blades Customers want safety, too. Safe working conditions has always been top priotity, “More and more customers are becoming interested in our safety culture. Some ask directly whether there is ‘blood on the blades’.” Ole Borup Jakobsen, president of Vestas Blades. “Since 2009 we have been working hard to reduce the environmental impact as much as possible, and we have set specific targets for cutting the volume of waste generated through our production operations,” says Borup Jakobsen. He then provides a concrete example: “Every time we manufactured three blades in 2009, we simultaneously generated a volume of waste that corresponded to a fourth 6-ton blade. This was bad business because waste does not generate value for the customer, for us, or for the environment. Waste, which we throw away, costs money. And at the end of the day, the customer pays for it.” Vestas Blades accepted the responsibility. By the start of 2010, the division had already reduced the volume of waste generated by 25 per cent, and Vestas Blades continues to manufacture blades with less and less waste. This translates into a clear benefit for the customer: the less waste, the lower the production costs, the cheaper the turbine. but since 2009, safety has improved significantly. “More and more customers are becoming interested in our safety culture. Some ask directly whether there is ‘blood on the blades’. They want to know if there are many industrial injuries in our production department. Therefore, it is imperative that we continue to improve safety on an ongoing basis,” says Ole Borup Jakobsen. “We are heading in the right direction: In 2009, there were 12.3 industrial injuries per one million working hours. The following year, the number had been reduced to 7.5 and last year – in 2015 – we achieved a level of one injury per one million working hours. Our target for the future is zero injuries.” Green is good At the end of 2015, consideration for the environment is higher on the agenda than ever before. Being “green” is good for the customer’s image, so customers want to be sure that Vestas is conducting its business in an environmentally conscientious way. ins ins defacts defa2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=12http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=12Following wind forecast In the opinion of E.ON, one of our biggest customers, it is Vestas’ technological superiority that has secured the company the position of No. 1 in the industry in 2015. However, the exclusive focus on wind is both Vestas’ strength and its weakness. Vestas has become easier to work with. Quality has improved and the company involves its biggest customers in the development of the wind turbines of the future. Briefly put, Vestas is still “No. 1 in Modern Energy” at the time of writing in 2015. However, Vestas still has challenges to overcome. That is the assessment of E.ON, one of Vestas’ biggest customers. Here, Cord Landsmann, Chief Financial Officer at E.ON Climate & Renewables, answers ten questions that are particularly relevant in 2015. Where does E.ON see Vestas in this context? “Vestas is the market leader, slightly ahead of both GE and Siemens. Your strong focus on research and development has helped you achieve this position – which you are currently transferring to the offshore sector.” time, your service and wind forecasts have become even better.” How would you characterise Vestas as a partner in at the end of 2015? “What I expect is a relationship with Vestas that is approaching perfect, partly because Vestas’ efficient Key Account Management system functions very well indeed. You react quickly to problems and solve them with a minimum of fuss. All in all, Vestas supplies high-quality products backed by good service. This would be a powerful package.” What distinguishes the wind turbine industry today? “Wind power is the very cornerstone of sustainable energy. Solar energy is on the rise, but a couple of years behind wind energy on the market. Offshore wind energy in particular is growing rapidly. Wind energy has achieved grid parity which makes it a viable alternative to nuclear energy. Wind energy is growing most strongly in Asia and the United States – and offshore wind energy is growing fastest in Europe.” How have E.ON’s requirements on manufacturers such as Vestas changed from 2010 to 2015? “Not that much. We are still interested in long-term relationships with our suppliers, and we are still focusing on reducing costs. However, we are also increasingly keen to participate in the actual technical development of the wind turbines. The development of complete power plants is still very important to us.” In what area has Vestas improved most in the period 2010–2015? “With regards to offshore, your 6-megawatt turbine is a great success. New methods of installation, a new foundation structure design and very reliable wind turbines have made Offshore Wind the most profitable way of producing electricity. With regards to onshore, Vestas has invented new installation methods for high-elevation areas with strong winds, for example. At the same Does Vestas provide anything today that was not readily available in 2010? “You provide complete solutions in electric power and electricity supply. You are providing smart grid solutions and have also started work on solving the greatest drawback associated with wind power – i.e. the issue of storing the energy generated.” Does Vestas still have any problems that the company has yet to solve? “The quality of your service operations still varies far too much. You lack homogeneity. In some regions, customers consider the service you provide to be poor, and you sometimes react too slowly to enquiries and actual problems.” 