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Advancements in Design Chain Management “ Product Lifecycle Management Outside The 4 Walls”...
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Advancements in Design Chain Management“Product Lifecycle Management Outside The 4 Walls”Presenter’s NamePresenter’s Title
Table of Contents
• Manufacturing Industry Dynamics• Regulatory / compliance pressures• Product lifecycle execution• Global supply chain complexity and velocity• New customer expectations
• Enterprise Product Lifecycle Management• Within and Outside the Four Walls
• Oracle Agile PLM• Agile Value Proposition
• Customer Success• Global market leaders
Company Goals• Improve market share & revenue• Improve operating margins• Operational Excellence• Flawless and rapid NPDI
Manufacturing Industry Dynamics
• Emergence of Distribution Channel, Design in, Design Win
• Choices and option – configured products
• Emergence of a service model to drive revenues (e.g. utility based)
Customer Behavior Dynamics
• Diminishing margins on commodity products• Shorter product life cycles• Lower cost competitors overseas• Theft of intellectual property / Gray markets• Pressure to innovate rapidly
Product Life-Cycle Execution Excellence
• Green Initiatives!• RoHS (Restriction of Hazardous
Substances)• WEEE• Japan• Asia (China/India, etc)
• SOx compliance
Regulatory/Compliance
• High degree of outsourcing globally, Product Innovation (ODMs) now in transition
• Logistics now plays center-stage• Value chain demands support for rapidly changing product mix (increasing
impact of consumer electronics)• Rapidly fluctuating demand necessitates information transparency
Complexity and Velocity of Value Chain
Volume Higher >>>
Complex / Hi End
Build to Order
Mid RangeBuild to Order
Low EndBuild to Stock
In-House
EMS/CDM
ODM
Taiwanese ODM
International EMS
China DomesticODM & EMS
Traditional Focus
Emerging ApplicationsCon
figur
atio
n C
ompl
exity
H
ighe
r >>>
Mother BoardDesktop PC
Notebook PCPC Peripherals
Cellular Handset
LCD TVSet-Top-BoxWorkstationNetworking
Cellular HandsetWorkstation
Server, StorageNetworkingIndustrial
MedicalAutomotive
Carrier Class TelcoHighEnd Consumer
White GoodsCRT TV
DVD Player
Cellular HandsetLCD TV
Digital TVSet-Top-BoxAutomotive
Manufacturing Strategies have Changed Dramatically. . .
Current Trend
Source: iSuppli
High Tech Industry Example
Global Environmental RegulationsNeed for sustainable, global, environmental compliance programs
California: Prop 65 restrictions on materials (e.g., lead cables) SB20 and SB50 set recycling limits in 2005SB423 harmonizes with RoHS January 1, 2007
EU: RoHS and WEEE legislation requires action in 2005
China MII: WEEE in 2006, RoHS being finalized for 2006/2007
Korea: Industry agreements to limit certain materials and for products to be recyclable
Japan: Recycle target active for household electronics and chemical label plans in draft; “Mitsubishi Green 150 initiative active”USA—Federal-
Restricted Substances Overview
Brazil: Existing recycling targets for electronic products and batteries
EU: EuP Program Aug 2007—action required 2006
EU: REACH Program 2008+ votes in Nov 2005
Joint Industry Guide A,B, C:International Material Reporting Requirement
COP-1 of the Stockholm POP’s Convention
Colombia—Draft National Hazardous Waste Policy
Basel Convention: Emerging Nations
USA—Federal- Restricted Substances for Hg
Mexico’s Final List of Substances for Toxic Release Inventory and Final Rules on Wood Packaging
Chile’s proposal for a National Pollutant Tracking System
USA—Federal- Energy Efficiency (external power supplies)
6
• 40% of manufacturers claim half of their new products fail, with missing market demand listed as the top reason.
• 31% of executives surveyed feel the New Product Development and Launch (NPDL) process is not in control.
•A Booz Allen Hamilton study found NO correlation between R&D spending and increased revenue.
The Innovation Agenda
Bottom Line
Manufacturers must streamline the innovation engine with a greater collaboration and knowledge-sharing environment. They must ensure great research converts to competitive products by responding quickly to evolving market needs and do more than increase R&D spending. Processes must be aligned to make the greatest use of these investments. Source: AMR Research 2006
7
Design for Supply Chain Opportunities
Companies can achieve significant benefits from working closely with key partners (i.e. customers and suppliers) engaging them in early-stage concept development for next-generation products, component exchange and reuse as well as to manage down inventories for product phase-out processes.
