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© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved Siemens PLM Software Siemens Answers for Increasing Customer Responsiveness © 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved Siemens PLM Software

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© 2008. Siemens Product Lifecycle Management Software Inc. All rights reservedSiemens PLM Software

Siemens Answers for Increasing Customer Responsiveness

© 2008. Siemens Product Lifecycle Management Software Inc. All rights reservedSiemens PLM Software

Page 2© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

How do we turn what customers expect intoinnovations that do more than they imagined?

Page 3© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Top Five Pressures On Engineering Organizations

Pressures ResponseProject schedules for engineering products are shortening 60%

Cost of raw goods is increasing (e.g. steel, aluminum, etc.) 33%

Development budgets for product engineering are shrinking 32%

Decreasing target product price-points driving down product cost targets 28%

Market or customer requirements demand increasingly 'smarter' products 22%

Source: Aberdeen Group, June 2008Engineering Executive’s Strategic Agenda

Today’s engineering organizations are under tremendous pressuresCustomers are demanding more capable products faster than ever before at lower and lower price-pointsEngineering budgets are shrinking while cost of goods are only going up.

Page 4© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Spotlighton... ThyssenKrupp Bilstein – Brasil

Develops components & systems for the automotive industryTeamcenterExpress, SolidEdge, and Femap with NastranAddress initiatives for:

Enhancing speed to marketDecreasing prototype costsProtecting intellectual property

“ We have chosen Siemens PLM Software products because of technology, agility, flexibility and their alignment with our mission.”

Page 5© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

How to exceed your customer’s expectations with PLMAn introduction to Velocity Series of PLM Solutions for smaller companiesExceeding customer expectations - Benefits

How do we turn what customers expect into innovations that do more than they imagined?

Agenda

Page 6© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

The Engineering Executive’s Strategic AgendaPerformance Framework

Source: Aberdeen Group, June 2008Engineering Executive’s Strategic Agenda

How to satisfy customers has stumped many, but others are excelling Best-in-Class engineering organizations are getting the right product to market on time to satisfy their customersAnd are doing it while controlling recurring product and non-recurring development costs.This results in simple success… increased revenues and profits.

Best in class Industry average Laggards

Ability to release designsto manufacturing on time

Ability to meet customeror market requirement

Ability to meet productcost targets

Ability to meet engineeringphase development costs

cj4

슬라이드 6

cj4 Need to talk about how succeeding in each of these categories really represents customer reponsiveness.chad.jackson, 2008-09-22

Page 7© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Enabling Customer ResponsivenessProduct Form and Fit: 2D or 3D CAD

Many engineering organizations are making the move to 3D modelingMany still use 2D and 3D simultaneously so they can leverage 2D data fullyThe goal is to digitally assess a products form and fit and thereby avoid a number of unnecessary changes late in the development process saving time and money

Source: Aberdeen Group, May 2008Best Practices for Migrating from 2D to 3D CAD

Best in class Industry average Laggards

2D CAD exclusively Combination of 2D and 3D CAD 3D CAD exclusively

Page 8© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Enabling Customer ResponsivenessAssessing Product Function: Leveraging 3D CAE

• Going beyond a product’s form and fit and looking at it’s function, requires definitive steps to address performance issues up front Top performers look deeper at how form and fit balances against the impact that engineering decisions have on raw goods costs as well as other parametersTop performers strike the right balance of meeting customer requirements with product performance and costs.

Source: Aberdeen Group, June 2008Engineering Executive’s Strategic Agenda

Best in class Industry average Laggards

Get products performance‘right the first time’ in design phase

Asses structural performanceor product

Analyze raw material costswithin product

Optimize products tosatisfy requirements

Page 9© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Source: Aberdeen Group, June 2007Nimble Product Design: CAD/CAM/CAE for the Small to Mid-Sized Enterprise

Top performers start early and leverage 3D digital designs• They assess manufacturability early to lower the recurring costs and manufacturing cycles

timesThey leverage their existing 3D design assets to create NC toolpaths to shorten time to productionOverall, this means they can deliver products to market at lower price-points and still be profitable

Enabling Customer ResponsivenessAccelerated Production: 3D Manufacturing

Best in class Industry average Laggards

Product manufacturabilityassessment as a formal step in product development

Shop floor machine operatorsprovide feedback and suggestionson product manufacturability

