Manufacturing Goes Digital

May 2006


















A CIMdata White Paper

Manufacturing Goes Digital

May 2006
Prepared by
CIMdata, Inc.

http://www.CIMdata.com
CIMdata, Inc.
3909 Research Park Drive, Ann Arbor, Michigan 48108
USA Tel: +1 (734) 6689922 Fax: +1 (734) 6681957
Europe Tel: +31 (0)23 568-9385. Fax: +31 (0)23 568-9111
CIMdata

is a Registered Trademark of CIMdata, Inc.

Copyright 2006 by CIMdata, Inc. All rights reserved.
Manufacturing Goes Digital A CIMdata White Paper Page 1
Manufacturing Goes Digital

1. Introduction
Manufacturers are going digital. By implement-
ing Digital Manufacturing software-based
solutions, producers around the world are
placing themselves in a stronger position to meet
the forces encountered in an increasingly
demanding and challenging global manufactur-
ing environment.
The relentless pressures to continuously improve
productivity, lower costs, compress delivery
times, and enhance quality of products must be
met, while at the same time, internal business
objectives must be achieved. Enlightened firms
are incorporating more efficient processes,
digital manufacturing software-based solutions,
and other technologies to create an efficient and
lean production operation and prosper on the
world stage.
Digital manufacturing solutions are based on an
integrated set of software capabilities that utilize
a digital product model and work with product
definition data to support part and assembly
planning, process design, visualization, simula-
tion and other analyses to digitally plan, validate
and optimize a manufacturing process. Through
implementation, manufacturers are addressing
their business needs by:
Continuously improving the efficiency
of manufacturing processes to ensure
production flexibility, high perform-
ance and superior quality
Commonizing and re-using parts,
assemblies, equipment, and processes
Assurance that compliance with
appropriate industry and government
standards is being met
Managing and synchronizing product
and process information from idea
conception to the end of product life
The benefits of Digital Manufacturing have been
clearly demonstrated in many successful imple-
mentations around the world and include:
Shortened development cycles
Reduced production costs and
improved quality
Support of lean manufacturing and
agility
Enabled DFx initiatives
Support of product knowledge
dissemination
This report provides a perspective on Digital
Manufacturing; the pressures that motivate its
use, an introduction to Digital Manufacturing
and its role, and an overview of the benefits
companies have experienced from its use.
2. Pressures on
Manufacturers
Manufacturers are faced with increasingly
intense internal and external pressures from
shareholders and the market. Shareholders
demand steadily-growing revenues and
profitability on a quarter-by-quarter basis while
the market expects product innovation and
aesthetic appeal; greater product functionality,
performance, and usability; and a longer, useful
life for products. Producers are caught in this
confluence of forces that places an onerous
squeeze on executives, managers, planners, and
workers to lower costs, shorten lead times, and
improve quality in order to effectively compete
in a worldwide economy.
Globalization has increased the stress placed on
producers. Outsourcing, insourcing, and
offshoring have become ubiquitous, and
manufacturers in all areas of the world now
compete aggressively for end user buyers or to
be an integral component in a product supply
chain. Those competing in global manufacturing
are continually faced with a series of challenges
such as:
Limited resources of people, time and
funding
Production risk and a lack of
confidence in being able to meet
program objectives in a timely manner
An excessive amount of time spent
locating relevant information and
ineffective oral, written and electronic
communications within an operation,
an enterprise and a supply chain
Page 2 Manufacturing Goes Digital A CIMdata White Paper
Engineers and production personnel
having difficulty visualizing and
optimizing a future production process
Discovery of design or manufacturing
problems late in the cycle when the
cost and time impact is the greatest and
spending too much time and money in
re-design and re-working a production
process to achieve program and
business objectives
Global supply chains are increasingly critical to a
firms well-being. They typically include
multiple firms from multiple geographies
throughout the world. As one example, Dell
Computer has six assembly plants: Ireland,
China, Brazil, Malaysia, and Austin, TX and
Nashville, TN in the U.S. Their Intel
microprocessors are built in the Philippines,
Costa Rica, Malaysia, and China and their
computer memory comes from factories in
Korea, Taiwan, Germany, and Japan. The Dell
supply chains exemplify the inherent global
composition, interdependence of one supplier
upon another, competition among suppliers, and
the intense pressure to meet customer
requirements.
Manufacturing is a worldwide race favoring
those firms that are cost-efficient, agile, lean,
structured, process-oriented, technology-
oriented, and have created a culture that
incessantly strives for excellence. Competing in
a global workplace demands continuous
improvements in processes, operations, people,
and technology. Manufacturing productivity
must be ever increased and producers must
constantly look for ways to meet the faster,
better, cheaper mantra of todays economy. To
meet these pressures and remain competitive,
leading manufacturers are going digital. (Figure
1) By going digital, producers:
Can synchronize data and minimize data
re-entry and translation through integrated
application solutions
Share and collaborate on intellectual
property within a supply chain
Visualize and digitally simulate operations
Optimize cells, assembly lines, plants,
enterprises, and supply chains
Quickly accommodate and adjust for
changes in demand and product
Effectively manage product and
manufacturing information
3. What is Digital
Manufacturing?
Digital Manufacturing can be defined as a
proven software-based solution that supports
effective collaborative manufacturing process
planning between engineering disciplines, such
as design and manufacturing. This requires
access to the full digital product definition,
including tooling and manufacturing process
data. Integrated tool suites working off this
product definition are used to support visualiza-
tion, simulation, and other analyses necessary to
optimize the product and manufacturing process
design. Requirements from across different
engineering disciplines are also supported
through this process.


