Global Design Centers

8/6/2019 Global Design Centers

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Creating Centers for Sustainable

Global Engineering: Tap into new

levels of engineering and top talent

Bringing products to market faster at lower

Global Engineering Centers On Time, On Budget

by Senthil Kumar, Senior Partner & Vice-President of Operations



B a r r y - W e h m i l l e r I n t e r n a t i o n a l R e s o u r c e s

Barry-Wehmiller International Resources onGlobal Engineering Centers

Editorial contributions by Carrie WesselsGraphics by Carrie Wessels and Krishnakumar Krishnan

Introduction to Global Engineering Centers 3

What are Virtual GECs? 4

How do GECs help? 5

Benefits of GECs 6

Why Onsite/Offshore and Why India? 7

Roadmap to Creating Global Engineering Centers 8

GEC Engagement and Delivery Models 8

Proposed GEC Team Structure 12

GEC Stages of Engagement 14

Processes for Virtual GECs 17

Success Factors for Virtual GECs 21

Conclusion and the BWIR Value Proposition 23How to Get Started 24Why BWIR is the Right Partner for You? 27BWIR’s Key Differentiators 28

BWIR’s Engineering Contacts 29

Contents

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Introduction to Global Engineering Centers

From washing clothes to cleaning cars and from sourcing components to shipping missiles, outsourcing has become a part of everyday life. The concept of outsourcing is as old as the humancivilization. Today, globalization has further enhanced the integration of industries across variousgeographical locations.

With a greater level of standardization in manufacturing outsourcing, the confidence level amongmanufacturers towards outsourcing has rapidly increased. Further, the Information Technologyand Business Process Outsourcing industries have set international standards that can be used tobenchmark the services offered.

Due to the tremendous benefits gained by both developing and developed countries through thisconcept, outsourcing has become one of the key business strategies for overall improvement of

any organization. Proven processes, knowledgeable engineers and highly skilled designers haveattracted more manufacturing industries to extend their outsourcing activities ranging frommanufacturing to core engineering and support functions.

Engineering Services Outsourcing (ESO) has emerged as a major outsourcing initiative among theengineering and manufacturing segments. With the growth of reliable communication systemssuch as high speed internet, video conferencing, and data transfer techniques, working withcompanies around the world is no longer a barrier.

Barry-Wehmiller International Resources (BWIR), with over 120 years of engineering experienceand significant domain expertise in solving manufacturing challenges, has designed virtual GlobalEngineering Centers (GECs) as a solution for companies to increase productivity and bringproducts to market faster.

Introduction to Global Engineering Centers

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What are Virtual Global Engineering Centers?

For nearly two decades, many manufacturers have turnedto outsourcing key engineering services to benefit from itsadvantages such as reducing overall costs. Companies usethe following outsourcing approaches:

• Outsource to service companies on a project basis

• Create joint ventures with companies onsite andoffshore

• Develop engineering centers

• Apply Build ‐ Operate ‐ Transfer (BOT) business model

Although there are several approaches to outsourcing projects, many companies faced challengessuch as loss of intellectual property and control, limited flexibility with statutory andadministrative issues, and high costs in the transfer of resources and retaining talent.

As evident, each business approach has its own share of problems and limitations. To overcomethese challenges, Barry-Wehmiller International Resources (BWIR), a leading global business andtechnology solutions provider, recommends a virtual Global Engineering Center.

Created in 2001, these dedicated Global Engineering Centers were designed for executing specificengineering projects, sustaining engineering teams and product development activities forcompanies. These centers are set up by BWIR, but are controlled by the companies that utilizeoutsourcing. Basically, the centers are an extension of a company's engineering team that isoperated outside the organization. So the company in effect has its own engineering team withoutthe hassles of recruitment, human resources, administrative and statutory issues.

Introduction to Global Engineering Centers – What are Virtual GECs?




How do Global Engineering Centers help?

Manufacturers are facing the challenges of managing multiple functions during the product lifecycle. Some of the major functions include time to market, unique product features, identifyingnew technologies, optimizing manufacturing process, adhering to defined quality standards,logistics and customer service. Every activity in each function has its own cost factor andmanaging the cost within the budget to meet the organization's goal is a major challenge.

Any efficient business management process demands optimum managing time. Using the availablehours for productive tasks can be achieved by reducing or eliminating monotonous but necessarytasks. On an average, about 30‐40% of time in a product life cycle is spent in the engineeringsupport activities as highlighted in the figure above. This drastically reduces the time spent oncreating new concepts and new product developments that directly impacts revenue goals.

