Environment Compliance CrossIndustry PLM Best Practices Lester Liao
Environment Compliance & Cross-Industry PLM Best Practices Lester Liao General Manager / Greater China Agile Software Corporation © COPYRIGHT 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL.
Agenda 4 Environmental Compliance Best Practices 4 PLM Cross-Industry Best Practices Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 2
New Global Regulatory Initiatives 4 WEEE 8 Waste of Electrical and Electronic Equipment 8 New EC directive for Recycling, effective in August 2005 4 Ro. HS 8 EC Directive on the Restriction of Certain Hazardous Substances in Electrical and Electronic Equipment 8 Prohibits new equipment from having more than agreed levels of lead, cadmium, mercury, hexavalent chromium, polybrominated biphenyl (PBB) and polybrominated diphenyl ether (PBDE) flame retardants after July 2006 4 Similar initiatives in China, Taiwan, Japan & the U. S. 8 Taiwan has revamped its recycling law to require fees on packaging & take-back for appliances & electronics, plus new restrictions on plastics disposables, including a controversial ban on plastic bags Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 3
Are you Ready? 4 Surveys show heightened interest, but few with budgets 4 Lot of work to do: 8 Do you know the impact on design, manufacturing, sourcing, spare parts, …? 8 Do you have systems in place to manage new parts, collect parts data, ID compliant/non-compliant parts? 8 Can you support the new component system of record: detailed material data, effectivity dates, cross-referencing? 8 Can you manage Green BOMs? 8 Do you have a risk management strategy? Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 4
7 Point Plan to Environmental Compliance So, how do I become compliant? 1 2 Agile Corporate Overview 3 4 5 6 7 COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 5
7 Point Plan to Environmental Compliance 1 4 Step 1 8 Determine products and components impacted Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 6
7 Point Plan to Environmental Compliance 1 2 4 Step 2 8 Prioritize (could be customer driven, could be product driven) Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 7
7 Point Plan to Environmental Compliance 1 2 3 4 Step 3 8 Determine operations and processes impacted Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 8
7 Point Plan to Environmental Compliance 1 2 3 4 4 Step 4 8 Define the “to -be” compliant state Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 9
7 Point Plan to Environmental Compliance 1 2 3 4 5 4 Step 5 8 Budget Appropriately Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 10
7 Point Plan to Environmental Compliance 1 2 3 4 5 6 4 Step 6 8 Plan against regulatory timeline Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 11
7 Point Plan to Environmental Compliance 1 2 3 4 5 6 7 4 Step 7 8 Name an executive sponsor & create a cross functional team “Within manufacturing and operations, we are continuously looking for ways to improve our bottom line AND improve the environment. Resource conservation and waste reduction make good business sense. ” - Dick Hunter, V. P. , Dell Manufacturing and Operations Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 12
Product Governance & Compliance u Agile Environmental Compliance enables: 8 8 8 Collaborate with suppliers to collect material data for supplier material declarations Generate an environmental view of the product record to analyze for compliance with (WEEE, Ro. HS, ELV) reuse, recycling, and restriction targets Manage regulatory documentation and specifications Track recovery manifests and disposal certificates of destruction Manage compliance of outsourced recovery partners through proactive audit and closed loop corrective action Agile Corporate Overview Customer Benefits: } Decreases Compliance Costs } Reduces Business Risk } Compliance with Environmental & Regulatory Requirements 13 (WEEE, Ro. HS, ELV) COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL
Environmental Compliance Processes Collect Substance Data Part Compliance BOM Compliance Track DFE Analyze Act Parts Corrective Action Process Materials RFI Process Material Declarations Ship-to restrictions Exemptions Regulations Agile Corporate Overview BOM Change Process ECO MCO Take-back, Disposal, & Compliance Treatmen t Recycling Processing Instructions Issue CAR Compliance Status Design for Environment Product Instance Compliance Design Process Recyclability Energy Consumption Recovery Treatment Reporting/Analys is Inspection Product Audit Material Manifest Issue Destruction Certificate CAR Disposal Certificate Disposal Operations Cost COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 14
