| Author name 1 | Author name 2 | Date © Copyright IBM Corporation

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Working Together: Helping Global Companies Achieve Their PLM Vision

2006 PLM Best Practices ConferenceSeoul, South Korea

Stan Przybylinski, Strategic Marketing, Dassault Systèmes

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Agenda

1

2

3

4

CAD Yields Significant Benefits

Moving to PLM

What the Market is Saying

Building Your Business Model Around PLM

5 IBM/DS Product Lifecycle Management

6 Conclusion

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CAD Yields Significant Benefits

SAP Company Profile

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From Design to PLM and Beyond

3D3D

Virtual ProductVirtual ProductModelModel

Product Product Process Process ResourceResource

KnowledgeKnowledgeInsideInside

3D Collaborative Tools3D Collaborative Tools

2D

3D

DMU

RealisticSimulationCollaborative

BusinessProcess

PLM

…

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Best Practices With Computer-Aided Design

Accumulation and utilization of technical knowledge and know-howEarly mold base order enables reduced mold delivery schedule50% reduction in 3D design time with DB implementationReduced CAM modeling loadReduced mold design defects based on 3D drawings

10% fewer design changes for quality enhancement than with 2-D methods33% reduction in modifications related to designVirtual models allowed for early detection of design problemsProblems solved before trial manufacture beganLate stage design changes completed quickly and easily

35% time-to-market reduction, from 14 to 9 months to complete a model and deliver it to the customer60% tooling preparation time reduction from 2.5 to one monthImproved product safety and qualityReduced manufacturing costHigher productivity among individual designers

Use the power of 3D modeling – embed your product and process knowledge in your 3D models

Reduce time to create new design variants

More accurate quoting for future business

Quality built-in from previous product generationsProvide in-depth training to maximize the value of your CAD investment

Users can employ the most appropriate functions to meet your business requirements

Increased designer productivity shortens your time to value and increases your ROI

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Moving to PLM

SAP Company Profile

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Why Move to PLM?

IBM Global CEO Study 2006

One in a series of IBM Business Consulting Services research programs

Survey of Chief Executive Officers (CEOs) of companies around the world

For example, 2004 study included:101 from Japan

142 from AP outside Japan

121 from EMEA

92 from Americas

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Partners and customers edge out employees for ideas

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Out-performers source 30% more ideas from outside

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Collaboration gap looms large in the mind of the CEO

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Challenges of Running a Global Company

Today, companies of almost any size, in any geography act globally

Customers everywhere

Cross border teams

Resources everywhere

Global brands

Best practices everywhereProduct Lifecycle Management solutions ideally suited to help

Source: Economist Intelligence Unit

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Best Practices With CAD Plus PDM

Shortened product development time by 30%, accommodating a 30% increase in business volumeImproved BOM accuracy 40%Improved mechanical design quality 70%Significantly reduced electronic design errorsFacilitated a move from serial to concurrent engineering and collaboration

R&D portalSupport for oversea branchesImproved convenienceSystem interfacePatent management system

Significant reduction in engineering changes40% reduction in development timeSubstantial reduction in modification costsDynamic reduction in manufacturing cycle time

CAD plus PDM about more than engineering – it is a company commitment

Need high level, active sponsorship to start and successfully complete projects

Need buy in from all affected functions, even some you may not think of, like human resources

Moving to PLM can change jobs and functions within the company

Working collaboratively may be new AND difficult for some –have to show them the benefits to the company and them as individuals

Communicate, communicate, communicateImportant to phase implementation to show early successesHave well documented processes BEFORE you startLimit customization if possibleNeed experienced implementation partner, not just for the sale but for the long term

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Building Your Business Model Around PLM

SAP Company Profile

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Business model innovation gains prominence

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V5 PLM : Boeing Global Collaborative Environment

Aerosud

Korean AirKAI

NippiKawasakiFuji HeavyMatsushitaJAMCOShinMaywaMitsubishi

SAC

SAIC

AIDC/ICAS

BHA (JV)

HindustanAeronautics

Limited

SingaporeTechnologies

Asian CompositesMfg. (JV)

XAC

CAC

HellenicAerospace

IAI/Bedek

TAICASA

Romaero

Alenia/OAN

BAeSmiths Ind.

Rolls RoyceTRW/Lucas

MATIS (JV)

CFMILabinal

Snecma

Shorts

Parker Hannifin

Hexcel

Goodrich

CFM United Tech.

Carlyle (Vought)Honeywell

Mexmil

ALCOA

Rockwell Collins

TRW/Lucas

Magellan GroupToronto

Winnipeg

Fisher

VSMPO

Aero Vodochody

WZK PZLMielec Ltd.

MAE

SASCO

TAPC

Melbourne

Bankstown

Moscow Design Center

Dubai

SeattleLondon

Amsterdam

BeijingGEOnamac Machine Works

Rohr

TAECO(JV)

Corinth/Irving

WichitaLong Beach

Puget SoundArnprior

60 sites, 300 suppliers : Common Processes, Methodologies and Software across the Extended Enterprise for the 787.