To add to that, the ineffective utilization of design engineers will result in the final product quality.So, to keep overall cost low, some companies added resources with relatively lesser experienceand qualification to execute these activities. But as the engineering support activities were notconsidered as regular tasks, the resources employed were underutilized and the utilization cost was not justifiable.

To maintain optimum cost while accomplishing every task, companies looked externally to

outsource all or specific engineering support activities. By utilizing a GEC, companies benefit fromthe following:

Improved controlLower costsSuperior trainingAvoiding intellectual property issuesFlexible engineering hours

Introduction to Global Engineering Centers – How do GECs help?




Benefits of Global Engineering Centers

Through the years, virtual GECs have proven to be a successfulbusiness model delivering long‐ term tangible operational and financialbenefits. Gaining a competitive advantage in the marketplace,effective resource management, strategic focus on core competenciesare some of the important benefits that manufacturers gain from suchcenters. Important benefits of having a virtual GEC are:

1. Embed your "DNA" in the GEC teamFor companies, having their “own” resources as provided in GECs is probably the singlemost important part of the "virtual" concept. The virtual concept allows companies to:

• Select your own team members• Integrate team members with employees•

Apply company rules, standards and culture

2. Enable rapid turn‐around of design projects Differential time zone provides extended "productive" working hours, availability of ateam working parallel to your engineering team enabling ‘round the clock’ service.

3. Instant r amp‐ up of resources to meet your requirementsA ramp-up of resources is similar to adding contract resources, but GEC costs are muchlower.

4. A seamless extension of your engineering teamBy continuous knowledge transfer and well designed projects during the ramp-upphase, companies gain highly talented pool of resources

5. Reduce your total turn around costAccessibility to engineers as equally talented as your own staff at lower hourly rates is astrategic move to reduce your engineering costs and take on more projects. During theprocess, companies reduce the product cost and gain competitive edge in the marketplace.

6. Utilizes offshore outsourcing as a transformational tool to obtain process excellence

As companies work globally on a distributed engineering model, processtransformation is a must. Generally, this leads to an improvement in the engineeringprocess.

7. Integrate offshore outsourcing into your overall organizational dynamicsOffshore outsourcing is a proven method for improvements in engineering processes.The virtual GEC allows you to integrate the benefits of offshore outsourcing withoutany political and cultural issues.

Introduction to Global Engineering Centers – Benefits of GECs

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Why Onsite/Offshore and Why India?

Over the years, many compelling business reasons have emerged fromoffshore outsourcing. Such reasons include:

1. Acquiring skills needed to fuel growthAlmost every company plans on growth. Many countries face ashortage of talented pool of resources and look to fill in the gaps.Growth also means penetrating global markets. China and India aretwo of the fastest growing markets equipped with talented resources.

2. Global resource model ‐ searching globall y for top talentTo cater to customers worldwide, companies explore globally for the most talentedprofessionals best suited for the job.

3. Turn ‐around strategy for a troubled companyGenerally, companies who are experiencing challenging times look toeliminate huge investments, reduce costs and re‐organize resources.Outsourcing is one of the key strategies to reduce costs while stillmaintaining set goals.

4. A strategic focus on core competenciesMany companies focus strongly on core competencies while outsourcingnon-core engineering activities. This allows engineers to focus ondeveloping new concepts and designs that add tremendous value for theorganization.

5. Gaining a competitive advantage in the marketplaceCompanies utilize GECs to introduce products to the market faster at a much lower cost.Virtual GECs allow businesses to ramp up and ramp down without permanent added costs.

6. Flexible resource modelCompanies discover that GECs allow flexibility in handling various engineering activities.

Why India?The following advantages have made India a clear strategic initiative for many companies.

Value Proposition QualificationLower Cost Offers competitive labor costs in the worldTalent Pool Knowledgeable & skilled talent pool needed to support centers

Quality of TalentHas capable, multi‐skilled, English speaking talent pool capable of working withglobal companies

Supply Base Offers vibrant and expanding supply base to support centersGrowing Market Is one of the fastest growing markets in the worldGrowing Capacity Offers economic way of expanding technical capacityHigh Technology Offers team of professionals committed to continuous training

Introduction to Global Engineering Centers – Why Onsite/Offshore and Why India?

