“round the clock product development by effectively working globally ” - eric van essen

Example TitleExample Title

Example SubtitleExample Subtitle

““Round the clock product Round the clock product development by effectively development by effectively

working globallyworking globally””

- Eric van Essen- Eric van Essen

Javelin Technologies has been serving Canadian customers since 1997Javelin Technologies has been serving Canadian customers since 1997

Agenda

Industry trends and market forces

Company behaviour

Country strengths and weaknesses

Current findings and challenges

Case studies

Ways that Javelin and SolidWorks are helping

Conclusions

"It is not the strongest of the species that survive, nor the

most intelligent, but the one most responsive to change“

- Charles Darwin

“Innovation distinguishes between a leader and a follower“ - Steve Jobs

“Did You Know” Video

Quotes of the day



Industry Trends and Industry Trends and Market ForcesMarket Forces

Providing 3D Design/Manufacturing software & services since 1997Providing 3D Design/Manufacturing software & services since 1997

Some Industry Trends and Market Forces

Stock market and CDN$ took a tumble

Increased pressure on margins

Time between order and shipping is shrinking• Responsiveness to customer requests is increasingly

more important


Work coming in can be volatile• Companies may be downsizing • May be important to be able to fluctuate a work force

Many countries are trying to shift to a larger

knowledge based industry• R&D Tax incentives influence corporate decisions• Foreign-based R&D spending has grown faster than

U.S.-based R&D spending

• India offers 150% tax deduction for particular R&D incurred costs


Language issues are becoming easier• English capabilities are continually increasing in foreign

countries. India seams to be a leader in this area.

Technological advancements making

collaboration easier• Internet speed is increasing • Adoption of e-mail and other key communication is

increasing• Web sites for specific outsourcing functions are

improving (ie. http://www.mfg.com )

• Software is evolving to meet demands and fill holes



Company BehaviourCompany Behaviour


Major Justification Sources

http://www.cenews.com/article.asp?id=2254 - Offshore outsourcing: A problem or a solution? Tuesday, July 31, 2007

Top Justification

1. Reducing Cost

2. Workforce Capacity

3. Workforce Size Flexibility

4. Engineering Responsiveness

What is being outsourced?

Electronics and software is common

Less skilled tasks such as drafting

Mould Design

Tool and Die work

Other manufacturing related design work and modifications

“The trend is most pronounced in information technology, computing, and consumer electronics, where U.S., European, and Japanese firms have hired hundreds of thousands of programmers and engineers in China, India, and other developing nations.”

- A Shift In Engineering Offshoring, March 2009

Who is working globally?

Large multinational companies• Apple, Bombardier, General Electric

Medium companies seeking competitive

advantages

Small companies starting from the beginning• Common term used is Micro-Multinational



CountriesCountries


Where are companies commonly outsourcing

China

India

Philippines

Vietnam

South Africa

Mexico

Brazil

Many European Countries

A Closer Look at China…

Strengths Labour pool size Labour costs High quantity driven approach Generally good material and

energy prices

Interesting Notes According to economists, China

will become the world's wealthiest nation by the year 2012

There are over 200 different Chinese dialects

The United States has a $202 billion annual trade deficit with China

China generates over 92% of the overall Canadian trade deficit with BRIC countries

Weaknesses Containment of IP Language barrier can be an

issue

A Closer Look at India…

Strengths Good history in software development English language proficiency Government support and policies Strong tertiary education Process quality focus Skilled workforce Expertise in new technologies Reverse brain drain Existing long term relationships Indian domestic-market growth

http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=6312 http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=6312

A Closer Look at India…

Weaknesses Engineering graduates are not as skilled as North

American graduates Average wages have been on a steep rise

Interesting Notes ~same number of engineering graduates to United

States



Common FindingsCommon Findings


Common Findings

Benefits: Saves money Increases capacity Greater workforce flexibility Faster project turnaround Allows for more focus on strengths Higher quality of work Easier technical time coverage Closer to potential manufacturing


