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Power Tools 1993 November - Disc 2
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Power Tools Plus (Disc 2 of 2)(November 1993)(HP).iso
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1992-01-13
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FORD & HEWLETT-PACKARD CIM ALLIANCE PRESENTATION
Ford and Hewlett-Packard CIM Alliance
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FCA01.GAL
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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
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FCA02.GAL
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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
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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
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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
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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
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.PA
Ford Automotive Components Sites in Europe
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.PA
Ford Automotive Components in Asia/Pacific
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FCA08.GAL
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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
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FCA09.GAL
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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
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FCA10.GAL
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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
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FCA11.GAL
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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
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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
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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
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FCA14.GAL
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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
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HP and Ford will share and exchange information on business topics of
mutual interest, specifically including topics outside of CIM:
PRICING AND PURCHASING SIMPLIFICATION
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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
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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
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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
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FCA16.GAL
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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
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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
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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
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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
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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
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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
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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
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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
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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
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The key HP products and technologies used in the pilot system
implementations are shown on this slide.
.PA
Third Party Alliances
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FCA19.GAL
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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
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FCA20.GAL
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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
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FCA21.GAL
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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
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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
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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
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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
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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
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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.