PLM World ‘06
Premium Partners:
PLM For the Engineer-To-Order (ETO)Industry
K. Balasubramanian ( Balu)TCS
[email protected] 6206
K. Balasubramanian ( Balu)TCS
[email protected] 6206
Prabhu PatruniTCS
[email protected] 5567 8681
Prabhu PatruniTCS
[email protected] 5567 8681
About TCS
• Part of the TATA group• Largest IT Solution Provider in Asia with revenues over $ 2 billion• Has a Strategic Business Unit for Engineering and Industrial Services• Dedicated Practice for PLM over 775 Consultants• Strategic Partnership with UGS PLM for over 18 years• Ranked 12th among the leading Global PLM service providers –
by CIMDtata
• Part of the TATA group• Largest IT Solution Provider in Asia with revenues over $ 2 billion• Has a Strategic Business Unit for Engineering and Industrial Services• Dedicated Practice for PLM over 775 Consultants• Strategic Partnership with UGS PLM for over 18 years• Ranked 12th among the leading Global PLM service providers –
by CIMDtata
· “Game plan” - Innovating and delivering products that customers need· “One Size fits all” philosophy is no longer applicable· Companies adapt to different manufacturing styles to suit their business
context and stay competitive· IT Product vendors are providing solutions to support these
Manufacturing Styles· Product Development and Data Management needs also differ for
different manufacturing styles.· PLM has gained maturity and customer confidence to solve different
Product Development and Data Management needs
Manufacturing Industry Scenario today
PLM solution can be easily deployed to address such needsPLM solution can be easily deployed to address such needs
Manufacturing styles- Customer order placement
Fabricate Assembly
Specification System Manufacturing System Distribution System
idea Dev Construct MethodPlan
Management and Control System
Engineer-To-Order
Make-To-Order
Assemble-To-Order
Made-To-StockCustomer
ORDER
Adapted from Reference 6
Different manufacturing Styles
Engineer To Order (ETO) is one such style which has gained MomentumEngineer To Order (ETO) is one such style which has gained Momentum
· Companies adapt manufacturing styles to suite their business context
Assembly to Order
· Growth and Profitability are directly impacted by making Products “as demanded” by the Customers
Made To Order
Configure To Order Made To Stock
Engineer To Order
Logos are Registered trademarks of Apple, Dell and IBM respectively
What is Engineer-to-Order a.k.a ETO
· This is a functional style followed by companies to address unique customer needs· Through Custom Engineered Products · Deliver profitably within accepted schedule
· Customer is a part of the entire Sales to Delivery Process
· Each Product built has unique engineering and manufacturing requirements
· Innovating and building products as per customer needs is challenging and profitable.
Approximately 25 percent of All North American Manufacturers are ETO -Thomas R.Cutler in an article in www.etoinstitute.org
Approximately 25 percent of All North American Manufacturers are ETO -Thomas R.Cutler in an article in www.etoinstitute.org
Some ETO Companies
Virtually every Industry Segment has ETO style of Functioning Virtually every Industry Segment has ETO style of Functioning
Power Generation Systems
Gas Turbines Centrifugal and Rotary Compressors
Transportation Systems
Industrial Machinery
Medical Device and Diagnostic Systems
Tool Engineering –Dies, Molds and Fixtures
Characteristics of an ETO Industry
Fundamental Shift from Product based to Project based ”Fundamental Shift from Product based to Project based ”
· Customer is involved right through the “Sales to Delivery” cycle· Companies work in Project mode than in Product mode· Project Planning is a critical element in the life cycle· Planning for Long Lead Items influences the success or failure· Following factors have significant impact on product delivery
· Design Data reuse· Collaborative development with Partners and Suppliers· Enterprise Data Sharing
· Project run on Cost Estimates and Actual Costs·Engineering activities consume significant time in the Delivery Lead time·Engineering Change Management plays a critical role in the project delivery
Challenges faced by an ETO
· Management of Unique BOMs, documents,and engineering definition specific to a customer
· Maximizing Product Data reuse to reduce engineering lead times· Integrating the Sales to Delivery Value chain· Project execution within the estimated budget· Managing the engineering changes in the dynamic scenario· Planning, execution and delivery commitments
Managing unique product data needs of a customer is a big challengeManaging unique product data needs of a customer is a big challenge
ETO Value Chain Process
RFP and Proposal Engineering
Contract Negotiations & finalizing Scope
Project Initiation and Planning
Baseline Product For Delivery (PFD)
Manufacturing Resources Planning
Cost and Budget Tracking
Detailed Design Engineering
Quality Control
Manufacturing
Product Delivery and Commissioning
Service Life Cycle Management
Purchasing
CRM
CRM
PLM
PLM
ERP /PLM
ERP
PLM
ERP
ERP
PLM/ERP/SCM
PLM/ERP/SCM
PLM/ERP
Project Communication Processes Multiple Systems
PLM Systems today address some of the Core Value chain processesPLM Systems today address some of the Core Value chain processes
