IMPLEMENTING A CAD SYSTEM TO REDUCE COSTS
Introduction
This report will analyze a proposal on how Woodbridge Foam could become more competitive
through improvements in technology.  This includes the saving of the companies money,
shortening the design time for new products, decreasing quoting time and improving quality
overall.  By implementing a company wide CAD system, which would be networked together with
each customer and all plants, these improvements  could be achieved.  Research will include
interviewing various employees as to how business is done and what influences the winning or
loosing of a contract.  Research will also include study of both customer and competitors
systems.

Project Scope & Current Evaluation
Goals Supported by CAD Initiative:
In converting to a completely independent CAD system, there are a few aspects of operation
which would be greatly improved.  The first of the improvements would be the elimination of
paper communication.  The need to transfer large drawings using mylars would cease to be,
thus helping provide a paper less environment.  Another improvement as a result of CAD would
be that of achieving much tighter tolerances in building new products.  Using a CAD system,
part designs could be received in an electronic format such as a math model.  These models
are currently in use by customers such as GM, BMW and Mercedes.  The effect of having math
models of all new products would enable a quicker turnaround in both quoting and production
of products. CAD Vendors & Hardware Suppliers: Upon observing the various systems used by
several customers and suppliers, the major CAD vendors worth consideration have been
identified.  Manufacturers of high quality workstations which have been distinguish are:
Hewlett Packard (HP) IBM Silicon Graphics (SGI) SUN Premium, fully 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 habitual way of doing things, there are
several success factors which must be examined.  If these factors are carefully thought
over, a favorable shift from old to new may be obtained.  Some critical success factors are
as follows: Vendor availability - Will the chosen system supplier be readily available for
technical support? Product engineering acceptance - Will those who are set in their ways be
willing to abandon their habitual manner of operating? Training - Thorough training of all
related employees must be completed 	before introduction of the new system. Data management
- A new manner of recording all vital information must be established and proper procedures
documented. Customer interface - Will the chosen system be compatible with those used by our
customers and will needed data be easily convertible?

Company Weaknesses:
Currently, there are many aspects of our situation which present problems in coping with
changing times, which in turn affect the development of technology.  Some weaknesses in the
company which curtail our affiliation with the developmental progress of our customers and
suppliers are: We cannot easily accept electronic data; We must deal in manual drawings; We
have many copies of similar drawings; We have multiple ECN levels; We have minimal CAD
knowledge; We must perform manual volume calculations.

Threats to Business:

If procedures are not taken in order to improve on the present company weaknesses, there are
bona fide threats which could potentially harm future progress and business.  Once the
weakness in the company have been effaced, the following threat to our business may be
eliminated or greatly reduced.  The immediate threats are: Suppliers may assume the design
role; Competitors able to accept electronic input; No business with new products;
Deterioration of communications; Lost productivity Process Description: As in most large
corporations, our process generally follows a standard order of operations.  There are
several departments or areas which have functions.  Based on the function of a department or
area, a focus area is established and followed.  Department/Area  Function Focus  Area




Customer
Designs seat




Product Engineering
Designs tool to manufacture seat




Supplier
Builds tools and supplies components needed to manufacture and construct seat




Product Evaluation & Costing
Costs seat based on foam and components used, manufacturing costs and assembly




Purchasing
Locates seat component suppliers and oversees development and manufacture of components




Plant
Manufactures and assembles seat




Quality Control
Ensures that products meet our own and customer standards




Sales / Marketing
Processes orders and manages overall customer relationships


New System Requirements
CAD System Requirements:
The CAD system which is chosen must be capable of performing several specific tasks.  In
order for a new system to be of any use to the company and an aid to its advancement, it
must present an improvement in various areas.  Some of the short term requirement of a new
CAD system are: Capable of 3D modeling including solids; May be used for simple or complex
drafting applications; Suited to quickly perform volume calculations; Apt to translate
various forms of math data.

Product Evaluation & Costing (P.E.C.) Requirements:
With respect to all the various areas of the company, the role of the P.E.C. department is
one of the most important in the area of profit.  Once the costing department receives a
part request from a customer, it is the responsibility of the costing department to ensure
that the life cycle of the part development is managed cost efficiently.  When a current
product undergoes an engineering change, it is the responsibility of the Costing team
members to note the changes.  The product must be re-costed, accounting for variances in
foam and components.  If an increase in foam is noted, the change must be calculated.  Using
manual calculations, the new part volume is derived and the customer is charged accordingly.
 Because foam variances are obtained manually, customers may at times, not be fully charged
for the added cost of foam.  Using a CAD system to perform a volume calculation, the answer
would be definitive. The time needed to ship a print is approximately two days.  If math
models of products were sent via E-mail, the information needed by the costing department
would be obtained two days earlier.  Once complete, a costing package would in turn, arrive
at a plant, also two days earlier from costing.  In effect, a total of four days could be
eliminated from the time needed to begin manufacturing a product. Solution Evaluation &
Recommendation Benefits of CAD System In utilizing a CAD system, there are many areas of
operation which are directly or indirectly affected.  Because of the speed and accuracy with
which a professional CAD system operates, time, and thus money, may be saved. Potential CAD
project benefits include: Improved accuracy in quotes and design; Reduction in copying and
courier costs; Faster and more accurate calculations of complex volumes; Management of
expanding drawing database; Improved electronic communication with customers and suppliers.

Recommended Vendor/Supplier
Based on thorough presentations made to executives of Woodbridge Foam by each candidate and
the penetration of these amongst key Woodbridge customers, it is recommended that
Unigraphics be implemented as the solution.  The Unigraphics system is currently used b 40%
of Woodbridge customers.  This system is also capable of performing all of the previously
mentioned tasks such as 3D modeling, drafting, volume calculations and translating different
forms of math data.

Justification of CAD & Unigraphics

CAD justification includes:
Elimination of Mylars;
Encouragement of a paper-less environment;
Reduction in copy and reproduction costs;
Reduction in courier costs;
Faster and more accurate part volume calculations.


Unigraphics justification includes:
Used by key customers such as Chrysler and GM;
Ability to convert data used by all customers;
Extra commitment and availability for technical support;
Extensive research into company prior to presentation.


Work Station Cost:

One time 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 time total costs
$137 500


Annual Maintenance Costs: $3 750
Cost Reductions:
As previously mentioned, the implementation of a CAD system will reduce costs in several
areas.  By eliminating the need for physical prints, the cost of reproducing and shipping
prints will be eliminated.  Some potential cost reductions in dollars are: Prints: 35,000

Mylars:
75,000

Courier:
5,500

Travel:
16,000

Plants (saved travel):
90,000* 

Productivity Improvement
75,000*

TOTAL SAVED:
296,500


Productivity Improvements:
There are some improvements in productivity which do not present a monetary value.  These
improvements however; will benefit the company and customer relations.  These non-monetary
productivity improvements are: Improved accuracy; Improved customer satisfaction; Support
for higher tolerance of products; Improved on-line access to information; Improved internal
communication between Woodbridge departments.

Conclusion:
As advancements in technology continue to be the norm, it is essential that those who wish
to remain competitive, adhere to these advancements.  In the case of the Woodbridge Foam
Corporation, maintaining and equal standing with technological advancements will allow for
improvements in the company as a whole.  Cost saving may be incurred in the areas of print
and courier costs; while the need for paper transference is eliminated.  Tolerances, quoting
time and an overall improvement in quality will in turn improve the satisfaction of our
customers.  Because of these advancements in technology within the company, the saying "a
satisfied customer is a return customer" may be brought to life. 





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