Value chain concept for power electronics based products

Abstract

Integration of renewable energy, general decentralization of generating power and a high degree of automation may trigger a technological change in grid infrastructure, away from electromechanical products and towards more flexible power electronics based products. Maschinenfabrik Reinhausen (MR), a premium manufacturer for specialized components and equipment for the electrical distribution and transmission grid, is seeking to expand its capabilities within the power electronics domain. The goal for this thesis was to provide MR suggestions for the design of a value chain for power electronics based products for the mid-voltage distribution grid market. Such suggestions have been developed based on the analysis of external market forces with Porter's Five Forces Model, the assessment of a possible level of vertical integration based on MR's current technical capabilities, and the analysis of uncertainties of market parameters with a NPV model and Monte Carlo Simulation. The thesis shows further how the deployment of FMEA and reliability engineering can effectively address the high costs of power electronics based products and concerns of customers regarding the reliability of the technology..