Human and System driven collaborative workflow within the Engineering Value Chain. 5 november 2008 Evoluon - Eindhoven

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1 Human and System driven collaborative workflow within the Engineering Value Chain

2 Typical Business Questions from Manufacturers How do we stimulate innovation to improve product development & accelerate time-to-market of new products? better collaborate with suppliers and distributors to increase supply chain efficiency? continue to automate our order management processes to reduce transaction costs? create a single view of the customer to improve customer service and create selling opportunities? create a real-time view of a customer-order status? (e.g. in-stock, planned, shipped) continue to build a technology foundation to promote business agility and adapt to change?

3 Business Drivers For Manufacturers Product Lifecycle Management Design collaboration & design for manufacturability Product Data Management (product change, configurations, and Bill-of- Materials management) Design win management (with distributors) Supplier Relationship Management Inventory management (VMI) 3rd Party Logistics management Customer Relationship Management Single Control of Customer Quote-to-cash automation Manufacturing Shop floor visibility (Shop-to-enterprise integration) Contract Manufacturer Integration (OEM to CEM, CEM to sub-contractor) Administration & Finance Process & Systems Harmonization (IT Portfolio Management) Payment assurance and confirmation Compliance (e.g. SOX) & Financial/Tax Reporting

4 A Typical Supply Chain 4

5 Engineering Collaboration (Simplified) Subcontractors Customers A&D OEM Strategic Partners Other PDM Design Partners Suppliers PDM 5

6 In Reality.. Subcontractors Subcontractors A&D OEM Customers Customers Customers Other PDM Strategic Partners Design Design Partners Partners Suppliers Suppliers Suppliers PDM 6

7 Typical Collaboration Without Process Control Informal task assignment and communication Inconsistent and non-optimal prioritization Incomplete or inaccurate information flows Resulting in: No control over process, people and systems > Only 6% of processes are automated > 85% of processes require human and system interaction Subcontractors A&D OEM Customers Wasted time SLAs not being kept Strategic Partners No process performance insight Too expensive business processes Employee and customer dissatisfaction Design Partners Suppliers 7

8 Impact Quantified q 13% of intellectual property discrepancy is due to supply chain miscommunication q 21% of all product recalls are due to lack of data synchronization Lack of product data interoperability is the Goliath facing today s global industry supply chain. We are the Davids, and automation of data synchronization is the rock. Emery Szmrecsanyi EVP, Daimler-Chrysler Corp. q 38% of a product s time to value is consumed by manual information sharing across the supply chain q 50% of product development cycle time is a result of inefficient collaboration q Billions of dollars are wasted each year due to fines and market delays resulting from lack of compliance 2005 Global Product Development Survey CIMdata

9 Typical Collaboration With Process Control Process Control Partners Sub- Contractor Supplier One Process View Process Visibility External Domain People as part of a workflow Strategic Partner Design Partner Support Sales Finance Manufacturing Applications PLM CRM SCM ERP 9

10 Business Function Product Specifications Inventory Management Warehouse Management Shipping Production Scheduling RFID and other SupplyChain Events Challenges in current Manufacturing Business Operations To-date, manufacturers have mostly relied on manual, point-to-point integration Commercial Off-the-Shelf Applications Enterprise resources planning (ERP) Manufacturing execution (MES) Product life cycle management (PLM) Process information management (PIMS) ERP MES Warehouse management (WMS) Maintenance management systems (MMS) ERP MES WMS ERP MES Transport management system (TMS) ERP MES Advanced planning and scheduling (APS) ERP MES PLM WMS TMS RFID Readers Hand-coded integration is deceptive; it seems easier and cheaper to implement than an integration framework, but it ends up being far more expensive and aggravating to maintain. Worse, hand-coded integration devours IT resources that are better invested elsewhere, like revenue-enhancing and cost-saving processes. AMR Research Evoluon -Eindhoven PLM MES MMS ERP PIMS TMS WMS APS

11 Desired State Of integrated Business Operations Manufacturers look to Cordys Business Operations Platform to drive efficiency and operational excellence. Manual interfaces eliminated Reduced IT development costs Reduced time of deployment for new business processes/interactions Real-time processing enabled Enterprise-wide visibility gained through the use of a common integration bus Provides support for Process and Quality management initiatives Increased ability to provide new levels of service to customers and suppliers More automated order taking Quicker Order-To-Cash cycle Greater asset utilization Faster/more accurate reconciliation's MES ERP PLM RFID Readers TMS Cordys Business Operations Platform MMS PIMS WMS APS

