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PLM Fundamentals: Where Did It Come From?

The document provides an overview of product lifecycle management (PLM) and its evolution from earlier concepts like product data management (PDM) and collaborative product commerce (CPC). It discusses how PDM focused on managing CAD data and bills of materials, while CPC emphasized collaboration between partners. PLM is presented as a process that guides products through their entire lifecycle to maximize business value for an enterprise and its partners. The document also summarizes some major PLM software offerings from vendors like PTC, Dassault Systems, and SAP.

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Anup Shokhwal
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0% found this document useful (0 votes)
286 views

PLM Fundamentals: Where Did It Come From?

The document provides an overview of product lifecycle management (PLM) and its evolution from earlier concepts like product data management (PDM) and collaborative product commerce (CPC). It discusses how PDM focused on managing CAD data and bills of materials, while CPC emphasized collaboration between partners. PLM is presented as a process that guides products through their entire lifecycle to maximize business value for an enterprise and its partners. The document also summarizes some major PLM software offerings from vendors like PTC, Dassault Systems, and SAP.

Uploaded by

Anup Shokhwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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PLM Fundamentals

Part 1

Where Did It Come From?


Evolution of PDM Man

In the

beginning
there
was
darkness
Evolution of PDM Man

Prior to the 80’s, there was a low


level of design automation. PDM
man has no tools and is using his
bare hands to manage paper
based information.
Evolution of PDM Man

Early 80’s, design tool usage accelerates


with a consequential increase of
information to manage. PDM man builds
his first flint tools and tries to use file
systems and naming conventions to
solve the problem.
Evolution of PDM Man

Mid 80’s, the first primitive tools


start to appear to provide basic
vaulting and access control. The
bronze age of PDM Man.
Evolution of PDM Man

Late 80’s/Early 90’s, PDM man now


has a collection of shiny new tools
and with a lot of brute force he can
build a working solution. The iron
age.
Evolution of PDM Man

By mid 90’s, the tools are powered


but what PDM man now wants to
build has got so much more
complex that he is taking as long as
he did with his primitive tools to
build a simple solution.
Evolution of PDM Man

Late 90’s, it dawns on PDM man -


Why should I build it if I can get
someone else to do it? The desire
for an application is born.
PDM Calendar

Paper, O/S Doc Mgr PDM IPD Applications


PDM Positioning
Industry Solutions Quadrants

SERVICE
INDUSTRIES PRODUCTION

CUSTOMER ENTERPRISE
RELATIONSHIP RESOURCE
MANAGEMENT PLANNING
(CRM) (ERP)

EXTENDED
CONSUMER ENTERPRISE
PRODUCT
GOODS DEVELOPMENT
PRODUCT
LIFECYCLE
SUPPLY CHAIN PRODUCT DATA
MANAGEMENT
MANAGEMENT MANAGEMENT
(PLM)
(SCM) (PDM)
Industry Solutions Quadrants
Competitive Advantage Is Derived From
Value Chain Optimization

B2B Opportunities

The Internet Removes Company, Organizational and System Boundaries


Early Value Chain Initiatives
• Benefits: Customer
– Reduced Time-to-Customer cycle times Care
(order-to-cash) (CRM)
– Reduced internal and supply chain
inventories/costs Time To
– Increased in satisfied and repeat customers Customer
Operational
Efficiency
(ERP)
• Issues:
– Products do not always match
customer needs
– Frequent delays and mistakes
in delivering of customized
products
Supply Chain
– Resources focused on order Optimization
fulfillment versus product (SCM)
innovation

Competitive Parity is the Eventual Outcome


Delivering Winning Products

Product success is determined by:


Time To
– meeting customer’s unique requirements Customer
• design for rapid customization
– providing highest value at lowest cost
• capitalize on the advantages of time-to-
customer processes
• reduce engineered product costs
• outsource non-value added components
– delivering continuous innovation

Sustained Competitiveness Requires Continual Differentiation


Delivering Winning Products

• Benefits:
– Increased product innovationTime To Time To
Market Customer
– Improved profit margins
– Customer satisfaction and
loyalty
– Higher barriers to
competitive entry

