Implementing A CAD System TO Reduce Costs

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Implementing A CAD System TO Reduce Costs

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Implementing A CAD System TO Reduce Costss


This study will analyse a proposal on how Woodbridge Foam could go more

competitory through betterments in engineering. This includes the economy of the

companies money, shortening the design clip for new merchandises, diminishing citing

clip and bettering quality overall. By implementing a company broad CAD system,

which would be networked together with each client and all workss, these

betterments could be achieved. Research will include questioning assorted

employees as to how concern is done and what influences the winning or loosing

of a contract. Research will besides include survey of both client and

rivals systems.

Project Scope & A ; Current Evaluation Goals Supported by CAD Initiative:

In change overing to a wholly independent CAD system, there are a few facets of

operation which would be greatly improved. The first of the betterments would

be the riddance of paper communicating. The demand to reassign big drawings

utilizing Mylars would discontinue to be, therefore assisting supply a paper less environment.

Another betterment as a consequence of CAD would be that of accomplishing much tighter

tolerances in constructing new merchandises. Using a CAD system, portion designs could be

received in an electronic format such as a math theoretical account. These theoretical accounts are

presently in usage by clients such as GM, BMW and Mercedes. The consequence of

holding math theoretical accounts of all new merchandises would enable a quicker turnaround in both

citing and production of merchandises. CAD Vendors & A ; Hardware Suppliers: Upon

detecting the assorted systems used by several clients and providers, the major

CAD sellers deserving consideration have been identified. Manufacturers of high

quality workstations which have been distinguish are: Hewlett Packard ( HP ) IBM

Silicon Graphics ( SGI ) SUN Premium, to the full functional CAD solutions are: CATIA

( Dassault / IBM ) Computervision ( Computervision / TSI ) SDRC ( SDRC / CAD

Solutions ) Unigraphics ( EDS ) Current System Description Success Factors: In

implementing a new, otherwise foreign system into an established accustomed manner of

making things, there are several success factors which must be examined. If

these factors are carefully thought over, a favourable displacement from old to new may

be obtained. Some critical success factors are as follows: Vendor handiness

– Will the chosen system provider be readily available for proficient support?

Product technology credence & # 8211 ; Will those who are set in their ways be willing

to abandon their accustomed mode of operating? Training & # 8211 ; Thorough preparation of

all related employees must be completed before debut of the new

system. Data direction & # 8211 ; A new mode of entering all critical information must

be established and proper processs documented. Customer interface & # 8211 ; Will the

chosen system be compatible with those used by our clients and will needed

informations be easy exchangeable?

Company Weaknesses:

Presently, there are many facets of our state of affairs which present jobs in

get bying with altering times, which in bend affect the development of engineering.

Some failings in the company which curtail our association with the

developmental advancement of our clients and providers are: We can non easy

accept electronic informations ; We must cover in manual drawings ; We have many transcripts of

similar drawings ; We have multiple ECN degrees ; We have minimum CAD cognition ; We

must execute manual volume computations.

Menaces to Business:

If processs are non taken in order to better on the present company

failings, there are bona fide menaces which could potentially harm hereafter

advancement and concern. Once the failing in the company have been effaced, the

following menace to our concern may be eliminated or greatly reduced. The

immediate menaces are: Suppliers may presume the design function ; Competitors able to

accept electronic input ; No concern with new merchandises ; Deterioration of

communications ; Lost productiveness Process Description: As in most big

corporations, our procedure by and large follows a standard order of operations.

There are several sections or countries which have maps. Based on the

map of a section or country, a focus country is established and followed.

Department/Area Function Focus Area


Designs place

Merchandise Technology

Designs tool to fabricate place


Builds tools and supplies constituents needed to fabricate and build place

Product Evaluation & A ; Costing

Costss seat based on froth and constituents used, fabricating costs and assembly


Locates seat component providers and oversees development and industry of



Industries and assembles place

Quality Control

Ensures that merchandises run into our ain and client criterions

Gross saless / Marketing

Procedures orders and manages overall client relationships

New System Requirements CAD System Requirements:

The CAD system which is chosen must be capable of executing several specific

undertakings. In order for a new system to be of any usage to the company and an assistance to

its promotion, it must show an betterment in assorted countries. Some of the

& gt ; short term demand of a new CAD system are: Capable of 3D patterning including

solids ; May be used for simple or complex drafting applications ; Suited to

rapidly perform volume computations ; Apt to interpret assorted signifiers of math informations.

