product life cycle management slides - gaudisite.nl

Product Life Cycle Managementby Gerrit Muller University of South-Eastern Norway-NISE

e-mail: [email protected]

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

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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


creation production operation disposalconception


process

business

the money dimension


the time dimension

complexity


conclusion



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



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



PLMvolume

Case: X-ray Catherization System



PLMxraySystemPhoto

Product Related Life Cycles

system

creation

system

productionsystem

sales

service

individual systems

disposalupgrades and options

productionupgrades and options

sales

upgrades and options

creation



MALCproductLifeCycle

introduction



process

business

the money dimension


the time dimension

complexity


conclusion



PLMlogoProcess

Simplified process view

strategyprocess

customer

supplying business

value

product creationprocess

customer oriented (sales,

service, production) process

people, process and technologymanagement process



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



PLMprocessPositioning

introduction



process

business

the money dimension


the time dimension

complexity


conclusion


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



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



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



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



SFCincome

introduction



process

business

the money dimension


the time dimension

complexity


conclusion



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



FAIxrayTimeline

Creation Chain

aligned

strategy, processes,

tools, repository

independent


tools, repository

shared


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



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



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



HMPAlifecycles

introduction



process

business

the money dimension


the time dimension

complexity


conclusion



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



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'.?

?



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...



PLMupgradingCompatibility

introduction



process

business

the money dimension


the time dimension

complexity


conclusion



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



PLMsystemsEngineering

Basic System Life Cycle

creation production operation disposalconception


version: 0.2September 6, 2020PLMbasicLifeCycle

product life cycle management slides - gaudisite.nl

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