Value Chain Sequence - Ideal
Purchasing
Manufacturing
Engineering
Planning
Proposal
Project account
Request
Delivery
Order
Scoping
Ship
Evaluate
Install
Service
Front End Process Order Execution Support
Value Chain – Real life
Proposal
Request
Order
Scoping
Evaluate
Front End Process Order Execution
Purchasing
Manufacturing
Install
Ship
Engineering
Support
DeliveryService
Planning
Project account
Factors influencing successful Delivery
Planning
Proposal
Request
Order
Scoping
Evaluate
Front End Process Order Execution
Engineering
Support
Purchasing
Manufacturing
Ship
Install
DeliveryService
Project accountParallel Working
Knowledge Inputs
RealisticPlanning &Tracking
Budgeting & Finance
Reduction in “available” window
InstallationSupport
Increased role of “E” in ETO
Planning
Proposal
Request
Order
Scoping
Evaluate
Front End Process Order Execution
Engineering
Support
Purchasing
Manufacturing
Ship
Install
DeliveryService
Project accountParallel Working
Knowledge Inputs
RealisticPlanning &Tracking
Budgeting & Finance
Engineer involved throughout
InstallationSupport
Key Elements of PLM
· Key elements that constitute the Product Configuration to Product Dissemination Cycle· Project and Program Management· Product Configuration · Concurrent and Collaborative Product Development· Enterprise Collaboration· Engineering Change Management
Product Configuration
Product Configuration
CollaborativeProduct
Development
CollaborativeProduct
Development
EnterpriseData
Sharing
EnterpriseData
Sharing
EngineeringChange
ProjectPlanning
It is all about Planning and managing changeIt is all about Planning and managing change
Engineers driving flow of Information
Sourcing
Engineering
ProjectAccounting
Planning
Manufacturing
Service
BILL OF MATERIAL IS the Binder acrossBILL OF MATERIAL IS the Binder across
Introducing the Project Meta Structure
Meta Structure Baselines project scopes for planning purposesMeta Structure Baselines project scopes for planning purposes
P1
P2 P3
P4 P5
P6 P7
•Each Project has a UNIQUE Meta Structure•Represents the scope of the project•Individual nodes can have indicative lead time for planning purposes•Pseudo place holder until design is completed•Serves as guide for a building a real structure •Slotting and Simulation can be done based on this even prior to Order acceptance•Structured to reflect how the product is BUILT.
•Each Project has a UNIQUE Meta Structure•Represents the scope of the project•Individual nodes can have indicative lead time for planning purposes•Pseudo place holder until design is completed•Serves as guide for a building a real structure •Slotting and Simulation can be done based on this even prior to Order acceptance•Structured to reflect how the product is BUILT.
Evolution of the Structure
P1
P2 P3
P4 P5
P6 P7 R5R4
R6 R7
R5R4
R6 R7
R3R3
Allows Engineers to “THINK”Allows Engineers to “THINK”
•Real Item Definition – CAD Modeling, Drafting, Reviewed and Released•Associating a Real Structure with Project Meta Structure will create visibility outside PLM and enable action upon it
•Real Item Definition – CAD Modeling, Drafting, Reviewed and Released•Associating a Real Structure with Project Meta Structure will create visibility outside PLM and enable action upon it
Partial Structure Used for Material Resource Planning
•Partial Structure available in ERP system as and when it is ready in PLM•The BOM Structure is used as basis for Material Planning System•Work Orders and Material Purchase can be initiated for various ‘finalized’parts•Different MRP Runs refines the planning
•Partial Structure available in ERP system as and when it is ready in PLM•The BOM Structure is used as basis for Material Planning System•Work Orders and Material Purchase can be initiated for various ‘finalized’parts•Different MRP Runs refines the planning
P1
P2 P3
P4 P5
P6 P7
R5R5
R6 R7
R3
BOM must be structured to fill the needs of the MOST DEMANDING CUSTOMER, the Planning…. Dave Garwood, Author –”Bill of Material Structured for Excellence”
BOM must be structured to fill the needs of the MOST DEMANDING CUSTOMER, the Planning…. Dave Garwood, Author –”Bill of Material Structured for Excellence”
ProjectStructure
RealStructure
Meta Structure concept – Relation across structure
•Association formed across Structures •This is in addition to “replacement” discussed earlier •Layering of information and association in right context -Knowledge
•Association formed across Structures •This is in addition to “replacement” discussed earlier •Layering of information and association in right context -Knowledge
ProjectStructure
RealStructure
Meta Structure concept – Relation across structure
Association across NodesAssociation across Nodes
•Association formed across Structures •This is in addition to “replacement” discussed earlier •Layering of information and association in right context -Knowledge
•Association formed across Structures •This is in addition to “replacement” discussed earlier •Layering of information and association in right context -Knowledge
ProjectStructure
RealStructure
Meta Structure concept – Reusability across projects
NewProject
Structure
Foundation for Knowledge Repository for reuseFoundation for Knowledge Repository for reuse
How to Evolve Meta Structure??
