Zws webinar september 2012 operational excellence series v14
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This document provides an agenda and overview for an operational excellence webinar. The webinar will discuss the three main business disciplines involved in operational excellence - ERP, CRM, and PLM. It will also discuss how implementing PLM can help companies achieve operational excellence even as small startups, using medical device company ProNova Solutions as an example. The webinar will include a demonstration of how Agile PLM can help manage product data and integrate with ERP systems.
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Zws webinar september 2012 operational excellence series v14
- 1. Welcome to the Operational Excellence Webinar AGENDA •The 3 Business Disciplines •The Pro Nova Story •Learn more Zero Wait-State Confidential 1
- 2. 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
- 3. 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
- 4. 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
- 5. 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
- 7. How did Team USA get to the finish line ahead of all others? Zero Wait-State Confidential 7
- 8. Team USA focused on the baton hand off in practice- remember 2008? Zero Wait-State Confidential 8
- 9. 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 Silos? What Silos? Zero Wait-State Confidential 9
- 10. 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
- 11. 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
- 12. A Large Company with Gold Level Operational Excellence • ERP I have to have accounting…… • CRM We have got to keep track of customers… • PLM What about PLM? Zero Wait-State Confidential 12
- 13. Apple Delivers Gold medal business performance with…. Zero Wait-State Confidential 13
- 14. 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
- 15. 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
- 16. 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
- 17. 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
- 18. 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
- 19. 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 Zero Wait-State Confidential 19
- 20. 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.” Zero Wait-State Confidential 20
- 21. 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
- 22. Now let’s show you an Agile PLM Demo As Is – Silos of Product data Possible To Be – Let’s see an Agile PLM demo Zero Wait-State Confidential 22
- 23. The Value of PLM Improvement Enabling Business Performance On Time/Budget 30% to 60% Improvements Revenue Time to Volume 15% to 50% Customer Service Improved Benefits Contract Penalties 10% to 30% Material Costs 1% to 5% Cost Labor Efficiency 10% to 30% Scrap and Rework 25% to 50% Compliance Improved Risk Quality Improved Copyright © 2012, Oracle and/or its affiliates. All rights 23 reserved.
- 24. 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 Zero Wait-State Confidential 24
- 25. Use Agile PLM to ANALYZE PRODUCT COST and COST TRENDS 8,000 Different 7,000 2011 Cost Profile 6,000 Approaches 5,000 Depending on 4,000 Cost Category 3,000 2,000 2012 Cost Profile 1, 0 0 0 0 al bs ic p. Fa d an om Ad ch B .C PC l ue Me c Ele Va Mechanical & PCB Fab Hi $ Electro/Optic Low $ Electronic Contract Mfg. Value Add - Good Volume Impact - Some Volume Impact - Little Volume Impact - Good Volume Impact - Design-for-Cost, DFM - Second Sourcing - Industry Pricing - Design-for-Cost, DFM/DFT - Tooling - Change Technology - International Sourcing Spot Component Trends, Monitor End-of-Life, Forecast Technology Adoption
- 26. SUPPORT ACCELERATED ERP IMPLEMENTATION Documents Manufacturers Accts. Receivable PLM Items Accts. Payable PLM Can Be Deployed PLM BoMs PLM Purchase Orders Independently of ERP: PLM PLM Stockrooms - One-Way Flow of Data PLM PLMSuppliers - Well Defined Data Set - Agnostic as to ERP Destination PLM Orders Sales - Frequent (or Real Time) Updates PLM Customers Only Upon ECO Release PLM BoMs BoMs PLM Items - Parent P/N ERP Accts. G/L “PIP” Adapter - Component P/N ERP (Agile Off-the-Shelf - Quantity Per Items ERP Product Integration Pack) Bi-Di if Needed (ie: Sierra Atlantic) or Internally Developed - Part Number (any) - Revision PDM-to-ERP Interface Application(s) - Description …etc. Make “Big Bang” ERP Implementations Possible, and Support ERP Migrations
- 27. Operational Excellence - Business Processes for Product Development - Enabled by PLM Design Release Process Costing Analysis Change Process Program and Portfolio Analysis Quality Process Connection of PLM BoM Items to ERP BoM Items Zero Wait-State Confidential 27
- 28. 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 Zero Wait-State Confidential 28
- 29. 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 • sammann@zerowait-state.com Zero Wait-State Confidential 29
Editor's Notes
- Operation excellent – It is a philosophy, and the key is Performance metrics. People also discuss best in class, which stems from best practices and good business outcomes
- Our experience is that many SME’s - can not be complacent cannot be mediocre- No one can be complacent and accept mediocrity or this is just the way we do things here
- Put more meat here- I can’t control the cost of oil, but I can control my operational infrastructure and processes
- For Manufacturing companies, these are the big 3 disciplines. Since we are focusing on PLM, lets look at a product’s life cycle over time and see how these disciplines are used
- Pause- inside this use graph are also boundary layers between all three systems, that require information to be exchanges or passed between PLM and ERP and CRM to PLM or ERP, let’s investigate that with an analogy from the womens 4 x 100 olympic relay race
- Congrats to Team USA for their victory in the 4 x 100 relay.
- Even if you have the right infrastructure or systems in place, passing information between them “ tests” the limits of those systems and processes. Modern CRM PLM and ERP systems can communicate, and Pro Nova will be discussing that in their presentation
- Many companies have these issues in product development because they are doing PLM without a comprehensive PLM technology underneath the business processess. They may have CRM and ERP, but the PLM discipline is an sad hoc siloed infrastructure of microsoft spreadsheets and simple PDM systems
- Looking at our earlier picture of a product lifecycle and layering in the “ batons” of information that need to be passed a certain stages in the lifecycle.
- A more detailed view of a complete product structure or full product record in PLM the as designed BOM
- Let’s take a look at a large company you are all familiar with, and see what they have for driving operational excellent and product velocity
- Apple’s performance metrics are outstanding. At the apex, is shareholder value, the largest valuation in with world – A World Record
- It’s a race – winner has the most velocity to market , PLM helps you gain the velocity – Platform products , organized in PLM – Compared that to the siloed operation – 2 – 3 years to get a product to market - OPERATIONAL Excellence!
- If I were a small the Medium enterprise executive, I would be asking these same questions… we just talked about Apple how can you compare yourself to Apple – Operational excellence
- Adam introduction slide
- Thanks Adam, now let’s take a brief high level view of Agile PLM with a 15 minute demo from Mike Halladay, who worked on implementing Agile at Pro Nova Solutions with Adam and the team there
- Thanks Mike, now we all know to invest in anything we need to have an ROI prepared for the CFO. And it had better do 1 or all of these three things – increase revenue, decrease cost or mitigate risk. You can see the details of some sample improvement metrics with PLM.
- Now I would like to introduce Zero wait state’s chairman, Paul Peck and have Paul discuss a couple of success stories with Agile PLM in terms of the reducing costs with Bom information and also empowering ERP with the right bom information from Agile
- Thanks Paul- those were great stories. Now PLM is not only about the as designed BOM or but a complete product record and the automating the associated business processes around the product record. Many people implement PL just to automate their change processs or quality process, but they should have road map to phase in all of these processess over time Tie this back to Pro Nova solutions road map
- Mention Pro Nova story – and other 50 companies that have implemented PLM with ZWS, small medium and large, Walking – web site blogs , presentations, videos If you like what you heard and saw today, and want to start faster – jogging – these options
- Our purpose is to help you achieve gold level operational excellence! Feel free to contact us – either me directly or thru our web site.