14ME415 PRODUCT LIFE CYCLE MANAGEMENT

Dr. J.S.Senthilkumaar
Professor in Mechanical Engineering
MITS
Email: drsenthiljs@mits.ac.in
Mobile: 9100904918
14ME415 PRODUCT LIFE CYCLE MANAGEMENT
UNIT -II
PLM VISION AND STRATEGY: Basic points about PLM Vision, The process of PLM
Visioning, A strategy to achieve vision, Principles of the PLM strategy, Preparing for the
PLM strategy, Developing a PLM strategy.
14ME415 PRODUCT LIFE CYCLE MANAGEMENT
Basic points about PLM Vision:
Necessity is the mother of invention, but, sometimes, it is also a source of great
frustration.
1. Identify the most critical points-
- Data management and visibility
- Time-to-market
- Compliance
- Costs
- Collaboration
- Quality assurance
Basic points about PLM Vision:
2. Define your owners- Once you have defined your most pressing needs, you must
elect an “owner.” who will determine the requirements to achieve a better
goal.
• Who can access the data and set security levels?
• Which systems will need to be integrated and which areas should be
mapped?
• How do you manage version control and where can you view the historical
log?
• How do you define, manage and review changes?
• How do you integrate and manage information from suppliers and
distributors?
Basic points about PLM Vision:
3. Be specific- to determine the critical points in detail, to answer questions about how
they will improve metrics and measure success in the future. Again, with Data
Management, they should not only have general goals, but also specific goals:
• What are the current processes to insert the materials costs and attributes
into each system?
• Who is entering this data?
• What is the real cost?
• What is the error percentage for each duplicate record? (e.g. entering the
same material information in the ERP)
• How much time will be saved by integrating PLM with the old system?
• What is the estimate of resource savings (quantity and cost)?
Basic points about PLM Vision:
4. Review targets with partners-Once the “owners” have defined the vision, they
need to align their goals and ensure that the company’s goals will be achieved.
Data Management plays an important role in:
• Compliance
• Costs
• Research and development objectives to meet product requirements
• Consistency and quality in all company units
Basic points about PLM Vision:

5. Create a formal plan-

Once the “owners” define their goals and align them with the partners, create a formal
plan.

This plan should not only include metrics (item 3), but also a timetable for implementing
and monitoring progress and evaluating objectives.