12 VestasInside2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=13http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=13A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. Best and worst according to E.ON VestasInside has asked Cord Landsmann, Chief Financial Officer at E.ON Climate & Renewables, for his view on what Vestas does best and worst at the end of 2015. Best: - Increased focus on offshore wind energy. - Continued success in reducing the costs linked to wind energy. - Focus on research and development cements Vestas’ position as technology leader. - Vestas shifts focus to its biggest customers and builds up special relationships with them. Worst: - Exclusive focus on wind energy. What about solar? - Vestas must be able to supply total plant solutions. - Vestas must provide uniformly high quality in all regions. Which challenges will be the greatest for E.ON and Vestas in the future? “A challenge for Vestas is that solar energy is gaining ground, while you focus exclusively on wind. E.ON and other major customers are increasingly interested in solar energy. This is something that Vestas should do as well. On the wind side, the focus is moving offshore and wind farms are planned to be even further offshore, meaning that foundation structure and power transmission are becoming an even bigger challenge”. E.ON Climate & Renewables is among the biggest wind energy operators in the world, with onshore and offshore wind farms at numerous locations in Europe and the United States. VestasInside 132010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=14http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=142010-15: What we have learned about our customers Vestas has learned a lot about our customers since 2010. Senior Vice President Morten Albæk, Group Marketing & Customer Insight, lists the five most important customer measures we have accomplished over the last five years. 1) Vestas stands out in the field of customer-driven innovation and has brought to market the first products developed in close cooperation with our customers. Engineers from customers like RWE and EDF have offices at Technology R&D, and they participate in the development work. 2) Vestas shares more knowledge with our customers. For example, we have introduced Vestas eBusiness, the wind-industry’s parallel to internet banking: Our customers can see, how their turbines are performing around the clock. 3) Vestas is where the customers are. Geographically, Vestas is now organized by the needs of our customers – not by coincidence or by our own history. 4) We have become experts in our customers’ customers. Vestas is inspiring, developing, and improving the way our customers sell electricity to the consumers. 5) Regardless of whether our customers are in Buenos Aires, Boston or Beijing, we meet them as one, well-organized and consistent Vestas. Keeping key customers close In 2010, Vestas improved the ambitious Key Account Management (KAM) program, designed to professionalize and deepen our relationship with our most important customers. Today, five years later, head of the program, Senior Vice President Morten Albæk, Group Marketing & Customer Insight, explains the impact of KAM. What characterizes our key account customers today? “The industry is still consolidating, with new players in emerging markets playing a major role in fuelling the growth of the industry. These trends keep the number of key customers in the range of 25 to 40. They are big and highly professional with a focus on high reliability and output maximization. Because they have gained experience in buying wind power, they are very sophisticated negotiators.” What does KAM mean to our customers - and to Vestas? “Our customers experience that we give them full attention and offer an honest partnership. Candid communication, knowledge-sharing and mutual development of new technology makes our relationship closer than ever. For Vestas, KAM has become a barrier against market fluctuations and credit crunches, such as the world experienced in 2009. By getting closer to our customers and their pipeline, KAM enables us to improve forecasting and secure our revenue.” 14 VestasInside2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=15http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=15A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. Your input – your bonus Everyone at Vestas shares in the success of Vestas having reached its Triple15 targets – and that is exactly the type of result the Vestas bonus programme was designed to reward. “Good employees must be rewarded. When they do well, Vestas does better; and it is only right for them to share in the company’s good fortune. Our bonus scheme is an integral part of the employee package intended to attract and retain the most highly skilled staff,” explains Morten Rasmussen, manager of Compensation & Reward in People & Culture. The biggest difference between the bonus programme today and in 2010 is that results are now also measured at the department level. This means that employees can see precisely which goals they are to work towards. “Today, employees can see how they are contributing to reaching Vestas’ targets at their assignment level. They no longer have any doubts about which tasks to prioritise or what to focus on when they come to work,” says Morten Rasmussen. “Through closer ties to local results, we have helped employees understand how each and every one of us can apply our work effort to the benefit of Vestas as a whole.” “Naturally, this does not mean that everyone can simply go their own way. The bonus is calculated on the basis of the goals for the company as a whole, and then on the local results. Therefore, it is still a matter of “pulling in the same direction” and helping colleagues out when necessary.” The size of your bonus used to be the result of good annual revenues. Now, it also depends on how well your department has handled its tasks. The bonus programme in now directly connected to you. defacts ins ins defacts Bonus pay for 2015 was based on the results achieved by: 1) 2) 3) 4) Vestas as a whole Your business unit Your sales region or factory Your department. Vestas is also working towards including personal results as part of the bonus calculation programme. i VestasInside 