CIMdata PLM Industry Summary Online Archive

4 October 2004

Company News

Automakers' Shift to CATIA V5 Requires Suppliers to Adapt or Risk Losing Business, Says Virtual Services President and CEO

As several major automakers worldwide accelerate their product development cycle internally by using CATIA V5 software, suppliers who don't adapt are at risk of losing business. This is according to Mark Ratliff, president and CEO of Virtual Services, Inc., who discussed this major technology shift at the COE 2004 Industry Workshop- Automotive at the Hyatt Regency here today.

Automakers, including DaimlerChrysler, Ford, Honda and Toyota, are weaving CATIA V5-an advanced process-simulation technology-into their daily product development culture. As a result, a new business model is evolving that yields accelerated product development cycles with reduced effort. Consumers stand to benefit by having new vehicles introduced faster, a larger variety to choose from and higher quality vehicles.

"A major technology shift is quietly underway within the global automotive market that requires a transition over the next several months from various computer aided design (CAD) software systems to CATIA V5," Ratliff said. "This shift is due to several technology breakthroughs achieved by the CATIA V5 software. Suppliers who are unaware of this global trend are critically at risk of missing significant opportunities and may be jeopardizing the long- term viability of their company."

Although technology changeovers occur every five to 10 years, none have ever been as widespread or as deeply entrenched as this one, Ratliff said.

According to Mike Fecek, Virtual Services vice president of services, "Automakers are implementing CATIA V5 technology because of its ability to drastically reduce product development costs, significantly reduce timing and improve overall product quality. Their approach is to implement CATIA V5 strategically rather than just tactically. Strategic implementation means assessing the entire product development process and integrating the CATIA V5 technology into key value-driven processes. This is where Virtual Services excels."

For example, Grand Rapids, Mich. tooling supplier Northwest Tool and Die-which partnered with Virtual Services for strategic technology support-has implemented a new business model and uses CATIA V5 technology from the shop floor to the president. Its die makers can now manage four programs simultaneously instead of just one, Fecek said. In addition, Northwest Tool and Die has not only reduced its overall program timing from 38 weeks to 28 weeks, but also reduced hourly workweeks from 55 hours to 45 hours.

At COE 2004, Virtual Services is showcasing its products and services at booth No. 12, and discussing the CATIA V5 technology, its successes and benefits to suppliers and consumers. In addition, the company is conducting a raffle in which one attendee will win a brand new 2004 car.

Headquartered in Madison Heights, Mich., Virtual Services, Inc. implements process improvements and new technologies, including CATIA V5. The company provides engineering solutions and support services to auto suppliers of BMW, DaimlerChrysler, Ford, General Motors, Honda, Hyundai, Nissan and Toyota.

Virtual Services offers a distinctive total service solution including on- site implementation services, system administration, technical training and continuous support. The company is an authorized business partner of IBM, Dassault Systemes, UGS, Sun Microsystems, Inc., Hewlett-Packard Co. and Microsoft Corp.

 

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