13 Apr03 -200623-05

Product Lifecycle Overview

Purdue University PLM Center of Excellence Rex LaRowe, Director - Industry Framework page 1 • EDS Confidential Agenda

• Introductions • Definition of PLM • The Problem • EDS’ Approach • Suggestions for PLM Center of Excellence • Discussions

EDS Manufacturing 13 Apr 2006 page 2 • EDS Confidential Management (PLM) Definition

PLM is defined as: • A strategic approach that applies a consistent set of business solutions that support the collaborative creation, management, dissemination, and use of product definition information • Supporting the extended enterprise (customers, design and supply partners, etc.) • Spanning from concept to end of life of a product or plant • Integrating people, processes, business systems, and information

PLM is not a definition of a piece, or pieces of technology.

Source: CIMdata

EDS Manufacturing 13 Apr 2006 page 3 • EDS Confidential Fundamental Concepts of PLM

• Universal, secure, managed access and use of product definition information • Maintaining the integrity of that product definition and related information throughout the life of the product or plant • Managing and maintaining business processes used to create, manage, disseminate, share and use the information.

EDS Manufacturing 13 Apr 2006 page 4 • EDS Confidential The Scope of PLM

Plus the business systems to make the PD process work with the Productrest of the company Lifecycle

EDS Manufacturing 13 Apr 2006 page 5 • EDS Confidential The Challenge for PLM

EDS Manufacturing 13 Apr 2006 page 6 • EDS Confidential It has been difficult to document impact of PLM on companies financial performance

This example opportunity and gap analysis identifies the specific operations improvements and associated opportunities.

Financial Statements Opportunity Operations Improvements

Quality and One Time regulatory 30 – 80% Manufacturing standards Charges compliance 25 – 65% Cost of Quality (prevention) improvement

10 – 75% Time to market Increase in revenue Sales 5 – 50% Sales

25 – 65% Cost of Quality (QFD) Income 30 – 70% Bill of Material accuracy COGS Unit Cost reduction 10 – 20% First Time Quality Statement 2 – 5% Warranty Costs

Reduction in 12 – 30% effort SG&A SG&A 24 – 50% Group technology

15 – 45% Engineering change order 20 – 60% Non-Recurring engineering R&D and Reduction in 20 – 55% Part proliferation engineering costs 90% Early defect detection Engineering 30 –70% Bill of Material 5 – 10% Lost Units / Lost Hours Shareowner Market Value Intangibles 15 – 35% Supplier rationalization Materials Sourcing component 20 – 60% Efficiency 30 – 80% Cost of Quality (appraisal) and Supplies standardization Supplier Effectiveness (quality, on-time delivery)

Balance Fixed Reduce capital 20 – 65% Outsourcing Sheet Assets expenditures 20 – 50% Return on assets

15 – 50% Production planning/utilization Accounts 16 – 40% Capacity utilization Source Receivable 25 – 50% Profitability EDS/A. T. Kearney - Confidential 30 – 85% Process Yields

EDS Manufacturing 13 Apr 2006 page 7 • EDS Confidential Technology Modernization

The technology Industry Model modernization process enables the transformation EDS’ A3 Architecture from the function specific

• Work Portal • Work applications and data stores FrontPl Lists Collab oratio TM ane n • BPM/ BAM Personalised • BI Visualisation Repor ting to an enterprise view of data CrossPl aneTM and a services-based Configurable

Orchestration E BPM/BAM Data Marts Business Operatio Integra Flows Rules nal T tion & Warehouses L Data Frame / Stores work D a t a approach toward business F BackPl l Processes / Datao / Messaging & Interface Services w aneTM s Standards Conf Enterprise igur Serv Integration EAI Meta-Data Transformations Sys / Cust atio ice Mgm applications. Model EII om n Des t Ada Ada Mgm k Ada pter pter t Ada pter s s Ada pter s pter spreadsheets s Point Ti voli spreadsheets s ts Methodologies

