A holistic Product Lifecycle Management framework facing the - - PowerPoint PPT Presentation

A holistic Product Lifecycle Management framework facing the challenges of 21st century

• Dr. Julius D. Golovatchev

Oliver Budde Zurich, August 27-29, 2007

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Company Profiles

Best Practice experience combined with scientific excellence provide the basis for a strong partnership for PLM-related projects.

Detecon Research Institute for Operations Management at RWTH Aachen University References

Established: 1977 DETECON Reorganized: 2002 Detecon International GmbH Sales 2006: EUR 148 million 650 consultants Shareholder: T-Systems International GmbH More than 3500 projects in 120 countries Established: 1953, currently with 45 research assistants Chair:

• Prof. Dr. Schuh, Chair of Product

Engineering Employees: 70 permanent employees and further 70 academic and student assistants

Company Profile

Service portfolio: Strategy & Marketing Operations & Performance Technology Industry competence: Telco Digital Media Enterprise and Services Public Sector Research Departments: Product-Management Service Engineering Information Management Several interdepartmental practices

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Company locations + references (excerpt)

Integrated Management and Technology Consulting Global activities, know-how und ‘do-how’ expertise esp. in ICT markets characterize our consultancy services in PLM-related projects. .

Zurich Bangkok

Bonn

Johannesburg Madrid London Mexico City Reston San Mateo Cairo Abu Dhabi Beijing Aachen DETECON offices Research institute office (FIR)

Detecon (Switzerland) AG

Löwenstrasse 1 8001 Zurich Switzerland Internet www.detecon.ch

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Content

1. Motivation 2. Current status of PLM 3. Integrated PLM-approach 4. Case-study

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Sarbanes Oxley Act Regulation Treat Act

Supplier Device&Network OEMs Service- provider Product

End-device Software Email flat-rate Triple play Phone book IP TV

Product

End-device End-device Software Software Email flat-rate Email flat-rate Triple play Triple play Phone book Phone book IP TV IP TV

• 1. Motivation

Management of the Extended Product Globalization Legal Frameworks Various challenges in nowadays economy provoke product and process complexity, which need to be addressed.

Challenges

Current Challenges

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Evolvement of PLM

• 2. Current status of PLM

PLM offers:

• Higher innovation rate
• Less coordination effort and

therefore a higher efficiency in distributed and globalized environments

• Product cost transparency

along the lifecycle PLM pitfalls:

• many initiatives only focus on

isolated PLM-aspects and so don’t leverage the full potential

• Proper Business/IT-

Alignment is a critical success factor for implementing an integrated PLM Remarks Business- Integration

MRP/ CAD

Integrated PLM

ERP PLM / SOA

Islands of Automatisation Business Process Integration Dynamic Networks

IT- Integration Isolated PLM- Solutions Less used system/approa- ches

Document- Management Classification Change Management Holistic approach Networked elements Collaboration-driven

A holistic approach for the product lifecycle management and the associated process is essential to counter the challenges.

Source: FIR Research

Evolvement of PLM

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With an effective PLM-strategy companies can overcome the above challenges to successfully meet their growth and profitability objectives. Success factor PLM Relevance of Product Lifecycle Management Product Lifecycle Management

=

Success factor

High customer expectations Fast changing markets Increasing competitive pressure Effective Time2Market

• 1. Growing relevance of PLM

Short lifecycle innovations High product (portfolio) complexity

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Four pillars of the PLM

• 3. Integrated PLM- Approach

Four pillars build the fundament for a successful implemenation of the integrated PLM- Approach. Integrated PLM- Approach and Strategy PLM-Process and Organization Product Meta-Model PLM IT- Architecture Lifecycle Value Management Holistic view Transformation - Management Innovation & PLM Culture

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All relevant activities from three different perspectives (market, technical, finance) on the PLM have to be identified and documented in the process definition. PLM Process (Overview) Remarks

1. PLM- Process consists of 7 phases, whereby each phase ends with a gate decision by the Product Board 2. Each phase is further detailed by considering the three perspectives

• f the PLM

3. Metrics-based Management safeguards the efficient and effective implementation

Innovation- Mgnt Evaluation Planning Implementation Launch Marketing Mgnt Exit Market Perspective Technical Perspective Financial Perspective Business Plan