Common Findings

Challenges: Communication errors Controlling quality Maintaining control Keeping IP close Cultural differences Fear of unknown Exchanging documents Extra time spent on management Finding correct work to outsource Costs associated with possible travel

http://www.cenews.com/article.asp?id=2254 - Offshore outsourcing: A problem or a solution? Tuesday, July 31, 2007 http://memagazine.asme.org/articles/2009/March/Shift_Offshoring.cfm- A Shift in Engineering Offshoring, March 2009

Javelin Customer Testimonials

Perception vs. Reality

“those that experience offshore outsourcing

and those without experience have different

perceptions of its benefits and drawbacks”


Perception vs. Reality for Benefits

Reduced costs (66 % vs. 81 %)

Allows staff to focus on more strategic issues (22 % vs. 19 %)

Frees in-house staff from tasks outside of core-competencies

(17 % vs. 27 %)

More timely work (14 % vs. 51%)

Reduces capacity constraints (7 % vs. 24 %)

Higher quality work (2 % vs. 11%)

Gains access to expertise/software/equipment not found in

house (0% vs. 22%)


Perception vs. Reality for Drawbacks

Quality control (74% vs. 27%)

Poor communications (71% vs. 38%)

Cultural differences (53% vs. 24%)

Not guaranteed to save money (47% vs. 8%)

Possible delays (43% vs. 11%)

Insufficient client attention by vendor (38% vs. 11%)

Difficulty exchanging documents (32% vs. 8%)


Cost Reduction Perception vs. Reality




Case StudiesCase Studies

Javelin Technologies has been serving Canadian customers since 1997Javelin Technologies has been serving Canadian customers since 1997

The decision to purchase Enterprise PDM has become the biggest advantage we have. This product allows us to manage a global product development strategy and ultimately be more competitive “

“

Jason Cerny, Sr. Mechanical Designer

Trojan Technologies (link)

Company: Design and manufacturing of ultraviolet water treatment disinfection systems

Goals: Faster turn around time Enable global product development Automatic document control and issue

How: Deployed multi-site Enterprise PDM Javelin Services developed custom

document generation program Results:

Round-the-clock product development Resolved data management issues with

SolidWorks Enterprise PDM

Trojan Technologies Interview with Jason Cerny (May 19, 2009)

Which different locations are you working between? Bangalore India & Shanghai China (as well as home office of London, Ontario)

Are they outsourced companies or considered part of Trojan? Bangalore is an "outsourced company". We use TCS (Tata Consultancy Services). China office is part of

the Danaher Development Center (DDC).

What types of engineering or tasks are done in these locations? (ie. concept design,

electrical engineering, mechanical design, drafting, manufacturing, etc.) Bangalore is only doing remedial and redundant tasks, such as daily production work and EN's for

standard existing products, freeing up our engineering talent to work on the bigger problems. They excel at speed and efficiency, but not so much at conceptual design. China office is co-developing a new product "for China, designed by China, sold in China, manufactured in

China" using existing core technologies from Trojan. Both teams are fully integrated into Trojan London teams on a daily basis.

What are some of the challenges working between these offices? Communication & time differences. Also sending physical products back and forth is difficult as it takes a long time to clear customs etc.

What are some of the advantages that you are seeing having these multiple sights? time (work around the clock). The ability to "flex the team size to suit needs, without having to hire/layoff for peak demands.

Is Enterprise PDM helping coordinate the communication and collaboration? yes with replicated servers, all files are synced in off hours, twice daily...end of our day, end of theirs.

Magna Marque (link)

Company: Design and manufacturing electric bike

motors in partnership with BionXGoals:

Work effectively with multiple offices in Europe and Quebec

Keep data centralized to maintain control over revisions while enabling remote design teams to access data

How: Deployed multi-site Enterprise PDM Javelin Services setup system to company

specifications Results:

Sites are happy with local performance Projects can be monitored easily from

main office

Magna Marque Interview with Fabio Vernier (May 19, 2009)

Which different locations are you working between? Austria, Germany, Aurora (Ontario), Sherbrooke (Quebec) and China

Are they outsourced companies or considered part of Magna Marque or BionX? Most locations existed before partnership started. China is the newest one and is a single

employee of Magna Marque

What types of engineering or tasks are done in these locations? (ie. concept design, electrical engineering, mechanical design, drafting, manufacturing, etc.)