Customer #1 Case Study: Budgeting for Green 4$500 M annual revenue technology company 4 Started a green project 8 months ago 8 Going from “brown” to “green” for all products and manufacturing processes 4 Cross functional team from materials management, engineering, soldering assemblers, and senior management 4 Estimated 18 months and 40 employees to complete the project 4 Involve tens of thousands of P/Ns and reengineering of many business processes 4 Estimated costs: 1 -2% of revenue 8 Up to $10 M for an “unbudgeted and unplanned expense” Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 15
Customer #1 Case Study: Role of Agile 4 Two key processes: 8 Collect and manage compliance data on parts and components (and clean up parts list) 8 Manage transition process for all products 4 Implemented Agile 9 and Agile PG&C 8 Configured and implemented simultaneously Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 16
Agenda 4 Environmental Compliance Best Practices 4 PLM Cross-Industry Best Practices Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 17
What is Product Lifecycle Management (PLM)? PLM enables companies to maximize product profitability through the management, coordination and optimization of the information, information processes and decisions about products, products throughout the product lifecycle & across the extended enterprise Concept Design & Develop Prototype & Pilot Launch & Ramp Production Service & Support Phase-out & Disposal PORTFOLIO Resource & Product Portfolio Management MARGIN Cost & Risk Lifecycle Management INNOVATE Customer Need to Release LAUNCH & PRODUCTION Commitment to Fulfillment SERVICE Customer Shipment to Obsolescence COMPLIANCE Regulatory & Standards Management Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 18
PLM Enables Cross-Functional Coordination Across the Product Lifecycle Customers, Partners & Suppliers Engineering & Development Purchasing & Finance Operations & Supply Chain Sales & Marketing Service & Support Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 19
Industry Focus Pharmaceutical CPG Pharmaceuticals Automotive Medical Device Aerospace & Defense Consumer Packaged Goods Industrial Equipment Semiconductor Agile Corporate Overview Electronics & High Tech Software COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 20
Pharmaceutical Business Challenges 4 Business Environment 8 Lack of solid drug pipeline 8 Long development cycles, with huge investments and risks for new products 8 Cost & distraction of acquisitions 8 Increasing regulatory scrutiny 4 Business Challenges 8 Increase flow of new products to market 8 Reduce time of product development 8 Remove high cost paper intensive processes 8 Improve product portfolio performance 8 Integrate marketing, R&D, and manufacturing Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 21
Pharmaceuticals PLM Best Practices 4 Reduce time, cost & regulatory compliance liability of labeling & packaging management 8 Central enterprise repository for label, artwork & pack information 8 Role-based change control & approvals 8 Workflow-based processes for executing controlled change management 4 Increase speed and profitability of New Product Development & Introduction 8 Stage-gate based project management 8 Resource management and allocation 8 Management level oversight 4 Agile. Compliance with FDA regulations Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 22
CPG Business Challenges 4 Business Environment 8 30 -60% sales from products launched <3 years 8 <30% of new product launches succeed 8 Accelerating private label brands 8 Mature products/brands facing price erosion 8 Consumer safety & tastes driving product proliferation 4 Business Challenges 8 Data accuracy, consistency, timeliness 8 Fast product introductions causing product data complexities 8 Co-packing, outsourced design, artwork, & filling stressing CPG companies Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 23
CPG PLM Best Practices 4 Consistent & efficient management of the global product record 8 Specifications, packaging, labeling, documentation, certifications 4 Rapid introductions of new products & brand extensions 8 Repeatable & predictable stage-gate NPD&I processes 8 Packaging & labeling collaboration 4 Improved product revenue opportunities 8 Prioritize across a portfolio of enterprise wide products 4 Improved product quality & compliance Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 24
Packaging and Labeling A Complex Information and Process Issue Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 25
Packaging and Labeling A Complex Information and Process Issue Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 26
