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Advancements in Design Chain Management“Product Lifecycle Management Outside The 4 Walls”Presenter’s NamePresenter’s Title

Table of Contents

• Manufacturing Industry Dynamics• Regulatory / compliance pressures• Product lifecycle execution• Global supply chain complexity and velocity• New customer expectations

• Enterprise Product Lifecycle Management• Within and Outside the Four Walls

• Oracle Agile PLM• Agile Value Proposition

• Customer Success• Global market leaders

Company Goals• Improve market share & revenue• Improve operating margins• Operational Excellence• Flawless and rapid NPDI

Manufacturing Industry Dynamics

• Emergence of Distribution Channel, Design in, Design Win

• Choices and option – configured products

• Emergence of a service model to drive revenues (e.g. utility based)

Customer Behavior Dynamics

• Diminishing margins on commodity products• Shorter product life cycles• Lower cost competitors overseas• Theft of intellectual property / Gray markets• Pressure to innovate rapidly

Product Life-Cycle Execution Excellence

• Green Initiatives!• RoHS (Restriction of Hazardous

Substances)• WEEE• Japan• Asia (China/India, etc)

• SOx compliance

Regulatory/Compliance

• High degree of outsourcing globally, Product Innovation (ODMs) now in transition

• Logistics now plays center-stage• Value chain demands support for rapidly changing product mix (increasing

impact of consumer electronics)• Rapidly fluctuating demand necessitates information transparency

Complexity and Velocity of Value Chain

Volume Higher >>>

Complex / Hi End

Build to Order

Mid RangeBuild to Order

Low EndBuild to Stock

In-House

EMS/CDM

ODM

Taiwanese ODM

International EMS

China DomesticODM & EMS

Traditional Focus

Emerging ApplicationsCon

figur

atio

n C

ompl

exity

H

ighe

r >>>

Mother BoardDesktop PC

Notebook PCPC Peripherals

Cellular Handset

LCD TVSet-Top-BoxWorkstationNetworking

Cellular HandsetWorkstation

Server, StorageNetworkingIndustrial

MedicalAutomotive

Carrier Class TelcoHighEnd Consumer

White GoodsCRT TV

DVD Player

Cellular HandsetLCD TV

Digital TVSet-Top-BoxAutomotive

Manufacturing Strategies have Changed Dramatically. . .

Current Trend

Source: iSuppli

High Tech Industry Example

Global Environmental RegulationsNeed for sustainable, global, environmental compliance programs

California: Prop 65 restrictions on materials (e.g., lead cables) SB20 and SB50 set recycling limits in 2005SB423 harmonizes with RoHS January 1, 2007

EU: RoHS and WEEE legislation requires action in 2005

China MII: WEEE in 2006, RoHS being finalized for 2006/2007

Korea: Industry agreements to limit certain materials and for products to be recyclable

Japan: Recycle target active for household electronics and chemical label plans in draft; “Mitsubishi Green 150 initiative active”USA—Federal-

Restricted Substances Overview

Brazil: Existing recycling targets for electronic products and batteries

EU: EuP Program Aug 2007—action required 2006

EU: REACH Program 2008+ votes in Nov 2005

Joint Industry Guide A,B, C:International Material Reporting Requirement

COP-1 of the Stockholm POP’s Convention

Colombia—Draft National Hazardous Waste Policy

Basel Convention: Emerging Nations

USA—Federal- Restricted Substances for Hg

Mexico’s Final List of Substances for Toxic Release Inventory and Final Rules on Wood Packaging

Chile’s proposal for a National Pollutant Tracking System

USA—Federal- Energy Efficiency (external power supplies)

6

• 40% of manufacturers claim half of their new products fail, with missing market demand listed as the top reason.

• 31% of executives surveyed feel the New Product Development and Launch (NPDL) process is not in control.

•A Booz Allen Hamilton study found NO correlation between R&D spending and increased revenue.

The Innovation Agenda

Bottom Line

Manufacturers must streamline the innovation engine with a greater collaboration and knowledge-sharing environment. They must ensure great research converts to competitive products by responding quickly to evolving market needs and do more than increase R&D spending. Processes must be aligned to make the greatest use of these investments. Source: AMR Research 2006

7

Design for Supply Chain Opportunities

Companies can achieve significant benefits from working closely with key partners (i.e. customers and suppliers) engaging them in early-stage concept development for next-generation products, component exchange and reuse as well as to manage down inventories for product phase-out processes.  

