ABB - LVB, 2012

Low Voltage Products - LP Life Cycle Management - LCM

ABB Group April 2, 2013 | Slide 1

Index:

Definition LCM phase definition Policy Phases summary Support phases Example evolution product Benefits General rules Special performances apparatus

ABB Group April 2, 2013 | Slide 2

Definition:

Product Life Cycle Management or LCM is a term used for the process of managing the entire lifecycle of a product from its conception, through design and manufacture to service. LCM is a set of capabilities that enable an enterprise to effectively and efficiently innovate and manage its products and related services throughout the entire business lifecycle. All companies need to manage communications and information with its customers and its suppliers and the resources within the enterprise. In addition, manufacturing engineering companies must also develop, describe, manage and communicate information about their products LCM.

Reference: en.wikipedia.org/wiki/Product_Lifecycle_Management
ABB Group April 2, 2013 | Slide 3

LP LCM Phases summary:

Annual lifecycle status review approx 10 years Product is released for sale Lifecycle announcement >12 months Lifecycle announcement >6 months Lifecycle announcement 6 months

Active

Classic

Limited
Limited product support

Obsolete

Guaranteed product support

ABB has divided the manufatured products into four phases:

Active Classic Limited Obsolete = standard development, production and sale. = maintenance phase of the product: availability is guaranteed for replacing in existing plants. = spare parts are available. The production of the CB's whole range is not guaranteed and the technical support is limited. = technical support is no more guaranteed. The production of the CB's whole range has ended but spare parts might be available. Retrofit solutions are available.

ABB Group April 2, 2013 | Slide 4

Policy:
according to ABB policy in LCM

ABBs products are designed for continuous evolution. It is ABBs goal to protect our customers investment beyond the life-cycles of the platform products. ABB will not "Remove from Active Sale" any product or "family" of products until an equivalent replacement to those products is available. Exceptions to this may occur if components or technologies needed are no longer available to ABB. Once a product has been removed from active sale it is in the Classic phase. Products will continue to be supported by ABB for about 10 years from the start of the Classic phase, although exceptions to this may occur according to market request or if components or technologies needed are no longer available. At least 6 months prior to any "Manufacturing End" declaration, ABB will announce a "Granted Last Buy opportunity (except in cases where there is a direct form, fit and function replacement). It is ABBs intention to provide support for as long as there are significant customer needs after the "Manufacturing End" through field service, repair and by making replacement spares or refurbished apparatus available.

ABB Group April 2, 2013 | Slide 5

Example Evolution Products:

With LP products

Active
Emax

Active
Megamax

Classic
Megamax

Active
Novomax

Classic
Novomax

Limited
Novomax

Active

Classic

Limited Obsolete

Otomax

Otomax

Otomax

Otomax

1961
ABB Group April 2, 2013 | Slide 6

1980

1990

1996

2004..

General Rules:

Life-cycle status review will be periodically issued via TI

Service PM is responsible of phase transition communication TI (with coordination of all other involved company functions, in particular changes from Active to Classic have to be agreed between all PMs) Life-cycle phase transition may be managed on country basis (for localized or dedicated products) Database available on intranet and internet ABB sites The Classic and Limited products will have dedicated price list and delivery table

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Benefits:

Total transparency of products life cycle

Commercial offer optimized management (warranty, pricing, deliveries) Product residual life visibility (long term supply agreement, declarations)

Product management optimization:

Product transition
Availability of finished products, spare parts and retrofitting kits Production layout and material planning

Communication to the customer by Technical Information:

Transition phase Residual life Alternative solutions

Better customer care/service

ABB Group April 2, 2013 | Slide 8

Phases summary:

Active
Active development and promotion phase

Classic
Product maintenance phase No further enhancements

Limited
Primarily service support The manufacture of spare parts and accessories is guaranteed

Obsolete
Obsolete phase ABB cannot guarantee availability of product support for technical reasons or within reasonable costs. No longer manufactured as a complete product; only component spares, refurbished apparatus, retrofit and/or revamping solutions available

Product has been released for sale Actively promoted Product is actively sold Product is actively maintained with enhanced through R&D or product improvements Fully supported of after sales network

Product is no longer actively Promoted, =>12month advance new apparatus availability may notice through sales channel continue, but is not guaranteed Product will be phase out

It is still available for sale mainly for spares and no new development to replace expansions of existing systems, obsolete components supply under frame agreements, Technical support (field in case of space constrains, service, phone support, etc) required functionality not yet continues, but may diminish covered by the new product, over time with decreasing license agreements installed base Price may increase (e.g. due to lower volume, vendor component costs, etc.)

increasing use of refurbished apparatus or retrofitting kits

ABB Group April 2, 2013 | Slide 9

Customer support over the lifecycle and beyond

Active

Classic

Limited

Obsolete

Availability of service offerings is subject to local market conditions.

Lifecycle Services
Selection Installation Commissioning

Start-up

Training Training & e-Learning & e-Learning

Technical Support & remote service Parts & repair Maintenance

Operate and maintain

Retrofit
Replace & recycling

Rebuild or replace
ABB Group April 2, 2013 | Slide 10

Summary Table:
LCM - SUMMARY TABLE
Phases
Price list Deliveries Actively promoted Pre-sales Support Commercial Return Spares Maintenance&Repair Retrofitting Kit Refurbished Product Management Life Cycle Transitions Reporting

Active
STD Price List STD Table Yes Full Support Yes Guaranteed Guaranteed N.A. N.A. Product PM Service PM BU Products

Classic

Limited

Obsolete

Dedicated Price List Dedicated Price List On Request Dedicated Table on Request On Request Yes Yes On Request Not Guaranteed Not Guaranteed No No No Guaranteed Guaranteed Not Guaranteed Guaranteed Guaranteed Not Guaranteed Not Guaranteed according to feasibility according to feasibility N.A. according to feasibility according to feasibility Service PM Service PM BU Service Service PM Service PM BU Service BU Service Service PM

By Products organization By Service Organiz.

ABB Group April 2, 2013 | Slide 11

Further information on web

LINK to ABB.COM LPBS Service pages

ABB Group April 2, 2013 | Slide 12

Further information on web

Selection of coutries Life Cycle Management

Status

ABB Group April 2, 2013 | Slide 13

Further information on webfrom Active to Obsolete

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 ABB Group April 2, 2013 | Slide 15