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We Save Lives! KSS PLM Transformation Journey Aboard ARAS 1

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We Save Lives!

KSS PLM Transformation Journey Aboard ARAS1

AGENDA2

Key S

afe

ty S

yst

em

s

Overv

iew

Key Safety Systems Overview

Where Were We – The Past & Challenges

Why Aras for KSS – The Value Proposition

Where Are We Now – The Present & Efficiencies

Where Are We Headed – The Future Vision

Adopting Aras - Lessons Learnt / Summary

Key Safety Systems (KSS) Overview

Global automotive

Tier 1 Supplier

manufacturing

active and passive

safety systems

- Passive Safety:- Inflators

- Seat Belts

- Air Bags

- Steering Wheels

- …

- Active Safety- Collision

Prevention

- Lane Departure

Warning

- …

KSS Global Presence4

Continent Country Location Type

Asia China Huzhou Plant

Asia China Shanghai RHQ & Tech. Center

Asia India Gurgaon RHQ

Asia Japan Yokohama RHQ

Asia South Korea Seongnam Manufacturing

Asia Thailand Bangplee Manufacturing

Europe France Paris RHQ

Europe Germany Raunheim RHQ & Tech. Center

Europe Italy Colleferro Plant & Tech. Center

Europe Italy Orbassano RHQ

Europe Italy Tregnago Plant

Europe Romania Arad Plant & Tech. Center

Europe Romania Brad Plant

Europe Macedonia Kicevo Plant

Europe UK Carlisle Plant

North America Mexico Juarez Plant

North America Mexico Valle Hermosa Plant

North America USA Brownsville, TX Plant

North America USA Greenville Plant

North America USA Knoxville, TN Plant

North America USA Lakeland, FL Plant & Tech. Center

North America USA Sterling Heights, MI WHQ & Tech. Center

BMW Fiat Hyundai SGM Suzuki Diamler GM VW

Chrysler Ford Isuzu SGMW Toyota PSA SVW Hino

Jaguar Ferrari …

Customers

KSS Engineering & PLM Overview5

Global Design, Engineering & Release Organization Overview

6 Technical Centers distributed across NA, EU and Asia

Global programs require collaboration, data share, and Follow-the-sun Design support

Meet customer (OEM) demands

Increasing product complexity (Mechanical, Electrical, Electronics and Controls Software)

Increasing demand for localizations to win regional business

Multiple CAD systems (NX, CATIA)

Meet internal requirements

TeamCenter standardized for Product Data Mgmt (PDM)

NX and Catia V5 standardized for Product design CAD

AutoCAD standardized for manufacturing, facilities, other

Active Safety is “New Product Introduction”

Innovation focused

Passive Safety is “Sustain & Grow Existing Product Portfolio”

Operational Excellence, Standardization, Reuse focused

AGENDA6

Where

Were

We?

The P

ast

& C

hallenges

Key Safety Systems Overview

Where Were We – The Past & Challenges

Why Aras for KSS – The Value Proposition

Where Are We Now – The Present & Efficiencies

Where Are We Headed – The Future Vision

Adopting Aras - Lessons Learnt / Summary

Where were we? 2012 Perspective7

Teamcenter Global PDM

N.A. Vaults

(CAD / JT / Other

Replication

(EU, Asia)

Multiple, Regional,

Legacy ERPs

eMatrix NA

eMatrix EU

NA PDM Admin EU PDM Admin Asia PDM Admin

Manual entry

of EBoM into

multiple ERP

systems by

PDMs

Manual entry

of EBOM in

eMatrix (from

TC CAD BOM)

by PDMs

• Legacy systems, unsupported – HIGH BUSINESS CONTINUITY RISK

• TeamCenter limited to designers. ENGINEERS MAINTAINING BOMS IN EXCEL!

• eMatrix not integrated with TC or ERP systems. EBOM creation was manual – MAJOR DATA INTEGRITY ISSUES!

• Multiple ERPs, regional, manual processes for PDM – PLM – ERP information exchange. HIGH ERROR POTENTIAL!

• Enterprise collaboration non-existent. Manual and sequential processes. Manufacturing SURPRISED BY BOM CHANGES

• Quality, PMO / PM, Capacity Planning, Cost Estimating, … - Manual / Excel based:

• NO REAL TIME VISIBILLITY FOR DECISION MAKING

• Technical, Architectural & Process challenges limit ability to support strategic business vision

• “3D BASED RELEASE, GLOBAL DESIGN & ENGR.