Figure 1. Manufacturers are Going Digital
Internal Pressures
Product Complexity
Delivery Lead-Times
Cost Constraints
Quality Imperatives
Demand for Innovation
Profitability & Growth
Market Share
External Pressures
Globalization
Supply Chains
New Competition
Customer Requirements
Government Regulation
Result
More Lean
More Nimble
More Responsive
More Competitive
More Successful
Manufacturers Go Digital
Utilize new Digital Manufacturing
technologies to enable
process improvement and
business transformation
Internal Pressures
Product Complexity
Delivery Lead-Times
Cost Constraints
Quality Imperatives
Demand for Innovation
Profitability & Growth
Market Share
External Pressures
Globalization
Supply Chains
New Competition
Customer Requirements
Government Regulation
Result
More Lean
More Nimble
More Responsive
More Competitive
More Successful
Manufacturers Go Digital
Utilize new Digital Manufacturing
technologies to enable
process improvement and
business transformation
Manufacturing Goes Digital A CIMdata White Paper Page 3
As shown in Figure 2, the six major Digital
Manufacturing functions typically include:
Data synchronization from design
through manufacturing in an enterprise
information management environment,
including linkage and data integration
among CAD, CAM, tool design, ERP,
MES, and other software applications.
A systematic, structured, visual, and
analytical approach to part and
assembly computer-aided process
planning to obtain an optimal process
solution. Establishing and cataloging
manufacturing constraints, costs,
throughputs, and best practices is also
performed.
Detailed line, cell, station, and task
design for part manufacturing and
assembly process management,
including plant design and creation of
mechanical assembly-line layouts.
Discrete event simulation of
manufacturing operations and material
flows to visualize, validate, and
optimize processes, including
production line balancing,
measurement and verification of line
performance. Simulation and
assessment of worker movement,
ergonomics, safety and performance is
provided to assure compliance with
government and industry standards.
Maintaining and managing information
on manufacturing resources, including
software to support commonization
and re-use of parts, assemblies,
equipment, and processes. The
software also provides manufacturing
documentation, shop floor instruction,
improved visualization, effective
communication, and collaboration
among workers.
Programming of robots, welding, painting,
coordinate measuring machines, and other
factory equipment, as well as creation,
testing, optimizing, and managing printed
circuit boards and product assemblies.
Quality planning, product inspection,
control of dimensional variation, and
continual assessment of production quality
is also provided.
4. The Role of Digital
Manufacturing
Digital Manufacturing software-based solutions
are utilized by manufacturing engineers to
determine how to build products, synchronize
engineering and manufacturing operations, and
unify the production environment. (Figure 3)
An optimized production environment is
established by more automated and effective
process planning, plant design, and workflow
simulation; the cost of inventory, direct labor,
manufacturing engineering, plant and equipment
is reduced.
FACTORY
PROGRAMMING
& QA
RESOURCE &
INFORMATION
MANAGEMENT
SIMULATION OF
OPERATIONS &
MATERIAL FLOW
DESIGN OF
CELLS, STATIONS,
LINES & PLANTS
PROCESS
PLANNING
DATA
SYNCHRONIZATION
DIGITAL
MANUFACTURING
FACTORY
PROGRAMMING
& QA
RESOURCE &
INFORMATION
MANAGEMENT
SIMULATION OF
OPERATIONS &
MATERIAL FLOW
DESIGN OF
CELLS, STATIONS,
LINES & PLANTS
PROCESS
PLANNING
DATA
SYNCHRONIZATION
DIGITAL
MANUFACTURING

