RIBE Power Malaysia Sdn. Bhd.

No.32, Jalan TPP 6/3,

Taman Perindustrian Puchong,
47100 Puchong, Selangor, Malaysia.

PROPOSAL FOR CAD & PRODUCT DATA

MANAGEMENT SOFTWARE (PDM)
TOWARDS EXCELLENT PRACTICE OF
PRODUCT LIFE-CYCLE MANAGEMENT
SYSTEM

5 th September 2016

Approved by:
..
Latif Lehan

Prepared by:

Reviewed by:

..
Hirmanto Suib

..
Pak Yih Horng
1

RIBE Power Malaysia Sdn. Bhd .

No.32, Jalan TPP 6/3, Taman Perindustrian Puchong,
47100 Puchong, Selangor, Malaysia.

Supported with:

..
Azrin Sukiran

...
Ahmad Anuar

Asyraf Mazlan

..
Irmanory

...
Syauqi

Mokhlis Abd Sani

RIBE Power Malaysia Sdn. Bhd .

No.32, Jalan TPP 6/3, Taman Perindustrian Puchong,
47100 Puchong, Selangor, Malaysia.

Abstract

SolidWorks EPDM was

RPM Engineering Team currently are

expanding

their

capabilities,

capacities & productivity in order to

helping

fulfill the positive grown of RPM

design changes.

revenue which is almost double from

us

manage

Mr.Sivakumar Head Engineering of

2014 & 2015 achievement. Hence,

this proposal raises most of the
obstacles faced by the Engineering

Team, either in the past or the present and proposes some countermeasures
in order to overcome the problems. From the discussion and review made base
on the selection criteria, the team agreed that by re-subscribing to SolidWorks,
and adding new subscription of Product Data Management software provided
by SolidWorks Enterprise PDM we could overcome all the obstacle stated in
this proposal, and ensure the implementation of ISO 9001:2015 for Design &
Development Procedure more synchronize and manageable with paper -less
system. In addition, we have prepared the necessary investment which
required top management approval, including re-subscription cost for
SolidWorks, new desktop workstation with SolidWorks Standard subscription,
upgrading cost for existing desktop workstation, subscription of new
SolidWorks

Enterprise

PDM

Professional

implementation cost, and other cost involved.

for

licenses,

standard

RIBE Power Malaysia Sdn. Bhd .

No.32, Jalan TPP 6/3, Taman Perindustrian Puchong,
47100 Puchong, Selangor, Malaysia.

The Obstacles
1. Lack of drawing revision control would cause the Production Engineer
access the wrong drawing.
2. inability to access SolidWorks files shared from RIBE Germany cause
time wasting as we need to re-draw again. (Germany using SolidWorks
latest version, hence ours SolidWorks 2013 cant access their files.)
3. Several costly mistake happened during design & development stage .
(exp.; Philippines & Vietnam)
4. Accidently overwrite drawing files when using Dropbox, which cant
control files overwriting.
5. Mixing drawing files format in AutoCAD & SolidWorks cause catastrophic
mistake and confusion when choosing which files need to be used.
6. Most of the Engineering Team still confuse/neglect/unaware on the
Design & Development Process Flow, cause some process such as
check, review, & approval accidently being skip inadvertently until
something bad happened.

Its been 6 years and 20 license,

user friendly & easy to manage.
Mr. Sum IT Manager of TEKNICAST SDN BHD

RIBE Power Malaysia Sdn. Bhd .

No.32, Jalan TPP 6/3, Taman Perindustrian Puchong,
47100 Puchong, Selangor, Malaysia.

Dreams Come True

1. To have better revision control on drawing and eliminate Production
Engineer accessing the wrong drawing.
2. To be able to access SolidWorks files shared from RIBE Germany and
increase Engineering Team productivity by eliminating unnecessary
process of re-drawing 3D model.
3. To avoid probability of the costly mistake from happening as much as
possible.
4. To propose SolidWorks EPDM as the mechanism to gain better control
over Design & Development Process and Data Management.
5. To re-construct the Design & Development procedure and implement it
in the PDM software to void accidently skipped process, and only
authorize personnel can by-pass the process in the case of special
condition project.