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Roadmap to Creating Global Engineering Centers

A good start for a virtual GEC begins with an overall understanding of the business needs of anorganization. This will help determine the most suitable GEC model for your businessrequirements.

GEC Engagement and Delivery ModelsGECs have flexible project execution and business models to address every business need. Basedon the type of business need and policies outlined by individual manufacturers, the GEC includesengagement models such as dedicated engineering center and build-operate-transfer models aswell as deliver models including an onsite model, offshore model, and hybrid model.

Engagement Models

Dedicated Engineering CenterA dedicated engineering center is an extension of the customer's engineering facility. Inthis model BWIR assigns resources, equipment and infrastructure exclusively for engagingthe customer. This model works for a pre‐determined period of time.

The customer can leverage the talent pool of BWIR, offshore experience and projectmanagement expertise. With the help of BWIR, customers define the team and havecomplete access and control of the team.

BWIR partners with the customer in replicating the design environments, training, andsetting up communications and security systems. Additionally, the integration of BWIR'sdevelopment processes with the customers’ processes ensures an efficient and seamlessextension of the customer's engineering team.

• Extension of customer's software engineering facility• Dedicated team, equipment & infrastructure• Best suits for Engineering Support activites and sourcing.

Dedicated Engineering Center

• Stepping stone to start the customer's own offshore subsidairy• Off-load obstacles such as legal, taxes, hiring and management

• Risk of execution is minimized, business partners can spend theirmoney on their core functions

Build-Operate-Transfer

Roadmap to Creating Global Engineering Centers – GEC Engagement and Delivery Models




Global Engineering Center Delivery Models

There are several options to meet customer requirements by implementing a combination of thefollowing open ended and flexible delivery models.

Onsite DeliveryBWIR recommends onsite delivery model for thoseprojects that needs a collaborative approach fordevelopment of products and machines. As theyrequire more client interaction, and on the shopexperience to witness the process, domain expertsfrom relevant areas of activities will be deployedonsite for entire or some duration of the project.

These domain experts who may also be well versed in Project Management activities will

understand and execute the projects with fewer or no support from the off shore team tocomplete the project within the schedule. The onsite delivery model saves client time fromrecruiting and training people every time they need such unique activities to perform.Unlike the offshore delivery model, clients get faster development with this model aspeople from both organizations can directly interact with each other.

Benefits of Onsite Delivery Model• Face‐to‐face interaction with customer • Quick access to project related information• Less chance of communication gap• Minimum alteration in later stages

Offshore Delivery Offshore delivery is ideal for projects with a detailed project plan. This may include regularrevision of manufacturing drawings, legacy conversion of CAD data and upgrades, detaileddrawings for new and redesigned components, reverse engineering of old components.Engineering activities that require more resources and can save a substantial amount of engineering cost and time demands this model.

Benefits of Offshore Delivery Model• Access to vast pool of highly experienced professionals

• Cost and potential time saving• Expand resources on demand and on need basis• Proven delivery model• Control on time and budgets• Provides 24 hour productivity due to time zone advantage





Hybrid Model The hybrid outsourcing model, also known as the dual‐ shore model, takes advantage of onsite and offshore services to deliver results to clients at reduced costs. Under the hybridmodel, a local team stationed onsite (at customer location) would manage the programmanagement office and handle issues such as requirements gathering and user interfacedevelopment.

The onsite team would control the defined portion of the project that required interactionwith the domain experts and design engineers. Meanwhile, the team based at the offshoredevelopment center would facilitate with the drafting, quality checking and technicalreviewing.

Benefits of Hybrid Model• Maximizes efficiency in resources• Lowers costs

• Enables the customer to interact with the offshoreteam through the onsite team; Provides 24 hourproductivity due to time zone advantage

• Combined advantages of onsite and offshoreservices

Offshore

Onsite

Hybrid





Proposed GEC Team Structure The structure of the team is directed by the type of work that is envisioned for the GEC. However,certain basic positions are required in every GEC and the following chart describes the GEC teamstructure and explains the various stages for developing a team over a period of time.

The team is comprised of various stake holders of the GEC including the Client Project Manager,BWIR Executive Partner, BWIR Project Manager, Project Leader and team members (designengineers with specific skills such as plastics engineer, mold and tool design, CAE engineer anddraftsmen). Based on the project needs, a domain expert/consultant will be brought in as a stakeholder for providing more value to the project. An Account Manager is also assigned to lead theproject and ensure efficient improvements.

