The Business Case for PLM | PDT Europe

Copyright © 2013 by CIMdata, Inc. 1

www.CIMdata.com

Copyright © 2013 by CIMdata, Inc.

Global Leaders in PLM Consulting

The Business Case for PLM PDT Europe 2013 Stockholm, Sweden 15-16 October 2013

Peter A. Bilello, President [email protected] Tel: +1.734.668.9922


CIMdata’s Mission... Strategic consulting for competitive advantage in global markets

CIMdata is the leading independent global strategic management consulting

and research authority focused exclusively on the PLM market.

We are dedicated to maximizing our clients’ ability to design and deliver innovative products and services through the application of PLM.


CIMdata’s Services... Creating, disseminating, and applying our intellectual capital

Delivering strategic advice and counsel through a comprehensive, integrated set of research, education, and consulting services


The business drivers for PLM Market & organizationally drivers

PLM’s main construct

PLM areas of expansion…far beyond PDM

PLM supports the extended enterprise

PLM is a JOURNEY that requires planning and execution

Main Discussion Topics Main session objective: Why PLM is needed


The State of Business Today…

The need to make the complex simple!


A new global economic order is unfolding as the balance of global growth shifts from developed to emerging economies By 2025, leading emerging economies such as Brazil, India, Indonesia, Korea

and Russia are likely to join the ranks of China and the advanced economies as global growth poles

Emerging economies are increasingly becoming the drivers of global growth…

Rapid globalization and expected higher growth rates in emerging market economies will translate into greater economic influence for developing countries Innovation in emerging economies is likely to take off as income levels rise

Increasing cross-border M&A deals originating in Emerging Markets is a feature of the changed corporate landscape

Today’s Business Environment All markets are global (1 of 3)

Source: Worldbank.org


ALL businesses operate within an uncharted economic territory that will inevitably impact everyone…

Companies that don’t improve their products and processes will lose in today’s fiercely competitive global market

Winners focus on the things they DO control: More focused strategy

Better, more adaptive planning

Better execution

Better utilization of resources

Focus and optimization of core competences

Today’s Business Environment You can’t stand still (2 of 3)


Lack of Resources The new norm; doing more with less—people, money, time, etc.

Increased product complexity What product doesn’t have software embedded in it?

Increased design supply chain complexity More suppliers, more responsibilities, more distributed, etc.

Significantly higher customer expectations for… Enhanced features and functions

Higher quality at a reduced cost

New models, quicker

Making the complex simple

Today’s Business Environment Balancing between effectiveness and efficiency (3 of 3)


Products, facilities, services How they are produced, operated and maintained

Physical assets and processes

What information and resources are required

Intellectual assets

Customers What they want, need, and their business issues

Partners and suppliers What and when they contribute

How you work together throughout the product lifecycle

Success Requires a Holistic Solution All aspects of a the lifecycle must be considered and integrated

Product and supply chain complexities demands this!


Has the single source of truth changed over time? The core hasn’t, but the complexity and extent of it is has changed

Have expectations changed? Yes, they have… Once, only mechanical related elements where considered

Now electrical is fairly commonly included

What about requirements management

Software…a lot of talk, but not much beyond executables in the past

Program management; real lifecycle management?

Cost management?

Compliance?

Social media articles?

Warranty claims information?

Field data, …?

PDM Can’t Handle Today’s Requirements The increasing product, supply & customer demand complexities demand PLM


Identification must be consistent & recognizable

Many types of information may represent one logical object Much more than document management!

Data Mgt. is at the Core of PLM Enablement Products have many associated information items that take many forms

N

C 3D

Data

Item

Raw

Material

Spec. More

Service

Item

Packaging

Materials

Installation

Instructions

SUB ASSEMBLY

Another

Item

Photo Photo

Prototype

Instructions

Build

Report

Design

FMEA Process

Sheets

Model Test

Results

Process

FMEA

3D

Assembly

Instructions

Test

Instructions

Another

Item Another

Item


PART PART

PART PART

PART PART

PART PART PART PART

PART

PART PART

SW PART PART PART PART PART PART

Packaging option 1

Manuals language 1

Packaging option n

… …

PART option 1

PART PART PART option n

…

A Bill Of Information—A Core PLM Concept What does your typical Bill of Material (BOM) look like?

But this is only the part-to-part information!

Requirements


PART PART

The Complete Bill of Information The product structure is more than just the BOM (1 of 2)

Every PART has related

product definition information!!!

