Welcome everyone. My name is ------ and I want to thank you for taking the time to join our webinar series on the automotive and transportation industries. For automotive suppliers, success depends on their ability to help automakers launch their vehicle programs on-time and with efficiency.
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We all understand that the automotive industry is going through rapid changes. For suppliers, it means developing more innovative products faster and more efficiently. You need to work closely with other teams in your business, along with OEMs, customers and partners. Collaboration is more important than ever. Retaining knowledge and the ability to turn designs around quickly with high quality is also critical.
Today you will learn how Teamcenter from Siemens PLM Software can help you be more productive in automotive design release process.
So let’s get started…
There is no doubt, as an automotive supplier you are under a lot of pressure to deliver products on time and with high quality.
However, we all know it is easier said than done. Product design and development is a complex process and you are all aware of these issues that you see on the screen.
The potential impact of program failure is twofold: financial as well as reputation.
The worst case scenario is unscheduled production downtime and customers receiving their parts late.
Unplanned production downtime can cost millions, but it also hurts your reputation. Your partnerships with OEMs and suppliers can suffer.
As the industry is more connected, the costs of failure is always magnified. That’s why it’s more important than ever to take control of your engineering data and processes.
It is therefore crucial to put in place a robust PLM system that is proven in the industry. The primary reason, companies want to adopt PLM is to take control of their product data and processes.
The idea is to have a single source of product and process data. A single source of product data can simplify program execution. When CAD design files as well as associated part data are managed in a single environment it can significantly improve efficiency.
A managed PLM environment can ensure reuse of existing knowledge and thereby helping you maintain repeatability and quality of your deliverables.
PLM can also help you streamline design collaboration across your globally distributed team.
And, why you need a more robust and proven PLM platform?
There are significant business drivers for automotive suppliers to implement PLM systems.
First, you all know this. The automotive industry is more global than ever before. Over the next 10-15 years most of the volume growth in vehicle sales will be coming from emerging nations. By 2030, 50% of new cars will be sold in Asia.
OEMs and tier-1 are asking their suppliers to co-locate their design and development centers.
This means, to be competitive and develop products for the global market, you need a global product development platform.
Another trend in automotive; regulations are increasing. This is a challenge as well as an opportunity.
It means many OEMs are asking their suppliers to both redesign products AND look for new products and solutions to meet the regulatory requirements.
This statistic from McKinsey is enlightening. By 2020, 65% of the new added-content is vehicles will be because of regulations, mostly related to fuel economy and safety. As you know, many countries are planning to double the FE standards by 2025, which creates a huge burden on product development processes.
The challenge is to find cost-effective approaches to meet the regulation-related requirements.
The third trend, I would like to highlight is the increasing number of program and model launches planned by OEMs.
OEMs will launch new programs or refresh current ones at an incredible rate over the next three years. According to estimates, the industry will launch 434 new global programs over the next three years. That’s 100 more programs than the previous three years.
This means as a supplier you have a huge opportunity to win these new program businesses.
For you, working closely with your upstream suppliers and OEMs is more crucial than ever before.
The implications for these automotive industry trends are many…
You might be asking these questions…
How do I improve my business profitability?
How do I improve collaboration across my business?
How do I protect my intellectual capital?
You may have considered your PLM options before, and you probably have some systems in place to vault and share your design data. But now there’s a new way forward that isn’t just about file management, but is about changing the way you work.
Now let me show you what I mean by a PLM system that can change your work life ....
Teamcenter from Siemens PLM software can help you overcome those challenges and ensure you can achieve your business needs.
We will start off by discussing ways you can boost ENGINEERING PRODUCTIVITY. We want to demonstrate how you can manage all product-related files in one system.
Then we will talk about facilitating BUSINESS-WIDE COLLABORATION. You will see how you can improve product and process visibility across your organization
Finally, we will talk about PLM deployment options and how to achieve FAST DELIVERY EXPERIENCE. We want to discuss strategies to implement PLM in your organization fast. We want to help you achieve your PLM ROI quickly.
Let’s start off by discussing ways you can boost engineering productivity by managing all product-related files in one system.
Let’s start by looking at this research from Tech-Clarity. They asked companies to self-report the amount of time they spend on non-productive engineering tasks.
We found that the study was quite revealing…
“About one-quarter of companies (26%) report wasting more than 20% of their technical time on nonproductive data management tasks.” That is more than one full day of work per week!” for every engineer!!!
