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“Round the clock product development by effectively working globally ” - Eric van Essen. Javelin Technologies has been serving Canadian customers since 1997. Agenda. Industry trends and market forces Company behaviour Country strengths and weaknesses Current findings and challenges

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

“Round the clock product development by effectively working globally”- Eric van Essen

Javelin Technologies has been serving Canadian customers since 1997

agenda
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 DarwinQuotes of the day

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

“Did You Know” Video

industry trends and market forces

Industry Trends and Market Forces

Providing 3D Design/Manufacturing software & services since 1997

some industry trends and market forces
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 forces6
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 forces7
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
company behaviour

Company Behaviour

Providing 3D Design/Manufacturing software & services since 1997

major justification sources
Major Justification Sources

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

top justification
Top Justification
  • Reducing Cost
  • Workforce Capacity
  • Workforce Size Flexibility
  • Engineering Responsiveness
what is being outsourced
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
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
countries

Countries

Providing 3D Design/Manufacturing software & services since 1997

where are companies commonly outsourcing
Where are companies commonly outsourcing
  • South Africa
  • Mexico
  • Brazil
  • Many European Countries
  • China
  • India
  • Philippines
  • Vietnam
a closer look at china
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
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 india17
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 findings

Common Findings

Providing 3D Design/Manufacturing software & services since 1997

common findings19
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 findings20
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
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
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
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
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

Case Studies

Javelin Technologies has been serving Canadian customers since 1997

trojan technologies link
Trojan Technologies (link)

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

  • 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
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
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
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

Where Javelin Technologies is Helping

Providing 3D Design/Manufacturing software and services since 1997

battling global communication with enterprise pdm
Battling Global Communication with Enterprise PDM
  • Coordinating designers in different countries
  • Keeping track of versions and revisions with change comments
  • Prioritizing work based on automated workflow
  • Searching for files and leveraging existing work
  • Teaching and enforcing company procedures
  • Automate information flow into ERP
  • Moving all processes electronic
staying in control of quality with enterprise pdm
Staying in control of Quality withEnterprise PDM
  • Controlling who can see or modify documents
  • Maintain full history for accountability
  • Making sure global offices are using the latest or released files
  • Enforcing regulations by building them into a system
  • Prioritizing data and organizing change orders
  • Eliminating retyping
the fight against more outsourcing challenges
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 challenges34
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
importance of data replication
Importance of Data Replication

SW Enterprise

PDM Clients

Enterprise PDM

Database Server

Main Office

LAN

Replicated

Enterprise PDM

Archive Server

WAN

WAN

WAN

Remote Office 2

Remote Office 1

LAN

LAN

solidworks enterprise pdm offerings
SolidWorks Enterprise PDM Offerings

Fast Learning Curve

Flexible Security

Scaleable Solution

Powerful

Search Tools

Data Connectivity

Flexible Workflow

Replication

outsourcing conclusions
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