The background of team members vary in types of expertise and experience. Team members willinclude experts in mold design, plastics design, tool design, analysis, fixtures design, and machinedesign, etc. depending on the type of work requested in the GEC.

Roadmap to Creating Global Engineering Centers – Proposed GEC Team Structure




Proposed GEC Team Structure Roles and Responsibilities

Roles ResponsibilitiesCustomers • Set overall strategic objectives

• Set work objectives• Provide the work inputs • Provide clarifications to BWIR’s queries, if any , on the inputs• Review the deliveries made from BWIR and provide timely feedback • Escalate and resolve issues• Provide customer feedback report on quarterly basis

BWIR Executive Leader • Responsible for contract negotiations, financial, and business issuesBWIR On-site Coordinator • Assist in setting work objectives

• Interact with customer resources for requirement s, clarification and updates• Provide first level support to the offshore team• Maintain the work log and ensure continuous work flow from both ends • Work along with the customer on prioritizing and provide timely updates to thecustomer and BWIR internal management

Account Manger • Work with customer to set overall strategic objectives

• Liaison with the customer and delivery team and ensure flow of informationand provide customer with feedback. Will also be responsible to ensure that invoices areraised and sent to customer as per the work log to ensure payment

Delivery Manager andPractice Heads

• Responsible for understanding the business needs of the customer andsuggesting suitable services• Ensure that customer gets the required output as per the agreed targets • The work done by the team wi ll be periodically reviewed ensuring that the teamfollows the systems and procedures to meet the metrics identified

Project Manager • Responsible for project management, customer interactions, business processknowledge, and quality assurance, progress monitoring and status reporting, proficiencyand usage of technology tools, ownership of the deliverables and schedule• This position would be at a senior level having 8‐10 years of experience

Technical Consultant • Responsible to ensure that the output are in line with the agreed standards(ANSI,ISO, DIN etc) and deviations and/or assumptions, if any, made duringexecution are captured in the delivery notes

Team Member • Experience of over 3 years with core competencies in software engineering andin development languages depending on the technology platform

Roadmap to Creating Global Engineering Centers – Proposed GEC Team Structure




GEC Stages of Engagement

The graphic below provides an overall picture of client engagement needs for setting up a GEC.Stages 1, 2, 3, and 4 are part of the critical phase. The mature phase begins in Stage 5.

Stage 1 (1st and 2nd months)The drafting stage involves a BWIR Project Manager and O n‐site C oordinator (Project Lead) towork initially at the customer facility in discussing the GEC methodology finalization. During thisdiscussion, BWIR will understand customers' business requirements, technical details on thedomain, design standards, manufacturing standards, drafting standards, identifying andquantifying volume and types of support activities. Additionally, team members will determineskill set requ ired by the team based on the customers’ needs.

Infrastructure Planning ‐ The infrastructure planning includes hardware, softwarerequirements, security details including virtual office setup, access rights, disaster recoveryand availability plan.

Resou rce Planning ‐ Included in the resource planning are technology, domain knowledge,quality check, documentation and overall project/program management requirements.

The planning in the first stage depends on clear objectives from the organization. Organizationswill address any concerns from developing a product to manufacturing. During this stage,requirements will be documented for planning a well-defined strategy towards meeting theorganization’s goals.

These objectives when identified and grouped become time and resource consuming, which couldresult in a loss of at least 25% of productivity time. The time could be utilized for numerousdevelopmental activities that can directly increase revenues.

Roadmap to Creating Global Engineering Centers – GEC Stages of Engagement




The Project Manager from BWIR will return to offshore at the end of the first month or the perioddefined between the customer and BWIR after completing the planning stage. The ProjectManager will then be involved with the customer in building the offshore team during theresource planning stage.

A minimum requirement of team members will be identified and grouped for the introduction atthe offshore site. The technical leads will return to the offshore site after completing the inductiontraining and documenting it for further training for the offshore team. The BWIR Account Managerwill then spend a couple of days initially to kick off this phase along with the team. His cost will beabsorbed by BWIR.

Stage 2 (3rd and 4th months)This stage is the initial GEC project kick‐off. The offshore team will star t working on projects thathave been identified in the previous phase. Each lead will train their resources and will report tothe Project Manager at the offshore site.

As part of the team building exercise, BWIR will assign one shadow resource for every fiveengineering resource to handle attrition and for supporting the ramp up process. The shadowresource will be available at 50% of the cost of the regular resource. Shadow resources canprogress to team member level and replaced by new shadow resources. During this phase, werecommend a visit from the customer ’s project team to the offshore facility for the formalintroduction to the team.

