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Welcome to the Operational Excellence Webinar
Zero Wait-State Confidential 1
AGENDA•The 3 Business Disciplines•The Pro Nova Story•Learn more
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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.
Zero Wait-State Confidential 2
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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?
Zero Wait-State Confidential 3
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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.
Zero Wait-State Confidential 4
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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….
Zero Wait-State Confidential 5
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Zero Wait-State Confidential 6
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How did Team USA get to the finish line ahead of all others?
Zero Wait-State Confidential 7
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Team USA focused on the baton hand off in practice- remember 2008?
Zero Wait-State Confidential 8
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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
Zero Wait-State Confidential 9
Silos? What Silos?
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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?
Zero Wait-State Confidential 10
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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
Zero Wait-State Confidential 11
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A Large Company with Gold Level Operational Excellence
• ERP
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• CRM
• PLM What about PLM?
I have to have accounting……
We have got to keep track of customers…
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Apple Delivers Gold medal business performance with….
Zero Wait-State Confidential 13
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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
Zero Wait-State Confidential 14
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Frequently Asked Questions
• Isn’t PLM just for the Big companies? • Can small companies strive to become
“operationally excellent?” • Can small companies afford PLM?
Zero Wait-State Confidential 15
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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………
Zero Wait-State Confidential 16
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Who is ProNova Solutions?
ProNova Solutions is a medical device start-up company developing the next generation proton therapy system.
Zero Wait-State Confidential 17
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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.
Zero Wait-State Confidential 18
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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
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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.”
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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
Zero Wait-State Confidential 21
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Now let’s show you an Agile PLM Demo
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As Is – Silos of Product data Possible To Be – Let’s see an Agile PLM demo
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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
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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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Mec
hani
cal
PCB
Fab
sEl
ec. C
omp.
Valu
e A
dd
0
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
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“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.
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Operational Excellence - Business Processes for Product Development - Enabled by PLM
Design Release Process
Change Process
Quality Process
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Connection of PLM BoM Items to ERP BoM Items
Program and Portfolio Analysis
Costing Analysis
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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
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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]
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