SAS Ni ku Support Soft Solut Patrol General MS Project Ledger DV Doctor Projec t spreadsheets Projec t spreadsheets Tracking NetCool Tracking ions NetCool System CA Data and CA Tools In the “Silos The “Re-” steps used of Technology” Re-Learn modernize the technology set ReReplacetire the foundation for a services ReRe-architectInterface approach toward the technology layers of an ReRe-faceHost ’s solutions. Re-ReArchitecthost

Aircraft CAS 1 1 Maintena Average CATTS 1 1 nce Re-factorPlace Flight Fare 4 1 CAPS Tracking KRONOS 1 1 Cargo CIRRUS/ OAG 2 1 CorporatRODEO Computing Styles, Patterns, Stacks Pillar 1 4 eGrdops DB PRISM 3 3 Project Mail STYLES OF COMPUTING IMPLEMENTATION PATTERNS REFERENCE STACKS Accountin 1 1 Ledger Rapid Classic 3-Tier W eb App g 1 2 MktDSS Rewards Nonstop Online Transactional Resumix 1 1 Revenue Market RevenueManage 1 1 OAGSWA ment OnBoard Optimizat 3 2 Event Processing Book SAASion 3 4 OSS Mart Schedule 1 3 People Classic 4-Tier W eb App .NET / ADE Reference Stack Planning Project W orkflow Spider 1 1 Accountin SWEEP 1 1 SWEEPg Tesserac 2 3 Traffic Traditional Batch t # of USPS 1 Connect 31 WIZARD 2 ions # of Historical Analytical Connect 31 4-Tier Integration App ions J2EE / RCF Reference Stack

Near-time Decisioning

Real-Time Decisioning

EDS Manufacturing 13 Apr 2006 page 8 • EDS Confidential Levels of Optimization

Level 1 – Siloed Optimization Level 1 – Siloed Optimization Business Units • Business processes are optimized and work well during normal operations. “Like” operations require duplicative systems and data

Level 2 – Aggregated Level 2 – Aggregated Optimization Optimization

Supply • Business processes are IPD Mfg Ops Chain Aftermkt grouped together to reduce duplication; and work well during normal operations. Does not solve enterprise investment & irregular operations issues

Level 3 – Cross Functional Optimization Level 3 – Cross Functional Supply Optimization IPD Mfg Ops Chain Aftermkt Warranty Incident • Business processes are grouped together; data Supplier Default is shared in context of the business situation. The customer & supplier views are optimized as well as the internal business structures

EDS Manufacturing 13 Apr 2006 page 9 • EDS Confidential There are several stages of maturity within an product development organization’s IT environment

IT Element Level 1 Level 2 Level 3 Level 4 Level 5 Initial Repeatable Defined Managed Optimized Infrastructure •Disconnected, slow, •Area solutions •Regional solutions •Common architecture •Single common, high- narrow pipe developed to manage developed to manage developed speed, wide increased load increased, integrated bandwidth, high load availability, flexible architecture deployed •Full supplier integration

Applications •Disconnected, •Major applications •Applications become •Single Bill of IT •Single integrated Bill Architecture uncoordinated, no choices limited to a more and more decided but not totally of IT with common version handful integrated – implemented versioning •Proliferation of complexity ensues •Varying versions of implemented •Limited to no applications as IT gains •Integration with same application still •Full supplier integration acceptance suppliers commences deployed integration •Supplier integration more robust

Data •Individually developed •Virtually all data •File naming •File naming •Single formatting and stored data files, moves to electronic conventions conventions, format, design, integrated and formatted per engineer •Site-specific data promulgated storage, retention and globally accessible preference (hard copy format, storage and •Data format, storage, availability •Common tagging for included) retention promulgated retention and standardized globally easy search capability •File naming availability •Tagging conventions •Relational tagging to conventions absent standardized across immature but associated dies, jigs, regions burgeoning •Data availability cost, test, sourcing, across engineers financial, etc. limited •Full supplier integration

