Entry Details
| Organization: | Rheem Manufacturing Middle East |
| Login ID: | imran.master@rheem.com |
| Category applied for: | MANUFACTURER/SUPPLIER OF THE YEAR (WATER HEATERS) |
| Submission date: | 12-Jul-2024 |
| Submission Entry: | 1.) Given that water heating can be a heavy emitter of carbon, when done using conventional energy sources, how has the goal of 1.5 C additionally impacted your product development strategies? What specific product design elements have you incorporated to support the 1.5 C goal? (150 words) (145)Answer: Rheem is committed and leading with actions on limiting global warming to 1.5 degC and reduce dangerous effects on climate change. Sustainability is key aspect in all stages of our Product-Development-Process(PDP). Early in PDP, we gather key representatives from our R&D, Sourcing, Manufacturing, and other teams for Sustainability-Strategy-Sessions. In these sessions, our teams consider eight-factors focusing on the product’s impact on environment, and four on social impact. Our sustainability strategy wheel and PDP help us to integrate sustainability into final product(Attachments1&2). To make it clearer to our customers, the most sustainable products in our lineup will also bear Rheem’s Sustainability-Standout-Seal™ mark. In water heating, Rheem MEA has launched Solar Thermosiphons, A2W/W2W HeatPumps, and HybridHeatPumps which further emphasizes the focus of Rheem on sustainability. The A2W/W2W COPs can reach 7.01 which is 770% more efficient than conventional water heaters(Attachments3-4). 2.) Describe the bigger picture that you see as a manufacturer/supplier of water heaters. How do socio-economic and sustainable development (safety, ESG & energy efficiency) targets in Saudi Arabia impact/influence you as a manufacturer or supplier? (150 words) (146)Answer: Rheem’s three main global sustainability initiatives are: 3.) To what extent do you believe you have the scope to feel concerned about, and to contribute to, the socio-economic and sustainable development of Saudi Arabia? How frequently are you able to precisely meet the specific needs of consultants and of developers/builders (clients)? What proportion of your annual revenues is from a "business as usual" approach to deliver the equipment? What specific actions have you taken to persuade consultants and clients to look beyond business as usual? (150 words) (147)Answer: Rheem places a strong emphasis on contributing to the SDG. We have established a Product-Excellence-Panel(PEP) consisting of consultants, contractors, regulators. This collaborative approach ensures that our products align with the specific needs of market and clients. Our product development journey emphasized collating Voice-of-Customer(VOC). We engage with stakeholders, from project inception to completion, and actively incorporate their feedback. Based on the VOC, a growing demand has been observed for a sustainable water heating solution in GCC market. With COPs up to 7.01, Rheem’s A2W/W2W units will answer customers’ requirements. 4.) What is your strategy for allocating budget for R&D? (150 words) (148)Answer: Our approach to allocating R&D budget is well-defined, with following priorities: 5.) As manufacturer/supplier, what specific actions do you take in terms of handholding on installation and training on operation? (150 words) (149)Answer: In February 2024, Rheem opened its biggest Innovation-&-Learning-Center in Riyadh. In there, different ranges of Rheem’s products are shown in running conditions where service teams from different companies get hand on training on the products(Attachment 9). 6.) What transformation in performance of equipment can you speak of, in terms of safety, energy efficiency? Can your equipment offer outcomes beyond what is expected? [Note: The transformation could be in technology, business process, product development, R&D, human resources (keeping them motivated and inspired, as the basis for innovation).] (150 words) (150)Answer: Rheem’s A2W/W2W units can deliver COPs of up to 7.01 which lead to great reduction in carbon footprint and energy consumption. This high COP results in product which is almost 770% more efficient than conventional commercial electric water heaters in market. This high performance is yet to be increased further by Rheem’s investment in making inverter A2W/W2W units in future. The Smart IQ-Controller is another transformative component in Rheem’s A2W/W2W units. The IQ-Controller ensures both safety and optimum performance of the unit at any point of time with real-time monitoring of system through 7-9 different sensors. These products are manufactured in Rheem’s Australia ISO9001 certified factory(Attachment13). This factory alongside other Rheem global factories has diverted more than 40,000 metric tons of waste in the past year(Attachment14). The product is also safety tested to IEC60335-2-40/IEC60335-1 7.) What are you doing to speed up the product development cycle to comply with fast-evolving MEPS requirements? (150 words) (151)Answer: Our product roadmaps are meticulously designed to align with the rapid changes in MEPS requirements, both on a global scale and within the GCC region. We maintain active engagement with key regulatory bodies, including SASO including SABER, GSO, ESMA, AHRI, and PAI, as well as collaborating with notifying bodies such as SGS, UL, and Intertek. 8.) To what extent are you incorporating synergistic AI, IoT to bring about improvement in how your equipment are used? How much are you as an organisation adopting/utilising AI and IoT to contribute to a qualitative change in performance, such as in improving safety and/or energy efficiency? (150 words) (152)Answer: As we witness increasing adoption of smart technology, our control solutions have been central focus. We've implemented advanced features such as prognostics and diagnostics, demand response control, remote monitoring, cloud-based data monitoring and logging across a wide range of our air conditioning and water heating products. 9.) What pricing policy do you follow as a manufacturer or supplier of water heaters? What are you doing to attract customers - lowering cost of goods and aftermarket services, offering attractive warranty terms, other unique value propositions, etc.? (150 words) (153)Answer: Our existing pricing structure comprises of Material, Labor, Overhead, and Margin. To maintain competitiveness, we regularly conduct pricing checks with our competitors' rates to ensure that we offer our customers the best value for our products. 10.) What management strategies and guidelines have you established to counter payment delays and other such instances, which are affecting your cashflow as a manufacturer or supplier, and are preventing an ideal building construction eco-system (involving all stakeholders) from forming? What creative strategies are you utilising to circumvent/overcome cash flow challenges? (150 words) (154)Answer: Rheem has established a framework of guidelines, internal controls, policies, and processes to ensure the effective management of cash flow within the organization. 11.) What do you envisage the future of water heaters to be? What futuristic scenario are you working towards in product development? What are you doing that makes your equipment reliable; affordable; minimises harm to the environment (air, sea, water... during production, operation and disposal after the equipment has ended its lifecycle); makes the equipment easy to install; and makes it possible to overcome systemic faults in design, construction and installation disciplines? (250 words) (155)Answer: From the time “Edwin Ruud” creates the first gas automatic storage water heater (WH) patent in 1890 to recent times, WH has changed with focus on energy conservation and reducing carbon footprint. WH will become more energy efficient and safe in the future. Due to the high efficiency of heat pump water heaters, this technology will overtake current electric water heaters in near future. 12.) Anything else you wish to say, which you feel would bolster your case? (150 words) (156)Answer: With COPs up to 7.01, Rheem’s A2W/W2W units are aligned with Saudi Arabia’s Green Initiative, Vision 2030, and Net Zero 2060 goals. That is why Rheem was honored to be selected as supplier of 14 A2W heatpumps for the prestigious Sindalah Island project developed by NEOM. Rheem’s A2W units were also selected to be supplied to Qassim University in KSA as part of Tarshid’s retrofit project on this university which is expected to avoid +23,000 metric tons of greenhouse gas emissions annually(Attachment18). |
| Supporting documents: | |
| References: | CCAKSA24-MSYWH || imran.master@rheem.com |