PLM System From a Manufacturer’s Perspective

Primax Electronics Ltd.Presenter: Jason Huang

June 2006

Introduction:company overview and personal introduction

Drivers and Challenges (external and internal) :business needs and specific requirements we faced, their corresponding managementissues and difficulties

The Approach :how we leveraged the PLM system to increase the efficiency of our management andoperation control capabilities

The Application :system modules and function blocks highlighted to demonstrate how we achieved the goal and actual benefit we have received from the efficiency increase with quantitativenumbers

The Future Plan :where do we go from here to support the next generation of product design and development

Seeking Sustainability :how do we see the progress and development of PLM system from a manufacturer'sperspective to be sustainable

AGENDA

01/20

PRIMAX Corporate HeadquarterTaipei, Taiwan

Company Overview1984 Founded (Telephone jack)

1987 Invested in Thailand

1989 Established manufacturing in China

1990 Entered USA

1991 Entered Europe

1992 Acquired Destiny Technology (Embedded software)

1995 Listed Primax on Taiwan Stock Exchange

1997 Established Subsidiary in Japan

2000 Acquired Toptronic (Film/digital camera)

2001 Listed Destiny on Taiwan Stock Exchange

2002 Ranked 102nd Among 1000 Taiwanese Manufacturers by (Business Weekly 4/26/2002)

2003 Ranked 8th Among All Taiwanese Optical-Electronics Companies by (Common Wealth Magazine 5/8/2003)

2004 Ranked 84th Among 1,000 Taiwanese Manufacturersby Business Weekly

2006 Merged Destiny

02/20

Global Operation

EUROPE- Primax International

Holland (HQ)- Primax France- Primax Germany- Primax UK

Sales, Marketing, JIT

CHINA- Primax Electronics Products Ltd.

(Dongguan)- Primax Electronics Ltd.(Beijing )- Primax Electronics Ltd (Guangzhou)- Destiny (Beijing )

ManufacturingR&D

HONG KONG- Primax Industries

(HK) Ltd.Sales & Marketing

JAPAN- Primax Destiny

Sales & Marketing

TAIWAN (HQ)- Primax Electronics Ltd.

Worldwide HQCorporate managementFinance & Admin.Human ResourcesSales & MarketingR&DManufacturing

UNITED STATES- Polaris Inc.

Sales, Marketing, JIT

Group HQR&D CenterMFG BaseSales Office & Customer Service

• Financial results of 2005:• Revenue: US$ 503 million• Assets: US$ 235 million• Capital: US$ 134 million

• Total number of employees: 7436• Taiwan: 456• Overseas: 6980

03/20

Digital Imaging

Home & OfficeAutomation

Trimmer PunchStaplerBinder

Input Device Surge Protector

Laminator Shredder

PC Peripheral

Mobile Communication

Scanner MFP

Printer Controller

ScanningModule

CellularAccessories

Bluetooth Products

BroadbandAccessories

CameraModule

Cellular Camera

Bluetooth Head Set

BT Stereo Head Set

BT Badge Head Set

Product Portfolio

04/20

1993 World's first motorized handhold scanner (Color Mobile ProTM)

1996 Data Pen, winner of the Gold National Award of Excellence 1996

1998 World's first built-in pc scanner-photo drive (Easy Photo DriveTM)

2000 One Touch Scanner, winner of the Silver National Award of Excellence 2001

2000 Taiwan's first office-use access point, BlueportTM based on Bluetooth wireless technologies

2000 Taiwan's first commercial production on 2.3 million pixel high resolution digital still cameras

2002 World's first optical engine designed for liquid crystal on silicon (LCOS) projectors

2003 First high performance Laser MFP penetrating sub-$500 retail market

Major Technology Breakthrough

05/20

World-class Client Base

06/20

Name: Jason Huang (Gwo-Gong, Huang)Title: Sr. ManagerCompany: Primax Electronic Ltd.Dept.: PDM/IT,

Corporate Quality AssuranceYears at company : 6 YearsAddress: 669 Ruey-Kuang Rd.,

114 Taipei, Taiwan, ROCPhone: 886+2+27981028Mobile: 886+936678922Fax: 886+2+27981565Email: jsn.huang@primax.com.tw

Personal Introduction: Jason HuangExpertise:

Business Process and Business Standard Consultant (4 years):

– ISO 9001:2000 - Quality Management System– ISO 14001 – Environmental Management System– ISO 1404X – Life Cycle Assessment of Product

Design– Related industries :

Steel, Semiconductor, PWB/BGA, Cement, Resinand lamination, Paper product, Fertilizer,Electronics, Natural Drinking Water, etc.

Processes integration and PLM ( Primax ) (6 years):First project at Primax was to integrate the Product Development Process (PDP) across 4 business units and 11 product lines.Windchill PLM Implementation:

PLM solution survey, function review, corporate core processes integrationManager to a 5 people PLM team and a system owner System fully implemented and sustained

Primax is now one of the successful reference sites to PTC on Windchill PLM in the manufacture industry.

