Checklists for Complex Manufacturing

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1 Cincom Manufacturing Solutions Checklists for Complex Manufacturing Streamlined effective selling processes Product and process management Enterprise management Performance management SIMPLIFICATION THROUGH INNOVATION

2 Today, leading complex manufacturing companies are focused on achieving operational excellence. Working toward producing the highest quality products to meet the customers price, delivery and specifications at the lowest possible cost, using the most efficient business processes, accomplished with maximized profit this is operational excellence defined. Cincom has long specialized in helping complex manufacturers accelerate operational excellence, by providing lean enterprise solutions and industry-leading domain expertise. Cincom believes that manufacturers are most effective when they align their business strategy with their technology strategy, which is the essential ingredient to improving productivity, increasing profitability, controlling costs, monitoring quality and better serving customers. Complex manufacturers that are focused on simplifying business processes to achieve operational excellence and leadership in their chosen markets must focus on business and manufacturing processes in four key areas: Streamlined effective selling processes Product and process management Enterprise management Performance management

3 Streamlined, More Effective Selling Processes Manufacturing companies worldwide are in the midst of a revolution to streamline all of the processes focused on attracting, selling and servicing customers across both indirect and direct distribution channels. Compounding manufacturers challenges is the fact that competitors from related industry areas are streamlining their quote-to-order processes to increase the sale of customized products into new markets. With competitive pressure coming from aggressively trimmed process execution within their competitors in addition to continual introduction of new product features, pricing is emerging as a strong competitive advantage on the one hand, and a barometer of profitability on the other. The ability to combine special pricing requests with configure-to-order has become one of the most powerful sales strategies there is from both a customerresponsiveness and profit-per-order standpoint. Of all the customer-centered processes that manufacturers contend with, the combination of quote-to-order and lean enterprise solutions has the potential to deliver the greatest financial benefit and return on investment to operations companywide. Transforming excess production capacity into profits, trimming the costs of inaccurate orders and increasing gross margins by delivering products that are tailored to specific users needs, qualifies quote-to-order as a process area that is full of potential revenue growth and cost reduction for any manufacturer. Streamlined Effective Selling Processes Checklist Check the issues that are important to your business: Translating products and services directly to customer specifications Producing integrated product models that will provide sales, manufacturing and product views Streamlining the ETO process Crafting an integrated product base containing relevant rules and data Integrating quote-to-order delivery processes directly into the sales channel Creating product-development processes that are integrated into the sales channel Generating a 360-degree view of the customer Integrating sales, engineering and manufacturing data Building mass-customized products Integrating customer, opportunity, order and configuration data Integrating the sales, engineering and manufacturing product life cycles Forming a customer-driven quote-to-order process Establishing a manufacturing environment that is responsive to customer changes Bringing product knowledge closer to the opportunity Starting a complete integration with the web based on the inquiry-to-order system that supports the entire channel Automating product lifecycle management Mechanizing the Quote to-order system (ISS) Providing a complete integration with CRM, ERP and CAD Now, ask yourself the question: Where do the processes that are relevant to these critical issues reside within my own organization?

4 Integrated Product and Process Management Integrated Product and Process Management (IPPD) is a management technique that has evolved out of the United States Department of Defense. It is used by manufacturers to optimize the design, manufacture and other critical business processes, with a goal to improve the cost and performance objectives of serving their customers efficiently and effectively. Manufacturers need integrated software technologies to help them bring new products to market, satisfy their customer s requirements and drive innovation through continuous improvement and change management. Integrated Product and Process Management Checklist Check the issues that are important to your business: Generating holistic design collaboration Providing product-line history with probabilistic planning Offering concurrent product development Crafting formal processes in place including exception management Presenting quality processes that are documented Creating clearly documented engineering change processes Providing integration to order management and configuration systems Furnishing integration to CAD/CAM systems Supplying part history by both product and customer Establishing collaborative product development Creating product lifecycle tracking and documentation Producing portal-based collaboration with customers, suppliers and partners Developing mass-customization of highly engineered products Now, ask yourself the question: Where do the processes that are relevant to these critical issues reside within my own organization? Cincom has long specialized in helping complex manufacturers accelerate operational excellence, by providing lean enterprise solutions and industry-leading domain expertise.

