Kerim Tumay

Managing Director
September 2011
2011 Technology Multipliers, LLC

Outline
PLM Concept

Why is Product Development process a

challenge?
What is PLM?
Benefits & Business value

PLM Process

Assessment and Planning

Complete Implementation
Measurement & Process Improvement

PLM Technologies

Success Factors

Software

Pre-implementation
Implementation
Post-implementation

2011 Technology Multipliers, LLC

PLM Concept

PLM Process

PLM
Technologies

Success Factors

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
Technologies

Success Factors

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
Technologies

Benefits & Business value

2011 Technology Multipliers, LLC

Success Factors

PLM Concept

PLM Process

PLM
Technologies

Success Factors

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
Technologies

Success Factors

Assessment and Planning

Review the
company vision,
business strategy
and goals
Evaluate PLM
software solutions
and solution
providers

Document your
product lifecycle

Assess the
effectiveness of your
product
development
processes

List business

requirements and
define PLM strategy

Define a list
operational metrics
and targets for
improvement

Build a model of
your should-be
product lifecycle
process

2011 Technology Multipliers, LLC

PLM Concept

PLM Process

PLM
Technologies

Success Factors

Complete Implementation
Product Data
Management

Manufacturing
and Supply
Planning

Program,
Project
Management

Virtual
Product
Development
and
Collaborative
Design
2011 Technology Multipliers, LLC

PLM Concept

PLM Process

PLM
Technologies

Success Factors

Product Data Management

Bill of Materials
(BOM)
Management

Security
Management

Engineering
Change Control

Classification

Configuration
management

2011 Technology Multipliers, LLC

PLM Concept

PLM Process

PLM
Technologies

Success Factors

Product/ Program/ Project Management

Requirements
Management

Project
Portfolio
Management

Process
Management

Search

Regulatory and
Environmental
Compliance

2011 Technology Multipliers, LLC

PLM Concept

PLM Process

PLM
Technologies

Success Factors

Virtual Product Development and Collaborative Design

Mechatronics
process
management

Knowledge
Management

Visualization

Software
Configuration
Management

Concurrent
design and
test

Change
management
2011 Technology Multipliers, LLC

PLM Concept

PLM Process

PLM
Technologies

Success Factors

Manufacturing and Supply Planning

Document and
part
dispositioning

Part
manufacturing
planning

Plant
optimization

Process
planning
2011 Technology Multipliers, LLC

Assembly
planning

PLM Concept

PLM Process

PLM
Technologies

Success Factors

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 time to search product info

Time savings * hourly rate

Reduced time for ECO

Time savings * hourly rate

Manual BOM creation/mgt

Time savings * hourly rate

Number of Engineering Change Orders

Time savings * hourly rate

Manual Requirements mgt

Time savings * hourly rate

Reduced Cycle Time

Reduced Development Cost

2011 Technology Multipliers, LLC

PLM Concept

PLM Process

PLM
Technologies

Success Factors

PLM Software Models

Less expensive

Traditional Model

Hosted Solutions

More Control

2011 Technology Multipliers, LLC

SaaS Solutions

PLM Concept

PLM Process

PLM
Technologies

Costs and Benefits of PLM

2011 Technology Multipliers, LLC

Success Factors

PLM Concept

PLM Process

PLM
Technologies

Success Factors

Cost of PLM
Support &
Mentoring
5%

Data Migration
5%
Training
5%

Software
30%

Implementation
25%
Maintenance
6%
Hardware
8%
Education
8%

Process
Optimization
8%
Source: PLM Technology Guide

2011 Technology Multipliers, LLC

PLM Concept

PLM Process

PLM
Technologies

Success Factors

Keys to Success with PLM

Understand the business

strategy

Planning
&
Assessment

Evaluate and select your

PLM software

Develop as-is and

should-be process
models of your product
lifecycle process

2011 Technology Multipliers, LLC

PLM Concept

PLM Process

PLM
Technologies

Success Factors

Keys to Success with PLM

Start with a
tangible
business
problem
Designate PLM
advocate,
process owners
and managers

Restrict access
to legacy
systems

Implementation
Perform
customizations
and integrations

Use common
templates

Conduct
lessons
learned
sessions

Train the super

user(s)

2011 Technology Multipliers, LLC

PLM Concept

PLM Process

PLM
Technologies

Success Factors

Keys to Success with PLM

Track actual
performance indicators
using project/process
management tools

PostImplementation

2011 Technology Multipliers, LLC

Compare your PLM

success metrics with
industry best practices

Download E-books

For more information, go to www.technologymultipliers.com

2011 Technology Multipliers, LLC