A recent study on Dfx revealed impressive results on supply chain and product development metrics:

• Reduction in material supplies on hand from 17.1 days to 9 days

• Reduction in lead times from 10.5 days to 6 days

• Reduction in product development cycle time from 50 weeks to 38 weeks

• Reduction in excess and obsolete inventory by 50%

Source: AMR

Research 2005

Design for Supply Chain Effectiveness … can only come from an integrated system

Product DevelopmentCause:Cause: Low visibility of new Low visibility of new product info across teamsproduct info across teams

Effect:Effect: Delays in time-to-market Delays in time-to-market and time-to-volumeand time-to-volume

SalesCause: Missed target price and Cause: Missed target price and target markettarget marketEffect:Effect: Reduced revenue and Reduced revenue and marginsmargins

Corporate Governance

Cause:Cause: Lack of hazardous Lack of hazardous substance visibilitysubstance visibility

Effect:Effect: Costly adherence to Costly adherence to regulatory standards (RoHS)regulatory standards (RoHS)

MarketingCause: Inaccurate product information to channelsEffect: Weak market penetration and product launch delays

Operations / ManufacturingCause:Cause: Inability to share master Inability to share master product informationproduct information

Effect:Effect: Redundant sourcing and Redundant sourcing and manufacturing processes, lower manufacturing processes, lower quality, and increased wastequality, and increased waste

ServiceCause: Product not designed for Cause: Product not designed for ease of service.ease of service.Effect: Effect: Service inefficiencies and Service inefficiencies and customer dissatisfactioncustomer dissatisfaction

Component & Product Compliance GradingConfirm Compliance During Design / Re-Design

• Check for compliance against region-specific regulations and at different levels of BOM

• Identify components containing hazardous materials

• Manage multiple BOMs for compliance scenarios based on localizations and sourcing options

• Perform what-if analyses to evaluate re-design options

Engineering BOM*Engineering BOM*

European UnionEuropean Union

ChinaChina

USUS

RegulationsRegulations& Exemptions& Exemptions

Calculate % hazardousmaterial content**

Manage BOM and related information for compliance

**Calculation and compliance check can be performed on any BOM (e.g., engineering, manufacturing)Calculation and compliance check can be performed on any BOM (e.g., engineering, manufacturing)**Delivered via partner offering (Synapsis EMARS)**Delivered via partner offering (Synapsis EMARS)

Check against regulations while accounting for exemptions**

ProductInformationRepository

Table of Contents

• Manufacturing Industry Dynamics• Regulatory / compliance pressures• Product lifecycle execution• Global supply chain complexity and velocity• New customer expectations

• Enterprise Product Lifecycle Management• Within and Outside the Four Walls

• Oracle Agile PLM• Agile Value Proposition

• Customer Success• Global market leaders

Innovate “Right to Market”

Accelerate to Market

Reduce cost & supply risk

Ensure Quality& Compliance

Ramp to Volume

Extend Products

Across Global Product Networks

New Product Introduction Volume Production End of Life

Time

Cas

h Fl

ow

Misaligned Ideation & Development • Responding to Market Trends• Bad Projects Difficult to Kill• Products Not Right for Market

Missed Launch Dates• Contract mfg. inefficiencies• Disjointed NPD&I processes• Complex change processes

Process Inefficiency • Inaccuracy = Delays, Scrap, Rework, Recalls• Poor Internal / External Communication• Disjointed Change Management

Regulatory Compliance • Crisis Management• Changing Reg. Controls – RoHS, WEEE• Increased Liability

Inability to extend products & brands• New customer preference• New trends fitness• New products & claims

Escalating Product Costs • Proliferation of Materials / Suppliers/Specifications• Lack of part cost visibility due to outsourcing• Inconsistent Quality

