Download - PLM STRATEGY IN MANUFACTURING INDUSTRY

PRODUCT LIFECYCLE MANAGEMENT

STRATEGY IN

MANUFACTURING INDUSTRY

PROJECT REPORT

MANAGEMENT INFORMATION SYSTEMS

MBA(PT)2011-14 -SEC B-Group:5

Deepak Bal (Roll No – 67)

Harmeet Singh Bhatia (Roll No - 71)

Kanwar Pal Singh (Roll No – 74)

Mandavi Sharma (Roll No – 76)

Gordhan Meghwal (Roll No - 106)

Product Lifecycle Management IIFT, New Delhi

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Group 5, section B, MBA PT 2011-2014

CRM –Customer Relationship Management

ERP –Enterprise Resource Management

SCM –supply chain Management

PLM- Product Lifecycle Management

Enterprise IT Systems


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Introduction - PLM______________________

Manufacturing industries are facing growing challenges. They are under continuous

pressure to increase their production by increasing efficiency. Market globalisation and an

increase in customer demands has forced companies to produce more complex and

individualized products in a shorter lead-time. One of the key points of the success of such

kind of enterprise structures is the ability to communicate about and around the product,

internally as well as externally. Products generate a large amount of information, so the

classical communication systems phone/fax/email used by 90% of companies are not

structured enough to enable efficient cooperation.

Product Lifecycle Management (PLM) is first of all an enterprise strategy. It involves

managing all the data concerning a product, throughout its lifecycle, and all the internal and

external factors involved in the development of this product. PLM manages data, people,

business processes, manufacturing processes, and anything else pertaining to a product.

PLM technology is engineering-centric. It is primarily concerned with enabling the creation,

innovation, and collaboration around new products and line extensions. PLM software helps

define physical items.

According to the Aberdeen Group, nearly 80% of product costs are decided in product

development leaving transaction-based applications (like ERP) with direct influence over

only 20% of the total costs.


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PLM Methodology _____________________

I. Identification of concerns/pain areas/needs

This analysis can be implicit and explicit. In the implicit mode the company is aware of some

of the pain areas or needs for a PLM system. In explicit mode, a detailed analysis phase is

done by interviewing and observing the experts. The company can chose either one or both

the approached to conclude on the areas of concerns or improvement. The observation

show how the technical data/s are use in the company, their purposes, their process. Some

of the areas of concerns for manufacturing industries include –

− Data Duplicity

− Tedious data search

− No Secured data sharing and access

− Delay in Implementation change

− Unable to track design changes across all levels

− In efficient project tracking

− Unable to get accurate cost of projects

II. Formulation of solution

The goal of this step is to formalize the “to be” business processes that will respond to the

identified needs/concerns. A careful re-search is done on the collected information/data

and analyzed by subject matter experts or consultants to arrive on a “to be” process. Many

customized/templates tools can be used to quickly arrive at results. Some of the solution

could be –

− Product Data Management ( PDM )

− (design) Change Management

− Standardisation of Design

− Project Management

− Knowledge capture and re-use


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III. Demonstration on ROI/Benefits; POC

The solution vendor then has an informal discussion with the major stake holders on the

probable solution. Once there is a concurrence on the same a detailed demo-presentation

or Proof of concept (POC) has to be done to all stake holders. The POC or demonstration

highlights the major pain area/concerns faced by the organization and the proposed

solution to address this issue. A detailed ROI is presented to the stakeholders. The major

benefits of PLM include -

− approximately 40% to 60% reduction of time searching for data

− Development cycle reduction by 40%

− data/knowledge/ Intellectual Property re-use significantly increased

− Improved communication across all departments in an Better resource utilization

− Greater Design efficiency

− Less scrap & rework

− Standards and regulatory compliance

IV. Describing a deployment and adoption plan

The deployment plan lists in detail the phase wise implementation process. This includes

timeline for deployment of various software tools to achieve specific business processes.

The plan highlights the software license required, implementation schedule, resources

required, etc. A typical deployment plan can be as follows-

− Product Data Management; 3-4 months, 3 software specialist

− Change Control ; 2-3 months, 3 Engineering process specialist

− Knowledge Management ; 2-3 months, 3 Engineering design specialist

− Design standardization; 2-3 months, 3 Engineering design specialist

− Connection with ERP system; 3-4 months, 3 software specialist

− User Training; 1 month

− System go-live


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V. Go-live

As this stage or date the actual usage by the organization starts. The organization from this

date starts to completely follow the new system. Since adequate training has been imparted

during the deployment phase, the users are in a comfortable to quickly adopt the new

system.

VI. Post Go-live support

The solution vendor provides “post production” (after go-live), to ensure a smooth

transition to the new processes. Any bugs, technical issues, training issues are addressed

during this stage.

VII. Post Go-live assessment

A comprehensive feedback and assessment is done to measure if the “to be” process have

been achieved. Corrective steps are taken to ensure that the process remain on track. This

assessment can be periodically for a year, before declaring the PLM deployment a complete

success.


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PLM Implementation_____ ______________


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Product Data Management

Product Data Management ( PDM ) enables enterprise organizations to track and manage

the creation, change and archival of all information related to a given product, including

Computer-aided design ( CAD ) models, drawings, specifications and other associated

documents in single, centralized data repository.

Program Management

Program Management provides comprehensive functionality to reduce project costs,

improve profit margins and shorten product development cycles.

Project Management

Project Management provides up-to-the-minute visibility into projects and programs,

enabling enterprise organizations to plan and manage resources, mediate risk and maximize

profitability.

