Outstanding Contract Performance

1. Outstanding Contract Performance Mike Adami-Sampson (mike.adami-sampson@3DS.com) Dassault Systemes ENOVIA -------------------------------------------------------------------------------- David Guzinsky (DGuzinsky@biz-solution.com) Strategic Business Solutions ENOVIA Contract Management For Aerospace and Defense

2. Topics 1 Outstanding Contract Performance Demonstration 2 Questions 3

3. DASSAULT SYSTEMES - Overview Market Footprint: $2.9b Rev Run Rate 07: $1.70b 7,000 people 100,000customers11 industries 3,500 Ecosystempartners #1in PLM market* 3DS.com PLM Collaboration 3D MCAD Virtual Product Virtual Testing Virtual Production UserExperience Productive, Easy-to-Use3D Design Product Excellence Engineering Quality Production Performance Collaborative Business Process Life Experience * Source: CIMdata DASSAULT SYSTEMES - 17 September 2014 Page 3

4. RFP RFP RFP RFP DEM/VAL DEM/VAL DEM/VAL DEM/VAL FSD FSD FSD FSD Production / O&S Production / O&S Production / O&S Production / O&S PDR PDR PDR PDR CDR CDR CDR CDR TRR TRR TRR TRR FAI / Deliver FAI / Deliver FAI / Deliver FAI / Deliver Upgrade Upgrade Upgrade Upgrade Upgrade Upgrade Upgrade Upgrade Retire Retire Retire Retire SRR SRR SRR SRR RFP RFP RFP RFP ATP ATP ATP ATP Key OOTB Capability Known Customized Capability Aerospace and Defense Business Processes Program Management Contracts Management WBS Management Cost Account Management Earned Value Measurement Integrated Program Schedules Make/Buy Board Risk Management Configuration Management Contract Deliverables Management Proposal Management Pricing and Estimating Regulatory Compliance CLIN Management Contract Compliance Action Item Management Correspondence Tracking Award Fee Management Contract Billing Contract Closure Contracts Management Program Management Systems Engineering Product Engineering Quality Assurance Systems Engineering Process Engineering Non-Conformance management Quality trend analysis Materials review board Physical Inspection Supplier-part quality planning Requirements Management Systems Synthesis System Architecture Management Systems Integration Requirements Validation/Verification Trades and Analysis Preliminary Design Quality Assurance Supplier Management Manufacturing Operations Logistics Support Product Engineering Supplier Management Competitive sourcing Supplier quality management Major Subcontracts Mgt. Inventory Management Purchasing / Material Receiving and Payments Engineering Projects Management Mechatronics sub-systems Mgt Materials Compliancy Change Management (ECR, ECO) Components Engineering Manufacturing Engineering Manufacturing Operations Logistics Support Technical publication Management Maintenance Process Engineering Logistics Support Analysis (LSA) Maintainability Analysis Reliability Analysis Release BOM to ERP Support Manufacturing Execution Tool Asset Management As Built BOM capture Build record capture Engineering Projects Management MBOM release to Enterprise

5. “Failure to meet the schedule will result in penalties and possibly loss of the €210M fee.”* * Aviation Week, Oct 29, 2007 Why Improve Contract Performance? • Earn every dollar of award and incentive fees • Avoid all penalties • Breeze through contract audits and closure • Develop very happy customers • Win more contracts!

6. For another conversation What Undermines Contract Performance? • Incomplete understanding of product requirements • Too many intermediaries between supplier and user • Failure of interpretation • Failure to comply • Communication breakdowns with: • The customer • The program teams • Partners and suppliers • Caused by information storage and sharing systems that are: • Fragmented • Out-of-context • Inconsistent • Non-existent

7. Do They Share the Same Understanding?

8. There Is A Better Way Structured Data In Context Communication Reliability Linked Documents Documents Speech Communication Medium

9. Suppliers Customers Partners Employees Business Process Applications Integrations Federation SOA View Markup Visualization EAI, B2B and Web Services CASE MCAD EDA ERP RequirementsManagement Office DocumentManagement First, One Place For Everyone To Go One Version of the Truth Consolidated, Consistent, Managed, Permanent

