“the most comprehensive product costing solution in the industry.” · 2016-10-05 · product...

“The most comprehensive productcosting solution in the industry.”

T H E L E A D E R I N H I G H - T E C H P R O D U C T C O S T I N G S I N C E 1 9 9 3

www.polydyne.com

PolyDyne Software Overview

PolyDyne Software develops, markets and sells business applications that are used for the product costing and quoting processes. With an intense dedication to addressing specific supply chain needs of the high tech, defense, aerospace and communications industries, PolyDyne has an impeccable reputation for innovation and excellence. Many advancements in product costing and strategic sourcing that have become industry best practices were pioneered by PolyDyne.

Since 1993 PolyDyne has focused its efforts on solving the most complex product costing challenges faced by the world’s leading companies.

Our organization is comprised of hard working professionals with extensive backgrounds in software, procurement and manufacturing. As evidenced by our longstanding customer relationships, our team holds a strong commitment to providing the highest level of satisfaction possible to each of our customers.

We make life simpler for OEMs that send RFQs to component suppliers and to outsource EMS providers.

Accurately accounting for product costs in areas such as material, labor, overhead, and non recurring charges, is no easy task. By using an application specifically designed to address these complexities, the rewards are significant. On average, PolyDyne’s customers have:

“PolyDyne’s software saves significant time by eliminating all of the manual work associated with the quoting process. We source over 500,000 ABC components and 400 assemblies. The software allows us to consolidate global demand giving us leverage over our cost negotiations.”

SVP, Operations Storage Systems Manufacturer

Increased productivity by at least 30% ï

Saved an average of 5 - 9% on material costs ï

Reduced cycle times from months to daysï

Select PolyDyne Customers

Fortune 100CustomerBase

Installed in20 countries

AnnualSourcingTransactions$400B US

100+Customers

Incorporated1993

Sustained Growth Since 1993

www.polydyne.com

Why ?

Because OEMs typically respond “yes” to these questions:

Are important costs, quotes, and proposal records scattered ï about in different systems and spreadsheets?

Do you struggle with collecting enterprise-wide demand and ï pricing records to improve corporate leverage?

Do you need an easier way to spot market price ï erosions, capture lower costs early in the cycle and maximize cost savings?

Does it take so long to complete a commodity ï negotiation cycle that the market pricing has changed by the time you’ve finished?

Do you lose productivity by exporting data out of ERP & ï PDM to massage in complicated spreadsheets for your sourcing needs?

Are suppliers quoting in different formats causing you to ï reformat for analysis and comparisons?

Are you “just getting by” with reporting that is subpar because ï it’s too troublesome to change?

Are your supplier relationships and buying power shifting and ï to your subcontractors?

Are you unable to find or track historical trend analysis?ï

Are you unsure if the pricing on a quote is competitive?ï

Are you uncertain if your financial standards are auditable ï and justifiable?

DesignWin addresses these procurement related shortcomings for companies that manufacture products for the high tech, defense, aerospace and communications industries. Our customers use DesignWin to streamline the following processes:

Creation of Volume Purchase Agreements ï for direct material

High volume RFQ activityï

Labor Cost Estimationï

Overhead & Profit Margin Analysisï

Outsource Managementï

BOM & AML Managementï

Business Intelligenceï

“PolyDyne’s focus on the needs of high tech companies has added immediate value. They provide the most comprehensive product costing solution in the industry.”

VP Global Sourcing Network Communications Provider

Communication Flow

Price

Revisions

BOMs

EMS

Mfr

Disty

Global SpendMgmt

Contract Mgmt

BOM Mgmt

Labor Estimation

Commodity Mgmt

Supply BasePerformance

Strategic DecisionAnalysis

ODM OEMQty

Forecast

ROHS

LTPNS

Schematics

NegotiationCollaboration

Process AutomationKnowlegde Management

Project ManagementDocument Control

T R A D I T I O N A L E X C H A N G E M O D E L

D E S I G N W I N C E N T R A L I Z E D M O D E L

vs

Comp

www.polydyne.com

Product Costing Solution

Product Costing – This complex process determines what it will cost to build a product including material, labor and overhead costs (MLO). Also supported is the process of adding margins and rolling up a final price for the product.

Strategic Sourcing – A robust request for quote (RFQ) web interface with suppliers enables the continuous information flow of pricing, availability and other general market data. With a constant pulse on your supply chain, through this centralized costing database and a Supplier Relationship Module (SRM), you can quickly determine the best source for a requirement with the complete knowledge of all the factors that can affect a sourcing decision.

