BAE Systems Sweden ARAS - Mission ready PLM. Kalle Hagström Head of Information Systems, Platforms & Services Sweden

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1 1 BAE Systems Sweden ARAS - Mission ready PLM Kalle Hagström Head of Information Systems, Platforms & Services Sweden

2 2 BAE Systems Sweden Part of a Leading Global Defence Company Air Naval Land Cyber Support solutions

3 3 Our global operations BAE Systems Key markets Australia circa 4,100 employees Oman circa 25 employees Saudi Arabia circa 6,100 employees United Kingdom circa 33,300 employees United States circa 31,200 employees Other circa 8,700 employees Global Business Development Offices * Employee figures correct as of 31 December 2014, and include share in joint venture companies.

4 4 BAE Systems Sweden: Locations Karlskoga (Weapons) Stockholm (Office) Linköping (Office) Örnsköldsvik (Vehicles)

5 5 BAE Systems Sweden: Our Main Products Howitzers Naval Gun Systems Ammunition All Terrain Vehicles Combat Vehicles

6 6 Business Characteristics

7 Business Characteristics Complex Products 7 Mechatronic Software design Mechanical design Electrical Design Offset Many subsystems Complex interfaces Custom Simulations Made Support Solutions Systems Engineering

8 Business Characteristics Product (long) LIFECYCLE Management 8 Disposal Fielding In-service Manufacturing Design through system life cycle Concept Year

9 Business Characteristics Complex Programmes 9 Security and Export Control Many Suppliers Change Management Offset Short Series and lead times Customization Support Contracts Information Management deliverables

10 10 PLM Selection Process

11 Business Value PLM Selection Process 11 Our PLM Maturity Our PLM maturity Our PDM maturity Optimized Unstructured No processes defined Manual work Document oriented No central repository Repeatable Basic processes Basic central file storage Document Oriented Defined Process are described and followed Different information systems per domain Managed Change management process implemented Data stored centrally Closed loop change management processes Applications are integrated Central repository for all information domains Maturity

12 PLM Selection Process 12 Background Two outdated PLM systems, one per site One bespoke PDM implementation (PDA) which has been implemented from 1989 and onwards. One PDM implementation based on Teamcenter Enterprise Risk and constraints with current solutions The PLM IT-environment as such is outdated and unstable. All additional functionality has to be funded Current process coverage is only core PDM Dependent of local support Configuration and Change Management is inefficient BoM management is time consuming for TeamCenter Tight CAD integration is missing for TeamCenter Current solution is out of vendor support Dependencies on external key resources

13 PLM Selection Process Challenge 13 Dear Management Committee, we propose to assess SystemX and SystemY! Finance: Why not recode our bespoke system to modern technology? Manufacturing: Why not use our ERP system instead? Why not consolidate PLM systems in Sweden? Wider BAE: Why not just share or copy another existing enterprise PLM system? Hey, you IT guys and you Engineering folks. Your wet dream is to implement a expensive high end PLM system, go out and find something else!

14 New Product Development Back Office Capability PLM Selection Process Vendor Positioning* 14 Size reflects PLM capability IFS SAP Oracle PDA ARAS Dassault Siemens PTC Autodesk Small Enterprise Large Enterprise *based on slide from Marc Halpern, Gartner

15 PLM Selection Process 15 High Level Plan PLM assessment 2014 Q1-Q3 PLM Scoping 2015 Q1 PLM Implementation PLM Phase II 2017-> Gap analysis previous studies Assess suppliers/systems Down select of suppliers/system Define implementation plan and RoM costing Presentation to engineering management and MC PLM Core team Define AS-IS view of process, toolset, information models and interfaces to other systems Detailed implementation plan Total cost for implementation phase Schedule with activities and dependencies PLM Core team+workshop s with SME:s Scope: Replace existing PDA/TC functionality Implement best practise PLM processes Reimplement Interfaces to existing systems Migrate appropiate PDA/TC data Develop and conduct training Full blown implementation project Implement further capabilities like: LSAR, MRO, Systems Engineering Extended enterprise PLM Wider CM Separate impl. Projects RoI

16 PLM Selection Process The Maths 16 Vendor Checksum W1 W2 W3 Pos. Requirements 50 1 Vendor, commercials, licenses Company specific/culture Commercial agreement, license model 50 2 Non functional requirements Security Integration and Technology Searching and reporting Printing 10 1 Shall requirements fulfilled 2 Cost 50% 3 Requirements 50% 3 Functional requirements General functional Demands BOM & Configuration Management Content and document Management Compliance Maintenance Repair Ovehaul Manufacturing Process Managment Part classification Project and portfolio Management Simulation Management Visualization Workflow Management xcad Change management External/Internal collaboration Mechatronics process management Requirements management 5 4 Proposed infrastructure, Technical solution Central infra(server, DB mm) Technical solutions (instances, segregation etc) Client HW 15 5 Service, maintenance and support 12 5 Service, maintenance and support Training 1 6 Training Documentation 2 7 Documentation Project Implementation Model and Process Scoping phase 0 10 Total cost 50 Total cost 100 Total sum 100

17 PLM Selection Process The Result 17 TCO SystemX SystemY ARAS Impl time More Less Equal Internal time Equal Equal Equal Licence cost 1-off More More None Scoping cost More More Less Impl cost More Equal Equal Annual renewal cost Equal More Equal Upgrade More More None Ext impl cost BAE More More Less Total 1-off More More Less 5 year ext cost More More Less

18 PLM Selection Process ARAS SWOT 18 Strength License Management Upgrades Technology Configurable Openess Architecture for CAD Weakness Overall OOTB capabilities Manufacturing Process Planning Local support xcad-integration Unclear RFP response 3D-support in PDM Opportunity Possibility to consolidate systems More capabilites to use for free Reports Threat Too much configaration No CatiaV6 integration Third parties used for CAD integration Risk for M&A:s Need more internal resources

19 PLM Selection Process Why Aras? 19 No upfront investment Lower Total Cost of Ownership Differentiator Support our complex business Good enough and broad capabilities to support our business Strong on configuration management and change management Good culture fit Open and resilient solution Support our long life cycles

20 21 Lessons learned so far Partners Project plan System Deployments Migration Business Change

21 22 Strategic Way Forward

22 Collaboration Design Concept Replace IPC:s? Replace TechPubs? Project/Portfolio Management? Replace ReqMgnt? Obsolescence Proposals? Replace DMS:s? Replace PDA/TC Replace LSA tools? New Supplier Portal? External change management? Process planning MBOM? Replace CM Portal Business Optimisation Compliance IT Cost Reduction Change Management Manufacture Support Revenue Growth

23 Summary 24

24 26 Thank You!

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