A recent study on Dfx revealed impressive results on supply chain and product development metrics:
• Reduction in material supplies on hand from 17.1 days to 9 days
• Reduction in lead times from 10.5 days to 6 days
• Reduction in product development cycle time from 50 weeks to 38 weeks
• Reduction in excess and obsolete inventory by 50%
Source: AMR
Research 2005
Design for Supply Chain Effectiveness … can only come from an integrated system
Product DevelopmentCause:Cause: Low visibility of new Low visibility of new product info across teamsproduct info across teams
Effect:Effect: Delays in time-to-market Delays in time-to-market and time-to-volumeand time-to-volume
SalesCause: Missed target price and Cause: Missed target price and target markettarget marketEffect:Effect: Reduced revenue and Reduced revenue and marginsmargins
Corporate Governance
Cause:Cause: Lack of hazardous Lack of hazardous substance visibilitysubstance visibility
Effect:Effect: Costly adherence to Costly adherence to regulatory standards (RoHS)regulatory standards (RoHS)
MarketingCause: Inaccurate product information to channelsEffect: Weak market penetration and product launch delays
Operations / ManufacturingCause:Cause: Inability to share master Inability to share master product informationproduct information
Effect:Effect: Redundant sourcing and Redundant sourcing and manufacturing processes, lower manufacturing processes, lower quality, and increased wastequality, and increased waste
ServiceCause: Product not designed for Cause: Product not designed for ease of service.ease of service.Effect: Effect: Service inefficiencies and Service inefficiencies and customer dissatisfactioncustomer dissatisfaction
Component & Product Compliance GradingConfirm Compliance During Design / Re-Design
• Check for compliance against region-specific regulations and at different levels of BOM
• Identify components containing hazardous materials
• Manage multiple BOMs for compliance scenarios based on localizations and sourcing options
• Perform what-if analyses to evaluate re-design options
Engineering BOM*Engineering BOM*
European UnionEuropean Union
ChinaChina
USUS
RegulationsRegulations& Exemptions& Exemptions
Calculate % hazardousmaterial content**
Manage BOM and related information for compliance
**Calculation and compliance check can be performed on any BOM (e.g., engineering, manufacturing)Calculation and compliance check can be performed on any BOM (e.g., engineering, manufacturing)**Delivered via partner offering (Synapsis EMARS)**Delivered via partner offering (Synapsis EMARS)
Check against regulations while accounting for exemptions**
ProductInformationRepository
Table of Contents
• Manufacturing Industry Dynamics• Regulatory / compliance pressures• Product lifecycle execution• Global supply chain complexity and velocity• New customer expectations
• Enterprise Product Lifecycle Management• Within and Outside the Four Walls
• Oracle Agile PLM• Agile Value Proposition
• Customer Success• Global market leaders
Innovate “Right to Market”
Accelerate to Market
Reduce cost & supply risk
Ensure Quality& Compliance
Ramp to Volume
Extend Products
Across Global Product Networks
New Product Introduction Volume Production End of Life
Time
Cas
h Fl
ow
Misaligned Ideation & Development • Responding to Market Trends• Bad Projects Difficult to Kill• Products Not Right for Market
Missed Launch Dates• Contract mfg. inefficiencies• Disjointed NPD&I processes• Complex change processes
Process Inefficiency • Inaccuracy = Delays, Scrap, Rework, Recalls• Poor Internal / External Communication• Disjointed Change Management
Regulatory Compliance • Crisis Management• Changing Reg. Controls – RoHS, WEEE• Increased Liability
Inability to extend products & brands• New customer preference• New trends fitness• New products & claims
Escalating Product Costs • Proliferation of Materials / Suppliers/Specifications• Lack of part cost visibility due to outsourcing• Inconsistent Quality
Product Lifecycle ManagementHow to Improve Product Profitability
Product Extension
Key Solutions for successful NPI
Source: Electronics Supply and Manufacturing, June 2005
EMS/ODMEMS/ODM
RegulatoryRegulatory
PurchasingPurchasing
QualityQuality
EngineeringEngineering
MarketingMarketing
Supply NetworkSupply Network
EMS/ODMEMS/ODM
RegulatoryRegulatory
PurchasingPurchasing
QualityQuality
EngineeringEngineering
MarketingMarketing
Supply NetworkSupply Network
EMS/ODMEMS/ODM
RegulatoryRegulatory
PurchasingPurchasing
QualityQuality
EngineeringEngineering
