According to manufacturing journalist, Thomas R. Cutler, in a recent issue of Tooling & Production Magazine, “In the past, engineered solutions required lengthy bid generation process before the fabricator or tooling manufacturer could deliver a strong response to a proposal request. Interaction between engineering and manufacturing was hindered based on the lack of system tools and lack of integration between CAD and ERP systems; this all impacted speed to customer response and generated internal disconnects between engineering and manufacturing. When project-based tooling manufacturers are not configuring from a preset mix of common components, the need for a collaborative environment becomes extremely important to design to the customers specifications.”

The complete article may be viewed at http://trcutlerinc.com/tp_122006.pdf.

Cutler added, “Given the regulatory environment in which manufacturers currently operate, these engineering cost-savings facilitate compliance with company, legislative, industry, quality, and design requirements.”

According to Frank Azzolino, President & CEO of aPriori Technologies, “With ETO the key is to get it right the first time since there is often no long production cycle in which to redesign and get the product and cost corrected over time. A critical element of ETO is to discern very early on what the cost will be; this drives margin. In the current ETO environment there are two choices – bid aggressively to win the deal and accept the risk of very low (or negative) margins, or bid conservatively to account for the risk of not fully understanding the impact of the customers choices on cost and risk – not getting the deal.”

Cost of Goods Sold (COGS) has become an increasingly important metric as the largest expense item on the income statement; typically 70% to 90% of revenue. Manufacturers are forced to focus on product cost and profit margins with renewed vigor. Cost targets, an important component of design-to-cost strategies, are now being defined early and with greater granularity, even down to the individual component level. Meeting these detailed cost targets at product launch (avoiding expensive, lengthy post-production cost reduction phases) is a new challenge and manufacturers are struggling to find effective systems or tools to assist in this effort. A Cost Management (CM) platform, such as that developed by aPriori, can help manufacturers address the challenges in New Product Introduction (NPI) programs.

Based in Concord, MA, aPriori is the technology leader providing innovative cost management solutions to the discrete manufacturing industry. aPriori’s Cost Management Software Platform enables manufacturers to better understand product cost decisions early and throughout the product lifecycle. aPriori’s Cost Management Platform empowers manufacturers to lower cost-of-goods sold (COGS), provides real-time visibility to “cost-critical” decision information, and builds critical cost knowledge to go on the business “offensive.” aPriori’s patent-protected cost management platform allows companies to assess, control, and reduce cost of goods sold by whole percentages. The aPriori Platform enables “Cost Knowledge Before it Matters.”

Thomas Cutler
http://www.articlesbase.com/technology-articles/tooling-magazine-profiles-apriori-ceo-frank-azzolino-89820.html

Governance

Governance is the buzz word these days – you hear of Enterprise Governance, IT Governance, Portfolio Governance, Program Governance, Project Governance, Data Governance, SOA Governance and the list goes on.

What is Governance?
There is no standard universally accepted definition for IT Governance.
We would define governance as a set of protocols, procedures, best practices and guidelines that can be of assistance to make better decisions.

Portfolio Governance, Program Governance, Project Governance, Data Governance, SOA Governance and other IT related frameworks are closely tied with IT Governance and IT Governance is integral part of Enterprise Governance.

IT strategic governance is required to efficiently manage IT investments. IT strategic frameworks like COBIT and ITIL provide guidance to improve accountability and delivery of IT investments (Programs, Projects, Services and Resources).

Strategic Governance has become more critical in the new age of globalization and corporate scandals. We need to consider business IT alignment, new regulatory requirements to support executive management and clearly connect the strategic plans to governance processes.

IT departments need to create a strategic plan that describes the mission, vision, goals, priorities, strategies, measures and technologies covering all aspects of IT Department. IT strategic plan is usually derived from the supporting department’s strategic plans.

Balanced Scorecard:

Developed by Kaplan, a Harvard Business School professor of accounting and Norton, president of Renaissance Solutions, Balanced scorecard is a strategic planning and performance management framework that enables measurement and translation of strategy into financial and non-financial factors.

Balanced scorecard translates the organizations strategy into four perspectives

Financial Performance, Customer Knowledge, Internal Business Processes and Learning & Growth.

What is CobiT:

Control Objectives for Information Technology (CobiT) is a set of standards for guiding management in the sound use of information technology published by Information Systems Audit and Control Association (ISACA) and and the IT Governance Institute (ITGI)

CobiT4.1 has 34 high level processes that cover 210 control objectives categorized in four domains: Planning and Organization, Acquisition and Implementation, Delivery and Support, and Monitoring.

What is ITIL:

ITIL(the IT Infrastructure Library ) is the most widely accepted approach to IT service management in the world.The ‘IT Infrastructure Library’ was originally created by the United Kingdom Government.

ITIL version 3 release has a significant change of framework from the previous emphasis on IT process to a total lifecycle approach (Service Strategy, Service Design, Service Transition, Service Transition and Continual Service Improvement).

Portfolio Governance:

Portfolio Governance defines the processes and procedures for the management of IT Portfolio ( Programs, Projects and Tasks).
Portfolio Management is the key for IT Governance since it covers the planning and management of total IT investments.