Program/MTM Development # Part # Supplier # Manufacturer #

OEM #

Tab #

Serial/Tracking #

Attributes

Test Data

Quality Data

Requirements

Drawing(s)

3D Model(s)

Viewables

Data Sets Requirements v2

Test Data v2

Quality Data v2

Drawing(s) v2

3D Model(s) v2

Viewables v2

Test Data vn

Quality Data vn

Requirements vn

Drawing(s) vn

3D Model(s) vn

Viewables vn

…

Manufacturing Data

Analysis Data

Program Data

Quality Data

PTS

ECR

CFT Tooling

Material

FEA/CAE

. :

Cost Data Phase

PART

PART PART PART

PART PART

PART PART PART

PART PART

Versions

Effectivity Part Relationships

PART

Where Used

Assy. #2 Assy. #3 Assy. #n

Requirements

Supplier Data


The Complete Bill of Information PLM manages the complex and complete the product definition (2 of 2)

PART PART

PART PART

PART PART

PART PART

PART PART PART

PART

PART PART PART

PART PART

PART PART PART

PART PART


OEM #

Tab #

Serial/Tracking #

Test Data

Quality Data

Requirements

Drawing(s)

3D Model(s)

Viewables

PTS

ECR

CFT

Tooling

Material

FEA/CAE

. :

Cost Data Phase


OEM #

Tab #

Serial/Tracking #

Test Data

Quality Data

Requirements

Drawing(s)

3D Model(s)

Viewables

PTS

ECR

CFT

Tooling

Material

FEA/CAE

. :

Cost Data Phase


OEM #

Tab #

Serial/Tracking #

Test Data

Quality Data

Requirements

Drawing(s)

3D Model(s)

Viewables

PTS

ECR

CFT Tooling

Material

FEA/CAE

. :

Cost Data Phase


OEM #

Tab #

Serial/Tracking #

Test Data

Quality Data

Requirements

Drawing(s)

3D Model(s)

Viewables

PTS

ECR

CFT

Tooling

Material

FEA/CAE

. :

Cost Data Phase


OEM #

Tab #

Serial/Tracking #

Test Data

Quality Data

Requirements

Drawing(s)

3D Model(s)

Viewables

PTS

ECR

CFT

Tooling

Material

FEA/CAE

. :

Cost Data Phase


OEM #

Tab #

Serial/Tracking #

Test Data

Quality Data

Requirements

Drawing(s)

3D Model(s)

Viewables

PTS

ECR

CFT

Tooling

Material

FEA/CAE

. :

Cost Data Phase


OEM #

Tab #

Serial/Tracking #

Test Data

Quality Data

Requirements

Drawing(s)

3D Model(s)

Viewables


OEM #

Tab #

Serial/Tracking #

Test Data

Quality Data

Requirements

Drawing(s)

3D Model(s)

Viewables

PTS

ECR

CFT

Tooling

Material

FEA/CAE

. :

Cost Data Phase


OEM #

Tab #

Serial/Tracking #

Test Data

Quality Data

Requirements

Drawing(s)

3D Model(s)

Viewables


OEM #

Tab #

Serial/Tracking #

Test Data

Quality Data

Requirements

Drawing(s)

3D Model(s)

Viewables


OEM #

Tab #

Serial/Tracking #

Test Data

Quality Data

Requirements

Drawing(s)

3D Model(s)

Viewables


OEM #

Tab #

Serial/Tracking #

Test Data

Quality Data

Requirements

Drawing(s)

3D Model(s)

Viewables

Don’t forget, there

are relationships

between non-part

objects!

Other documents, requirements, …


Plan Concept Design Validate Production Service

Requirements Structure System/Logical Structure Engineering Structure Simulation/Testing Structure MFG Structure As-Supported Structure

Production Systems (ERP/MES)

Truth - Clear understanding of requirements Truth - Clear

understanding of impact on functional design

Truth - Clear understanding of changes to product design

Truth - Clear understanding of impact to product simulation needed

Truth - Clear understanding of impact to mfg structure

Truth - Clear understanding of impact to Mfg and As Supported structure

When a Change to Requirements occurs

PLM Provides a Single Source of Truth A single source for multiple structures (e.g., multiple BOMs)


Strategic business approach NOT just technologies

Consistent set of business solutions

Collaborative creation, use, management & dissemination of product related intellectual assets All product/plant definition information – the virtual product

MCAD, AEC, EDA, CASE, analysis, formulas, specifications, portfolio, docs, …

All product/plant process definitions – the virtual processes

Processes that plan, design, produce, operate, support, decommission, recycle, …

Supports the extended enterprise

Spans full product/plant lifecycle, from concept to end of life

PLM’s Definition PLM – integrating people, processes, information, and business systems


Mechatronics

Systems Engineering, including requirements mgt.

