Microsoft Dynamics AXNameTitleMicrosoft Corporation

Industrial Equipment Manufacturing

Agenda

• Industry Overview• Industry Trends and Challenges• Microsoft Dynamics AX value proposition• Customer Evidence• Microsoft Dynamics AX Industry Builder Solution

Conglomerates Conglomerates and Clustersand Clusters

Design IntensiveDesign Intensive

Highly Variable Highly Variable Customer DemandCustomer Demand

Industry Overview

Industrial Equipment Clusters

Professionals

Practice Managers

Engagement Managers Project scheduling/updates

Project Profitability

Collaboration and progress reportingExpense Reporting

Staff ManagersSkills-based staff mgt

Utilization and Realization

Portfolio ManagementProfitability

Financial ManagementBusiness Development

Billing, Revenue RecogPurchasing, Payroll

AR, AP, GL

ClientsSchedule StatusFinancial Status

Accounting Staff

Industrial Equipment Industry Trends• International acquisitions, mergers and

joint ventures• Products must meet ever-increasing quality,

safety, and performance measures• Standardized global business practices,

designs and procurement contracts• Continuous improvement for greater efficiencies, quality, cost and process improvements• Managing customer relations and capacity

on global basis

Industrial Equipment Industry Trends• Outsourcing/buying of components

– more focus on value add/final assembly• Higher product complexity, same highest

quality expectation• Partnering with selected customers – long time relationships to improve product

life cycles• Streamlined product movement from incoming receipt, through manufacturing to

shipment• Customer Visibility to order status at any time

Industry Challenges

• Managing Complex Design, Quoting and Manufacturing Processes

• Increasing Customer Demands for Higher Quality and Lower Cost

• Dealing with Global Customers,Suppliers and Competitors

• Connecting Across a Complex Supply Chain

Manufacturing Focused Life Cycle Focused Project Focused

BusinessModel

• Engineer-to-order (ETO)• Job shop• Configure-to-order

(CTO)

• Service networks• Maintenance plans

• Enhanced consultancy services• Knowledge-based• Installation site

management

Competitive Differentiation

• Flexibility to customer demand• Price

• ROI on customer investment

• Engineering and consultancy• Installations

Key Issues• Quotation

management• Subcontractors

• Preventive maintenance• Maintenance

strategy

• Project management• Compliance and

regulations

Industry Examples

• Components• Smaller machines• Pumps

• Industry machinery • Material handling• Plant systems• Construction

equipment

Three Key Industry Modes

Four Key Industry Challenges

• Global deployment of operations

• New revenue opportunities

• New payment models

• Warranties and contracts

• Labor safety and product safety

• Environmental issues

• Market protection issues

• Low-wage competitors in developing countriesProtecting IPProtecting IP

Managing Regulatory Compliance

Managing Regulatory Compliance

Customer ROIand Product Efficiencies

Customer ROIand Product Efficiencies

NewOpportunitiesNewOpportunities

Microsoft Dynamics AX

Applications And ArchitectureAffordable Adaptability

Microsoft Dynamics AX Overview

• Broad-based ERP solution: 1 Database1 Toolbox, 1 Business Logic, 1 Source Code

• Technology: Scalability, 3 Tier, highly customizable• Connectivity: Multi Site, Multi Company, Enterprise Portal

and Commerce Gateway• Global: Local functionality, Multi Currency, Multi Language• Three Typical Scenarios

– Out-of-the-Box– Customized to fit customer needs– Partner Add-ons/Vertical Solutions

AX

Microsoft Dynamics AX Value Proposition

Microsoft Dynamics AX helps you quickly and affordably seize competitive advantages

in a rapidly-changing global marketplace

Three Big Reasons To Choose Microsoft Dynamics AX

Affordably Adaptable

The powerful core solution together with ISV-developed industry-specific functionality and an integrated suite of powerful customization tools give you a solution that is tailored to your exact needs—with a higher ROI than Tier-I competitors.

Scalable

The three-tier, object-oriented architecture of Microsoft Dynamics AX offers you high-speed server-side performance and the ability to easily scale your IT infrastructure, so the solution can grow with your company.

Global

Microsoft Dynamics AX gives you built-in multi-site, multi-language and multi-currency capabilities in more than 30 countries, as well as local tax, regulatory and market requirements.

Microsoft Dynamics AX For TheIndustrial Equipment Industry

Empowers industrial equipment manufacturers to optimize their manufacturing processes and

supply chain for increased profitability.

