© COPYRIGHT 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL. Environment Compliance &...

© COPYRIGHT 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL.

Environment Compliance & Cross-Industry PLM Best Practices

Lester LiaoGeneral Manager / Greater China

Agile Software Corporation

Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 2

Agenda

Environmental Compliance Best Practices

PLM Cross-Industry Best Practices


New Global Regulatory Initiatives

WEEE Waste of Electrical and Electronic Equipment

New EC directive for Recycling, effective in August 2005

RoHS EC Directive on the Restriction of Certain Hazardous Substances

in Electrical and Electronic Equipment

Prohibits new equipment from having more than agreed levels of lead, cadmium, mercury, hexavalent chromium, polybrominated biphenyl (PBB) and polybrominated diphenyl ether (PBDE) flame retardants after July 2006

Similar initiatives in China, Taiwan, Japan & the U.S. Taiwan has revamped its recycling law to require fees on

packaging & take-back for appliances & electronics, plus new restrictions on plastics disposables, including a controversial ban on plastic bags


Are you Ready?

Surveys show heightened interest, but few with budgets

Lot of work to do: Do you know the impact on design, manufacturing,

sourcing, spare parts, …? Do you have systems in place to manage new parts,

collect parts data, ID compliant/non-compliant parts? Can you support the new component system of record:

detailed material data, effectivity dates, cross-referencing?

Can you manage Green BOMs? Do you have a risk management strategy?


1 2 3 4 5 6 7

7 Point Plan to Environmental Compliance


So, how do I become compliant?



Step 1Determine

products and components impacted

1



Step 2 Prioritize

(could be customer driven, could be product driven)

1 2



Step 3Determine

operations and processes impacted

1 2 3



Step 4Define the

“to-be” compliant state

1 2 3 4



Step 5Budget Appropriately

1 2 3 4 5



Step 6 Plan against

regulatory timeline

1 2 3 4 5 6


“ Within manufacturing and operations, we are

continuously looking for ways to improve our bottom line

AND improve the environment. Resource conservation and waste reduction make good

business sense.”

- Dick Hunter, V.P., Dell Manufacturing and Operations


Step 7Name an

executive sponsor & create a cross functional team

1 2 3 4 5 6 7


Customer Benefits: Decreases Compliance CostsDecreases Compliance Costs Reduces Business RiskReduces Business Risk Compliance with Environmental Compliance with Environmental

& Regulatory Requirements & Regulatory Requirements (WEEE, RoHS, ELV)(WEEE, RoHS, ELV)

Product Governance & Compliance

Agile Environmental Compliance enables: Collaborate with suppliers to collect

material data for supplier material declarations

Generate an environmental view of the product record to analyze for compliance with (WEEE, RoHS, ELV) reuse, recycling, and restriction targets

Manage regulatory documentation and specifications

Track recovery manifests and disposal certificates of destruction

Manage compliance of outsourced recovery partners through proactive audit and closed loop corrective action


Environmental Compliance Processes

Collect

Analyze

Treatment

Reporting/Analysis

Disposal

Certificate

Inspection

Destruction

Certificate

Take-back, Disposal, & ComplianceTrack

DisposalOperations

Material

Manifest

Exemptions

ComplianceStatus

Treatment

Recovery

AuditSubstance

Data

Design for

Environment

DFE

BOM

Act

Regulations

Ship-to restrictions

MaterialDeclarations

RFIProcess

MCO

ECO

ChangeProcess

CAR

Issue

Cost

CorrectiveAction

Process

EnergyConsumption

Recyclability

DesignProcess

Materials

Parts

ProcessingInstructions

RecyclingProcess Product

CAR

Issue

Part Compliance BOMCompliance

Product Instance Compliance


Customer #1 Case Study:Budgeting for Green

$500M annual revenue technology company Started a green project 8 months ago

Going from “brown” to “green” for all products and manufacturing processes

Cross functional team from materials management, engineering, soldering assemblers, and senior management

