FORD & HEWLETT-PACKARD CIM ALLIANCE PRESENTATION Ford and Hewlett-Packard CIM Alliance ********* FCA01.GAL ********* ..pictureA:\FCA\FCA01.GAL,65535,49151,1,49,15, The purpose of this presentation is to give you an overview of the CIM alliance announced by Ford and Hewlett-Packard in August 1990 -- what it is, who the players are, and how it works. Moreover, before this session is over, you should have a sense of what the alliance means to you and how you can participate. PRESENTER NOTE: The purpose of this presentation is to give an overview of the CIM alliance announced by Ford and Hewlett-Packard in August 1990 -- what it is, who the players are, and how it works. The presentation has been designed for the following audiences: 1) Existing and potential customers who have expressed interest after reading or hearing about the alliance. 2) Larger customers who might also benefit from this type of relationship. It is also a tool for entering large accounts where we want to move the relationship forward. The HP/FORD alliance is an impressive one and shows HP's commitment to the CIM marketplace. 3) HP employees who are interested in learning more about the relationship and getting involved. 4) Third parties who are interested in leveraging this relationship. .PA The Press ********* FCA02.GAL ********* ..pictureA:\FCA\FCA02.GAL,65535,49151,1,49,15, You may have seen some reports on the Alliance in the press, for example: "A CIM alliance has been formed between Hewlett-Packard and the Ford Automotive Components Group (ACG)." -- Automotive Electronics Review, September 1990 "...Ford and HP will establish what they are calling a computer-integrated manufacturing alliance, which includes a staging center with the most up-to-date HP systems simulating manufacturing processes, training, support and the development of a technology plan for Ford." -- ComputerWorld, August 20, 1990 "The assurance of such support will allow Ford to implement plant floor systems projects in phases, thus strengthening the automaker's hand in getting third parties to develop software applications to consistent technical standards." -- Managing Automation, October 1990 "...an analyst for the Automation Research Group said the announcement shows that HP is a stronger vendor for UNIX*-based manufacturing solutions than IBM or Digital." -- The HP Chronicle, October 1990 And the people from Ford may have seen reports on the FCN News (their video news magazine). *UNIX is a registered trademark of AT&T in the USA and in other countries. .PA CIM Alliance Vision ********* FCA03.GAL ********* ..pictureA:\FCA\FCA03.GAL,65535,49151,1,49,15, Within the context of the relationship, the two companies will collaborate on major computer-integrated manufacturing (CIM) and information-technology strategies throughout the 1990s. While the alliance addresses CIM, its scope is much broader, encompassing topics such as business practices and philosophies, human resources, and competitive analysis. Ford and HP have identified advantages to both corporations in developing a close working relationship to achieve and maintain best-in-class status in manufacturing. The spirit and philosophy of this alliance is to remain dynamic and flexible -- to continually search out new areas of alliance activity and effort -- and to work to the competitive advantage of both companies. It will endure as long as this spirit and philosophy are maintained. .PA Ford Automotive Components Group (ACG) Org Chart ********* FCA04.GAL ********* ..pictureA:\FCA\FCA04.GAL,65535,49151,1,49,15, Ford Motor Company's Automotive Components Group (ACG) encompasses several major Ford divisions at over 30 different plant sites located throughout the world. Products include glass, climate control, electronic, electrical, fuel handling, and plastic components and systems. ACG divisions are suppliers to Ford, but they also do substantial business outside the parent company. With $13 billion in revenue, ACG is one of Ford's few worldwide business units. .PA Hewlett-Packard Corporate Organization ********* FCA05.GAL ********* ..pictureA:\FCA\FCA05.GAL,65535,49151,1,49,15, Hewlett-Packard Company, with revenues of $12 billion, is an international manufacturer of measurement and computation products and systems recognized for quality and support. .PA Ford Automotive Components Sites in the Americas ********* FCA06.GAL ********* ..pictureA:\FCA\FCA06.GAL,65535,49151,1,49,15, .PA Ford Automotive Components Sites in Europe ********* FCA07.GAL ********* ..pictureA:\FCA\FCA07.GAL,65535,49151,1,49,15, .PA Ford Automotive Components in Asia/Pacific ********* FCA08.GAL ********* ..pictureA:\FCA\FCA08.GAL,65535,49151,1,49,15, The scope of the alliance is worldwide. (NOTE: Show maps as appropriate: the Americas, Europe, and Asia/Pacific Rim.) Point out that wherever there is a Ford operation, there is local Hewlett-Packard support. .PA Ford ACG and HP Areas of Common Interest ********* FCA09.GAL ********* ..pictureA:\FCA\FCA09.GAL,65535,49151,1,49,15, Contributing to HP and Ford's motivation to work together are areas of common interest such as business on a worldwide scale, aggressive planning to improve business stability and implement continuous process improvement programs, and open systems to reduce business cycle times. The two organizations see technology as making an important contribution towards reaching the business goals of the manufacturer. .PA Ford Automotive Components Group Business Drivers ********* FCA10.GAL ********* ..pictureA:\FCA\FCA10.GAL,65535,49151,1,49,15, With or without an alliance, Ford has business drivers that influence and determine decision making. These business drivers include reducing the concept-to-customer (C-to-C) time, improving product quality, developing more efficient manufacturing processes, and reducing costs. .PA Ford Automotive Components Group CIM Approach ********* FCA11.GAL ********* ..pictureA:\FCA\FCA11.GAL,65535,49151,1,49,15, Ford's approach to CIM, influenced to a large extent by its business drivers, includes portable applications that can be replicated, modular applications that can grow, distributed systems and applications, plantwide information access, and systems that are integrated thanks to the use of CASE (computer-aided software engineering) tools and data models. .PA Ford Automotive Components Group Technology Areas ********* FCA12.GAL ********* ..pictureA:\FCA\FCA12.GAL,65535,49151,1,49,15, Represented either explicitly or implicitly in the conceptual architecture are elements of each of these technology areas identified and subscribed to by Ford. .PA CIM Alliance Key Areas ********* FCA13.GAL ********* ..pictureA:\FCA\FCA13.GAL,65535,49151,1,49,15, NOTE: If you are limited for time and wish to go into less detail on the key areas, you may prefer to replace all or some of slides FCA14 through FCA21 with slide PCA13. .PA CIM Alliance Key Areas ********* FCA14.GAL ********* ..pictureA:\FCA\FCA14.GAL,65535,49151,1,49,15, Ford and HP will maintain a joint CIM Alliance Team (CAT) which will be responsible for the management of the alliance agreement and its activities. This slide shows major activities. Both HP and Ford expect to derive significant value from this relationship. Value is determined, in part, through contributions to competitive positioning and quality improvements as well as through review of revenue, expense, and cost savings. .PA Business Practices ********* FCA15.GAL ********* ..pictureA:\FCA\FCA15.GAL,65535,49151,1,49,15, HP and Ford will share and exchange information on business topics of mutual interest, specifically including topics outside of CIM: PRICING AND PURCHASING SIMPLIFICATION ------------------------------------- On an ongoing basis, HP will review with Ford Purchasing the master purchasing agreement to ensure that Ford will receive the lowest prices available in the commercial sector (consistent with Ford's volume of purchases). With ACG and Ford Purchasing, HP will continue to improve purchasing systems, as measured, in part, by reductions in the total order-to-delivery time for HP products. Q1 PROGRAM FOR SELECTION OF CIM SUPPLIERS ----------------------------------------- HP and Ford ACG, as a by-product of joint efforts on systems architecture (discussed later), will develop and maintain, with Ford Purchasing, a Q1 program for the selection of CIM alliance partners and suppliers for Ford ACG plantfloor systems. (Note: Q1 is the name of Ford's supplier quality rating system, which measures a supplier's ability to comply consistently with Ford requirements and assesses a supplier's commitment to continuous improvement.) IN-HOUSE TECHNOLOGY ------------------- The CIM alliance will provide an environment and model for the pursuit of information and the establishment of business relationships regarding in-house technology, manufacturing capability, and business practices. .PA EXECUTIVE AWARENESS ------------------- HP will establish an on-going series of Executive Exchanges to address topics of mutual interest, e.g., a roundtable on new computing technologies and their impact on business processes and practices. Other potential topics include time-based competition, the role of computers and information systems in establishing