Our PLM Roadmap

• New capabilities

• Lower impact or higher effort implementations

• Efficiency improvements

• Standard reporting

• Automatic metric updates

• Software Control

• MRO, Plant Simulations

• Equip. Standardization

• Financial

• LIMS

• Prototype Builds

• ERP

• Project & Portfolio Mgmt

• Req’ts Mgmt / Issues Management

• Costing

• Standard line designs

• Work Instructions

• MBOM

• SharePoint Integration?

• Supplier RFQ Mgmt

• Supplier Launch Tracker

• Data Migration / Customer RFQ Mgmt

• Document Control / Workflow Mgmt / Change Requests / Release Mgmt

• Data/IP Security

• TeamCenter PDM – UG & Catia Data Mgmt

• Eng BOM Mgmt – Pilot Running

• Visualization

Foundation was kicked

off in 2011 and

successfully completed

in 2013 with

TeamCenter UA PLM

Change Management – 2013

Approx. $2M capital expense +

$0.25M operational expense +

Complete reliance on Siemens PLM

Services for implementation support

NOT SUSTAINABLE

FOR KSS!

Potential Added CapEx / OpEx for

subsequent phases

Potential Added CapEx / OpEx for

subsequent phases

Potential Added CapEx / OpEx for

subsequent phases

Potential Added CapEx / OpEx for

subsequent phases

Potential Added CapEx / OpEx for

subsequent phases

Potential incremental capital /

operational expenses for

subsequent phases with limited

internal operational control on

implementation

Challenges with our PLM Platform in 2012

AGENDA10

Why A

ras

for

KSS

The V

alu

e P

ropo

sition

Key Safety Systems Overview

Where Were We – The Past & Challenges

Why Aras for KSS – The Value Proposition

Where Are We Now – The Present & Efficiencies

Where Are We Headed – The Future Vision

Adopting Aras - Lessons Learnt / Summary

Why Aras? – 2013 Assessment

Why Aras? – 2013 Assessment

Why Aras? – 2013 Assessment

Why Aras? – 2013 Assessment

TeamCenter:

• Too expensive, cost prohibitive & complex for KSS enterprise use:

• Product Management, Quality, Operations, Sourcing, Procurement

• Suppliers, Manufacturing, Outside Design & Engineering

• Executives lack Visibility

• KSS processes constantly evolve.

• TeamCenter is restrictive in process modeling capabilities

• Maintaining, customizing and integrating is time consuming and costly

• Incremental Cost:

• Minimum $1M in License Fees, $200K in Maintenance License Fees,

Implementation cost - TBD

ARAS:

• Software is “Open Source”

• We focus our $$$ to develop targeted solutions using ARAS Business Process

Modeling / Service Architecture Framework

• Configure vs. customize; Microsoft .NET standards

• Basic & Premier Subscriptions available for advanced functionality

• 100K - 250K/annum – scales up to 1000+ users

Why Aras? – 2013 Assessment

TeamCenter:

• Too expensive, cost prohibitive & complex for KSS enterprise use:

• Product Management, Quality, Operations, Sourcing, Procurement

• Suppliers, Manufacturing, Outside Design & Engineering

• Executives lack Visibility

• KSS processes constantly evolve.

• TeamCenter is restrictive in process modeling capabilities

• Maintaining, customizing and integrating is time consuming and costly

• Incremental Cost:

• Minimum $1M in License Fees, $200K in Maintenance License Fees,

Implementation cost - TBD

ARAS:

• Software is “Open Source” & Free!

• We focus our $$$ to develop targeted solutions using ARAS Business Process

Modeling / Service Architecture Framework

• Configure vs. customize; Microsoft .NET standards

• Basic & Premier Subscriptions available for advanced functionality

• 100K - 250K/annum – scales up to 1000+ users

Above all, ARAS is simple and intuitive enough for the business to be

empowered and take operational control of the deployment without heavy

reliance on IT as long as there is structured change management and release

governance.

For a company like KSS, where CHANGE is a constant, this was very liberating!

AGENDA16

Where

Are

We N

ow

Th

e P

rese

nt &

Eff

icie

nci

es

Key Safety Systems Overview

Where Were We – The Past & Challenges

Why Aras for KSS – The Value Proposition

Where Are We Now – The Present & Efficiencies

Where Are We Headed – The Future Vision

Adopting Aras - Lessons Learnt / Summary

Before We Had Aras……17

14+ Year Old, Out of Maintenance, eMatrix PLM

Linear, First In - First Out Process.

