guide to product lifecycle management
DESCRIPTION
One of the secrets of successful technology companies is the capability and capacity of their product management function. Awareness for product management need arises from signs such as disconnect between the strategic vision of the CEO and day-to-day product development activities, lack of communication and coordination between engineering, marketing, sales, finance and legal groups. missed launch dates, or lost opportunities in competitive situations with large accounts. This Technology Multipliers webinar provides a comprehensive overview of product lifecycle management concepts, process, and keys to success for technology companies.TRANSCRIPT
© 2011 Technology Multipliers, LLC
Kerim Tumay
Managing Director
September 2011
© 2011 Technology Multipliers, LLC
Outline
• Why is Product Development process a challenge?
• What is PLM?
• Benefits & Business value
PLM Concept
• Assessment and Planning
• Complete Implementation
• Measurement & Process Improvement PLM Process
• Software PLM Technologies
• Pre-implementation
• Implementation
• Post-implementation Success Factors
© 2011 Technology Multipliers, LLC
Why is Product Development process a challenge?
Lack of formal requirements management
Inadequate portfolio management resulting in premature
launch or retirement
Unresolved design, engineering, manufacturing issues
Lack of rapid prototyping and virtual product development
Inability to facilitate real-time collaboration from product
concept to retirement
Complexity of change management
Poor supply chain visibility
PLM Concept PLM Process PLM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
What is PLM?
PLM integrates the product information and processes for ideation, design, engineering, manufacturing, and maintenance through the life cycle of products.
PLM Concept PLM Process PLM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Benefits & Business value
PLM Concept PLM Process PLM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
PLM Benefits
PLM Concept PLM Process PLM
Technologies
Success Factors
Benefit Improvement
Reduce Time to Market ~ 30%
Reduce Product Development Cost ~ 20%
Reduce Product Cost ~ 20%
Reduce Cost of Quality ~ 20%
Reduce Change Management Cost ~40%
Source: VDI 2219 – Information technology in product development
© 2011 Technology Multipliers, LLC
Assessment and Planning
PLM Concept PLM Process PLM
Technologies
Success Factors
Review the company vision, business strategy
and goals
Document your product lifecycle
Assess the effectiveness of your
product development
processes
Build a model of your should-be
product lifecycle process
Define a list operational metrics
and targets for improvement
List business requirements and
define PLM strategy
Evaluate PLM software solutions
and solution providers
© 2011 Technology Multipliers, LLC
Complete Implementation
Product Data Management
Program, Project
Management
Virtual Product
Development and
Collaborative Design
Manufacturing and Supply Planning
PLM Concept PLM Process PLM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Product Data Management
Bill of Materials (BOM)
Management
Engineering Change Control
Configuration management
Classification
Security Management
PLM Concept PLM Process PLM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Product/ Program/ Project Management
Requirements Management
Project Portfolio
Management
Regulatory and Environmental
Compliance Search
Process Management
PLM Concept PLM Process PLM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Virtual Product Development and Collaborative Design
Mechatronics process
management
Visualization
Concurrent design and
test
Change management
Software Configuration Management
Knowledge Management
PLM Concept PLM Process PLM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Manufacturing and Supply Planning
Document and part
dispositioning
Part manufacturing
planning
Assembly planning
Process planning
Plant optimization
PLM Concept PLM Process PLM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Measurement & Process Improvement
PLM Concept PLM Process PLM
Technologies
Success Factors
Business Value Drivers Performance Indicator
Increased Revenue Faster time to market Percent gross margin
Increased Productivity Reduced design/ engineering cost Time savings * hourly rate
Reduced design validation cost Time savings * hourly rate
Reduced prototyping cost Time savings * hourly rate
Synchronous development/test Time savings * hourly rate
Reduced Cycle Time Reduced time to search product info Time savings * hourly rate
Reduced time for ECO Time savings * hourly rate
Reduced Development Cost Manual BOM creation/mgt Time savings * hourly rate
Number of Engineering Change Orders Time savings * hourly rate
Manual Requirements mgt Time savings * hourly rate
© 2011 Technology Multipliers, LLC
PLM Software Models
PLM Concept PLM Process PLM
Technologies
Success Factors
Traditional Model Hosted Solutions SaaS Solutions
More Control
Less expensive
© 2011 Technology Multipliers, LLC
Costs and Benefits of PLM
PLM Concept PLM Process PLM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Cost of PLM
Software 30%
Maintenance 6%
Hardware 8%
Education 8%
Process Optimization
8%
Implementation 25%
Training 5%
Data Migration 5%
Support & Mentoring
5%
Source: PLM Technology Guide
PLM Concept PLM Process PLM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Understand the business strategy
Develop as-is and should-be process
models of your product lifecycle process
Evaluate and select your PLM software
Keys to Success with PLM
PLM Concept PLM Process PLM
Technologies
Success Factors
Planning
&
Assessment
© 2011 Technology Multipliers, LLC
Start with a tangible business problem
Designate PLM advocate,
process owners and managers
Use common templates
Train the super user(s)
Conduct “lessons learned” sessions
Perform customizations
and integrations
Restrict access to legacy systems
Keys to Success with PLM
Implementation
PLM Concept PLM Process PLM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
Track actual performance indicators using project/process
management tools
Compare your PLM success metrics with
industry best practices
Keys to Success with PLM
Post-Implementation
PLM Concept PLM Process PLM
Technologies
Success Factors
© 2011 Technology Multipliers, LLC
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