Where would you consider yourself in this spectrum? If you’re like many automotive suppliers, you’re wasting a lot of valuable engineering time on non-productive data management tasks.
We think the right PLM solution can reduce non-productive engineering time significantly.
The right PLM solution can change your engineers’ work life. Consider your design engineers, for starters … think of the difference it would make for them to save time each day with less searching, fewer interruptions and faster reviews and approvals.
What would make your engineering work life better?
If you could search and find product data and collective knowledge quickly
If you could minimize interruptions and unproductive tasks of your team
If your design reviews and approvals could happen smoothly and efficiently
(Video File: Automotive_DR_DDM_R3.mp4)
0:00 – 0:30 - In this scenario, the OEM wants a redesigned Oil Filter so that the replacement range for the filter can be increased to 5000 miles. The OEM sends the RFQ to the supplier, documenting the requirements and specifications of the new Oil Filter. The sales/marketing person highlights the key item in the specification document and sends it to the design team.
0:30 – 0:45 - When specifications are documented so that it is accessible across the organizations, it leads to faster response to customer quote and ultimately generate positive impact on topline. Now organizational experience and expertise is captured in an enterprise system.
0:45 – 1:30 - The design team’s manager now receives the notification about the RFQ, she performs a quick estimation of design delivery date based on current resource load in her department. As you can see here, the supplier can make informed decision regarding delivery feasibility with a very high level of confidence.
She makes an estimate of 2 weeks design time and communicates back the information to sales and marketing.
1:30 – 1:55 - Assuming the RFQ is approved, the actual design of the Oil Filter now can begin.
Designer performs the new design of oil filter accessing all relevant information including the specifications mentioned in RFQ in familiar CAD environment – saving his time
1:55 – 2:15 - The MultiCAD capabilities of Teamcenter allows various product stakeholders to visualize design data without worrying about the native CAD system. Everything is managed in Teamcenter. Here, after the design is complete the designer sends it for review. This leads to fast and right decision making and eliminates inefficiencies and rework.
2:15 – 2:45 - Now, the designer makes the changes in the initial Oil filter design & Release it. We have seen how Teamcenter provides an enterprise system for you to manage design activities as well as product related documentation in an intuitive and completely web-based environment. This can significantly reduce engineering time and improve quality of deliverables.
From that brief demonstration, you can see how Teamcenter can help you control and share designs, keep everyone up to date with BOM visibility and access and collaborate on documents. These are just some of the benefits of PLM for your engineering team.
You can now find, reuse and share designs across your MCAD and ECAD tools. You can manage product data generated from different CAD tools and share files in JT neutral format with your OEMs and upstream auto suppliers.
You can also manage product related documentation and maintain full associativity with your product design data. This can significantly improve your efficiency in managing product change processes.
In fact, now you have PDM access directly from Word and Outlook applications and you can extend the benefits of PDM to your broader organization.
Here is an example of a customer that took control of their multi-CAD engineering environment with Teamcenter.
Ocap-branded ball joints and other steering and suspension system parts are sold in 147 countries for use in cars, tractors, trucks, vans and other vehicles.
Let’s give you an example for Ocap’s product development challenges. Ocap received a requirement from one of the auto OEM customer. They used one CAD system for core product development, while another CAD software for aftermarket product design and simulation. The result was two CAD systems and two big product families developed in parallel using different CAD authoring systems their respective data management systems, which led to rework and duplication issues.
The situation was further complicated by a new site in India with its own engineering department developing designs for OEMs and the aftermarket using different CAD software without having a product data management system. They searched for a system that could enable them to have a single, unified database for design data generated throughout the world. Also, a system that can provide the scalability to add a factory in China that was set to come online with its own data search and visualization needs. This unified database had to be accessible to all enterprise departments, including people working outside the engineering domain.
Ocap conducted a software analysis and selection process that led to the adoption of Teamcenter.
[READ QUOTE]
Mr. Jean-Jacques Tomas from Ocap says, “We considered different solutions and finally chose Teamcenter because it offered more reliable multi-CAD and multi-site capabilities. Teamcenter provides options for integrating remote sites as well as seamless interaction with CAD systems from different vendors.“
Now think about what would happen if those same PLM benefits and time savings were extended across your business. When product information is available to all stakeholders including executives/owners, sales, marketing, purchasing and manufacturing it can improve product development efficiency to a whole new level.