Increase Market Share and Market Growth


Strategic Value Chain Initiatives
Customer Collaboration
 Joint product definition

 Rapid proposal response

 Online custom configuration

Manufacturing Collaboration
 Scheduling synchronization

 JIT customization

Product Development Collaboration



Global platform design

Customizable products

Design for postponement

Supplier Collaboration
 Joint development

 Outsource design

 Contract manufacturing
Enabling the Virtual Corporation

Value Chain Collaboration



Executive Views
 Product Portfolio Analysis

Effectiveness Metrics
PLM Capabilities

– CAD Data Management


– Product Structure/Configuration Management
– Workflow/Process Management
– Document Management
– Engineering Change Management
– Vault Management
– Extended Enterprise Connectivity
– Project Management
PLM Positioning
•Why PLM?
– Rich Engineering & Product Development Background
• Ability to manage CAD data & design documents
• Ability to manage Engineering BOM
– Rich in Knowledge Management
• Need to capture & organize the data & the relations between them
• Track & Propagate changes effectively
• Need to navigate to & search for the information
– Manage “Extended enterprise”
• In discrete Manufacturing, typically, 70-80% of the components are outsourced
• Need to Manage collaboration with your customers & suppliers
PLM Positioning (Continued…)

• Why PLM?
– Ability to Manage Product & Process Lifecycles
– Ability to Interact with / Integrate other enterprise solutions
– Leveraging the Web architecture
PLM Fundamentals
Part 2

What Is PLM?
Synonyms
We always hear about different jargons:
PDM Product Data Management
ePDM Electronic PDM
CPC Collaborative Product Commerce
cPDm Collaborative Product Definition
Management
PLM Product Lifecycle Management
These terms don't mean the same thing and aren't interchangeable. These concepts
have evolved with changing business drivers, and each has represented a new
generation of the software application market, which has also evolved rapidly.
Clear definitions of these terms will help users understand how each contributes
to their missions during all phases of a product life cycle
PDM
PDM is a set of applications and capabilities for capturing and
maintaining the definition of a product and related data
through all phases of a product's life.
The four most commonly used PDM applications are
– Library functions (search and file check-in/check-out),
– Management of bills of materials (BOMs),
– Product configuration management (PCM) and
– Engineering change management (ECM).
PDM is a core enabler of CPC and PLM.
PDM

Enterprise Product Data Management Functions

Product
Configurators
Auditability
Structure Views
Effectivity Planning
Product Structuring
Part - Document Tracking
Component Management
Process Automation
Release Management
Change Control
File / Document Vaulting
Relationship Management
Revision Control
Application Interfacing
CPC

CPC is a mode of product and business development in which product value chain
partners, motivated by common commercial interests, generate value by sharing
product assets, capital and intellectual property.
CPC applications emerged in the late 1990s, leveraging Internet technology, to
enable collaboration in product design and new business development.
The Internet-based software technology that differentiated CPC applications in the
late 1990s has now become fundamental to broad classes of applications. Given
the ubiquity of CPC architecture across a broad class of applications, CPC's
greatest value is as a business strategy.
PLM

PLM is a process for guiding products from idea through


retirement to deliver the greatest business value to an
enterprise and its trading partners.
PLM employs product information and business analysis to
support strategy, planning, management and execution
through each phase of a product's life cycle.
PLM supports an enterprise's ability to monitor activities,
analyze challenges and bottlenecks, make decisions and
execute decisions.
PLM : What is it ?
(The Vendor’s View)
Product offerings

Following are leading PLM offerings…

Company Enterprise PDM product Former Name


Team Center Enterprise Metaphase
Electronic Data Systems (EDS)
Team Center Engineering iMAN
Parametric Technology
Windchill
Corporation (PTC)
Enovia PM IBM Product Manager
Dassault Systems Enovia VPM
Enovia LCA
SAP SAP-PLM
MatrixOne eMatrix Matrix
Eigner Eigner PLM Axalant / CADIM EDB
IBM/Dassault

“ PLM is an extended enterprise solution for manufacturing companies that


facilitates the sharing of product data across all company functions,
customers and suppliers.”

What does it comprise?


