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Product Development and the Supply ChainConference Presentations

Monday - January 29

Successfully Leveraging Technology & Shifting Business Models in a Competitive Landscape

Dr. Corey Billington, Executive Director of Supply Chain
Organization, Hewlett-Packard

A leading pioneer in supply chain management, Dr. Billington depicts Hewlett-Packard’s (HP) transformation from a product oriented to a customer oriented business model. The customer focused business model paves the way for HP to increase market share along with its breadth and width of product offerings. By leveraging Internet use to support its increasingly complex value delivery network, HP has optimized investment returns and maximized shareholder value. Learn more about how to leverage the Internet in supply chain management for competitive advantage.

Extending DELL’s Direct Model to
Product Development via Supplier Collaboration Tools

Michael Pizinger, Director of Engineering Operations,
DELL Computer

Mr. Pizinger provides an overview of the deployment of supplier-collaborative tools in DELL’s world class product development organizations. Learn how Dell will integrate these systems to interact with vendors on a real-time basis as well as provide programmatic feeds to their regional MRP systems. The success of Dell’s Direct Model is not only limited to its interactions with external customers. Learn about how Dell’s excellence in supply chain management is enhanced by use of the Internet and is a natural extension of its business strategy.

The Advantages of Creating
a Lean Supply Base

R. David Nelson, VP of Worldwide Supply Chain Management,
Deere & Co.

For more than a decade, companies have been implementing lean manufacturing practices for competitive advantage. Today, 70 - 80 percent of product costs come from outside due to company focus on asset management and core competencies. Hear how investing resources in and extending lean knowledge and expertise to the supply base can provide huge paybacks. Once your suppliers are lean, there is greater value in integrating them sooner into product development and other business processes. This presentation discusses how the combined efforts of effective supplier development, integration and training can create a lean supply chain yielding broad improvements in cost, delivery, downtime and quality.

Value Chain Strategy
in the Automotive Industry

Dr. Roger Vardan, Manager, Strategy Development Group,
GM Powertrain

We are in an era in which technologies and supply chains are evolving at different rates. Companies must reinvent both their products and their supply-chains to remain competitive, and they must achieve this simultaneously. Toward this end, large, established, vertically integrated industries, like the automotive industry, are quickly moving towards a more horizontal supply-chain model. The real challenge today is to focus the enterprise on the most important, value-adding competencies and the highest clockspeed technologies. Additionally, the ability to create a value-optimized web of supply-chain partners will become an increasingly critical success factor.

Dr. Roger Vardan of GM Powertrain will present a case history of the Strategic Value Chain framework and its application at GM Powertrain. GM Powertrain, a global supplier of engines and transmissions for the automotive and marine industries, undertook a strategic reevaluation of its own value chain. Working in partnership with Prof. Charlie Fine of MIT Sloan School of Management and PRTM Consulting, GMPT is employing a new strategic analysis framework to dissect its product lines, technologies and supply-chain to identify the most attractive value domains. The resulting value-chain map is enabling GM Powertrain to chart a series of strategic moves to optimize its position within the overall automotive value chain.

Dinner Breakout
B2B Collaborative Commerce -
Value Moves Beyond Price


B2B marketplaces are growing rapidly with more and more companies turning to the Internet to conduct business online. As this trend continues, how do we make these online B2B marketplaces more dynamic and productive? We look to successful offline business models where meeting customer needs is paramount.

The myopic view of today's e-businesses misses the biggest opportunity presented by marketplaces: Collaborative Commerce. Collaborative Commerce supports collaboration among designers, suppliers, testers, manufacturers and distributors to deliver improved products more efficiently. By broadening the scope of marketplace activity to embrace high-value interaction beyond procurement, companies encourage supplier participation, enhance business relationships and generate real revenue from B2B marketplaces.

Key Learnings:

  • Learn how value must move beyond price for a B2B
    marketplace to succeed
  • Understand how B2B marketplaces provide the opportunity for a cutting-edge business model for the Internet: Collaborative Commerce.
  • The benefits of Collaborative Commerce to designers,
    suppliers, testers, manufacturers, distributors and customers.

Breakout Panelists:
John Bruggeman, VP of Marketing, Alventive
Henry Jurgens, Manager, Engineering Systems, Celestica
Rick Duchin, President and CEO, Sporteum

Dinner Breakout
Open B2B Connectivity
for Supplier Collaboration

Carsten A. Hochmuth, Ph. D.;Director,
Technical Marketing, Windchill, PTC

About 80 –90% of a product’s lifetime cost is committed in the earliest stages of the product development cycle. Decisions, such as which component to use in a design, or which manufacturer or process to use for a part, have an impact on the entire life cycle of a product. These decisions also affect the speed at which products can be brought to market.