The People You Will Meet At A Customer

Quality

SalesSupport for our

operations

Labor Regulations Environmental issues Regional Compliances

R&DConcurrent

Engineering, Collaborative design models, Automating the quotation phase

CEOProfit Visibility Strategic

Deployment of operations

Managing Clusters, Flexibility to customer

demand, Getting customer requirements ASAP

ServiceAs-Build Documentation, Preventive Maintenance,

Dispatching

Operations

Microsoft Dynamics AX Supply Chain Management

• Trade• Intercompany• Logistics• Product Builder• Production

• Master Planning• Shop Floor Control • Warehouse Management• Commerce Gateway• Enterprise Portal

Microsoft Dynamics AX For Industrial Equipment Manufacturing

Operational Flexibility

Connectivity

Insight

Operational Flexibility

• Optimize production flow using strong planning and scheduling tools with built-in flexibility

• Quickly respond to changes to take advantageof sales opportunities or avoid production bottlenecks

• Offer customized products cost effectively

Connectivity

• Deliver on time and increase customer satisfaction– Real-time information sharing between production, sales, finance,

warehousing and purchasing

• More accurately match production with demand• Provide timely and accurate delivery information to customers• Source raw materials across locations and minimize stock-holding

costs

Insight

• Make tactical changes to increase production efficiency with insight into production schedules and costs

• Increase the efficiency of product designand BOM creation

• Gain insight into and increase the efficiencyof shop floor operations

Microsoft Dynamics AX Manufacturing

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Microsoft Dynamics AX For Manufacturers

Unique Architecture, Low Total Cost of Ownership

Advanced and Flexible Manufacturing Functionality

Connectivity throughout the Supply Chain

Global and Local Functionality

Customer Evidence

North Atlantic Industries Achieves Positive North Atlantic Industries Achieves Positive Return on Investment With Microsoft AxaptaReturn on Investment With Microsoft Axapta

The technology that NAI The technology that NAI was using for managing was using for managing data for enterprise data for enterprise resources and planning resources and planning fell short of the needs of fell short of the needs of users in various users in various departmentsdepartments

The company selected Microsoft Business Solutions–Axapta because it was the most cost-effective solution available and it offered an open and flexible platform for future customization and integration

Savings in personnel costs

Elimination of former resource consuming system

Increased productivity through eliminated downtime

Reduced inventory

Link to Case Study Here

:

North Atlantic IndustriesNorth Atlantic Industries

NAI achieved a positive return on its investment in Microsoft Axapta by reducing inventory costs, realizing direct savings in personnel costs, and increasing the productivity of employees through reduced downtime.

Oldcastle Precast Has Room to Grow Oldcastle Precast Has Room to Grow and Acquireand Acquire

The company wanted a The company wanted a solution to fulfill basic solution to fulfill basic business needs while business needs while being flexible enough to being flexible enough to adapt to expected growth adapt to expected growth and expansion. They and expansion. They conducted an extensive conducted an extensive evaluation of several tier evaluation of several tier one solutionsone solutions

Oldcastle Precast chose Microsoft Business Solutions–Axapta, a powerful and versatile business application that scales and adapts so medium-sized enterprises can successfully expand their businesses

Customized functionality and flexibility

Scalability and seamless integration

Consistency in financial reporting

International capabilities

Ease of implementation and use

Link to Case Study Here:

Oldcastle Precast GroupOldcastle Precast Group

“Microsoft Axapta enables us to immediately install our business processes, thus allowing us to quickly improve and add value to the companies we acquire, as well as providing financial and reporting for analysis and consolidation.”

— Bob Quinn, CFO, Oldcastle Precast

“In the past, we had unpredictable interruptions in our supply chain. Now, with Microsoft Axapta, we can foresee problems. We anticipate them and our system allows us to respond quickly so we can eliminate them. This has optimized our supply chain.”

—Marty Ellis, Business Line Manager, Picanol Group

Leading Textile Industry Supplier Gains Leading Textile Industry Supplier Gains Global Support and Streamlined ProcessesGlobal Support and Streamlined Processes

The Picanol Group needed to update its out-of-date Enterprise Resource Planning (ERP) system and wanted to consolidate the various different systems being used across the group companies; it needed a solution that supported its global presence and ensured communication between the old and new systems, as well as with its customers

The Picanol Group implemented Microsoft Business Solutions–Axapta in six of its group companies. This has improved, standardized, and simplified its business processes and IT infrastructure; for communication between several different internal and external systems, the Picanol Group uses Microsoft® BizTalk® Server

Global support through the multisite, multilanguage, and multicurrency features

Connectivity between customers and partners

Optimized supply chain

Integration with Microsoft

Adaptable, scalable solution

Link to Case Study Here:

Picanol GroupPicanol Group

“Microsoft Axapta is great and was the right choice for us, giving us limitless options to improve our business management and customer service.”