Virtual Product Development

Virtual Product Development (VPD) is an approach that takes a design at the earliest

concept stage and fully evaluates design specifications and usage scenarios, and then uses

this information to guide the development process. VPD continues to expand in its

usefulness and application adding new efficiencies to product development processes.

These efficiencies have become a key factor in an organization’s success in today’s

marketplace.

Manufacturing & Supply Planning

Manufacturing & Supply Planning improves management, coordination and communication

with suppliers, making it easier to manage relationships across a distributed, multi-tiered

supplier network


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PLM Cost_____________________________

The overall cost of a PLM solution varies depending on the provider and several factors,

such as the number of users and your individual business goals. In a comprehensive chart

provided by PLM Technology Guide, the elements of PLM are shown with their percentage

of the total initial cost of implementing a PLM solution. This chart also shows the type of

cost for each element — whether it is a one-time capital investment, annual recurring

expense, one-time expense, or initial post-go-live support.

Software - 30% of initial cost, Cost dependent on:

− Number & type of users

− Required functionality or functional modules

− Deployment option: On-premise or on-demand

− Floating licenses or named user licenses

− List price and discount

Hardware - 8% of initial cost, Cost dependent on:

− Number of users & sites

− Configuration & performance requirements

− Quantity of data and required disk space

− Required system availability and uptime

− Deployment option: On-premise, hosted or on-demand

− List price and discount

Education and Software Selection - 8% of initial cost, Cost dependent on:

− Understanding of PLM & PLM Market

− Duration & thoroughness of evaluation

− Involvement of an external PLM consultant

Process Optimization - 8% of initial, cost dependent on:

− Number of processes & methodology

− Size of organization & understanding of PLM

− Documentation of existing practices and processes

− Involvement of an external PLM consultant


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Implementation Services - 25% of initial cost, Cost dependent on:

− Required configuration and/or customization

− Contract terms: Fixed price or time & material

− Hourly rate and discount

Training - 5% of initial cost, Cost dependent on:

− Training delivery: Vendor or Train-the-Trainer

− Training material: Standard or custom

− Training location: Vendor, on-site, and/or web-based

Data Migration - 5% of initial cost, Cost dependent on:

− Approach: Manual or automated

− Number of source systems

− Type of data: Metadata, structured data and files

− Quality & quantity of data


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PLM Software Model____________________

Traditional Model:

In this approach the PLM software can be licensed from the software vendor. Under a

software license agreement, a licensor grants a licensee certain rights in a software product

while the licensor not only retains full ownership of the software, but can restrict what the

licensee does with the software in many critical respects. These restrictions are typically

designed to (i) protect the licensor’s potential market for the software; and (ii) protect the

licensor’s intellectual property rights in the software.

Hosted Solutions:

A hosted environment is offered to customers on a subscription basis and includes the

information technology infrastructure (hardware and software) and support services

necessary to deliver the solution. Applications are hosted at a highly secure data center and

accessed

over the Internet. The use of a hosted solution eliminates the cost and complications of

traditional client server software, while providing the most current application software

with the latest technology and security features.

Software as a Service (SaaS)

SaaS is a software delivery method that provides access to software and its functions

remotely as a Web-based service. Software as a Service allows organizations to access

business functionality at a cost typically less than paying for licensed applications since SaaS

pricing is based on a monthly fee. Also, because the software is hosted remotely, users don't

need to invest in additional hardware. Software as a Service removes the need for

organizations to handle the installation, set-up and often daily upkeep and maintenance


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Benefits of PLM Software________________

PLM Software supports the product development process, integrating people, data,

processes and business systems and providing a product information backbone for

companies and their extended enterprise. The benefits of PLM software focus around time,

cost and quality. These benefits include:

− Faster time-to-market

− Fewer Errors

− Less scrap & rework

− Greater productivity

− Greater Design efficiency

− Better product quality

− Decreased cost of new product introduction

− Insight into critical processes

− Better reporting and analytics

− Standards and regulatory compliance

− Improved design review and approval processes

− Improved communication

− Reduced product cost and greater profitability

− Better resource utilization

− Improved integration and communication with extended supply chain


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Return on Investment (ROI)______________

PLM ROI includes improved quality, streamlined operations, and greater efficiency.

According to AMR/Gartner, ROI can be broken down into three categories, each occurring at

different time intervals - immediately, within the 1st year, and well into the future.

Immediate: Infrastructure savings — Accrue immediately after go-live. Often the result of

improved collaboration and better IT efficiency.

Next Year: Improvement in established operating metrics — Accrue 6-12 months after go-

live. Based on widely used and genereally well-benchmarked operating metrics.

+5 years: Strategic competitiveness impacts — Accrue 3-5 years after go-live. Includes

savings on internal programs and process as well as improved strategic position.


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PLM & Other Enterprise IT Solutions_______

Supply Chain Management (SCM) applications help you adapt to market dynamics through

value creation and delivery along the supply chain. Specific goals include reducing inventory

by matching supply with demand, increasing the transaction speed by exchanging data in

real time, and growing sales by implementing customer requirements more efficiently.

Customer Relationship Management (CRM) applications help businesses manage and

deliver customer value, and improve competitive advantage and profitability through

detailed understanding of customer purchasing attributes and marketing intelligence. CRM

covers the full sales cycle, including pre-sales, after-sales, and product support.

Enterprise Resource Management (ERP) is used to manage the logistics of getting a product

to market once a design is released, PLM,(being largely CAD based) is used to achieve

control over design and development information. ERP technology is manufacturing-centric.

It is focused on controlling the parts in inventory, capacity planning, and production

schedules needed to efficiently produce a product


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Functions of Various Enterprise IT Solutions_

Download - PLM STRATEGY IN MANUFACTURING INDUSTRY

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