152010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=16http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=16The talented company The talents in Vestas play an important part of securing the company’s position as market leader. Now, 70 per cent of the key positions are filled with internal candidates, giving Vestas an important advantage over competitors. The number of identified talents in Vestas has grown steadily over the past five years – from 87 in 2010 to 750 in 2015. Behind those figures is a deliberate prioritization of talent as a lever for Vestas. “The development of talents is an important part of Vestas’ strategy and it has been necessary for reaching the Triple15 targets. The talents play a key role in making Vestas a global company with a high degree of flexibility and competitiveness. We also find a lot of our high-level leaders among them. In fact, we fill 70 per cent of key positions with internal candidates today,” says Anne Krogh Nielsen, Talent Development. A holistic talent A driver for the talents in Vestas is the possibility of an exciting global career, professional and personal development and a strong network. But the participants in the talent programmes also face demanding tasks. “You must have a high personal drive and take responsibility for your own development so you grow with the demands. In addition, you must make yourself visible and be ready to throw yourself into the thick of the action when you need to,” says Anne Krogh Nielsen. “We also expect that as a talent in Vestas you have a good understanding of Vestas as a whole. This requires that you get experience in various process areas, regions and parts of the organisation. The fact that our talents do so has greatly contributed to breaking down silos.” It has also been crucial that Vestas has become more flexible and therefore better at using the skills where they are most needed, and where talent is being challenged the most –across the organisation, believes Anne Krogh Nielsen. “Leaders in Vestas are creating conditions for their employees to deliver their absolute best and encourage innovation and learning. This culture is helping to secure our strong market position.” defacts ins ins defacts Talents - Vestas operates with global and local talent pools as well as the Graduate Program. - Talents are employees who deliver top results, who learn very quickly, who handle complex issues and changes well, have a holistic thinking and is willing and able to take more responsibility. - Talents are exponents of Vestas’ leadership role model: “Getting ahead, getting along and getting things done.” 16 VestasInside i2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=17http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=17A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. The candidate Ramasubramaniam Suraj looks back to the time he joined the Vestas’ Graduate Program in 2009: “I chose Vestas because it was a market leader in a dynamic industry with a huge potential. The Graduate Program was the best I had ever seen. The possibility of being exposed to different departments all over the world and for learning and growing alongside talented people was unique. At the same time, people I knew within Vestas warmly recommended it. One thing that has really made an impression on me is how we managed to become “one Vestas” while respecting big, cultural differences between countries like Denmark and India. Since I joined in 2009, Vestas has – like the rest of the world – changed a lot. Today, at the beginning of 2016, we have made wind equally important as oil and gas; we are the leading wind-energy company, and we aim to become the world’s leading energy-company. Personally, I have been given the responsibility for helping us on this journey, which is a very exciting challenge.” Ramasubramaniam Suraj Born 1984 in Chennai, India MBA from National University of Singapore in 2009 Joined Vestas’ Graduate Program in March 2009 Getting the balance right Almost two thirds Danes - and only 9 per cent women. That was the distribution among the 250 top leaders in Vestas back in 2009. Today, this picture has changed considerably, and it reflects Vestas’ status as a true global and diverse company. More different nationalities and more women are now in top management positions. “We have succeeded in ensuring that everyone with the right competencies, talent and ambition has the opportunities to pursue a successful career in Vestas,” says Melanie Zabel, P&C Partner, from Leadership and Competence Development, People & Culture. This development, she explains, is due to the many employees who have shown their ability to take on new responsibilities on a higher level or in another of Vestas’ three career paths. But just as importantly it is possible because of open-minded colleagues and managers who have recognized the value of diversity as beneficial for their own work and for Vestas. “Diversity helps to meet Vestas’ talent and recruitment needs on a global scale. Today, we have considerably broadened our pool of potential talents from which to recruit – simply by being an attractive and inclusive employer for everyone.” “Diversity also fosters development and innovation, and that is crucial for Vestas to stay competitive. It is very encouraging to see a more even balance, and that everyone in Vestas appreciates and supports our Diversity and Inclusion strategy,” explains Zabel. VestasInside 172010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=18http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=18Big business – small No one produced greener wind turbines than Vestas in 2015, and by sharing its green initiatives and experience, Vestas has also helped its suppliers become more environmentally friendly. Vestas is no longer just a wind turbine manufacturer. Today, Vestas produces the greenest wind turbines in the world. This is the result of many years of green initiatives intended to reduce CO2 emissions at Vestas. Reusable wind turbine parts, electric