These 5 steps will make your team operate smoothly and effectively. They will serve as a
stimulus, making the team increasingly value the processes implemented and data
gathered in the company, encouraging the continuous growth of all.
 Reasons for developing the PLM Vision
● repeated failure to achieve an objective such as developing a successful product
● an urgent need for funds to maintain the current activity level
● a realization that tomorrow’s needs will differ from today’s
● a need for a common approach across the company.
● current performance being unlikely to result in objectives being met
● a change or expected change in objectives, such as reducing cycle time
● a change or expected change in resources, such as reducing headcount
● a change or expected change in competition
● a change or expected change in the environment, such as loss of a key customer
● the intention to exploit a new opportunity
● a need to solve a particular problem
● a desire to control the organisation’s destiny
● the need to motivate people to achieve a particular objective
● the need to prevent people working at counter-purposes.
Process of PLM visioning
list of factors that may have an impact on PLM might lead to the
following:
● customers
● suppliers
● competitors and other market players
● environmental, geopolitical and other developments
● technological developments
● national, international, and industry standards
● key market and customer requirements.
Process of PLM visioning
• Company strategy
• – company mission and objectives
• – company philosophy and beliefs
• – company Vision, strategy, and plans
● Market
• – competitors • – company organisation
• – customers • – company leadership
• – progress • – departmental strategies
• – globalisation • – expected company and business development
• – stockholders • – key business success factors
• – banks
• – projected company resources and capabilities
• – venture funds.
• – company targets
• – company expectations
• – company alliances and partners
• – partnering strategies
• – outsourcing strategies
• – sales targets
• – product range
• – innovation management policy
• – alliance management.
 Process of PLM visioning
● Product development/product support
organisations
– philosophies, culture and leadership
● Customers
– objectives, Vision, strategy, plans and metrics
– structure and organisation
– location – capacity
– number – location
– orientation
– type. – management structure
• Relationships between departments – management skills
– interdepartmental communication – management training
– understanding of other departments’ – attitude to risk
requirements
– breakthrough or frequent update approach
– trust of other departments
– conflict resolution
– outsourcing
– feedback – project management techniques
– role and rank of departments within the – risk management.
company
– relationships of the departments with
the outside world
– supplier and customer involvement.
 Process of PLM visioning
● Products
– future product and market
scope, emphasis and mix
– product range
– customisation
– sources of competitive
advantage
– type of product
– incorporation of new
technology
– multi-technologies in the
product and process
– simplicity/complexity of
design
– standardised material, parts – costs
and assemblies
– product cost
– prototypes
– product definition
• Product lifecycle – supplier involvement
– new product development – outsourcing
– portfolio management
– lead times – requirements definition and – testing
– embedded software management – manufacturing
– product portfolio
– product portfolio, today – technical publications
– product portfolio, in five years – assembly
– product idea – research
– installation
– customer requirements – system engineering – field service
– customer feedback – idea management – help desk
– services provided on – design – upgrading
products – development – refurbishment
– services provided around – process planning – maintenance
products – NC programming – repair
– level of functionality – lifecycle support – overhaul
– volumes – release – recycling
– change management – disposal.
– process definition
– internet-enabled?
– process measures
– impact on society
– process ownership
– sustainable development
