8/27/2015

TOPIC OUTLINE
Week 4
Benefits of PLM

PLM adaptation

The Benefits

PRODUCT LIFE CYCLE MANAGEMENT

1 2

THE BENEFIT OF PLM THE BENEFIT OF PLM

Managing products more effectively by cohesively
PLM involves linking the technologies and processes for
linking Product Design with Operations. Product Design3D computer aided design, simulation,
Efficiency improvements and innovation gains, which technical communication, and product data management
proper automation can expedite. with the technologies and processes for Operations,
specifically
ifi ll th
those ffor b
building,
ildi manufacturing,
f t i selling,
lli and
d
A common production system, with common computer supporting products.
technology for information storage and retrieval.
PLM got its start in automotive, aerospace, and other
The information is archived and valid for the life of the industries that build very large, very complex products and
product the improvement in communication. systems.
It was designed to provide everyone involved with an up-to-
date view of every product throughout its lifecycle so people
3
could make the right decisions and take the proper actions. 4

Potential Benefit of PLM Four Main Area of Benefit

Reduced Time-to-Market

Improved Design Productivity

p
Improved Concurrent Engineering
g g

Improved Design and Manufacturing Accuracy

Data Integrity Safeguarded

Better Project Planning

Better Management of Engineering Change

5 6

1
 8/27/2015

Impact of PLM
SOME KEY BENEFITS OF PLM
With PLM

Revenue Growth
Greater Innovation
Higher Quality
$ $ Without PLM

$ $

$ $
Income

- -- -
Time
Expenses
Shorter time to market
- .intergration of design & manufacturing
.integration of the extended entreprise

Cost Reduction
.early elimination of design errors
7 .early selection of alternatives 8

PLM ADRESSES EACH INDUSTRY Industry Adaptations

All manufactured goods will be digitally designed, produced
& lifecycle managed Hewlett-Packard Co. uses Windchill from PTC:
-- achieved 80% improvement in design and process reuse.
-- They reduced time-to-market, product cost, and warranty cost.

NEC computers uses Agile Product Collaboration solution suite:

-- 30% savings in monthly engineering workload;
-- 39% reduction in scrap and rework costs.

Rockwell Automation uses Teamcenter from UGS PLM:

-- Manage the engineering change notice system;
-- 50% reduction in ECN cycle time
-- Save US$200 per ECN [total savings: US$ 400,000 in
one business unit]
9 10

Perspectives on adaptation of PLM Perspectives on adaptation of PLM

NECESSITY MARKETING
- companies that are part of global supply chain or design - firmware upgrades on digital cameras, mp3 players; where
chain need collaboration tools the company captures market by an early release, and later
upgrades functionality
MARKETING
- companies with short mean-time-between-upgrades, PRODUCT STRATEGY
e.g. computer manufacturers - Mass customization and modular product design companies
need efficient product architectures to allow part/process
reuse over generations
SECURITY
- Example 1: eCommerce collaboration between potential client GREEN
and designer - companies responsible for recycling of their sold products
- Example 2: Software/hardware security e.g. printer toner cartridges, aluminum cans, plastic or glass
(e.g. Microsoft windows updates) 11 bottles, paper 12

2
 8/27/2015

Perspectives on adaptation of PLM PLM ADRESSES REAL COST REDUCTION

Cost Percentage PLM ERP, SCM, CRM

SERVICE Committed
85%
- companies with long-life products, that need continued Cost
repair, service etc. e.g. automobiles.
1. spare parts for older models must be available More than 70% of p
product p
programs
g costs
2. service manuals are committed during the design phase
3. testing equipment, e.g. testing onboard computers and
microprocessors, must be maintained Expended
Cost
4. Management of product recalls 15%
Ford Explorer, Firestone [2000-2001]: Replaced 13
million tires. Product, Process, Resources Production Maintenance
Nissan motor [2003]: 2.55 million cars recalled to fix design
engine defects; Cost: JPY15 billion. 13
virtual real
14

CHANGE COST VS TIME OBSTACLES TO GREATER PLM

PLM ERP, SCM, CRM INVESTMENTS
Cost
of change PLM not understood
X 1000
Need for cultural changes
Need for process redefinition
X 100 ERP,CRM,SCM get more attention

Concerns about implementation costs

X1 X 10

Product,Process,Ressources design Production Maintenance

Needs high management commitment
15 16

SUMMARY

Benefits of PLM:
financial performance
time reduction

quality improvement

business development

17