Nils Johansson, Volvo Cars, presentation nr.2
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  • NILS: The BIG danger here is that our business case is simultaneously justifying the changeover of applications and the use of a new version of ENGDAT. So far we have NO REASON to change to ENGDAT v3, unless the proposed new applications are required by ENGDAT AND they are cheaper and faster. We MUST add some information to explain how v3 will save money - less missing data, fewer files need to be re-transmitted, faster to market because data was exchanged more promptly, and so on. Until your business case can show these kinds of improvements, it cannot show a reduced cost to the company.
  • In the United States, “EDI” (Electronic Data Interchange) means exchange of forms for accounting, contracts, and pricing. It does not mean engineering data. So I have replaced it and “XMTD” with “Engineering Data Exchange”. This diagram tells me that (from left to right) the “EXTER” system creates an ENGDAT v2 file which is sent through a firewall to Volvo IT. Volvo IT uses WSS secure internet application to transmit the ENGDAT v2 files through the firewalls of partners, who will input the files into their own systems. I could also read the diagram from right to left in a similar way.
  • In the United States, “EDI” (Electronic Data Interchange) means exchange of forms for accounting, contracts, and pricing. It does not mean engineering data. So I have replaced it and “XMTD” with “Engineering Data Exchange”. This diagram tells me that (from left to right) the “EXTER” system creates an ENGDAT v2 file which is sent through a firewall to Volvo IT. Volvo IT uses WSS secure internet application to transmit the ENGDAT v2 files through the firewalls of partners, who will input the files into their own systems. I could also read the diagram from right to left in a similar way.
  • Finally, we can conclude (hopefully) that there is a reduction in the annual costs. If there is, we want that reduction to be greater than the one-time changeover costs, because the required payback period for Ford management to consider a project is 12 months at this time. If both are true, we can conclude that we have a sufficiently strong business case to propose to management.

Nils Johansson, Volvo Cars, presentation nr.2 Nils Johansson, Volvo Cars, presentation nr.2 Presentation Transcript

  • SASIG XMTD WG Gothenburg May 2004 Nils Johansson Volvo Cars IT, PD Odette Sweden E X CHANGE M ANAGEMENT OF T ECHNICAL D ATA Business Case for XMTD at Volvo Car Corporation ENGDAT Abstract  ENGDAT Package  Sender Receiver
  • From concept to components XMTD Business case study
  • Volvo Cars Body Components is the Competence Center within Volvo Car Corporation for forming and joining of automotive body components in metallic materials as well as analysis and prematching of the complete body-in-white. We are an integrated part of the Volvo Car Corporation processes.
  • Product Range
    • XMTD Mission Scenario
    • Support the Automotive Process “From Concept to Component Development” with global automated application with eXchange Management of Technical Data mechanisms to decrease business Marginal Cost with focus on
      • Globalization Lead time XMTD Cost
  • Globalisation ?
  • Lead Time
  • XMTD Cost Physical Media https Secure Internet ISDN ENGDAT Estimated Transfer Capacity Estimated Investment Estimated Automatization ENGDAT V3
  • Local Standard Global Standard Interface Count 1 3 6 Interface Count 2 3 4 6 8 10 12 15 28 45 132 Business Drivers – Logical View Order of n(n-1) Order of n XMTD Application Count = 12
  • Business Case : Engineering Data Exchange for Volvo Cars Corporation
  • ENGDAT ISDN https Secure Internet Partner XMTD User interface XMTD User interface Volvo Cars Physical Media XMTD: Current State
  • Volvo Cars 1900 Engineers XMTD connections Volvo Cars 1900 Engineers XMTD connections
  •  
  • ENGDAT ISDN https Secure Internet Partner XMTD User interface XMTD User interface Volvo Cars Physical Media ENGDAT https Achievement of our Mission
  • Example of how to calculate potential savings on improvements in XMTD transmission on OEM and Tier 1 level
  •  
  • ESTIMATED Saving cost components ENGDAT V3 SEK Annual Savings: 1 % of Global Supplier Choise Savings 2 184 000 SEK/Year 1 h/transfer Leadtime savings “From Concept to Component” 1 680 000 SEK/Year Changing from 80% of ENGDAT ISDN and 80% of Physical Media to https 900 000 SEK/Year TOTAL: 4 764 000 SEK/Year Changeover (One-time) Costs: Rewriting from ISDN to https ( shared 50% by Volvo Truck) 470 400 SEK TOTAL CHANGEOVER COST: 470 400 SEK
  •  
  • General Conclusion: Most OEM:s and suppliers will save some of the marginal XMTD Cost already the first year by using ENGDAT V3 exchanges with their suppliers Annual Savings: 4 764 000 SEK One-time Changeover Costs: 470 400 SEK Ford requires the payback period to be one year or less. Since 470 400 < 4 764 000 , Ford estimates recover all of its investment in one-time costs in less than one year. Therefore we estimate Ford will agree to finance the conversion of the Volvo Cars User Interface for XMTD from ENGDAT v2 to ENGDAT v3.
  • Soft Reasons for ENGDAT V3
      • ENGDAT V3 will provide web-based functionality that improves on ENGDAT V1 / 2 while preserving the data content that the partners expect .
      • ENGDAT V3 provides the ENGDAT metadata needed by Volvo's XMTD user interface .
      • Volvo customers today using ENGDAT V1 / 2 will soon require ENGDAT v3 , so Volvo must be able to provide this format .
  • Nils Johansson Project Leader EDI +46 454 264166 [email_address] Thank You for your Attention!