07/20

671

509

0100200300400500600700800

Worldwide Patents

# of patent*

Granted Pending

* As of 2006 Mar.

R&D Spending

26 26.1

17.220.8 22

16.414.512.410.3

7.46.9

05

1015202530

95' 96' 97' 98' 99' 00' 01' 02' 03' 04' 05'

US$ M

% ofsales

4.4 5.9 63.83.65.5 4.5 3.6 3.7 5.4 3.6

Heavy Commitments in R&D

08/20

Sees Barrier or Finds Driver?

Design and Manufacture Enterprise

External Forces

Internal Forces

-International Competition-Global Operation-Standards-Customer Requirements-Laws and Regulations-Market Force-Pricing-High Labor Cost-New Technology

-Strategy-Re-Engineering-Sluggish process-Communication-Quality-Learning-Sharing-Innovation-Leadership

-Changing Mindsets-Culture-Capability-Productivity-Efficiency-Flexibility-Cut Cost-Customer Satisfaction-Service

09/20

What matters? Green Challenges and Pressures

Environmental Management SystemBS 7750EMASEMS/ISO 1400XEPE/ISO 1403X

Enterprise Manufacturer

Regulations / DirectivesRoHS / WEEE / EUP / IPP / JIG (A,B)ELV .. etc.Environmental Impact AssessmentWaste ManagementPackaging Regulation EUToxic substance controlProduct Recycling Policy

Product Design & DevelopmentLife Cycle AssessmentDesign for EnvironmentSubstance QuantifyLCA/ISO 1404XSETAC

Eco-LabelingRoHS/WEEEEUUSA

Cleaner Production / Responsible CareCleaner ProductionAction PlanEnvironmental Accounting

TAX, InsuranceCO2Risk ManagementWaste ManagementPollutants Control

10/20

The Approach: Customized WINDCHILL 5.1 in 2001

OLD SYSTEM(~ 2001)Manual Processloose disciplineHuman intrusionPaper and formsExperienced individualNo SOPNon-efficientunhealthy…

NEW SYSTEMWINDCHILL 5.1 (2002~2003)A solution, not a productReal time Project ManagementProduct Data & InformationDesign-centricTeam CollaborationJust in time project deliverablesImprove Process EfficiencyElectronic process controlStandard process and disciplineDate reference / Information sharingAchieve e-company goalCultural integrationSystem integration (ERP)Eases ISO complianceYou are not alone

FUNCTION MODULEENHANCEMENTWINDCHILL 5.1(2003~2006 and beyond)Project Planning Module (PPM)Part Auto-Numbering (Part Number)Approval Vendor List (AVL/AML)Project KPI Report (Project Audit)EC Mass Change (Eng. Change)Green Module (RoHS/WEEE)BOM Auth. & Release Control (BRC)Eng. Support Module ERP Integration (SAP PR/PO Control)System Administration ModuleAudit and Reporting ModuleFuture expansion and development...

Voices of Top ManagementVoices of Top Management-Shorten Time to Market-Shorten Time to Volume-Shorten Delivery Time-Increase Product Quality

-Labor Efficiency-Inventory Control-Customer Service-Innovation

SuccessSynchronization

Initiative

Information

Metrics

Strategy

Process

People

Technology

Market

11/20

– Standard Product Development Process (PDP)– Manage all project related documents– Control project milestones and reports

– Part/BOM/EC/Production document design– Migrate all Part/BOM data from ERP(SAP) system & SAP Integration– Control all production related documents and distribution

– Phase I PDP enhancement & Project Planning Module (PPM)– Part Auto Numbering Module to replace SAP part numbering system

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2001 2002 20032001 2002 2003

Phase I Phase IIPhase III

A B

Eng. Support

Auto Form

Form Management

Project ManagementProject Deliverables

PDPManagement

C D

DocumentManagement

DocumentManagement

Part/BOMProduct Structure

EC, SAP Integration

PDM & ERPSystem Integration

ProjectPlanningModule

EnhancementPPM

Part AutoNumbering

SAP Integration

E F

A B C D E F

The Approach: Key Milestones & Tasks (2002~2003)

Phase I

Phase II

Phase III

12/20

MaterialPart Approval SheetPart SpecificationsDrawingsGreen StatusSubstance Content………….

Sub AssemblyPart Approval SheetPart SpecificationsDrawingsGreen StatusSubstance Content………….

Finished GoodSpecificationsDrawingsGreen Status………….

MaterialPart Approval SheetPart SpecificationsDrawingsGreen StatusSubstance Content………….

Sub AssemblyPart Approval SheetPart SpecificationsDrawingsGreen StatusSubstance Content………….

Sub AssemblyPart Approval SheetPart SpecificationsDrawingsGreen StatusSubstance Content………….

Sub Assembly

Material

……….

Maker/Vender 1General InformationDeclaration FormSupplier Audit ReportFinancial InformationAgreement & Contract………….