Justification
Selection Criteria
Before this proposal was issue, the Engineering Team had discussed and came
out with all the criteria required for the software and weighted each c riterion
from 1 to 5 which explain the rate of importance for each criterion, for example
users friendly, subscription cost, after-sales service, & etc. You can find more
information about the selection criteria in the attachment of this proposal.

RIBE Power Malaysia Sdn. Bhd .

No.32, Jalan TPP 6/3, Taman Perindustrian Puchong,
47100 Puchong, Selangor, Malaysia.

Total Cost Involved

The one-off investment that required for this proposal are summaries as
below: 3D SolidW orks Cost for 3 licenses
Total Back-dating fee for 2 licenses
New 1 x Desktop Workstation
New 1 x SolidWorks Standard

RM38,939
RM 6,500
RM30,750

SolidWorks Enterprise PDM Cost for 3 licenses

Upgrading existing desktop workstation
3 x SolidWorks EPDM
EPDM Implementation cost
TOTAL ONE-OFF COST

RM 2,000
RM31,303
RM 3,000
RM114,492

There are additional costs will for the next consecutive year (subscription
cost per year) as summaries below: 3D SolidW orks Subscription Cost per Year for 3 licenses
2 x SolidWorks Standard Subscription/Years
RM6,150
1 x SolidWorks Premium Subscription/Years
RM9,225
SolidWorks Enterprise PDM Subscription Cost per Year for 3 licenses
3 x SolidWorks EPDM Subscription/Years
RM7,825
TOTAL YEARLY COST
RM23,200

Implementation Time over Cost

Due to the high amount of cost involved, we had divided the implementation
into 3 different stages, starting with the most critical which required immediate
implementation: Stage 1

Implementation: September 2016

Description of implementation
3D SolidW orks Back-dating fee for 2 licenses
TOTAL COST FOR STAGE 1
Stage 2

RM38,939
RM38,939

Implementation: October 2016

Description of implementation
Upgrading existing desktop workstation
3 x SolidWorks EPDM
EPDM Implementation cost
TOTAL COST FOR STAGE 2
4

RM 2,000
RM31,303
RM 3,000
RM36,303

RIBE Power Malaysia Sdn. Bhd .

No.32, Jalan TPP 6/3, Taman Perindustrian Puchong,
47100 Puchong, Selangor, Malaysia.

Stage 3

Implementation: December 2016 / January 2017

Description of implementation
New 1 x Desktop Workstation
New 1 x SolidWorks Standard
TOTAL COST FOR STAGE 3

RM 6,500
RM30,750
RM37,250

All this 3 stages are expected to be complete by January 2017, so we could be

ready for the implementation of Design & Development Procedure that will be
included under ISO 9001:2016 and planned to be audited on March 2017 .
In the case that the management have an enough budget for one-time
implementation cost, we highly recommend that the implementation should be
complete at least by the end of year 2016.
Be noted that the Back-dating fee for SolidWorks in this proposal are based on
the 3 different stages implementation. Dragging the fee can cause it to increase
as the fee is calculated on monthly basis from the expired date of the
subscription.

Value-added
The SolidWorks Subscription Service Program gives us immediate access to
new SolidWorks releases and upgrades, enhancement request privileges, live
technical support, and comprehensive online resources to help us get the most
from our 3D design experience.

Return of Investment, Cost Saving, & Productivities

The graph below represents the overtime cost for engineering department in
2016 and the forecast for the next quarter of 2016. The graph showed an
increasing trend from month-to-month and expected total of RM6,430 overtime
cost for 2016 year.
Current monthly utilization of man-power in design & development of only 67%
and balance of 33% of work need to be done during over -time.
Current utilization = 2 License / 3 users (Engineer) x 100% = 67%
5

RIBE Power Malaysia Sdn. Bhd .

No.32, Jalan TPP 6/3, Taman Perindustrian Puchong,
47100 Puchong, Selangor, Malaysia.