MarketingMarketing
Supply NetworkSupply Network
Product Lifecycle ManagementKey Capabilities• Streamline processes for introduction of right products to
market• Aggregate and enrich customer data for a single view both
within the enterprise and in the supply network• Product lifecycle enterprise collaboration• Manage product compliance and closed loop quality
Key Components• New Product Innovation• Product Quality and Regulatory Compliance Management• Project and Portfolio Management• Product Information Management & Master Data Management• Product Cost Management• Engineering & Design Collaboration
Key Benefits• Accelerate innovation—reduce cycle times by as much as 20%
and improve productivity up to 40%• Ensure compliance and quality — manage risks around
regulatory compliance and quality conformance• Enable globalization & outsourcing — increase efficiencies
through global engineering and outsourced design & mfg. • Improve cost and supply chain efficiency—rationalize supply,
reduce material costs by 5% & waste/rework by 40%
What is PLM?PLM enables Streamlined Processes, Better Product Decisions
Operational/SC Data
Program Data
Design/Engineering Data
Part Data
Quality DataProductRecord Data Environmental Compliance Data
ConceptConcept Plan DevelopDevelop ValidateValidate LaunchLaunch SustainSustain EOLEOLProgramExecution ConceptConcept Plan DevelopDevelop ValidateValidate LaunchLaunch SustainSustain EOLEOLProgramExecution
PRODUCT
LIFECYCLE
MANAGEMENT
Failure Analysis & Corrective Actions
Eng & MfgProduct Operations BusinessProcesses
Cost Management
Engineering Collaboration
Engineering Change Processes
Environmental ComplianceEnvironmental Compliance
C h
a n g e
Col l aborationFailure Analysis & Corrective Actions
Eng & MfgProduct Operations BusinessProcesses
Cost Management
Engineering Collaboration
Engineering Change Processes
Environmental ComplianceEnvironmental Compliance
C h
a n g e
Col l aborationC h
a n g e
Col l aborationC h
a n g e
Col l aboration
Decision SupportDecision SupportDecision Support
Table of Contents
• Manufacturing Industry Dynamics• Regulatory / compliance pressures• Product lifecycle execution• Global supply chain complexity and velocity• New customer expectations
• Enterprise Product Lifecycle Management• Within and Outside the Four Walls
• Oracle Agile PLM• Agile Value Proposition
• Customer Success• Global market leaders
Agile ProductAgile ProductCollaborationCollaboration
Engineering, Engineering, Operations & Operations & Supply ChainSupply Chain
Enterprise product record visibility, management & collaboration
Agile Enterprise Agile Enterprise VisualizationVisualization
Native document collaborative
visualization across the global enterprise
Cross-EnterpriseCross-Enterprise
Agile Agile Engineering Engineering
CollaborationCollaborationEngineering desktop integration & collaboration
DevelopmentDevelopment& Engineering& Engineering
Agile Product Cost Agile Product Cost ManagementManagement
Product sourcing and lifecycle cost & risk management
Procurement Procurement ProfessionalsProfessionals
Agile Product Portfolio Agile Product Portfolio ManagementManagement
Integrated product, program, resource & portfolio
management
Executives & Program Executives & Program OfficeOffice
Agile Product Agile Product Governance Governance
& & ComplianceCompliance
Product & program compliance against
standards & regulatory
requirements
Compliance Compliance OfficeOffice
Closed-loop product quality management
across the extended enterprise
QualityQualityProfessionalProfessional
ss
Agile Agile Quality Quality
ManagemManagementent
Oracle Agile PLM
ChallengeChallenge PLM Impact PLM Impact DriversDrivers
Reduce costs and increase Reduce costs and increase efficiencies thru global efficiencies thru global engineering and outsourced engineering and outsourced design & mfging collaborationdesign & mfging collaboration
Enable Globalization & Outsourcing
Low Cost Design Centers, Low Cost Design Centers, Outsourced Design & Mfg, Outsourced Design & Mfg, AcquisitionsAcquisitions
Reduce cycle time -- 10-20%Reduce cycle time -- 10-20%Improve productivity -- 20-40%Improve productivity -- 20-40%
Accelerating Time To Market
Faster innovation Faster innovation cycles, NPI explosioncycles, NPI explosion
Reducing Costs & Increasing
Profits
Intense pressure to reduce Intense pressure to reduce costs and supply risk, costs and supply risk, improve profit marginsimprove profit margins
Reduce material costs -- 2-5%Reduce material costs -- 2-5%Reduce new part adds -- 10-30%Reduce new part adds -- 10-30%Reduce Waste / Rework by 30-40%Reduce Waste / Rework by 30-40%
