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Barclays CEO Energy-Power Conference
Paal Kibsgaard
The transformation programs in R&E and shared services will ultimately benefit our
individual product lines by making them even more competitive in their respective
markets. They will also help drive financial performance in the following focus areas.
First, we aim to double our asset utilization from today’s level by reducing the need for
back-up equipment due to higher product reliability; by shortening the down-time related
to maintenance and repairs; and by driving asset sharing between business units through
the use of regional hubs and an optimized transportation network.
Second, we aim to reach a five sigma reliability level with all our product lines, which
would bring our quality performance in line with that of the automotive industry. This
improvement, which means a 90% reduction in failure frequency compared to current
levels, will come in part from the improved reliability of our new-generation products,
as well as from a step-change in the quality of our work processes and procedures.
Third, because workforce compensation represents the largest single component of our
operating cost, we will look to create a step-change in how we deploy our people and their
expertise. We will do this by extending our competency and training programs, by taking
further advantage of multiskilling and remote operations to reduce crew sizes, and by
further improving operational planning and efficiency.
These three factors, together with a shorter time-to-market for our new technology
developments, will put our individual product lines in prime position to gain further
market share, regardless of their current positions. These factors also represent a clear
roadmap for how each of our product lines can improve all aspects of their financial
performance. Further to this, our individual product lines will benefit from the additional
market access provided by our fast-growing integration arm, Integrated Project
Management or IPM.
