NameTitleMicrosoft Corporation

Automotive Manufacturing

Agenda

• Automotive Market• Stakeholders and Business Issues• Microsoft and Automotive• Call to Action

Enable the global automotive industry to anticipate, innovate, and deliver world class products and

services through visionary technology leadership

Microsoft In Automotive ManufacturingVision

Top Automotive Supplier Countries

• U.S.A. (> 11,000)• Japan• China• Brazil• U.K.• Italy (~3,000)• India• South Africa• Spain• Australia• Germany• Mexico• France• Canada• Ireland (>1,000)

OEM Tiered Supply Chain

• Tier 1 – System Suppliers (e.g., engines)• Tier 2 – Sub-Assembly Suppliers

(e.g., brake component assemblies)• Tier 3 – Fabricators (e.g., brackets)

Aftermarket Manufacturers

Photos taken at AAPEX/SEMA shows; Las Vegas, NV – November, 2005

Motor Homes, Motorcycles, Travel Trailers, Bus Bodies, Truck Trailers, Etc.

Process Line, Machine Tools,Die, And Mold Manufacturers

Automotive And Parts Distribution

Retail And Service

Dealer Management

The Changing World Of Manufacturing• Dynamic industry with continuing change• New and evolving business practices

and processes• Much more than just managing inside the four walls of a

factory• Manufacturing is a key node in an increasingly diverse Supply

Chain

Manufacturers’ Challenges

• Global competition• Customer service level demands• Global capacity exceeds demand• Global supply chain participation

– Customers– Suppliers– Sub-contractors (Outsourcing)

• Profit margin contraction• Operational cost reduction• Accelerating new product life cycle• Regulatory and environmental requirements

Meeting The Needs Of All Stakeholders

Manufacturing

CEO

Sales and MarketingShipments

Customer Satisfaction Contract Acquisition

Material UtilizationProductivityChangeovers

Staffing

Planning and ControlDemand Variances

SchedulingOutsourcing

Company ProfitabilitySupply Chain

CompetitivenessCost ContainmentBusiness Analytics

EngineeringProduct Design Collaboration

Supplier ViabilityStandards and Specifications

ITData Requirements

EDIData Integrity

System Availability

Business Issues

• Cost Reductions• Outsourcing/Foreign Manufacturers• B2B Transactions and VAN Alternatives• Shortened Time-to-Market• Supplier Consolidation• Collaborative Designs

– Product Design• Burden shifting in the supply chain

– Product Data Management and Product Lifecycle Management (PLM)

Business Issues

• Compliance– TREAD Act– European Parliament End-of-Life 2006– RFID/Electronic Product Code (EPC)

• Charge backs, revenue collection, out of stock, brand protection, shrinkage, counterfeiting, BOM tracking, lot tracking, operational and handling costs, shipment visibility, QA, component inventory visibility, finished goods visibility, planning, synchronization

• Issues include ROI, cost, metal, liquids

Business Drivers

• Lean Manufacturing• Complex Supply Chain Relationships

FORD General Motors Chrysler

Johnson Controls

Excel/Atwood

R-R Spring

Specialty Screw

Canadian Fab

Douglas and

Lomason

Miliken and Company

Technotrim

Lear Favesa

Collins and Aikman

Textileather

Rockford Spring

Dudek and Bock

Spring

Business Drivers

• Geographical Trends– China

• Local ownership 50%• Projected to be second largest

market by 2015– Slowing in late 2004

• $12B invested since 1994 for assembly plants• Issues: Steel consumption, currency

– U.S.• Michigan

– Forth highest high-tech workforce in the nation– 85% of U.S. automotive R&D

• Southeast– Mercedes, Honda, Toyota, BMW, Hyundai, Ford, GM, Nissan, Michelin, etc.– 2.5M produced by 2005 (750K in Alabama)

Microsoft In Automotive

Delivering The Total Solution

Supply Chain Management

Customer Relationship Management

Enterprise Resource

Management

Analytics

Solution Categories:Inventory, Sales Orders,

Purchasing, E-commerce, Retail Management,

Manufacturing

Solution Categories:Financials, Human Resources, Payroll, Project Management

Solution Categories:Sales, Marketing, Service

Solution Categories:Analysis and Reporting, Forecasting, Budgeting, Consolidation

Business Solutions

Platform

Client and Productivity

Manufacturing Solutions Scope

Plan Source Make Deliver

Demandplanning

Supply chain collaboration

Product management

Engineering

Change management

Manufacturing resource planning

Capacity planning

Forecasting

Available/capable to promise

More…

Inventory management

Procurement

Vendor management

Quality control

Outsourcing/ subcontracting

Purchasemanagement

Direct materials sourcing

Supply management

Product life cycle management

More…

BOMs and routings

Production planning

Production scheduling

Production control

Manufacturing order management

MRP

Configuration

Job scheduling

Shop floor data

Collection

Quality control

Costing

More…

Customer relationship

Management

Distribution

Management

Product configuration

Contract management

Catalog management

Transportationmanagement

Warehouse management

Customer self-service portal

More…

Microsoft Dynamics Vertical Industry Business Model

Core

Vertical

Core Manufacturing Core Retail Core Distribution Core Professional Services Core Public Sector

FinancialManagement CRM SCM Analytics

IndustrialEquip/Mach Government Healthcare Not-for-Profit

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Automotive ManufacturingTypical Product Needs

• Release Accounting• Integrated EDI and Bar Coding• Lean Manufacturing• Subcontracting• Contract and Supplier Management• In Line Vehicle Sequencing• Shop Floor Data Collection• Collaborative Design and Engineering

Microsoft Helps You Hurdle These Roadblocks

Improve customerservice while

increasing profitability

Increase productionthroughput whilereducing costs

Comprehensive and robustbusiness systems and technology

at an affordable price

Applications And ArchitectureAffordable Adaptability

Call To Action

© 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.