Unfortunately, most design chain partners today are limited to a product development collaboration model that is based upon restrictive technologies such as email, fax, etc. While some companies have gone to the extent of implementing electronic trading arrangements with their key partners, without common processes and language, connecting to each design chain partner for e-business is a time-consuming, expensive, custom undertaking.

Standardization of Business-to-Business (B2B) interfaces provides a common language, which is a critical enabler for e-business. Embracing open standards, such as RosettaNet, acknowledges each partner’s investment in and reliance upon existing enterprise systems, while facilitating secure connectivity of such systems over the Internet.

In the PTC sponsored breakout session, one of the company’s product definition experts will engage participants in an interactive question and answer session that will enable them to gain a better understanding of how to:

  • Reduce IT costs by eliminating the need to maintain custom interfaces between specific design chain partners
  • Accelerate time-to-market by providing more consistent, efficient identification/marketing of the right parts via web-based catalogs.
  • Improve corporate flexibility by enabling the rapid engagement/termination of partnerships with buyers/suppliers
  • Improve product quality by enabling a company to increase the number of suppliers/products that can be evaluated
  • Improve profit margins by enabling a company to increase the number of suppliers that can be evaluated so they can identify a better price
  • Improve revenues by enabling suppliers to reach a significantly greater market for their products by implementing an open standard solution

Dinner Breakout
Maximizing Your Investment in Product Design Data: Optimizing the Extended Enterprise Through Internet-Based Collaboration

J. Paul Grayson, President and CEO, Alibre

As outsourcing gains momentum the need for collaboration increases. Dispersed design and manufacturing functions can introduce threats to quality and efficiency, and the endless cycle of creating, printing, revising and routing printed drawings can handcuff design teams and remote partners.

Shipping paper drawings, or using traditional 3D modeling systems or visualization tools cannot match the efficiency and accuracy of true real-time collaboration. Sharing design data in a practical, useable manner requires a tool with a different range of functionality than the sophisticated CAD and PDM systems that initially helped create and manage the data.

The convergence of visualization software, 3D design tools, and the Internet is enabling the creation of true virtual teams across the extended enterprise, efficiently integrating supply chain partners to improve quality, collapse development cycle times and speed time to market.

  • Explore techniques for maximizing your investment in existing product design data
  • Learn how enterprises are leveraging the Internet to compress product development cycles
  • Get a glimpse of practical approaches to applying Web-centric collaborative design technologies

Dinner Breakout
The Next Competitive Battlefield:
Supplier Relationship Management

George Tierney, Vice President,
Global Sales and Business Development. Eventra

As more and more companies move toward "virtual corporations," where manufacturing is performed completely by suppliers, it is no longer one manufacturer pitting itself against another. Instead, it is the superiority of an entire supply chain against another that determines who is the winner. Supplier Relationship Management systems (SRM) are viewed by industry analysts as the next competitive battlefield for Global 2000 companies. Essentially an inter-enterprise business application, SRM systems help companies collaborate and automate specific planning, scheduling, shipment and payment processes with their direct material suppliers.

Through an interactive Q&A discussion, this breakout will explore:

  • The business drivers that are pushing SRM to the forefront
  • The disconnections and inefficiencies that currently exist within inbound supply chains
  • Views and "wish list" thinking on what comprises an SRM solution
  • What business impact and potential ROI can be realized from implementing SRM

Eventra representatives will share with the audience the benefits and early ROI results that its client companies and their suppliers are experiencing.

 Tuesday - January 30

Collaboration Means You —
Not the Other Guy!

Terry Sueltman, VP of Global Supply Chain Management, Honeywell Electronic Materials

Rapid cost effective development and launch of new products and services requires a systematic process for the inclusion of cross-functional stakeholders. The supply chain, manufacturing, and development engineering organizations must work closely together for success. Integrating suppliers is also an important success factor. Terry will share his experience in bringing suppliers on-site, developing value-added relationships, and provide the framework for a collaborative cross-functional development process used at Honeywell. Measures of success will be discussed, as well as common obstacles with approaches to resolving them.

