Closed Loop Supplier Collaboration At Mercury Marine


Closed Loop Supplier CollaborationAt Mercury MarinePLM Road Map North America 2018Charting the Course to PLM Value TogetherMay 15-16 Tysons Corner, VAMercury Digital Services

Mercury MarineØ 1939 founded in Cedarburg, WI asKiekhaefer CorporationØ 1961 acquired by BrunswickØ 2.6 billion in revenue in 2017(Brunswick parent 4.5 billion)Ø 6,000 employeesØ Strategic segments§ Outboard Engines§ Inboard, Sterndrives and Jet Drive Engines§ Racing High-Performance Outboards andSterndrives§ Rigid Inflatable and Inflatable Boats§ Mercury Smart Craft Electronics§ Engine Parts and Accessories§ Mercury Digital Services

Mercury Marine OperationsKomagane JapanFond du Lac WisconsinTMC Joint VentureOutboard 2.5-30hpOpened 2005300k sq ftMercury HeadquartersMercury AssemblyPlant 15Outboard 2SOutboard 4S 75hp MerCruiser engines & drivesMercury CastingPlant 17Suzhou ChinaOutboard 4-stroke40-60hpOpened 2005150k sq ftMercury MachiningPlant 4Mercury P&APlant 3Mercury RacingPlant 36Juarez MexicoPlant 22 WireHarnessSt. Cloud FloridaElectrical & PlasticAssemblies

Product Development Tools at Mercury MarineCAD Applications & Viz tools in use:Ø Creo MCADØ Teamcenter Integration with Creo (IPEM)Ø KeyshotØ CortonaPLM Applications in use:Ø Teamcenter FoundationØ Teamcenter ClassificationØ Teamcenter Change ManagementØ Teamcenter VisualizationØ Teamcenter Multi SiteØ Supplier Relationship ManagementDigital Solutions in useØ Parts Planning Application (PLM – ERP Tracker)Ø Test Request SystemØ Engineering Knowledge Base

Mercury Digital Services & SolutionsConsulting Practice Founded in 2009Industries served include:§Aerospace, Defense, IndustrialMachinery, Automotive Supply,Medical Devices, DiversifiedManufacturing, Consumer DurablesDigital Services include:§PLM assessments/Digital Transformationroadmaps§Business process & value streammapping workshops§Project management, Requirementsdevelopment, Test script development &validation§Teamcenter architecture, hardwaresizing, installation, configuration,workflows, customizations§CAD to PLM to ERP system integration(IPEM, T4S, T4O, T4EA)§Data migration services§Teamcenter upgrades – ActiveWorkspace (usability)Digital Solutions include:§§§Parts Planning Application (PLM –ERP Tracker)Test Request SystemEngineering Knowledge Portal§Lab Test Management System§Workflow Analysis Tool§Training materials creation and delivery§Teamcenter to SharePoint (Tc2SP)§Teamcenter Help Desk servicesZone SI Partner

Three Business Value LeversDelivering innovation to drive growth, consistentlyDrive InnovationConcept toProduction tionin the ValueChainSpeed toMarketEarly SupplierInvolvementEarly supplier collaboration as a toolfor innovation supportingco-design and co-developmentDeliver realizedconcepts tocustomersSpeed toMarketComplianceBe The BestPartner

Business Challenges§ Manufacturing of components requires EarlySupplier Involvement§ IP Protection & Traceability§ Commercial tie-in to correct, current revision§ Effective Change Control§ Sourcing IntegrationKey Objective:Increase the throughput of early supplierinvolvement for improved costs andcapabilities.


Mercury Sourcing TransformationTechnology-enabled SourcingüüüüüüüDataExchangeDirect MaterialSourcingOEMStandardized global sourcing processDirectly integrated with PLM systemSourcing process tied to latest design dataReal-time collaborationWorkflow, signoff drivenTransparency & TraceabilityVendor ManagementSUPPLIERMultiple fragmented systems & sourcing processFTP method for transferring dataNo tie in to correct cad versionsLack of formal/standard sourcing processEmails, FTP methods for requesting, communicating, decision makingNo Audit Trail , IP Leakage

Supplier Collaboration Sourcing ProcessEngineer§ EngineerInitiatesSourcing NGINFO/CAD DATASupplier§ Review bid package§ Complete response§ Submit bid§ Review the New Partrequirements§ Assign suppliers to respond§ Invite suppliers to bidProcurementCommodityManagerDirectorVPPUBLISH QUOTEBuyer§ Analyze Bids§ Make sourcing decision§ Publish to Teamcenter§ Review quote§ Approve the SupplierAwardSupplier Collaboration FoundationIntegration FrameworkPLM FoundationSCF – e-Sourcing Web Portal

The First Three YearsY1DefinedsourcingbusinessProcessBusiness WorkshopsDefine requirements & use casesDefine To Be Sourcing ProcessY2Ensure teamswere aligned,deployed POCConference Room PilotProof Of Concept DeploymentRefine use cases & system designY3Productiondeployment &focus onboardingUser Acceptance TestProduction DeploymentTrain Internal usersExternal Supplier Training

SRM Design Data Exchange – Business OutcomesSecure method ofdata exchangeAccess to latest &correct set ofdesign data IP protection Improved quality Robust & traceableprocess Eliminate datainaccuracies Eliminate FTP &Emails Version control –save on toolingscrap & waste cyclesEfficient methodsto track suppliersand supplier data Objective evidencefor audit purpose Reporting &transparencyEarly supplierinvolvement Prove out design ,early identification ofdesigns that are notfeasible Understand costdrivers early in theprocess Accelerates productdevelopment cycle

SRM Direct Material Sourcing - Business OutcomesEffectively managesupplier quotesElectronic signoffs Cycle time reduction Global sourcing process Traceability Supplier transaction history &tracking report Eliminate email and verbalrequests for quote Supplier bid comparison Project award routing forcross-functional signoffsTrack Metrics Part Level Target costs vs.Actual production costs Sourcing process responsetime

ü Decrease new product introduction coststo meet program commitmentsü Product leadership in global marketsthrough innovative co-design and codevelopment with suppliers across fourcontinentsü Realize faster time-to-market withexpectation to cut product sourcingcycle times by 15 to 20 percent


Mercury Marine Operations Suzhou China Outboard 4-stroke 40-60hp Opened 2005 150k sq ft Komagane Japan TMC Joint Venture Outboard 2.5-30hp Opened 2005 300k sq ft Juarez Mexico Plant 22 Wire Harness St. Cloud Florida Electrical & Plastic Assemblies Fond du Lac Wisconsin Mercury Headquarters Mercury Assembly Plant 15 Outboard 2S Outboard 4S 75hp