Stage 3 (5th to 12th months)This is the ramp‐ up and stabilizationstage. During this phase, the team willbe built around the design, support andtechnical review activities.

Continuous output will be monitoredfor performance and value additionthrough customer feedback andinternal management. Support will beprovided for the products and specsdeveloped by the BWIR team.





Stage 4 (2 and 3 years or multi-year contracts)As the relationship progresses, the current teamcan be ramped up, depending on the work loadand required skill set.

In this stage, BWIR will be working towardsgaining knowledge and experience in thecustomer products and services and will be in aposition to provide testing services for the newdeliverables through a dedicated QualityControl team.

This is a solid road map for success for both BWIR and the customer. During this phase, BWIR will

work towards building a relationship that will provide indirect (working with the customer supportgroup) support for the deliverables and services from offshore. This stage is a major milestone insustaining the relationship.

Stage 5 (4 years and beyond ormulti-year contacts)This stage is where the relationshipbetween BWIR and the customerhas matured and is open forcontract renewal and plans for thefuture.





Processes for Virtual GECs The art of managing an engineering team, miles away from your onsite locationposes its own challenges. Communicating the project needs, validating theproposal, transferring the project input data, communicating design intents,

design and manufacturing standards, conducting project status meetings,managing schedule deviation, and bringing the engineers up to speed forefficient and qualitative delivery makes the difference between success andfailure.

With decades of experience in managing engineering centers for various industries, BWIR hasproven, established processes and systems in place for delivering engineering support servicesfrom legacy conversion projects to full scale new product development and machine designprojects. The processes designed by BWIR begin from the customer's practices itself and mergeswith BWIR’s framework process .

Process Objective The process objective is to plan and monitor activities relating to the GEC and ensure that thedeliverables meet both functional and quality requirements. The process tries to define theknowledge areas, tools and techniques required to meet the stakeholder ’s requirements andexpectations.

This process is defined in terms of many components, into core processes and facilitatingprocesses. Each stage in the cycle above has been sub divided into activities and templates anddocuments on each sub-activity is provided to customers for capturing data into meaningfulinformation.

*Business Needs

*Business Objectives

*Project Identification*Process Inputs

*Project Initiation

*Kick-off Meeting

*Project Planning

*Project Execution

*Customer Feedback

*Business Meeting

Roadmap to Creating Global Engineering Centers – Processes for Virtual GECs

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A maintenance log is used to keep track of the requests. This log contains details such as theplanned start date, completion date, and the actual dates of when requests were completed. Thedocument shows customers the flow of activities and input and the output details, which shouldbe used for each activity while updating relevant ISO documents.

Major stake holders in the GEC cycle include the Account Manager, Delivery Manager/PracticeHeads, the Project managers and the Quality Manager. The project Management group ensuresthat the team adheres to the identified in the work flow and documents the work as required. Thequality management group conducts periodic internal ISO audits, in addition to the external auditto check for any discrepancies. Such discrepancies are resolved with corrective and preventiveaction which gets reviewed for its effectiveness in preventing repeat failures.

Starting key plans for a successful GEC:

• Project Process

• Communication Plan • Risk Mitigation Plan • Disaster Management Plan • Training Plan

Project Process Each project process is unique depending upon the type of services offerings chosen by thecustomer. BWIR has a generic project management process that begins with a projectinitiation stage followed by kick-off meeting, project planning, development strategy,communication plan, risk management etc. ending with project closure. This in turn issupported by the disaster management plan, risk mitigation plan, training anddevelopment.

Communication PlanWhat should be communicated to whom and how defines theoverall communication plan in a GEC. The mode of communicationand the time when the message should be delivered defines theimportance of the communication plan. Efficiency within acommunication plan depends on the following; identifying the stakeholders of the GEC in each project, performing status reviewmeetings, escalation mechanism at the time of schedule deviation,

identifying point of contact for the customer and BWIR, and access to any information

about the project.

At each stage of the GEC cycle, key stake holders such as the customer and vendor shouldshare information that is helpful for the success of the project. As one of thecommunication modes used in the GEC, Whizible is one project management tool thathelps stake holders obtain the right information at the right time in making faster, sounddecisions.


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Risk Mitigation Plan With vast experience in outsourcing, BWIR over a period of time hascompiled the risks that a typical off shoring project would gothrough. During the project planning stage, the Project Manager willidentify the relevant risks from a database for the GEC and willidentify a detailed plan for monitoring and mitigating risks.