Estimated 18 months and 40 employees to complete the project

Involve tens of thousands of P/Ns and reengineering of many business processes

Estimated costs: 1-2% of revenue Up to $10M for an “unbudgeted and unplanned expense”


Customer #1 Case Study: Role of Agile

Two key processes: Collect and manage compliance data on parts and

components (and clean up parts list) Manage transition process for all products

Implemented Agile 9 and Agile PG&C Configured and implemented simultaneously


Agenda

Environmental Compliance Best Practices PLM Cross-Industry Best Practices


ConceptDesign

& DevelopPrototype

& PilotLaunch& Ramp

Service & Support

Phase-out& DisposalProduction

What is Product Lifecycle Management (PLM)?

PLM enables companies to maximize product profitabilitymaximize product profitability through the management, coordination and optimization

of the informationinformation, processesprocesses and decisions about decisions about productsproducts, throughout the product lifecycle & across the

extended enterprise

PORTFOLIO Resource & Product Portfolio Management

MARGIN Cost & Risk Lifecycle Management

INNOVATECustomer Need to Release

LAUNCH & PRODUCTION Commitment to Fulfillment

SERVICE Customer Shipment to Obsolescence

COMPLIANCE Regulatory & Standards Management


PLM Enables Cross-Functional Coordination Across the Product Lifecycle

PLM Enables Cross-Functional Coordination Across the Product Lifecycle

Customers, Partners & SuppliersCustomers, Partners & Suppliers

Engineering & DevelopmentEngineering & Development

Purchasing & FinancePurchasing & Finance

Operations & Supply ChainOperations & Supply Chain

Sales & MarketingSales & Marketing

Service & SupportService & Support


Industry Focus

MedicalDeviceMedicalDevice

IndustrialEquipmentIndustrialEquipment

Electronics &High Tech

Electronics &High Tech

ConsumerPackaged

Goods

ConsumerPackaged

Goods

Aerospace& DefenseAerospace& Defense

AutomotiveAutomotivePharmaceuticalsPharmaceuticals

Pharmaceutical CPG

Semiconductor Software


Pharmaceutical Business Challenges

Business Environment Lack of solid drug pipeline

Long development cycles, with huge investments and risks for new products

Cost & distraction of acquisitions

Increasing regulatory scrutiny

Business Challenges Increase flow of new products to market

Reduce time of product development

Remove high cost paper intensive processes

Improve product portfolio performance

Integrate marketing, R&D, and manufacturing


Pharmaceuticals PLM Best Practices

Reduce time, cost & regulatory compliance liability of labeling & packaging management Central enterprise repository for label, artwork & pack information Role-based change control & approvals Workflow-based processes for executing controlled change management

Increase speed and profitability of New Product Development & Introduction Stage-gate based project management Resource management and allocation Management level oversight

Compliance with FDA regulations


CPG Business Challenges

Business Environment 30-60% sales from products launched <3 years

<30% of new product launches succeed

Accelerating private label brands

Mature products/brands facing price erosion

Consumer safety & tastes driving

product proliferation

Business Challenges Data accuracy, consistency, timeliness

Fast product introductions causing product data complexities

Co-packing, outsourced design, artwork, & filling stressing CPG companies


CPG PLM Best Practices

Consistent & efficient management of the global product record Specifications, packaging, labeling,

documentation, certifications

Rapid introductions of new products & brand extensions Repeatable & predictable stage-gate NPD&I

processes

Packaging & labeling collaboration

Improved product revenue opportunities Prioritize across a portfolio of

enterprise wide products

Improved product quality & compliance Closed loop quality and corrective actions

Compliance with FDA regulations


Packaging and LabelingA Complex Information and Process Issue


Packaging and LabelingPackaging and LabelingA Complex Information and Process IssueA Complex Information and Process Issue

Packaging and LabelingPackaging and LabelingA Complex Information and Process IssueA Complex Information and Process Issue


PLM in Semiconductor

Semiconductor Foundries Semiconductor Foundries PLMPLM

Fabless Semiconductor Fabless Semiconductor PLMPLM


BOMBOM

BoardBoard

Equip.Equip.