company cars, and green buildings have all been on the agenda with great success. “In recent years, Vestas has done all possible things to make wind turbine production as green as reasonably possible. Now, we are helping our subcontractors and partners do the same,” states Reporting Manager of Sustainability Klaus Rønde. From 2009 to 2015, Vestas has cut CO2 emission in half in turbine production. This means that a wind turbine emits 3 grams of CO2 per kWh produced throughout its lifetime. Most of the reduction was the result of subcontractors assisted by Vestas to diminish their CO2 emissions. “We have a lot of experience in making production green,” Rønde says. “So, we went on to our subcontractors to help them become as green and environmentally friendly as we are. The result is a wind turbine that, in its total lifetime, emits only half the CO2 today compared to 2009.” Becoming as green as it gets 2010: The first Vestas buildings are awarded Platinum in the LEED rating system - the best possible in the system for green building. By the end of 2010, 90 per cent of electricity used in Vestas is renewable electricity, which means that 50 per cent of all energy used in Vestas is renewable. 18 VestasInside Projects on reusing wind turbine parts and waste recycling have been completed. 90 per cent of wind turbine parts are now reusable. Waste is being recycled or sold, which makes it an income rather than an expense. 2011:2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=19http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=19A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. footprint 2012: Only electric cars are used for servicing wind turbine sites. Technicians can plug in their company cars while working, and recharge them with 100 per cent green energy. To create more recognition about the benefits of wind energy, information is focused externally (e.g. E-learning for schools). Cooperation with Non-Governmental Organisations (NGOs) is initiated to create global awareness about wind energy. 2013: VestasInside 192010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=20http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=20Spreading the word By spreading knowledge on wind energy, Vestas is making people all over the world aware that wind energy is a viable power solution. “During a V90-3.0 MW wind turbine’s lifetime, it saves the environment from 200,000 tonnes of emitted CO2 compared to the same amount of energy produced using fossil fuels,” explains HSE Director Dorte Mundt Andersen. ”As such, the best thing Vestas can do for the environment is to erect a wind turbine.” In order to ensure this ultimate favour to the environment, Vestas has begun spreading the word and sharing the benefits of wind energy with the world. This includes publicly available e-learning. “The basic thought is to educate people of the world on wind energy and make them see the benefits and the potential. Our ambition is that by 2020 one billion people are educated in wind energy. They will know the benefits, the facts and the environmental consequences of wind energy,” Mundt Andersen explains. “We have reduced our own CO2 emissions through a number of initiatives, but what makes the biggest difference for the environment is our wind turbines. Thisway, our knowledge of wind energy saves the environment from millions of tonnes of CO2,” Mundt Andersen explains. “But in order to do that, we need to spread the word. Vestas is offering its knowledge on wind energy to create a demand for it. Hopefully, this will lead to the erection of many more wind turbines, protecting the environment from millions of tonnes of CO2,” Mundt Andersen states. Technology is being transferred to subcontractors to help build up capacities in other countries in order to recycle and reuse waste all over the world. 2015: - Electric cars are now leased to employees by Vestas. - Employees can buy green energy through the bonuspackage and invest in wind turbines through the employee association. - 100 per cent of all electricity used in Vestas is renewable electricity. The energy use in all Vestas buildings is diminished by 90 per cent compared to 2009. 2014: 20 VestasInside2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=21http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=21A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. Down to the bare bones of quality The calculation is simple: fewer errors means less waste, improved finances and more satisfied customers. Six Sigma has proved its worth in 2015. From complex measurement system to a culture looking to eliminate any defect – the use of Six Sigma has evolved significantly at Vestas through the period 2010–2015, as Nina Schwartz, Director of Process Excellence, explains. According to her, the success of the Sigma process is primarily attributable to the fact that Vestas employees have embraced the tool and that the Vestas Government is now following progress on a weekly basis. “We have noted the same development in many departments where Six Sigma has been introduced. It has provided our colleagues with a tool for measuring, registering and receiving feedback on the production they participate in – all the way down to the position of the individual employees in the production department,” she explains. After several years of using Six Sigma as part of everyday operations at Vestas, quality is now much more uniform and at a much higher level than it was back in 2010. “Back then, we could see how difficult it was to control the business when errors occurred during the process, but we could not see the big picture regarding where the errors were and how they actually occurred,” relates Schwartz. “We have now achieved 100 per cent involvement in the context of quality, because every day, everyone can register, measure and receive feedback on precisely the special measurement points that exist in the work they are performing. This has also provided improved insight into how each individual employee can contribute to the next step of the production process and to the finished turbine,” Schwartz concludes. defacts ins ins defacts Six Sigma Six Sigma is a system intended to improve quality. It is based on the collection and processing of data, laying the foundations for reducing variation – and thus the number of errors in the finished product – as far as possible. In 2015, Vestas achieved Sigma level 6. This means that there must not be more than 3.4 errors per million units. In 2008, Vestas’ Sigma level was 4. i VestasInside 212010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=22http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=22Piece by piece Blades assembled on site, a wide range of new products and intense monitoring of wind power plants down to the smallest detail. Vestas’ technology has come a long way since 2010. 