• Core software from Dassault Systèmes: CATIA, ENOVIA, DELMIA
• Middleware, hardware, and services from IBM

The Value Proposition


The IBM PLM solution puts your product – the source of your profits – at the center of everything
you do. It pulls relevant information from your ERP, SCM and CRM systems, associates it with
product knowledge, and makes it available to your extended enterprise – empowering everyone
from manufacturing to marketing and from purchasing to field support to work faster and
smarter.
EDS PLM

“ Product lifecycle management enables you to marshal the skills,


expertise, knowledge, and experience of your entire extended enterprise
and apply them to every major stage in your product lifecycle to achieve
competitive excellence”

The value proposition


EDS is the only company capable of providing the complete set of PLM solutions
needed to turn your product lifecycle process into a distinct and sustainable
competitive advantage.
PTC

“Put your product first and everything else will follow”

The value proposition


You aren't in the business of implementing processes; you're in the business of
creating great products. So, your business should focus on product. After all,
that's what your customers focus on. A constantly improving, exceptional product.
Leave it to PTC to solve your processes and management.
SAP PLM

“ PLM …an integrated environment that ensures all people involved


in product development, manufacturing, and service have quick
and secure access to current information. And that's exactly what
mySAP Product Lifecycle Management (mySAP PLM) provides”

Value proposition
mySAP PLM is the only e-business solution available today that enables
collaborative engineering, custom product development, and project,
asset, and quality management among multiple business partners.
MatrixOne

“MatrixOne collaborative product lifecycle management solutions enable


companies from a broad range of industries to dramatically accelerate innovation,
time-to-market, and revenue by collaboratively developing, building, and
managing products”

The value prosposition


Flexible solutions facilitate the sharing of concepts, content, and context across product
lifecycles and unleash the creative power of global value chains of employees, customers,
suppliers, and partners to inspire innovations and speed them to market.
Business Challenges

Today’s Business Challenges…

• Product Innovation
– Reduced Time To Market
(First To Market Owns the Market)
• Mass Customization
– Product Configuration
• Design Anywhere Build Anywhere (DABA)
• Balance between Maximizing Data Sharing & Security

… Need to be managed
Business Drivers
Data Management Challenge
• Need to Manage Increasing Volumes of Distributed but Related Data
• Types of Data and Systems that Create Data are Continuously Changing
• Need Constant Framework to Locate Data

CAD Analysis
Models

Specs

Drawings

Manuals
Enterprise Product Data Management
Product Data Management Manual Document Management
Specification
Engine

Performance Customer Order


Data Regulation
Change
Archive
Request Publication
Fan Combustion
Note Assembly Assembly Instruction
Drawing
Drawing Image

Drawing

First Fan High Press Engine


Stage Cover Compressor Casting
Model

Engine Option A
Fan Fan Fuel Fan Blade
Bolts Blades Controls Rev A
Fan Blade Engine Option B
CAD/CAM/CAE Rev B
Fan Blade
Data Management Rev C
Engine Option C
Part Families Component Management Configuration Management
The Solution…

• Life Cycle - PDP & Change Management


• Product Definition (Relations between objects)
• Organization as per Projects
• Product Structures & Configuration
• Collaboration & Visualization
Objective

• PLM objective:

“To provide each member of the extended enterprise


with role-based integrated, interactive web access to
the right information necessary to efficiently and
accurately execute their cross-functional business
tasks”
Extended Enterprise

CORPORATE SUPPLIER
SYSTEM SYSTEM
Files
Files
Files Files
DB Files

DB
DB DB
DB

CUSTOMER
SYSTEM

Internet/LAN/WAN Files
Files

DB DB
Process Management
Product Development Lifecycle
Just like humans …
Birth -> Childhood -> Adolescence -> Adulthood -> Old Age -> Death

Every product has a lifecycle…


Product Lifecycle Management is a tool to Manage product data &
related information throughout the product lifecycle.
Product Lifecycle Management

“A Product is the
sum of its
life cycle process,
and not its
manufactured
parts.”
B. Huthwaite
Product Development Process
Product Development Process
Product Development Process
• Product Development Process (PDP)
Marketing R&D Production