Product Evaluation & A ; Costing ( P.E.C. ) Requirements:

With regard to all the assorted countries of the company, the function of the P.E.C.

section is one of the most of import in the country of net income. Once the costing

section receives a portion petition from a client, it is the duty of

the costing section to guarantee that the life rhythm of the portion development is

managed cost expeditiously. When a current merchandise undergoes an technology

alteration, it is the duty of the Costing squad members to observe the alterations.

The merchandise must be re-costed, accounting for discrepancies in froth and constituents.

If an addition in froth is noted, the alteration must be calculated. Using manual

computations, the new portion volume is derived and the client is charged


Because froth discrepancies are obtained manually, clients may at times, non be

to the full charged for the added cost of froth. Using a CAD system to execute a

volume computation, the reply would be unequivocal. The clip needed to transport a

print is about two yearss. If math theoretical accounts of merchandises were sent via E-

mail, the information needed by the costing section would be obtained two

yearss earlier. Once complete, a costing bundle would in bend, arrive at a works,

besides two yearss earlier from bing. In consequence, a sum of four yearss could be

eliminated from the clip needed to get down fabricating a merchandise. Solution

Evaluation & A ; Recommendation Benefits of CAD System In using a CAD system,

there are many countries of operation which are straight or indirectly affected.

Because of the velocity and truth with which a professional CAD system operates,

clip, and therefore money, may be saved. Potential CAD undertaking benefits include:

Improved truth in quotation marks and design ; Reduction in copying and messenger costs ;

Faster and more accurate computations of complex volumes ; Management of

spread outing pulling database ; Improved electronic communicating with clients and


Recommended Vendor/Supplier

Based on thorough presentations made to executives of Woodbridge Foam by each

campaigner and the incursion of these amongst key Woodbridge clients, it is

recommended that Unigraphics be implemented as the solution. The Unigraphics

system is presently used b 40 % of Woodbridge clients. This system is besides

capable of executing all of the antecedently mentioned undertakings such as 3D mold,

outlining, volume computations and interpreting different signifiers of math informations.

Justification of CAD & A ; Unigraphics

CAD justification includes: Elimination of Mylars ; Encouragement of a paper-less

environment ; Reduction in transcript and reproduction costs ; Reduction in messenger

costs ; Faster and more accurate portion volume computations.

Unigraphics justification includes: Used by cardinal clients such as Chrysler and

GM ; Ability to change over informations used by all clients ; Extra committedness and

handiness for proficient support ; Extensive research into company prior to


Work Station Cost:

One clip costs for one Workstation:

Unigraphics Software License $ 30 000

Hewlett Packard Workstation $ 45 000

EDS Assistance ( Assessment/Help ) $ 5 000

Training ( UG Education ) $ 10 000

Consulting Assistance $ 7 500

Printer and Plotter $ 30 000

Hummingbird/Exceed PC Access Software $ 10 000

One clip entire costs $ 137 500

Annual Care Costss: $ 3 750 Cost Decreases: As antecedently mentioned, the

execution of a CAD system will cut down costs in several countries. By

extinguishing the demand for physical prints, the cost of reproducing and transporting

prints will be eliminated. Some possible cost decreases in dollars are:

Prints: 35,000

Mylars: 75,000

Messenger: 5,500

Travel: 16,000

Plants ( saved travel ) : 90,000*

Productivity Improvement 75,000*

Entire SAVED: 296,500

Productiveness Improvements:

There are some betterments in productiveness which do non show a pecuniary

value. These betterments nevertheless ; will profit the company and client

dealingss. These non-monetary productiveness betterments are: Improved truth ;

Improved client satisfaction ; Support for higher tolerance of merchandises ;

Improved online entree to information ; Improved internal communicating between

Woodbridge sections.


As promotions in engineering continue to be the norm, it is indispensable that

those who wish to stay competitory, adhere to these promotions. In the instance

of the Woodbridge Foam Corporation, keeping and equal standing with

technological promotions will let for betterments in the company as a whole.

Cost economy may be incurred in the countries of print and messenger costs ; while the

demand for paper transference is eliminated. Tolerances, citing clip and an

overall betterment in quality will in bend improve the satisfaction of our

clients. Because of these promotions in engineering within the company, the

stating & # 8220 ; a satisfied client is a return client & # 8221 ; may be brought to life.