Engineering Overtime Cost for 2016

1400

Forecast for 4th

Quarter of 2016

1200

COST, RM

1000
800
600
400
200
0
Jan

Feb

Mac

Apr

Mei

Engineering Overtime Cost 2016

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2 per. Mov. Avg. (Engineering Overtime Cost 2016)

Let estimate the total cost for 3 Engineer salary per month will be approximately
RM9,500 and considering only 67% of utilizing the man-power, RPM can save
more than RM3,135 per month that will result RM37,620 a year of cost saving.

Return of Invesment, RoI

160,000
Break-even point

140,000
120,000

RM

100,000
80,000
60,000
40,000
20,000
0

2016

2017

2018

2019

YEAR
Invesment Cost

Cumulative Cost of Saving

In year 2015, RPM have facing total of RM150,000 cost of mistake in

Philippines Project and in early 2016, we have make RM 20,000 cost of mistake
6

RIBE Power Malaysia Sdn. Bhd .

No.32, Jalan TPP 6/3, Taman Perindustrian Puchong,
47100 Puchong, Selangor, Malaysia.

in our first Vietnam Project. If the probability in current process control for
design & development produce mistake 1 over 20 new project or 0.05, by
automated the process with SolidWork EPDM or others data management
software can reduce up to 50% which will result 0.025 probability of mistake or
5 over 200 new project.
Assuming that on average RPM will have total of 20 project per annum and 1
mistake will cost approximately RM20,000, its is possible to have cost saving
of RM10,000 per years by proper controlling the design & development process
using automated system software to eliminated human-error in design
changes, review, checked, & validation process.
If the prediction is correct, the investment of this proposal will be return in 1st
quarter of 2019 which is less than 2.5 years form the propose implementation
date.

Other Alternatives
We have been considering 3 different PDM software provider including
Autodesk Vault, SolidWorks EPDM and Siemens Team-center but only
Autodesk & SolidWorks have given feedback for our enquiries. However,
during the preparation of this proposal, Siemens Team-center representative
suddenly started approaching us.
Due to the Siemens well-known powerful software provider based on my study
& review, as alternative we should be considering Siemens Team-center as our
second choice based on below reason: 1. Siemens Team-center is not just PDM but covered the one-stop solution
for Product File-cycle Management including PDM (Product Data
Management) & MOM (Manufacturing Operations Management).
2. Siemens Team-center is scalable/expendable based on our current
need. You can start with PDM on the first stage of implementation and
MOM will be the next in-order to achieve total Product Life Cycle
Management.
7

RIBE Power Malaysia Sdn. Bhd .

No.32, Jalan TPP 6/3, Taman Perindustrian Puchong,
47100 Puchong, Selangor, Malaysia.

However, the cost for this Siemens Team-center PDM are not available for
comparison as the Siemens has only approach us this week during the
preparation of this proposal.

Summary
1. Engineering Change Management is crucial and with a massive project
running in parallel, there are probability of human error in controlling the
processes.
2. An automated system need to be implemented to reduce human error
and

to

avoid

unauthorized

approval

process

during

design

&

development stages.
3. Product Data Management is a well-known system that help organize,
control, and traceable all the activities in design & development such as
revision control, design changes, engineering bill of materials and design
validation. The SolidWorks Enterprise PDM is able to provide all of the
solution required.
4. Re-subscription cost for 2 license of SolidWorks 3D is RM38,939 that
required immediate implementation as proposed in the first stage on
September 2016.
5. The second stage of implementation with the cost of RM36,303 for 3
license of SolidWorks EPDM, expected to be achieved on October 2016
together with the Design & Development Process that will be include in
the ISO 9001 RPM Qualities Manual.
6. To fulfill utilized the man-power in design & development process,
standalone workstation with SolidWorks 3D is required. This will
increase the Engineering Department productivities in design pro cess by
33% as currently we only utilize 66% of the total 3 design engineers.
7. Return of investment in less than 2.5 years with cost of saving expected
around RM47,620 every year.