– process management
– elimination of waste
– process improvement
 Process of PLM visioning
● PLM – beliefs Information
– definition – involvement in – information structure
– scope improvement – information communication
– description initiatives
– understanding – – career – information management
benchmarking – processes development – information flow
– activities – human communications
– tasks. – job content
– culture – electronic communications
● People who work in – databases
the lifecycle – facilities
– hire and fire – knowledge
– knowledge – knowledge management
– roles
– training – technical publications
– titles
– professionalism – marketing publications
– job descriptions
– rewards and – sales brochures
remuneration – offices
– mobile devices. – on-line sales catalogues
– skills
– Web
– skill transfer
– intranet
– enthusiasm
– intellectual property issues.
– ambitions
– expectations
 Process of PLM visioning
● Technology
– product technology
– process technology
– technology watch
– new technology awareness
– new technology uptake.
● Information and communication systems
– computer infrastructure
– computer systems
– applications
– CAD, CAE, CAM, PDM
– ERP, SCM, CRM
– interfaces with ERP
– interfaces with SCM
– interfaces with CRM.
● Practices
– techniques
– methodologies
– best practices.
● Performance metrics
– lead times
– financial ratios
– percentage spend on training
– customer service metrics
– customer satisfaction monitoring
– first pass yield
– engineering productivity
– value-added
– continuous improvement
– extent of cross-functional working
– benchmarking
– on-time delivery ratio.
● Quality
– TQM
– cost of quality
– prevention
– assurance
– control.
 Process of PLM visioning
● Standards
– company
– industry, e.g. FDA
– national, e.g. DIN
– international, e.g. ISO.
● Society
– environment
– sustainable development
– pollution
– global warming.
● Finance
– capital spending
– cost structure
– budget
– cost justification
– project funding
– investment in support technology.
A Strategy to achieve the Vision
Once PLM Vision defined : People want to know
• what the organisation will look like in five years.
• how the resources in the product life- cycle should be deployed,
structured and used in the next five years to achieve the Vision.
• how to organise the change from today’s organisation to the future
organisation.
England and Japan had strategies based on “control of the seas”.
Germany and the US had strategies based on “control of the air”.
 Key factors of war strategies for PLM
• As the environment and the resources change, strategies change
• A strategy can be offensive or defensive
• A small range of simple strategies
• The choice of strategy depends on the objectives
• The choice of strategy depends on the objectives
• There’s a hierarchy of strategies
• t’s dangerous to change strategy during implementation
 Principles of military strategy
● objective (keep the basic objective uppermost in mind; don’t be
distracted by less important matters)
● offensive (a defensive strategy is sometimes appropriate, but in the
long run, victory can only be achieved with an offensive strategy)
● unity of command/co-operation (modern warfare brings together
different types of forces – army, navy, air force – which, to succeed,
have to work together under a unified command)
● concentration of force/effort (in battle, concentrate forces and aim
them against an enemy weak point)
● economy of force/effort (use minimum force to achieve an
objective; any additional force is wasted)
 Principles of military strategy
● manoeuvre/flexibility (the strategy should not be rigid, but allow different
options to be followed depending on the evolution of events)
● surprise (aim to outwit the enemy, striking when and where least expected)
● security (take action to prevent the enemy achieving surprise)
● simplicity (complex strategies aren’t well-understood, don’t get properly
implemented, and lead to defeat)
● maintenance of morale (one’s own forces may be defeated if their morale, or
the morale of their civilians, is low)
● administration (a successful result in battle or in war requires enormous
administrative and logistic support).
 Principles for the PLM strategy
1. Focus on the product