Sales Design Planning

Concept Design Mfg Planning Production

Customers Suppliers

The Tools…

CAD
MRP / ERP

PLM
Change Management
Product Definition (Relations)
Life Cycle & Process Management
Projects
Product Structures & Configuration
Product Development Lifecycle
Concept

Surface - Alias
Modeling - Imageware

Analysis (CAD) Design (CAD)


Mechanisms -ADAMS Solid/ Surface -EUCLID
Modeling -I-DEAS
Finite Element -I-DEAS -CATIA
Analysis -NASTRAN Assembly -Pro-Engineer
-NISA -Unigraphics
-SolidWorks
Drafting -AutoCAD

Protyping NC (CAM) Process Planning

-CAMAX
STL Cutter Path -EUCLID Process Plan -Special
Generator Generation -Unigraphics (CAPP) software
-CATIA

Test

Strain ganging SDRC's TDAS Product / Prototype

Reverse
Engineering
Point Data
Collection
- Imageware
Surface Fitting

Reverse Paths (for correction)


Process Management
PDP & Engineering Change Management
Knowledge Management
Knowledge Management
• What is knowledge management?
– Knowledge management is a discipline that promotes a collaborative and
integrated approach to the creation, capture, organization, access and use
of an enterprise’s information assets. This includes databases, documents
and, most importantly, the uncaptured, tacit expertise and experience of
individual workers.

• Knowledge Management Activities


– Create – Business Objects
– Capture – Contents & Metadata
– Organize – Projects, Life Cycles, Cabinets
– Access – Control Access Rules & Authentication
– Use – Search, Access, Modify, Reports, Re-use …
Single Source of Information
- Across functions
Change
Control

Design Mfg Prod. Field


Mktg QA
Eng Eng Control Support

Config.
Man. Purchase

• Requirements • Analysis • Process Plans


• Specifications • Drawing Trees • Work Instructions
• Drawings • Parts Lists • Machine Instructions
• Models • BoM’s • Quality Procedures

Enterprise Product Database


Managing Relationships
cover.doc

Attaches
PN 1000-Rev A plate_assy.asm.1
Type: Design
Is Described body.doc
PN 2000-Rev A
By
Type: Specification

glossary.doc

PN 1000-Rev A specs.doc
Type: Specification

Is Described
By

PN 1000-Rev A PN 2000-Rev A PN 2000-Rev A plate.prt.1


Plate Assembly Plate Type: Design

Uses PN 3000-Rev A
Gasket

PN 2000-Rev A plate.mfg.3
Type: Manufacturing

PN 4000-Rev A PN 4000-Rev A screws.doc


Screws Design
Document Management

Content- Universal
Based Document
Retrieval Viewer

Document
Centric
Task UI
Simple Find,
Search and Printing
Data Sharing &
Environment Publishing

Standards
Product Definition

– PLM Manages the Product knowledge by maintaining the relationships


with different objects.

– Enables users to navigate to the structure & get the required & valid
information instantaneously.
– Organizes data in different ways…
• By Projects

• In Life cycles

• Cabinets / Vaults

– PLM also uses search engine, which enables searching for information &
filtering it.
Release to Production
Release to Production

• Iterative changes in Product till the Production stage would be


managed in PLM.

• Manufacturing View of BOM would then be transferred to ERP


for transaction & cost management.

• All Process Documents like tooling drawings etc. would be


released in PLM

• Routings would be transferred to ERP.


Industry Solutions Quadrants

PLM ERP

Product Drawings
Tooling Drawings
Quality Plans
Process Sheets Routings
FMEA
DFA/DFM
Part Masters Part Masters
BOM BOM

Purchase Orders Purchase Orders


Inventory Levels Inventory Levels
Actual Product Costs Actual Product Costs
Budget Data Budget Data
Vendor data Vendor Data
Product Structure &
Configuration Management
Configuration Management

ASSEMBLY

COMPONENT

VIEWS

NAMED BASELINE

STRUCTURED OPTION

CONFIGURATION ITEM

SUPPLIER
Manage Configurations

Effectivities Alternates Parts


Product configuration defined and managed. Product configuration defined and managed.
Engine Engine Engine

