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A holistic Product Lifecycle Management framework facing the challenges of 21st century Dr. Julius D. Golovatchev Oliver Budde Zurich, August 27-29, 2007 Company Profiles Best Practice experience combined with scientific excellence provide


  1. A holistic Product Lifecycle Management framework facing the challenges of 21st century Dr. Julius D. Golovatchev Oliver Budde Zurich, August 27-29, 2007

  2. Company Profiles Best Practice experience combined with scientific excellence provide the basis for a strong partnership for PLM-related projects. Research Institute for Operations Detecon Management at RWTH Aachen University Established: Established: 1977 DETECON 1953, currently with 45 research assistants Company Profile Reorganized: Chair: 2002 Detecon International GmbH Prof. Dr. Schuh, Chair of Product Sales 2006: Engineering EUR 148 million 650 consultants Employees: Shareholder: 70 permanent employees and further 70 T-Systems International GmbH academic and student assistants More than 3500 projects in 120 countries Service portfolio: Research Departments: Strategy & Marketing Product-Management References Operations & Performance Service Engineering Technology Information Management 184-JULIUS-GOLOVATCHEV.PPT Industry competence: Several interdepartmental practices Telco Digital Media Enterprise and Services Public Sector Page 1

  3. 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. . Detecon (Switzerland) AG Löwenstrasse 1 8001 Zurich Switzerland Internet www.detecon.ch London Bonn Aachen Reston San Mateo Madrid Beijing Zurich Cairo Mexico City Bangkok Abu Dhabi 184-JULIUS-GOLOVATCHEV.PPT Johannesburg DETECON offices Research institute office (FIR) Page 2

  4. 184-JULIUS-GOLOVATCHEV.PPT Integrated PLM-approach Current status of PLM Case-study Motivation Page 3 Content 1. 2. 3. 4.

  5. 1. Motivation Current Challenges Various challenges in nowadays economy provoke product and process complexity, which need to be addressed. Management of the Extended Product Globalization Device&Network Service- Supplier Triple play Triple play Triple play Email flat-rate Email flat-rate Email flat-rate provider OEMs End-device End-device End-device Software Software Software Product Product Challenges Phone book Phone book Phone book IP TV IP TV IP TV 184-JULIUS-GOLOVATCHEV.PPT Sarbanes Oxley Act Treat Act Regulation Legal Frameworks Page 4

  6. 2. Current status of PLM Evolvement of PLM A holistic approach for the product lifecycle management and the associated process is essential to counter the challenges. Evolvement of PLM Remarks PLM offers: Business- � Higher innovation rate Integration � Holistic approach Less coordination effort and � � Networked elements therefore a higher efficiency in � Collaboration-driven Integrated Dynamic distributed and globalized Networks PLM environments Product cost transparency � along the lifecycle Isolated PLM- Business Process PLM pitfalls: Solutions Integration many initiatives only focus on � Document- Management � � Classification isolated PLM-aspects and so Less used � Change Management don’t leverage the full potential system/approa- Islands of ches Automatisation � Proper Business/IT- 184-JULIUS-GOLOVATCHEV.PPT Alignment is a critical success factor for implementing an MRP/ ERP PLM / IT- integrated PLM CAD SOA Integration Source: FIR Research Page 5

  7. 1. Growing relevance of PLM Success factor PLM With an effective PLM-strategy companies can overcome the above challenges to successfully meet their growth and profitability objectives. Relevance of Product Lifecycle Management High product (portfolio) complexity Increasing Fast changing competitive pressure markets Product Lifecycle Management = Success factor High customer Effective expectations Time2Market 184-JULIUS-GOLOVATCHEV.PPT Short lifecycle innovations Page 6

  8. 3. Integrated PLM- Approach Holistic view Four pillars build the fundament for a successful implemenation of the integrated PLM- Approach. Four pillars of the PLM Integrated PLM- Approach and Strategy PLM-Process Product PLM IT- Lifecycle and Meta-Model Architecture Value Organization Management 184-JULIUS-GOLOVATCHEV.PPT Transformation - Management Innovation & PLM Culture Page 7

  9. 3. Integrated PLM- Approach PLM Process 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 2 3 4 5 6 7 1. PLM- Process Innovation- Marketing Evaluation Planning Implementation Launch Exit Mgnt Mgnt consists of 7 phases, whereby each phase ends with a gate 2 Perspective 1 Im- Market Market& Market Monitor& decision by the Launch Market plement Capabilities Roll-out Manage Product Exit Market Product Board Analysis Planning KPIs Plan Innovation-Delivery 2. Each phase is Description Perspective Business further detailed by Technical Monitor& Detailed Product Launch Develop Design Technical Report Report Mgnt. Paper Go-Live Technical Technical Plan Idea Ensure technical Implemen- considering the technically Exit Evaluation Product& concept tation Process three perspectives of the PLM Perspective Financial Monitor Finalize Detailing Adjust Control 3. Metrics-based Financial Business Business Business Business Business Rating Case Case Case Case Case Management 184-JULIUS-GOLOVATCHEV.PPT safeguards the Gate 1 Gate 2 Gate 3 Gate 4 Gate 5 Gate 6 efficient and 3 effective implementation Approval by the Product Board Page 8

  10. 3. Integrated PLM- Approach Product Meta-model The product database and the corresponding processes should be implemented by considering the existing processes, company structures and cultures. Definition and requirements on product data structure IT- Sales and market view Internal production view Production and Architecture service Portfolio branch Product Modules Marketing and Components Product Modules advance perfor- realization Module cat I mance mgmt Module cat II … Transfer … Billing payments … Realization in PLM as Realization in Processes well as stock production systems Controlling: management systems and order management 184-JULIUS-GOLOVATCHEV.PPT One master product data management fits all needs of the main processes and its interfaces. Page 9

  11. 3. Integrated PLM- Approach PLM IT-Architecture 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. Architecture View Remarks � PLM IT-Architecture can be partitioned in three groups Decision Support Decision Support System System � DSS DSS Strategic Resource Strategic Resource CAS CAS Value Management Value Management � OSS Management Management � Integration Process Process PLM- PLM- Product-Development Product-Development Marketing Management Marketing Management Product Exit Management Product Exit Management Middleware � Single PLM-System Operational Support System Operational Support System does not hold the Multi-Project- Multi-Project- Product-Data-Management Product-Data-Management Collaboration Tools Collaboration Tools promise of enabling a Management System Management System System System OSS seamless and flexible Product Product Product Workflow- Management System Workflow- Management System Workflow- Management System Modeling System Modeling System Modeling System PLM-process � Re-use of legacy Integration-layer (SOA) Integration-layer (SOA) systems and existing 184-JULIUS-GOLOVATCHEV.PPT middleware solutions Business Applications Business Applications Business Business Business Business SOA Applications Applications Applications Applications ensure a reduced SCM SCM ERP ERP CRM CRM CAD CAD (Supplier) (Supplier) (Customer) (Customer) OPEX and access to a wide variety of IT- functionality Page 10

  12. 3. Integrated PLM- Approach Lifecycle Value Management 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. Three building blocks of Lifecycle Value Management Information View Ability to support products with the most suitable platforms across their lifecycle Value Oriented � High degree of data Portfolio consistency and transparency Management � Standardized reporting for all KPIs throughout the entire PLM process Lifecycle Value Product master data Management � PLM management as prerequisite Customer Needs Reporting and for process automation Management Controlling � Simple data exchange with 184-JULIUS-GOLOVATCHEV.PPT production and sales systems Page 11

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