Industrial Equipment Manufacturing Microsoft Dynamics AX Name Title

Industrial Equipment Manufacturing Microsoft Dynamics AX Name Title Microsoft Corporation

Agenda • • • Industry Overview Industry Trends and Challenges Microsoft Dynamics AX value proposition Customer Evidence Microsoft Dynamics AX Industry Builder Solution

Industry Overview Design Intensive Conglomerates and Clusters Highly Variable Customer Demand

Industrial Equipment Clusters Professionals Collaboration and progress reporting Expense Reporting Staff Managers Skills-based staff mgt Utilization and Realization Clients Schedule Status Financial Status Practice Managers Portfolio Management Profitability Financial Management Business Development Accounting Staff Billing, Revenue Recog Purchasing, Payroll AR, AP, GL Engagement Managers Project scheduling/updates Project Profitability

Industrial Equipment Industry Trends • International acquisitions, mergers and joint ventures • Products must meet ever-increasing quality, safety, and performance measures • Standardized global business practices, designs and procurement contracts • Continuous improvement for greater efficiencies, quality, cost and process improvements • Managing customer relations and capacity on global basis

Industrial Equipment Industry Trends • Outsourcing/buying of components – more focus on value add/final assembly • Higher product complexity, same highest quality expectation • Partnering with selected customers – long time relationships to improve product life cycles • Streamlined product movement from incoming receipt, through manufacturing to shipment • Customer Visibility to order status at any time

Industry Challenges • Managing Complex Design, Quoting and Manufacturing Processes • Increasing Customer Demands for Higher Quality and Lower Cost • Dealing with Global Customers, Suppliers and Competitors • Connecting Across a Complex Supply Chain

Three Key Industry Modes Manufacturing Focused Business Model Competitive Differentiation Key Issues Industry Examples • • • Life Cycle Focused Project Focused • Service networks • Maintenance plans • • • Enhanced consultancy services Knowledge-based Installation site management • Flexibility to customer demand • Price • Quotation management • Subcontractors • ROI on customer • • Engineering and consultancy Installations • Components • Smaller machines • Pumps • Industry machinery Engineer-to-order (ETO) Job shop Configure-to-order (CTO) investment • Preventive maintenance • Maintenance strategy • • • Project management Compliance and regulations Material handling Plant systems Construction equipment

Four Key Industry Challenges Protecting IP • Market protection issues • Low-wage competitors in developing countries Managing Regulatory Compliance • Labor safety and product safety Customer ROI and Product Efficiencies • New payment models New Opportunities • Global deployment of operations • Environmental issues • Warranties and contracts • New revenue opportunities

Microsoft Dynamics AX

Applications And Architecture Affordable Adaptability

Microsoft Dynamics AX Overview • Broad-based ERP solution: 1 Database 1 Toolbox, 1 Business Logic, 1 Source Code • Technology: Scalability, 3 Tier, highly customizable • Connectivity: Multi Site, Multi Company, Enterprise Portal and Commerce Gateway • Global: Local functionality, Multi Currency, Multi Language • Three Typical Scenarios – Out-of-the-Box – Customized to fit customer needs – Partner Add-ons/Vertical Solutions AX

Microsoft Dynamics AX Value Proposition Microsoft Dynamics AX helps you quickly and affordably seize competitive advantages in a rapidly-changing global marketplace

Three Big Reasons To Choose Microsoft Dynamics AX Affordably Adaptable The powerful core solution together with ISVdeveloped industry-specific functionality and an integrated suite of powerful customization tools give you a solution that is tailored to your exact needs— with a higher ROI than Tier-I competitors. Scalable The three-tier, object-oriented architecture of Microsoft Dynamics AX offers you high-speed server-side performance and the ability to easily scale your IT infrastructure, so the solution can grow with your company. Global Microsoft Dynamics AX gives you built-in multisite, multi-language and multi-currency capabilities in more than 30 countries, as well as local tax, regulatory and market requirements.

Microsoft Dynamics AX For The Industrial Equipment Industry Empowers industrial equipment manufacturers to optimize their manufacturing processes and supply chain for increased profitability.