0 alternate piston
200 Piston
day y r (always)
to Block

Shaft

Options Substitute Parts


Product configuration defined and managed. Product configuration defined and managed.
Engine Engine
option 1 option 2
Piston Piston

Block Block Block Block substitute piston


(specific)
Shaft Shaft
Manage Product Views

Engineering Manufacturing Engineering


Designed The Structure Rearranged The Structure For Assembly

As-Designed As-Planned
Product Product
1 Manufacturing
Substituted Parts
Component Component Component Assembly Component

2 As-Built
Component Component
Product

Assembly Component

As-Planned As-Shipped
Product Product 3 Component Component

4
Component Assembly Component Component Assembly Component

Component Component Component Component

Service Shipping
Implemented A Field Change Added Shipping Materials
Classification/Catalogs
Product Structures &
Configuration
• Engineering / Design Terms…
• Design Configuration
– Configuration of a product as envisioned by the design engineering
team
• Manufacturing Configuration or Bill of Material (BOM)
– Configuration of a product as built or shipped
• There are other possible configurations
• Configuration Views or Perspectives - variations based on
discipline or department, such as Design or Manufacturing
• Configuration Management - controlling configurations and
configuration changes
Design Configuration

• Table Assembly
(Design):

Assembly:
a collection of
pieces (parts or
components)
Design Configuration

• Table Assembly
(Design):
– (1) Table Top Part

Part:
one piece - can’t
be broken down
further
Design Configuration

• Table Assembly
(Design):
– (1) Table Top Part
– (4) Leg Assembly:

Sub-Assembly:
an assembly in
another 4x
assembly
Design Configuration
• Table Assembly
(Design):
– (1) Table Top Part
– (4) Leg Assembly:
• (1) Leg Part

Component:
a part or a sub-
assembly used
in an assembly
Design Configuration

• Table Assembly
(Design):
– (1) Table Top Part
– (4) Leg Assembly:
• (1) Leg Part
• (1) Foot Part
Manufacturing Configuration

• Table Assembly (Mfg):


Manufacturing Configuration

• Table Assembly (Mfg):


– (4) Foot Part

4x
Manufacturing Configuration

• Table Assembly (Mfg):


– (4) Foot Part
– (1) Top Assembly:
Manufacturing Configuration

• Table Assembly (Mfg):


– (4) Foot Part
– (1) Top Assembly:
• (1) Table Top Part
Manufacturing Configuration

• Table Assembly (Mfg):


– (4) Foot Part
– (1) Top Assembly:
• (1) Table Top Part
• (4) Leg Part

4x
Configurations

• Table Assembly • Table Assembly (Mfg):


(Design): – (4) Foot Part
– (1) Table Top Part – (1) Top Assembly:
– (4) Leg Assembly: • (1) Table Top Part
• (1) Leg Part • (4) Leg Part
• (1) Foot Part

Same Component
Configurations

• Table Assembly • Table Assembly (Mfg):


(Design): – (4) Foot Part
– (1) Table Top Part – (1) Top Assembly:
(Design) • (1) Table Top Part
– (4) Leg Assembly: (Design)
• (1) Leg Part • (4) Leg Part
• (1) Foot Part

Same Component
Configurations

• Table Assembly • Table Assembly (Mfg):


(Design): – (4) Foot Part (Design)
– (1) Table Top Part – (1) Top Assembly:
(Design) • (1) Table Top Part
– (4) Leg Assembly: (Design)
• (1) Leg Part • (4) Leg Part
• (1) Foot Part (Design)

Same Component
Configurations

• Table Assembly • Table Assembly (Mfg):


(Design): – (4) Foot Part (Design)
– (1) Table Top Part – (1) Top Assembly:
(Design) • (1) Table Top Part
– (4) Leg Assembly (Design)
(Design): • (4) Leg Part (Design)
• (1) Leg Part (Design)
• (1) Foot Part (Design)

Only Exists in Design


Configurations

• Table Assembly • Table Assembly (Mfg):


(Design): – (4) Foot Part (Design)
– (1) Table Top Part – (1) Top Assembly (Mfg):
(Design) • (1) Table Top Part
– (4) Leg Assembly (Design)
(Design): • (4) Leg Part (Design)
• (1) Leg Part (Design)
• (1) Foot Part (Design)

Only Exists in Mfg


Configurations

• Table Assembly • Table Assembly (Mfg):


(Design): – (4) Foot Part (Design)
– (1) Table Top Part – (1) Top Assembly (Mfg):
(Design) • (1) Table Top Part
– (4) Leg Assembly (Design)
(Design): • (4) Leg Part (Design)
• (1) Leg Part (Design)
• (1) Foot Part (Design)
Collaboration
What is Collaboration?

