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5 november 2008 Evoluon - Eindhoven Human and System driven collaborative workflow within the Engineering Value Chain

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5 november 2008Evoluon - Eindhoven

Human and System driven collaborative workflow within the Engineering Value Chain

5 november 2008Evoluon - Eindhoven

Typical Business Questions from Manufacturers

How do we …

• stimulate innovation to improve product development & accelerate time-to-market of new products?

• better collaborate with suppliers and distributors to increase supply chain efficiency?

• continue to automate our order management processes to reduce transaction costs?

• create a single view of the customer to improve customer service and create selling opportunities?

• create a real-time view of a customer-order status? (e.g. in-stock, planned, shipped)

• continue to build a technology foundation to promote business agility and adapt to change?

5 november 2008Evoluon - Eindhoven

Business Drivers For Manufacturers• Product Lifecycle Management

– Design collaboration & design for manufacturability– Product Data Management (product change, configurations, and Bill-of-

Materials management)– Design win management (with distributors)

• Supplier Relationship Management– Inventory management (VMI)– 3rd Party Logistics management

• Customer Relationship Management– Single Control of Customer– Quote-to-cash automation

• Manufacturing– Shop floor visibility (Shop-to-enterprise integration)– Contract Manufacturer Integration (OEM to CEM, CEM to sub-contractor)

• Administration & Finance– Process & Systems Harmonization (IT Portfolio Management)– Payment assurance and confirmation– Compliance (e.g. SOX) & Financial/Tax Reporting

5 november 2008Evoluon - Eindhoven4

A Typical Supply Chain

5 november 2008Evoluon - Eindhoven

5

Strategic Partners

Suppliers

Design Partners

Customers

Subcontractors

Engineering Collaboration (Simplified)

A&D OEM

Other

PDM

PDM

5 november 2008Evoluon - Eindhoven

6

Design Partners

SubcontractorsCustomers

Customers

In Reality..

PDM

Other

PDM

A&D OEM

Strategic Partners Suppliers

Design Partners

Customers

Subcontractors

SuppliersSuppliers

5 november 2008Evoluon - Eindhoven

7

A&D OEM

Typical Collaboration Without Process Control

> Only 6% of processes are automated > 85% of processes require human and system interaction

✦ Informal task assignment and communication

✦ Inconsistent and non-optimal prioritization

✦ Incomplete or inaccurate information flows

Resulting in:

✦ No control over process, people and systems

✦ Wasted time

✦ SLAs not being kept

✦ No process performance insight

✦ Too expensive business processes

✦ Employee and customer dissatisfaction

Strategic Partners

SuppliersDesign

Partners

Customers

Subcontractors

5 november 2008Evoluon - Eindhoven

q 13% of intellectual property discrepancy is due to supply chain miscommunication

q 21% of all product recalls are due to lack ofdata synchronization

q 38% of a product’s time to value is consumedby manual information sharing across thesupply chain

q 50% of product development cycle time isa result of inefficient collaboration

q Billions of dollars are wasted each year dueto fines and market delays resulting from lackof compliance

2005 Global Product Development SurveyCIMdata

Impact Quantified

“Lack of product data interoperability is the Goliath facing today’s global industry supply chain. We are the Davids, and automation of data synchronization is the rock.”

Emery SzmrecsanyiEVP, Daimler-Chrysler Corp.

5 november 2008Evoluon - Eindhoven

9

One

Process

View

Process Visibility

Typical Collaboration WithProcess Control

PartnersExternal Domain

Peopleas part of a workflow

Applications

Support Finance

Sales Manufacturing

PLM SCM

ERPCRM

Sub-Contractor

Supplier

Strategic Partner

Design Partner

Process Control

5 november 2008Evoluon - Eindhoven

Challenges in current Manufacturing Business Operations

Business Function

Commercial Off-the-Shelf Applications

Product Specifications

• Enterprise resources planning (ERP)• Manufacturing execution (MES)• Product life cycle management (PLM)• Process information management (PIMS)