Volume Purchase Agreements (VPA) – This process requires consolidation and aggregation of component demand across the enterprise. On demand translation into supplier part numbers, commodity information and spend analysis is also supported. This information gives our customers the best leverage possible in periodic negotiations with suppliers.

Outsource Management (OSM) – This process tracks costs from suppliers who provide contract manufacturing services. Quotes from various contract manufacturing suppliers can be evaluated while providing detailed information on your direct demand and influence with component level suppliers.

Business Intelligence (BI) – A suite of reports transforms the captured data into information that enables our customers to spot trends and make the most knowledgeable and profitable business decisions.

DesignWin is a business software application that supports procurement related processes for companies that manufacture products for the high tech, defense, aerospace and communications industries. Our customers use DesignWin to streamline the following processes and they benefit from reduced material costs, reduced cycle time and increased accuracy.

Product Costing through:

Volume Purchase Agreementsï

Web-based RFQï

Labor Cost Estimationï

Overhead & Profit Marginï

Outsource Managementï

Multi level BOM & AML Managementï

Business Intelligenceï

Product Costing

Business Intelligence

OSM

MLO

SRM

RFQLaborEstimation VPA GPD

Web-Based Partner Interaction

Outsource Management

“Should be Cost”

Supplier Relationship Management

Volume Pricing Agmt. Global Pricing Data

C A P A B I L I T I E S

“I’ve had the opportunity to use PolyDyne’s software at several companies over the past 5 years. They’ve always had a very professional team that has provided excellent support. Most companies find it difficult to set financials standards, calculate material, labor and overhead, negotiate contracts and manage suppliers. PolyDyne’s software takes the pain out of managing these critical processes.”

Materials Quoting SpecialistEMS Provider

www.polydyne.com

Request For Quotations ModuleRFQ

Overview

Requests for Quotations (RFQs) invite qualified suppliers to submit proposals to provide materials according to the listedrequirements. When the volume of individual RFQs reaches in the hundreds-to-thousands just to complete one product costing effort, an organization may experience any of the following:

Delays in responding to inquiriesï

New opportunity inquiries left unansweredï

Error prone data administrationï

Incomplete cost data for NPIï

Rushed analysis, award selection & roll upsï

Increased headcount to alleviate backlogï

Supply chain executives have been able to abate this stress filled spiral by arming their staff with quotation management software designed specifically for high volume, complex, product costing.

The RFQ Module delivers a proven step-by-step quoting process that is measurable and auditable. Corporate quote records are stored centrally and are readily available for use in redundant inquires. Suppliers are linked to the sourcing team via a web interface. Preconfigured analysis scenarios weigh pricing along with other factors such as quality, delivery and volume capacity.

Key capabilities include:

Multi-level bills of materialï

Multiple volume scenariosï

Aggregation of common partsï

Auto-retrieval of historical quotesï

Single click RFQ distributionï

RFQ response tracking dashboardï

Event notification and alertsï

Alternate source cost evaluationï

Performance statistics & side-by-side comparisons ï

Benefits:

Decreased cycle timesï

Increased efficiencyï

Lower costs in material & resourcesï


“PolyDyne’s years of experience and a strong reputation in the design and support of product costing software for the EMS industry was a key factor in our decision to select their software. We like the range of solutions PolyDyne offers to support our business growth. The complexity of our quoting needs has increased and we require more demanding feature sets and analytics that the software has met.”

Manager of Bids and ProposalsTop 20 EMS Provider

Major Elements of the Quote Process

SETUPPROJECT

CUSTOMERS

SUPPLIERS

1

PREPAREDATA

2

SENDRFQs

3

SUBMITCOSTS

6

ANALYZEDATA

5

RECEIVERFQs

4

www.polydyne.com

Volume Pricing Agreement ModuleVPA

Overview

Volume purchase agreements (VPAs) are contracts negotiated with direct material suppliers based on a company’s global demand or estimated usage of parts over a period of time. Electronic manufacturers that consistently employ a VPA negotiation cycle secure the most competitive prices on their upcoming demand for the next fiscal period.

Unfortunately, preparing the data and information needed from a wide range of heterogeneous systems, relevant business units, and geographies, make the enormity of such a task the most common reason that companies fail to get the VPA process completed on a consistent cycle. The resulting business dilemma is that a previous, competitive, price erodes over time and the business is contractually paying prices that exceed the current market pricing.

