1. Product Lifecycle Management © 2003 IBM Corporation PLM makes shipyard more competitive  Customer Background o Yantai Raffles Shipyard is located in Yantai, China, and specializes in offshore projects such as oil rigs. Its 1,000-person staff also has built anchor-handling vessels, supply vessels, tugs, dynamic positioning vessels, launch barges, calm buoys and yachts.  Business Challenges oConstruction of custom designs often had to begin before the design was fully complete, leading to expensive changes and re-work. oDifficulty coordinating operations with architectural, engineering and design firms and suppliers worldwide contributed to costly and time-consuming errors caused by inconsistent information. oNeed to achieve world-class quality to improve global competitiveness. oCumbersome design processes that raised material costs and lengthened development cycles  Solution Implementation oCATIA V5 for collaborative virtual product development oENOVIA LCA for product data management oENOVIA Portal 3D.com for viewing of product data throughout the extended enterprise  Benefits of the Solution oAbility to create a complete, 3D digital mockup of the design prior to the start of construction oReduced errors and re-work oImproved collaboration with suppliers with fewer errors oImproved competitiveness oFirst PLM project achieved zero defects

2. Product Lifecycle Management © 2003 IBM Corporation Yantai Raffles Shipyard  The Industry Yantai Raffles Shipyard provides complete concept-to-commissioning of ocean-going vessels, including offshore oil rigs, supply vessels, tugs and yachts. With 1,000 workers and a 300-person Engineering Department, Yantai Raffles is one of the most modern shipyards in China and one of the most price-competitive shipyards in the world.  The Challenge YRS must coordinate highly complex product data with architects, designers and engineers worldwide. Because many of its projects are custom prototypes, designs often were not complete when construction began, leading to errors and costly re-work after the strat of production. Change orders often were not replicated throughout the system, meaning that different offices could unknowingly work with different versions of the same data.  The Solution YRS implemented IBM Product Lifecycle Management, including CATIA V5, ENOVIA LCA and ENOVIA Portal 3d.com from Dassault Systemes. PLM’s web-based product development collaboration allowed YRS to seamlessly link it shipyard in China with its suppliers and its design, engineering and architecture partners worldwide. The ability to create a complete 3D digital mockup of the vessel prior to the start of construction reduces the chance for error and the need for costly re-work. The company’s first PLM project achieved zero defects.  The Customer Benefits PLM streamlined design processes while delivering substantial return on investment through lower material costs and improved quality, a competitive advantage. “PLM technology from IBM and Dassault Systemes is shaping the way suppliers, partners and clients think about us. Today we are able to collaborate with owners, suppliers and designers in an exciting new way." – Brian Chang, Chairman/CEO, Yantai Raffles Shipyard

3. Product Lifecycle Management © 2003 IBM Corporation CATIA and ENOVIA allow YRS to create a complete virtual model of a vessel before physical work begins. YRS has streamlined its design process for all vessels, improving ROI through lower material costs and improved quality, a competitive advantage. The best technology for the best ships "Being able to see a digital model of a ship before production begins is an unforgettable experience for our customers.” Brian Chang, Chairman/CEO, Yantai Raffles Shipyard