Figure 2. Six Major Functions in Digital Manufacturing

Characteristic

What to Build

How to Build
When, Where and How Many
to Build
Organization
Responsible
Design
Engineering
Manufacturing
Engineering
Manufacturing
Operations
Primary Software
Support Tools
Employed

Computer-Aided
Design (CAD)

Digital
Manufacturing
Enterprise Resource
Management
(ERP)/Manufacturing
Execution Systems (MES)
Figure 3. Determining How to Build
Page 4 Manufacturing Goes Digital A CIMdata White Paper
A common digital model is employed in Digital
Manufacturing to bring together information on
products, processes, plants, tools, and resources
to enhance operational efficiency, establish best
practices, and provide a consistent manufactur-
ing solution. Utilization of a digital model
provides a basis for collaboration,
synchronization of processes, and highly
efficient workflows.
Digital Manufacturing is an integral component
of a PLM (Product Lifecycle Management) solu-
tion. Maximum integration of product design,
manufacturing engineering, and production
operations is achieved and effective use of
information is established up and down a supply
chain. cPDm (Collaborative Product Data
Management) capabilities for collaboration,
change management, document management,
workflow management, process management,
resource management, and version and product
variation management can be implemented and
integrated with Digital Manufacturing to create a
highly effective enterprise-wide product lifecycle
solution. Digital Manufacturings domain of sup-
port within the overall digital product lifecycle is
illustrated in Figure 4.
5. Management Drivers
As manufacturers go digital, four management
drivers often executed in progressive
manufacturing firms are:
Improving production efficiency
Commonizing components and processes
Assuring compliance
Implementing enterprise data
management.
Digital Manufacturing plays a critical role in
execution of each of these important manage-
ment initiatives. This role is discussed below for
each of the four themes to exemplify the impor-
tance of aspects of this technology to each of the
themes and to the continued viability of
manufacturing firms worldwide.
Improving Production Efficiency
Improving production efficiency is a continuous
process in which the design of the product and
the design of the process continually evolve as
design and manufacturing processes are opti-
mized within a Digital Manufacturing environ-
ment. This interactive process is illustrated in
Figure 5.
The following are key aspects of Digital
Manufacturing that primarily contribute to
improving production efficiency.
Computer-Aided Process PlanningA major
British automaker utilizes computer-aided
process planning (CAPP), an element of Digital
Manufacturing, to define detailed manufacturing,
assembly and test process sequences and instruc-
tions for load and capacity planning. It is also
used to collect as-made and as-built technical
data for re-use of best practice process planning
knowledge, and for delivery of manufacturing,
assembly, and test instructions to the shop floor.

