Transforming the process of innovation in

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1 Transforming the process of innovation in aerospace and defense Siemens PLM Software Industry-leading aerospace and defense OEMs and systems users are employing Siemens PLM Software product lifecycle management (PLM) solutions to improve productivity, reduce cycle time, cut value chain costs and mitigate risk across every phase in the product lifecycle, including concept formulation, detail design, production and logistics/sustainment.

2 A&D industry transformation The aerospace and defense industry is poised for significant growth over the next 24 to 36 months in virtually every industry segment commercial and general aviation, defense systems and platforms, space exploration and satellite communications. To successfully respond to today s challenges, the industry must deliver easy-to-maintain, costcompetitive products that provide exceptional performance across a lifecycle that can approach 50 years. It is no longer possible or practical for one corporation to develop, design, manufacture, assemble, test and sustain a major A&D platform/system. Virtual teams and globally distributed enterprises must be able to function in highly disciplined, integrated and synchronized value chains whose responsibilities run the gamut from requirements to retirement. Siemens PLM Software provides a unique software portfolio to address A&D-specific challenges. Its comprehensive and open suite of solutions enable A&D OEMs and systems users to seamlessly and continuously leverage product knowledge across widely dispersed value chains while minimizing the disruptive and risky handoffs from one virtual team to another. Siemens PLM Software also offers a highly complementary set of applications that is integrated withteamcenter software Siemens PLM Software s digital lifecycle management foundation to facilitate productivity improvement, cycle and cost reduction and risk mitigation throughout every A&D lifecycle phase, including concept formulation, detailed design, production and logistics/ sustainment. Siemens solutions are defined by their modularity and openness, allowing users to adopt only those modules that deliver the best value.these solutions enable global enterprises to support multiple-cad protocols in a single environment, while providing A&D specific enhancements (via COTS deliverables) to address recurring challenges, including the industry s CDRL/ SDRL, ITAR, UID and multi-site replication requirements.

3 Business imperatives for the aerospace and defense industry Today s most forward-thinking aerospace and defense companies are building global innovation networks that enable them to continuously improve their products and processes and organize their value chains so that innovation can flourish. Global innovation networks unite partners, suppliers and customers through a shared base of product/process knowledge that allows distributed value chains to innovate as a single enterprise.these networks drive the following business imperatives. Increasing the yield of innovation. By enabling value chains to view new product ideas and validate them against multiple customer, engineering, and manufacturability requirements, global innovation networks accelerate the entire process of innovation and expand innovation capacity. Compressing time-to-market. Global innovation networks enable enterprises to analyze their processes, designs and/or suppliers to determine whether they work effectively in speeding products to market. Meeting business and regulatory requirements. By incorporating compliance as an integral process in the product lifecycle, global innovation networks cost effectively mitigate the risk of non-compliance. Optimizing resources. By maximizing the ability to re-use ideas, processes, resources, skills, designs, parts, documents and sourcing relationships, global innovation networks enable value chains to rapidly and cost effectively respond to rising A&D initiatives. Maximizing globalization advantages. By uniting distributed value chains at every level, global innovation networks enable enterprises to design anywhere, build anywhere and support anywhere. Siemens-provided global innovation networks currently drive the U.S. Navy s lean shipbuilding and repair initiatives, multiple U.S. Air Force transformational programs, and the future logistics enterprise that will facilitate logistical transformation across all U.S. defense services. 1

