Secrets to Maximizing Your Supply Chain Strategy

AGENDA

Vivien Roduit CFO, Selectron Systems AG

Michael D. Keer Founder & CEO, Product Realization Group

Steve Chalgren VP Product Management & Strategy, Arena Solutions

WTG Moderator Q&A MC with speakers

Vivien Roduit Chief Financial Officer

About Vivien Roduit

• Vivien’s first mission at Selectron was to in-source the IT Department after a successful Management Buy-out.

• During this process, Vivien was confronted with the challenging issue to find the right Product-Lifecycle Management Tool for the organization.

• He assisted the engineers to structure their requirements and select the right tool to promote industry best practices and collaborate through the whole value chain

About Selectron Systems AG

• The specialist for train automation http://www.selectron.ch

Based in Lyss, Switzerland

Worldwide operations: More than 5000 vehicles successfully in service

100 employees, 80% engineers/technicians

Production is outsourced to key suppliers

Some R&D are done with key partners

2009: 3 main issues to face in our Supply Chain

Las Vegas – Monorail - BOMBARDIER

• Missed communication Wasted Money

o Solution: Effective collaboration with structured processes and tools

• Unstructured information Wasted time

o Solution: Structured information prepared for effective product maintenance

• Long term availability needed High maintenance costs

o Solution: Long term availability management

One single source of information for ALL

• Everyone inside and outside the company has access to the same data at the same time

Key points: o Information needs to be safeo No compromise allowedo Best practices implemented in the program

Key benefits:o Better communicationo Know-How partly stored in the program

Tips:o Don’t build it yourself

Europe wide – EMU KISS double deck - STADLER

Purchase and R&D work hand-in-hand from Design to Cost

• Information of R&D and Purchase are shared: Minimize cost of change Limit cost of opportunity Clear information:

o Decrease costso Improve product quality

Shenzhen Metro Line 4 in China - CSR

Lessons Learned: There is no trade-off

One single source of information allows effective collaboration through out the supply chain, quicker product maintenance and decrease in NPD costs

Purchase department needs to be involved early on in the process

Don‘t reinvent the wheel

Use pre-customized solutions with industry best practices

Michael Keer Founder & CEO

About Michael Keer

• Over 20 years of High Technology business leadership

experience in both Original Equipment Manufacturer

(OEM) Contract Manufacturing (CM) environments

• As founder of the Product Realization Group (PRG), Michael created the end-to-end outsourced services model that supports high-tech companies bring new product to market

• Prior to the PRG, Michael was the CEO of SofTEQ, an Enterprise Product Lifecycle Management (PLM) services company. Prior to SofTEQ, Michael was Director of Operations for Paramit Corporation, an Electronic Manufacturing Service provider

New Product Introduction (NPI) - Challenges and Best Practices…how to reduce NPI risk, share real world examples

About PRG

• Product Realization Group provides New Product Introduction training, consulting, and execution services for high technology businesses.

• PRG enables rapid and cost effective introduction of products to the market, regulatory compliance, manufacturing, service, and lifecycle support.

• Currently delivering services to over 500 high-tech clients (aggregate).

Where does NPI Fit?

A subset of the product lifecycle, which spans concept to end of life, NPI's focus is on a product's beta, pilot, and general availability (GA) stages.

Why is NPI Important?

Product Realization As envisioned by the designers…

Product Realization with a poor NPI process…

Why is NPI Important?

New Product IntroductionGoals

New Product Introduction Business Challenges

• Resource Availability and Expertise: Internal resources are not always available to meet NPI

demands.

• Global Footprint: Complexities of managing customers and supply chain

(incl. design houses) around the globe end-to-end data management.

• NPI Management: Internal resources often have limited bandwidth to

integrate and manage design and supply chain partners effectively.

New Product Introduction Common Pitfalls

• Unrealistic timeframes for development, testing, and transfer to manufacturing

• Not controlling safety, IP, and / or regulatory compliance risks

• Last minute changes in product features and impact

• Silo engineering with manual data management

New Product Introduction 7 Best Practices

1. Use Concurrent Engineering

• Assign experienced NPI project manager

• Assemble cross-functional team

• Follow structured phase-gate process

2. Mitigate Risks

• Focus on basic product requirements / features

• Perform feasibility studies early

3. Employ Design for Excellence (DFX)

• Leverage during key transition points

• Concept Eng. Design Production

4. Rapid Prototyping and Accelerated life testing

• Leverage additive manufacturing techniques

• Perform Highly Accelerated Life Testing (HALT)

5. Adhere to Compliance Requirements

• Agency (FDA, UL, CE, etc.)

• Environmental (RoHS, REACH, WEEE, etc.)

