Transcript Executive Breakfast Presentation

“Round the clock product
development
byTitle
effectively
Example
working globally”
- Eric van Essen
Javelin Technologies has been
serving
Canadian customers since 1997
Example
Subtitle
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
Quotes of the day
"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
Industry
Trends
and
Example Title
Market Forces
Providing 3D Design/Manufacturing
Example Subtitle
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
Some Industry Trends and Market Forces
 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
Some Industry Trends and Market Forces
 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
Example Title
Company Behaviour
Providing 3D Design/Manufacturing
Example Subtitle
software & services since 1997
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
Example
Title
Countries
Providing 3D Design/Manufacturing
Example Subtitle
software & services since 1997
Where are companies commonly outsourcing
China
South Africa
India
Mexico
Philippines
Brazil
Vietnam
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
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
Example Title
Common Findings
Providing 3D Design/Manufacturing
Example Subtitle
software & services since 1997
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
http://www.cenews.com/article.asp?id=2254 -
Offshore outsourcing: A problem or a solution? Tuesday, July 31, 2007
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
A Shift in Engineering Offshoring, March 2009
http://memagazine.asme.org/articles/2009/March/Shift_Offshoring.cfm-
Javelin Customer Testimonials
Perception vs. Reality
“those that experience offshore outsourcing
and those without experience have different
perceptions of its benefits and drawbacks”
http://www.cenews.com/article.asp?id=2254 -
Offshore outsourcing: A problem or a solution? Tuesday, July 31, 2007
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%)
http://www.cenews.com/article.asp?id=2254 -
Offshore outsourcing: A problem or a solution? Tuesday, July 31, 2007
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%)
http://www.cenews.com/article.asp?id=2254 -
Offshore outsourcing: A problem or a solution? Tuesday, July 31, 2007
Cost Reduction Perception vs. Reality
http://www.cenews.com/article.asp?id=2254 -
Offshore outsourcing: A problem or a solution? Tuesday, July 31, 2007
Case
Studies
Example
Title
Javelin Technologies has been
serving
Canadian customers since 1997
Example
Subtitle
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
“
“
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 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 BionX
Goals:
 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 Helping
Example Title
Providing 3D Design/Manufacturing
Example Subtitle
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
Main Office
Importance of Data Replication
Enterprise PDM
SW Enterprise
Database Server
PDM Clients
LAN
Replicated
Enterprise PDM
Remote Office 2
Remote Office 1
WAN
LAN
LAN
Archive Server
SolidWorks Enterprise PDM Offerings
Fast Learning Curve
Flexible Security
Scaleable Solution
Powerful
Search Tools
Data Connectivity
Flexible Workflow
Replication
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