• A secure communications environment


• Geographically dispersed project teams
– within and across the extended enterprise
– A dynamic and unified view of product data
• 2D, 3D, tasks, schedules, notebooks, etc…

• Collaboration facilitates
– Allows for rapid iteration
– Extended data sharing with team members and with other
teams
– Is essential within the company and across companies
Visualization

• CAx agnostic
– I-DEAS, PDGS, CV, Pro/E, UG, Catia
– STEP, IGES, VRML, STL
• Viewing Tool
– Product Structure, 2D and 3D, Snapshots,
Graphics
• Evaluation Tools
– Precise Measurements, Inspection, Interference
including dynamic, Cross Sections, Compare
• Collaborate Changes
– Redline, markup, annotation, rapid iteration
– Team reviews

It’s about fitting visualization in the enterprise infrastructure


Collaboration

• Address full supply chain


– Vendors
– End-user customer
– Remote sites
– Different tools across sites, customers and vendors
• Two aspects:
– Make data available throughout the enterprise
– Visualization
• The ability to view the output of any application throughout
an enterprise
Collaboration

• Address full supply chain


– Vendors
This is the major
stumbling block to
– End-user customer
enterprise
– Remote sites
collaboration!
– Different tools across sites, customers and vendors
• Two aspects:
– Make data available throughout the enterprise
– Visualization
• The ability to view the output of any application throughout
an enterprise
Product Visualization
• View product regardless of
location of data or authoring
application(s)
• Address heterogeneous CAD
systems into single, viewable
representation
PLM Architecture &
Benefits
PLM Architecture

• Most Enterprise Solutions use 3 tier


Architecture:

“Presentation” of the User Interface in the Client Tier


What users see --> •Web Browsers •HTML •CORBA
•Java Applets •JavaScript •COM

Rules and logic


A company’s “Business Logic” captured in the Server Tier
enforce how a
<--
•Business Transactions •Access Control company does
business

“Persistent” Data Storage in the Database Tier


Data storage -->
•Relational Tables •Stored Procedures
Benefits of Web Architecture

Because PLM is designed for the


web, individually-designed and
geographically remote PLM systems
can be connected together into a
single, virtual system.

The result is a “federated”


enterprise system - a larger
system that comes together
through the interaction of
smaller, more manageable,
autonomous systems.
PDM as Framework

2
3
1
2

people process structure security


Controlling Data Sharing across Applications / Systems

CAD/ Component Process


Sales Field
CAM/ Supplier Engineering ERP Distribution
Configurator ERP Support
CAE Mgmnt (Planning)

Benefits
information backbone communication backbone process backbone
• Relationship Management • day to day CAD/CAM/CAE • Requirements
• Configuration Management • milestone/status reports • Design
• Schema Understanding for • bottleneck reports • Change
Extraction • Distribution
If PDM is Not Implemented
Points of Integration Look Like This

Manufacturing ERP Legacy


Systems

Dassault PTC EDS Applicon SDRC Office Eng.


CADkey
CDM Intralink IMAN Frame TDM Auto. Data
Work
• MS Office • Test Results
Group • Access • Spec.’s
Dassault PTC EDS Applicon SDRC
•.... •....
CATIA Pro/E UG Bravo I-deas
When PDM Is Implemented
Points of Integration Look Like This

Manufacturing
ERP Legacy
Systems

Enter- PDM - Complete Lifecycle Information


prise PDM Enterprise-Wide Backbone

Dassault PTC EDS Applicon SDRC Office Eng.


