The World has Changed

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The World has Changed

• April 26th, 2006
• Ken Leslie, VP Product Services

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Decades ago

• Organizations
• Conceived
• Planned
• Engineered
• Developed
• Built
• Marketed
• Serviced
• Ended product life
• Single point, controlling every facet of a product

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Complete plants were built
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How the world worked before

• Ford began construction of the world's largest
  industrial complex along the banks of the Rouge
  River in Dearborn, Michigan.
• The massive Rouge Plant included all the elements
  needed for product production and delivery
• Steel mills
• Glass factories
• Iron ore and coal were brought in by steamers and
  by railroad, used to produce both iron and steel.
  
• Rolling mills
• Forges
• automobile assembly line

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Supply chain members

• Delivered raw materials
• Cost of stockpiling raw materials was not
  critical
• Minimal impact on overall product delivery
• Swapping out supply chain members was easier
• Tended to be geographical, close to the factory

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Examples of an early BOM
Wouldnt it be nice to have simple BOMs like
this today?
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OEMs in the 50s
OEMs Evolved
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An aerial view of the Ford Rouge complex in
Dearborn in 1957
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Supply chains gain importance

• More components were being delivered ready for
  assembly
• Tires
• Wheels
• Windshields
• Lights
• Etcetera
• However still taking place at the sub-component
  level

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OEMs further evolved

• Products are becoming highly engineered complex
  
• Demands for shrinking delivery times
• Squeezing profit margins
• To facilitate this
• Migrated from drafting boards to CADx
• Went from paper documents and processes to
  automating through tools such as PDM and PLM
• Design through QA and on to Service are being
  managed by various systems
• Outsourcing to a diverse supply chain is a must,
  not just nice to have any more

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Things started to change rapidly

• Product margins were shrinking
• Stockpiling materials and products have huge
  costs associated
• OEMs are using supply chains for major sub
  assemblies
• Major product development innovations introduced
• CADx
• PDM
• PLM
• DMU
• Etc
• Supply chains become critical

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Decoding the supply chain

• OEMs will become even more reliant on them
• Not just the first and second tier
• Farther down the supply chain they are
  automating
• PLM CADx
• They are subservient no more
• They are dedicated partners
• Products will be designed by the supply chain
• Products will be built by the supply chain
• Products will be supported by the supply chain
• If this is true, then owns the product?

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The cause or this effect

• Supply chain members are now equal business
  partners
• Supply chains are mission critical for product
  design, development and delivery

What does this mean. The supply chain is
important?
Who owns the product?
Is it the OEM?
Or is it now the Supply Chain?
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Who will own the product?

• The organization owning the IP or the Product
  DNA (complete product record)
• Who is that?
• The organization who has the information
• The complete product record
• The final As Shipped BOM

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So if product DNA is so important

• How do I get the complete product record?
• Remember it is dispersed across your supply chain
• Pieces scattered across the globe here and there
• You may not ever touch the final customer
  delivered product
• MOT mobile devices
• How do I know what is being delivered to my
  customers?
• Supply chain members have varying design and mfg
  change ability
• How do I protect my product DNA

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You need to regain control of your Product DNA
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Things get complicated quickly
Your Most Trusted supply chain members Tier One
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Things get complicated quickly
This is your extended supply chain
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Things get complicated quickly
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Here is your Product DNA
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Okay so how can we connect?

• Some Options
• Option 1 You can use one of the popular toolkits
  to develop one-off integrations
• Option 2 You can demand that your supply chain
  use the same PLM system
• Option 3 You could install one massive PLM
  instance that everyone connect to
• Option 4 You can use Standards to commoditize
  (boil down) product DNA

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Okay so how can we connect?

• Some Options
• Option 1 You can use one of the popular toolkits
  to develop one-off integrations
• Option 2 You can demand that your supply chain
  use the same PLM system
• Option 3 You could install one massive PLM
  instance that everyone connect to
• Option 4 You can use Standards to commoditize
  (boil down) product DNA

What does it cost to develop? What happens when
the PLM systems change versions? How are the
lowest attributes mapped, most cases (merged
together)
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Okay so how can we connect?

• Some Options
• Option 1 You can use one of the popular toolkits
  to develop one-off integrations
• Option 2 You can demand that your supply chain
  use the same PLM system
• Option 3 You could install one massive PLM
  instance that everyone connect to
• Option 4 You can use Standards to commoditize
  (boil down) product DNA

What about supply chain members below tier one
two What happens if they dont have PLM What if
you are strategic to them as they are not to you
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Okay so how can we connect?

• Some Options
• Option 1 You can use one of the popular toolkits
  to develop one-off integrations
• Option 2 You can demand that your supply chain
  use the same PLM system
• Option 3 You could install one massive PLM
  instance that everyone connect to
• Option 4 You can use Standards to commoditize
  (boil down) product DNA

What happens when the centralized PLM goes
down Typical PLM installations are complex
organizations are challenged to install It has
rarely been accomplished, with very complex
boundaries
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Okay so how can we connect?

• Some Options
• Option 1 You can use one of the popular toolkits
  to develop one-off integrations
• Option 2 You can demand that your supply chain
  use the same PLM system
• Option 3 You could install one massive PLM
  instance that everyone connect to
• Option 4 You can use Standards to commoditize
  (boil down) product DNA

Federations products federates Product DNA We DO
NOT store Product DNA in the Federation
solution Federation supports the reading and
writing of STEP data for archival retrieval
purposes, The Federation solution DOES NOT
require every Supply Chain member or application
to be converted in some neutral format just to
share Product DNA
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Or
Use Federations OOTB product solutions to
federate your Product DNA
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Components of Federations products
This is the heart of the Federation Solution Suite
IPG (Independent Product Gateway)
Server Component, where product data federates
These are our VCCs (Value Chain Connectors)
This is the applets that talk to PLM systems,
file systems, STEP and XML files
X
Federation IPG
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Some scenarios
FXML (XML)
X
Federation IPG
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What if?

• Some supply chain member perform similar work for
  your competitors
• Product DNA has to go through a security
  screening before being dispensed to your supply
  chain
• You cannot connect to you supply chain members
  electronically

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Federations products support this
Supply Chain Member Not able to connect
Air Gap
Federation IPG
PLM Data
Load/Burn Station
PLM A System
Supply Chain Member Not Trusted
Federation IPG
PLM Data
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Load/Burn Station
PLM B System
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What is the value of Federation?

• Ability to connect your entire Supply Chain
• No matter how deep you need to go
• Eliminating or vast reduction in building Out of
  date product
• Assuring that the entire supply chain is aware
  of product changes - immediately
• Enables Hot Swapping of supply chain members
• Going from one supply chain members because of
  issues like insolvency or capacity
• Enables control of overall project by OEM
• Maintinaing control or your Product DNA
• Reduction of at least 15 of overall project
  costs are realized by using Federations Product
  Suite

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In the future

• Be assured
• the world will continue to change
• Supply chains will become more diverse
• PLM solutions will evolve and have to be
  integrated into these complex process and
  corporate architectures
• Information, product DNA ownership, transfer
  and interoperability will evolve

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Some of our customers
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Federation Software

• Founded 1998
• Headquarter Denver, Colorado
• Primary Investor Paul Baan, (Baan ERP)
• Subsidiaries
• Technology Partners
• Consulting Partner

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We are Federation Software

• Questions? contact us at
• info_at_federationsoftware.com
• Visit us at
• www.federationsoftware.com
• When you need your complete
• Product DNA
• In the right format, in the right place, at the
  right time
• Call us

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Thank You