By Rajiv Ghatikar, Vice President and General Manager, Siemens PLM Software, ASEAN / Australasia

The Southeast Asia region as a whole has achieved unprecedented growth and development in recent decades and is increasingly playing the role of a global growth pole, fast emerging as a manufacturing and information technology hub of the world economy.

According to a recent report from the Association of Southeast Asian Nations (ASEAN), more than 96% of all enterprises across the region are considered SMBs, and those organizations account for between 50% and 85% of all domestic employment. Specifically, the SMB sector is an important pillar of Singapore’s economy as they contribute more than 50% of the economic output and 70% of employment. Needless to say, it is clear that small and mid-sized businesses play a unique and integral role across the region, serving as suppliers to large firms, customers of large firms and their own customers.

Yet scale and making significant economic contributions have not protected SMBs from the pressures of the global economic slump, rising costs, competition from neighbouring countries and a shortage of skilled workers. GDP growth in the Southeast Asia manufacturing industry is predicted to accelerate modestly from 6.3% in 2013 to 6.5% in 2014 –  slower in both years than the 6.9% growth in 2012, meaning manufacturing growth is dependent on the future of its smallest but most significant contributors.

Against this backdrop, innovative SMBs are looking for the next generation of tools and strategies to stay ahead of the competition. As stated in a recent SBF DP SME Index, a joint initiative of the Singapore Business Federation and DP Information Group, manufacturers are tackling the challenges first hand by embracing a new wave of technologies and innovations. Product lifecycle management (PLM) software, which includes computer-aided design (CAD) and simulation technologies, is one such innovation.

 PLM solutions optimising resources and driving success

Company leaders have reported that the biggest obstacles to generating return on investments in innovation are lengthy product development times and a lack of coordination within the company. PLM solutions enable manufacturers to drive success by streamlining their productivity and performance and in turn, maximising the value derived from their products throughout the manufacturing lifecycle.

With PLM software, businesses can create a single master plan with schedules, tasks, deliverables, milestones, baselines and constraints. This creates a consistent process for planning, optimizing and designing products while monitoring costs and resources. Ultimately, this allows SMBs to meet customer commitments on time and on budget.

PLM’s integrated approach also enables businesses to significantly streamline their activities, validate that goals have been met and accelerate product delivery. The software’s performance-tracking capabilities allow business owners to make informed decisions, fast-track successful projects, narrow down projects of low value or change directions completely.

The value of CAD

Solutions that enable computer-aided design (CAD) modelling offer SMB manufacturers another opportunity to lower product development costs, increase productivity and improve product quality and time to market. The advanced modelling and analysis functionalities allow SMBs to more accurately visualise the final product and its constituent parts, as well as provide more robust documentation of designs and easy re-use of design data and best practices.

The use of CAD models has already proven successful for South East Asian SMBs. For example, Heatec Jietong Pte Ltd, a midsized provider of piping and heat exchange services for the marine and oil and gas industries based in Singapore, faced a competitive environment dominated by large-enterprise companies. The company prides itself on providing high quality services with an emphasis on timely delivery and realized that despite its midsized business model and capacity, the use of technology would allow them to compete effectively and retain its quality promise.

 To achieve this, Heatec JieTong realised that it needed to address several issues that were slowing its manufacturing process. Among the most critical, the company was using a 2D drawing package to design its systems and recognised that the 2D approach was especially cumbersome in responding to tight deadlines.

Turning to Siemens PLM Software’s Solid Edge software, Heatec JieTong’s design teams adopted best-in-class 3D drafting and visualisation, which produced immediate results. For the first time, designers found it easier to keep up with engineering changes. Just as importantly, design errors were essentially eliminated, which resulted in better quality bills of material. The company’s designers also were able to tightly track their edits and audit the necessary changes.

Overall, adapting 3D CAD solutions enabled the company to operate like a large manufacturer while maintaining its mid-sized business model. Profitability increased as the company demonstrated forward-thinking strategies and advanced technology.

Simulation at the core of modern day manufacturing

Simulation software was once the exclusive domain of large companies. However today, with an increasing requirement to produce designs in shorter cycles, reduced time-to-market has become a foremost business pressure. This drives the adoption of simulation in design.

Prototype manufacturing and testing can take up a significant amount of time and manpower, two resources that SMBs don’t have in abundance. Simulated design testing reduces the reliance upon physical testing and prototyping which allows designs to be brought to market sooner, in a more cost efficient manner. Simulation software programs such as Solid Edge Simulation allow design engineers to model components and enable assemblies or systems to determine the behavioural response for a given operating environment. Further analysis can help identify and resolve issues, reduce material usage, and optimise performance.

 Malaysia based contract manufacturer, UWC Holdings used Solid Edge Simulation to significantly reduce its product development and manufacturing cycle time for automation solutions. The simulation software allowed the company’s design team to work with embedded class rules, enabling higher standards to be systematically incorporated into the product development process. UWC Holdings is now able to concentrate on high-speed development and manufacturing, and enjoys streamlined compliance with industry standards whilst delivering on expectations.

 Staying ahead with PLM

Today’s global economy means manufacturers of all sizes must do more with less and for South East Asia’s small and medium enterprises, embracing new technology is key. Shifting investments toward PLM software provides a competitive advantage, accelerating innovation, supporting global collaboration and improving business performance to ensure South East Asian manufacturers remain one step ahead of the competition.