Enterprise Simulation Management (ESM)

Lifecycle Simulation & Analysis

Digital Manufacturing

PLM-Automation

Strategic Product Planning (Product Portfolio Management)

Enterprise Content Management

Product Costing

PLM Supports—Far Beyond Engineering PLM solutions must support from concept to end-of-life

Maintenance, Repair, & Operations/Overhaul (MRO)

Product-related information publishing

Compliance, Green, …

Strategic Sourcing

Supply chain management and collaboration

Enterprise BOM management

Others …


Strategic Product Planning Management of project and product portfolios

Requirements

Planning

Conceptual Design

Product Engineering Manufacturing

Engineering

Simulation & Validation

Build and Produce

Sales & Distribution

Maintenance & Repair

Disposal & Recycling

Test & Quality In-service

Operation

Portfolio Management

Strategic Product Planning


Customer Facing Management of the customer visible part of the lifecycle

Requirements

Planning

Conceptual Design


Engineering


Build and Produce





Operation


Customer Facing


Enterprise Content Management Management of content (e.g., documents) is a visible part of the entire lifecycle

ECM

Requirements

Planning

Conceptual Design


Engineering


Build and Produce





Operation



Compliance, Green, Sustainability… Sustainability is a visible part of the entire lifecycle

Requirements

Planning

Conceptual Design


Engineering


Build and Produce





Operation


Sustainability…


Digital Manufacturing Management of manufacturing process definition

Requirements

Planning

Conceptual Design


Engineering


Build and Produce





Operation


Digital Manufacturing


Mechatronics Definition and management of the full product definition across multiple domains

Requirements

Planning

Conceptual Design


Engineering


Build and Produce





Operation


Mechatronics


Systems Engineering Total optimization for the lifecycle and all lifecycle components

Systems Engineering

Requirements

Planning

Conceptual Design


Engineering


Build and Produce





Operation



Requirements

Planning

Conceptual Design


Engineering


Build and Produce





Operation


Enterprise Simulation Management Management of the complete product digital test & validation data & processes

Enterprise Simulation Mgt.


Typical High-Level Goals of a PLM Strategy PLM improves business performance throughout the lifecycle

Launch

Profits

Costs Product

Lifecycle

Faster to

Production

Larger

Market

Share

Increased

Profitability

Cost

Reduction

Premium

Pricing

Improved

In-Service

Operation

Managing your intellectual assets

throughout the complete lifecycle is critical!


You cannot maximize benefits by improving one of these 3 in isolation

Applying new technologies in out-of-date ways just allows you to create errors & take bad decisions more quickly

People are adept at using tools incorrectly—they have to be trained in the tools & the processes

3 Key Factors the Maximize PLM Benefit People, technologies, and processes interrelate

People

Processes Technologies


For Business Performance and Opportunities

For the Organization

For the Users

For the Product or Service

For Process Performance

Benefits of PLM Main benefit categories


Potential PLM Benefits Example ranges of benefits based on actual experiences


The integrity of information and effectiveness of the organization are linked

Integrity = accuracy and completeness of the information you use to make decisions

Effectiveness = the ability to respond accurately and quickly

The Bottom Line: PLM is Strategic Accuracy & completeness of an organization’s information is critical

Adapted from ICM’s CMII materials.

When does your product definition become complete and accurate?


Working smarter

Improve products

Faster to market

Compete globally

Expand market share

Sustain profitability

Slower response to customers

Fail compliance

Increased costs

Hard to get and keep staff

Loose market share

Companies Must Take a PLM Approach Lifecycle optimization is the only long-term valid approach

Move forward Fail to act


Do You Think This Is PLM? Or only your management?

Not What I Need

Expensive

Difficult

Complicated

Confusing


Simplify & Clarify Take one step at a time

Begin with the basics - establish a data vault

Build incrementally – implement a business process

Add new capabilities as needed

Grow as you need – only do what you need to do

PLM is what YOU need it to be


Doing nothing means you cannot survive, i.e.,… Do not want to understand PLM approach

Want to stay with the traditional ways of workings

Want to have excessive, complex solutions, not simple ones

Refuse to co-operate with 3rd parties on solutions and technology

May be okay, if you want to keep legacy business processes and doing business locally

Which do you want to be? A sustainable company or a failing business?

Proactively review your business processes with 3 teams – Management, Users, and IT Support People, Process, and Technology

Lifecycle and systems approach

Prioritize action items using cost benefits analysis

Actions You Need to Take When you return to the office, take action with management & colleagues


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