4 Initiatives for the A&D industry Enterprise data management By seamlessly and rigorously managing knowledge creation, use and re-use, enterprise data management enables program managers to improve multiple A&D initiatives.value chains are able to establish virtual design and manufacturing teams that share aligned product data.virtual design review can be performed on a 7x day basis, including the routine exchange of comprehensive 3D images and full disclosure of engineering data and test results. International coalitions can function as highly centralized enterprises, using enterprise data management to facilitate ITAR compliance. Multi-discipline teams can assess a master product structure that provides comprehensive insight into the complete DNA of every part, subsystem and system in a major aerospace system. Embedded workflows synchronize the change management process across a distributed value chain. Enterprise data management enables OEMs to mitigate the risk associated with total lifecycle support and performance-based logistics. Production efficiency The need for global sourcing, manufacturing and test/assembly places extraordinary pressure on today s A&D production operations. Siemens provides a suite of software solutions that integrates all aspects of production operations, including sourcing, manufacturing planning/management and multi-site assembly/test. Production operations can link these diverse and often highly dispersed functions through Teamcenter Siemens globally oriented digital lifecycle management solution.this solution provides production operations with a single source of comprehensive product and manufacturing knowledge they can leverage to account for all configuration changes, as well as to track all production results, including options and variants between the engineering BOM and the manufacturing BOM for post-delivery service and support. 2

5 Value chain synchronization The global value chain for aerospace and defense will be severely challenged over the next 24 to 36 months as virtually every kind of industry segment undergoes a significant upswing in production. Concurrently, many OEMs are shifting increasingly more substantive engineering and manufacturing work to their value chain. As a result, value chain synchronization and its related enabling technologies integration, information exchange, strategic sourcing and collaboration have become critical success factors. Siemens provides a suite of solutions for building a virtual global enterprise that can rapidly respond to impending surges in production at least as well as and in some instances more effectively than highly centralized, vertically integrated enterprises. This suite is tightly integrated with Siemens flagship A&D enterprise data management solution enabling seamless total knowledge management from requirements to retirement. New product development The speed, efficiency and quality of a value chain s new product development and introduction (NPDI) process are critical in influencing mission success. Siemens suite of tightly integrated NPDI solutions dramatically reduce time-to-market by linking all stakeholders into today s complex product development processes, including users who employ multiple CAD, CAE, CAM and PLM systems. Siemens comprehensive NPDI capabilities improve processes associated with capturing/refining new product ideas as well as transforming these ideas into tangible requirements, concepts, definitions, controls and metrics.the Siemens suite integrates all disciplines that participate in NPDI including aeronautical, thermal, electrical, mechanical and software engineering to optimize system performance, affordability and sustainment. 3

6 Innovation across the entire A&D pro Manufacturing engineering Detailed development Concept development Planning and requirements Sales and quotations 4

7 duct lifecycle and global value chain Value chain management Assembly and certification Test Service and support Enhancement and modernization 5

8 Siemens preeminence in aerospace and defense Siemens solution portfolio addresses the unique challenges of the aerospace and defense industry by incorporating a series of A&D-specific capabilities that leverage COTS technology into its core modules.these capabilities include features for handling CDRLs/SDRLs, complying with ITAR requirements and facilitating bulk data replication as well as accounting for serialized parts and performing option and variant tracking. Siemens PLM Software features also support the implementation of RFID and UID systems that have become crucial elements in facilitating global logistics and supply chain networks. The marketplace success of the Siemens portfolio in aerospace and defense which requires consistent, predictable and near-term value has made Siemens product lifecycle management (PLM) suite the de facto industry standard for knowledge-driven transformation. Siemens has accumulated more than 1 million man-years of experience delivering mission-critical value, which is 20 times the experience of any other vendor in its class. The Siemens portfolio has consistently proven itself in meeting the challenges of the aerospace and defense industry where it has demonstrated its success in providing material value across the entire A&D lifecycle and value chain. Just as importantly, the Siemens portfolio is equally adept at solving the needs of small and highly focused teams as it is in meeting the needs of large international coalitions. The scalability of the Siemens portfolio is best illustrated by its share of A&D mega-sites that service more than 5,000 users. As the following graphic illustrates,teamcenter manages 11 of 12 A&D mega-sites, which include the largest integrated enterprise solutions in both the government and commercial market sectors. 6