5 Comprehensive Enterprise Management Manufacturers today require an enterprise system spanning the entire organization and beyond. These systems can be as state-of-the-art as a fully implemented ERP system or as simple as a shared directory with MS Excel spreadsheets that reflect the date that the product will be manufactured and what constitutes the bill of materials. The majority of companies are found between these two extremes, yet there are manufacturers today that run on nothing but personal productivity software. Manufacturers running production on Excel spreadsheets rob themselves of the invaluable cost and sales benefits of fully integrated systems. The ideal solution addresses and automates each critical business process providing an integrated system of record the basis for which performance can be quickly benchmarked and improved. Most software solutions that are on the market today fall short of addressing the unique business requirements of complex manufacturers and those who develop highly engineered products. This is primarily attributed to industry-standard Material Resource Planning (MRP) and Enterprise Resource Planning (ERP) models, which can be confining to the flexibility required by different complex manufacturing types, ordering techniques or inventory styles. Enterprise management solutions encompass capabilities known as MRP and ERP, and expand to include specific options to support modern industry innovations. Examples of these include lean and demand-driven manufacturing, integrated quality management and support for projectbased manufacturing organizations, to name only a few. Manufacturers today also seek an integrated approach to systems, processes and people, helping them manage their entire organization, locally and internationally. Enterprise Systems must be scalable, to support mergers and acquisitions, changes in business strategy and to support hybrid manufacturing techniques that come with different types of products and product families. Comprehensive Enterprise Management Checklist Check the issues that are important to your business: Realizing the perfect order Exceeding customer expectations Attaining leadership positioning Automating business processes across the value chain Eliminating non-value-added activities Developing a single system of record Creating an event-driven, real-time enterprise Generating demand-driven manufacturing Making modularity and re-use dominant Producing customer promises that are based on a true capability to promise Crafting extended enterprise capabilities Aligning demand and supply processes Automating business processes that are fully integrated within the enterprise Designing an internet base for employees, suppliers, and customer collaboration Providing support for XML-based communications Now, ask yourself the question: Where do the processes that are relevant to these critical issues reside within my own organization?

6 Fact-Based Performance Management Manufacturers too often make decisions based on intuition and imprecise measures of the past, attempting to predict the future based on a general sense of the cause and effect relationships in their business. When you contrast imprecise intuition with insights gained from a deliberate, disciplined strategy of measuring a company s progress toward its goals, it becomes clear why enterprise performance management is becoming critical to global manufacturing, distribution and services companies. Fact-Based Performance Management Checklist Check the issues that are important to your business: Generating processes plus access to information to become a competitive weapon in go-to-market strategies Providing real-time access to the extended enterprise Developing processes that will force decision points on optimizing time, quality and price Optimizing decisions for market Providing integration with automated business process systems Crafting real-time integration with value chain (supplier, buyers, channel partners) Processing role-based information that is relative to goals and available 24/7 Initiating real-time sales and operations planning visibility for optimizing product mix Anticipating market conditions and capitalizing on them Generating alignment of information to goals company-wide Developing decision support systems Creating dashboards and interactive reporting systems based on relevant KPIs Providing automated alerts Producing an integration with five or more systems Now, ask yourself the question: Where do the processes that are relevant to these critical issues reside within my own organization? Based on the issues you ve selected on the checklists, identify who within your organization owns the relevant processes. How does each process fit within your overall value stream (the integrated flow of processes necessary to deliver value to customers)? Look for areas where you can remove extra steps and process complexity. Insert automation wherever possible, and consolidate, communicate and integrate.

7 About Cincom Cincom and its partners deliver and support innovative software and services to simplify complex business processes. Cincom Acquire simplifies complex selling by delivering critical product, pricing and process knowledge to the point of sale. For 40 years, Cincom has empowered thousands of clients worldwide to transform their businesses and outperform the competition by providing ways to increase revenue, control cost, minimize risk and achieve rapid ROI. Cincom serves clients on six continents including American Power Conversion, Air Products, BMW, Boeing, Ericsson, Rolls-Royce, Rockwell Automation and Siemens. For more information and additional resources, contact Cincom at (USA only) send an to or visit the company s website at

8 Cincom, the Quadrant Logo, Cincom Acquire and Simplification Through Innovation are trademarks or registered trademarks of Cincom Systems, Inc. All other trademarks belong to their respective companies. 2005, 2006, 2008 Cincom Systems, Inc FORM CW /08 Printed in U.S.A. All Rights Reserved World Headquarters Cincinnati, OH USA US CINCOM ( ) International Fax

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