, Research Paper
IMPLEMENTING A CAD SYSTEM TO REDUCE COSTSIntroductionThis report will analyze a proposal on how Woodbridge Foam could become more competitivethrough improvements in technology. This includes the saving of the companies money,shortening the design time for new products, decreasing quoting time and improving qualityoverall. By implementing a company wide CAD system, which would be networked together witheach customer and all plants, these improvements could be achieved. Research will includeinterviewing various employees as to how business is done and what influences the winning orloosing of a contract. Research will also include study of both customer and competitorssystems. Project Scope & Current EvaluationGoals Supported by CAD Initiative:In converting to a completely independent CAD system, there are a few aspects of operationwhich would be greatly improved. The first of the improvements would be the elimination ofpaper communication. The need to transfer large drawings using mylars would cease to be,thus helping provide a paper less environment. Another improvement as a result of CAD wouldbe that of achieving much tighter tolerances in building new products. Using a CAD system,part designs could be received in an electronic format such as a math model. These modelsare currently in use by customers such as GM, BMW and Mercedes. The effect of having mathmodels of all new products would enable a quicker turnaround in both quoting and productionof products. CAD Vendors & Hardware Suppliers: Upon observing the various systems used byseveral customers and suppliers, the major CAD vendors worth consideration have beenidentified. Manufacturers of high quality workstations which have been distinguish are:Hewlett Packard (HP) IBM Silicon Graphics (SGI) SUN Premium, fully functional CAD solutionsare: CATIA (Dassault / IBM) Computervision (Computervision / TSI) SDRC (SDRC / CADSolutions) Unigraphics (EDS) Current System Description Success Factors: In implementing anew, otherwise foreign system into an established habitual way of doing things, there areseveral success factors which must be examined. If these factors are carefully thoughtover, a favorable shift from old to new may be obtained. Some critical success factors areas follows: Vendor availability – Will the chosen system supplier be readily available fortechnical support? Product engineering acceptance – Will those who are set in their ways bewilling to abandon their habitual manner of operating? Training – Thorough training of allrelated employees must be completed before introduction of the new system. Data management- A new manner of recording all vital information must be established and proper proceduresdocumented. Customer interface – Will the chosen system be compatible with those used by ourcustomers and will needed data be easily convertible?Company Weaknesses:Currently, there are many aspects of our situation which present problems in coping withchanging times, which in turn affect the development of technology. Some weaknesses in thecompany which curtail our affiliation with the developmental progress of our customers andsuppliers are: We cannot easily accept electronic data; We must deal in manual drawings; Wehave many copies of similar drawings; We have multiple ECN levels; We have minimal CADknowledge; We must perform manual volume calculations. Threats to Business:If procedures are not taken in order to improve on the present company weaknesses, there arebona fide threats which could potentially harm future progress and business. Once theweakness in the company have been effaced, the following threat to our business may beeliminated or greatly reduced. The immediate threats are: Suppliers may assume the designrole; Competitors able to accept electronic input; No business with new products;Deterioration of communications; Lost productivity Process Description: As in most largecorporations, our process generally follows a standard order of operations. There areseveral departments or areas which have functions. Based on the function of a department orarea, a focus area is established and followed. Department/Area Function Focus AreaCustomerDesigns seatProduct EngineeringDesigns tool to manufacture seatSupplierBuilds tools and supplies components needed to manufacture and construct seatProduct Evaluation & CostingCosts seat based on foam and components used, manufacturing costs and assemblyPurchasingLocates seat component suppliers and oversees development and manufacture of componentsPlantManufactures and assembles seatQuality ControlEnsures that products meet our own and customer standardsSales / MarketingProcesses orders and manages overall customer relationshipsNew System RequirementsCAD System Requirements:The CAD system which is chosen must be capable of performing several specific tasks. Inorder for a new system to be of any use to the company and an aid to its advancement, itmust present an improvement in various areas. Some of the short term requirement of a new
