Industry Trends Resulting Challenges Consequences Solution: Engineering Data Management Autodesk Solutions Q&A

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1 Tanuj Bansal Sr Product Manager Engineering Data Management Why should you care? Agenda Industry Trends Resulting Challenges Consequences Solution: Engineering Data Management Autodesk Solutions Q&A 1

2 Industry Trends Mass Customization Outsourcing Globalization Tailored to customer needs More product versions More product changes Cost advantage & flexibility More collaboration Less control New revenue opportunity More configurations More complex requirements Overall Impact is More Engineering Effort Mass Customization Market Offerings Television screen sizes Sneaker styles Contact lens types Bicycle types Pain relievers Early 1970 s Late 1990 s Mass customization = More chaos for engineering Proliferation of products More data, files, parts to manage More assemblies and BOMs to manage More product changes to implement and track Source: University of Nottingham; Cox WM, Alm R (1998), The Right Stuff: America s move to mass customization, Federal Reserve Bank of Dallas. Annual Report 1998, Dallas 2

3 Outsourcing Over 30% spend $100k-$500k on outsourcing Source: Outsourcing Survey, Desktop Engineering, March 2003 Outsourcing China Labor costs 90% lower than developed countries Small and Mid-size companies are investing in offshore resources Cisco owns only 3 factories and subcontracts the rest of its work to other companies around the world 66% of the automobiles sold in North America by Japan s Toyota Motor Company are built in North America, many in Kentucky and in seven other states Source: "Globalization," Microsoft Encarta Online Encyclopedia

4 Globalization: No Longer an Option Small and medium size companies view offshore markets as essential to survival and growth By 2008, China is estimated to have more purchasing power than the European Union Within next 5 years, China is expected to become the second largest automobile market Big or small, you have to be part of the Globalization trend Source: AMR Research 2003 Industry Trends These key trends Mass Customization Outsourcing Globalization Are forcing manufactures to Reduce Time to Market Reduce Product Costs Leverage Global Sources and Markets Improve Productivity But significant challenges stand in the way! 4

5 Agenda Industry Trends Resulting Challenges Consequences Solution: Engineering Data Management Autodesk Solutions Q&A What s getting in the way? 5

6 What s getting in the way? Working on wrong version Overwriting good work Modifying the same part Wrong reference designs What s getting in the way? Incomplete or inaccurate Engineering BOMs No one Low way Design or place Reuse to manage BOM from Design thru Support Out of sync Engineering and Manufacturing BOMs 6

7 What s getting in the way? Complex data spread all over multiple repositories and desktops Unable to reliably determine what s used where Unable to easily search for designs What s getting in the way? Broken engineering change process Cumbersome, Poor Supplier complicated and Customer signoff processes Collaboration No means for tracking, notifying, prioritizing Incomplete or inaccurate supporting documentation No historical record of past changes 7

8 What s getting in the way? Sharing wrong version or supplier working on a dated version Tough to track or close-the-loop to supplier suggestions in timely manner Inability to track change requests submitted by the customers Suppliers/customers buried in s Agenda Industry Trends Resulting Challenges Consequences Solution: Engineering Data Management Autodesk Solutions Q&A 8

9 Consequences Lack of design reuse can lead to 5-15% product cost disadvantage Imperfect product data interoperability costs at least $1B per year in waste to the US Automotive industry $900M of this cost is in drawing re-mastering For consumer branded goods, the 2nd and 3rd to market experience 25% to 35% lower sales How do you measure where you stand? Source: AMR Research, April 2003 How to measure success? Performance Measure 25th Percentile Mean 90th Percentile On-Time Delivery 90% 91.60% 99% Customer Lead-Time (Days) Total Inventory Turn Rate Finished Product First Pass Yield 90% 91.10% 99% Effective Capacity Utilization 70% 79.10% 95% Unplanned Downtime 10% 7.60% 1% Labor Turnover Rate 15% 12.00% 1.70% Revenue per Employee $108k $272k $500k Note: Over 35% of the companies in this survey had revenues of less than $100m. The research is from Annual Census of Manufacturers See for more information. Where is your company on this chart? 9

10 Agenda Industry Trends Resulting Challenges Consequences Solution: Engineering Data Management Autodesk Solutions Q&A Engineering Data Management Create CAD CAD Manage, Share Engineering Data Management Execute Other ERP ERP 10

11 Solutions Better structure and control of WIP data Multi-user environment Leverage design standards and templates Implement design reviews and release processes Solutions Establish processes for access and control of released data Manage Low EBOM Design integrated Reuse with the CAD data Integrate EBOM with MBOM 11

12 Solutions Consolidate product data in one place Implement attribute-based Engineering Change searches, Delays where used Implement part libraries Solutions Implement electronic Engineering Change processes Automate notifications and tracking Leverage and track change history 12

13 Solutions Establish traceable collaboration processes Implement secure publishing of released data Track, audit and report outstanding actions, change requests, suggestions etc. Results from Typical Initiatives 5-30% reduction in Time to Market 35% reduction in product development costs 80% reduction in tooling lead time by providing suppliers access to CAD data Reduced design errors and rework by 25% Reduced ECO Cycle time by 50%, ECO Admin expense reduced by 60% Source: AMR Research, September

14 Agenda Industry Trends Resulting Challenges Consequences Solution: Engineering Data Management Autodesk Solutions Q&A Autodesk Vault Easy to use intuitive interface Manage, organize engineering data Safe repository for all related engineering data Multi-user Track versions Search for products/parts/files 14

15 Autodesk Vault - Components Autodesk Autodesk Inventor Inventor Add-in* Add-in* Vault Vault Explorer* Explorer* * Included in AIS/AIP Engineering* Vault Autodesk Vault - Demonstration 15

16 Autodesk Streamline Collaboration Service to organize, manage and share design and engineering information with supply chain CAD design files Non-CAD files Simple and Secure Easy to Use Potential Future Offerings: Autodesk Product Explorer New solution: Release Process Management Engineering Change Bill of Material Management Leveraging industry standards such as.net and SOAP API 16

17 Autodesk Solutions: Key Differentiators Superior design integration Easy to use Hassle Free Scalable from workgroup to enterprise Install easily, no complex deployment Extensive IT support not required Autodesk Inventor Professional Autodesk Inventor Series Autodesk Engineering Data Management Solutions 17

18 Tanuj Bansal Sr Product Manager Engineering Data Management Why should you care? 18