A holistic Product Lifecycle Management framework facing the
challenges of 21st century
Dr. Julius D. Golovatchev
Oliver Budde
Zurich, August 27-29, 2007
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Company Profiles
Best Practice experience combined with scientific excellence provide the basis for a strong partnership for PLM-related projects.
Detecon Research Institute for Operations Management at RWTH Aachen University
Ref
eren
ces
Established:1977 DETECON
Reorganized:2002 Detecon International GmbH
Sales 2006:EUR 148 million 650 consultants
Shareholder:T-Systems International GmbH
More than 3500 projects in 120 countries
Established:1953, currently with 45 research assistants
Chair:Prof. Dr. Schuh, Chair of Product Engineering
Employees:70 permanent employees and further 70academic and student assistantsC
ompa
ny P
rofil
e
Service portfolio:Strategy & MarketingOperations & PerformanceTechnology
Industry competence:Telco Digital MediaEnterprise and ServicesPublic Sector
Research Departments:Product-ManagementService EngineeringInformation ManagementSeveral interdepartmental practices
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Company locations + references (excerpt)Integrated Management and Technology ConsultingGlobal activities, know-how und ‘do-how’ expertise esp. in ICT markets characterize our consultancy services in PLM-related projects..
Zurich
Bangkok
Bonn
Johannesburg
Madrid
London
Mexico City
RestonSan Mateo
Cairo
Abu Dhabi
Beijing
Aachen
DETECON officesResearch institute office (FIR)
Detecon (Switzerland) AG
Löwenstrasse 18001 ZurichSwitzerland
Internet www.detecon.ch
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Content
1. Motivation
2. Current status of PLM
3. Integrated PLM-approach
4. Case-study
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Sarbanes Oxley Act RegulationTreat Act
Supplier Device&NetworkOEMs
Service-provider
ProductEnd-device Software
Email flat-rateTriple play
Phone bookIP TV
ProductEnd-deviceEnd-device SoftwareSoftware
Email flat-rateEmail flat-rateTriple playTriple play
Phone bookPhone bookIP TVIP TV
1. Motivation
Management of the Extended Product Globalization
Legal Frameworks
Various challenges in nowadays economy provoke product and process complexity, which need to be addressed.
Challenges
Current Challenges
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Evolvement of PLM
2. Current status of PLM
PLM offers: Higher innovation rate
Less coordination effort and therefore a higher efficiency in distributed and globalizedenvironments
Product cost transparency along the lifecycle
PLM pitfalls:many initiatives only focus on isolated PLM-aspects and so don’t leverage the full potential
Proper Business/IT-Alignment is a critical success factor for implementing an integrated PLM
Remarks
Business-Integration
MRP/CAD
IntegratedPLM
ERP PLM /SOA
Islands of Automatisation
Business ProcessIntegration
DynamicNetworks
IT-Integration
Isolated PLM-Solutions
Less usedsystem/approa-
ches
Document- ManagementClassificationChange Management
Holistic approachNetworked elementsCollaboration-driven
A holistic approach for the product lifecycle management and the associated process is essential to counter the challenges.
Source: FIR Research
Evolvement of PLM
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With an effective PLM-strategy companies can overcome the above challenges to successfully meet their growth and profitability objectives.
Success factor PLM
Relevance of Product Lifecycle Management
Product Lifecycle
Management=
Success factorHigh customer expectations
Fast changing markets
Increasing competitive pressure
Effective Time2Market
1. Growing relevance of PLM
Short lifecycleinnovations
High product (portfolio)complexity
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Four pillars of the PLM
3. Integrated PLM- Approach
Four pillars build the fundament for a successful implemenation of the integrated PLM-Approach.
Integrated PLM- Approach and Strategy
PLM-Process and
Organization
ProductMeta-Model
PLM IT-Architecture
LifecycleValue
Management
Holistic view
Transformation - ManagementInnovation & PLM Culture
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All relevant activities from three different perspectives (market, technical, finance) on thePLM have to be identified and documented in the process definition.