•Process•Systems•Training

•Infrastructure•Support•Software

GCE :

Critical Success Factors

Organizational CommitmentExtensive PLM PartnershipSkills Transfer Across the Enterprise

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PLM Business Transformation

Revision: 0Date:12-09 2002Made by YRS BDD Sheet: 5

• The world at a juncture: changing the product design and manufacturing equation

– Not simply an addition to the equation• Design + Manufacturing + Technology does NOT equal automatic improvements

– Instead, a complete “transformation” of the equation• 3D technology fundamentally alters the equation, creating a giant “what-if”

machine. Simulation at every level, through the entire lifecycle• Product Lifecycle Management (PLM) technology• PLM enabling innovation

– The challenges of the manufacturing world under pressure• Reduce Development Time and Cost • Maximize Partners and Supplier Chain Value• Adapt to new market needs and/or fluctuating market conditions• Transform business from product focus to service provider focus

The virtual and the realOur industry at a critical juncture

Brian Chang, Chairman and CEO Yantai Raffles, ChinaAt Daratech Plant, January 2006

Energy

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What the Market is Saying

SAP Company Profile

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4%

10%

18%

15%

4%

10%

18%19%

5%

10%

18%

21%

7%

10%

18%

22%

7%

10%

19%

23%

0%

5%

10%

15%

20%

25%

DS UGS PTC Autodesk

2001 2002 2003 2004 2005

DS, Leader of the PLM MarketDaratech New 2005

PLM Market Estimate* = $10.6bn, up +12% over

2004

DS won +1pt Market Share in 2005DS has won +8pts Market Share in 4 years

Source: Daratech and internal data

* Market size changes due to new market definition and sizing, including new UGS

enduser revenue

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IBM/DS Product Lifecycle Management

SAP Company Profile

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INTELLECTUALPROPERTY

INTELLECTUALINTELLECTUALPROPERTYPROPERTY

VIRTUALTangible Assets

REALOPERATIONS

REALREALOPERATIONSOPERATIONS

Non Tangible Assets

PHYSICAL

Product & Process Knowledge Production

The PLM Paradigm “Define Monitor and Control the Physical World”

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Product Lifecycle Management

3D3D

Virtual ProductVirtual ProductModelModel

Product Product Process Process ResourceResource

KnowledgeKnowledgeInsideInside

3D Collaborative Tools3D Collaborative Tools

2D

1970 1995 2000 2005 20101985

DMU

3D

PLM

“All manufactured goods will be digitally designed, produced and lifecycle managed” Bernard Charlès, CEO, Dassault Systèmes

CollaborativeBusinessProcess

RealisticSimulation

Digital Product Engineering and ValidationDigital Process Engineeringand ValidationLifecycle Synthesis

1

2

3

PLM enables:

Global Collaboration4

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Brand Clarity for Clear Values

Production Performance

EngineeringQuality

Global Collaborative Environment

Virtual Product Virtual Testing Virtual Production

Product Excellence

Concept Detail Synthesis Manufacturing MaintenanceVisionQuoting

Productive, easy to use3D Design

2DCollaborative PDM

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V5 PLM : Proven, Scalable, Open

1 Scalability : Full PLM Portfolio on 64 bit

234 Standards Adoption

5 Enterprise Integration

3D XML : Open 3D Format

360+ PLM-powered Third Party Applications

3DXML, OpenGL, VRML, HSF, XVL, TIFF, STEP, IGES, XML, SIP, J2EE, SharePoint

Portal, .NET, LDAP, SSL/TLS, HTTP/SOAP, BizTalk, WSDL, XSD, Web Services, WBI, C++ API, UML, SQL, ANSI C++, IEEE

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V5 PLM in ProductionDelivering compelling benefits for our customers

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Conclusion

SAP Company Profile

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Conclusion

CAD is a strong first step on the road to PLM

Global businesses need global solutions to support innovation, collaboration, and business model evolution

Product Lifecycle Management solutions from IBM/DS have proven to enable these business transformations

V5 PLM offers proven, scalable, open solutions to help your organization achieve your PLM strategy

The IBM/DS global ecosystem is ready to work together with you and to share success

Working Together: Helping Global Companies Achieve Their PLM VisionAgendaSAP Company ProfileFrom Design to PLM and BeyondBest Practices With Computer-Aided DesignSAP Company ProfileWhy Move to PLM?Partners and customers edge out employees for ideasOut-performers source 30% more ideas from outsideCollaboration gap looms large in the mind of the CEOChallenges of Running a Global CompanyBest Practices With CAD Plus PDMSAP Company ProfileBusiness model innovation gains prominenceV5 PLM : Boeing Global Collaborative EnvironmentPLM Business Transformation�SAP Company ProfileDS, Leader of the PLM MarketSAP Company ProfileThe PLM Paradigm �“Define Monitor and Control the Physical World”Product Lifecycle ManagementBrand Clarity for Clear ValuesV5 PLM : Proven, Scalable, OpenV5 PLM in Production�Delivering compelling benefits for our customersSAP Company ProfileConclusion