Engineer to Order. Brian Grogan, Director of Product Management, 2014 Analyst Meeting

Transcription

1 Engineer to Order Brian Grogan, Director of Product Management, 2014 Analyst Meeting Smarter decisions, better products.

2 Outline Engineer-to-Order (ETO) within Industry ETO product configuration Customer examples 2014 Highlights ETO2Win partnership with TATA Consulting Services (TCS) Rulestream support for Solid Edge Single product configuration strategy Page 2

3 Continuum of Product Variability Standard products Configure-to-order CTO / ETO Engineer-to-order True custom products Increasing standard content Increasing custom content Products configured to customer requirements All design variants pre-engineered Relatively high volumes Products designed to customer specification Product engineering effort required in the sales and/or order fulfillment processes Relatively low volumes Page 3

4 Engineer to Order within Industry Industry Solutions Aerospace Automotive Consumer Electronics Energy Machinery Marine Medical Power generation boilers, environmental equipment Power distribution Switchgear, switchboards Industrial machinery Air handlers, cranes, conveyors Oil and gas Drilling equipment, Offshore Fluid flow technology Pump systems, engineered valves Specialty vehicles Fire trucks, ambulances, Special packaging Display vehicles Medical Devices Surgical implants Page 4

5 SLC OTC ITO ETO Process Landscape Inquiry to Order (ITO) / Proposal Engineering Order to Cash (OTC) / Order Engineering Service Lifecycle Customer Request Engineer to Req. Generate Response Negotiation & Signoff Project Initiation Detailed Eng Mfg/ Sourcing Ship Install Monitor Maintain Upgrade Product Configuration Page 5

6 Installation Production Estimation Eng. Sales Customer ETO Process Challenges Requirements Proposals lack Proposal content review Lower win Contract rates award Design approval Customer acceptance Product configuration Long lead times Design, specifications, drawings Proposal & risk assessment Design, CAD models & drawings eboms, compliance checks & eng. analysis MBOM routings quality data Tooling & fixture design Cost estimate & markup Guesswork erodes margin 15% of RFP s were not responded to due to insufficient resources Manufacturing Insufficient contingency accounted 40% of proposal related margin erosion Field installation Page 6

7 Installation Production Estimation Eng. Sales Customer ETO Process Challenges Requirements Proposal review Contract award Design approval Changes difficult to manage Liquidated Damages Customer acceptance Product configuration Proposal & risk assessment Design, specifications, drawings Design, CAD models & drawings eboms, compliance checks & Long lead eng. analysis times MBOM routings quality data Tooling & fixture design Cost estimate & markup Errors cause scrap & rework Order lead times ranged 10 to 30 weeks Manufacturing Average 20% schedule overrun Field installation Page 7

8 Installation Production Estimation Eng. Sales Customer Target ETO Process Requirements Proposal review Contract award Design approval Customer acceptance Product configuration Proposal & risk assessment Design, specifications, drawings Design, CAD models & drawings eboms, compliance checks & eng. analysis MBOM routings quality data Tooling & fixture design Cost estimate & markup Respond at near the same speed as standard/cto products Manufacturing Field installation Page 8

9 Installation Production Estimation Eng. Sales Customer Target ETO Process Requirements Product configuration Proposal review Proposal & risk assessment Contract award Design approval Truly custom or highly value added engineering Customer acceptance Design, specifications, drawings Design, CAD models & drawings eboms, compliance checks & eng. analysis MBOM routings quality data Tooling & fixture design Cost estimate & markup Respond at nearly the same speed as standard/cto products Go directly from order to manufacturing Manufacturing Field installation Page 9

10 The Degree of Product Variability Drives Configuration Requirements Page 10 Logical Configurator Characteristics 150% BOM, Super BOM, Variant Structure Option/feature management Rule authoring focused on part usage (logical part inclusion/exclusion rules) Typically focused on BOM and BOP config Limited integration to CAX (order processing) Primary drivers of complexity include BOM solve performance Managing large volumes of part usage rules ETO Characteristics Engineering automation and new part/content generation Rule authoring focused on engineering calculations and best practices Generation of BOM and all related content Bi-directional CAX integrations Primary drivers of complexity include capture and execution of large numbers of engineering calculations and integrations to authoring tools

