nils johansson, volvo cars, presentation nr.2
TRANSCRIPT
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XMTD
SASIG XMTD WG Gothenburg May 2004Nils Johansson Volvo Cars IT, PD
Odette Sweden
EXCHANGE MANAGEMENT OF TECHNICAL DATA
Business Case for XMTD at Volvo Car Corporation
ENGDATAbstract
ENGDAT Package
Sender Receiver
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XMTD
From concept to From concept to componentscomponents
XMTD
Business
case
study
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XMTD
Volvo Cars Body Components is the Competence Center within Volvo Car Corporation
for forming and joining of automotive body components in metallic materials as well as analysis and prematching of
the complete body-in-white.
We are an integrated part of theVolvo Car Corporation processes.
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XMTD
Product Range
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XMTD
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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XMTD
Globalisation
?
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XMTD
Lead Time
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XMTD
XMTD Cost
EstimatedInvestment
EstimatedAutomatizationPhysical Media
https SecureInternet
ISDN ENGDAT
ENGDAT V3
EstimatedTransferCapacity
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XMTD
Local Standard Global Standard
InterfaceCount136
InterfaceCount
234681012152845132
Business Drivers – Logical View
Order of n(n-1) Order of nXMTD Application Count = 12
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XMTD
Business Case :
Engineering Data Exchange for Volvo Cars Corporation
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XMTD
ENGDATISDN
httpsSecure Internet Partner
XMTDUser interfaceXMTD
User interface
Volvo Cars
Physical MediaXMTD: Current State
12
XMTD
Volvo Cars 1900 Engineers XMTD connections
Volvo Cars XMTD Partners
Https Secured Internet
100 9%
ENGDAT ISDN 400 36%
Physical Media 600
55%
Total1100100%
Volvo Cars 1900 Engineers XMTD connections
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XMTD
Alternative media "market shares" of Technical Data Transfer
Physical Media 90 000 Mb
23%
Https Secure Internet
30 000 Mb 8%
ENGDAT ISDN
270 000 Mb 69%
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XMTD
ENGDATISDN
httpsSecure Internet Partner
XMTDUser interfaceXMTD
User interface
Volvo Cars
Physical Media
ENGDAThttps
Achievement of our Mission
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XMTD
Example of how to calculate potential savings on improvements in XMTD transmission on OEM and Tier 1 level
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XMTD
ESTIMATED Technical Data Transfer Costs in SEK
ENGDAT ISDN 540 000
Cost Factor 2 46%
Https Secure Internet 15 000
Cost Factor 0,5 1%
Physical Media 630 000
Cost Factor 7 53%
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XMTD
ESTIMATED Saving cost components ENGDAT V3 SEK
Annual Savings:
1 % of Global Supplier Choise Savings 2 184 000 SEK/Year1 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/YearChangeover (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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XMTD
ESTIMATED Saving Components ENGDAT V3 in SEK
0
1000000
2000000
3000000
4000000
5000000
6000000
1
Globalisation --- Lead Time ---- XMTD ---- Total --- Changeover
SE
K
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XMTD
General Conclusion: Most OEM:s 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 SEKFord requires the payback period to be one year or less. Since 470 400 < 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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XMTD
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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XMTD
Nils JohanssonProject Leader EDI
+46 454 264166
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Thank You for your Attention!