The People You Will Meet At A Customer Quality Labor Regulations Environmental issues Regional Compliances R&D Concurrent Engineering, Collaborative design models, Automating the quotation phase Sales Support for our operations CEO Profit Visibility Strategic Deployment of operations Operations Managing Clusters, Flexibility to customer demand, Getting customer requirements ASAP Service As-Build Documentation, Preventive Maintenance, Dispatching

Microsoft Dynamics AX Supply Chain Management • • • Trade Intercompany Logistics Product Builder Production • • • Master Planning Shop Floor Control Warehouse Management Commerce Gateway Enterprise Portal

Microsoft Dynamics AX For Industrial Equipment Manufacturing Operational Flexibility Connectivity Insight

Operational Flexibility • Optimize production flow using strong planning and scheduling tools with built-in flexibility • Quickly respond to changes to take advantage of sales opportunities or avoid production bottlenecks • Offer customized products cost effectively

Connectivity • Deliver on time and increase customer satisfaction – Real-time information sharing between production, sales, finance, warehousing and purchasing • More accurately match production with demand • Provide timely and accurate delivery information to customers • Source raw materials across locations and minimize stock-holding costs

Insight • Make tactical changes to increase production efficiency with insight into production schedules and costs • Increase the efficiency of product design and BOM creation • Gain insight into and increase the efficiency of shop floor operations

Vendors Warehousing Execution and Control Procurement Planning Demand Generation Product Builder Customers Microsoft Dynamics AX Manufacturing

Microsoft Dynamics AX For Manufacturers Advanced and Flexible Manufacturing Functionality Unique Architecture, Low Total Cost of Ownership Connectivity throughout the Supply Chain Global and Local Functionality

Customer Evidence

NAI achieved a positive return on its investment in Microsoft Axapta by reducing inventory costs, realizing direct savings in personnel costs, and increasing the productivity of employees through reduced downtime. North Atlantic Industries Achieves Positive Return on Investment With Microsoft Axapta The technology that NAI was using for managing data for enterprise resources and planning fell short of the needs of users in various departments Link to Case Study Here: The company selected Microsoft Business Solutions–Axapta because it was the most cost-effective solution available and it offered an open and flexible platform for future customization and integration Savings in personnel costs Elimination of former resource consuming system Increased productivity through eliminated downtime Reduced inventory

“Microsoft Axapta enables us to immediately install our business processes, thus allowing us to quickly improve and add value to the companies we acquire, as well as providing financial and reporting for analysis and consolidation. ” Oldcastle Precast Group — Bob Quinn, CFO, Oldcastle Precast Has Room to Grow and Acquire The company wanted a solution to fulfill basic business needs while being flexible enough to adapt to expected growth and expansion. They conducted an extensive evaluation of several tier one solutions Link to Case Study Here: Oldcastle Precast chose Microsoft Business Solutions–Axapta, a powerful and versatile business application that scales and adapts so medium-sized enterprises can successfully expand their businesses Customized functionality and flexibility Scalability and seamless integration Consistency in financial reporting International capabilities Ease of implementation and use

“In the past, we had unpredictable interruptions in our supply chain. Now, with Microsoft Axapta, we can foresee problems. We anticipate them and our system allows us to respond quickly so we can eliminate them. This has optimized our supply chain. ” Picanol Group —Marty Ellis, Business Line Manager, Picanol Group Leading Textile Industry Supplier Gains Global Support and Streamlined Processes The Picanol Group needed to update its out-of-date Enterprise Resource Planning (ERP) system and wanted to consolidate the various different systems being used across the group companies; it needed a solution that supported its global presence and ensured communication between the old and new systems, as well as with its customers Link to Case Study Here: The Picanol Group implemented Microsoft Business Solutions–Axapta in six of its group companies. This has improved, standardized, and simplified its business processes and IT infrastructure; for communication between several different internal and external systems, the Picanol Group uses Microsoft® Biz. Talk® Server Global support through the multisite, multilanguage, and multicurrency features Connectivity between customers and partners Optimized supply chain Integration with Microsoft Adaptable, scalable solution