• Any risk in a project shall be identified upfront and prioritized. Risk mitigation taskswould be executed during the project and risks will be re-evaluated at regularintervals.

• All the risk in a project shall be identified upfront and prioritized

• Risk mitigation tasks would be executed during the project and risks will bere‐evaluated at regular intervals

• Status of risks will be continuously tracked and reviewed using the monthlymilestone reporting mechanism

• The project plan will be updated regularly when a new risk is identified

• Maintain and update risk occurrence template and device configuration plan

Disaster Management PlanAny data regarding the project is protected under BWIR’s disaster management plan tohandle unforeseen disasters such as flooding, fire etc. Backup of data is conductedregularly. The plan includes daily full backup for 1 month, monthly back up for 13 years,and monthly back up for the fiscal year will be duplicated and stored in two locations for 7years.

Offsite StorageThe data that is backed up is stored at an offsite location for restoration in case of anyemergency.

Restoration TestingTo verify integrity of the backup, a restoration of data by selecting folders randomly from

various servers on a daily basis is performed periodically.


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Intellectual Property, Confidentiality and Security BWIR has stringent security procedures that ensure all confidential information is undermaximum control and protection including intellectual property and customer documents.The processes are referred to as associate centric process and access and data securityprocess. As an American owned company, we abide by US intellectual property laws andstatues, as well as European country laws and statues conformity and Asian laws.

At the associate centric process level, a service agreement and non-compete andconfidentiality agreement is signed while joining the services of BWIR. The access and datasecurity processes include:

• Regulated entry and exit of all the employees and visitors through facility usingelectronic swipe cards

• Daily paperwork shredding before disposal

• Customized control access system operated on thumb print impression for workarea that has been earmarked for the customer

• Heightened security to capture entry and exit of employees and materials throughsurveillance cameras and security guard

• Restricted login policy can be enforced for highly confidential projects allowing fullcontrol by project stake holders

• Smooth and safe transfer of data to customer through dedicated FTP and VPNfacilities

Training and Attrition Plan Training is considered one of the greatest added values forthe engineers dedicated in any GEC program. Continuousimprovement on the customer domain knowledge, tool,technologies and techniques are addressed during thetraining program.

From a 1 member team to a 2-5 member team, the knowledge transfers from 1 engineer to

the other team members through training sessions. Information regarding the client’s manufacturing processes, design standards; product knowledge, etc. will be documentedand archived in the files maintained by the assigned Project Manager.

In controlling and managing attrition, BWIR requires a legal agreement or bond from theengineer to stay with BWIR for a minimum of 2 years from the date of engagement at theclient's visit. Furthermore, BWIR will always have a backup resource referred to as theShadow Resource at no cost to the client.


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Success Factors for Virtual GECs

For more than 15 years, BWIR has formed GECunits for customers with varied businesscomplexities worldwide. The smallest has been1 dedicated resource to a team of over 75engineers. Irrespective of the size andcomplexity, the strategies to make the GECsuccessful are more or less common:

1. Making GEC Goals a High Executive PriorityThe most important success factor is to ensure that the GEC is assigned high executivepriority from both sides. It requires the approval of senior and operating management. Thisenables quick decisions, budgeting, and full cooperation from the operating team. For

example:

a. Emerson Corporation, Buehler Division ‐ Customer's Vice -President of Operationsbecame the Project Manager because he realized that this initiative was a keystrategy for their growth and success

b. MarquipWardUnited (MWU) ‐ Project champions were the product group headsand were actively involved in the GEC teams

2. Using Offshoring as a Transformational Tool to Achieve Process ExcellenceThe GEC provides a good opportunity to redefine processes. Normally, companies arecaught up with their day to day deliverables; it is difficult to have set processes that are upto date all the time. However, process is one of the keys to the success of a GEC. By usingoffshoring as an opportunity to set up processes and correct current processes is a greatway to achieve excellence in operational processes and meeting goals.

a. By rearranging certain processes, MWU was able to successfully outsourcemachine release order activity saving considerable amount of time and reducingcosts in manufacturing

b. Barry‐Wehmiller.com established environments that mirrored India ’s for better

quality in delivery

Roadmap to Creating Global Engineering Centers – Success Factors for Virtual GECs