6. Deploy scalable business systems

• Implement to support smooth ramp

• Centralize data early to improve designs and communications

New Product Introduction 7 Best Practices

7. Learn from Prototype and Pilot Builds

• Costs escalate rapidly through NPI

• Incorporate design changes before ramping

Steve ChalgrenVP Product Management & Strategy

About Steve Chalgren

• Recognized as one of the “Top 100 people influencing electronics manufacturing services” (EMS) by VentureOutsource

• As Vice President of Product Management & Strategy, Steve is responsible for setting product strategy, charting the product roadmap and leading the Arena product team

• Prior to Arena, Steve was a Director of Product Strategy at Oracle, where he led a team to extend Oracle’s PLM footprint. Before working in enterprise software, Steve spent a decade in manufacturing supply chain operations.

About Arena Solutions

• Invented Cloud PLM over a decade ago

• Headquartered in San Francisco, California, USA

• Largest Supply Chain community in the world

• Over 70,000 global BOMControl users, 2,000,000

change orders, 6,000,000 design files, & 20,000,000 item records

• Built by manufacturers for manufacturers. Arena offers solutions for managing

your; bill of materials (BOM), parts lists, change orders & other key processes in

your product lifecycle

• Arena helps manufacturing and engineering teams. We accelerate product

innovation and reduce time to market by managing the product throughout the

product lifecycle and across the global supply chain

Requirements for Manufacturing Supply Chain Excellence

• Deliver products High quality On-time delivery The right quantities At the lowest possible cost

• Supply chain of excellence Requires product lifecycle management Collaborative access 24/7 anywhere in the world Secure Needs vary at different product lifecycles

• Need a system that will scale with you (up or down)

How do you Securely Grow your Supply Chain?

• Look at your collaboration processes

• Look at the logistics of product data movements

• Map out your security

• Find the weak spots

• Shoot for quick wins

• Remember we live in a real world

Three Goals of Implementing Product Lifecycle Management for your Supply Chain

• Solve Problems with your entire supply chain

• Electronic approvals

• Easy Access

• Solve Problems with your entire supply chain

• Electronic approvals

• Easy Access

• Protect your IP!

• Users should only see what they need to see

• Easy to manage

• Protect your IP!

• Users should only see what they need to see

• Easy to manage

• 24/7 availability

• Fast access to data: single click approvals

• Easy to learn and use

• 24/7 availability

• Fast access to data: single click approvals

• Easy to learn and use

Collaboration Security Speed

Typical Problems You May Find

• Email or regular phone calls

• Problems partners discover are not always communicated

• Product changes are sent inconsistently

• Forward visibility into product changes is inconsistent

• Supplier Access to Product Data is via email/FTP package a Document Control Manager builds manually

• Lots of ad-hoc processes

• Quality issues pile up

• Email or regular phone calls

• Problems partners discover are not always communicated

• Product changes are sent inconsistently

• Forward visibility into product changes is inconsistent

• Supplier Access to Product Data is via email/FTP package a Document Control Manager builds manually

• Lots of ad-hoc processes

• Quality issues pile up

• Email

• FTP

• VPN access for suppliers

• Limited / difficult access audit trail

• Difficult to manage over time enables suppliers to have access to designs and plans unrelated to their parts

• Disconnected data

• Product data easily stolen

• Email

• FTP

• VPN access for suppliers

• Limited / difficult access audit trail

• Difficult to manage over time enables suppliers to have access to designs and plans unrelated to their parts

• Disconnected data

• Product data easily stolen

• Email build and change packages take time to create.

• Need to decide where to send it – sits on desk

• Email build and change packages take time to unpack and understand

• Changes require the above loop to repeat

• Frequent ad hoc requests for information go unanswered until the office opens the next day

• Exporting the latest BOM requires engineering assistance

• Long delays due documentation

• Email build and change packages take time to create.

• Need to decide where to send it – sits on desk

• Email build and change packages take time to unpack and understand

• Changes require the above loop to repeat

• Frequent ad hoc requests for information go unanswered until the office opens the next day

• Exporting the latest BOM requires engineering assistance

• Long delays due documentation

Collaboration Security Speed

Typical Problems You May Find

• Email or regular phone calls• Problems partners discover

are not always communicated• Product changes are sent

inconsistently• Forward visibility into product

changes is inconsistent• Supplier Access to Product

Data is via email/FTP package a Document Control Manager builds manually

• Lots of ad-hoc processes• Quality issues pile up

• Email or regular phone calls• Problems partners discover

are not always communicated• Product changes are sent

inconsistently• Forward visibility into product

changes is inconsistent• Supplier Access to Product

Data is via email/FTP package a Document Control Manager builds manually

• Lots of ad-hoc processes• Quality issues pile up

• Email• FTP• VPN access for suppliers• Limited / difficult access audit

trail• Difficult to manage over time

enables suppliers to have access to designs and plans unrelated to their parts

• Disconnected data• Product data easily stolen

• Email• FTP• VPN access for suppliers• Limited / difficult access audit

trail• Difficult to manage over time

enables suppliers to have access to designs and plans unrelated to their parts

• Disconnected data• Product data easily stolen

• Email build and change packages take time to create.