2. Involve the customer, listen to product feedback

3. Simple slim-line organization

4. Highly skilled people

5. Use of modern technology

6. Continually increase sales and quality, reduce time cycles and costs
The PLM Strategy
1. Focus on the product 4. Use of modern technology
• Product focused business(PFB) • CAD
• Chief product officer (CPO) with unity of command over product • PDM
• Five-year product plan and strategy • Simulation
• Part reuse • Rapid prototyping
• Integrated product portfolio
2. Involve the customer, listen to product feedback 5. Simple slim-line organisation
•Listen to the voice of customers •Simple organizational structure
•Customer involvement •Clearly defined processes across the product lifecycle
•Product feedback •Simple product lifecycle methodology
•Listen to the voice of the product •Cross- functional team

3. Highly-skilled people
•Hiring good people 6. Continually increase sales and quality, reduce time cycles
•Training and costs
● increase sales
•Generalists and specialists
● increase product and service quality
•Soft skills
● reduce time cycles
● reduce costs.
 Preparing for the PLM strategy
A good, well-defined and well-communicated PLM strategy is important
because it:
● provides the best chance of achieving the PLM Vision
● makes sure resources and capabilities are used to their best
● makes sure everybody knows what’s happening
● makes sure all resources are aligned in the same direction
● enables planning decisions to be taken in a coherent way.
A strategy describes:
● the way to achieve objectives
● how resources will be organised, managed and used
● policies governing use and management of resources.
 How to organise, manage and use the resources is a key part of strategy
development.
● facilities such as offices, manufacturing plants, service ● working methods and techniques such as
centres Concurrent Engineering and QFD
● equipment such as computers, office equipment,
machine tools, assembly line machinery ● communication in terms of communication
● people and their skills, morale, know-how equipment, communication with customers
● supplies such as raw materials and energy ● command and control in terms of management
– and waste materials of lifecycle activities, project and product
● finance, for example, for capital investment and for management,
financing projects ● space favourable locations
● reputation with potential customers and employees ● alliances with other organisations,
● time, in the form of response time, development companies, government, etc.
time, time-to-market
● standards such as STEP and other ISO standards
● knowledge, information, data, documents. For
example, knowledge of tasks, ● existing products, the product portfolio, products
activities and processes, information about products and under development
parts ● customers.
● information systems such as CAD, PDM and ERP
● processes such as product development and
retirement processes
 Developing a PLM strategy
Developing and implementing a PLM strategy to achieve the PLM Vision is a
five- step process:
● collecting information
● identifying possible strategies
● selecting a strategy
● communicating the selected strategy
● implementing the strategy.
 Questions asked for the first time in the context of strategy development
● What is the overall business objective? capacity, added value, time to market, variety, batch size)?
● What is the overall business strategy? ● What is the overall basis for competition? ● What are we good at doing?
● What are the activities of the product lifecycle? ● What could we be good at doing?
● What does PLM currently do to create competitive advantage? ● What are we bad at doing?
● What else could PLM do to create competitive advantage? ● What and where are the current resources in the product lifecycle?
● Who are the internal customers of the activities of the product lifecycle? ● How are they organised?
● Who are the external customers of the activities of the product lifecycle? ● Why are they organised like this?
● What are the needs of the customer? ● What are their roles?
● What has to be done to satisfy the customer? ● Who is responsible for the activities in the product lifecycle?
● What is value to the customer? ● What are our core capabilities?
● What are key elements of customer service? ● What key capabilities of the lifecycle are exploited?
● Where are the customers? ● What key capabilities of the lifecycle could be exploited?
● How do the customers buy? ● Which of the products and services in the lifecycle are the most profitable?
● How do we measure customer satisfaction? ● Who are the most important customers?
● What are our products and services? ● What do the most important customers buy?
● What is unique about our products? ● Is competition price sensitive?
● Where are we strong? ● How are we perceived by our customers?
● Where are we weak? ● How do we communicate with our customers?
● Where are we strongest? ● How successful have we been in meeting our objectives in the past?
● What are the key skills? ● What has prevented us from meeting our objectives?
● What is the key know-how? ● How do we view our current performance?
● What is the key resource? ● What were our past strategies?
● What is the key activity? ● How successful were they?
● What is the critical technology?
● What is unique about our technology?
● Are our people sufficiently dynamic and innovative?
● What are the key issues we face?
● What are the key metrics of the activities of the product lifecycle (price, cost,
Questions continued….
● How were they developed? ● What are our key processes?
● How were they communicated? ● What are our key application systems?
● How were they implemented? ● Are our processes clearly defined?
● What were our past plans? ● Do we have our product data under control?
● How successful were they? ● Do we have our product workflow under control?
● What assumptions have turned out to be invalid? ● How could we improve our product end-of-life activities?
● What have been the major recent milestones in performance ● How could we improve our customer support activities?
improvement?
● How good are we at making use of ideas generated internally
● What went wrong? Why? and externally?
● What went right? Why? ● What and where are the current revenue sources in the
lifecycle?
● What has recently changed? What are its implications?
● Which products have performed worst? Why?
● What is currently changing? What are its implications?
● Which development projects performed worst? Why?
● What are the basic beliefs of the people working in the
lifecycle? ● How often do we reuse parts?
● What are the unwritten rules across the lifecycle? ● How well do we manage product development projects?
● What are the fundamental assumptions? ● How well do we manage product support projects?
● What gives us most problems? ● How well do we manage customer requirements?
● What should we do differently? What is stopping us from doing ● How well do we structure product families?
it?
● Is the product portfolio clear to everyone internally?
● Is there a clear plan for evolution of the products?
The benefits of benchmarking:
● making the organisation’s relative performance very clear
● providing clear quantitative targets to management
● providing targets that are not just theoretical visions of the future,
but are already practical reality in other companies
● getting immediately useful ideas for better products and processes
● providing impetus for management to start behaving proactively,
and to look for ways of working which will bring significant
improvements.
A benchmarking activity is made up of four phases:
● setting up a team. Training the team to carry out the activity
● understanding the organisation, and assessing its strengths and weaknesses
● identifying industry leaders and competitors. Understanding their strengths
and weaknesses. Researching and visiting these companies to improve
understanding. (A lot of preparation is required for visits. Without preparation,
teams only get a fraction of the possible benefit from visits.)
● incorporating what has been learned, and improving on it.