Figure 4. Digital Manufacturing as a Component of PLM
Product
Planning
Conceptual
Design
Design
Engineering Manufacturing
Engineering
Simulation
& Validation
Manufacturing
Operations
Test &
Quality Sales &
Distribution
After-Sales
Service
Disposal &
Recycling
Full Product Lifecycle
Domain of
Digital Manufacturing
Product
Planning
Conceptual
Design
Design
Engineering Manufacturing
Engineering
Simulation
& Validation
Manufacturing
Operations
Test &
Quality Sales &
Distribution
After-Sales
Service
Disposal &
Recycling
Full Product Lifecycle
Domain of
Digital Manufacturing
Domain of
Digital Manufacturing
Manufacturing Goes Digital A CIMdata White Paper Page 5
The Systems Implementation Manager for CAPP
at the firm asserted, The strategic benefits en-
abled by CAPP within a Digital Manufacturing
environment have included a better response to
market opportunities by reducing the time-to-
market, establishing common business and infor-
mation systems, permitting knowledge and
process re-use, and improving cost
competitiveness through product cost manage-
ment and organizational efficiency.
Evaluating AlternativesWith Digital
Manufacturing, the what ifs of production are
considered quickly and completely to obtain an
optimal process. Through virtual manufacturing,
multiple plant and process designs are evaluated
and validated before mockups or prototypes are
produced and documentation is released to
manufacturing.
Discrete Event SimulationDiscrete event
simulation of material flow, part manufacture,
and assembly operations is performed within
Digital Manufacturing to permit visualization of
processes, verification of cell and plant design,
obtaining time and cost measurements for all
functions, and operation optimization. A
manufacturing engineer can see a process in
advance and identify potential problems before
they occur.
Plant DesignDigital Manufacturing enables
manufacturing engineers to design plants more
efficiently, improve factory layout, and avoid
collisions and assembly problems. A plant
design is optimized and maximum equipment
utilization is established as a function of the
resources employed.
Quality ManagementAn interactive environ-
ment is provided for controlling dimensional
variation, improving product quality, and
communicating quality data throughout an enter-
prise. Fit, finish, and functionality can be assured
while still in a digital environment and before the
expense of creating hard tooling is incurred.
Commonizing Components and
Processes
Digital Manufacturing provides for commoniza-
tion, standardization, and re-use of components
by enabling parts, assemblies, and equipment to
be re-used or developed in multiple contexts.
Processes are commonized by establishing best
practices, creating templates, and re-using the
processes as appropriate.
The following aspects of Digital Manufacturing
help companies substantially improve their
ability to commonize both components and
processes.
Information illusivenessLocating the right
data when needed can be a major issue as a
massive amount of data is generated in produc-
tion operations. Manufacturing engineers
typically spend 30-40% of their time searching
for the up-to-date information needed. Effective
information storage and retrieval as provided in
Digital Manufacturing is one of the keys to
achieving enhanced productivity and a lean
production environment.
Best PracticesWith Digital Manufacturing,
best practice processes are graphically created in
automated process planning. They are visualized,
simulated, verified, modified, optimized, and
then captured electronically for subsequent use
in the same or similar circumstances. Use of best
practices in manufacturing minimizes production
risk, reduces lead time in planning and produc-
tion, lowers product cost, provides consistency
of production, minimizes product variation,
improves overall product quality, and further
promotes a lean operation.
Resource ManagementDigital manufacturing
provides a single source for accessing
manufacturing resource information so that
proper resources are readily identified and avail-
able for re-use as components or in a process.
A Guiding PrincipleA Director of
Manufacturing Planning at a Tier One U.S.
automobile supplier stated, A guiding principle
in our firm is to commonize, standardize, re-use,
and analyze within our operations. This supplier
uses a single integrated, global system for all

Figure 5. Improving Production Efficiency
Product design
Process planning
Plant design
Cell design
Material flow
Process simulation
Process optimization
Product design
Process planning
Plant design
Cell design
Material flow
Process simulation
Process optimization
Page 6 Manufacturing Goes Digital A CIMdata White Paper
product lines and commonizes the approach for
use of the system.
Assuring Compliance
Digital Manufacturing helps manufacturers
assure compliance with government, industry,
and company standards at minimum cost.
Product and manufacturing designs are tested to
verify compliance with standards. Ways in which
Digital Manufacturing contributes to compliance
assurance are discussed in the following para-
graphs.
Genealogy and TraceabilityDigital manufac-
turing software can be integrated with software
that provides assembly and product genealogy
and traceability. This permits a user to establish
and verify the source, characteristics, and test
results for all materials, components, and
manufacturing and quality processes utilized in
producing an end product.
Mitigating RiskUse of Digital Manufacturing
mitigates risk by simulating the impact of deci-
sions prior to committing physical resources for
production. Through automated process plan-
ning, simulation, and visualization, Digital
Manufacturing ensures that production flexibil-
ity, performance, and quality objectives are met,
that the designed processes will achieve the
desired business result, and that compliance is
achieved.
ErgonomicsErgonomic considerations are
addressed within a Digital Manufacturing solu-
tion as these factors often require compliance
with government standards. Worker conditions
are simulated to assure that factory worker
visibility, lifting, and movement can be
accomplished and do not cause undue physical
strain.
Tolerance AnalysisA major U.S. electronics
firm ensures that compliance with standards is
being met by utilizing tolerance analysis to
measure the degree of dimensional variation and
the source of variation. A Lead Dimensional
Engineer at the company commented, Through
the Digital Manufacturing program, we have
been able to eliminate manufacturing bottle-
necks, reduce tooling and metrology costs, and
establish looser tolerances on most parts.
Implementing Enterprise
Information Management
Experience has shown that implementing Digital
Manufacturing in combination with other
applications in an enterprise information
management environment and as part of a PLM
initiative is more effective than employing
Digital Manufacturing as a point solution. When
a proven knowledge management foundation is
brought together with Digital Manufacturing, it
is a powerful and unique combination.
Integration with Information Management
All applications throughout a PLM environment,
including conceptual design, product design, tool
design, engineering analysis, digital manufactur-
ing, numerical control, quality assurance, and
collaborative product data management are inte-
grated. Tools are available for workflow
management, change management, integrated
visualization options, configuration manage-
ment, collaboration, and product data manage-
ment. Management and synchronization of
product and process information throughout the
product life cycle from idea conception to the
end of life is accomplished. (Figure 6)
Legacy ManufacturingContinued support of
legacy manufacturing functions is often desired
or required. With open architecture information
management systems, integration of these
functions within a new or updated manufacturing
process is accomplished.


