business benefits of a plm system

8/13/2019 Business Benefits of a PLM System

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Business benefits of a PLM sys


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Factors leading to PLM

The factors causing pressure for change in proc

and increasing the amount of product data:Growing competition and tighter budgets

Internationalization of business

Company mergers

Shortening delivery times

Less time available for developing new productsTightening quality requirements

Regulations and common industry standards

Tightening legislation


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Factors leading to PLM

Growing competition

and tighter budgets

Internationalization

of business

Company

mergers

Shortening

delivery times

Less time available for

developing new products

Tightening quality

requirements

Regulations and common

industry standards

Tightening

legislation processes need to

change

increasing product

data


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Changing mode of operations

Increased

manufacturing

automation

Expanded

Product

portfolios

Increased

customer

involvement

More sub-

contracted

work

Changed

organization


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Impacts of the changes in the business envir

Major Problems:

Finding the rightproduct-related

information

Retaining the

entirety of this

information

The Main Reasons:

Increasing variations of

products

Increasing amount o

product information

Increasing complexity

companies supply netw


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Vicious circle of deteriorating product d

Many companies have

fallen into a viciouscircle: large number of items,

numerous laboriousassignments caused bythe maintenance of iteminformation,

product data areproblems that feed eachother.


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Benefits of the PLM system in product life

management

Todays networkedcompanies use

heterogeneous

information system

environment

Sets great demands

upon the integration

of systems and the

transfer of information

PLM systems can improve

the internal and external

communication

~ the

single

funct


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An important consideration in adopting PLM s

It allows for a radical reduction in many kinds of unnecess

information processing and transfer work. Reuse existing information that:

have been tested rigorously,

have been used to make quality products.

These factors:

-- > will ensure that changes being made in the

design work will be more rational and faultless,

-- > will increase the value of existing applications.


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The working time of an enginee

A Coopers & Lybrand study from the year 1994

PLM can

these wa


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Immediate advantages with the help of a PL

Saving time

Quick definition of the

product structure. Decreased amount of

overlapping work.

Availability of latest part

lists.

Fewer corrections to

information.

Fast, easy retrieval of parts

and drawings.

Availability of planning

information.

Easier, faster documentation.

Improved external and

internal grade of service.

Improvement in quality

Automatic acceptance and

release of documentchanges.

Fast, accurate distribution of

change information.

Certificates, records and test

results can be connected to a

product.

Availability of standards.

Improved information

security.

Increased flexibility of

operation.

Reductio

The num

items is are more

Reduced

The man

producti


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Measuring the business benefits in daily o

Converting the benefits of a PLM system directly into mon

terms is difficult.2 different forms of savings:

Operational savings New or increased ear

possibilitiesintensificationof theoperative operation.

decreasein expenses

and working capital.

strategic matters


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The flow of measuring benefit

Identifyingtypical

problems

Identifyingcauses ofproblems

Determiningindicators to

measure

operations

Dde

b


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Material costs: reducing inventory tied c

Typical problems

o

The item management of the company isnot in order,

o The companys own component design

and manufacturing is inefficient,

o Procurement buys the same type of

components from different suppliers for

different products,

o Product development and sourcing each

maintain large amounts of overlapping

information,

o The company makes overly fast and

uncontrolled changes in the design of the

product.

Causes of pro

Difficulties in retrievcontrolling product lead to unwanted shoperations model,

The product data cocomponent items isdate and is unreliab

There are difficultieinternal and externacommunication of tregarding product dchanges that have tit.


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Material costs: reducing inventory tied c

Indicators to measure operations

o The number of component itemsin the item base of the company

divided by the products (the

generic products) proportioned

to the number of components in

individual products,

o Length of the cycle from purchase

invoice to account sales,

o Value of the component

inventory

Ability to easily retrieveall necessary item infor

Reducing component sexpanding the convertcomponents,

Better management ofinformation and betterof component supplierinformation,

Reducing the items in twarehouse and droppi

Development potential br


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Improving the productivity of labou

Typical problems

The product knowledge of theproduct development organization

depends very essentially on the

individuals in the organization,

Far too much work is needed to

retrieve existing product data and

to maintain and transfer,

The reuse of existing information or

experience from older products

and functioning design solutions is

difficult.

Causes of pro

Scattered product several separate in

management syste

links).

Separately maintai

pieces of product dseparate product m

systems.

Push principle dis

information.


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Improving the productivity of labou


The direct costs of labour related

to the transfer of information and

change management of products.

The time used in finding and

retrieving information.

Converting individuainto intellectual capitto the whole organiz

Controlling and manadata and product kno

electronic form, Reusing of existing in

Reducing the resourcretrieving, maintainitransferring product information.



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Costs of quality

Typical problems

Faulty or incomplete productdesign,

Faulty product units during

production or even after

delivery,

Problematic manufacturing ,

Returned products for repair

under guarantee.

Consuming work to handle

problematic situations.

Causes of pro

Complexity of protheir processes,

Lack of traceabilit

management.

Slowness of chang

Shortcomings in t

traceability of the

delivery process a

individual product


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Costs of quality


Ability to produce:

quality products ,

improved manufacturing

processes. Ability to reduce:

manufacturing defects,

guarantee claims.

Greater ability to im

quality with the he

efficient, streamlin

processes.

Fast, efficient chanmanagement,

Traceability of chan

management and d

history.



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PLM and data warehousing as a tool

to support decision-making

~daily tasks,

~user profiles,

~user activities,

~ files,

~documents.

PLM database Decision making

statistical analyses


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Use of quantitative information for developing pro


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Data warehousing

The IT systems that

support the differentco functions.

Data warehousing.

informed

product lifecycle decisions

(based on real information)

business benefits of a plm system

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