PLM in Semiconductor Foundries PLM Agile Corporate Overview Fabless Semiconductor PLM COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 27
Semiconductor Product Record Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 28
Product Development Process (PDP) Definition 4 Define product for the market and evaluate feasibility 4 Define the specifications for the product 4 Involve production and R&D team early in life cycle Lead: Marketing Agile Corporate Overview Development 4 Develop detailed designs for the product 4 Verify and drive DFM 4 Evaluate prototypes and samples for functional and characterization 4 Manage changes and quality Lead: Engineering Production 4 Manage changes to design in early ramp 4 Transfer process finetune knowledge to production 4 Volume production through and increased yields 4 Closed loop feedback to design Lead: Fab COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 29
PDP - Development Prelim Design Mfg. Review Design 4 Develop test structure documents 4 Overall architectural design 4 Develop manufacturing plans 4 Simulation models and results Agile Corporate Overview Pre Tape-Out Fabrication Character -ization 4 Verify functional behavior 4 Characterize device 4 Identify yields and manufacturing issues Samples Reliability 4 Assure production meets targets 4 Verify that parts meet specifications COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 31
Product Portfolio Management Removing Process Inefficiencies in Semi Open Closed Phase 1 Task Gate Open Closed Phase 22 Gate Closed Phase 3 Gate Phase 4 Task Deliverab e. g. Review masks Task of Singlele. View the Product and Deliverables Uniquely Connect Task Program Across the Enterprise Deliverab Program with Underlying Product Deliverab mask e. g. Approve Program Status Instantaneously le le and Supply Network Deliverab. Record Updated When Deliverable is le Complete R&D Info Management NPI Management Product Transfer Phased, Stage-Gate Processes of the R&D to Mfg – (design to tape-out) Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 33
Semiconductor PLM Best Practices: Agile @ Qualcomm 4 Key drivers for Agile implementation 8 IP protection 8 Release cycle time reduction 8 Self-service and process automation 4 Implementation scope and timeline 8 Product Collaboration module 8 First BU live in 2001; Company wide in 2003 45800 named users and growing 41 centralized instance accessed globally 4 Benefits Realized 8 More secure management of IP 4 Single, secure repository for product data 8 Faster turnaround of higher volume with fewer people 8 Increased design collaboration internally and externally Agile Corporate Overview Source: COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Norm Fjeldheim, Qualcomm SVP & CIO, Agility Orlando 2004 34
Qualcomm Application Architecture 4 Agile is the foundation application at Qualcomm 4 Agile has the largest user base and highest usage rates 4 All other applications integrate to Agile for key product data Billing Systems QCT QIS QWBS N/A Custom Arbor Sales Force Customer Care Manufacturing Distribution Acct/Finance Engineering Agile Corporate Overview Source: Siebel N/A QGov Corp N/A Siebel N/A Oracle Peoplesoft Agile COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Norm Fjeldheim, Qualcomm SVP & CIO, Agility Orlando 2004 35
Software Business Challenges 4 People. Soft Business Challenges 8 Slow growth and price pressure: ERP is becoming a commodity 8 Integration with JD Edwards 8 Have not started yet the outsourcing journey 4 People. Soft Strategy 8 Reduce development cost for new release 8 Better manage projects and market requirements 4 Veritas Business Challenges 8 Overall PD inefficiencies: no common processes/systems 8 Very competitive market (big SW & small start ups) 8 Too many fronts: very large and complex footprint 4 Veritas Strategy 8 Better manage portfolio of products: where should I 8 spend my development $? Improve development efficiency with common processes and systems Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 36
Software PLM Best Practices: Customers Agile Corporate Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 37
Software PLM Best Practices: Agile Future uses of Agile solutions include software quality management with CRM integration, software (CASE) integration, & requirements management Executive, team, & individual visibility to product development program status & deliverables Agile Corporate Overview Cross-program portfolio management & resource utilization Product record deliverables managed in Agile seamlessly linked with the program record COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL 38
Thank You © COPYRIGHT 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL.
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