CAM application embeddedwithin CAD application

Page 10© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Enabling Customer ResponsivenessStreamlining Processes: PDM Support

Best‐in‐Class Industry Average Laggard

New product development project execution

89% 61% 45%

Centralized access to product data 89% 79% 64%

Design reuse 78% 53% 33%

Communication / handoffs between engineering and manufacturing

78% 58% 55%

Parallel design (multiple design team geographically disbursed)

75% 50% 40%

Change management process 67% 68% 55%

Real time visibility to cost 44% 26% 9%

Source: Aberdeen Group, July 2008The Best Kept Secret of 

Top SMB Product Developers? Finding the Shortest Path to PLM Value

• Top product developers also use a variety of PDM capabilities to control and manage their product development process. • From centralized access to a single source of truth, to handoffs between organizations, to managing change, to real time visibility into cost. • These approaches streamline the overall process so products aredelivered to customers and markets on time

Page 11© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Best-in-class Industry average Laggard

Timeframe from design concept to release to manufacturing 19.8 weeks 29.4 weeks 36.5 weeks

Number of engineering change orders post design release 6.4 9.5 11.3

Number of physical prototypes 5.0 7.2 7.7

Given best-in-class hit their targets more frequentlyTop performers also have dramatically shorter times to design release,

fewer change orders and physical prototypes. Ultimately get higher quality products to the market much faster than their

peers and competitors.

Enabling Customer ResponsivenessThe Quantified Performance Difference

Source: Aberdeen Group, May 2008Best Practices for Migrating from 2D to 3D CAD

Page 12© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Enabling Customer ResponsivenessSummary of Top Performer Characteristics

Customer are demanding better products, in less time, at lower prices; yet engineering organizations have limited resources to react

Source: Aberdeen Group, July 2008The Best Kept Secret of Top SMB Product Developers? Finding the Shortest Path to PLM Value

Top performers are more likely to use 3D CAD, but many use 2D and 3D in combination or as a transition

Top performers digitally assess performance and cost while optimizing the balance between the two using CAE technology

Top performers leverage a wide variety of PDM capabilities to streamline the overall product development process

Top performers get to design release in almost 1/2 time, execute 1/2 the change orders and build 2.7 fewer prototypes than laggards

In the end, this means top performers deliver the right products to market on time at higher profit margins than their peers and competitors

© 2008. Siemens Product Lifecycle Management Software Inc. All rights reservedSiemens PLM Software

PLM Solutions for Smaller Companies

© 2008. Siemens Product Lifecycle Management Software Inc. All rights reservedSiemens PLM Software

Page 14© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

What Our Customers Tell Us Aboutthe Mid-market

Characteristics

Small IT staff3D data explosionLimited documented processesLimited Resources for Re-EngineeringLimited training resourcesMinimize riskAll with a low total cost of ownership

Page 15© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Changing the Game in Mid-market

Easy to buyInstallLearnUseManage

PLM solutions for smaller companies need to be:

Standalone and integrated

Pre-configured, best practices

Easy to buy (configure and sell)

Easy to deploy (minimal customization)

Windows only

Growth path for advanced capabilities

Siemens’ PLM software for smaller companies will be:

Page 16© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Velocity SeriesDelivers Leading PLM solutions for Small Businesses

Modular, yet integrated solutionsPreconfigured with industry best practices Easy to deploy and use Native MicrosoftLow total cost of ownershipScalable to the full range of Siemens PLM Software solutions

Backed by Siemens PLM Software, the leader in PLM

Page 17© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Velocity SeriesMeeting the Needs of the Mid-Market

Addressing: Small IT staffMicrosoft nativeStandardized processesSimplified implementations

Addressing: 3D data explosionWorld-class data managementHybrid 2D/3D approach to design

Addressing: Limited training resourcesIntuitive U/I for Microsoft WindowsLearn as you go

Page 18© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Velocity SeriesMeeting the Needs of the Mid-Market

Addressing: Limited Documented Processes Captured knowledge from a variety of world class manufacturers Pre-defined industry best practices to the whole portfolioProcess specific applications for designPre-configured work flows for data managementAnalysis wizard for CAE

Addressing: Need to minimize risk and disruptionFully scalable solutions protects your investmentLogical upgrade paths provide data protectionFrom the leader in PLM, Siemens

Page 19© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Velocity SeriesMeeting the Needs of the Mid-Market

Addressing: Low total cost of ownershipDriven by:

Standardized best practicesFast deploymentMinimal IT infrastructureMinimal Training

In addition to:Competitive initial purchase costReasonable maintenance

© 2008. Siemens Product Lifecycle Management Software Inc. All rights reservedSiemens PLM Software

Product Lifecycle Management (PLM)PLM Solutions for Smaller Businesses

Velocity Series - A portfolio of pre-configured and easy to deploy, design, manufacturing and data management solutions specifically designed for the needs of the Mid-Market

Page 21© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Teamcenter Express

Clear Mission

“CIMdata recommends that all small to medium-sized discrete manufacturing companies in the market for an enterprise class cPDm solution seriously consider Teamcenter Express.”

Transforming the process of innovation by applying preconfigured best practices to everyday engineering tasks and processes

Proven!

Simple & fast to install, set-up, operate, support Preconfigured best practices Optimized around Microsoft standardsEntry point into Teamcenter digital lifecycle management

An easy-to-use, preconfigured and easy-to-deploy collaborative product data management (cPDM) solution

Page 22© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Femap

High performance Finite Element Analysis (FEA) modeling

Windows-native ease of useCAD independentSolver independent

With a high level NASTRAN integration

When engineers need to get real results, accurately and competently, they use Femap. It’s industrial-strength and stable. The work you do in pre-processing determines the accuracy of your results. “Femap is the program I trust for accuracy and the one I trust for rock-solid functionality.”George Laird, founder, Predictive Engineering

Proven!

Page 23© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

CAM Express

High-speed machining support5-axis & multi-function machine tool programmingFeature-based machiningModular, CAD-neutral packages pre-configured for industry best practices

“CAM capability that has heretofore been available only to major manufacturers, and at a low cost of ownership….CAM Express users will receive considerable value for their investment.”

Alan Christman, CIMdata

Proven!

Maximize investment in advanced machine tools with flexible NC programming solutions

Now with Synchronous Technology

Page 24© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Solid Edge

Clear Advantage Proven!

“We are increasing our product line and designing more variations…developing new applications and pump technology faster…while maintaining very high quality standards. Faster time to market without sacrificing quality. That’s what Solid Edge delivered.”- The Fountainhead Group

Solid Edge helps improve top line revenue growthSolid Edge helps lower costs as a competitive weapon

Solid Edge eases complex product design and enables customers to transform their process of innovation through:

Scalable design managementFocus on 2D to 3D transitionPart & assembly designProcess & industry applicationsProduction draftingStream XP usabilityInteroperability

Now with Synchronous Technology

Page 25© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Synchronous Technology versus Direct EditingHistory-free versus History

Synchronous TechnologyOperations are made directly to the model, edits not recordedEdits made on the geometry eliminating multiple edit points

Direct EditingHistory-based adding compute cycles and features that can failProvides 2 features to edit but only the last one matters

Page 26© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Synchronous Technology versus Direct EditingIntent preservation versus loss of intent

Synchronous TechnologySynchronous Solve maintains locked 3D Driving DimensionsLive Rules finds and maintains geometric conditions (tangent, concentric, symmetric, more)

Direct EditingHistory prevents keeping existing dimensional valuesHistory will not allow children to manipulate parent geometry

Page 27© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Solid Edge Direction

2009 2010

ST2 ST3

ST2ST Modeling

ST-style Sheet MetalSection-based Editing

Data ManagementInsight on Sharepoint3SEEC Support 64 Bit NativeImproved SEEC PerformanceSEEC Support for SmartCodes

General ImprovementsAssembly Feature PerformanceExpanded FEA Capability

Page 28© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

2009 Velocity Series Product Plan

Deliverables & Timelines1) CAM X 6.0.1: Announce Sept, Release Sept2) TcX 4.1: Announce Nov, Release Dec 3) SE w/ST2: Announce April, Release June 4) TcX 4.X: Announce May, Release June5) Femap 10.1: Announce June, Release June6) CAMX 7.0: Announce July, Release Sept

Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sept

42 3 5 61

© 2008. Siemens Product Lifecycle Management Software Inc. All rights reservedSiemens PLM Software

Exceeding Customer Expectations Benefits

© 2008. Siemens Product Lifecycle Management Software Inc. All rights reservedSiemens PLM Software

© 2008. Siemens Product Lifecycle Management Software Inc. All rights reservedSiemens PLM Software