9 Siemens unique aerospace and defense performance The Siemens solution portfolio has driven an impressive list of benchmarks for its aerospace and defense users. From the launch of the new, highly innovative Very Light Jet (VLJ) to its use by an international coalition of military aircraft builders that currently numbers over 6,000 users and eventually will include more than 600 customers and 20,000 users, Siemens portfolio has enabled its A&D clients to consistently achieve breakout performance. Siemens solutions also have dramatically reduced the time-tomarket metrics for both airframe and engine OEMs.This reduction provides Siemens clients with significant competitive advantage in their market segments, as well as delivering substantial programrelated return on investment and productivity improvements. Siemens A&D credentials Benchmark Global collaboration network with ITAR embedded Enterprise PLM network Joint services PLM interoperability Time-to-market/first-to-market Siemens customer performance Largest virtual enterprise in A&D history Commercial client: more than 40,000 users DoD client: goal 400,000 users Navy, Army and Air Force Aero Engines Bizjets Various military aircraft Very Light Jets (VLJ) 7

10 Siemens transforming the A&D industry As clients and their executives have increasingly understood the role and importance of PLM, the business value of Siemens solution portfolio has been demonstrated in more and more missioncritical benchmarks.this value is particularly evident in A&D programs, where global innovation networks that service more than 40,000 users provide immediate access to multiple terabytes of data that define highly complex product structures. With more than 1 million man-years of experience in delivering mission-critical operations on an unparalleled scale (i.e., supporting over 40,000 users on a single system), Siemens is now the de facto provider of product lifecycle management and facilitator of enterprise transformation for the aerospace and defense industry. Siemens aerospace and defense customers have achieved an impressive array of benchmarks, including: 24-month time-to-market cycles that include start to first-flight milestones More than 50 percent improvements in cycle reduction The ability to consistently and repeatedly drive enterprise transformation and productivity 8

11 Put Siemens solutions to work for your enterprise Don t let the opportunity to learn more about the Siemens solution portfolio pass you by. Contact your Siemens PLM Software client representative today for more information about Siemens A&D-driven enterprise data management, production efficiency, value chain synchronization and new product development solutions.

12 About Siemens PLM Software Siemens PLM Software, a division of Siemens Automation and Drives (A&D), is a leading global provider of product lifecycle management (PLM) software and services with 4.3 million licensed seats and 47,000 customers worldwide. Headquartered in Plano,Texas, Siemens PLM Software s open enterprise solutions enable a world where organizations and their partners collaborate through Global Innovation Networks to deliver world-class products and services. For more information on Siemens PLM Software products and services, visit Siemens PLM Software leads to greater innovation There is no single road to innovation, but there are signs you re headed in the right direction. Leading innovators get to market faster, manage compliance, optimize resources and achieve globalization. They re also four times more likely to use PLM software to plan, define, build and support their products. Siemens PLM Software s family of PLM solutions helps businesses establish Global Innovation Networks that transform their process of innovation. Drive your business to greater innovation and accelerate your growth. MOVE FASTER BE COMPLIANT GET OPTIMIZED GO GLOBAL Division headquarters Regions United States Granite Park One 5800 Granite Parkway Suite 600 Plano,TX Fax Americas Granite Park One 5800 Granite Parkway Suite 600 Plano,TX Fax Europe Norwich House Knoll Road Camberley, Surrey GU15 3SY United Kingdom Fax Asia-Pacific Suites , 68/F., Central Plaza 18 Harbour Road,WanChai Hong Kong Fax Siemens Product Lifecycle Management Software Inc. All rights reserved. Siemens and the Siemens logo are registered trademarks of Siemens AG. Teamcenter, NX, Solid Edge,Tecnomatix, Parasolid, Femap, I-deas, JT, UGSVelocity Series, Geolus and the Signs of Innovation trade dress are trademarks or registered trademarks of Siemens Product Lifecycle Management Software Inc. or its subsidiaries in the United States and in other countries.all other logos, trademarks, registered trademarks or service marks used herein are the property of their respective holders W 3 9/07