1 | CORPORATE COMMUNICATION

Challenge, Change, & Innovation in PLM, Manufacturing, & Compliance

Brion Booth Manager - Enterprise Application Solutions Varian Medical Systems

2 | CORPORATE COMMUNICATION

Varian Saves Lives !

Varian Medical Systems: Focus on saving lives. Through collaboration with customers & partners, the people at Varian develop technology leading solutions for advancing cancer treatment, radio surgery, X-ray imaging, and security.

Treat over 250,000 patients/day

FY 2012 Revenues ~$2.6 B

5,800 employees

Manufacturing sites -NA, China, Europe

60 Sales/support offices globally

Oncology Systems

Security and Inspection products X-Ray & Imaging Systems

3 | CORPORATE COMMUNICATION

How did it all get started at Varian?

PLM & manufacturing challenges & opportunities lead us to improve core engineering and manufacturing processes

Reach RoHS Compliance

• Lack of process compliance

• Inadequate tools & infrastructure

• Looming regulatory requirements

• Big workload to become compliant

Engineering Change & BOM

• Paper based and manual

• Backlogs due to process inefficiencies

• Inconsistencies across organizations

• Manual configuration management

Mfg. Shop Floor

• Paper based/manual processing error prone & abused.

• Lack of integration between systems

• Transaction timing

• OLTP/UX in ERP not mfg focused

Mfg Process Control, & Compliance

• Limited process enforcement

• Regulatory data silo’d & not easily reported

• Routers didn’t represent the build process – financial only.

3 Basic Philosophies: • What is my stuff ? • How much does my

stuff cost ? • Where is my stuff ?3

4 | CORPORATE COMMUNICATION

Results in

Pharma

Results in Med

Device

Results in Ops

Sequence 130 - Final QA Yields

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

12

/15

/20

03

12

/29

/20

03

1/1

2/2

00

4

1/2

6/2

00

4

2/9

/20

04

2/2

3/2

00

4

3/8

/20

04

3/2

2/2

00

4

4/5

/20

04

4/1

9/2

00

4

5/3

/20

04

5/1

7/2

00

4

5/3

1/2

00

4

6/1

4/2

00

4

6/2

8/2

00

4

7/1

2/2

00

4

7/2

6/2

00

4

8/9

/20

04

8/2

3/2

00

4

9/6

/20

04

Date

4 W

k A

ve

rag

e Y

ield

s

90 Day Avg

MES Deployed

Benchmarking …

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Business Transformation: Digital Product Collaboration

PLM Outcomes:

- Leverage and reuse product engineering data

- Establish continuous data stream

- Design Manufacturing Service

- 3D Model Material EBOM MBOM

- Re-use of parts and information

- Enable one global engineering platform

- Capture Electronic E-BOM’s and parts

- Building block for “virtual product”

- Quicker access to product and process information

- Global version/revision control

Device Master Record (DMR): Drawing SAP Platform becomes the system of record

6 | CORPORATE COMMUNICATION

PLM Systems Landscape

ProE

OrCAD

Mentor Graphics

Solid Works,

AutoCAD

Clear Case

DX Designer

CADSOFT Eagle

Altium

PLM 7.01

CAD Apps

SPRC (RoHS)

PP MM

SAP ERP

PDM

Data resides in SAP ERP (Material, BOM, Vendor, DIR etc)

Integrated SAP Software was platform of choice for REACH RoHS and EC process

SAP DMS

Drawings

/PLM P-drive

• Simple application architecture, no additional cost for hardware, software and integration.

• Included NetWeaver Business Client (NWBC) UX and logic services to streamline

PLM process. Several new engineering screens, workflows, & interfaces

Drawings

7 | CORPORATE COMMUNICATION

Business Transformation: Manufacturing Execution

Improve: Quality, First Pass Yield, Cycle Time, Error reduction, Avoidables, Data Availability, Analytics & Reporting, User Experience & Integration, SPC (Instantaneous)

8 | CORPORATE COMMUNICATION

Business Transformation:

Manufacturing Integration & Intelligence (MII)

9 | CORPORATE COMMUNICATION

PDF Drawing

3D PDF Assembly

PDF Drawing

3D PDF Assembly

Schematic Board 3D Model

ProE 3D Assembly

ProE 3D Model

ProE Drawing

SolidWorks 3D Model

SolidWorks Drawing

OrCAD Schematic Board Layout Model

Components

Functional Specification

Firmware Binaries

Functional Specification

Integration Testing

Testing Plan

Compliancy Certificate

Manufacturing Spec Sheet

Functional Specification

Test Plan

Functional Requirements

Compliance Documentation -15

-06

-05

-10

-08

-10

Rev A

Rev C

Rev B

Rev A

Rev C

Rev B

Rev A

Rev C

Rev B

Rev A

Rev C

Rev B

Rev A

Rev C

Rev B

Rev A

Rev C

Rev B

EC2

EC3

EC4

Mechanical Part

Electrical Part

Software Part

Document

File

EC Eng Change

Business Transformation-Digital Product Collaboration From EBOM to Full Configuration Management

Highlights

1. Establish a System of Record and also provide a structure for navigation and search across product information

2. Foundation for Configuration Management

3. Foundation for full traceability

10 | CORPORATE COMMUNICATION

PLM Benefits: Compliance, Revenue Protection,

Cost Avoidance, Agility, Process Consistency,

2012 2013

2014 2015

2016

Protect EU Revenue

~30% of total Varian revenue in 2014 and thereafter

Speed of design process

Increase component selection and alternate

Optimize component spend

Leverage standard components and reuse

Automate component data acquisition

PartMiner interface with SAP, capture AML, data sheets & pricing

11 | CORPORATE COMMUNICATION

Standard in ME:

Analysis on all things manufacturing

MII & BOBJ options available

Real Time SPC: Manual/automatic data collection - Any

source

Process control

Event driven NC, Rwk, Notification

Workflow

MII - Automatic from AtP

Mfg Execution Benefits: Paperless Processing,

Process Enforcement, Compliance & Analytics

12 | CORPORATE COMMUNICATION

• Created in real time – can view anytime.

• Ties together BOM levels/ops by SN

• Customized through MII & DHTMLX extensions

Device History Record

Test Log:

Measurement data by SN !

Tools:

Calibration Verification !

Serialization

Components & Sub Assemblies

!