and maintaining a competitive advantage, and all aspects of human resources including training and staffing. Ford and HP executives will participate in joint visits to "leading edge" plants that utilize computers in manufacturing. COMPETITIVE BENCHMARKING ------------------------ This sharing of information will also apply to identifying the "state of the art" with regard to the application of CIM. In addition, HP and Ford will jointly identify the industry trends and characteristics for a world- class, best-in-class supplier in common market areas, like electronics, where both HP and Ford ACG are working to maintain positions as best-in-class suppliers. .PA Technology Planning ********* FCA16.GAL ********* ..pictureA:\FCA\FCA16.GAL,65535,49151,1,49,15, HP will participate in the on-going development of Ford's Technology Plan including the Systems Architecture, Data Model, and Wiring Diagram. HP experts will regularly review and comment on Ford ACG's Technology Planning activities. The Technology Planning effort will involve HP personnel in Detroit and experts from HP's California organizations. OPEN SYSTEMS/GLOBAL STANDARDS ----------------------------- HP expert personnel will assist Ford in developing formal specifications for computer languages, networks, operating systems, user and applications interfaces put forth by the X/Open Group through the Open Systems Foundation (OSF) along with the appropriate de facto standards to achieve connectivity with IBM. HP will continue to provide information on project plans and programs to maintain compliance with standards, including information on the number of assigned people, timing, etc. SYSTEMS ARCHITECTURE -------------------- Ford, with the technical assistance of HP will develop and maintain the Ford systems architecture. This effort includes the establishment of an applications architecture that identifies the major required applications and their functionality. It incorporates open, non-proprietary interface specs between applications designed to provide for the integration and interoperability of the most suitable third- party offerings available. .PA DATA MODEL ---------- Part of the interrelationships of the functionalities is defined by a consistent, global model for information to be shared among functions. A common Ford data model is initially focused within the four walls of the plant and includes the major interfaces from and to the Ford plant. WIRING DIAGRAM -------------- Finally, the computerized portions of the architecture can be represented by a wiring diagram. This endeavor positions the key technology elements -- CPU, operating system, database, networks, user, applications -- into a working hardware/software architecture. HP will participate in the selection of the technology elements within the four walls of the plant. HP will continue to characterize the performance of the technology architecture through tests at the Manufacturing Development Center's Staging Facility, selected third-party sites, and at HP's internal test utilities. HP will provide performance information to assist Ford in system sizings. .PA Technology Development and Deployment ********* FCA17.GAL ********* ..pictureA:\FCA\FCA17.GAL,65535,49151,1,49,15, HP, Ford, and selected third parties will participate in the deployment of CIM Systems in Ford plants worldwide. DIVISIONAL INITIATIVES ---------------------- HP will assist with identified Ford Divisional Initiatives and participate in implementations based on those Initiatives. HP participation in these Initiatives may include assistance with application selection, training development, and launch. Example Initiatives include Preventive Maintenance, SPC/Quality Analysis, Application Enabler, and Data Model. MIGRATION PLAN -------------- HP and Ford will establish and maintain criteria and plans for the replacement of older installed equipment and systems with newer, more cost-effective equipment. The criteria include such cost items as software translation, initial and ongoing support and operating costs, and ongoing training costs, as well as time-based deployment metrics. CIM STAGING CENTER ------------------ HP and Ford will operate a CIM Staging Facility at Ford's Manufacturing Development Center in Detroit. This facility includes the latest HP equipment to emulate the "typical" hardware and software environment planned for Ford plants. A Ford Staging Team, with HP participation, will provide coordination of the Ford Manufacturing Development Center facilities and resources. .PA NEW PRODUCT PLANS AND DIRECTIONS -------------------------------- HP will