Figure 6. The Scope of PLM
Design Plan Service Produce
Enterprise Product
Lifecycle Focus
Across the supply chain
Throughout the lifecycle
The Digital Product Lifecycle
Design Plan Service Produce
Enterprise Product
Lifecycle Focus
Across the supply chain
Throughout the lifecycle
The Digital Product Lifecycle
Manufacturing Goes Digital A CIMdata White Paper Page 7
6. Demonstrated Value
CIMdata has conducted research to review and
evaluate Digital Manufacturing implementations
in many companies around the world. The results
demonstrated by these companies have been very
positive and have validated the potential value to
companies that embrace Digital Manufacturing
and make it a fundamental part of their overall
product program. Figure 7 illustrates the range of
benefits that have been achieved by a variety of
companies with Digital Manufacturing
implementations of various sizes. Clearly,
substantial benefits are available for companies
that make the investment.
As one example, a large U.S. aerospace firm
employs Digital Manufacturing as part of a PLM
environment (Teamcenter and Tecnomatix from
UGS) within their 10,000 part number aircraft
engine operations. Their Digital Manufacturing
environment is used to manage approval,
notification, and tracking of documents, establish
routings and work instructions, and manage
process templates. A head of manufacturing
engineering at the firm stated that, Through
commonization, reduction in design changes,
quality improvements, and productivity gains,
we were able to obtain payback on our invest-
ment in less than one year.
7. Summary
Producers in key industries and up and down
supply chains are now faced with intense and
challenging shareholder and market forces,
including the unrelenting demands for innova-
tion, sustained profitability, compressed product
development times, minimum operating costs,
and product functionality and quality that ex-
ceeds expectations. Continuous and relentless
operational improvement is mandatory. To sur-
mount these worldwide pressures and for long-
term viability, manufacturers are going digital.
Digital Manufacturing is a proven, critical, and
effective technology-based solution that helps
producers boost their global competitiveness and
achieve their business objectives. It results in
more effective manufacturing planning and
production efficiency, and it facilitates and sup-
ports lean production, concurrent engineering,
use of best practices, commonization of compo-
nents, compliance with standards, and collabora-
tive information management throughout an
enterprise. Leading companies are investing in
Digital Manufacturing, and they will be among
the winners in years to come.
About CIMdata
CIMdata, an independent worldwide firm, pro-
vides strategic consulting to maximize an enter-
prises ability to design and deliver innovative
products and services through the application of
Product Lifecycle Management (PLM) solutions.
CIMdata offers world-class knowledge, exper-
tise, and best-practice methods on PLM solu-
tions. These solutions incorporate both business
processes and a wide-ranging set of PLM
enabling technologies.
CIMdata works with both industrial organiza-
tions and suppliers of technologies and services
seeking competitive advantage in the global
economy by providing world-class knowledge,
expertise, and best-practice methods on PLM
solutions.
In addition to consulting, CIMdata conducts
research, provides PLM-focused subscription
services, and produces several commercial
publications. The company also provides
industry education through international
conferences in the US, Europe, and Japan that
focus on PLM. CIMdata serves clients world-
wide from locations in North America, Europe,
and Asia Pacific.
To learn more about CIMdatas services, visit
our website at www.CIMdata.com or contact
CIMdata at: 3909 Research Park Drive, Ann
Arbor, MI 48108, USA. Tel: +1 (734) 668-9922.
Fax: +1 (734) 668-1957. In Europe: Siriusdreef
17-27, 2132 WT Hoofddorp, The Netherlands.
Tel: +31 (0)23 568-9385. Fax: +31 (0)23 568-
9111.


Figure 7. Demonstrated Value of Digital
Manufacturing
Large Medium Small
$5M-$10M $1M $200K Initial Investment
$5M-10M $1M $200K Annual Investment
$50M-$100M $8M $1M Annual Savings
10 to 1 8 to 1 5 to 1
Annual Return on
Annual Investment
Implementation Size
Factor
Large Medium Small
$5M-$10M $1M $200K Initial Investment
$5M-10M $1M $200K Annual Investment
$50M-$100M $8M $1M Annual Savings
10 to 1 8 to 1 5 to 1
Annual Return on
Annual Investment
Implementation Size
Factor