guide to product lifecycle management

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© 2011 Technology Multipliers, LLC Kerim Tumay Managing Director September 2011

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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

Page 1: Guide to Product Lifecycle Management

© 2011 Technology Multipliers, LLC

Kerim Tumay

Managing Director

September 2011

Page 2: Guide to Product Lifecycle Management

© 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

Page 3: Guide to Product Lifecycle Management

© 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

Page 4: Guide to Product Lifecycle Management

© 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

Page 5: Guide to Product Lifecycle Management

© 2011 Technology Multipliers, LLC

Benefits & Business value

PLM Concept PLM Process PLM

Technologies

Success Factors

Page 6: Guide to Product Lifecycle Management

© 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

Page 7: Guide to Product Lifecycle Management

© 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

Page 8: Guide to Product Lifecycle Management

© 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

Page 9: Guide to Product Lifecycle Management

© 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

Page 10: Guide to Product Lifecycle Management

© 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

Page 11: Guide to Product Lifecycle Management

© 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

Page 12: Guide to Product Lifecycle Management

© 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

Page 13: Guide to Product Lifecycle Management

© 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

Page 14: Guide to Product Lifecycle Management

© 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

Page 15: Guide to Product Lifecycle Management

© 2011 Technology Multipliers, LLC

Costs and Benefits of PLM

PLM Concept PLM Process PLM

Technologies

Success Factors

Page 16: Guide to Product Lifecycle Management

© 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

Page 17: Guide to Product Lifecycle Management

© 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

Page 18: Guide to Product Lifecycle Management

© 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

Page 19: Guide to Product Lifecycle Management

© 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