Applications •CMMi 1 •CMMi 2 •CMMi 3 •CMMi 4 •CMMi 5 development

Operations •Unique ops processes •Each site has •Common metrics •Global common •Fully deployed ITIL by site documented ops developed and processes, tools and processes •No metrics developed processes deployed metrics developed or captured •Metrics developed at •Tools and processes •Delivery •No common ops tools site level continue to be site- transformation deployed •No common ops tools specific commences deployed

EDS Manufacturing 13 Apr 2006 page 10 • EDS Confidential EDS’ Approach

EDS Manufacturing 13 Apr 2006 page 11 • EDS Confidential There are natural dependencies in moving towards Level 5 product development IT maturity

Knowledge Management

Automation and Integration Common process, tools and workflow

Data Management

Infrastructure

Exemplary

Complex applications and data architecture subverts movement towards an agile and easily maintained base upon which companies can transform critical product development processes

EDS Manufacturing 13 Apr 2006 page 12 • EDS Confidential The journey from the current PLM state and the future has several challenges

Current State Challenges Future State

$ Requires significant funding

Has long project lead times

Subject to inherent risk of  large COTS deployments

Must drive business value $ Over 300 Systems along the way Under 20 Systems

Requires substantial business involvement • Large monolith legacy systems – • Global, standard solutions (over 175 mainframe apps) • Primarily COTS based systems based on industry best practices • Regionally developed systems with Balancing global and regional • Highly rationalized Bill of IT, Bill of hardwired business rules needs • Partially rationalized Bill of IT, Bill of Architecture, Bill of Infrastructure Architecture, Bill of Infrastructure • High degree of uptime and minimal • High degree of uptime but costly to cost to change change

Actual client example

EDS Manufacturing 13 Apr 2006 page 13 • EDS Confidential EDS has learned that comprehensive portfolio transformation requires a long term view and some guiding principals to be effective

• Client Ownership - The client must take ownership and drive the transformation • Global and Common Processes - IT is the key enabler. IT transformation must be focused on driving globalization while balancing key regional needs • Agility is the name of the Game – Creating an agile IT environment (SOA – A3) is the foundation for driving and keeping complexity out of the IT portfolio. • No Quick Fix - Requires comprehensive approach to the entire IT portfolio (applications, infrastructure, etc.) to effectively transform the IT portfolio to enable business improvements while driving out sustain cost • Transformation Roadmap - A multi-year transformation plan that comprehends all key elements (business, applications, technology, organization and governance) is required to cost effectively transform an IT portfolio • IT partner manages the IT transformation – Portfolio transformation takes time and is most effectively executed by IT vendors

EDS Manufacturing 13 Apr 2006 page 14 • EDS Confidential EDS has developed a world-class product development architecture blueprint upon which we base transformations

Adapters Adapters Adapters Adapters M & S Integrated Product Development Manufacturing Operations SCM Service

Teamcenter Teamcenter Visprise SAP Teamcenter Teamcenter Sopheon Artemis UGS-NX Rational ABB Oracle Seibel IDe Mentor Synopsis Siemans Rockwell SAP Graphics Maximo HMS Hyperion D2 Technologies Maximo i2 Documentum CAPP Illustrative SAP Accept Technomatix Patran/Nastran Cimplicity FastTech Oracle Microsoft Catia PointSolutions Ansys Honeywell Manuguistics Epicor Delmia Cadence

EDS Manufacturing 13 Apr 2006 page 15 • EDS Confidential What is a Framework? Available by industry segment, EDS’ Industry Frameworks are the lens through which we analyze the current state and chart the course to the future state. EDS’ Industry Frameworks help chart the path for transformation. Current State Agile State