10. “But We Do Contracts In the Finance Tool” • Finance tools are great for financial transactions and counting costs • They are also fine for repeatable, low-risk activities • Sales orders for standard product • They are not sufficient for high-risk development contracts • Contract performance failures spring from • Failure to control costs • Failure to identify and manage risk effectively • Failure to execute to specification These need a better approach that is more granular and tightly coupled to execution and deliverables

11. What IS A Contract? • A kind of Requirement Specification that must be met • With details that relate to work and work-products • Product and Process Specifications • Statements of work • Deliverables • … • With time, cost and other constraints • Schedule • Fee and penalty structure • Defined partners • …

12. 014 Contracts Decomposed For Precise Management Baseline Contract 2003 Program Contract 2004 Project CLIN 101 Task CLIN 102 Contract CLIN 103 Line Item WBS Item CLIN 104 Configuration Item WBS 500 Part WBSE 501 WBSE 502 Geometry WBSE 503 Unit WBSE 503-1 WBSE 503-1.1 WBSE 503-1.2 WBSE 503-2

13. Organize Contract Documentation In Context

14. Capture All Line Items And Work Elements

15. Capture Subcontracts

16. 014 Linked To Program And Projects For In-context Planning ABC Program Proposal Baseline Phase 3 Master Contract 2003 Program Contract 2004 Project ABC-200 Development CLIN 101 Task ABC-200 Delivery CLIN 102 Contract CLIN 103 Line Item Task 1001 WBS Item CLIN 104 Task 1002 Configuration Item WBS 500 Part Task 10021 WBSE 501 WBSE 502 Geometry Task 10022 WBSE 503 Unit Task 10023 WBSE 503-1 Task 10024 WBSE 503-1.1 Task 10025 WBSE 503-1.2 WBSE 503-2

17. Map Contracts To Programs

18. Capture Contract Milestones

19. Automatically Associate Execution Projects

20. Identify All The Work Elements

21. Identify And Track All CDRL and SDRL • Track individual DRLs* with all the details of each requirement. • Automatically create and schedule submittals and assign them to deliverables authors • Manage individual submittal delivery and approval with all associated documentation and correspondence • Allow your customer to check status and approve on-line * Data Requirements List

22. Assignees Deliver In Context

23. 014 014 014 014 Linked To Actual Deliverables For Reliable Execution And Complete Traceability ABC-200 Functional ABC Program ABC-200 Product-1 Proposal 12345-654 54000-041 Baseline Phase 3 Master 12345-655 54020-041 Contract 2003 Program Contract 2004 Project ABC-200 Development CLIN 101 Task Qty =1 ABC-200 Delivery CLIN 102 Contract Qty =2 CLIN 103 Line Item Task 1001 WBS Item CLIN 104 Task 1002 Configuration Item WBS 500 Part Task 10021 WBSE 501 WBSE 502 Geometry Task 10022 WBSE 503 Unit Task 10023 WBSE 503-1 Task 10024 WBSE 503-1.1 Task 10025 WBSE 503-1.2 WBSE 503-2

24. Associate CLIN to CI and End-item Deliverables

25. The Life Of A Contract Manager • Identifying unwritten requirements • Fact finding on both sides • Managing contract changes • Customer correspondence and issue tracking • Preventing unauthorized scope creep • Making sure the changes of scope get paid for and are not considered overruns • Ensuring compliance

26. Improve Customer Satisfaction • Raise Issues against any item to keep track of all the challenges identified by the Program or the customer • Resolve Issues by informal or formal activities • Establish kinds of Issue to automate assignment and escalation. • Track Issue statusto keep tabs on all the unplanned activities that arise in a Program.

27. Create A Correspondence Audit Trail • Keep correspondence in contract context • Reveal PLM objects in Windows to maintain consistent UI for Program staff • Establish project folders for managing the non-contractual document traffic • Capture emails in PLM to ensure full traceability at contract closure

28. Compliance Data Is Live, Real-time

29. Managing A&D Contract Data In PLM • Contextual links to other domains improve team communication • Robust traceability enhances compliance • Management is real-time • Solid audit trail for effortless contract closure • Navigation replaces search • The customer can participate • Earn every dollar of award and incentive fees • Avoid all penalties • Breeze through contract audits and closure • Develop very happy customers • Win more contracts!

30. Topics 1 Outstanding Contract Performance Demonstration 2 Questions 3

31. Thank You !