RecipeRecipe

DataData

C of AC of A

DatasheetDatasheet

DatasheetDatasheet

C of AC of A

MSDSMSDS

TypeType

Materia lMateria l

PackagePackage

FoundryFabless ATO Board

Product

EquipEquip

DataData

ProcessProcess

SpecsSpecs

Equip.Equip.

RecipeRecipe

DataData

SpecsSpecs

TestTest

Instruc.

Equip.

Materia ls

Instruc.Instruc.

Equip.Equip.

Materia lsMateria ls

MasksMasks

RecipeRecipe

TestTest

RecipeRecipe

SupplierSupplier

EquipEquip

LineLine

ProcessProcess

Materia lMateria l

SupplierSupplier

MSDSMSDSDrawingsDrawings

Instruc.Instruc.

Materia lsMateria ls

DrawingsDrawings

BOMBOM

TypeType

Materia lMateria l

SpecsSpecs

ATOATO

BoardBoard

DataData

SuppliersSuppliers

SupplierSupplier

SupplierSupplier

RecipeRecipe

FabFab ATOATO

MasksMasks

MRDMRD

IC DesignIC Design

Materia lMateria l

SpecsSpecs

TypeType

SpecsSpecs

FabFab

ProcessProcess

FoundryFoundry

PackagePackage

TestTest

Semiconductor Product RecordSemiconductor Product Record


Product Development Process (PDP)

ProductionDevelopmentDefinition

Define product for the market and evaluate feasibility

Define the specifications for the product

Involve production and R&D team early in life cycle

Define product for the market and evaluate feasibility

Define the specifications for the product

Involve production and R&D team early in life cycle

Develop detailed designs for the product

Verify and drive DFM Evaluate prototypes

and samples for functional and characterization

Manage changes and quality

Develop detailed designs for the product

Verify and drive DFM Evaluate prototypes

and samples for functional and characterization

Manage changes and quality

Manage changes to design in early ramp

Transfer process fine-tune knowledge to production

Volume production through and increased yields

Closed loop feedback to design

Manage changes to design in early ramp

Transfer process fine-tune knowledge to production

Volume production through and increased yields

Closed loop feedback to design

Lead:Marketing

Lead: Engineering

Lead:Fab


PDP - Development

Prelim Design Mfg. Review Design Pre

Tape-Out Fabrication Character-ization Samples Reliability

Develop test structure documents

Develop test structure documents

Assure production meets targets

Assure production meets targets

Develop manufacturing plans

Develop manufacturing plans

Verify functional behavior

Characterize device

Verify functional behavior

Characterize device

Overall architectural design

Overall architectural design

Verify that parts meet specifications

Verify that parts meet specifications

Simulation models and results

Simulation models and results

Identify yields and manufacturing issues

Identify yields and manufacturing issues


Single View of the Single View of the ProductProduct and and ProgramProgram Across the Enterprise and Across the Enterprise and

Supply NetworkSupply Network

Phase 1Phase 1 Phase 2Phase 2 Phase 3Phase 3 Phase 4Phase 4

Product Portfolio Management Removing Process Inefficiencies in Semi

TaskTask

TaskTask

TaskTask

TaskTask

TaskTask

DeliverableDeliverable


Phase 1Phase 1

TaskTask

TaskTask

TaskTask

Program Status Instantaneously Updated Program Status Instantaneously Updated When Deliverable is CompleteWhen Deliverable is Complete

Deliverables Uniquely Connect Program Deliverables Uniquely Connect Program with Underlying Product Recordwith Underlying Product Record

TaskTask

TaskTask



Phase 2Phase 2 Gate

Closed

Gate

Closed

Gate

Closed

Gate

Open

TaskTask

TaskTask


TaskTask


e.g. Review masks

e.g. Approve mask

Phased, Stage-Gate Processes of the R&D to Mfg – (design to tape-out)