Market Analysis & Portfolio Planning Integrated Product Development Manage Enterprise Provide Develop Provide Financial Support Long Range Conduct Research Operational & Refine Plan & Validate Product/Service Prepare & Validate Admin Svcs Product Plng & Development Design to Requirements In-Service Environment Implementation Define Product/Service Manage Plans Manage Business Public Affairs Manage Portfolio Perform Design & Release & Formulate Prepare & Validate Provide Legal Market Analysis Product/Process Provide HR Market Strategy & Service Production Environment Support Support

Executive Program Engineering Operations Sales Service Quality Portal SCM Portal Portal Portal Portal Portal Portal Portal

Knowledge As Process In-Service As Competitors Inventory As Built Digital Databases Designed Execution Data Maintained Nervous Business Spec- Product Assets Suppliers Schedules Quality Customers System Plans ifications Definitions

SCM PMO PLM ERP MES QMS CRM MRO Gateway Gateway Gateway Gateway Gateway Gateway Gateway Gateway

Manufacturing Operations Sales & Aftermarket Services Manage Supply Chain

Plan and Schedule Create Product Repair & Maintain Develop Supply Manage Warehouse Support Production Production Demand Product Base & Distribution

Manage Supply & Manage Finished Good Sell Diagnose & Manage Identify Conduct Supplier In-Bound And Out-Bound Logistics Product Incidents Sourcing After Market

Make or Assemble Manage Production Products Support & Material

Integrated Industry Model Manufacturing Industry Framework Design Anywhere Build Anywhere Service Globally

A successful framework… DESCRIBES what changes are needed. PRESCRIBES how the changes should occur.

EDS Manufacturing 13 Apr 2006 page 16 • EDS Confidential What is a Framework? (cont’d) In short, we’re trying to assess and describe how to make change happen for our customers within the context of their competitive world.

Industry Trends and Market Forces IT Governance / Policies / IT Governance Business Governance Business Processes

Industry Frameworks Information and Data Models

Solutions Catalog

• Tools

• Techniques Components Application • Concepts Technical Infrastructure • Reference models • Architectures • Best practices

EDS Manufacturing 13 Apr 2006 page 17 • EDS Confidential How does a Framework guide the process? We have an evolving view of how to engage in the transformation process with our customers. Industry Frameworks help accelerate existing approaches.

Agile RightStep Framework Assess & Discover Action Manage Align Current Reality, Enterprise Priorities Design Develop Implement Operate Future Direction

Assess Modernise Manage Current Reality Design Develop Implement Operate

Applications Applications Applications Assessments Modernisation Management

• Production • Analyze Re-Learn Support portfolio & structures Re-Factor • Transition management • Create the baseline Re-Host • Knowledge Industry Frameworks metrics Transfer Roadmap

Re-Interface Transition • Establish the modernisation roadmap Re-Architect

Replace

Retire

EDS Manufacturing 13 Apr 2006 page 18 • EDS Confidential Global Manufacturing Trends Trends & Implications Possibilities Solutions . Globalization for competitive • Integrated, performance- Design Anywhere advantage based portfolio planning & Manufacturing - Pricing pressures / market execution Build Anywhere Overall volatility • Global design acceleration Service Anywhere - Customer demands increasing - Accelerated product innovation - Reusable designs - Inter-connected design centers Marketing & Sales - Complete product . Cost reductions & flexibility / visibility of supply chain - Virtual validation & performance simulation Aerospace - Consolidation – M&A of all tiers - Fewer and larger customer - Design for manufacturability and orders/ service Integrated Product - Product Innovation • Network based Development manufacturing . Industry consolidation - Supply chain integration throughout tiered structure - Asset lifecycle management Automotive - Manage costs to protect margins - Improve customer and dealer - Performance based operations Digital Manufacturing relations to increase market management Operations share • Integrated maintenance, - Product development and repair and service operations innovation - Knowledge enabled maintenance & repair . Reduce time to market - High touch customer experience Aftermarket Services High Tech - Innovation and growth - Manage operational cost • Digitally connected & - Asset productivity synchronized business ecosystem • Manage operational cost and - Information integration Manufacturing flexible supply chain - Interdependent business Ecosystem Industrial - Asset productivity processes streamlined for - Reduce time to market performance - Innovate rationally Detailed TIPS by segment can be found in Appendix B

EDS Manufacturing 13 Apr 2006 page 19 • EDS Confidential There are six core business processes indigenous to a typical manufacturer.