Managing Risk& Ensuring Compliance
Increased Quality Increased Quality and Regulationsand Regulations
Managing risk across Managing risk across financial, regulatory and financial, regulatory and international complexityinternational complexity
Oracle Agile PLMThe PLM Value Proposition – Quantifiable ROI
Table of Contents
• Manufacturing Industry Dynamics• Regulatory / compliance pressures• Product lifecycle execution• Global supply chain complexity and velocity• New customer expectations
• Enterprise Product Lifecycle Management• Within and Outside the Four Walls
• Oracle Agile PLM• Agile Value Proposition
• Customer Success• Global market leaders
Case Study:
BusinessChallenges:
• Significant need to integrate Product Record information (e.g. source code) btwn manufacturing & purchasing units to reduce time to market
• High costs due to limited visibility into supply chain - engineers could not make informed decision on quality, availability, cost, etc
• No automatic process to track components and hazardous material content in finished products per new guidelines
• Needed to improve internal collaboration for faster knowledge transfer and design, IP reuse
Agile Solution:
• Broad deployment of PLM - throughout all divisions & HQ• Agile PLM Modules include: Product Collaboration, Product Governance &
Compliance, Product Quality Management, Product Cost Management, Product Portfolio Management, Content Services, and Advanced Viewer
Business Results:
• Robust central repository of data to effectively manage BOM, local measurement units, and date configurations btwn multiple sites to reduce time to market
• Facilitates complex global product design (engineering) and manufacturing ability because everyone accessing the same product information source
• Enterprise system rationalization (7 systems consolidated)• Enables efficient material use at indv’l l manufacturing sites (Design/IP reuse)• Engineering change order cycle time reduced by 66%• Ensures compliance to regulations automatically - export control efficiencies• Secure collaboration & product visibility to partners
Harris Corporation, a $3.5 billion international communications Harris Corporation, a $3.5 billion international communications equipment company serves the global markets for microwave, equipment company serves the global markets for microwave,
broadcast, secure tactical radio, and government communications broadcast, secure tactical radio, and government communications systems.systems.
“ We've leveraged Agile's key strengths
of being rapidly deployable,
adaptable for configuration to our changing needs, and friendly to use across
multiple business units. Many of our internal users have
come to depend heavily upon
Agile.We continue to find more
opportunities to utilize Agile to
deliver new capabilities which will further the utilization
of product data to deliver bottom line business value.”
Bill Miller VP-Information services and CIO
Excerpt from an Agility 06
presentation:
“Special Thanks to
Agile for their quick support
during the most critical
implementation times.”
Steven Bergeron
Vice PresidentQuality & Reliability Assurance
BusinessChallenge:
• As the result of a spinoff and merger, Conexant’s core processes were held on different platforms, which caused companywide inefficiencies and interfered with new product introductions.
• New environmental regulations such as Pb-Free, RoHS, Green initiatives added manual, error-prone, costly work to ensure compliance.
Agile Solution:
• Conexant deployed Agile 9.2.1 Product Collaboration, Product Portfolio Management, Product Quality Management, Product Governance & Compliance, Engineering Collaboration, and SAP Integration.
Business Results:
• Consolidates product information to one source for secure, companywide access and collaboration.
• Accelerates time-to-market with full visibility into product and components throughout the lifecycle.
• Ensures compliance against global regulations to avoid business interruptions like recalls, FDA citations, etc.
• Saves money & time by reducing errors & improving quality.
Conexant Systems, Inc. provides semiconductor solutions for Conexant Systems, Inc. provides semiconductor solutions for broadband communications for digital home information and broadband communications for digital home information and
entertainment networks.entertainment networks.
Case Study:
Our Customers
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