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8/13/2019 Business Benefits of a PLM System
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Business benefits of a PLM sys
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Factors leading to PLM
The factors causing pressure for change in proc
and increasing the amount of product data:Growing competition and tighter budgets
Internationalization of business
Company mergers
Shortening delivery times
Less time available for developing new productsTightening quality requirements
Regulations and common industry standards
Tightening legislation
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Factors leading to PLM
Growing competition
and tighter budgets
Internationalization
of business
Company
mergers
Shortening
delivery times
Less time available for
developing new products
Tightening quality
requirements
Regulations and common
industry standards
Tightening
legislation processes need to
change
increasing product
data
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Changing mode of operations
Increased
manufacturing
automation
Expanded
Product
portfolios
Increased
customer
involvement
More sub-
contracted
work
Changed
organization
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Impacts of the changes in the business envir
Major Problems:
Finding the rightproduct-related
information
Retaining the
entirety of this
information
The Main Reasons:
Increasing variations of
products
Increasing amount o
product information
Increasing complexity
companies supply netw
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Vicious circle of deteriorating product d
Many companies have
fallen into a viciouscircle: large number of items,
numerous laboriousassignments caused bythe maintenance of iteminformation,
product data areproblems that feed eachother.
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Benefits of the PLM system in product life
management
Todays networkedcompanies use
heterogeneous
information system
environment
Sets great demands
upon the integration
of systems and the
transfer of information
PLM systems can improve
the internal and external
communication
~ the
single
funct
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An important consideration in adopting PLM s
It allows for a radical reduction in many kinds of unnecess
information processing and transfer work. Reuse existing information that:
have been tested rigorously,
have been used to make quality products.
These factors:
-- > will ensure that changes being made in the
design work will be more rational and faultless,
-- > will increase the value of existing applications.
8/13/2019 Business Benefits of a PLM System
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The working time of an enginee
A Coopers & Lybrand study from the year 1994
PLM can
these wa
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Immediate advantages with the help of a PL
Saving time
Quick definition of the
product structure. Decreased amount of
overlapping work.
Availability of latest part
lists.
Fewer corrections to
information.
Fast, easy retrieval of parts
and drawings.
Availability of planning
information.
Easier, faster documentation.
Improved external and
internal grade of service.
Improvement in quality
Automatic acceptance and
release of documentchanges.
Fast, accurate distribution of
change information.
Certificates, records and test
results can be connected to a
product.
Availability of standards.
Improved information
security.
Increased flexibility of
operation.
Reductio
The num
items is are more
Reduced
The man
producti
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Measuring the business benefits in daily o
Converting the benefits of a PLM system directly into mon
terms is difficult.2 different forms of savings:
Operational savings New or increased ear
possibilitiesintensificationof theoperative operation.
decreasein expenses
and working capital.
strategic matters
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The flow of measuring benefit
Identifyingtypical
problems
Identifyingcauses ofproblems
Determiningindicators to
measure
operations
Dde
b
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Material costs: reducing inventory tied c
Typical problems
o
The item management of the company isnot in order,
o The companys own component design
and manufacturing is inefficient,
o Procurement buys the same type of
components from different suppliers for
different products,
o Product development and sourcing each
maintain large amounts of overlapping
information,
o The company makes overly fast and
uncontrolled changes in the design of the
product.
Causes of pro
Difficulties in retrievcontrolling product lead to unwanted shoperations model,
The product data cocomponent items isdate and is unreliab
There are difficultieinternal and externacommunication of tregarding product dchanges that have tit.
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Material costs: reducing inventory tied c
Indicators to measure operations
o The number of component itemsin the item base of the company
divided by the products (the
generic products) proportioned
to the number of components in
individual products,
o Length of the cycle from purchase
invoice to account sales,
o Value of the component
inventory
Ability to easily retrieveall necessary item infor
Reducing component sexpanding the convertcomponents,
Better management ofinformation and betterof component supplierinformation,
Reducing the items in twarehouse and droppi
Development potential br
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Improving the productivity of labou
Typical problems
The product knowledge of theproduct development organization
depends very essentially on the
individuals in the organization,
Far too much work is needed to
retrieve existing product data and
to maintain and transfer,
The reuse of existing information or
experience from older products
and functioning design solutions is
difficult.
Causes of pro
Scattered product several separate in
management syste
links).
Separately maintai
pieces of product dseparate product m
systems.
Push principle dis
information.
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Improving the productivity of labou
Indicators to measure operations
The direct costs of labour related
to the transfer of information and
change management of products.
The time used in finding and
retrieving information.
Converting individuainto intellectual capitto the whole organiz
Controlling and manadata and product kno
electronic form, Reusing of existing in
Reducing the resourcretrieving, maintainitransferring product information.
Development potential br
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Costs of quality
Typical problems
Faulty or incomplete productdesign,
Faulty product units during
production or even after
delivery,
Problematic manufacturing ,
Returned products for repair
under guarantee.
Consuming work to handle
problematic situations.
Causes of pro
Complexity of protheir processes,
Lack of traceabilit
management.
Slowness of chang
Shortcomings in t
traceability of the
delivery process a
individual product
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Costs of quality
Indicators to measure operations
Ability to produce:
quality products ,
improved manufacturing
processes. Ability to reduce:
manufacturing defects,
guarantee claims.
Greater ability to im
quality with the he
efficient, streamlin
processes.
Fast, efficient chanmanagement,
Traceability of chan
management and d
history.
Development potential br
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PLM and data warehousing as a tool
to support decision-making
~daily tasks,
~user profiles,
~user activities,
~ files,
~documents.
PLM database Decision making
statistical analyses
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Use of quantitative information for developing pro
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Data warehousing
The IT systems that
support the differentco functions.
Data warehousing.
informed
product lifecycle decisions
(based on real information)