Kerim Tumay

Managing Director
September 2011
© 2011 Technology Multipliers, LLC
Outline

• Why is Product Development process a

challenge?
PLM Concept • What is PLM?
• Benefits & Business value

• Assessment and Planning

PLM Process • Complete Implementation
• Measurement & Process Improvement

PLM Technologies • Software

• Pre-implementation
Success Factors • Implementation
• Post-implementation

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

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

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

What is PLM?

PLM integrates the product information and processes for

ideation, design, engineering, manufacturing, and maintenance
through the life cycle of products.

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

Benefits & Business value

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

PLM Benefits

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
 PLM Concept PLM Process PLM Success Factors
Technologies

Assessment and Planning

Review the
company vision,
business strategy
and goals

Evaluate PLM
software solutions Document your
and solution product lifecycle
providers

Assess the
List business effectiveness of your
requirements and product
define PLM strategy development
processes

Define a list Build a model of

operational metrics your should-be
and targets for product lifecycle
improvement process

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

Complete Implementation

Product Data
Management

Manufacturing Program,
and Supply Project
Planning Management

Virtual
Product
Development
and
Collaborative
Design

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

Product Data Management

Bill of Materials
(BOM)
Management

Security Engineering
Management Change Control

Configuration
Classification
management

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

Product/ Program/ Project Management

Requirements
Management

Project
Process
Portfolio
Management
Management

Regulatory and
Search Environmental
Compliance

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

Virtual Product Development and Collaborative Design

Mechatronics
process
management

Knowledge
Management Visualization

Software Concurrent
Configuration design and
Management test

Change
management

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

Manufacturing and Supply Planning

Document and
part
dispositioning

Part
Plant
manufacturing
optimization
planning

Process Assembly
planning planning

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

Measurement & Process Improvement

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 Concept PLM Process PLM Success Factors
Technologies

PLM Software Models

Less expensive

Traditional Model Hosted Solutions SaaS Solutions

More Control

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

Costs and Benefits of PLM

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

Cost of PLM

Data Migration Support &

5% Mentoring
5%
Training
5%
Software
30%

Implementation
25%

Maintenance
6%
Hardware
Process
8%
Optimization Education
8% 8%

Source: PLM Technology Guide

© 2011 Technology Multipliers, LLC
 PLM Concept PLM Process PLM Success Factors
Technologies

Keys to Success with PLM

Understand the business

strategy

Planning
&
Assessment

Develop as-is and

Evaluate and select your should-be process
PLM software models of your product
lifecycle process

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

Keys to Success with PLM

Start with a
tangible
business
problem

Designate PLM
Restrict access
advocate,
to legacy
process owners
systems
and managers

Implementation
Perform
customizations
Use common
and integrations templates

Conduct
“lessons Train the super
learned” user(s)
sessions

© 2011 Technology Multipliers, LLC

 PLM Concept PLM Process PLM Success Factors
Technologies

Keys to Success with PLM

Track actual
Compare your PLM
performance indicators
using project/process Post- success metrics with
industry best practices
management tools Implementation

© 2011 Technology Multipliers, LLC

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