Gate

Open

R&D Info Management

NPI Management

Product Transfer


Semiconductor PLM Best Practices:Agile @ Qualcomm

Key drivers for Agile implementation IP protection Release cycle time reduction Self-service and process automation

Implementation scope and timeline Product Collaboration module First BU live in 2001; Company wide in

2003 5800 named users and growing 1 centralized instance accessed

globally Benefits Realized

More secure management of IP Single, secure repository for product

data Faster turnaround of higher volume with

fewer people Increased design collaboration internally

and externally

Source: Norm Fjeldheim, Qualcomm SVP & CIO, Agility Orlando 2004


Qualcomm Application Architecture

Oracle

Agile

QCT QIS QWBS QGov Corp

Billing Systems

Sales Force

Customer Care

Manufacturing

Distribution

Acct/Finance

Engineering

Arbor

N/A

N/A N/A

N/A

Custom

Agile is the foundation application at QualcommAgile has the largest user base and highest usage rates

All other applications integrate to Agile for key product data

SiebelSiebel

Peoplesoft

Source: Norm Fjeldheim, Qualcomm SVP & CIO, Agility Orlando 2004


Software Business Challenges

PeopleSoft Business Challenges Slow growth and price pressure: ERP is becoming a

commodity Integration with JD Edwards Have not started yet the outsourcing journey

PeopleSoft Strategy Reduce development cost for new release Better manage projects and market requirements

Veritas Business Challenges Overall PD inefficiencies: no common processes/systems Very competitive market (big SW & small start ups) Too many fronts: very large and complex footprint

Veritas Strategy Better manage portfolio of products: where should I

spend my development $? Improve development efficiency with common

processes and systems


Software PLM Best Practices: Customers

Release

Product

Business Req.

Functional DD

ConsolidationAnalysis on the

Requirement Content Change

Change Implementation &

release of software (SP or

new release)

Close Issue

Feedback to Customer

Issues or enhancement

requests

Close loop on the Enhancement Requests and on Issues

With Agile PLM

Technical DDIssue or Enhancement Request at the content level

Content change management

(versioning, process,..)

Feature

Test Case

Release

Req. 1Req. 2

Req. 3Detai led

market req.

Functional description

Release

Req. 1Req. 2

Req. 3Functional description

Release

Req. 1Req. 2

Req. 3

Technical specs

Release

Req. 1Req. 2

Req. 3Technical

specs

Release

Req. 1Req. 2

Req. 3

Release lifecycle iterations

Glossary:• Release =

BOM, Project, product

• Requirement: sub-assembly or Component


RC5200 Series

Define Scope

Define Resources

Define Revenue

Program Phase

Concept Phase

Development

Dev Plan

Test Plan

Implementation

Release Review

Program NavigationDescription File Name Version

I nitial MRD RC-MRD.doc 7 D5200 RC Copier D

Test Plan RC-Test.xls 3 D5250 RC Copier D

I nitial UI Spec RC-UI .doc 2 L4020 LS Copier A

Program Scope Scope.ppt 5 L4020 LS Copier A

RC 5200 SeriesJohn Bowles

Cross-program Cross-program portfolio portfolio

management & management & resource resource

utilizationutilization

Executive, team, & Executive, team, & individual visibility individual visibility

to product to product development development

program status & program status & deliverablesdeliverables

Future uses of Agile Future uses of Agile solutions include solutions include software quality software quality

management with management with CRM integration, CRM integration, software (CASE) software (CASE) integration, & integration, & requirements requirements managementmanagement

Product record Product record deliverables deliverables

managed in Agile managed in Agile seamlessly linked seamlessly linked with the program with the program

recordrecord

Software PLM Best Practices: AgileSoftware PLM Best Practices: Agile

© COPYRIGHT 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL. Environment Compliance &...

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