zws webinar september 2012 operational excellence series v14

Welcome to the Operational Excellence Webinar

Zero Wait-State Confidential 1

AGENDA•The 3 Business Disciplines•The Pro Nova Story•Learn more

Operational Excellence

• Operational Excellence is a philosophy of organizational leadership that stresses the application of a variety of principles, systems, and tools toward the sustainable improvement of key performance metrics.


http://en.wikipedia.org/wiki/Philosophy

http://en.wikipedia.org/wiki/Performance_metric

http://en.wikipedia.org/wiki/Performance_metric

The Current State of Operations…

• Many SME companies do not have the infrastructure to become “Operationally Excellent”. Until they do, the best they can hope for is mediocrity.

• In today’s competitive environment, who can afford to be mediocre?


Control what you can…..

Operational Excellence•High performance companies take this very seriously. And unlike many issues that affect business performance;

– Competition– the global economy, currencies, – material costs, energy costs…..

– Operations is completely under your control.


Operational Excellence - three main business disciplines are involved

• ERP – Enterprise Resource Planning• CRM – Customer Relationship Management• PLM – Product Lifecycle Management

– Let’s look at all three disciplines in terms of each disciplines importance/value over a product lifecyle….


How did Team USA get to the finish line ahead of all others?


Team USA focused on the baton hand off in practice- remember 2008?


Most companies “As Is” Product data environment….inside the Silos

• Multiple product records stored in Multiple silos – – Tough to hand off– Time consuming to find things– Not operationally

excellent


Silos? What Silos?

The Hand off between systems..

CRM – The Customer Records

PLM – The Product Records

ERP – The Business Transactions

What kind of Baton hand off skills exists now at your company?


A PLM Product Structure - the “As Designed” BoM items

Mechanical Parts

Electrical Parts

Non-modeled Parts & Docs * Packaging * Labels * Build Specs * etc

Associated AML Link to Mfg and Vendor PNs for purchased parts


A Large Company with Gold Level Operational Excellence

• ERP


• CRM

• PLM What about PLM?

I have to have accounting……

We have got to keep track of customers…

Apple Delivers Gold medal business performance with….


Apple Delivers Gold medal business performance with Agile PLM

• Apple produces a steady stream of new products that generate revenue and attract new customers - They have new product VELOCITY…

• Those Products drive ERP financials and CRM customers- and they are Platforms…

• Those products are managed and Platform-ized in Agile PLM


Frequently Asked Questions

• Isn’t PLM just for the Big companies? • Can small companies strive to become

“operationally excellent?” • Can small companies afford PLM?


Pro Nova Solutions

• Why did Pro Nova Solutions – a start up company with no revenue, choose to start with Agile PLM?

Let’s hear their story………


Who is ProNova Solutions?

ProNova Solutions is a medical device start-up company developing the next generation proton therapy system.


How did we get here?

Q1: How do we manage our 3D-CAD files?Q2: How will we manage change control?Q3: Now how do we connect to our ERP

system?

The Realization: We should think long term about the real problem of product lifecycle management and scalability.


Why did we choose Agile PLM?

Key Decision Criteria– A highly configurable solution with intuitive

structures and workflows– An ITEM based system for passing BOM

information to an ITEM based mid-range ERP.– An FDA certifiable solution – proven industry

footprint– A full suite of modules to support our current and

future needs


ProNova Solutions

Key themes– Agile PLM right sized for the Business Model– ProNova commitment: Do it right from the

beginning– Minimize the toolset - PLM to ERP connection with

1 tool instead of 2– Collaborative design - Manufacturing, Engineering

and IT working together– “Together, Let’s build the best PLM implementation

on the planet.”


ProNova Solutions

• Medical Device Company– 10 Agile PC Licenses– 5 Agile EC Licenses for SolidWorks CAD– Installation/implementation/training from ZWS

• Total Investment - $108k

• Time to Value – Managing Solid Works CAD data with Agile EC and

publishing Bom’s in 6 weeks


Now let’s show you an Agile PLM Demo


As Is – Silos of Product data Possible To Be – Let’s see an Agile PLM demo

Copyright © 2012, Oracle and/or its affiliates. All rights reserved.23

Enabling Business Performance Improvements

The Value of PLM

Benefits

Revenue

Cost

On Time/Budget

Time to Volume

Customer Service

Scrap and Rework

Material Costs

Labor Efficiency

RiskCompliance

30% to 60%

15% to 50%

10% to 30%

1% to 5%

10% to 30%

Improved

Improved

Contract Penalties

25% to 50%

Quality Improved

ImprovementImprovement

Paul Peck – ZWS Chairman

• Currently Zero Wait State Chairman• Former VP of Operations for several

companies using AGILE PLM

• Linked in Profile: http://www.linkedin.com/in/paulpeck


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1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2011 Cost Profile

2012 Cost Profile

Mechanical & PCB Fab - Good Volume Impact - Design-for-Cost, DFM - Tooling

Hi $ Electro/Optic - Some Volume Impact - Second Sourcing - Change Technology

Low $ Electronic - Little Volume Impact - Industry Pricing

Contract Mfg. Value Add - Good Volume Impact - Design-for-Cost, DFM/DFT - International Sourcing

Use Agile PLM to ANALYZE PRODUCT COST and COST TRENDS

Spot Component Trends, Monitor End-of-Life, Forecast Technology Adoption

Different Approaches

Depending onCost Category

“PIP” Adapter

BoMs - Parent P/N - Component P/N - Quantity PerItems - Part Number - Revision - Description

PLMPLM

PLMPLM

PLMPLM

PLMERP

Accts. ReceivableAccts. PayablePurchase Orders

StockroomsSuppliersSales Orders

CustomersBoMs

PLMPLM

PLM

DocumentsManufacturers

ERP

Items

ERP(any)

G/L Accts.

PLM

Items

Only Upon ECO Release

PLM Can Be Deployed

Independently of ERP:

- One-Way Flow of Data - Well Defined Data Set - Agnostic as to ERP Destination - Frequent (or Real Time) Updates

Off-the-Shelf(ie: Sierra Atlantic) orInternally Developed

(AgileProduct Integration Pack)

Bi-Di if Needed

BoMs

PDM-to-ERP Interface Application(s)

SUPPORT ACCELERATED ERP IMPLEMENTATION

Make “Big Bang” ERP Implementations Possible, and Support ERP Migrations…etc.

Operational Excellence - Business Processes for Product Development - Enabled by PLM

Design Release Process

Change Process

Quality Process


Connection of PLM BoM Items to ERP BoM Items

Program and Portfolio Analysis

Costing Analysis

Walk before you run…..

• Walking– Get Educated on PLM from the ZWS web site –

www.zerowait-state.com• Jogging

– 3 Discovery service options• A quick conference call to define your “As Is” , the negative

business consequences and some possible positive business outcomes from a “To Be”

• On Site conference room white board mapping of the above with your executives

• On Site Strategic Value Assessment with ZWS and Oracle


Zero Wait State

• Contact ZWS – We want to help take your company to Gold Level Operational Excellence with PLM.

• www.zerowait-state.com• Steve Ammann , Director of Business Development

• 503-706-5074• [email protected]


zws webinar september 2012 operational excellence series v14

Technology

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agile plm apple

current state of operations