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Product Life Cycle Managementby Gerrit Muller University of South-Eastern Norway-NISE
e-mail: gaudisite@gmail.comwww.gaudisite.nl
Abstract
Product Life Cycle Management addresses the full life cycles of products, fromconception until disposal. The creation of the product determines largely what canbe done with the product in the later life cycle phases. From business perspectivethe installed base, all systems that are operational in the field, is an asset thatprovides many opportunities. From technical perspective the operational life ofproducts is quite a challenge, because systems keep evolving to fit in the marketand to benefit from technical capabilities. This creates a variety of operationalconfigurations that have to be served.
Distribution
This article or presentation is written as part of the Gaudí project. The Gaudí projectphilosophy is to improve by obtaining frequent feedback. Frequent feedback is pursued by anopen creation process. This document is published as intermediate or nearly mature versionto get feedback. Further distribution is allowed as long as the document remains completeand unchanged.
September 6, 2020status: preliminarydraftversion: 0.2
R1 SW
R1 HWR1 HW
R2 SW
R2 SW
R2 HW
R3 SW
R3 HW
initialdelivery
swupgrade
initialdelivery
swupgrade
R3 SW
R2 HW
initialdelivery
R3 SW
R3 HW
forklift
upgrade
How long are new functions
compatible with older
system configurations?
When to break compatibility?
When does the customer pay
for an upgrade?
When to retrofit?example
Try to run Windows Vista
on your 1GB computer from
2005...
Figure Of ContentsTM
introduction
from conception to disposal
product life cycle management
process
business
the money dimension
heart beat of changes
the time dimension
complexity
huge number of configurations
conclusion
Product Life Cycle Management2 Gerrit Muller
version: 0.2September 6, 2020
PLMlogo
Introduction: Basic System Life Cycle
introduction
from conception to disposal
creation production operation disposalconception
product life cycle management
process
business
the money dimension
heart beat of changes
the time dimension
complexity
huge number of configurations
conclusion
Product Life Cycle Management3 Gerrit Muller
version: 0.2September 6, 2020
PLMlogoIntroduction
System Life Cycle after Creation
system
order
using
local
changes, e.g.accounts
procedures
ma
inte
na
nce
up
gra
de
using
orde
ring
com
pone
nts
man
ufac
turin
g
shipping
installatio
n
shipping
installatio
n
refu
rbishing
shipping
secondary
use dis
po
se
ma
inte
na
ncead
d o
ptio
n
sales
Product Life Cycle Management4 Gerrit Muller
version: 0.2September 6, 2020
MALCsystemLifeCycle
Volume of Installed Base versus New deliveries
20
08
20
05
20
00
19
95
installed base
decommisioned
initial deliveries
legend
installed base
10..20 times
initial deliveries
this is an entirely fictitious case
Product Life Cycle Management5 Gerrit Muller
version: 0.2September 6, 2020
PLMvolume
Case: X-ray Catherization System
Product Life Cycle Management6 Gerrit Muller
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PLMxraySystemPhoto
Product Related Life Cycles
system
creation
system
productionsystem
sales
service
individual systems
disposalupgrades and options
productionupgrades and options
sales
upgrades and options
creation
Product Life Cycle Management7 Gerrit Muller
version: 0.2September 6, 2020
MALCproductLifeCycle
introduction
from conception to disposal
product life cycle management
process
business
the money dimension
heart beat of changes
the time dimension
complexity
huge number of configurations
conclusion
Product Life Cycle Management8 Gerrit Muller
version: 0.2September 6, 2020
PLMlogoProcess
Simplified process view
strategyprocess
customer
supplying business
value
product creationprocess
customer oriented (sales,
service, production) process
people, process and technologymanagement process
Product Life Cycle Management9 Gerrit Muller
version: 0.2September 6, 2020
RSPprocessDecomposition
Positioning PLM
strategyprocess
customer
supplying business
value
product creationprocess
customer oriented (sales,
service, production) process
people, process and technologymanagement process
Product Life Cycle Management
Product Life Cycle Management10 Gerrit Muller
version: 0.2September 6, 2020
PLMprocessPositioning
introduction
from conception to disposal
product life cycle management
process
business
the money dimension
heart beat of changes
the time dimension
complexity
huge number of configurations
conclusion
Product Life Cycle Management11 Gerrit Muller
version: 0.2September 6, 2020PLMlogoBusiness
Product Margin = Sales Price - Cost
material
labour
miscellaneous
margin
cost
pri
ce
sale
s p
rice
Cost per product,
excluding fixed costs
Margin per product.