Velocity SeriesDelivers Leading PLM solutions for Small Businesses

PLM for mid-sized manufacturersModular, yet integrated solutionsPreconfigured with industry best practices Easy to deploy and use Native MicrosoftLow total cost of ownershipScalable to the full range of Siemens PLM Software solutionsBacked by Siemens PLM Software, the leader in PLM

Page 31© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Focus on Value & ROI in every activity and deliverable

INNOVATION PROCESS CURVE

Siemens PLM Software helps transform your innovation process to increase your customer responsiveness…

Accelerated launchReduced build costsIncreased profitable growthExtended lifecycle returnsBest practice reuse

© 2008. Siemens Product Lifecycle Management Software Inc. All rights reservedSiemens PLM Software

Enabling Customer Responsiveness PLM for Mid-Market Companies is Becoming Pervasive

PLM in Mid-Market projected to grow at ~12 -15% ($4.8B to $8.5B)

Mid-Market growing faster than overall PLM Market (12-15% vs 8%)

Mid-Market is ~30% of overall PLM Market

Going to over 50% by 2011

Total Mid-market PLM end-user revenue companies under $1B

* Average CIMdata and ARC Analysis projections•Total revenue = SW Lisc+Maint+ Services

$M

© 2008. Siemens Product Lifecycle Management Software Inc. All rights reservedSiemens PLM Software

Enabling Customer Responsiveness PLM Perceived as a MUST in a Soft Economy

Drives innovationAccelerates top line revenueIncreases competitivenessImproves qualityReduces costs

Page 34© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Velocity Series Momentum

2007 mid-market growth

2006 - 2007 Mid-market CAD grew at 8 -10%2006 - 2007 Mid-market PLM grew at 14%

Faster than forecasted2006 - 2007 Velocity Series growth approx 2X market

Solid Edge has averaged double digit growth

Page 35© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Spotlight on... PARI - India

PARI Ltd. is a global provider of robotics and automation solutions

Solid Edge, Femap, Teamcenter Express2D to 3D migration

Faster design cycles Increased re-use of design informationBetter visualization through solid modeling, combined with the ability to do kinematics studies and finite element analysis, and increased design reuse, has reduced design errors <30%

2005 Solid Edge with Femap and NX Nastran

December 2007 added 150 seats of Teamcenter Express

“After our experience with Siemens PLM Software, I’m extremely bullish about the future of Siemens PLM Software in India.”

Mangesh Kale, Managing Director, PARI Ltd.

Page 36© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Spotlight On EVERDIGM Co., - Korea

Manufacturing construction machinery, fire & specialty vehicles• 2007 Sales of $148M• Exporting to 60Conturies

Objectives:•Improve Project Efficiency•Guarantee Quality•Address Increasing Product Complexity•Manage Data Explosion

Solution – Phased Velocity Series PLM Implementation• Step 1: Pilot 1 Project Team

• Solid Edge & Femap (2007)• Step 2: Extension to All R&D

• Solid Edge & Femap (2008)• Step 3: cPDM

• Teamcenter Express (2009)

Benefits:Shorten project time1) Prototype Design: 15%2) Design for mass production: 30%3) Engineering change process: 50%Reduced Trial and Service CostsImproved Product Quality

Page 37© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Velocity SeriesExceeding Customer Expectations

Miven Machine Tool: “Solid Edge is helping us meet customers’ requirements in terms of

quality, delivery and product performance.”

Angelus Sanitary Can: “We wanted the productivity gains and the superior visualization that3D offers so we could continue to meet our customers’ requests.”

AESSEAL: “By enabling customers and potential customers to see animations and 3D models of what is actually going on inside the seals, we can provide much better insight into what people are buying and produce more persuasive sales message.”

Velocity SeriesExceeding Customer Expectations

Page 38© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Velocity SeriesExceeding Customer Expectations

RPC Technologies: “more and more customers are requiring FEA reports as part of the contractual agreement. It’s a great marketing tool and design optimization is a way of differentiating ourselves from the competition.”

A.W.Chesterton“Using Teamcenter Express … the company expects to be able to more quickly respond to customer queries, thereby increasing customersatisfaction.”

Velocity SeriesExceeding Customer Expectations

Page 39© 2008. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

How do we turn what customers expect intoinnovations that do more than they imagined?

The Siemens answer: PLM Software for small businesses to improve customer responsiveness.