L0 Manufacturing / Aerospace and Defense / Commercial Framework

L1 1.0 Marketing 2.0 Integrated 3.0 4.0 Manage 5.0 Manage 6.0 Manage and Sales Product Manufacturing Supply Chain Service Chain Enterprise Development Operations

Analyze market Define the Create finished All product Support the Perform all demand (VOC), product, goods, including (physical product after it is corporate staff and formulate processes and products, material and produced. functions product / services. processes, and service) Maintain including human services Design and services. transactions, engineering resources, legal, strategy. validate product, from supplier to information, purchasing, Includes processes, and customer, provide for , Includes long planning and services in including planned and administrative range and scheduling preparation for developing unplanned services, public product production, product, supply base, maintenance. affairs, real planning, managing manufacturing identifying Ensure that the estate, business performing supply and in- and aftermarket sourcing, Service Chain management market analysis, plant materials, support. managing supply is (corporate conducting making or production managed. Plan planning, R&D, managing assembling the support and and execute governance, portfolio & product, material, warranty program formulating supporting managing programs. management, product strategy, production and warehouse & Continuously organizational and developing managing distribution, and improve the effectiveness), operational and finished goods conducting service chain and providing implementation to the supplier & after processes information plans. distribution market support. through formal technology and supply chain. review of communications. metrics.

EDS Manufacturing 13 Apr 2006 page 20 • EDS Confidential Manufacturing Industry Framework Solutions all solutions impact Automotive, Industrial, High Tech and Aerospace & Defense

Manufacturing Industry Business Drivers Solution Components Solutions

Market Analysis & Time to market; Sales Growth; Product Portfolio Planning 1 Portfolio Planning Margins, ROI, RONA; ROE

Product Lifecycle Data Management Integrated Product Design & Validation Time to market; Sales Growth; Integrated Product Margins, ROI, RONA; ROE, Product Product Development Process Management 2 Development Returns, Customer Satisfaction Collaborative Digital Design Manufacturing Process Planning Knowledge Based Engineering Production Operations Asset Lifecycle Management Margins; ROI; RONA; ROE; Digital SG&A/Revenue, Inventory Turns; Manufacturing Operations Visibility & Decision Manufacturing Asset Turns; Receivable Turns; DSO, Support 3 Operations Revenue or Income / Employee Production Support Supply Chain Operations Support Supply Chain Warehousing & Distribution In-Service Product Maintenance SG&A/Revenue; Revenue or Income / Employee, Customer Satisfaction, 4 Sales & Sales Growth; Margins, ROI, RONA; Aftermarket Services ROE Sales Manager Create Product Demand

Manufacturing Time to Market; Sales Growth; 5 Product Returns; Customer Knowledge Center Ecosystem Satisfaction

Detailed Solution Write-Ups in Appendix C EDS Manufacturing 13 Apr 2006 page 21 • EDS Confidential EDS PLM Solution Suite Component Description Product Lifecycle Data The Product Lifecycle Data Management Solution architects, implements and provides hosting support for As-Designed, As-Built, As-Tested and As-Maintained Bill of Materials that are Management maintained through a consistent configuration and control system. The architecture is scalable to support centralized and decentralized models. The solution includes product data vaulting, engineering release, manufacturing release, aftermarket service release, and integrated configuration and change control. Integrated Product Design The Integrated Product Design and Validation solution provides mathematical information, engineering analytics and product definition artifacts necessary to more effectively design and & Validation validate products. The solution enables product development personnel to initiate design and validation processes including , design review, product validation, , engineering change management, and design and validation release.

