Digital Manufacturing

The Customer Supplier Interoperability (CSI) program was sponsored by the Department of Defense and the US Air Force Research Laboratory, ManTech division. The program’s goal was to develop solutions for engineering inefficiencies associated with technical data exchange and to accelerate the adoption of Model-Based Definition (MBD) methodologies in defense supply chains. Through the automation of manual tasks, CAD validation, and advanced toolsets, the CSI program paves the path toward MBD for the defense industrial base.

BENEFITS

Savings of approximately $50 million per year when fully adopted by all supply chain members in a large defense acquisition program.
With major programs exceeding 20 years in duration, this could result in more than $1 billion in projected savings.

Source: International TechneGroup

Force Protection Inc. (FPI) develops defense products and vehicles for the government. Their status as a government contractor means that FPI must conform to the strict government rules surrounding the communication of sensitive data. Failure to do so would result in fines or the loss of contracts. In response to this new need for security and accountability, FPI deployed MBE CAD data exchange software throughout its engineering teams, and the software is now used for all design and engineering data transfer.

BENEFITS

Control, flexibility, security, ease of use
Now have monthly logs of all data transfer activities, a key requirement for the US government.
FPI meets all of the strict requirements for security and accountability set by the US government.

Source: International TechneGroup

Thales implemented MBE CAD data exchange software to automate the flow of product data among its internal users. The web-based system provides a convenient, reliable and secure method for translating engineering data. This will be expanded in the second stage of implementation to include data transmission between Thales and its customers and suppliers.

BENEFITS

Time savings of 80%

Source: International TechneGroup

Samsung began by implementing the MBE CAD data exchange software at its Visual Display and Printer Divisions. The MBE CAD data exchange software allowed Samsung to more easily share quality data between various systems including design, collaboration, and data management. Multiple in-house applications utilize MBE CAD data exchange software as a secure backend server, for translations and validation. Samsung’s new data exchange software is also linked to its global suppliers.

BENEFITS

Delivery of data to customers and suppliers has been reduced from days to minutes
Improved process efficiency
Significant time savings

Source: International TechneGroup

U.S. Navy Naval Air Systems Command (NAVAIR) Naval Air Warfare Center Aircraft Division (NAWCAD) Model-Based Definition (MBD) Case Study: NAWCAD Lakehurst is the center of excellence for Aircraft Launch and Recovery Equipment (ALRE) and naval aviation Support Equipment (SE). NAWCAD moved to a 3D MBD environment, which required the conversion of conventional 2D drawings to a 3D digital product definition. 3D PDFs containing digital product definition became the single source of data through the product development process.

BENEFITS

Realize greater than $3 million in annual savings
Reduced costs, increased quality, shorter schedule cycles
33% reduction in new item development schedules expected

Source: International TechneGroup

Communicate RFQ

Once the RFQ package has been prepared, procurement identifies the characteristics for desirable Suppliers that should be considered to receive the RFQ. With the desirable characteristics known, current Suppliers can be considered, and/or new potential Suppliers can be found. The RFQ is then communicated to the selected potential Suppliers. Traditional unstructured communication methods vary but often include:

Email (most common)
Fax
Physical Delivery
Supplier Portal

(A supplier portal can be used to communicate the RFQ to the potential Suppliers by providing access if the Supplier is not a current provider.)

In a digital environment, CAD and CAM software can be valuable assets when determining what the requirements are for a given RFQ. The identification of capable Suppliers is made simpler by using Procurement software that can be used to analyze existing Suppliers and find potential candidates for the job based on the requirements and performance indicators. A digital RFQ is then issued electronically utilizing eSourcing tools or an Enterprise Resource Planning (ERP) system. The Supplier is then notified of the RFQ by their own system

A Supplier portal can be used to issue an RFQ Package to Suppliers that integrates communication and data interfaces. Such a portal allows prospective Suppliers to receive the PMI specifications they are authorized to access for a given RFQ, providing Intellectual Property security by not actually sending out the models thus losing control of the data. The Supplier will have full access to the required PMI through its portal between the two companies.

Communicate RFQ

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Digital Solutions

Digital RFQ management (Customer) - Improved process efficiency

Digital RFQ management (Customer) - Improved process efficiency

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An eSourcing solution can allow the RFQ to be sent to multiple qualified Suppliers and based upon the RFQ response, along with Supplier performance history, automatically choosing the desired Supplier. This system can also manage the process, providing reminders when Suppliers are slow to respond, escalating messages to supervisors if a Supplier contact is not responding and even alerting the originator so that other actions may be taken. Automated management of the RFQ process helps reduce time delays in product delivery.
BENEFITS: Reduced effort, Decreased risk, Reduced lead time
Structured Supply Chain communication (Customer) - Improved communication

Structured Supply Chain communication (Customer) - Improved communication

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Structured communication tools and processes allow Customers to more efficiently handle a larger pool of potential Suppliers. Additionally, potential Suppliers find it easier to respond using these advanced tools than through traditional means, increasing the likelihood that they will respond. The result is an increased number of RFQ responses in less time, which often leads to shorter lead times and lower prices.
BENEFITS: Reduced lead time, Reduced costs
Supplier access through a portal to the appropriate information - Improved Communication

Supplier access through a portal to the appropriate information - Improved Communication

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A Supplier portal can be used to issue the RFQ Package to Suppliers that integrates communication and data interfaces. Such a portal allows prospective Suppliers to receive the PMI specifications they are authorized to access for a given RFQ providing Intellectual Property security by not actually sending out the models, losing control of the data. The Supplier will have full access to the required PMI through the portal.
BENEFITS: Reduced lead time, Reduced costs

Potential Issues with this Activity:

Slow Supplier response - Communication Inefficiencies

Slow Supplier response - Communication Inefficiencies

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There are several factors that may contribute to slow Supplier response to an RFQ when using traditional communications tools, like email and fax. A few are: RFQ is buried in the Supplier’s email inbox. Salesperson is on vacation or is no longer in that position. Supplier too busy to respond. This can lead to additional Customer resources being expended to track down the status of an RFQ response. The delay in responding to the RFQ can result in a hurried response that has the potential to miss important items and increase overall costs. For the Customer, a slow response can result in less competitive RFQ responses being received. This leads to an increased rejection rate by the Customer and an increased delay in the Customer receiving the needed product from a Supplier.
COST: Increased Costs, Increased Time
RELATED SOLUTIONS: Digital RFQ Management, Structured Supply Chain communication, Supplier access through a portal to the appropriate information
PMI loss during communication - Incomplete PMI

PMI loss during communication - Incomplete PMI

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When the RFQ is being communicated to the potential Supplier, it is possible for parts of the file to not arrive as intended by the Customer. This can be caused by security filters, firewalls, or a faulty transfer that results in corruption of needed files.
COST: Increased Time, Increased Costs
RELATED SOLUTIONS: Digital RFQ Management, Structured Supply Chain communication, Supplier access through a portal to the appropriate information

BENEFITS

BENEFITS

BENEFITS

BENEFITS

BENEFITS

Communicate RFQ

Digital Solutions

Digital RFQ management (Customer) - Improved process efficiency

Structured Supply Chain communication (Customer) - Improved communication

Supplier access through a portal to the appropriate information - Improved Communication

Potential Issues with this Activity:

Slow Supplier response - Communication Inefficiencies

PMI loss during communication - Incomplete PMI

Evaluate the RFQ