regularly share long-horizon information on HP product strategies and plans, provide access to facilities for review of future products, and assist Ford in integrating these products into the Architecture. Ford will regularly provide feedback for consideration by HP on the suitability of HP's strategies, plans, and products to the Ford CIM ACG Architecture. .PA Utilization of HP Products and CIM Technologies ********* FCA18.GAL ********* ..pictureA:\FCA\FCA18.GAL,65535,49151,1,49,15, The key HP products and technologies used in the pilot system implementations are shown on this slide. .PA Third Party Alliances ********* FCA19.GAL ********* ..pictureA:\FCA\FCA19.GAL,65535,49151,1,49,15, HP and Ford will establish alliances with third-party vendors of Ford's selection. All alliance partners will comply with the criteria outlined in the "Q1 Program for Selection of CIM Suppliers" and are subject to the approval of the CIM Alliance Team (CAT) and the Ford CIM Steering Committee. HP will provide support to these selected third parties to expedite the availability to Ford of CIM applications that conform to the specifications of the Ford Technology Plan. .PA European Support ********* FCA20.GAL ********* ..pictureA:\FCA\FCA20.GAL,65535,49151,1,49,15, HP and Ford will establish a strategy for the support of plantfloor systems in Ford European plants including a Ford-specific support and service plan with identified resources/skills for Ford ACG European plants. HP and Ford will develop and operate a CIM Staging Center in Europe modeled after the CIM Staging Facility at Ford's Manufacturing Development Center. .PA Human Resources ********* FCA21.GAL ********* ..pictureA:\FCA\FCA21.GAL,65535,49151,1,49,15, HP will participate with Ford in identifying the Ford resources required for CIM. HP will participate in the development and annual update of the Ford Human Resources Plan. TRAINING -------- HP will evaluate the training requirements within Ford regarding HP equipment and systems, consistent with the migration to the HP standard. HP will proactively develop and maintain a total Ford training program designed to effectively meet Ford's specific needs, utilizing innovative/creative training classes and training aids that address Ford's requirements. These programs will be offered on a worldwide basis so that they will be available to Ford plants worldwide. SUPPORT ------- HP and Ford will evaluate the support requirements within Ford regarding HP equipment and systems, consistent with the migration to the HP standard. HP will apply its intellect and creativity, and proactively develop and maintain a support program designed to effectively meet Ford's needs. This program will also be offered on a worldwide basis. .PA HP Ford CIM Alliance Benefits to HP ********* FCA22.GAL ********* ..pictureA:\FCA\FCA22.GAL,65535,49151,1,49,15, The business potential for Hewlett-Packard is clearly millions of dollars over several years ($15 million over the next three years) with a good mix of standard hardware and software as well as services -- consulting, training, and support. This alliance represents a new set of business opportunities for third parties; there are new applications and new Ford sites that have not been doing business with HP. Then there is the opportunity to take advantage of the intimate relationship with Ford to develop high-quality products more quickly. Finally the alliance gives us leverage with other customers similar to Ford. .PA The Alliance -- Getting Involved as a Third Party ********* FCA23.GAL ********* ..pictureA:\FCA\FCA23.GAL,65535,49151,1,49,15, If you are in Ford, if you wish further information or wish to contribute an idea to the alliance, or if you wish to participate in the ACG CIM Program, you should contact your Division CIM representative or the ACG Manufacturing Planning and Information Systems Office. .PA HP's Value-Added Business Program ********* FAC24.GAL ********* ..pictureA:\FCA\FCA24.GAL,65535,49151,1,49,15, A good first step for a third party interested in the HP Ford CIM alliance is to become part of the HP's Premier Solutions Provider (PSP) program. .PA Questions and Answers About the Alliance ********* FCA25.GAL ********* ..pictureA:\FCA\FCA25.GAL,65535,49151,1,49,15, As this presentation is given to customers and internal HP people, we expect that questions will come up that cannot be answered on the spot. Please contact Claudia Devaux via HP DESK if you have such a question that needs an answer, and she will make sure that a reply is sent to you. We will include these questions and answers in future releases of this presentation.