Meta Structure can be evolved from Knowledge Templates Meta Structure can be evolved from Knowledge Templates
KnowledgeTemplate
ProjectMeta
Structure
•Meta Structures can be evolved from different Knowledge Templates maintained•Each Node in a Meta Structure must be specific for the project
•Meta Structures can be evolved from different Knowledge Templates maintained•Each Node in a Meta Structure must be specific for the project
Meta Structure for Project Documents
Doc3 Doc4Doc2 Doc5
Proj Doc
Proj0
Part2 Part3
Part4 Part5
Part6 Part7
Part1
•ETO Projects also call for Project Specific Documentation•Not any specific to any single part of assembly but applies to whole project •Needs to be Planned and delivered along with Hardware•Includes examples like Site Layout, Bolting Diagrams, Operating Instructions, Test Results •Documents often involve Customer review and signoff
•ETO Projects also call for Project Specific Documentation•Not any specific to any single part of assembly but applies to whole project •Needs to be Planned and delivered along with Hardware•Includes examples like Site Layout, Bolting Diagrams, Operating Instructions, Test Results •Documents often involve Customer review and signoff
Multiple Projects under a Contract
Contract
Doc3 Doc4Doc2 Doc5
Proj Doc
Proj0 ProjNProj.. Proj
Part2 Part3
Part4 Part5
Part6 Part7
Part1
Contract Context can always be visible while workingContract Context can always be visible while working
•ETO are contract Based •Different deliverables are typically managed as contract lines•Deliverables can be managed as Projects individually
•ETO are contract Based •Different deliverables are typically managed as contract lines•Deliverables can be managed as Projects individually
PLM Solution Home
DocumentManagement
Item Management
Project BOMManagement
Product Knowledge Templates
Project DocManagement
Project Scope and Contract Structure Management
Engineering Change
Management
Associations
Interfacesto enterprise Apps &
Reporting
Teamcenter Engineering
PLM Systems to address some of the Core Value chain processesPLM Systems to address some of the Core Value chain processes
A ETO Company example
· Teamcenter Engineering deployed with defined solution components· Teamcenter sourced the vital engineering information and is shared with all the
critical upstream & downstream applications· Teamcenter Engineering integrated with Business Intelligence systems for
critical decision support· Teamcenter Engineering provided the necessary product structure information
for upfront planning
· Teamcenter Engineering deployed with defined solution components· Teamcenter sourced the vital engineering information and is shared with all the
critical upstream & downstream applications· Teamcenter Engineering integrated with Business Intelligence systems for
critical decision support· Teamcenter Engineering provided the necessary product structure information
for upfront planning
· Delivery Slippages resulting in Penalties and Customer dissatisfaction
· Unable to carry out planning for the orders
· Piled up inventory
· Inextensible legacy systems to accommodate changing business needs
· Delivery Slippages resulting in Penalties and Customer dissatisfaction
· Unable to carry out planning for the orders
· Piled up inventory
· Inextensible legacy systems to accommodate changing business needs
Problem faced by this companyProblem faced by this company
Solution that benefited the customerSolution that benefited the customer
Teamcenter Engineering for addressing complex Data Management needs Teamcenter Engineering for addressing complex Data Management needs
Conclusions
· Planning and Execution in given time are the key elements for success· Bill of Material is the binding factor across functions· Engineering in ETO holds the key to overall value chain· PLM transcends traditional usage by “engineering” alone and serves
a wider business functions and stake holders· Teamcenter Engineering has rich solution framework to model an ETO
way of working· Teamcenter can serve as Engineer’s work bench
External References
1. Bills of Material Structured for Excellence by Dave Garwood, Dogwood Publishing Company, Marietta, GA 30067
2. Product Data Management (PDM) System - Support for the Engineering Configuration Process - A Position Paper -SamirMesihovic1 and Johan Malmqvist2 14th European Conference on Artificial Intelligence ECAI 2000 Configuration Workshop August 20-25, 2000, Berlin, Germany
3. A visual Product Constructor for Engineer to Order environments -Kai A. Olsen and Per Sætre Molde College Britv. 2 N-6400 Molde, Norway
4. Are you ETO- Increasing importance of Custom ( ETO) manufacturers – Thomas R.Cutler InMfg ( www.etoinstitute.org)
5. Project-Oriented Manufacturing: “How to Resolve the Critical Business Issues That Impact Organizational Competitiveness” -Preston Blevins CFPIM, CIRM ( www.etoinstitute.org)
6. Discussion of the ”Order Specification Decoupling Line” –BenjamenHansen, PhD thesis identified 2003 Technical University of Denmark
7. www.etoinstitute.org articles
PLM World ‘06
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