Changes Made without Full Impact Analysis

Manufacturing and Purchasing Not Involved Until Late in Launch Cycle

4hrs of Engineering Overhead per Change

Costing Performed Off-Line

Teamcenter CAD Data Management – No Integration

High Levels of Bureaucracy

Project Charter18

Replace eMatrix with a Modern PLM

Engineering Change

Supplier Change Requests (SREA)

Deviations

Document Management

Integrate With Future Systems

Globally Accessible, Single Database

Minimal User Footprint

What We Wanted19

Flexible but Disciplined Enterprise Change Process

Reduced Change Bureaucracy, Enhance Accountability

Full Impact Analysis

Early Extended Team Involvement

Maintain Teamcenter as Global CAD Manager

Best in Class

Too Risky to Change

Integrate with Aras

What We Decided20

Derivative of CMII

Maintained Basic CMII Structure

Removed CMII Bureaucracy

Renamed PR to DR

Issues and potential changes

identified. Approval to investigate.

DRChange

investigation & approval

ECRCreate &

release the change

ECN

New Change Process Benefits21

Forces Execute as Planned Methodology

Captures All Effects of Changes

Earlier Manufacturing and Purchasing Involvement

Costing Captured in Process Flow

Auto-Routing via Project Teams

More Flexible Process Flow

Mix and Match Changes

Revise Order

Release to Multiple Release Levels on One Change

Teamcenter Integration22

POC Showed Strong Integration was Feasible

Developed

Complete BOM Integration

Functional Usage Showed Light Integration More

Desirable.

New Part Numbers Create TC Objects (2D & 3D)

CAD Pushes Links (2D & 3D) and Drawings Back to Aras

Change Management Specification23

Spent Too Little Time on Spec

Minimal Internal Aras Knowledge

Poor Specs Created an Iterative Approach To Development

Scope Change Happened Daily

Desired Method To Ensure Complete Changes

Thought We Could “Repurpose” 9.3 Express ECO Impact

Matrix

9.3 OOTB Impact Matrix Allowed for Incomplete Changes

Impact Matrix24

“Repurposed” from Aras 9.3 Express ECO

Significantly Enhanced Rolls all Changes to All Affected Top Level Assemblies. Prevents

Incomplete Changes.

Reconfigured to Show KSS Specific Information

Reconfigured Data Display. Full BOM View.

Cannot Remove Non-Required Information

Powerful. Captures Everything. Core Of Change Process.

Created Method to Combine Multiple ECRs to One ECN

Every Change Caused Problems With Base Code. Source of Significant Project Delay

Impact Matrix Video

KSS CONFIDENTIAL

25

Other Processes26

Modified Existing DCO Process

Created New SREA and Deviation Workflows

Created Design Work Order (DWO) For CAD Work

Stand Alone

Attached To An ECR (Manually Generated)

Attached To An ECN (Auto Generated)

Data Migration27

Target: 100% Availability of Old Data

>500,000 Objects Moved

All Relationships MaintainedE-Matrix Oracle Database

Tables:

• 191 Tables

• 36.7 million rows

• 1.87 GB of metadata

(1917.83 MB)

Migrated Data

• 150,000 Document Numbers with

Multiple Revisions.

• 108,000 Part Numbers with Multiple

Revisions.

• 52,000 Engineering Changes VAULT

E-Matrix Vault Size = ~550GB

~300GB in Raunheim

~250GB in Sterling Heights

Data Migration28

Created and Debugged Scripts for Migration

Scripts Iterated to Validate Data

<0.2% Data Failure Rate

Launch Plan29

User PC Configuration

PC Configuration Required

No Central Means to Push Out .Net Settings

Created Per-Site Push Methods

Training

Train, Train, then Train Some More. Expect a World Tour

Develop Local Experts (Hard)

After Launch, More Training

Created Custom Help File

Launch Plan30

Big Bang vs. Staggered?

Large Amounts of Reuse Across Product Lines

Pilot Projects Showed Difficulty of Incremental Approach

Chose Big Bang

T- 6 WeeksWeekly

Communications Begin

T – 7 DayseMatrix Change

Cutoff

T – 3 DayseMatrix

Shutdown (6pm EST). Abandon

Running Changes

Final Data Migration

Aras Global Launch, 8am China Time

Launch31

Data Migration Available 1 Week Before Planned

Launch Date

Impact Matrix on Complex Assy’s Took too long to

Load

Launch32

Impact Matrix Client-Server Interactions Rewritten

Load Time Reduced by 93%

Launch33

Countdown to Launch Started at T-minus 6 Weeks

Weekly Email to World

Users Notified of Launch Plans

Training On-Going

Transition

10 Nov: eMatrix Change Cut-Off

14 Nov: eMatrix Shutdown. ~110 Changes Abandoned.

16 Nov: Final Migration Completed

17 Nov: Aras Global Launch

Launch34

Quiet ≠ All is Well

2-3 Weeks for Issues to Arise

IT Issues with Aras 9.3 (IE 11, Access 97)

Training and System Understanding

Failure to Account for Effects of Cancelling Changes

Migrated In-Change Parts without Associated Change Objects

Created Errors in Release States

Still Being Cleaned Up

Users Find Creative Ways to Break Things

Steady State Usage35

User Overhead Greatly Reduced.