22 VestasInside2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=23http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=23A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. Larger turbines are not necessarily better turbines – but more control and flexibility is the way to success. That has been, according to Senior Vice President Jan Kristiansen, Global Research in Technology R&D, the recipe for Vestas’ technological leadership as 2015 has come to an end. One of the most noticeable technological changes is that Vestas’ wind turbines are today largely composed of modules that can be combined into an individual turbine. For example a turbine blade is today put together on site, using a sev- For the same reason, Vestas invested heavily in developing systems for controlling and monitoring the turbines in 2010-2015. This was an important prerequisite for increased production from wind power plant. “Today, we monitor our turbines much closer than in 2010. Right down to each gust, our intelligent systems adapt turbine settings to produce optimally in all conditions,” says Jan Kristiansen. Improved control also means that the turbines can now be installed in more extreme conditions than in 2009, without being overloaded. At the same time, Vestas always has the overview of the turbine’s “health” so that service visits and replacement of worn components can be planned well in advance. “Actually we don’t have any unscheduled service visits to our turbines, which of course is a great advantage for our service organization.” Common of the many technology improvements is that they arise out of customer demands. And for customers improved forecasting and monitoring is essential. “Improved control was needed for wind power to be recognized on an equal footing with other energy sources. Customers want the same degree of control over their wind power plant as they have in their coal-fired plants. And they want to know how much power they will be able produce tomorrow. They didn’t in 2010 – but they do today,” says Jan Kristiansen. defacts ins ins defacts One for all Vestas has in recent years invested heavily in research and development. In 2010 alone, the number of employees in Vestas Technology R&D increased by 600. This has meant that Vestas has been able to send many new products on the market. “Today there are no segments in the market where we do not have a very competitive turbine,” says Jan Kristiansen. Since 2009 Vestas has launched a total of eight new products, which ensure Vestas’ technological position both offshore and onshore. “Customers want the same degree of control over their wind power plant as they have over their coal-fired plants. And they want to know how much power they will be able produce tomorrow.” eral parts: the leading edge, back edge and the blade tip, each with profiles and features to suit conditions at the site. “This gives us many more building blocks and great flexibility which allows us to optimize the whole wind power plant, so that each turbine not only fits the site - it fits exactly to the individual position on site.” The modular turbine was an innovative idea - but thinking out of the box was necessary back in 2010. “We saw that we had to think in new ways. Had we just continued to build larger turbines with the same technology, we would not be able to reduce the Cost of Energy. For example, it could have cost 30 per cent extra to make a blade 10 per cent longer,” explains Jan Kristiansen. Recipe for success Jan Kristiansen’s four main reasons why Vestas is leading the industry: - Improved monitoring and data collection from the turbines - Better control - which increases production and the customers’ Business Case Certainty. - More flexible, modular products that enable localization and better production. - Competitive turbines in all segments of the market - eight new products launched between 2009 to 2013. i VestasInside 232010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=24http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=24Under the radar Looking back at a great idea: When Vestas sold its first stealth turbine back in 2011, it opened a whole new market for turbines in areas where radars had previously made installation impossible. That was the task facing Steve Appleton and his colleagues in Vestas Technology R&D on the Isle of Wight back in 2007. Today, their stealth turbine has proven to be a great success. The reason for looking into stealth technology was that it could give Vestas a competitive edge, as systems for air defence and air traffic control can mistake the rotating blades on a normal turbine for an aircraft, or become dazzled by signals reflected from the tall structure. However, many of the areas most suitable for wind turbine installation – including coastal areas – are monitored by radar. In the UK alone, a massive 6 GW of projects were held back for this reason, according to the British Wind Energy Association (BWEA). Steve Appleton and his team developed a radar-absorbing coating that could be applied to the tower. For blades, the team developed a special layer which was built into the composite skins, turning them into