Let’s discuss how PLM enables enterprise-wide collaboration so that product information can be shared and accessed seamlessly.
Let’s look at this Tech-Clarity research this time. This survey shows what companies are reporting as the key benefits of streamlined design data management.
As this chart shows, ”Less time is wasted and fewer misunderstandings occur” when PLM is used for large projects involving many people. Whether it’s simplifying search, revision control, document and design access … PLM can make a difference.
PLM can improve efficiency of your whole business, for a transformation that improves the everyday tasks and processes for everyone.
How would you include people and processes beyond engineering … so everyone is working in one PLM system.
THIS IS IRRESPECTIVE OF THE SIZE OF A COMPANY.
What would make everyone’s tasks easier and improve everyone’s efficiency?
If your team members can automate processes like design reviews and engineering changes
If your design and engineering can collaborate with upstream suppliers and in many cases directly with OEMs
If your product team can manage requirements and related product documentations efficiently
If you could provide full visibility to your design/production costs so that you can accurately respond to RFQs
And if you could connect your design to your manufacturing activities, so everyone is working from the same product information
(Video File: Automotive_DR_WFandCollab_R2.mp4)
In this demonstration, we will show how stakeholders from several departments such as Manufacturing, Production Planning, Quality, Purchase, Spares and even externally customers (may be in an offline process) can collaborate. The information created and signoff actions done by various departments are all captured in an intelligent traceable way which helps to ensure accountability.
00.00 – 00:18 – You can see here that once the design is released, manufacturing gets instant notification of the new design. Robust workflow engine of Teamcenter enables standardized business process across various departments bringing more transparency & accountability in the system.
00.19 – 00:24 - Superior traceability ensures latest information is available for decision making.
00:25-00:35 – Now, released EBOM & JT can be viewed in a web client. This way the benefits of 3D data get extended to the whole organization.
00:35-00:48 - MBOM items like Raw Material, consumables can be added without modifying the released design. This reduces the overhead of managing multiple BOM’s.
00:49 - 01:06 - Using powerful search engine of Teamcenter existing parts can be re-used, like the washer here. This promotes reuse of standard parts and existing knowledge within the organization.
01:07-01:28 - Powerful reporting module of Teamcenter can generate real-time reports even from other enterprise systems like ERP & helps faster decision making. In this case, the Red mark signifies washer inventory is currently not enough.
01:29- 02:13 - So, purchase request for washer is now generated using the organizational template. Also, the JT for washer is embedded inside with intelligent geometrical details. Furthermore, using the free JT2Go viewer, design data can be shared with the supply chain by the purchase department. Multi-directional collaboration with superior technology backbone ensures optimization and standardization of business process which saves time, cost and improves quality.
02:14 - 02:24 - Finally, Manufacturing manager signs off the task advancing the enterprise workflow to production planning.
Now you’ve seen how Teamcenter can extend the benefits of PLM to your broader organization by:
automating design reviews and signoffs
track and manage costs,
and deliver designs to OEMs, upstream suppliers as well as your own manufacturing.
From design to delivery, the right PLM solution can provide visibility to all the product information to ensure that every decision is in line with OEM requirements. Wherever you need to improve efficiency and streamline processes, Teamcenter provides an intuitive, secure web access for everyone.
Here is an example of a company that improved collaboration and design data sharing across its organization.
Shanghai Yanfeng Johnson Controls Seating Co., Ltd., (SYFJC) a joint venture located in Shanghai, China, makes seating components, overhead systems and sun visors for automobiles. SYFJC’s customers include most of the major China automakers such as GM, Ford, DC, VW, Nissan, PSA and Hyundai. In addition to its Shanghai facility, SYFJC has four other locations in China. It is also part of Johnson Control Inc.’s vast Asia Pacific network that includes dozens of companies throughout Asia, Australia and New Zealand.
With a mission to continually exceed customers’ increasing expectations, SYFJC’s Technical Center took on the task of shrinking the product development cycle and lowering the costs associated with design and engineering activities. Some of the challenges they faced included the geographic distance between design and engineering teams, a data management system that did not facilitate part re-use and customer need for synchronized development. Realizing that a PLM solution would address these issues and enable a worldwide, concurrent development process, the company implemented Teamcenter.