Austria, Germany, Aurora and Sherbrooke do complete design work on various projects that are managed centrally.

China does some product documentation and is mainly in charge of outsourced purchasing for components

What are some of the challenges working between these offices? The offices existed before the partnership started. We are currently in the process increasing the coordination between offices to reap more benefits.

The coordination between the people has been slower than anticipated.

What are some of the advantages that you are seeing having these multiple sights? Time zone has been an advantage for responsiveness Local European designers have helped keep a European flare on our leading European products.

We have a new one being launched in September that we are all very excited about.

Is Enterprise PDM helping coordinate the communication and collaboration? Enterprise PDM is a good tool and has been doing a great job coordinating the Sherbrooke and

Aurora office. We are currently in the process of taking more advantage of some of the more advanced functionality in the European offices.



Where Javelin Technologies is HelpingWhere Javelin Technologies is Helping

Providing 3D Design/Manufacturing software and services since 1997Providing 3D Design/Manufacturing software and services since 1997

Battling Global Communication with Enterprise PDM

1. Coordinating designers in different countries

2. Keeping track of versions and revisions with change

comments

3. Prioritizing work based on automated workflow

4. Searching for files and leveraging existing work

5. Teaching and enforcing company procedures

6. Automate information flow into ERP

7. Moving all processes electronic

Staying in control of Quality with Enterprise PDM

1. Controlling who can see or modify documents

2. Maintain full history for accountability

3. Making sure global offices are using the latest or

released files

4. Enforcing regulations by building them into a system

5. Prioritizing data and organizing change orders

6. Eliminating retyping

The fight against more outsourcing Challenges

Maintaining control Centralize work, Report on productivity

Keeping IP close Automated permission toggling based on task

Cultural differences Can’t help much hear

Fear of unknown Can help you with referrals of companies that have

experienced the “Unknown”

Exchanging documents Eliminate the need for e-mail and FTP transfer

The fight against more outsourcing Challenges

Extra time spent on management Searching and reporting on work quality and productivity can

perhaps help

Finding correct work to outsource Can share stories of what other customers have successfully

outsourced

Costs associated with possible travel Will give you a travel voucher if you can help us out with a

referral for a company that we may be able to help

Simple Process Control is Paramount

Importance of Data Replication

Enterprise PDM

Database Server

Enterprise PDM

Database Server

Replicated

Enterprise PDM

Archive Server

Replicated

Enterprise PDM

Archive Server

LANLAN

LANLAN LANLAN

Mai

n O

ffic

eM

ain

Off

ice

Rem

ote

Off

ice

1 R

emo

te O

ffic

e 1

Rem

ote

Off

ice

2R

emo

te O

ffic

e 2

WAN

WANW

ANW

AN

WANWAN

SW Enterprise

PDM Clients

SW Enterprise

PDM Clients

SolidWorks Enterprise PDM Offerings

PowerfulSearch Tools

Flexible SecurityFast Learning Curve

ReplicationFlexible Workflow

Scaleable Solution

Data Connectivity

Outsourcing Conclusions

Does save money, but less than usually anticipated

Best initial tasks to outsource should be Within countries expertise Where less value is added Tasks where speed and efficiency can be amplified

Perceived drawbacks can be overcome if anticipated and dealt with proactively

Screening and working with the correct vendors Assigning tasks where productivity can be easily monitored Implement a way to collaborate efficiently on projects Maintain control over IP by breaking up tasks between vendors

Working globally is not for every company the pros and cons should be evaluated thoroughly

“round the clock product development by effectively working globally ” - eric van essen

Documents

market forcesstock market

market forcesproviding

market forceswork

agendaindustry trends

based rd spending india

market forceslanguage

india seams

work forcemany countries