• Need to decide where to send it – sits on desk

• Email build and change packages take time to unpack and understand

• Changes require the above loop to repeat

• Frequent ad hoc requests for information go unanswered until the office opens the next day

• Exporting the latest BOM requires engineering assistance

• Long delays due documentation

• Email build and change packages take time to create.

• Need to decide where to send it – sits on desk

• Email build and change packages take time to unpack and understand

• Changes require the above loop to repeat

• Frequent ad hoc requests for information go unanswered until the office opens the next day

• Exporting the latest BOM requires engineering assistance

• Long delays due documentation

Collaboration Security Speed

Typical Supply Chain Improvements with ProductLifecycle Management

• Supply Chain are members of the change control (ECO Approval) board

• Partners can initiate the change process (ECR / quality issues)

• Product changes are sent in a consistent, easy to read format

• Forward visibility in to product changes is routine

• Supplier Access to Product Data is the PLM system 24/7

• Partners' manufacturing knowledge is leveraged

• Supply Chain are members of the change control (ECO Approval) board

• Partners can initiate the change process (ECR / quality issues)

• Product changes are sent in a consistent, easy to read format

• Forward visibility in to product changes is routine

• Supplier Access to Product Data is the PLM system 24/7

• Partners' manufacturing knowledge is leveraged

• Intellectual Property is controlled through PLM system

• Suppliers and employees can only access designs and change orders they need to see

• Access is controlled via easy to use Admin console

• No firewall issues

• Intellectual Property is controlled through PLM system

• Suppliers and employees can only access designs and change orders they need to see

• Access is controlled via easy to use Admin console

• No firewall issues

• Self service

• 24/7 access to data

• Ad hoc requests for information are served seamlessly

• Build and change packages are easy to build and read

• Approvals are online

• ECO – engineering change order releases are instantly available

• Self service

• 24/7 access to data

• Ad hoc requests for information are served seamlessly

• Build and change packages are easy to build and read

• Approvals are online

• ECO – engineering change order releases are instantly available

Collaboration Security Speed

Typical Supply Chain Improvements with Product Lifecycle Management

• Supply Chain are members of the change control (ECO Approval) board

• Partners can initiate the change process (ECR / quality issues)

• Product changes are sent in a consistent, easy to read format

• Forward visibility in to product changes is routine

• Supplier Access to Product Data is the PLM system 24/7

• Partners' manufacturing knowledge is leveraged

• Supply Chain are members of the change control (ECO Approval) board

• Partners can initiate the change process (ECR / quality issues)

• Product changes are sent in a consistent, easy to read format

• Forward visibility in to product changes is routine

• Supplier Access to Product Data is the PLM system 24/7

• Partners' manufacturing knowledge is leveraged

• Intellectual Property is controlled through PLM system

• Suppliers and employees can only access designs and change orders they need to see

• Access is controlled via easy to use Admin console

• No firewall issues

• Intellectual Property is controlled through PLM system

• Suppliers and employees can only access designs and change orders they need to see

• Access is controlled via easy to use Admin console

• No firewall issues

• Self service

• 24/7 access to data

• Ad hoc requests for information are served seamlessly

• Build and change packages are easy to build and read

• Approvals are online

• ECO – engineering change order releases are instantly available

• Self service

• 24/7 access to data

• Ad hoc requests for information are served seamlessly

• Build and change packages are easy to build and read

• Approvals are online

• ECO – engineering change order releases are instantly available

Collaboration Security Speed

Typical Supply Chain Benefits with Product Lifecycle Management

• Faster to market

• Faster cost reductions = higher profit margins

• Faster & lower cost product change order implementations

• Less scrap and rework

POLL Questions

Poll Question 1:

Do you currently use a PLM Solution? a) Yes b) No c) Not sure

POLL Questions

Poll Question 2:

Are you using spreadsheets to manage your BOMs? a) Yes b) No

POLL Questions

Poll Question 3:

How many products do you launch in a year? a) 0-2 b) 3-5 c) 6-10 d) More than 10

POLL Questions

Poll Question 4:

Do you outsource your manufacturing? a) Yes b) No

www.arenasolutions.com

866.937.1438

Questions?