Market& Capabilities Analysis Technical Evaluation Financial Rating Market Roll-out Planning Develop technical concept Detailing Business Case Im- plement Market Plan Technical Implemen- tation Adjust Business Case Launch Product Go-Live technically Monitor Business Case Monitor& Manage KPIs Monitor& Ensure Product& Process Control Business Case

Innovation-Delivery

Market Exit Technical Exit Finalize Business Case 1 2 3 4 5 6 7

Idea Paper Detailed Design Product Description Launch Report Mgnt. Report

Gate 1 Gate 2 Gate 3 Gate 4 Gate 5 Gate 6 Approval by the Product Board

• 3. Integrated PLM- Approach

PLM Process 1 2 3

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Definition and requirements on product data structure

• 3. Integrated PLM- Approach

The product database and the corresponding processes should be implemented by considering the existing processes, company structures and cultures.

Sales and market view Internal production view

Portfolio branch Product Modules Components Modules

Module cat I Module cat II … … …

Realization in PLM as well as stock management systems Realization in production systems and order management

IT- Architecture Product realization Transfer payments Controlling: Production and service Marketing and advance perfor- mance mgmt Billing Processes

One master product data management fits all needs of the main processes and its interfaces. Product Meta-model

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Architecture View For competing in an ever-changing environment, the IT-Architecture has to offer a wide variety of IT-functionality for supporting the PLM- process. At the same time the IT- complexity must be manageable.

PLM IT-Architecture

can be partitioned in three groups

DSS OSS Integration

Middleware

Single PLM-System

does not hold the promise of enabling a seamless and flexible PLM-process

Re-use of legacy

systems and existing middleware solutions ensure a reduced OPEX and access to a wide variety of IT- functionality

Remarks

Product-Development Marketing Management Product Exit Management CAS Strategic Resource Management Value Management Operational Support System Business Applications

(Supplier)

Multi-Project- Management System Product-Data-Management System Collaboration Tools Workflow- Management System Product Modeling System Business Applications SCM ERP CRM CAD Decision Support System

PLM- Process

Business Applications

(Customer)

Integration-layer (SOA) Product-Development Marketing Management Product Exit Management CAS Strategic Resource Management Value Management Operational Support System Business Applications

(Supplier)

Multi-Project- Management System Product-Data-Management System Collaboration Tools Workflow- Management System Product Modeling System Workflow- Management System Product Modeling System Business Applications SCM ERP CRM CAD Decision Support System

PLM- Process

Business Applications

(Customer)

Integration-layer (SOA)

• 3. Integrated PLM- Approach

PLM IT-Architecture DSS OSS SOA

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Three building blocks of Lifecycle Value Management Ability to support products with the most suitable platforms across their lifecycle

• High degree of data

consistency and transparency

• Standardized reporting for all

KPIs throughout the entire PLM process

• Product master data

management as prerequisite for process automation

• Simple data exchange with

production and sales systems

Information View

PLM Reporting and Controlling Customer Needs Management Lifecycle Value Management Value Oriented Portfolio Management

• 3. Integrated PLM- Approach

Management of the product post-launch through the growth, maturity, and decline stages of the product life cycle to ensure the profitability of the product over its whole lifecycle. Lifecycle Value Management

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• 4. Case Study

Introduction of a modular product definition on a global scale from a customer perspective

Design and implementation of three variants

• f Stage/Gate PLM processes, taking different

product types into account Introduction of fuzzy gates for a lean decision making process Concept development and implementation of Core Information Objects DMS/Workflow Mgnt/Project-Mgnt. Sys. Implementation of the product concept within the ERP-system

Introduction of a value-based portfolio management process

Impact

Time to Market Organizational implementation Product success rate Integration Consolidation Effective product controlling Portfolio complexity Master Data Management

Results Approach The holistic approach must be designed and implemented hand in hand with the C-level.

Meta Model Process IT LC-Value Mgnt

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Contact Details

Questions and Answers

Dipl.-Wirt.Inform..

Oliver Budde

Informationmanagement Telefon: +49/241/47705-512 Fax: +49/241/47705-199 Email:

• liver.budde@fir.rwth-aachen.de

Pontdriesch 14/16 52062 Aachen www.fir.rwth-aachen.de

• Dr. Julius D. Golovatchev

Managing Consultant

Detecon International GmbH Oberkassler Straße 2 53 227 Bonn (Germany) Telefon ++49 228 700 26 27 Telefax ++49 228 700 26 07 Mobil ++49 151 12217915 Julius.Golovatchev@detecon.com

Member of

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