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

Develop & Submit Quote

After the Supplier evaluates the RFQ, they develop the quote. This process involves tasks such as:

Creating derivative models and RFQ information if sub-tier suppliers will be needed
Compiling quotes from sub-tier Suppliers
Evaluating the capability and capacity of production operations to make the requested part
Determining material costs and availability
Understanding Workforce requirements
Determining Inspection and Analysis capabilities
Determining what Certifications are required

The quoting effort is non-recurring engineering and can be expensive for the Supplier if done poorly. The quote or bid will include data such as: price, delivery schedule, any exceptions to the terms and conditions, quality certifications, etc. After the quote or bid has been developed, the final Supplier bid package is then provided to the Customer as per the instructions provided in the RFQ.

Modern tools, like Supplier Relationship Management (SRM) and Portals facilitate collaboration between the Supplier and Customer to address issues within the RFQ such as manufacturability concerns, requirements questions, modification requests, etc. Such collaboration can help reduce the time and cost for Supplier and Customer and reduce risks. Digital methods for communicating the quote or bid to the Customer include responding through a Portal or having the response sent from a Supplier’s Enterprise Resource Planning (ERP) or Customer-Relationship Management (CRM) software.

Develop & Submit Quote

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Digital Solutions

Standardized Quoting development process (Supplier) - Improved process efficiency

Standardized Quoting development process (Supplier) - Improved process efficiency

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Automated quoting tools can be used to more effectively develop accurate quotes that not only help win more business but can also optimize a Supplier’s production.
BENEFITS: Reduced effort, Reduced costs
Standardized Digital RFQ (Customer and Supplier) - Standardized data

Standardized Digital RFQ (Customer and Supplier) - Standardized data

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Consistently structured RFQs with complete data make it easier for potential suppliers to respond. All the specifications required by the Customer are listed in an easily understood format decreasing quote development time through minimizing delays. Accurate and complete RFQs eliminate the risk of developing an incorrect quote price for the Customer.
BENEFITS: Decreased risks, Better quotes, More accurate quotes
More Competition (Customer) - Improved Competitive Advantage

More Competition (Customer) - Improved Competitive Advantage

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Thorough RFQs that reduce or eliminate the Supplier’s non-recurring engineering costs will encourage more Suppliers to respond. Increasing the number of responses has been shown to decrease costs and delivery time.
BENEFITS: Better quotes, More quotes, Reduced costs, Reduced lead time
Digital Collaboration - Improved communication

Digital Collaboration - Improved communication

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Using digital communications that permit direct connections between Suppliers and Customers can provide an opportunity for the Customer and Supplier to collaborate on manufacturability issues in the RFQ. The result of this collaboration is reduced quote prices, reduced time, and decreased risks. Digital communications solutions can facilitate collaboration and ensure that the digital thread remains intact by capturing each response, notifying individuals quickly, and archiving the conversation for future reference.
BENEFITS: Reduce quote prices, reduce time, decreased risks
Sub-tier Suppliers management (Customer and Supplier) - Improved process efficiency

Sub-tier Suppliers management (Customer and Supplier) - Improved process efficiency

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Software solutions, such as Enterprise Resource Management and Supplier Relationship Management can manage the RFQ process for sub-tier Suppliers. These tools cannot only reach a broader range of Suppliers in less time, they also help the Customer more quickly analyze the responses and then will even notify the selected Suppliers when they are chosen.
BENEFITS: Reduced lead time, Reduced effort

Potential Issues with this Activity:

Manufacturability issues in Quote - Manufacturability Issues

Manufacturability issues in Quote - Manufacturability Issues

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Designers and Engineers will often make design choices without considering the manufacturability of a part. While manufacturers may be able make the part as specified, a simple conversation between the Supplier and the Customer could identify compromises that would result in lower quote prices and saved time and money.
COST: Inaccurate quote, Increased costs, Increased lead time
RELATED SOLUTIONS: Digital Collaboration
Inefficient Quote preparation - Inefficient Processes

Inefficient Quote preparation - Inefficient Processes

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Suppliers evaluate an RFQ and prepare the quote hoping to ensure that there are no unexpected costs when the part is made. In many cases, the Supplier must translate or recreate the Customer’s 3D models and drawings to determine time and costs for the quote. Relying on an engineer for this quoting effort is not only an expensive resource for the task, it also takes away the engineer’s time from other responsibilities. Attempts to limit the engineer’s time for quoting or to have a non-engineer complete the task can often lead to inaccurate quotes that result in the supplier having to bear the costs of additional rework and scrap.
COST: Increased lead time, Increased costs, Increased risk
RELATED SOLUTIONS: Standardized Quoting development process
Incomplete RFQ information - Incomplete information

Incomplete RFQ information - Incomplete information

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Through the evaluation process, errors and omissions may be found that may require additional investigation and a question and answer session with the Customer. To protect their Intellectual Property (IP), Customers will often limit the amount of technical data shared with potential Suppliers since once the technical data is sent out it is no longer under the Customer’s control. The result may be incomplete information in the RFQ, requiring the Supplier to request additional information, which increases lead time. Suppliers will sometimes make assumptions about the missing data, resulting in an incorrect cost or part being quoted. Costs: Increased costs, Increased risks, Increased time
COST: Increased costs, Increased risks, Increased time
RELATED SOLUTIONS: Digital RFQ Creation, Neutral File Format/Translation, Supplier access through a portal to the appropriate information, Standardized Digital RFQ
Sub-tier Supplier delays - Inefficient communication

Sub-tier Supplier delays - Inefficient communication

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The Supplier cannot develop its quote until it has received its sub-quotes from its sub-tier suppliers. If these sub-tier suppliers experience a delay this directly results in a delay to the original Supplier’s quote to the Customer.
COST: Increased lead time, Increased costs
RELATED SOLUTIONS: Sub-tier Supplier management

BENEFITS

BENEFITS

BENEFITS

BENEFITS

BENEFITS

Develop & Submit Quote

Digital Solutions

Standardized Quoting development process (Supplier) - Improved process efficiency

Standardized Digital RFQ (Customer and Supplier) - Standardized data

More Competition (Customer) - Improved Competitive Advantage

Digital Collaboration - Improved communication

Sub-tier Suppliers management (Customer and Supplier) - Improved process efficiency

Potential Issues with this Activity:

Manufacturability issues in Quote - Manufacturability Issues

Inefficient Quote preparation - Inefficient Processes

Incomplete RFQ information - Incomplete information

Sub-tier Supplier delays - Inefficient communication

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