The VPA module provides a systematic approach for creating supplier contracts based on enterprise-wide material demand. By using an application specifically designed for this purpose, a sourcing team can move through various stages of the VPA the process with ease and will be more likely to renew the VPAs on a pre-determined cycle. The sourcing team is then able to stay ahead of market price erosion and capture lower costs as early as possible.


Consolidates component demand across business ï units & geographic regions

Lists all possible supplier sourcesï

Normalizes part numbering and supplier ï naming schemes

Parses data by commodity or supplier responsibility ï

Automates creation of bids / RFQsï

Collects bid responses via the webï

Offers award decision supportï

Automates retrieval of prices from VPA table to price ï new projects

Provides centralized web access to VPA recordsï


“It’s no secret that driving costs out of the supply chain is a primary objec-tive of every company in the electronics industry. Using the spend management capabilities within PolyDyne’s software, we’ve made significant reductions in our direct materials cost.”

Director of Supply ChainDefense Subcontractor

Quickly Capture Price Erosion

VPA PRICE

PR

I CE

ER

OS

I ON

COSTSAVINGS

Q1 VPAProcessISExecuted

Q2 VPAProcessNOTExecuted

PRICE

TIME

Q3 VPAProcessNOTExecuted

POTENTIALSAVINGS

POTENTIALSAVINGS

www.polydyne.com

Global Pricing Data ModuleGPD

Overview

What is the price of this part? It may sound like an easy question. But in reality, there are many correct answers. For example, one could counter with any of the following:

“Would you like to know…”

the last PO price?ï

the contract price?ï

the price in another region?ï

the latest price quoted by an approved supplier?ï

the price from a non-approved source?ï

Furthermore, in order to find any one of these prices, various internal systems, databases, and spreadsheets would need to be searched. When a search like this ensues, there is susceptibility to transposition errors as the price is manually copied from one source into another. The time spent in the search is extraordinary and reduces and detracts from the time that would otherwise be spent on analysis.

The Global Pricing Module (GPM) provides a central location to store enterprise-wide price records. Multiple tables may be created according to the source of the price such as: Inventory, PO, Contract, Matrix, or Regional Pricing. Once these tables are available to a sourcing team, a single click query will retrieve the results from the numerous sources.


Identifies the supplier and manufacturer of the ï price record.

Tracks the age of a price record and validity dates.ï

Lists attributes such as lead-time, MOQ, and ï volume quoted.

Efficiently handles low-value, high volume parts.ï

Converts the currency of the original price record ï to local price.

Web based accessï

Simplifies searches for price recordsï

Reduces transposition errorsï

Increases visibility of global recordsï

Eliminates time spent on low value tasksï


“Our company has a multi billion dollar annual spend on direct material. Our first round of contract negotiations for B&C items saved us 8 Million dollars that we would not have achieved in the past due to disparate legacy systems and different part numbering schemes across our company.”

Global Commodity Specialist, Fortune Top 50, high tech products designer and manufacturer

Global Pricing Data Module

www.polydyne.com

Materials, Labor & Overhead ModuleMLO

Overview

Customer RFQs are the lifeblood of any electronic manufacturer. The ability to quickly develop an accurate and professional quote can create a competitive advantage.

There are several challenges in accomplishing this top-level objective. Many companies find it challenging to simply determine the material and labor costs for a given project. However, one of the greatest challenges typically occurs in the next step of the process. Once the baseline material and labor costs are determined, it can be time consuming and complex to calculate the myriad of material, labor, overhead, non recurring charges, and profit margin markups. The MLO module is an easy-to-use, yet powerful, means of applying any number of markups to arrive at a final customer-ready sales quote.

The MLO module enables pricing teams to standardize or customize the application of material, labor, non-recurring and overhead charges to project costs


Material, labor & overhead markupsï

Non-recurring charges & other customized markupsï

Pricing standardsï

New Product Introduction (NPI)ï

What-if scenariosï

Historical lookup of past quotesï

Markup and analyze multiple assemblies at one timeï

Web based accessï

Reporting features include:

Sales margins summaryï

Profit analysis by project, assembly or volumes quotedï


“PolyDyne’s software is a major component in our business, and helps us to put our best foot forward to our customers.”

Business Development Manager Top 10 EMS Provider

www.polydyne.com

Outsource ModuleOSM

Overview

When outsourcing to contract manufacturers (CM) an OEM routinely exchanges product cost data with CM suppliers. Initially, the OEM requests a proposal which includes costing bills of material and related costs for manufacturing, testing, delivery and margins.

