Shoaib Hussain Sakib Mahmud Zakaria Moontaha Zafar

B16231060 B16231072 B16231056

Anika Rahman Labib Ahsan Rhythm

B16231014 B16231082
 CAD and system integration services

Improve the productivity of the designer

Improve the quality of design
Improve communications through documentation
Create a database for manufacturing
Computer-aided design (CAD)

Problems with the new PDM system

 Company Operations

Founding Beliefs Empowerment

• Partnership approach • Develop a knowledge base

• Family sense, ethical, • Make responsible
moral • Decision Making power
• Teamwork and cooperative

Factors for success

• Align employee incentives with the company – i.e. make them stockholders
• Commissions and bonuses linked directly to performance goals
• Atmosphere of friendliness and respect
• Training for all new employees
• Decentralize decision-making to empower employees
 Compensation System

3 categories of
compensation

Base salary Payments vary vastly

Commissions Sense of competition

Sales convert to payments
Bonuses
 Base salary

Same for every employee

Increased by some amount after 4 years

Gave employees enough security to stay in the job

 Commissions

Incentivized Customized

1 Sales Reps

2 Applications Engineers

3 Office Administrators

4 Specialists
 Bonuses

 Monthly bonus plans: 150 stock options were distributed to the one who booked the most business each month
within each group. 50 share options were kept for great ideas or suggestions among specialists and administration.

 Quarterly bonus plans: Available only for sales representatives and applications engineers, certain strategic areas
would be there in order to encourage sales.

 Annual bonus plans: Annual bonus plans took place over a greater time and so tended to be more customized that
other plans and awarded cash bonuses.
 Recent Development in Industries

Engineering Analysis tools:

 Detection of design flaws earlier and saving on costs of real testing

 Automation of the physical testing of parts created by CAD system
 Reduction in length of typical product design cycle.

Product Data Management:

 Improvement in company’s data management ability

 Storage of information of CAD documents in an organized manner like an electronic vault.
 This market is not yet really operational- companies are investing but no one yet earning.

 
 Recent Development in Industries

Visionary Design System

 Helping customers restructure their design process and get the most out of their CAD systems
 Strategy is to develop a long-term relationship with customers.
 Projects typically begin with development of customized CAD interface
 Coming Generation of Mechanical engineering process labeled vision by VDS founders.

HR Systems:

 Partnership approach
 Teamwork and cooperative spirit
 Family sense, ethics and morals
 Mission, Goals, Tactics and Objectives

 To provide customers with a new entrance for the CAD software.

 In order to help clients to use these tools. VDS provided both training and consulting. It was
done by evaluating company’s situation.

 Allows employees to be empowered, eg sales rep discretion over resources used to make a sale,
but keeps empowerment consistent with the mission of the company

 To customize company’s specific design.

 Four categories in document: Customer Goal, Employee Goal, Financial Goal, Technology
Goal, each discussed in terms of Goals, Tactics and Objectives. Each also had an action plan
with managers name next to it
 Empowerment

Developing a knowledge base in each employee of company, mission, goals and tactics, and plans that
enables them to take action and make decisions consistent with the company strategy and values.

 Decision-maker is the person with most knowledge about the issue

 Keeps company closer to customers
 Keeps employees happy
 No large decision-making hierarchies
 Empowerment

In order to let employees, make substantive decisions, management tried to align employee interests with those
of the firm. For that the methods include-

 Additional Stock options

 Atmosphere of friendliness and respect

To ensure that employees had sufficient information to make the “right decision” the followings are necessary-

 Training and education

 How to read a balance sheet and income statement
 Educational lectures and group discussions
Management not stepping in when they make mistakes
 Factors for Success

 Align employee incentives with the company, that is make them stockholders

 Commissions and bonuses linked directly to performance goals

 Atmosphere of friendliness and respect

 Training for all new employees: business fundamentals, products, industry overview.

 Decentralize decision-making to empower employees – make them not want to leave

 1.TheProduct Data Management took up almost all of the
Reasons for resources.
time and Failure:

2.The top management tailored the compensation and

incentive agenda keeping the staff of the organization during
the beginning.

3.There were issues with time due to the anticipation of

VDS.

4..The sales was rather unsatisfactory from the very

introduction.

5.The allocation of resources to non-manufacturing

sectors of the company and rivalry establishment of market
awareness.
Issues:
The issues faced were:

1.The satisfaction of the Customers were there but the

volume of the sales weren’t high but rather low.

2.They were not recognized in industry as a potential

threat.

3.Fred always being confused and seeking advice rather

than going with the hunch.

4.The problems still persisted although Bill Braxton was

brought on with the team
 Management’s Role

Hiring Specialists East and west zone

Increase the penetration

Freedom
of their PDM products

Liberty of management to focus

Specialists’ compensation
on providing more consulting
linked to the consulting hours hours to the delegated parties
 Specialists’ Perspective

Fred Bulatoa Bill Braxton

Software development hours and sales

commissions Requires integration with CAD

Currently under resourced, as their

current state doesn’t allow them to
support consulting staff Infrastructure of capabilities needs to be
developed before the sale
Process is difficult

Not given development hours

 Solution

Training

Theory
It will start off with the hiring of 5 sales
representatives by the PDM department
who will have the acumen for the product.
These 5 PDM sales representatives will Pairing with one PDM
further go on to train the existing sales specialized sales representative
personnel regarding PDM sales. This
training will be conducted in phases.
On the job experience

Feedback and Rewards

 Pros and Cons of a Single Incentive

Pros:

Bill and Fred will be able to concentrate on their individual

work. The opportunity cost will be reduced due to phased
training. The sales representatives will gain knowledge of PDM
and finally, the consulting hours will not need to be reduced to
push PDM sales.

Cons:

First of all, recruiting new software experts and PDM sales

representatives will add to expenditures. The cost of training
new PDM sales rep according to VDS PDM will also be added to
these. And finally, the entire training program will require time
as it will be executed in phases.
 Conclusion and Recommendation

PDM plan should be treated as separate business unit.

Group the software group with the staff responsible for the Product Data Management project.

Commit appropriate amount of resources so that they can have enough information to handle their company and
provide to their personnel
Thank You