The margin over the sales volume,
must cover the fixed costs, and generate profittransportation, insurance,
royalties per product, ...
purchase price of components may cover
development cost of supplier
retailer margin
and costs
stre
et p
rice
Product Life Cycle Management12 Gerrit Muller
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SFCmargin
Profit as function of sales volume
sales volumein units
$
income
expenses
break even
point
profit
expected
sales volume
fixe
d c
ost
s
variable
Product Life Cycle Management13 Gerrit Muller
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SFCprofitAndSalesVolume
Investments, more than R&D
research and development
NRE: outsourcing, royalties
marketing, sales
training sales&service
financing
including:
staff, training, tools, housing
materials, prototypes
overhead
certification
strategic choice:
NRE or per product
business dependent:
pharmaceutics industry
sales cost >> R&D cost
often a standard staffing rate is used
that covers most costs above:
R&D investment = Effort * rate
Product Life Cycle Management14 Gerrit Muller
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SFCinvestments
Income, more than product sales only
products
options,
accessories
other recurring
income
services
sales priceoption * volumeoption
sales priceproduct * volume product
incomeservice
options
services
content, portal
updates
maintenance
license fees
pay per movie
Product Life Cycle Management15 Gerrit Muller
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SFCincome
introduction
from conception to disposal
product life cycle management
process
business
the money dimension
heart beat of changes
the time dimension
complexity
huge number of configurations
conclusion
Product Life Cycle Management16 Gerrit Muller
version: 0.2September 6, 2020
PLMlogoTime
Example: Evolution of X-ray Systems
1980 1985 1990 1995 2000 2005
catherization lab
k
V
m
A
interfaces
catherization lab
k
V
m
Amonitorin
g
ultra
sound
tip
positionin
g
PC'sCardiology
Radiology
Hospital
Information System
PACS
MR scanner
CT scanner
k
V
m
A
electro-mechanical
components
autonomous
subsystems
synergycardio/vascular
kV
m
A
vascular
kV
m
A
system control
system of systems
Product Life Cycle Management17 Gerrit Muller
version: 0.2September 6, 2020
FAIxrayTimeline
Creation Chain
aligned
strategy, processes,
tools, repository
independent
strategy, processes,
tools, repository
shared
strategy, processes,
tools, repository
product
creator &
integrator
component
creator
component
creator
off the shelf
component
supplier
component
creatorpartner
product
competitor
complementor
in house
customer
privileged
customer
direct
customer
customer
via reseller
Product Life Cycle Management18 Gerrit Muller
version: 0.2September 6, 2020
PEVOCcreationChain
Example: X-ray Catherization System
catherization lab
kV
mA
monitoring
ultra
sound
tip
positioning
PC'sCardiology
Radiology
Hospital
Information System
PACS
MR scanner
CT scanner
X-ray catherization environment anno 2005
fast changing
PC technology
partners
slow changing
Xray and
mechanical
technology
medium changing
electronics
slow changing
infrastructure
Product Life Cycle Management19 Gerrit Muller
version: 0.2September 6, 2020
PLMxraySystem
Example of Time Scale Model for Changes
1 year
commodity
hardware
and
software
new generation of
magnets
gradients
detectors
major SW
release
minor SW
release
workstation
useful life
MR
scanner
useful life
10 years
procedural
change
legislation
change
clinical
prototype
problem
response
3 months
Product Life Cycle Management20 Gerrit Muller
version: 0.2September 6, 2020
HMPAlifecycles
introduction
from conception to disposal
product life cycle management
process
business
the money dimension
heart beat of changes
the time dimension
complexity
huge number of configurations
conclusion
Product Life Cycle Management21 Gerrit Muller
version: 0.2September 6, 2020
PLMlogoVariation
Product Configurations Evolve Continuously
D
A B C
F G H
D
A B
F G
product 1
product 2
J
I
D
A' B C
F' G' H
K
L
D
B
J
I
F' G'
A' K
L
product 1'
product 2'
R1, 1995 R2, 1996
A' B C
F'' G''
K
L'
D'
M
A' B I
F'' G''
K
L'
D'
J'
R3, 1997
et cetera
Product Life Cycle Management22 Gerrit Muller
version: 0.2September 6, 2020
PLMevolutionConfigurations
Regression of Configuration
A' B C
F'' G''
K
L'
D'
M
initial delivery
R3, 1997
mandatory changes
recommended changes
upgrades
options
repairs
good service
poor service
time pressure
pragmatics
availability
? ? ?
? ?
?
?
D'.?
?
Product Life Cycle Management23 Gerrit Muller
version: 0.2September 6, 2020
PLMregressionConfiguration
Compatibility and Upgrading
R1 SW
R1 HWR1 HW
R2 SW
R2 SW
R2 HW
R3 SW
R3 HW
initialdelivery
swupgrade
initialdelivery
swupgrade
R3 SW
R2 HW
initialdelivery
R3 SW
R3 HW
forklift
upgrade
How long are new functions
compatible with older
system configurations?
When to break compatibility?
When does the customer pay
for an upgrade?
When to retrofit?example
Try to run Windows Vista
on your 1GB computer from
2005...
Product Life Cycle Management24 Gerrit Muller
version: 0.2September 6, 2020
PLMupgradingCompatibility
introduction
from conception to disposal
product life cycle management
process
business
the money dimension
heart beat of changes
the time dimension
complexity
huge number of configurations
conclusion
Product Life Cycle Management25 Gerrit Muller
version: 0.2September 6, 2020
PLMlogoConclusion
Systems Engineering and PLM
system
creation
system
productionsystem
sales
service
individual systems
disposalupgrades and options
productionupgrades and options
sales
upgrades and options
creation
future needs
Systems Engineering: anticipation of future needs
when creating new systems and features
Product Life Cycle Management26 Gerrit Muller
version: 0.2September 6, 2020
PLMsystemsEngineering
Basic System Life Cycle
creation production operation disposalconception
Product Life Cycle Management27 Gerrit Muller
version: 0.2September 6, 2020PLMbasicLifeCycle
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