Information is now shared electronically worldwide, linking SYFJC with customers and suppliers as well as other Johnson Controls sites in Europe, Japan and North America. The amount of time needed to search and retrieve information from the engineering data vault has dropped by 90 percent; from 10 minutes in the past to one minute today. Centralized storage has made data more secure and reduced the cost of data storage hardware. Since the adoption of Teamcenter, data accuracy has improved from 60 percent in the past to 98 percent currently.
Now that we have established what’s going on in this industry and how PLM can improve engineering productivity and streamline business-wide processes and collaboration, let’s consider what it takes to get you up and running.
In this section, I will focus on how Teamcenter provides a proven implementation methodology to get you up and running quickly.
For most automotive suppliers, whatever you’re using for PDM/PLM is not enough. By one of the estimates from BCG, only 10 percent of the capabilities built into CAD and PLM systems are currently used.
Many automotive companies struggle to realize their full PLM vision. What will it take for you to extend those benefits across your business and derive real value from your PLM investment?
With Teamcenter, the path to profitable PLM is no mystery. We have proven time and again with thousands of customers that we know what it takes to get up and running. What does that mean for you? Our experience translates into best practices and time to production in as little as two to three weeks … which makes it easier to justify the PLM investment when you’re assured of fast payback.
Today’s Teamcenter is easy to use, easy to deploy and cost effective for fast ROI.
For many automotive suppliers, the first step on the path to PLM is product data management, or PDM. By starting with a focused PDM deployment, you can get your business up and running quickly and cost-effectively.
Here is an example of what we mean by fast payback, using the example of our preconfigured product data management, or PDM, solution Teamcenter Rapid Start.
With an ROI calculator, we can show the payback period in a 15-user Investment Appraisal based on a typical Teamcenter Rapid Start deployment period of 3 weeks. You can see that the non-recurring, up-front costs include software, hardware, and consulting services … in this case, we estimate it at just under $80,000, but of course that will vary by installation depending on variables like the type of licenses and PDM capabilities required.
The recurring monthly costs for maintenance and technical support are $911. In separate calculations, we estimated that the average monthly benefit of time savings, improved productivity and efficiency for 15 users is $12,706, so you are looking at just under one year for payback of the total PDM investment to-date.
This is just one of the delivery options for Teamcenter … there are other cloud-based options that change the formula and re-balance the up-front versus recurring costs, but the bottom line is that we can deliver PDM to fit your needs quickly, and cost-effectively.
[Note to presenter: Calculations generated using SHARK tool. You can find back-up calculations to get to the average monthly benefit in the resources below.
For the complete investment appraisal, refer to:
https://sales.industrysoftware.automation.siemens.com/more_info/42792/15-user-Investment-Appraisal-/-ROI-Report-for-Teamcenter-Rapid-Start
For the complete ROI deck for Teamcenter Rapid Start, refer to:
https://sales.industrysoftware.automation.siemens.com/more_info/43442/Teamcenter-Rapid-Start-Preconfigured-PDM-Value-Justification-Customer-Facing-Presentation
Channel partners can ask their Siemens representative for access to the SHARK tool, where there are preloaded templates to create customer Investment Appraisals for Teamcenter Rapid Start.]
As you extend your PLM implementation beyond engineering, you can see the payback at the business level.
We want to cite our success at Shanghai Yanfeng Johnson Controls one more time…
SYJSC has increased its rate of part re-use from five percent previously to 25 percent today, and this has led to a reduction in development time and lowered the costs for tooling and equipment. Earlier detection of errors has reduced engineering changes and engineering costs. Overall the company estimates that these PLM advantages have resulted in a savings of US $1.5 million in phase 1.
Once you’re up and running with Teamcenter to take control of designs, documents, BOMs and processes business-wide, there’s no limit to where you can grow and extend the benefits.
The automotive industry is changing with globalization and increased environmental and safety regulations. You can be poised to change with your industry by getting on the fast track to program readiness. Now’s the time to take basic CAD data management to a new level that improves your work life, fosters business-wide collaboration, and transforms your business.
With the right PLM investment strategy, you can deliver real business impact on your program performance. You can bring your products faster, cost-effectively and with higher quality to the market.
You can finally take control of your product and process data which is becoming more complex with increasing product complexity.
You can extend PLM benefits to the extended organization including purchasing, marketing, manufacturing, service etc. who can benefit from access to real-time product information.
You also improve collaboration between your internal product development team, your customers, suppliers as well as other external entities who all can benefit from easy access to your product information.