— Lee Murrell, IT & Systems Manager, Pullmax

End-to-end Supply Chain Integration for PullmaxEnd-to-end Supply Chain Integration for Pullmax

Pullmax needed a Pullmax needed a replacement for the replacement for the Microsoft MS-DOS—Microsoft MS-DOS—based Pegasus system it based Pegasus system it had been using had been using previously, and decided previously, and decided on a system that could on a system that could handle its whole supply handle its whole supply chain, including chain, including automating ordering, automating ordering, delivery and invoicingdelivery and invoicing

Microsoft Axapta with Microsoft Axapta with integrated applications integrated applications including Financials, including Financials, Logistics, Master Logistics, Master Planning, Document Planning, Document Management Management and Customer Self and Customer Self ServiceService

Instant response Instant response ratesrates

Easy for customers to Easy for customers to purchase through purchase through Internet Self Service Internet Self Service applications applications

Simple and fast Simple and fast reportingreporting

Link to Case Study Here:

PullmaxPullmax

Picanol GroupVIDEO

Microsoft Dynamics AX Industry Builder Solution

Value Proposition

Industrial Equipment Manufacturing for

Microsoft Dynamics AX provides an integrated,

adaptable business solution that can help you

optimize production, increase profitability, and grow

your organization while winning against global

competition.

Solution Benefits

Efficient Operations

• Lean shop floor and beyond

• Doing more with less: spare parts and in-process

• Managing clusters

• Efficient RFQs

• Visible profitability

Extending the Business• Machines or systems

• Installation services

• Life cycle support

• Deploying a global network

• Managing and improving ingenuity

• Team-based development

• From clusters to networks

• Connecting digital equipment

Competitive Innovation

ServiceInstallBuildSource andEngineer

Solution Scope

• Sales automation

• Sales configurator

• Advanced quoting

• Project mgt.

• Engineering change mgt.

• Product life cycle mgt.

• Content mgt.

• Compliance mgt.

• Quality mgt.

• More…

• Project planning

• Outsourcing/ subcontracting

• Mfg. planning

• Cluster collaboration

• Capacity planning

• Inventory mgt.

• Quality control

• Product mgt.

• Collaborative design

• More…

• BOMs and routings

• Production planning

• Production scheduling

• Production control

• Subcontracting

• Work order mgt.

• Lean mfg.

• Configuration

• Shop floor data collection

• Quality control

• Costing

• Collaboration portals

• More…

• Transportation mgt.

• On-site install mgt.

• Project mgt.

• Document mgt.

• Collaboration mgt.

• More…

• Professional service mgt.

• Spare-parts planning• Enterprise asset mgt.• Warranty mgt.• More…

Quote and Bid

Solution Map

A Solution to Help You Hurdle These Roadblocks

Gain momentum from competitive innovation of

products, processes, and services

Extend operations globally and increase

life cycle support

Manage operations and increase efficiency from

quote to delivery

Hub and Spoke Solutions

PLM

Sales Automation

Cluster Mgt.

Project Mgt.

EAM

Manufacturing

Service Mgt.

Warranty Mgt.

Dispatching

As-Built Documentation

CEOPain How do I deploy global operations efficiently?

Problem Will operations be connected to help ensure smooth exchange of information?

Visualize Solutions What if you could implement a system that would begin to lower your manufacturing costs in 3 to 6 months?

Spare Parts Planning

Service Mgt.

Warranty Mgt.

Dispatching

As-Built Documentati

on

Spare Parts Planning

Division and Plant Level “Spokes”

Save Time, Resources, and Money

• Enhance production efficiency using strong, flexible planning and scheduling tools

• Gain insight to optimize “lean” production, avoid bottlenecks, and manage process improvement

• Improve inventory management to minimize costs

Increase Innovation for a Competitive Advantage

• Offer customized products more quickly and cost-effectively

• Better coordinate sales, design and production processes, and information

• Provide more innovative service delivery

Extend Your Business

• Manage the entire product life cycle for opportunities to increase service and life cycle support

• Link multiple locations and inventories for greater efficiency

• Expand globally

Maximize Your IT Investment

Industry-specific functionality and powerful customization tools give you a solution tailored to your exact needs—with a faster ROI.

Integrated

Smooth links with the full range of Microsoft products and guidance from Microsoft Dynamics Support Services mean a better return on your overall IT investment.

A single, flexible architecture offers the ability to easily scale your IT infrastructure, so the solution can grow with your company.

Adaptable at an attractive price

Scalable

Maximize Your IT Investment

Rapid, Positive ROI• Faster ROI• Recent independent ROI research

– 75% positive ROI within 23 months– 56% reduced staffing costs – 44% reduced IT costs versus legacy systems – Other cited benefits: improvements in inventory

turns, delivery times, productivity, and working capital

From a study by Nucleus Research Inc., The Real ROI from Axapta. Research Note E116, October 2004

© 2006 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

© 2006 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.