Hexagon Annual Report 2019

41 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS Meeting global customers' demand MEETING GLOBAL CUSTOMERS' DEMAND RESEARCH AND DEVELOPMENT The global emphasis on g-mobility and e-mobility con- tinues to influence the direction of the Research and Development organization. Of utmost importance is the drive to high safety, reliability and product performance. Hexagon sits in a leadership position with many interna- tional regulatory, codes and standards committees to ensure that product innovation is considered in a safe manner without affecting overall systems performance impacts. The Research and Development group activities are distinctly tied to our world class manufacturing initiative. In 2019 the group, represented by 130 individuals (120), including product development engineers and project leaders was active in materials study, materials optimiza- tion and manufacturing process innovation. In conjunction with Operations, the Research and Development group is setting the foundation for process efficiency and stability without sacrificing product performance. Positive improve- ments have been realized in composite design efficiencies, permeation reduction, liquid propane storage, gas storage, hydrogen resistance and damage tolerance. Hexagon has decided to retain fundamental materials and process research within the Research and Development organization while the specific product design and devel- opment will be allocated to the respective business units from 2020 onwards. This change in organizational con- siderations is to improve development alignment with the business units resulting in improved speed to market and reaction to the “voice of the customer”. The Research and Development group will be centralized having resources employed in North America and Europe locations. The Research and Development group will be at the core of the center of excellence in fundamental materials and process research. WORLD CLASS MANUFACTURING Hexagon aims to keep its leading position in the g-mobility and e-mobility space. The company continues to develop world class manufacturing capabilities to meet the demand and increase the competitive edge in the markets. The core of world class manufacturing is manufacturing excellence. Through continuous improvements we elimi- nate waste and set new competitive standards with smart investments in our value streams. The smart investments are focusing on increased effectiveness and efficiency as Hexagon increases capacity and gets ready for mass production. Hexagon is cultivating a strong leadership commitment at all levels and involvement by all team members. This journey focuses on training, qualifying our team members and continuous improvements. To increase our competitive edge, Hexagon is investing in state-of-the-art production technology strongly supported by: • Hexagon Ragasco which is extending its digital capabilities and integrating smart technology • Hexagon Digital Wave which continue to develop leading-edge technology for cylinder health monitoring • Hexagon MasterWorks, now part of Purus, which is investing in state-of-the art technology with focus on supporting hydrogen product development projects