SASIG XMTD WG Gothenburg May 2004

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EXCHANGE MANAGEMENT OF TECHNICAL DATA Business
Case for XMTD at Volvo Car Corporation
? ENGDAT Package ?
ENGDAT Abstract
Sender
Receiver
SASIG XMTD WG Gothenburg May 2004 Nils Johansson
Volvo Cars IT, PD Odette Sweden
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From concept to components
XMTD Business case study
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• XMTD Mission Scenario
• Support the Automotive Process From Concept to
  Component Development with global automated
  application with eXchange Management of Technical
  Data mechanisms to decrease business Marginal
  Cost with focus on

Globalization Lead time XMTD Cost
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Globalisation
?
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Lead Time
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XMTD Cost
ISDN ENGDAT
Estimated Transfer Capacity
https Secure Internet
Physical Media
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Business Drivers Logical View
Local Standard
Global Standard
Interface Count
Interface Count
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2
3
4
6
8
10
1
3
6
28
132
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45
Order of n(n-1)
XMTD Application Count 12
Order of n
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Business Case Engineering Data Exchange for
Volvo Cars Corporation
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Physical Media
XMTD Current State
https Secure Internet
Partner
Volvo Cars
ENGDAT ISDN
XMTD User interface
XMTD User interface
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Volvo Cars 1900 Engineers XMTD connections
Volvo Cars 1900 Engineers XMTD connections
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Physical Media
Achievement of our Mission
https Secure Internet
Partner
Volvo Cars
ENGDAT ISDN
XMTD User interface
XMTD User interface
ENGDAT https
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Example of how to calculate potential savings on
improvements in XMTD transmission on OEM and Tier
1 level
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ESTIMATED Saving cost components ENGDAT V3 SEK
Annual Savings 1 of Global Supplier Choise
Savings 2 184 000 SEK/Year 1 h/transfer
Leadtime savings From Concept to Component
1 680 000 SEK/Year Changing from 80 of ENGDAT
ISDN and 80 of Physical Media to https
900 000 SEK/Year
TOTAL 4 764 000 SEK/Year Changeover
(One-time) Costs Rewriting from ISDN to https (
shared 50 by Volvo Truck) 470 400
SEK TOTAL
CHANGEOVER COST 470 400 SEK
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General Conclusion Most OEMs and suppliers
will save some of the marginal XMTD Cost already
the first year by using ENGDAT V3 exchanges with
their suppliers
Annual Savings 4 764 000 SEK One-time
Changeover Costs 470 400 SEK Ford requires
the payback period to be one year or less.
Since 470 400 lt 4 764 000, Ford estimates
recover all of its investment in one-time costs
in less than one year. Therefore we estimate
Ford will agree to finance the conversion of the
Volvo Cars User Interface for XMTD from ENGDAT v2
to ENGDAT v3.
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Soft Reasons for ENGDAT V3

• ENGDAT V3 will provide web-based functionality
  that improves on ENGDAT V1 / 2 while preserving
  the data content that the partners expect.
• ENGDAT V3 provides the ENGDAT metadata needed by
  Volvo's XMTD user interface .
• Volvo customers today using ENGDAT V1 / 2 will
  soon require ENGDAT v3, so Volvo must be able to
  provide this format.

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Thank You for your Attention!
Nils Johansson Project Leader EDI 46 454
264166 njohan10_at_volvocars.com
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