radar absorbers. These blades, incorporating the new materials, look and perform exactly like conventional blades. The same method was used for nacelle covers. “Now we can build closer to radar installations without causing problems.” The first prototype blade was tested in October 2009 on a V90-1.8 MW turbine in Norfolk, England. The stealth blade reflected significantly less radar energy, and after full-scale trials in 2010, Vestas sold its first “stealth” turbines in 2011. Another important step for Vestas towards offering the customer the best solution – wherever the site. “This technology has not made turbines invisible to radar – but for some projects it means the difference between go and no go,” says Anita Nordentoft from Product Management, Technology R&D in Århus, Denmark. Stealth in short Radar works by sending out pulses of microwave energy and listening for their reflections from a surface. The direction, timing, and Doppler frequency reveal the position and speed of the target. Materials containing special absorbing particles, for example carbon, soak up microwave energy, reducing radar reflections. Vestas and its partner in developing this technology, QinetiQ, developed radar-absorbing solutions which could be added easily to the tower and other non-composite areas on existing turbine designs. These radar-absorbent coatings are not feasible for lightweight, flexible turbine blades. For this, the team turned to using layers of special materials built into the blades. Radar-absorbing blades, incorporating the new materials, look and perform exactly like conventional blades. 24 VestasInside i How do we ensure that a wind turbine more than 100 metres tall with blades moving at nearly 300 km an hour does not interfere with nearby radars? “A structure that big is never going to be invisible to radar, but we have developed ways to cut the amount of radar energy reflected from turbines significantly,” explains Steve Appleton. Today, our stealth technology is proving to be a success. defacts ins ins defacts2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=25http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=25A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. Win a weekend getaway The future is here – and so is this issue’s quiz question. If you know the answer, you could win a weekend getaway for two. To enter the drawing, simply answer this question: Vestas Quiz By reaching the Triple15 targets, Vestas’ vision is no longer just an idea for the future, it is the reality of today. What was Vestas’ vision before 2016? A) Wind, Solar and Biomass B) Wind, Oil and Gas C) Triple15 Send us your reply at vestasinside@vestas.com no later than April 1, 2010. To find out if you are the prize winner, check out the next issue of VestasInside. VestasInside 252010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=26http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=26Willpower’s victory Vestas is still No. 1 in Modern Energy at the beginning of 2016 because of its employees, Chairman of the Board Bent Erik Carlsen believes. “Vestas’ employees do what they set out to do,” explains Vestas’ Chairman, Bent Erik Carlsen when asked how Vestas has reached its goal for 2015 - and is still No. 1 in Modern Energy. He joined Vestas’ Board of Directors in 1996, and says the strong qualities that characterized the company then are the same today. “When we look at Vestas today, we see a company that has grown a lot, but it is still very dynamic. There’s great determination to succeed. Even when things look almost impossible, the employees pull it off every time,” says Bent Erik Carlsen. “I think this comes from everyone seeing the big picture – that Vestas is making a difference in the world. That is a great quality to have.” A quality which, combined with the right policy decisions, has meant that Vestas has successfully reached its Triple15 targets. That success has required tremendous teamwork. “It has been crucial to be open and honest in our working relationships, especially in the cooperation between sales, production, and product development. We have joined forces and discussed how to solve the problems we’ve encountered,” says Bent Erik Carlsen. “If we had focused on making ourselves, as individuals or departments, look good at the expense of others; if we had blamed another department or part of Vestas, instead of taking responsibility, we would not have achieved our goals.” When Vestas set the Triple15 targets in 2009, competition was tougher than ever – a development that has continued ever since. Nonetheless, Vestas has been able to maintain its leading position. “Being a large corporation with many different products, like some of our competitors, is not necessarily an advantage. Vestas has a long history in the wind industry, and our attitude has been to constantly focus on what and how we can improve our business. That makes the biggest difference. It’s not about being the largest corporation; it’s about being the fastest one.” defacts ins ins defacts Bent Erik Carlsen Chairman of Vestas’ Board of Directors since 1996. Director of B. Carlsen Shipping ApS and former Group Executive Vice President of A.P. Møller-Maersk. The Board of Directors for Vestas Wind Systems A/S has 12 members, four of which are Vestas’ employees. 