CAD system are: Capable of 3D modeling including solids; May be used for simple or complexdrafting applications; Suited to quickly perform volume calculations; Apt to translatevarious forms of math data. Product Evaluation & Costing (P.E.C.) Requirements:With respect to all the various areas of the company, the role of the P.E.C. department isone of the most important in the area of profit. Once the costing department receives apart request from a customer, it is the responsibility of the costing department to ensurethat the life cycle of the part development is managed cost efficiently. When a currentproduct undergoes an engineering change, it is the responsibility of the Costing teammembers to note the changes. The product must be re-costed, accounting for variances infoam and components. If an increase in foam is noted, the change must be calculated. Usingmanual calculations, the new part volume is derived and the customer is charged accordingly. Because foam variances are obtained manually, customers may at times, not be fully chargedfor the added cost of foam. Using a CAD system to perform a volume calculation, the answerwould be definitive. The time needed to ship a print is approximately two days. If mathmodels of products were sent via E-mail, the information needed by the costing departmentwould be obtained two days earlier. Once complete, a costing package would in turn, arriveat a plant, also two days earlier from costing. In effect, a total of four days could beeliminated from the time needed to begin manufacturing a product. Solution Evaluation &Recommendation Benefits of CAD System In utilizing a CAD system, there are many areas ofoperation which are directly or indirectly affected. Because of the speed and accuracy withwhich a professional CAD system operates, time, and thus money, may be saved. Potential CADproject benefits include: Improved accuracy in quotes and design; Reduction in copying andcourier costs; Faster and more accurate calculations of complex volumes; Management ofexpanding drawing database; Improved electronic communication with customers and suppliers. Recommended Vendor/SupplierBased on thorough presentations made to executives of Woodbridge Foam by each candidate andthe penetration of these amongst key Woodbridge customers, it is recommended thatUnigraphics be implemented as the solution. The Unigraphics system is currently used b 40%of Woodbridge customers. This system is also capable of performing all of the previouslymentioned tasks such as 3D modeling, drafting, volume calculations and translating differentforms of math data. Justification of CAD & UnigraphicsCAD justification includes:Elimination of Mylars;Encouragement of a paper-less environment;Reduction in copy and reproduction costs;Reduction in courier costs;Faster and more accurate part volume calculations. Unigraphics justification includes:Used by key customers such as Chrysler and GM;Ability to convert data used by all customers;Extra commitment and availability for technical support;Extensive research into company prior to presentation. Work Station Cost:One time costs for one Workstation:Unigraphics Software License$30 000Hewlett Packard Workstation$45 000EDS Assistance (Assessment/Help)$ 5 000Training (UG Education)$10 000Consulting Assistance$ 7 500Printer and Plotter$30 000Hummingbird/Exceed PC Access Software$10 000One time total costs$137 500Annual Maintenance Costs: $3 750Cost Reductions:As previously mentioned, the implementation of a CAD system will reduce costs in severalareas. By eliminating the need for physical prints, the cost of reproducing and shippingprints will be eliminated. Some potential cost reductions in dollars are: Prints: 35,000Mylars:75,000Courier:5,500Travel:16,000Plants (saved travel):90,000*Productivity Improvement75,000*TOTAL SAVED:296,500Productivity Improvements:There are some improvements in productivity which do not present a monetary value. Theseimprovements however; will benefit the company and customer relations. These non-monetaryproductivity improvements are: Improved accuracy; Improved customer satisfaction; Supportfor higher tolerance of products; Improved on-line access to information; Improved internalcommunication between Woodbridge departments. Conclusion:As advancements in technology continue to be the norm, it is essential that those who wishto remain competitive, adhere to these advancements. In the case of the Woodbridge FoamCorporation, maintaining and equal standing with technological advancements will allow forimprovements in the company as a whole. Cost saving may be incurred in the areas of printand courier costs; while the need for paper transference is eliminated. Tolerances, quotingtime and an overall improvement in quality will in turn improve the satisfaction of ourcustomers. Because of these advancements in technology within the company, the saying “asatisfied customer is a return customer” may be brought to life.44