Product Lifecycle ManagementHow to Improve Product Profitability

Product Extension

Key Solutions for successful NPI

Source: Electronics Supply and Manufacturing, June 2005

EMS/ODMEMS/ODM

RegulatoryRegulatory

PurchasingPurchasing

QualityQuality

EngineeringEngineering

MarketingMarketing

Supply NetworkSupply Network

EMS/ODMEMS/ODM

RegulatoryRegulatory

PurchasingPurchasing

QualityQuality

EngineeringEngineering

MarketingMarketing

Supply NetworkSupply Network

EMS/ODMEMS/ODM

RegulatoryRegulatory

PurchasingPurchasing

QualityQuality

EngineeringEngineering

MarketingMarketing

Supply NetworkSupply Network

Product Lifecycle ManagementKey Capabilities• Streamline processes for introduction of right products to

market• Aggregate and enrich customer data for a single view both

within the enterprise and in the supply network• Product lifecycle enterprise collaboration• Manage product compliance and closed loop quality

Key Components• New Product Innovation• Product Quality and Regulatory Compliance Management• Project and Portfolio Management• Product Information Management & Master Data Management• Product Cost Management• Engineering & Design Collaboration

Key Benefits• Accelerate innovation—reduce cycle times by as much as 20%

and improve productivity up to 40%• Ensure compliance and quality — manage risks around

regulatory compliance and quality conformance• Enable globalization & outsourcing — increase efficiencies

through global engineering and outsourced design & mfg. • Improve cost and supply chain efficiency—rationalize supply,

reduce material costs by 5% & waste/rework by 40%

What is PLM?PLM enables Streamlined Processes, Better Product Decisions

Operational/SC Data

Program Data

Design/Engineering Data

Part Data

Quality DataProductRecord Data Environmental Compliance Data

ConceptConcept Plan DevelopDevelop ValidateValidate LaunchLaunch SustainSustain EOLEOLProgramExecution ConceptConcept Plan DevelopDevelop ValidateValidate LaunchLaunch SustainSustain EOLEOLProgramExecution

PRODUCT

LIFECYCLE

MANAGEMENT

Failure Analysis & Corrective Actions

Eng & MfgProduct Operations BusinessProcesses

Cost Management

Engineering Collaboration

Engineering Change Processes

Environmental ComplianceEnvironmental Compliance

C h

a n g e

Col l aborationFailure Analysis & Corrective Actions

Eng & MfgProduct Operations BusinessProcesses

Cost Management

Engineering Collaboration

Engineering Change Processes

Environmental ComplianceEnvironmental Compliance

C h

a n g e

Col l aborationC h

a n g e

Col l aborationC h

a n g e

Col l aboration

Decision SupportDecision SupportDecision Support

Table of Contents

• Manufacturing Industry Dynamics• Regulatory / compliance pressures• Product lifecycle execution• Global supply chain complexity and velocity• New customer expectations

• Enterprise Product Lifecycle Management• Within and Outside the Four Walls

• Oracle Agile PLM• Agile Value Proposition

• Customer Success• Global market leaders

Agile ProductAgile ProductCollaborationCollaboration

Engineering, Engineering, Operations & Operations & Supply ChainSupply Chain

Enterprise product record visibility, management & collaboration

Agile Enterprise Agile Enterprise VisualizationVisualization

Native document collaborative

visualization across the global enterprise

Cross-EnterpriseCross-Enterprise

Agile Agile Engineering Engineering

CollaborationCollaborationEngineering desktop integration & collaboration

DevelopmentDevelopment& Engineering& Engineering

Agile Product Cost Agile Product Cost ManagementManagement

Product sourcing and lifecycle cost & risk management

Procurement Procurement ProfessionalsProfessionals

Agile Product Portfolio Agile Product Portfolio ManagementManagement

Integrated product, program, resource & portfolio

management

Executives & Program Executives & Program OfficeOffice

Agile Product Agile Product Governance Governance

& & ComplianceCompliance

Product & program compliance against

standards & regulatory

requirements

Compliance Compliance OfficeOffice

Closed-loop product quality management

across the extended enterprise

QualityQualityProfessionalProfessional

ss

Agile Agile Quality Quality

ManagemManagementent

Oracle Agile PLM

ChallengeChallenge PLM Impact PLM Impact DriversDrivers

Reduce costs and increase Reduce costs and increase efficiencies thru global efficiencies thru global engineering and outsourced engineering and outsourced design & mfging collaborationdesign & mfging collaboration

Enable Globalization & Outsourcing

Low Cost Design Centers, Low Cost Design Centers, Outsourced Design & Mfg, Outsourced Design & Mfg, AcquisitionsAcquisitions