26 VestasInside i2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=27http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=27A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. Moving from service to plant operations Unforeseen service is no longer an option. Through increased monitoring, diagnostics and pre-planning, the work day for a service technician has become predictable. Only five years ago, the workday of the average service technician was full of unplanned services and identifying problems and errors. An increase in intelligent monitoring of wind turbines and an extensive focus on pre-planning methods make operating power plants a whole lot different than it once was. “Five years ago, we struggled quite a bit with unforeseen turbine stops. That means identifying problems on-site, lacking the right tools and parts, and having to perform service when the turbine should have been producing power,” says Director in Technology Operations, Johnny Nymann Stephansen. All these problems have now been solved. New monitoring tools combined with a full implementation of SAP have made it possible to schedule the service in advance. For example, weather forecasting now makes certain that service will take place when it is not windy. “Now, the service technician has all visits planned in advance, and he can make sure to bring the right parts and tools,” says Nymann Stephansen. Pre-planning roots out unscheduled service. “We are aiming for the fault-free machine. Turbine downtime only happens when planned work is taking place. Today we only run service checks once a year. That is simply all we need,” says Senior Vice President of Quality Excellence, Robert Fritz. An ever growing area As Vestas installs power plants all over the world, more and more service is needed, and the revenue generated from service in 2015 is substantially larger than in 2010. This development is reflected in two new service offers designed specifically for utilities and investors. “Our four different service offers back in 2010 was too rigid and constricted. Our customers needed flexibility and the option to choose. Hence, we constructed additional offers in close cooperation with our customers,” says Nymann Stephansen. “It is ever important for customers to renew their service contracts with Vestas. These initiatives make contract renewal more appealing for our customers,” states Nymann Stephansen. Power plant operations have come a long way and will continue to grow. “It says a lot that we are no longer talking about service of turbines but operation of power plants,” says Nymann Stephansen. defacts ins ins defacts From wind turbines to power plants What used to be called “Service” of turbines is today known as “Operation” of power plants as Vestas has shifted from only servicing wind turbines to operating entire wind power plants. The service offers vary from total to minimal control of operations based on customer need. i VestasInside 272010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=28http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=28An analyst’s Vestas at the beginning of 2016 is one of the top three players of the industry, producing the Audis of wind turbines. Three analysts share their thoughts and give a general view on Vestas. High share price protects Vestas from conglomerates Stig Frederiksen ABG Sundal Collier, Denmark It is safe to say that if the stock price had dropped too low, Vestas could have been bought by a multinational conglomerate who wanted to get into the wind turbine market. But because of the constant lead Vestas has in the area of technology and the expectations for the future, its share price remained high. That, combined with a global service organisation and high wind turbine efficiency, has made Vestas one of the top three wind turbine manufacturers in the world. And thanks to new wind turbine models and general market growth, especially in the EU, Vestas is among the leaders in the offshore market. Competition has increased over the years, but Vestas has had a steady market share since 2009, and their experience has turned out to be a valuable asset. The Audi of wind turbines Rupesh Madlani Barclays Capital, UK Vestas is a key global player and despite increased competition they remain in the top three. Now the question is how to compete with the low-cost Chinese manufacturers. Vestas cannot compete in terms of price, so they need to be excellent in technology and wind turbine efficiency – you could say that Vestas needs to be the Audi or Porsche of wind turbines. Vestas’ market share has gone down because of low-cost competitors. In the long-term, market share will increase again because some low-cost competition will be forced to close down as the industry matures and becomes harder to compete in. The focus for Vestas has been clear. It is about the customers, profitability, and investments in R&D to keep ahead of competitors. But most importantly, customers know that they are getting a great product. The results have been that Vestas have met the Triple15 targets and have a share price around 1,500 DDK. 28 VestasInside2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=29http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=29A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. view Constantly improving Michael McNamara Jefferies International, UK Today, Vestas is the largest independent wind turbine manufacturer. But the Chinese manufacturers offer a much lower price and their quality is improving. Therefore, Vestas needs to continue to improve and be innovative. Otherwise they would have fallen behind years ago. By now, if Vestas had nothing but the V90-3.0 MW on the market, the company would be a highly priced and mediocre wind turbine manufacturer, which would have resulted in much higher pressure from the Chinese competitors. Without constant development the share price will fall. And with a low share price, Vestas would face the threat of being bought by an international conglomerate. In that sense, Vestas is very interesting to those wanting a quick way into the wind turbine market. From COP15 to Triple15 Today, in early 2016, things look encouraging for wind energy. And it actually has a lot to do with the outcome of the COP15 in Copenhagen six years ago, explains Michael Zarin, Director for Group Government Relations. “COP15 turned out to be a wake-up call for world leaders who finally got the message that climate change was both a real threat and an opportunity. That the EU raised its own emissions reduction commitment from 20 to 30 percent – with no preconditions – really got the ball rolling. The legally binding agreement that emerged from COP16 in Mexico in late 2010 rapidly