Attendees will learn how-to involve the supply chain in new product developments; how-to develop valued-added supplier relationships including establishing resident suppliers; and the elements of a successful process for managing cross-functional developments

From Supply Chains to Value Nets -

Joseph Martha, Vice President, Mercer Management Consulting

How do you change a supply chain that relies on rigid, sequential and tactical processes to meet the customer demands of today’s e-world?

In this session, Joseph Martha, co-author of recently published "Value Nets", will describe a new form of business design that uses customer choices to set in motion an agile, fast, and digital network that delivers customer satisfaction and breakthrough financial results. He will address:

  • How to deliver customized products preferably bundled with key-value services such as guaranteed delivery or technical support
  • How to uncover hidden strategic value in the
    supply chain
  • The five elements of value net creation
  • How to optimize supply chain efficiencies
  • How to identify true market differentiation and achieve superior profitability and customer satisfaction

Following the presentation, attendees will be invited to join breakout groups where they will be able to design and discuss opportunities to develop Value Nets in their respective companies. During this session, the attendees will be able to learn from others how they are meeting these more stringent operational and customer challenges.

Quantifiable Product Cost Reduction With Critical Suppliers

Collin Reeves, Supplier Technical Consultant, Raytheon

Historically, companies have focused a great deal of effort on internal cost reduction efforts while largely ignoring the largest component of cost passed on to their customers – the cost of supplied material. This paper discusses the "Raytheon Six Sigma with Suppliers" Process, a demonstrated technique that leverages key supplier technical expertise with ten proven cost reduction tools to significantly reduce development and production costs. Its extremely positive results emphasize the criticality of partnering with suppliers to significantly impact the bottom line. Methodologies for selecting supplier candidates and conducting workshops are augmented with a case study.

  • An understanding of when to apply various cost reduction tools throughout the product life cycle.
  • A comprehensive process for reviewing cost and performance data to identify supplier cost drivers.
  • Exposure to a technique used to identify, rank, and track cost reduction ideas.

Learnings from Global Implementation of the Supply Chain: Cost Measurements

Birgitta Häard, Supply Management Business
Controller, Ericsson Radio Systems AB

  • Defining Supply Chain Cost within the organization
  • Initiating and implementing measurement on a global basis
  • Utilizing the supply chain cost for competitive advantage
  • Evaluating operational effectiveness of the supply chain using cost as a key indicator
  • Expectations regarding the results of implementation as well as efficiency within the supply chain

Supplier Integration into New Product Development: The Impact of B2B

Robert Handfield, Bank of America University Distinguished Professor of Supply Chain Management, North Carolina State University and Michael E. Slomke, C.P.M., Director, Supply Chain, Motorola SPS

Organizations have been quick to realize that involving suppliers in new product / process / service development efforts has the potential for significant results. Numerous studies have highlighted the fact that supplier participation in product development projects can help reduce cost, reduce concept to customer development time, improve quality, and provide innovative technologies that can help capture market share. While such results typically go undisputed, there is mounting evidence that not all efforts are successful. Based on a set of case studies and follow-up survey of worldwide companies, the presenter will share a formal process map for success that includes assessment of supplier capabilities, level of complexity of the technology, and degree of risk. Some of the critical success factors discussed include product/process knowledge of suppliers, design expertise, and the alignment of technology roadmaps with the focal organization. To illustrate implementation strategies and methodologies, Professor Handfield will be joined by Michael Slomke of Motorola. Mr. Slomke will discuss Motorola’s challenges and future strategies of supplier integration into new product development. The talk will also highlight some of the key budding technologies emerging in the B2B space that will facilitate knowledge sharing and rapid development of these integration processes.

Supplier Partnerships Promote
Quality at Saturn

Dan McDonald, Vice President of
Purchasing, Product Control and Logistics,
Saturn Corporation

In order to maximize its investment in suppliers, Saturn developed the "CAST" system (Consultation, Alternative Analysis, Selection of a new supplier and Transition to a new supplier) to address quality and production issues with suppliers. Saturn implements CAST with a supplier when a formal improvement plan is necessary. This plan includes meetings amongst top supplier leaders and Saturn purchasing leaders to develop and agree upon an aggressive improvement solution plan citing specific time parameters and clear expectations. Learn how Saturn successfully addresses quality and maintains partnership relationships with its suppliers.

Supporting Organizations

Alventive MatrixOne Eventra
PTC - Shaping Innovation Centric Software iMAN
Alibre Interested in sponsorship and exhibit opportunities? Click here.

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