Inventory Management

• ERP• MES• Warehouse management (WMS)• Maintenance management systems (MMS)

Warehouse Management

• ERP• MES• WMS

Shipping• ERP• MES• Transport management system (TMS)

Production Scheduling

• ERP• MES• Advanced planning and scheduling (APS)

RFID and other SupplyChain Events

• ERP• MES• PLM• WMS• TMS

RFID Readers

PLM

APSPIMS

MES

MMS

WMSERP

TMS

“Hand-coded integration is deceptive; it seems easier and cheaper to implement than an integration framework, but it ends up being far more expensive and aggravating to maintain. Worse, hand-coded integration devours IT resources that are better invested elsewhere, like revenue-enhancing and cost-saving processes.”

AMR Research

“Hand-coded integration is deceptive; it seems easier and cheaper to implement than an integration framework, but it ends up being far more expensive and aggravating to maintain. Worse, hand-coded integration devours IT resources that are better invested elsewhere, like revenue-enhancing and cost-saving processes.”

AMR Research

To-date, manufacturers have mostly relied on manual, point-to-point integration

5 november 2008Evoluon - Eindhoven

Desired State Of integrated Business Operations

– Manual interfaces eliminated– Reduced IT development costs– Reduced time of deployment for new business

processes/interactions– Real-time processing enabled– Enterprise-wide visibility gained through the use of a

common integration bus– Provides support for Process and Quality

management initiatives – Increased ability to provide new levels of service to

customers and suppliers– More automated order taking– Quicker Order-To-Cash cycle – Greater asset utilization– Faster/more accurate reconciliation's

RFIDReadersPLM

APSPIMS

MES

MMS

WMS

ERP

TMS

Cordys Business Operations Platform

Manufacturers look to Cordys’ Business Operations Platform to drive efficiency and operational excellence.

5 november 2008Evoluon - Eindhoven

12

Product Life-cycle Management Resides at the Core of your Operation

“In today’s competitive global

marketplace, quality of product data

generated, sent, or received is

crucial to corporate survival. The

consensus at a recent PDM

workgroup meeting was that losses

resulting for lack of systems

inoperability and lack of

synchronization are of staggering

proportions .. easily reaching billions

of dollars wasted.”

Akram Yunas, EVP CPD

AIAG CPD Conference, 200640

CRM

SCM

manufacturer (OEM)

retailer

distributor/reseller

supplier

logistics

PLM

PLM

ERP

ERP

ERP

ERPERP

MES

5 november 2008Evoluon - Eindhoven

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Collaborative Engineering

Fxml

Cordys CCECordys CCEPLM-A PLM-B

Define New

Product

Engineering Design Change

New Technology

ImpactCompliance

Policy

5 november 2008Evoluon - Eindhoven

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Single View

The business user

True Business Agility

Composer

BPM

ERP CRM Legacy SCM PLM

NonstopSOA GRID

The switch between all Enterprise Services

Admin

Developer

Multi-Tenant SaaS Deployment Framework

Deployment, Enrollment,

Metering

JIT Binding

Process Owner

UI Composition Layer with Role base

Browser

JIT service involvement

Leveraging existing

applications

5 november 2008Evoluon - Eindhoven

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So companies can improve, innovate……

BusinessActivity

ManagementBusinessProcess

Management

Modular &Islandadmin.

IntegratedSystem

activity

oriented

process

oriented

ERP:

collection of linked functions

or hard coded process

Function

Process

Collaboration

Deming QA (PDSA)

kaizen, poka yoke

SixSigma (DMAIC)

CorporatePerformanceManagement

CollaborativeSystems

chain

oriented

ProductMetric

Enterprise

Value stream analysis

5 november 2008Evoluon - Eindhoven

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Business Operations Platform