Reviewing the returned quotes is tedious. It requires analysis of hundreds of rows of pricing data, massaging data formats, and the creation of spreadsheets for comparisons.

Ultimately, the award to a supplier is made. Not long after, a quarterly costing effort ensues to drive towards cost reduction targets and to set financial standards for the next fiscal period. ERPs are ill equipped to handle this pre-production costing process and its rounds of negotiation. Commodity sourcing teams resort to Excel for this tedious cycle.

This inefficient and manual process costs an OEM a significant amount of resources and cycle time that negatively impacts a product’s market introduction.

The Outsource module gives OEMs powerful tools to send, receive and analyze incoming proposals from CM suppliers. The OEM requests a quote/ proposal over the web by sending a customized template for the suppliers to populate along with bills of material and documenta-tion. The suppliers’ responses are quickly analyzed with reports that highlight (line by line) the differences between competing quotes. The best of all of the participating suppliers’ costs can be compared to the OEM’s internal targets and benchmarks.


Identification of each component’s absolute lowest costï

Evaluation of outsource suppliers’ labor, overhead and ï margin costs

Measurement of suppliers’ responses against best ï internal costs, targets and benchmarks

Web based communication with suppliersï

Centralized database for historical record keepingï


“The software eliminated the burden of massaging data in spreadsheets. This freed up time for our assembly commodity managers to better analyze multiple supplier proposals and work towards our supply chain goals.”

Director Commodities Management Information Storage Provider

Outsource Module

www.polydyne.com

Labor Estimation ModuleLABOR

Overview

The labor module is designed to provide a consistent and methodical approach to estimating the costs related to manufacturing assemblies. Corporate standards set by time studies, labor rates, and equipment usage costs drive consistent results. Labor processes, also known as work center routings, are established and then tied to their respective cost standards.

Staffing costs, set up times, variable costs, and yields are comprehended. The result is a fully burdened labor cost with detailed records on manufacturing time and the cost for each labor process consumed.

Benefits:Common platform with tightly integrated materials ï & labor quoting

Efficient retrieval of centralized historical data repositoryï

Rapid estimation of total manufacturing time & costs ï at multiple facilities

Error reduction by assuring that engineering and the material ï costing group work off the same BOM revision

Gross capacity planning derived from estimated ï manufacturing time


Automate labor estimation by recalling previously ï costed products.

Maintain separate rates for different sites & perform ï “what if” analysis.

Attach schematics, Gerber drawings & project related ï data to BOMs.

Access and easily manage standards for labor rates ï and manufacturing time.

Learning curve modelingï

Build efficiency factors into labor processes.ï

Group multiple labor processes for single click ï application to an assembly or a part.

Web basedï

Reports & analysis include:

Labor site variationï

Labor assembly detailï

Manufacturing volume scenariosï

Manufacturing costs summaryï


www.polydyne.com

Supplier Relationship Management ModuleSRM

Overview

Supplier relationship management (SRM) is a comprehensive approach to managing an enterprise’s interactions with its suppliers. The objective of SRM is to make information readily available on the supply base for use in global sourcing tasks. Without an application specifically designed for this purpose, there is a risk of paying higher costs for material because supplier performance factors are not considered when making a sourcing decision. Another risk is the loss of leverage that could have been gained if sourcing managers could easily determine the volume and spend that other business units may be channeling through a particular source. PolyDyne’s SRM module is a powerful means of gaining valuable insight into the total cost of a sourcing decision before an award is made. The value gained by CEO’s and CFO’s is the visibility of the progress toward goals and the ability to take action in time to address shortfalls.

The SRM module provides intelligence on suppliers throughout the enterprise. A web based, collaborative platform enables the collection, analysis and leveraged use of supplier data and price records. Capabilities of the SRM module include ranking, spend analysis, and sourcing costs optimization.

Benefits:

Reduce direct & indirect costsï

Improve bottom-line profitabilityï

Select the best suppliersï

Reduce the risk of supply chain disruptionsï

Understand what is purchased and from which sourceï

Prioritize resources on the most valuable suppliersï

Collaborate with business units across the enterpriseï

Detailed analysis & decision support:

Supplier performance summariesï

Organization compliance metricsï

Supplier capabilities catalogï


REDUCTION IN TCO YIELDS INCREASED PROFIT MARGIN

Supplier Relationship Management Module

www.polydyne.com

Site View Demand ModuleSVD

Overview

Large OEMs with numerous divisions and site locations, not only need to consolidate global demand to negotiate the best material pricing, but also to disaggregate demand after the corporate contracts cycle is completed. Disaggregation is needed because the sites usage volumes on common parts vary dramatically. The various sites are notified of th final corporate pricing which was based on the consolidated global demand.

