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April 2007 - Avoiding Hidden Costs of Engineering Collaboration

April 2, 2007

For manufacturers and product developers in all industry sectors, collaboration with external suppliers is undoubtedly having a beneficial effect on profits and time to market. The trend of outsourcing key functions is still growing, with an increasing number of product development processes being carried out externally. In pursuit of lower costs, greater efficiency and flexibility, the design, analysis, testing and manufacture of all or part of a product may in fact take place elsewhere.

However, although on the face of it this approach helps reduce overheads by stripping away internal costs and processes, collaboration can lead to expensive and inefficient workflow issues that ultimately reduce the financial benefits of outsourcing. Indeed, having evolved their business models to adopt a more collaborative approach, many manufacturers are discovering the hidden costs associated with outsourcing, which are eating into profits and restricting the full potential of using external suppliers.

Exchange rate

One of the major unresolved issues associated with collaboration is inefficient workflow between internal and external departments. The most obvious example of this from a product development point of view is the exchange of engineering data. With increasing numbers of individual components and parts being designed and manufactured off site, many industries are attempting hundreds of thousands of exchanges every year, a process that can (although needn't) take literally thousands of days to complete.

The problems associated with poor translations and badly designed models are well documented, but it's not just the technical issues of data exchange that can cause delays and add to costs. Often, it's the unnecessary and rather outdated communication chain between internal and external personnel that causes the most disruption to the flow of data. For a single transaction, the time, effort and delay seems perhaps insignificant, but for companies generating huge volumes of data, or others where development time is critical, this disruption can have a major net effect both on time to market and overall costs.

Chain reaction

On a recent visit to a manufacturing facility, the details of a very typical collaboration were recorded, where the company's supplier designs and manufactures a key component. The supplier needs digital solid models to ensure the seamless interface between the new component and the rest of the product. Once designed, a digital model of the component is sent back for approval. It seems straightforward enough, but a closer examination of the actual workflow reveals significant inefficiencies that are time-consuming and by no means unusual.

The accompanying diagram illustrates exactly where the delays occur, but in essence the workflow - which includes the involvement of the supplier, the buyer, a project manager, a designer, CAD support and a technical administrator - is beset by delays and disruptions caused by the kind of everyday communication issues that are familiar to anyone involved in the product development industry today. In this instance the collaboration, which should in theory be saving the manufacturer both time and expense is actually lengthening the product development process by over three days.

Cost in translation

Even if all the communication difficulties were overcome and every action was able to take place seamlessly, the technical issues of data translation would still cause the project delay, adding hours to what should be a straightforward file share. Like many such transactions between buyer and supplier, the real life example shown calls for the exchange of data between different CAD systems. This in turn requires the generation of a STEP file by CAD support, which ultimately creates translation issues for the supplier, causing further delay and a strain on what should be a strong collaborative relationship between the buyer and supplier.

Increasing numbers of manufacturers are identifying this workflow situation and its inherent obstacles within their own industries, and are seeking a way to overcome the problem. Clearly, there are two fundamental barriers to effective collaboration: the involvement of too many people in the design loop and the technical issue of data translation. One solution has been developed to tackle both these issues head on.

Net benefit

DEXcenter is a server-based system providing convenient and reliable data exchange via the internet. The system enables users to collaborate easily with internal and external partners by automating the file share process and translating data to the pre-defined specifications of each person in the design cycle. In the example given, DEXcenter would automatically process the request from the buyer to send the digital model to the supplier. DEXcenter identifies the supplier's preferred file format, performs any necessary file translation, validates the resulting model, transmits it to the supplier and sends a confirmation email to announce its arrival.

A centralized, accessible data sharing solution such as DEXcenter significantly reduces the time it takes to exchange engineering data and digital models. In the example shown, the total time elapsed from file request to retrieval is only 43 minutes. The number of people involved in the transaction is reduced from six to two, immediately improving efficiency and freeing up four expensive professionals for more important, revenue-generating tasks elsewhere in the business.

Share value

Crucially, the model received by the supplier from DEXcenter is accurate and ready to use without time-consuming repair. This reduces the overall product development time, enabling the supplier to shave time off their schedule and ultimately quote more competitively. DEXcenter also makes better use of computing resources, reducing the number of workstations required for data translation and minimizing the need for translator licenses.

Collaboration is a proven model for helping to maintain competitive edge, but it's important not to take the perceived cost efficiency of this approach at face value. As the rate of data exchange increases, manufacturers are often tempted to target resources at additional personnel to ease workflow and carry out data repair. But investment in this area can eat into the financial advantages gained by outsourcing. Solutions such as DEXcenter eliminate the need for extra personnel investment, reduce data repair time and enable businesses to achieve the full potential of collaboration.

About ITI TranscenData

ITI TranscenData is the product data interoperability business within International TechneGroup Incorporated (ITI). ITI TranscenData provides interoperability solutions that enable companies to effectively exchange, reuse, integrate and share engineering product data among diverse software applications used throughout a manufacturing enterprise and its supply chain. ITI TranscenData solutions are aimed directly at reducing and eliminating non-value-added time and costs associated with reusing product data. ITI TranscenData solutions are distributed worldwide through a combination of direct sales, resellers, and strategic vendor/OEM partners. Included among ITI TranscenData’s customers are ABB, Airbus, BAE Systems, Boeing, EADS, Ford, Honeywell, Lego, Lockheed Martin, MAHLE Powertrain, Pratt & Whitney, Raytheon, Renault, Rockwell Collins, Rolls Royce, Samsung Electronics, Siemens Automotive, Snecma, Spirit AeroSystems, Thales, ThyssenKrupp, US Air Force, US Army, Xerox and others.

www.transcendata.com

For further information, please use the ITI TranscenData Contact Page or the below information:

ITI TranscenData Americas and Corporate

Tel: +1-888-783-9199

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