PLM Process (Overview) Remarks
1. PLM- Process consists of 7 phases, whereby each phase ends with a gate decision by the Product Board
2. Each phase is further detailed by considering the three perspectives of the PLM
3. Metrics-based Management safeguards the efficient and effective implementation
Innovation-Mgnt Evaluation Planning Implementation Launch Marketing
Mgnt Exit
Market
PerspectiveTechnical
PerspectiveFinancial
Perspective
BusinessPlan
Market&Capabilities
Analysis
TechnicalEvaluation
FinancialRating
MarketRoll-outPlanning
Developtechnicalconcept
DetailingBusiness
Case
Im-plementMarket
Plan
TechnicalImplemen-
tation
AdjustBusiness
Case
LaunchProduct
Go-Livetechnically
MonitorBusiness
Case
Monitor&Manage
KPIs
Monitor&Ensure
Product&Process
ControlBusiness
Case
Innovation-Delivery
MarketExit
TechnicalExit
FinalizeBusiness
Case
1 2 3 4 5 6 7
IdeaPaper
Detailed
Design
ProductD
escription
LaunchR
eport
Mgnt.
Report
Gate 1 Gate 2 Gate 3 Gate 4 Gate 5 Gate 6
Approval by the Product Board
3. Integrated PLM- ApproachPLM Process
12
3
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Definition and requirements on product data structure
3. Integrated PLM- Approach
The product database and the corresponding processes should be implemented by considering the existing processes, company structures and cultures.
Sales and market view Internal production view
Portfolio branchProduct
ModulesComponents
ModulesModule cat IModule cat II
………
Realization in PLM as well as stock
management systems
Realization in production systems
and order management
IT-Architecture
Productrealization
Transferpayments
Controlling:
Production and service
Marketing and advance perfor-
mance mgmt
Billing
Processes
One master product data management fits all needs of the main processes and its interfaces.
Product Meta-model
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Architecture View
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.
PLM IT-Architecture can be partitioned in three groups
DSS
OSS
Integration Middleware
Single PLM-System does not hold the promise of enabling a seamless and flexible PLM-process
Re-use of legacy systems and existing middleware solutions ensure a reduced OPEX and access to a wide variety of IT-functionality
Remarks
Product-Development Marketing Management Product Exit Management
CAS Strategic Resource Management Value Management
Operational Support System
BusinessApplications
(Supplier)
Multi-Project-Management System
Product-Data-Management SystemCollaboration Tools
Workflow- Management System Product Modeling System
Business Applications
SCM ERP CRM CAD
Decision SupportSystem
PLM
-Pr
oces
s
BusinessApplications
(Customer)
Integration-layer (SOA)
Product-Development Marketing Management Product Exit Management
CAS Strategic Resource Management Value Management
Operational Support System
BusinessApplications
(Supplier)
Multi-Project-Management System
Product-Data-Management SystemCollaboration Tools
Workflow- Management System Product Modeling SystemWorkflow- Management System Product Modeling System
Business Applications
SCM ERP CRM CAD
Decision SupportSystem
PLM
-Pr
oces
s
BusinessApplications
(Customer)
Integration-layer (SOA)
3. Integrated PLM- ApproachPLM IT-Architecture
DSS
OSS
SOA
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Three building blocks of Lifecycle Value Management
Ability to support products with the most suitable platforms across their lifecycleHigh degree of data consistency and transparency
Standardized reporting for all KPIs throughout the entire PLM process
Product master data management as prerequisite for process automation
Simple data exchange with production and sales systems
Information View
PLMReporting and
ControllingCustomer Needs
Management
Lifecycle ValueManagement
ValueOrientedPortfolio
Management
3. Integrated PLM- Approach
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.
Lifecycle Value Management
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4. Case Study
Introduction of a modular product definition on a global scale from a customer perspective
Design and implementation of three variants of Stage/Gate PLM processes, taking different product types into account Introduction of fuzzy gates for a lean decision making process
Concept development and implementation of Core Information ObjectsDMS/Workflow Mgnt/Project-Mgnt. Sys.
Implementation of the product concept within the ERP-system
Introduction of a value-based portfolio management process
Impact
Time to Market
Organizational implementation
Product success rate
Integration
Consolidation
Effective product controlling
Portfolio complexityMaster Data Management
Results
Approach
The holistic approach must be designed and implemented hand in hand with the C-level.
Meta
Model
ProcessIT
LC-ValueM
gnt
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Contact Details
Questions and Answers
Dipl.-Wirt.Inform..
Oliver BuddeInformationmanagement
Telefon: +49/241/47705-512Fax: +49/241/47705-199Email: [email protected]
Pontdriesch 14/1652062 Aachenwww.fir.rwth-aachen.de
Dr. Julius D. GolovatchevManaging Consultant
Detecon International GmbH Oberkassler Straße 253 227 Bonn (Germany)Telefon ++49 228 700 26 27Telefax ++49 228 700 26 07 Mobil ++49 151 [email protected]
Member of
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