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

Volvo Car Corporation wished to enable better communication with its suppliers and to transfer the design responsibility of parts and subsystems to those suppliers. Utilizing an electronic product data management system (ePDM), they were able to implement these changes and create a digitalized engineering change environment that was real-time with defined expectations of the priority and speed at which the ECOs were performed.

BENEFITS

Improved visibility into the ECO process
Reduced time to implement Engineering change
Defined ECO expectations

Source: Pikosz & Malmqvist

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

Engineering Change Analysis and Approval

Engineering Change Analysis and Approval consists of a technical review to determine feasibility and cost; a business analysis to determine feasibility and Return on Investment (ROI), and a supply chain analysis to determine impact. The process includes an analysis of current inventory and Work In Process (WIP) to determine where in the production process the change is to be implemented and how remaining inventory is to be processed (use, rework, scrap).

If the Engineering Change Request is approved, the customer may need to make changes to the current Purchase Order. This change is likely due to time constraints related to implementing the Engineering Change. The customer may request a larger shipment to adjust to the downtime related to the change and/or adjust the terms and conditions based upon the nature of the change.

In a digitally enabled process the technical analysis reuses previous analysis which is updated with new information; cost data is pulled from Enterprise Resource Planning (ERP) and cost model systems; WIP data obtained from the Manufacturing Execution Systems (MES) or Inventory Management Systems; digital distribution of request is used for information to support the analysis.

Engineering Change Analysis and Approval

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Data exchanged in the Activity:

INPUT

Engineering Change Request
Drawings
3D Models
Associated Data
Process specifications
Defect reports
Field reports
Corrective action reports
Presentations
Cost analysis
Requirements documents
Proposals
RFI/RFP modifications
Supply chain reports
Technical/Test/Certification reports

OUTPUT

Revised Purchase Order
Approval/Disapproval/Further study required decision on the Engineering Change Request

Tools:

Enterprise Resource Planning (ERP)
Company Portal
Computer Aided Design Software (CAD)
Computer Aided Manufacturing software (CAM)
Computer Aided Engineering software (CAE)
PowerPoint
Excel
PDF

Digital Solutions

Digital Engineering Change analysis and approval - Improved Process Efficiency

Digital Engineering Change analysis and approval - Improved Process Efficiency

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Utilizing digital methods can reduce the effort required to respond to a change request and accelerate the analysis process of defining and approving the engineering change order. Performing this process more efficiently can reduce the overall time for the Engineering Change order. Doing this can minimize delays and costs that arise from affected WIP, inventory and fielded products. Improved Engineering Change Process efficiency minimizes the effect on the supply chain, residual effects of the change to other systems, and reduces the time required for the implementation of the solution
BENEFITS: Reduced effort, Reduced time, reduced costs
Improved data access - Improved Data Capture

Improved data access - Improved Data Capture

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Digital data collection and management means that the data required to perform the Engineering Change analysis is available and accessible by the engineers completing the process. This data ensures that a decision can be formed, and that further study is not necessary to solve the issue, reducing analysis time delays and costs.
BENEFITS: Reduced time, Reduced costs
Supply chain membership and relationships (dynamic) are made accessible to change analysis process - Improved Communication

Supply chain membership and relationships (dynamic) are made accessible to change analysis process - Improved Communication

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A connected supply chain can provide better visibility into who its members are. This can provide the Customer performing an Engineering change analysis with a better understanding of what the impact of the change will be. This means the Customer can better estimate costs and delays that will be associated with the change
BENEFITS: Better supply chain visibility, Reduced risk, Reduced costs, reduced delays

Potential Issues with this Activity:

Inaccessible data for Engineering Change analysis - Ineffective data capture

Inaccessible data for Engineering Change analysis - Ineffective data capture

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If the people analyzing the Engineering Change do not have access to the needed data, they will be unable to come to a decision and the result will be a request for further study or a disapproval.
COST: Increased time, Increase costs, Increased risk
RELATED SOLUTIONS: Digitalization of Engineering change activities
Delayed Engineering Change process - Inefficient Processes

Delayed Engineering Change process - Inefficient Processes

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Depending on the complexity and importance of the change required, the timing of an Engineering Change request could result in significant scrap and rework if not implemented efficiently. A lengthy change analysis and approval can potentially result in substantial investment in WIP that could be scraped or need rework when the request is implemented.
COST: Increased costs, Increased time, Increased risks
RELATED SOLUTIONS: Digitalizing Engineering change processes
Delayed Engineering Change process - Inefficient Processes

Delayed Engineering Change process - Inefficient Processes

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Depending on the complexity and importance of the change required, the timing of an Engineering Change request could result in significant scrap and rework if not implemented efficiently. A lengthy change analysis and approval can potentially result in substantial investment in WIP that could be scraped or need rework when the request is implemented.
COST: Increased costs, Increased time, Increased risks
RELATED SOLUTIONS: Digitalizing Engineering changes and approvals
Time/ Resource Consuming Engineering Change Analysis Process - Inefficient Processes

Time/ Resource Consuming Engineering Change Analysis Process - Inefficient Processes

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Performing an Engineering Change analysis can be costly for the companies involved. Significant Engineering time and effort are required to determine the analysis results and unstructured communication with other Supply chain entities can draw out this process much further than is necessary.
COST: Increased time, Increased costs
RELATED SOLUTIONS: Digitalizing Engineering change processes
Impact to fielded products - Product Lifecycle

Impact to fielded products - Product Lifecycle

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An engineering change can impact not only products in current production, but also products which have already been delivered to the customer. Depending on the severity of the change this can result in recalls, grounded products, or the product having to be used in a limited capacity until the change is made. Any of these outcomes can result in significant costs and delays being accrued by the company.
COST: Increased costs
RELATED SOLUTIONS: Digitalizing Engineering change processes
Top-to-bottom supply chain not visible - Inefficient Communications

Top-to-bottom supply chain not visible - Inefficient Communications

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With an extensive supply chain, it can be difficult to know all the different participants within a company’s supply chain. This makes estimating the impact of an Engineering change very difficult and can result in significant delays and costs that were unexpected by the Customer.
COST: Increased delays, Increased costs
RELATED SOLUTIONS: Digitalizing Engineering change processes
Cost of analysis to suppliers when they are not the cause of the problem but are part of potential solution - Supply Chain Impact

Cost of analysis to suppliers when they are not the cause of the problem but are part of potential solution - Supply Chain Impact

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Costs associated with the change analysis and approval are not limited to the Engineering Change originator and the Customer. Other Suppliers can experience increased costs due to the change request from another supplier within the same supply chain. The second, unrelated supplier could be a part of the solution or unknowingly a part of the problem. In either of these cases, the supplier would accrue costs due to the analysis.
COST: Increased costs to suppliers
RELATED SOLUTIONS: Digitalizing Engineering change processes

BENEFITS

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BENEFITS

Engineering Change Analysis and Approval

Digital Solutions

Digital Engineering Change analysis and approval - Improved Process Efficiency

Improved data access - Improved Data Capture

Supply chain membership and relationships (dynamic) are made accessible to change analysis process - Improved Communication

Potential Issues with this Activity:

Inaccessible data for Engineering Change analysis - Ineffective data capture

Delayed Engineering Change process - Inefficient Processes

Delayed Engineering Change process - Inefficient Processes

Time/ Resource Consuming Engineering Change Analysis Process - Inefficient Processes

Impact to fielded products - Product Lifecycle

Top-to-bottom supply chain not visible - Inefficient Communications

Cost of analysis to suppliers when they are not the cause of the problem but are part of potential solution - Supply Chain Impact

Change Communication