“Microsoft Axapta is great and was the right choice for us, giving us limitless options to improve our business management and customer service. ” Pullmax — Lee Murrell, IT & Systems Manager, Pullmax End-to-end Supply Chain Integration for Pullmax needed a replacement for the Microsoft MS-DOS— based Pegasus system it had been using previously, and decided on a system that could handle its whole supply chain, including automating ordering, delivery and invoicing Link to Case Study Here: Microsoft Axapta with integrated applications including Financials, Logistics, Master Planning, Document Management and Customer Self Service Instant response rates Easy for customers to purchase through Internet Self Service applications Simple and fast reporting

VIDEO Picanol Group

Microsoft Dynamics AX Industry Builder Solution

Value Proposition Industrial Equipment Manufacturing for Microsoft Dynamics AX provides an integrated, adaptable business solution that can help you optimize production, increase profitability, and grow your organization while winning against global competition.

Solution Benefits Efficient Operations Extending the Business Competitive Innovation • Lean shop floor and beyond • Machines or systems • Managing and improving ingenuity • Doing more with less: spare parts and in-process • Life cycle support • Managing clusters • Efficient RFQs • Visible profitability • Installation services • Deploying a global network • Team-based development • From clusters to networks • Connecting digital equipment

Solution Scope Quote and Bid • • • Source and Engineer • Project planning • Outsourcing/ subcontracting Advanced quoting • Mfg. planning Project mgt. Engineering change • Cluster collaboration mgt. • Capacity planning • Product life cycle • Inventory mgt. • Quality control • Content mgt. • Product mgt. • Compliance mgt. • Collaborative design • Quality mgt. • More… Sales automation Sales configurator Service Build Install • • BOMs and routings • • Production planning • • Production • scheduling • • Production control • • Subcontracting • Work order mgt. • Lean mfg. • Configuration • Shop floor data collection • Quality control • Costing • Collaboration portals • More… Transportation mgt. On-site install mgt. • Project mgt. Document mgt. Collaboration mgt. More… • • Professional service mgt. Spare-parts planning Enterprise asset mgt. Warranty mgt. More…

Solution Map

A Solution to Help You Hurdle These Roadblocks Manage operations and increase efficiency from quote to delivery Extend operations globally and increase life cycle support Gain momentum from competitive innovation of products, processes, and services

Hub and Spoke Solutions As-Built Documentation Warranty Mgt. Sales Automation Spare Parts Planning Service Mgt. Project Mgt. Dispatching Manufacturing Division and Plant Level “Spokes” Cluster Mgt. As-Built Documentation PLM Warranty Mgt. EAM Spare Parts Planning Service Mgt. Dispatching CEO Pain How do I deploy global operations efficiently? Problem Will operations be connected to help ensure smooth exchange of information? Visualize Solutions What if you could implement a system that would begin to lower your manufacturing costs in 3 to 6 months?

Save Time, Resources, and Money • Enhance production efficiency using strong, flexible planning and scheduling tools • Gain insight to optimize “lean” production, avoid bottlenecks, and manage process improvement • Improve inventory management to minimize costs

Increase Innovation for a Competitive Advantage • Offer customized products more quickly and cost-effectively • Better coordinate sales, design and production processes, and information • Provide more innovative service delivery

Extend Your Business • Manage the entire product life cycle for opportunities to increase service and life cycle support • Link multiple locations and inventories for greater efficiency • Expand globally

Maximize Your IT Investment Adaptable at an attractive price Industry-specific functionality and powerful customization tools give you a solution tailored to your exact needs—with a faster ROI. Scalable A single, flexible architecture offers the ability to easily scale your IT infrastructure, so the solution can grow with your company. Integrated Smooth links with the full range of Microsoft products and guidance from Microsoft Dynamics Support Services mean a better return on your overall IT investment.

Maximize Your IT Investment Rapid, Positive ROI • Faster ROI • Recent independent ROI research – – 75% positive ROI within 23 months 56% reduced staffing costs 44% reduced IT costs versus legacy systems Other cited benefits: improvements in inventory turns, delivery times, productivity, and working capital From a study by Nucleus Research Inc. , The Real ROI from Axapta. Research Note E 116, October 2004

© 2006 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

© 2006 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.