11 ETO Product Configuration - Rulestream Capture engineering/business knowledge Engineering: design, design for manufacturability, quality, compliance, etc. Commercial: price, cost, terms, customer preference, supply chain, etc. ETO Configuration Rules Repository Rules Execution Engine Product Configuration Content Configuration Configure the detailed product and related product content Generate the proposal content Proposal and technical documents 3D visualizations Sales drawings Generate the engineering/mfg content CAD models Manufacturing drawings Manufacturing BOMS Work instructions Page 11

12 Product Demonstration Page 12

13 PLM Automation Requirements for ETO Rule-based generation of product structure, data sets, and workflow interaction in support of complex ETO processes Teamcenter Master Data Order Data Standard & Reusable Parts Document Templates Project Templates Project Structure Product Structure Project Documents triggered by workflows Item Searching Dataset Retrieval Template Retrieval Page 13 Rulestream Rules Engine (web service or client application) Rules for generating job specific project/product structure and documents (CAD, Office, etc.) triggers workflows Generates product structure Creates relations Stores datasets Launches workflow

14 ETO2Win Partnership Siemens and TATA Consulting Services (TCS) Siemens Products TCS Customer Value Rulestream, Teamcenter, NX, Solid Edge ETO process framework, deployment accelerators and best practices, implementation services Enterprise transformation automating the entire inquiry-to-quote & order-to-release process improving lead times & win rates TATA Consulting Services Top 10 global service provider, >$13B revenue, >300,000 employees partner >25 years ETO Center of Excellence Deep system integration experience within companies having ETO processes Page 14

15 Comprehensive Enablers for ETO Process Improvement Integrated Solution Stack for ITO / OTR Templatized Process Definition Solution Accelerators Capability Maturity Use Case Scenarios ROI - Analysis Page 15

16 Customer Success: Babcock & Wilcox Currently deployed across twelve (12) products and processes Proposal benefits: Greatly reduced design times (up to 80% for some products) Increased design fidelity within the proposal stage Better estimation of cost, schedule and risk through reduced variance. Contract benefits: More predictable margins Fewer errors More time for sublet sourcing (lower costs) Highly scalable rule-based platform Page 16

17 Babcock & Wilcox: Baghouse Fabric Filter Challenge: Highly variable process and product (specs for fuels, removal level, sizes are infinitely variable) Go-by cost modeling due to insufficient design detail during proposal effort (cost variance risk) Lower margin product requiring fast turnaround and short bid cycles Solution: Integrate all design disciplines into one application Allows optimization of degree of modularity and cost tradeoff of materials Automated bill of material for critical supply scope enhances bid accuracy and faster contract start Benefits: Reduced proposal time from one month to under a week Significant improvement in accuracy and effort Page 17

18 Success Story: Babcock & Wilcox Film Customer Video: Page 18

19 The Continuum of Product Variability Standard products Configure-to-order CTO / ETO Engineer-to-order True custom products Teamcenter Configurator Rulestream ETO Teamcenter PLM Process management, data management, collaboration Page 19

20 A Unique Opportunity for Siemens PLM Standard products Configure-to-order High complexity Configure-to-order Engineer-to-order True custom products Single Product Configuration Solution An integrated product configurator optimized for managing the complexities across the full continuum of product variability. Page 20

21 Summary Standard products Configure-to-order High complexity Configure-to-order Engineer-to-order True custom products Product configuration within an ETO process has unique solution requirements Siemens PLM has a powerful product configuration solution (Rulestream) that is integrated into the Siemens product suite (Teamcenter, NX, Solid Edge, JT/Vis) We have a joint solution with TATA Consulting Services to help accelerate our business and our customers success Future direction is an integrated product configurator optimized for managing the complexities across the full continuum of product variability. Page 21

22 Thank you. Smarter decisions, better products.