accelerated the transition to a truly low-carbon economy. The new financing that the Mexico agreement brought kick-started the renewable energy revolution we’re now seeing in many developing countries. These were all issues Government Relations was pushing strongly for, which have helped Vestas reach our Triple15 goals,” Zarin says. Another milestone was reached three years later: From 2013, it was no longer allowed to emit CO2 without paying for it within the EU. From that point onward, at least in the core 15 EU countries, companies have had to pay for the right to pollute. Finally, there was a price on carbon that was high and stable enough to change people’s behaviour and investment decisions. From a cost of energy perspective relative to its competitors, wind is now a decidedly profitable investment. That’s good for the environment and good for Vestas. Since then, things have gone from good to better. Today, as we write 2016, Michael Zarin sees a future for wind energy that is perhaps brighter than ever. “This year, the EU is completing the first phase of installing the offshore supergrid in the North Sea. This is something Government Relations has been lobbying for aggressively. The supergrid is vital for exploiting the enormous potential for offshore wind power in the northern region,” Zarin explains. Looking beyond 2016 only makes him more upbeat: “We’re finally seeing the b eginnings of a globally integrated carbon market, which will eventually lead to a global price on carbon. And because the emissions reduction targets are so ambitious, it will only become more and more expensive to pollute. This is precisely the kind of business case certainty that investors have long been demanding, and Vestas has just as long been advocating. Looking forward, I expect the EU will continue leading the way – this time by raising its own emissions reduction targets from 30 per cent to 50 per cent. The U.S., Asia, and emerging market economies will increasingly follow that lead,” Zarin foresees. VestasInside 292010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=30http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=30Into the big league Clearer responsibilities, closer ties across the organisation and shared processes - three outcomes of the alignment process, all necessary to relieve the growing pains Vestas was experiencing back in 2010, believes Andrew Mack. “Vestas wanted to achieve in a very few years what it took the car industry 30 years to do. For that to happen we needed to change the way we were doing things.” When Andrew Mack, senior vice president of Supply Chain Management for Vestas Nacelles looks back at the company he joined in 2009 – after two decades in the automotive industry – he sees a company which has had to transition considerably to reach the Triple15 targets. The demand he was facing was to improve quality and response times while driving down the overall cost of the components Vestas Nacelles buys from its suppliers. Without functional target alignment, that would not have been possible, he believes. “We might all have been busy, working 12 hours a day doing what we thought was important – but in the cases where we were working in different directions, without a common vision of where we needed to go, we would not have succeeded,” he says. The alignment process, which started in 2009 and has continued for several years, brought uniform structures, shared processes improved cooperation and integration to the global organisation. “Back in 2009, we were far from being aligned in what we did. That meant often duplicating or triplicating work that could have been shared instead. We still saw that chimney mentality or silo thinking, where people would pass the problems or the blame on to another department.” The methods Vestas has introduced since 2009 have long been the backbone of more mature industries like car manufacturing, where Andrew Mack has worked most of his career. “When you want to grow from being a company with a turnover of 7 billion euro to a 15 billion euro company and you do it as quickly as Vestas did, you need to accept that you cannot have total autonomy. There needs to be a common way of doing things and you need to know exactly who is responsible for and who has the authority for getting a specific job done.” “But that doesn’t mean everything is decided centrally. Now we bring the right people together– from technology, purchasing, production and sales, for instance , who work towards finding common solutions for all of Vestas.” 30 VestasInside2010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=31http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=31A look into the future This issue of VestasInside is dedicated to the success of Triple15. All articles have been written to reflect how Vestas could look at the end of 2015, after Vestas has reached its Triple15 targets. my vestas Goodbye paper An anonymous colleague has sent in this photo from a momentous occasion at the offices in Randers, sending off paper planes made from the last pieces of paper in the office - officially making this location the first in Vestas to be completely paperfree from 2016. VestasInside 312010-02-10T09:16:24+01:00http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=32http://nozebra.ipapercms.dk/Vestas/VestasInside/UK/012010/?Page=32Vestas Wind Systems A/S, Alsvej 21, 8940 Randers SV Editors: Peter Wenzel Kruse (editor-in-chief), Peter Gisselmann Rasmussen. VestasInside is an international magazine for Vestas staff, and is published in English, Danish, German, Italian, Spanish and Chinese. This edition closed: 31 January 2016. Print run: 20,000 Text: Anders Birch Breuning, Søren Midtgaard, Jens Velling and Peter Gisselmann Rasmussen. Copy editing: Annette Pergin, Nicole Cai, Silvia Hernando Carrera, Velia Senatore and Inke Petersen. VestasInside is published by Vestas Wind Systems A/S, Alsvej 21, 8940 Randers SV., Denmark Tel. + 45 9730 0000 – Fax: +45 9730 0001 www.vestas.com UK2010-02-10T09:16:24+01:00