Questions now arise such as:

What division is driving the highest volume on a component?ï

Will our site with a relatively small volume be able to get the ï corporate rate?

Why are suppliers hesitant to give our division the same price ï they are giving our sister division? Is this reasonable?

Using the Site View Demand module each division in a corporation creates their own project reflcting their consolidated demand on common parts that will be consumed by their site. Next the module consolidates all the numerous division’s projects and volumes then generates the records on the enterprise-wide material demand. A suite of analytic reports and dashboards strengthen a sourcing professional’s position in negotiations. The results are shared with commodity managers around the world and stored in a centralized database that keeps the site specific details at their fingertips.

Key Capabilities Include:

Consolidation and disaggregation of material demand ï across business units & geographic regions

Target pricing determination ï

Multi round supplier bidding support ï

Centralized contracts tableï

Web based collaboration among users and suppliersï

Reports:

Part number detail pricingï

Site negotiation reference view ï

Cost savingsï

Site volume & cost comparisonï


SITED

Leverage Corporate Demand

PN1

SITEA

SITEB

SITEC

PN2

PN3PN4

PN5

SITESDEMAND

CORPORATENEGOTIATIONS

REDISTRIBUTIONOF RESULTS

www.polydyne.com

Business Intelligence SuiteBI

Make the best decisions –big & small, every day, over & over

In the competitive market place of electronic design and manufacturing, a comprehensive analysis of data is essential to making the best decisions. When companies offer comparable products and services, astute business decisions are the key to on-going success.

Companies can, and do, compete by harnessing the power of analytics. By using a sophisticated suite of reports tailored for the electronics industry, decision makers get the most value out of their business processes. They have elevated their employees from number crunchers and spreadsheet wizards to decision support analysts. Industry executives agree that without rich analytical tools, business decisions may depend more on art rather than facts.

PolyDyne has focused on the high tech electronics manufacturing industry since 1993. The analytics are “out-of-the box” and yet easy to customize by the end user.

Years of experience and customer feedback has allowed PolyDyne to deliver reports that meet the specific and complex requirements of the industry.

The Business Intelligence Suite provides standard and customizable reports that deliver comprehensive insight to minimize risks for you and your customers. With this suite of reporting you can measure supply chain competitiveness, internal process efficiencies and their impact on profit margins.

Standard Reports Include:

Bills of material – structure, costs and comparisons ï

Material spend – commodity specific, supplier spend, ï comparisons over time and goal attainment

Supplier performance – cycle time, responsiveness, ï competitiveness, awards, total available market

Trends - part costs, commodity spend, ï purchase price variance

Sales analysis - profit & loss, sales proposal generation ï

Project statistics – efficiencies, cycle time, data workload ï

Labor estimation – regional, global, site specificï

Regulatory compliance – ROHS & audit trailsï


“We chose PolyDyne’s solution for its reporting capabilities and we have not been disappointed. ”

Director, Global Supply Chain Management Top 5 U.S. EMS Provider

Business Intelligence Suite

About PolyDyne

PolyDyne develops and markets business applications that are used for the product costing and quoting processes. Through an intense dedication to addressing specific supply chain needs of the high tech, defense, aerospace and communications industries, PolyDyne Software has built an impeccable reputation for innovation and excellence. We’ve been responsible for many of the advancements in product costing and strategic sourcing that have become industry best practices.

Since 1993, PolyDyne has focused its efforts on solving the most complex product costing challenges faced by the world’s leading companies in these industries.

Our organization is comprised of hard working professionals with extensive backgrounds in software, procurement and manufacturing. As evidenced by our longstanding customer relationships, our team holds a strong commitment to providing the highest level of satisfaction possible to each of our customers.

PolyDyne provides more than just software products and services. We provide the expertise and know-how necessary to make our customers successful.

PolyDyne Software Inc.9390 Research Boulevard, Suite 400Austin, TX 78759512.343.9100www.polydyne.com

PolyDyne Software Inc.9390 Research Boulevard, Suite 400Austin, TX 78759512.343.9100www.polydyne.com

T H E L E A D E R I N H I G H - T E C H P R O D U C T C O S T I N G S I N C E 1 9 9 3

“the most comprehensive product costing solution in the industry.” · 2016-10-05 · product...

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