12 Product Life-cycle Management Resides at the Core of your Operation In today s competitive global marketplace, quality of product data generated, sent, or received is crucial to corporate survival. The consensus at a recent PDM ERP distributor/ reseller MES PLM ERP manufacturer (OEM) retailer workgroup meeting was that losses ERP resulting for lack of systems inoperability and lack of SCM synchronization are of staggering proportions.. easily reaching billions of dollars wasted. Akram 12 Yunas, EVP CPD 40 AIAG CPD Conference, 2006 ERP supplier PLM CRM logistics ERP

13 Collaborative Engineering PLM-A Cordys CCE Cordys CCE PLM-B Fxml Define New Product Engineering Design Change Compliance Policy New Technology Impact 13

14 True Business Agility Single View UI Composition Layer with Role base Browser The business user BPM Process Owner Composer Admin Multi-Tenant SaaS Deployment Framework Deployment, Enrollment, Metering Developer The switch between all Enterprise Services Nonstop SOA GRID JIT Binding Leveraging existing applications 14 ERP CRM Legacy SCM PLM JIT service involvement

15 So companies can improve, innovate Deming QA (PDSA) kaizen, poka yoke Modular & Island admin. Integrated System Collaborative Systems SixSigma (DMAIC) activity process chain oriented oriented oriented 15 Business Activity Management ERP: collection of linked functions or hard coded process Function Process Collaboration Business Process Management Metric Enterprise Corporate Performance Management Product Value stream analysis

16 Business Operations Platform The power of Value Stream Mngt and BPMS combined Value stream analysis Metric Product Implement Service Unit Technology Role Enterprise Performance feedback 16

17 The Value Chain Requirements, Design, Procurement, Engineer Build

18 The Value Chain Requirements, Design, Procurement, Engineer Build

19 The Value Chain Requirements, Design, Procurement, Engineer Build

20 The Value Chain Requirements, Design, Procurement, Engineer Build

21 A Sub-Process - Internal to Company 3

22 IT Technologies that have biggest benefits for Manufacturers research by Aberdeen (Best-in-Class Manufacturer)

23 What makes the difference The M&A Building Unified Platform Complex to install Long development cycles Inefficient and costly Difficult to connect Uncertain growth options Divers plumbing systems Costly to deploy Departmental attitude Limited use for business Easy to install Shortened time-to-market Positive price/performance Open to connect Scales with your business Central admin & monitoring Lower Total Cost of Ownership The collaborative building 23 Effective business building

24 True Business Agility Single View UI Composition Layer with Role base Browser The business user BPM Process Owner Composer Admin Multi-Tenant SaaS Deployment Framework Deployment, Enrollment, Metering Developer The switch between all Enterprise Services Nonstop SOA GRID JIT Binding Leveraging existing applications 24 ERP CRM Legacy SCM PLM JIT service involvement

25 Single Platform Designing, Executing and Monitoring your Critical Business Operations True Business - IT Collaboration, where Business and IT share one model for a complete business solution Faster Time-To-Market, enabled by a fully integrated product, without import & export of process models, increasing productivity Lower TCO because of central management and monitoring of platform and processes 25

26 Integrated Modeling, Execution and Monitoring What you Model is what you Execute 4 1 Executable process for true business IT collaboration and high productivity 2 Drag & drop web services to rapidly connect web services to the process model Long- and short-lived process support supporting any type of business process with system and human interaction Rules engine for automated decision making 26

27 Integrated Modeling, Execution and Monitoring Execute business processes across your IT systems 1 1 Custom Inbox integrating shared work lists, team and role based work lists Access and update diverse back-end systems through a single UI screen Integration with MS Office 27

28 Integrated Modeling, Execution and Monitoring 2 1 End-to-End Integrated Solution for Closed-Loop Monitoring Integrated, real-time monitoring of activities across humans and systems Single dashboard to monitor running processes through-out your IT systems Integration with business data of process for finegrained, contextual monitoring 28

29 Business Operations Platform Model Driven Development Customers Managers Staff Suppliers Monitor performance Cordys Business Operations Platform (BOP) Drag-and-drop web services Business Process Management Suite (BPMS) Business Activity Monitoring (BAM) Composite application Information harmonization Business Services Master Data Managemen t (MDM) Case Management SOA Grid Rules Composite Applications Framework (CAF) & UIs Integrated Rules Corporate Data Claims Products Dynamic processes ERP CRM Legacy app PLM Linear scalability

30 Human and System driven collaborative workflow within the Engineering Value Chain