Maker/Vender 2General InformationNon-Disclosure AgreementDeclaration FormSupplier Audit ReportFinancial InformationAgreement & Contract………….

……….

The Application: What's happening?

13/20

The Application: What have we done (2003~2006~)

Plant DCC

BOMStructure

Management

BOMReleaseControl

Plant DCC

AVL/AMLSupplierModule

NumberingRule

Module

RTP ObjectReleaseControl

EngineeringChangeRequest

EngineeringChangeOrder

EngineeringChangeAction

DocumentReleaseControl

ERPBy Plant

ProjectDocument

Management

ProjectManagement

Module

ProjectPlanningModule

SystemAdminModule

EngineeringSupportModule

Mass Change& Where Use

Query

ProjectManagement

Part/BOMManagement

Part Approval& Drawing

ECManagement

AutoNumbering

Module

ProductionDocument

Management

GreenProcurement

Module

Audit&

Reporting

ERP PRPOIntegration

ERPADAPTER

Sales & EngSupportModule

Others ArchivePurge

PLM/ERP PartNet & Gross

Weight Control

14/20

Benefits…

•Product Design / Development•Prototyping•Create Docs, Search Project info•Create Production Documents•Project Reviews/Discussion•Analyze / Solve Production Issue•Communications with Factories•Vendors Meeting / Phone / Email•Vendors Visit / Discussion•Customer Visit / Bug Issue Solving•Q&A, Department Meeting•Case Study, Self-development

25%8%5%7%8%11%5%8%4%4%7%6%

ProjectedTime Efficiency

Key R&D Tasks Allocation Improvement

8.4%

50.0%20.0%30.0%20.0%10.0%

20.0%20.0%

Total = 13.7 %

*Cost allocation: 450 R&D, USD 2.5K monthly payment in average

Project / Deliverables Management

Document Management

Saving:9.2% x 450 x 2.5 x 12= USD 1242 K/Yr

Saving:8.2% x 450 x 2.5 x 12= USD 1107 K/Yr

15/20

Actual Key Performance Results

Other：– RFQ / Cost Analysis cycle Time was 7 Days to less than 3 Days– RD overall working efficiency improve at least 5 % up– Project requirement : Suppliers collaboration….– Increase Customer and Supplier communication

5.0 D

6.0 D

6.9 D

< 1 D

< 1 D

2003 / Q4 (PLM)

2.8 D

3.1 D

<2 D

<4 H

<4 H

2005 / Q4 (PLM)

3.4 D3 D11 DECN Cycle time

3.2 D3 D8.8 DECR Cycle Time

2.6 D2 D7 DBOM Construct & Approval Cycle Time

<4 H1 D3 DProduction Doc. Apprl. & Trans.

<4 H1 D3 DPart Approval Cycle Time

2004 / Q4 (PLM)

PLM 2002KPI Target

Before PLM(Manual)

16/20

The Future Plan: Keep changing

OLDSYSTEM(~2001)

NEWSYSTEM(2002-2003)

FUNCTION MODULEENHANCEMENT(2003~2006 ~)

SolvingManagementIssues

OperationControl &BusinessChanges

Experience& Sharing

CONTENTACCUMULATING

COREKNOWLEDGEBASE

Ability toDevelop and Explore

HereWeAre

Data &Information

Furnishing& Influencing

Question asked &Learning

Our versionof Knowledge(1st Hand Knowledge)

Talents,Practice &Skills

LearningEnvironment

Experiences &Beliefs

17/20

The Future Plan: (cont.)

-Data-Information-Talents-Practice-Skills-Experience

Design Guideline DfX (X=anything)DFMEA/PFMEAProduct Life Cycle AssessmentProduct Green Design (DfE)Product Validation GuidelineProduct Inspection CriteriaCost / Spec Analysis (RFQ)Patent SearchVariation and Risk AssessmentSpecification Super BOMEVT/DVT/MVT PlanQA Control ChartGR&R, Cpk of Critical ParameterQuality Test Requirements……….

CONTENTACCUMULATING

18/20

Seeking Sustainability

COREKNOWLEDGEBASE

Continuous ImprovementConstantly ChangeRapidly Innovate

Management & Business Aspects:-A Product Company-Match Corporate Goals-Outsourcing & Collaboration-Seemless Process-Define Capability (QCDSSF)-Increase Productivity-Dynamic Changing-Knowledge Reuse-Accountable Resources-Lower Operation Burden

System Aspects:-More User Friendly-Easy Maintain & Steering-Flexibility-Future Expansion-Timely Response to Change-Customer Trend, not Tech. Trend

Asking Fundamental Questions…..

Who we are?What we work on?How we work?…..

19/20

VISION :

Push Performance, Trigger Innovation, Shorten Time to Market

MISSION :

Timely Information Sharing and Core Processes Control

VALUE :

An Information and Processes Integration Platform to Support,Develop and to meet User/Customer expectation

Vision, Mission, Value

20/20

Q&A:

THANK YOU

Q & A

ValueValueQualityQualityInnovationInnovation PartnershipPartnership