Product Development The Product Development Process Management solution provides a seamless environment (leveraging best-in-breed processes, tools & information) to monitor, control and report Process Management product development productivity. Product development productivity is defined by scheduling, standard product development process control, program/, and time tracking. Collaborative Digital Design The Collaborative Digital Design solution takes design information including multi-CAD data into a seamless “global secure network” environment that facilitates product and process decision making. The solution provides the basis for bringing together the knowledge, experience and skills of multiple team members, partners, suppliers, and global sites, for idea sharing and decision making that contributes to concurrent business integration. The collaborative environment integrates the processes and tools that connect multi-site Design Centers, and global Design Partners & Suppliers. Manufacturing Process Manufacturing Process Planning solution provides the real-time information, business processes and workflows for manufacturers to digitally design, test and simulate production Planning environments. The solution includes manufacturing data management, visual 3-D design of facilities, tools, equipment and plant layout; material flow optimization; and computer-aided process planning. Knowledge Based The Knowledge Based Engineering (KBE) Solution provides a hosted environment integrating Computer-Aided Design, Computer-Aided Manufacturing, Computer-Aided Engineering, Engineering Computer-Aided Test into an end-to-end process. The solution enables knowledge capture and re-use with specific emphasis in the capture of corrective action. A set of services are provided to customers to support the proper application of KBE software within their business environment

EDS Manufacturing 13 Apr 2006 page 22 • EDS Confidential Suggestions for the PLM Center

• Emphasize cross-discipline teams in a concurrent product/process/service development environment – – – Electrical engineering – Software engineering – Manufacturing engineering – Industrial engineering • Emphasize the link of the student’s individual discipline into the enterprise and the lifecycle of a product/process/services • Develop the interoperability between tool sets • Document the impact on a company’s financial performance

EDS Manufacturing 13 Apr 2006 page 23 • EDS Confidential Discussion

EDS Manufacturing 13 Apr 2006 page 24 • EDS Confidential 13 Apr03 -200623-05 eds.com Rex LaRowe [email protected] +1 (765)451-4150

page 25 • EDS Confidential Manufacturing Industry Framework

Market Analysis & Portfolio Planning Integrated Product Development Manage Enterprise Provide Develop Provide Financial Support Long Range Conduct Research Operational & Refine Plan & Validate Product/Service Prepare & Validate Admin Svcs Product Plng & Development Design to Requirements In-Service Environment Implementation Define Product/Service Manage Plans Manage Business Public Affairs Manage Portfolio Perform Design & Release & Formulate Prepare & Validate Provide Legal Market Analysis Product/Process Provide HR Market Strategy & Service Production Environment Support Support

Executive Program Engineering Operations Sales Service Quality Portal SCM Portal Portal Portal Portal Portal Portal Portal

Knowledge As Process In-Service As Competitors Inventory As Built Digital Databases Designed Execution Data Maintained Nervous Business Spec- Product Assets Suppliers Schedules Quality Customers System Plans ifications Definitions

SCM PMO PLM ERP MES QMS CRM MRO Gateway Gateway Gateway Gateway Gateway Gateway Gateway Gateway

Manufacturing Operations Sales & Aftermarket Services Manage Supply Chain

Plan and Schedule Create Product Repair & Maintain Develop Supply Manage Warehouse Support Production Production Demand Product Base & Distribution

Manage Supply & Manage Finished Good Sell Diagnose & Manage Identify Conduct Supplier In-Bound Logistics And Out-Bound Logistics Product Incidents Sourcing After Market

Make or Assemble Manage Production Products Support & Material

EDS Manufacturing 13 Apr 2006 page 26 • EDS Confidential EDS Legacy Modernization Initiative

EDS Manufacturing 13 Apr 2006 page 27 • EDS Confidential EDS Legacy Modernization Initiative

EDS Manufacturing 13 Apr 2006 page 28 • EDS Confidential