CADkey
CDM Intralink IMAN Frame TDM Auto. Data
Work
• MS • Test Results
Group
Dassault PTC EDS Applicon SDRC Office • Spec.’s
CATIA Pro/E UG Bravo I-deas • Access • . . . .
•....
What Is a PDM Solution?

• Proven enterprise applications focused on product lifecycle


management
– Maximizes multi-CAD environment
– Maximizes ERP investment
– Improves market & customer responsiveness
– Improves productivity & quality
– Improves time to market with the right product
– Maximizes ROI
– Minimizes Risk
Enterprise PDM - A Business Imperative

• 70% of Product Lifecycle Cost is determined through


Concept Design
• 85% through Preliminary Design
100%
95%
85%
75%
70%
Cost Incurred
50% Cost 50%
Determined $
Lifecycle Decisions
25% Cost
18%
Time
1% 7%
Conceptual Preliminary Detail Production Product Use

Enterprise PDM Strength ERP Strength


Addresses Functional Issues

• Document Control & • ISO 9000 Certification


Management
• Universal Product Data • Managing
Access Manufacturing
• Engineering Change Process Information
Management
• Managing Complex
• Managing the Product
Development Process Product Information
• Total Configuration
Management
Example - Metrics Study

Automotive Tier 1 Supplier

• $1Billion in annual revenue


– 8% pre-tax profit
– $80M profit per annum

• Incremented profit using PDM


– 1% of $1 billion = $10,000,000 extra profit!!

This represents a 12.5% increase in profit


PDM Clients Are Successful

• Substantially reduced cost of manufacturing


– 85% reduction in corrective engineering changes
– 80% reduction in change cycle time
– 30% reduction in tooling costs
– 60% reduction in first article assembly
Example PDM Benefits

• Product Development
– Reduced from 3 years to 1 year
• Time to Market
– Reduced 6 months; with 15% increase in gross margins
• Change Orders
– Reduced from months to days
• Documentation Control
– Reduced 50%
Example PDM Benefits

• Cost of Scrap
– $2 million annual savings
• Purchasing Costs
– Reduced $1.7 million
PLM Fundamentals
Part 3

Where Is It Going?
So...What’s the Future...

…and the Future is NOW!


Key Market Drivers

Need for Innovation

Need for Collaboration

Need to Leverage
the Web
Innovate or Die
Durability of Competitive Advantage
e-Business Collaboration Solutions
For the Product Lifecycle
Value Proposition

e-Design Automation

It is about creating better


product definitions that
completely satisfy the
customer.

OPTIMIZATION
Value Proposition

Product Knowledge Management

It is about creating new


things more effectively
to keep on the cutting
edge of existing
markets or quickly
enter new markets.

INNOVATION
Value Proposition

Collaborative Product Commerce

It is about enhancing
organizational agility
with e-business
solutions to deliver
better, faster, cheaper
products.

PRODUCTIVITY
Information Navigation

W1
P1
RTM
W2 W3
P2 P3
Planning
W6

PDM D2 M2 P4 P6
M3
Supplier 1 R2
PDM M6
R6 P6
MRP
M10 M11
P9 P10 P11
M12 M13
Agility and Flexibility

“Time-to-Market”
• Product development speed
• More products introductions
• Supplier integration
• Strategic partnerships Source: Gartner Group
• Optimized processes

“Right-to-Market”
• Speed of product development course corrections
• Speed of adding innovative features
• Ability to exploit new supplier opportunities
• Recombinant business models
• Flexible processes
Right to Market =
“the 80’s were about quality…
the 90’s on re-engineering…
and the next decade
will be on velocity”
- Bill Gates
PLM Market Performance & Predictions
PLM Market Performance & Predictions
PLM Market Performance & Predictions
PLM Market Performance & Predictions
PLM Market Performance & Predictions
PLM Market Performance & Predictions
PLM Market Performance & Predictions
PLM Market Performance & Predictions
PLM Market Performance & Predictions
PLM Market Performance & Predictions
PLM Market Performance & Predictions
PLM Market Performance & Predictions
Comparative Analysis
Comparative Analysis
Comparative Analysis
Comparative Analysis
Questions?

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