Examples of ECRs Executed in < 1 hr.

Overall Change Time Reduced 28% and getting better

Manufacturing and Purchasing Involved In All Changes

Cost Process Visible and Trackable

TC Integration Working Well

Users Say Aras Is A Significant Improvement

Nobody Wants to Go Back To eMatrix

Change Efficiency36

28% Improvement

Continuous Improvement37

>150 Continuous Improvement Actions Identified

Initial Prioritization Complete – Funding Established

Embrace User Change Requests. Do them Quickly

Lessons Learned38

Create a Good (Not Perfect) Spec Before Starting Embrace Changes Before and After Launch

Bad Spec = Scope Creep and Delay

Do Data Migration Early Test with Real Data

Train, Train, Train Local Experts

Expect Problems Can’t Test For Every Scenario

Users Will Always Find A New Way To Break It. Be Ready To Fix It.

Not Everyone Is An IT Wizard

AGENDA39

Where

Are

We N

ow

Th

e P

rese

nt &

Eff

icie

nci

es

Key Safety Systems Overview

Where Were We – The Past & Challenges

Why Aras for KSS – The Value Proposition

Where Are We Now – The Present & Efficiencies

Where Are We Headed – The Future Vision

Adopting Aras - Lessons Learnt / Summary

Enabling the Connected Enterprise – Realizing Our PLM Vision with Aras

Deploy ARAS PLM /

BPM 100% Web-Application

Web-Services

Open Source PLM solution

Subscription model for advanced capabilities

Service Oriented Architecture (SOA)

ARAS IS:

Multi-CAD

TC for CAD Data Management

(TC for Product Data Mgmt (PDM) only – NOT

PLM!)

Engineering (Change)

Process (EBoM)

Aras-TC Integration

2013/14

Scope

2014/15

Scope

Cost Estimation

(Price Information

Forecast) Customer & Prog. Mgmt

(Concept To

Manufacturing Product

Lifecycle)

Marketing &

Sales (Volume,

Price, Region)

Capacity Planning

(Plant Product

Data Sheet)

Quality (PPAP,

FMEA, APQP)Purchasing

(Supplier Launch Ttracker

Early Supplier Involvement)

Financial

(Annaul Ops. Planning,

Capital Appropriation

Request)

JV Partner

Collaboration

Other Business

Process Automation

EE Automotive Edition

ERP / MRP

Aras-ERP

Integration

Production Plant

Asset Mgmt

Manufacturing Process Planning

(MBoM / BoP)

Global Supplier Mgmt

& Collaboration

Product Portfolio

Mgmt.

2015/16

Scope

AGENDA41

Where

Are

We N

ow

Th

e P

rese

nt &

Eff

icie

nci

es

Key Safety Systems Overview

Where Were We – The Past & Challenges

Why Aras for KSS – The Value Proposition

Where Are We Now – The Present & Efficiencies

Where Are We Headed – The Future Vision

Adopting Aras - Lessons Learnt / Summary

Aras PLM Is Now A Critical Enterprise Solution in KSS

What Did We Learn? What are the Critical Success Factors?43

Drive the program TOP – DOWN:

It may start with Engineering, but it will spread to other process areas quickly

Get your Executives proactively updated and excited about what Aras can truly do for your enterprise

You will need their cross functional support as you traverse this journey

Traditional SDLC based development process does not work with Aras. Be more AGILE:

Meet, talk, mockup, review, revise, develop, Meet, ….

Keep reviews frequent – at least once per week and engage the business SMEs actively and often

Aras facilitates rapid mockups – Leverage it!

Have a blend of in-house dedicated team and implementation partner(s) with strong process expertise

It’s not just technology expertise

Partners must understand business processes so they can guide you through the configuration of Aras

When you go OFFSHORE for development:

Expect to lose efficiency, especially if you don’t have good internal AGILE processes

Do not underestimate:

Data migration, deployment & training challenges

Effective planning for ongoing maintenance, support, continuous improvement & release management

Subscription:

If you start with Open Source, make sure you understand pricing options for “Subscription” upfront

You will MOVE to a PAID SUBSCRIBER, Its not a “IF” but “WHEN”

Plan ahead and set expectations appropriately

We Save Lives!

Thank You!

We Save Lives!

www.keysafetyinc.com