Value stream analysis

Enterprise

Product

Metric

Role

Technology

Service Unit

Impl

emen

tP

erformance feedback

The power of Value Stream Mngt and BPMS combined

5 november 2008Evoluon - Eindhoven

The Value Chain

Requirements, Design, Procurement, …

Engineer Build

5 november 2008Evoluon - Eindhoven

The Value Chain

Requirements, Design, Procurement, …

Engineer Build

5 november 2008Evoluon - Eindhoven

The Value Chain

Requirements, Design, Procurement, …

Engineer Build

5 november 2008Evoluon - Eindhoven

The Value Chain

Requirements, Design, Procurement, …

Engineer Build

5 november 2008Evoluon - Eindhoven

A Sub-Process - Internal to Company 3

5 november 2008Evoluon - Eindhoven

IT Technologies that have biggest benefits for Manufacturers – research by Aberdeen

(Best-in-Class Manufacturer)

5 november 2008Evoluon - Eindhoven

§ Complex to install

§ Long development cycles

§ Inefficient and costly

§ Difficult to connect

§ Uncertain growth options

§ Divers plumbing systems

§ Costly to deploy

§ Departmental attitude

§ Limited use for business

§ Easy to install

§ Shortened time-to-market

§ Positive price/performance

§ Open to connect

§ Scales with your business

§ Central admin & monitoring

§ Lower Total Cost of

Ownership

§ The collaborative building

§ Effective business building

23

What makes the differenceUnified PlatformThe M&A Building

5 november 2008Evoluon - Eindhoven

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Single View

The business user

True Business Agility

Composer

BPM

ERP CRM Legacy SCM PLM

NonstopSOA GRID

The switch between all Enterprise Services

Admin

Developer

Multi-Tenant SaaS Deployment Framework

Deployment, Enrollment,

Metering

JIT Binding

Process Owner

UI Composition Layer with Role base

Browser

JIT service involvement

Leveraging existing

applications

5 november 2008Evoluon - Eindhoven

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Single Platform

True Business - IT Collaboration, where Business and IT share one model for a complete business solution

Faster Time-To-Market, enabled by a fully integrated product, without import & export of process models, increasing productivity

Lower TCO because of central management and monitoring of platform and processes

Designing, Executing and Monitoring your Critical Business

Operations

5 november 2008Evoluon - Eindhoven

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3

1

2

What you Model is what you Execute

Integrated Modeling, Execution and Monitoring

1

Long- and short-lived process support supporting any type of business process with system and human interaction

Drag & drop web services to rapidly connect web services to the process model

Executable process for true business – IT collaboration and high productivity

3

4

Rules engine for automated decision making

4

2

5 november 2008Evoluon - Eindhoven

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3

1

2

Integrated Modeling, Execution and Monitoring

Execute business processes across your IT systems

Integration with MS Office

Access and update diverse back-end systems through a single UI screen

Custom Inbox integrating shared work lists, team and role based work lists

1

32

5 november 2008Evoluon - Eindhoven

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Integrated Modeling, Execution and Monitoring

3

1

2

End-to-End Integrated Solution for Closed-Loop

Monitoring

Single dashboard to monitor running processes through-out

your IT systems

Integrated, real-time monitoring of activities across

humans and systems

Integration with business data of process for fine-

grained, contextual monitoring

2

3

1

5 november 2008Evoluon - Eindhoven

Corporate Data

Cordys Business Operations Platform (BOP)

Business Operations Platform

Business ServicesBusiness Services

Master Data Management (MDM)

Master Data Management (MDM)

Case ManagementCase Management RulesRulesSOA GridSOA Grid

Composite Applications Framework (CAF) & UIs

Composite Applications Framework (CAF) & UIs

ERP CRM

Claims

Legacy app

Managers Staff SuppliersCustomers

Products

PLM

Business Activity Monitoring (BAM)

Business Process Management Suite (BPMS)

Model Driven Development

Drag-and-drop web services

Linear scalability

Integrated Rules

Monitor performance

Composite application

Information harmonization

Dynamic processes

5 november 2008Evoluon - Eindhoven

Human and System driven collaborative workflow within the Engineering Value Chain