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3. Continue to Build Internal CapabilitiesThrough the GEC, core teams are able to put in more time on domain and R&D issues. Thisshift in projects allows organizations to continue with regular work while also developing inother areas.

a) MWU engineers shifted focus to R&D, thus better utilizing their core skillsb) Barry‐Wehmiller.com progra mmers became customer support executives

4. Focused Internal CommunicationIt is important that organizations communicate the objectives of the GEC to any employeewho is involved with the projects. This ensures full cooperation and success in the overallproject results.

a) Focused internal communication includes benefits on offshoring, and how it affects the

organization’s team members, and the overall benefits for the organization

5. Identify and Mitigate RisksJust like with any other major project, risks and plans for mitigating them are identifiedduring the process. BWIR is experienced in identifying typical and general risks and canwork with your company in finding the right solution.

a) MWU brought many offshore engineers and trained them on the shop floor tounderstand the manufacturing process

b) BarryWehmiller.Com introduced an additional testing process to mitigate risks

Roadmap to Creating Global Engineering Centers – Success Factors for Virtual GECs




Conclusion and the BWIR Value Proposition

Starting a virtual GEC is a long term decision that will give your company strategic advantage overyour competitors. Some of the advantages include accelerated product time to market, flexibleengineering teams, significantly reduced costs and the ability to access superior engineering talentand expertise over a wide range of technical disciplines.

While the benefits of the GEC are well known and provided in this document, it is still a keydecision that will lead to big changes. The changes can lead to success for companies that engagein the process in a systematic way. The key, though, is choosing the right partner. The success of your GEC depends on choosing the right engineering center that has proven processes, bestpractices, and experienced team of professionals.

Conclusion and the BWIR Value Proposition




How to Get Started

Extensive research and article surveys reveal best practices for starting a virtual GEC. Deciding thecore objective strategies is probably your first step.

Having listed your company’s objectives, it is important to exploremethodologies to start your virtual GEC. Some commonly used modelsare the Evolutionary or "Cold Turkey" approaches.

“Evolutionary” A pproach -Initially the company starts outsourcinglow‐risk, low value‐addition and low‐complexity tasks. It will ensure quicksuccesses and gradually build on each success.

The "Cold Turkey" Approach ‐ This approach involves taking a big portionof the business, usually considered non-core activities, and having them

accomplished by an outsourcing vendor in a relatively short amount of time.

Our Recommendation- While both models have proved successful, we recommend theEvolutionary path for the companies in the mid‐market manufacturing segment .

Ford Case Study: While Barry‐Wehmiller G roup companies favor the Evolutionaryapproach, companies like Ford, TRW and GE have been successful with the "ColdTurkey" approach.

• Process focus now or later• Organize from a process standpoint as either a pre ‐requisite or the first step in

outsourcing

Our Recommendation: Choosing offshore work does require a process focus and it isclearly an advantage to set these processes upfront. One way to introduce process rigorinto the organization is by tapping into the expertise and the abilities of the vendor.

Toyota Case Study: Reasons for Toyota being successful in North America when theUS automakers were looking elsewhere was because of the famous ToyotaProduction System (TPS) that was perfected in Japan and implanted in NorthAmerican operations of Toyota.

• Supplementing existing resources or replacing resources• Choosing a model depends on business reasons for offshoring

Our Recommendation: This depends on the situation the company is in. However, mostcompanies have used the model for supplementing resources rather than replacing them.This is because a company usually cuts off or loses key resources during challenging times.The question is how to meet targets without adding resources and the choice is betweenadding them in through your own GEC or in-house.

How to Get Started

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Verigy Case Study: Because of an early decision to locate part of its engineeringoperations in India, Barry- Wehmiller never had to lay‐off employees due tooutsourcing. Verigy (US ‐ Semi Conductor Machines), Gleason (US ‐ Gear HobbingMachines), Renold (UK ‐ Transmission Equipment), CSI Packaging (The Netherlands‐Packaging Machinery) have all used offshore engineering to supplement resources.The typical outsourcing situation usually involves the vendor contracting all or someof the clients’ resources.

Narrowly Defined Role or Growing Role:Successful companies plan for the vendor tomove up the value chain as their knowledgeof the domain and business grows. Theconcept is that work of importance to thecompany is not finite even though the

resources are. In other words, if the vendoris capable of adding greater value, the client'sown employees can focus on higher‐leveltasks that further the goals of the company.

From pressures on rates and productivity,vendors approach challenges by steadilyclimbing the value chain and positioning theircompanies to charge higher rates in buildinga sustainable model.