Assign PMO irrespective of the type (Centralized PMO, Consulting PMO or Blended PMO) with Portfolio Management would create a IT value governance structure that can reap huge benifits to the organiation.

IT Portfolio usually created from the business strategies will need to be supported by PMO to standardize and govern the programs and projects in the approved portfolio providing a full value governance flow for IT investment.

Program Management Standard / Managing Successful Programs (MSP)

Standard for Program Management is a collection of five process groups and the program life cycle practices published by Project Management Institute(PMI).

Process Groups Are

1. Initiating Process Group,

2. Planning Process Group,

3. Executing Process Group,

4. Monitoring & Controlling Process Group

5. Closing Process Group.

Program lifecycle includues the following

1. Pre Program Setup

2. Program Setup

3. Establish Program Managment

4. Deliver Benifits

5. Close Program

MSP (Managing Successful Programs) is a framework for program management ublished by the Central Computer and Telecommunications Agency (CCTA) now part of the Office of Government Commerce (OGC). MSP is widely recognised and popular in Europe

MSP Process are

1. Identify Program

2. Define Program

3. Govern Program

4. Manage Portfolio

5. Manage Benifits

6. Close Program

PMBOK / PRINCE2:

PMBOK – Project Management Body Of Knowledge is a collection of five process groups and nine knowledge areas for effective project management best practices published by Project Management Institute(PMI). PMBOK is widely recognised and popular in North America.

Process Groups are Initiating, Planning, Executing, Monitoring & Controlling and Closing.

Knowledge Areas Are:

1. Project Integration Management

2. Project Scope Management

3. Project Time Management

4. Project Cost Management

5. Project Quality Management

6. Project Human Resource Management

7. Project Communications Management

8. Project Risk Management

9. Project Procurement Management

PRINCE2 (Projects IN Controlled Environment) is a process-based method with eight processes and four phases for effective project management developed by the Central Computer and Telecommunications Agency (CCTA) now part of the Office of Government Commerce (OGC). PRINCE2 is widely recognized and popular in Europe

Process Groups Are

1. Planning

2. Starting up a project

3. Initiating a project

4. Controlling a stage

5. Managing product delivery

6. Managing stage boundaries

7. Closing a project

   Process Phases Are: Starting a project, Initiating a project,  Implementing a project, and Closing a project.

Please refer to the other articles from www.governancetraining.com to understand IT governance and advance your career by appropriate governance certifications.

BTG

aPriori’s “True Cost Convergence” allows cost targets to be achieved at product launch resulting in faster time to profit. The aPriori v4.0 Cost Management Software Platform provides real-time, predictive cost assessments throughout the entire product development and delivery process. aPriori v4.0 enables designers and engineers, manufacturing engineers and planners, purchasing and sourcing professionals, cost managers, and program/project management to make better decisions to reduce, avoid, and recover product costs. aPriori’s solutions enable manufacturing companies to measurably reduce their Costs-of-Goods Sold (COGS) by whole percentages by identifying quantifiable savings in material, tooling, labor and overhead while evaluating alternative designs, manufacturing processes, and vendor sources.

According to Frank Azzolino, president of aPriori Technologies, “As important cost impacting decisions are made throughout the product development and delivery process, cost assessments must converge on the ‘true cost’ of the product. This means constantly available cost information with continuously improving cost accuracy and smooth convergence to true cost. Traditional processes offer periodic cost updates resulting in the late, and often unexpected, realization of missed cost targets.”
Single Cost Management Software Platform

Cost relevant data and the application to create, manage and share that data must be available in a single platform. aPriori offers a single environment based on industry standard technology and architecture.

Based in Concord, MA, aPriori is the technology leader providing innovative cost management solutions to the discrete manufacturing industry. aPriori’s Cost Management Software Platform enables manufacturers to better understand product cost decisions early and throughout the product lifecycle. aPriori’s Cost Management Platform empowers manufacturers to lower cost-of-goods sold (COGS), provides real-time visibility to “cost-critical” decision information, and builds critical cost knowledge to go on the business “offensive.” aPriori’s patented cost management platform allows companies to assess, control, and reduce cost of goods sold by whole percentages. The aPriori Platform truly enables “Cost Knowledge Before it Matters.”

“aPriori has customers in a variety of industries including High Technology, Industrial Equipment, Automotive, and Heavy Machinery. Recent customers include John Deere, Panasonic, Thomas & Betts, Flextronics, JLG, and Dana Corporation.”

Thomas Cutler
http://www.articlesbase.com/business-articles/cost-convergence-drives-product-launch-and-faster-time-to-profit-61976.html

Based in Concord, MA, aPriori is the technology leader providing innovative cost management solutions to the discrete manufacturing industry. aPriori’s Cost Management Software Platform enables manufacturers to better understand product cost decisions early and throughout the product lifecycle. aPriori’s Cost Management Platform empowers manufacturers to lower cost-of-goods sold (COGS), provides real-time visibility to “cost-critical” decision information, and builds critical cost knowledge to go on the business “offensive.” aPriori’s patent-protected cost management platform allows companies to assess, control, and reduce cost of goods sold by whole percentages. The aPriori Platform enables “Cost Knowledge Before it Matters.”