Reduce cycle time -- 10-20%Reduce cycle time -- 10-20%Improve productivity -- 20-40%Improve productivity -- 20-40%

Accelerating Time To Market

Faster innovation Faster innovation cycles, NPI explosioncycles, NPI explosion

Reducing Costs & Increasing

Profits

Intense pressure to reduce Intense pressure to reduce costs and supply risk, costs and supply risk, improve profit marginsimprove profit margins

Reduce material costs -- 2-5%Reduce material costs -- 2-5%Reduce new part adds -- 10-30%Reduce new part adds -- 10-30%Reduce Waste / Rework by 30-40%Reduce Waste / Rework by 30-40%

Managing Risk& Ensuring Compliance

Increased Quality Increased Quality and Regulationsand Regulations

Managing risk across Managing risk across financial, regulatory and financial, regulatory and international complexityinternational complexity

Oracle Agile PLMThe PLM Value Proposition – Quantifiable ROI

Table of Contents

• Manufacturing Industry Dynamics• Regulatory / compliance pressures• Product lifecycle execution• Global supply chain complexity and velocity• New customer expectations

• Enterprise Product Lifecycle Management• Within and Outside the Four Walls

• Oracle Agile PLM• Agile Value Proposition

• Customer Success• Global market leaders

Case Study:

BusinessChallenges:

• Significant need to integrate Product Record information (e.g. source code) btwn manufacturing & purchasing units to reduce time to market

• High costs due to limited visibility into supply chain - engineers could not make informed decision on quality, availability, cost, etc

• No automatic process to track components and hazardous material content in finished products per new guidelines

• Needed to improve internal collaboration for faster knowledge transfer and design, IP reuse

Agile Solution:

• Broad deployment of PLM - throughout all divisions & HQ• Agile PLM Modules include: Product Collaboration, Product Governance &

Compliance, Product Quality Management, Product Cost Management, Product Portfolio Management, Content Services, and Advanced Viewer

Business Results:

• Robust central repository of data to effectively manage BOM, local measurement units, and date configurations btwn multiple sites to reduce time to market

• Facilitates complex global product design (engineering) and manufacturing ability because everyone accessing the same product information source

• Enterprise system rationalization (7 systems consolidated)• Enables efficient material use at indv’l l manufacturing sites (Design/IP reuse)• Engineering change order cycle time reduced by 66%• Ensures compliance to regulations automatically - export control efficiencies• Secure collaboration & product visibility to partners

Harris Corporation, a $3.5 billion international communications Harris Corporation, a $3.5 billion international communications equipment company serves the global markets for microwave, equipment company serves the global markets for microwave,

broadcast, secure tactical radio, and government communications broadcast, secure tactical radio, and government communications systems.systems.

“ We've leveraged Agile's key strengths

of being rapidly deployable,

adaptable for configuration to our changing needs, and friendly to use across

multiple business units. Many of our internal users have

come to depend heavily upon

Agile.We continue to find more

opportunities to utilize Agile to

deliver new capabilities which will further the utilization

of product data to deliver bottom line business value.”

Bill Miller VP-Information services and CIO

Excerpt from an Agility 06

presentation:

“Special Thanks to

Agile for their quick support

during the most critical

implementation times.”

Steven Bergeron

Vice PresidentQuality & Reliability Assurance

BusinessChallenge:

• As the result of a spinoff and merger, Conexant’s core processes were held on different platforms, which caused companywide inefficiencies and interfered with new product introductions.

• New environmental regulations such as Pb-Free, RoHS, Green initiatives added manual, error-prone, costly work to ensure compliance.

Agile Solution:

• Conexant deployed Agile 9.2.1 Product Collaboration, Product Portfolio Management, Product Quality Management, Product Governance & Compliance, Engineering Collaboration, and SAP Integration.

Business Results:

• Consolidates product information to one source for secure, companywide access and collaboration.

• Accelerates time-to-market with full visibility into product and components throughout the lifecycle.

• Ensures compliance against global regulations to avoid business interruptions like recalls, FDA citations, etc.

• Saves money & time by reducing errors & improving quality.

Conexant Systems, Inc. provides semiconductor solutions for Conexant Systems, Inc. provides semiconductor solutions for broadband communications for digital home information and broadband communications for digital home information and

entertainment networks.entertainment networks.

Case Study:

Our Customers

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