Our Recommendation: Clearly the"Growing Role" is good for a long term partnership and is strongly recommended. Thisallows excellent flexibility among the GEC and your own team, which becomes crucialduring challenging times.

Marquip Case Study : Mar quip (US ‐ Custom Machinery) decided to optimize theirengineering teams through a GEC. During a downturn in the paper industry that ledthem to lose some of their senior engineers, they were able to quickly turn to theGEC for support at that level.

Rela tionship‐centric or Transactional: The focus of many companies and conferences on outsourcing is with governance andcontracts. While this is well deserved, it cannot take away the need to create a trustingrelationship between the two parties. Transactional relationships are possible when themain objective is mainly to handle pending projects.

How to Get Started




Our Recommendation: Again, while this decision depends on your initial objective, it isstrongly recommended that one adopts the "Relationship‐Centric" model. In any model,there has to be significant knowledge transfer and the time spent here will not be justifiedwith a transactional model.

PneumaticScaleAngelus Case Study : Because PneumaticScaleAngelus (US ‐Packaging) chose a relationship model, the GEC team was able to come up withsignificant automation programs and value addition that saved the companythousands of dollars.

How to Get Started




Why BWIR is the Right Partner for You?

BWIR is a fully owned subsidiary of Barry-Wehmiller, Inc., a champion of outsourcing, as featuredin an article "The Future of Outsourcing" in Business Week. BWIR was set up in 1994 as an offshoreengineering and information technologies center for the group companies of Barry-Wehmiller.Today BWIR continues to carry its best practices from the internal divisions to the external market.Over the last 14 years, BWIR has developed and implemented several successful virtual GECs thatcreated compelling results for our customers.

Partnering with BWIRBWIR has established virtual engineering centers for leading

manufacturers globally to address various issues from simpleCAD support to new product development.

The key advantage of partnering with BWIR for your engineering center is our experienceand relationship with our parent company, the Barry-Wehmiller Group, a global billionsupplier of advanced manufacturing solutions with over 50 locations worldwide.

A combination of best practices, uniquecommunication strategies, customizedtechnological tools, and experienced team of

professionals makes BWIR a right partner fordeveloping your own GEC.

Press: Business WeekBarry‐Wehmiller portrayed as a pioneer inoffshore outsourcing strategy

• January 30, 2006 feature story "TheFuture of Outsourcing"

• October 17, 2005 story "DesigningDream Machines in India"

Why BWIR is the Right Partner for You?

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BWIR’s Key Differentiators

• BWIR brings the best of both worlds ‐ thedependability of a global billion dollar companywith the benefits of distributed operations

• BWIR is an evolved offshore/onsite player‐ withover 15 years of experience with robust processesand fail‐proof infrastructure

• BWIR has experience with leading global companies

• BWIR possess a diverse skill set to meet all the varied requirements from legacy conversion tocomplex machine design and automation

• BWIR is already providing offshore product development and support services to manycustomers such as Polaris Inc., SolidWorks Inc., Renold, Havells‐Syvania and more with anindividualized offshore team structure and processes to realize their unique requirements andstandards

• We have a proven track record of exceedingcustomer expectations across a wide range of offerings, particularly for companies in the midmarket manufacturing segment

• ISO 9001:2000 certified, BWIR has systemsand procedures in place to deliver multipleservices to our customers. The lists of metricsidentified are continuously reviewed in themanagement review meeting on a monthly basisand actions are taken to ensure that they arerealized

• BWIR has in place a reliable and robust infrastructure containing hardware, software, powerbackup and leased line connectivity among many others, to ensure a smooth functioning of the offshore team. Back‐up is clearly identified to restore support in th e eventuality of any of the service failing to perform

• Functionally and technically certified consultants ensure they possess core skills to deliverresults, even in the most challenging environments

• Cultural blend ‐ we are an American company with offshore development centers in India andacross the globe.

BWIR’s Key Differentiators



BWIR’s Engineering Contacts

Jim Webb Senthil KumarVice-President & Senior Partner Vice-President & Senior PartnerGlobal Engineering Solutions Operations8020 Forsyth Blvd. MPL Silicon TowersSt. Louis, MO 63105 23-1/B3 Velachery Tambaram MainUSA Pallikaranai Chennai India 600 100(314) 862-8000 (011) 91 44 4390 [email protected] [email protected]

BWIR’s Engineering Contacts

mailto:[email protected]






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