In the September 2006 issue of Manufacturing.net, http://www.manufacturing.net/article/CA6372636.html, manufacturing journalist, Thomas R. Cutler profiles aPriori’s cost management platform for Engineer-to-Order manufacturers. According to Cutler, “ETO companies must be able to provide accurate cost estimates to customers, manage all aspects of complex projects, and deliver on time and on budget all while keeping a close eye on cash flow. There is intense pressure to reduce costs and shorten cycle times, while maintaining high quality.

Finally, ETO manufacturers need an accurate picture of the profitability of each project in order to comprehend the impact on the business. Nowhere are these unique process distinctions (versus those characteristics of repetitive manufacturing) more evident than among manufacturers of conveying equipment.”

Cost of Goods Sold (COGS) has become an increasingly important metric as the largest expense item on the income statement; typically 70% to 90% of revenue. Manufacturers are forced to focus on product cost and profit margins with renewed vigor. Cost targets, an important component of design-to-cost strategies, are now being defined early and with greater granularity, even down to the individual component level. Meeting these detailed cost targets at product launch (avoiding expensive, lengthy post-production cost reduction phases) is a new challenge and manufacturers are struggling to find effective systems or tools to assist in this effort. A Cost Management (CM) platform, such as that developed by aPriori, can help manufacturers address the challenges in New Product Introduction (NPI) programs.

In the ETO environment, there are currently two choices for developing business bid aggressively to win the deal and accept the risk of very low (or negative) margins, or bid conservatively to account for the risk of not fully understanding the impact of the customer’s choices on cost, and risk not getting the deal.

According to Frank Azzolino, CEO of aPriori Technologies, a provider of cost management software for the discrete manufacturing industry, “With ETO operations the key is to get it right the first time, since there is often no long production cycle in which to redesign and get the product and cost right over a period of time.

“It is critical to know the costs before bidding the job thereby preserving margins while more effectively managing risk. Ideally, as early as the sales and marketing departments know the cost of a project, so should the engineering and production departments of ETO operations. This drives margin,” said Azzolino.

Thomas Cutler
http://www.articlesbase.com/business-articles/eto-cost-management-platform-profiled-by-manufacturing-journalist-thomas-r-cutler-67655.html

Computer manufacturers are feeling enormous pressure to present cutting edge products to the public. Even when the latest and greatest hits the shelves (preferably before competing products), new problems can present themselves. One of the biggest issues in terms of asset returns management is regarding the placement of older technology. Sharing shelf space with newer models is not typically considered an ideal situation. This means that, as technological advances are introduced to the market, manufacturers are then stuck with older technology, discontinued products and outdated accessories. In an effort to solve the problem that short IT product lifecycles present, many major manufacturers are actively taking part in growing and shaping a secondary market with partner programs.

There are partner programs in place within the computer technology and equipment industry, designed to offset the increasingly short lifecycle of products. When computer equipment manufacturers initiate partner programs with qualified resellers, the lifecycles of manufacturer products can be extended by as much as triple the length of its original lifecycle within the primary market. This has serious positive impact for those in charge of asset returns management for their business. In other words, the end user is not the only party that will be positively impacted by the implementation of partner programs. Manufacturers, leasing or financing companies, computer distributers, system integrators, and most any organization within the private and public sector can realize a better rate of return on technology investments through partner programs.

Reselling partners within the computer secondary market obtain a vast array of technology from various sources. Among their purchases are surplus or overstocked goods, discontinued computer equipment, off-lease items, refurbished technology, and customer returns. All of these items are undesirable and unpractical for manufacturers to keep on their shelves, but they still see the value in keeping the items on the market. That is why computer technology manufactures will initiate partner programs with certain reputable global resellers.

If your organization is like most others, you are facing the challenges of asset returns management, the short lifecycle and subsequent termination of assets. As such, you are likely considering instigating or becoming a part of one or several technology partnership programs. As manufacturer participating in partner programs you can expect to achieve a longer lifecycle for otherwise obsolete computer products without compromising the consumer’s interest in your new product introduction plans. As an added bonus, your organizations will be able to retain positive business relationships and feelings with existing clients have made significant investments in your technology and products and who are not ready to invest in an entirely new technology simply because they are in need of a few upgrades, accessories or additional computer.

Initiating partner programs with resellers will help better handle asset returns management will assist in meeting and surpassing inventory objectives as well as achieve market value for older or surplus technology and equipment. Resellers will generally take control of unwanted inventory quickly and efficiently and assist you in providing an ongoing supply and support to consumers through a diverse range of channels and connections. In doing so, resellers will ensure that you will be able to bring out new technology without liquidating older products, affecting brand integrity, or compromising the introduction of your new products.

Partnership programs do not only assist manufacturers with asset returns management, they will benefit end users as well. It truly is a win-win situation for everyone involved.

Jane Fields
http://www.articlesbase.com/computers-articles/partner-programs-for-better-returns-on-technology-management-702071.html