13 Apr03 -200623-05 Product Lifecycle Management Overview Purdue University PLM Center of Excellence Rex LaRowe, Director - Manufacturing Industry Framework page 1 • EDS Confidential Agenda • Introductions • Definition of PLM • The Problem • EDS’ Approach • Suggestions for PLM Center of Excellence • Discussions EDS Manufacturing 13 Apr 2006 page 2 • EDS Confidential Product Lifecycle Management (PLM) Definition PLM is defined as: • A strategic business approach that applies a consistent set of business solutions that support the collaborative creation, management, dissemination, and use of product definition information • Supporting the extended enterprise (customers, design and supply partners, etc.) • Spanning from concept to end of life of a product or plant • Integrating people, processes, business systems, and information PLM is not a definition of a piece, or pieces of technology. Source: CIMdata EDS Manufacturing 13 Apr 2006 page 3 • EDS Confidential Fundamental Concepts of PLM • Universal, secure, managed access and use of product definition information • Maintaining the integrity of that product definition and related information throughout the life of the product or plant • Managing and maintaining business processes used to create, manage, disseminate, share and use the information. EDS Manufacturing 13 Apr 2006 page 4 • EDS Confidential The Scope of PLM Plus the engineering business systems to make the PD process work with the Productrest of the company Lifecycle EDS Manufacturing 13 Apr 2006 page 5 • EDS Confidential The Challenge for PLM EDS Manufacturing 13 Apr 2006 page 6 • EDS Confidential It has been difficult to document impact of PLM on companies financial performance This example opportunity and gap analysis identifies the specific operations improvements and associated opportunities. Financial Statements Opportunity Operations Improvements Quality and One Time regulatory 30 – 80% Manufacturing standards Charges compliance 25 – 65% Cost of Quality (prevention) improvement 10 – 75% Time to market Increase in revenue Sales 5 – 50% Sales 25 – 65% Cost of Quality (QFD) Income 30 – 70% Bill of Material accuracy COGS Unit Cost reduction 10 – 20% First Time Quality Statement 2 – 5% Warranty Costs Reduction in 12 – 30% Marketing effort SG&A SG&A 24 – 50% Group technology 15 – 45% Engineering change order 20 – 60% Non-Recurring engineering R&D and Reduction in 20 – 55% Part proliferation engineering costs 90% Early defect detection Engineering 30 –70% Bill of Material 5 – 10% Lost Units / Lost Hours Shareowner Market Value Intangibles 15 – 35% Supplier rationalization Materials Sourcing component 20 – 60% Procurement Efficiency 30 – 80% Cost of Quality (appraisal) and Supplies standardization Supplier Effectiveness (quality, on-time delivery) Balance Fixed Reduce capital 20 – 65% Outsourcing Sheet Assets expenditures 20 – 50% Return on assets 15 – 50% Production planning/utilization Accounts 16 – 40% Capacity utilization Working Capital Source Receivable 25 – 50% Profitability EDS/A. T. Kearney - Confidential 30 – 85% Process Yields EDS Manufacturing 13 Apr 2006 page 7 • EDS Confidential Technology Modernization The technology Industry Model modernization process enables the transformation EDS’ A3 Architecture from the function specific • Work Portal • Work applications and data stores FrontPl Lists Collab oratio TM ane n • BPM/ BAM Personalised • BI Visualisation Repor ting to an enterprise view of data CrossPl aneTM and a services-based Configurable Orchestration E BPM/BAM Data Marts Business Operatio Integra Flows Rules nal T tion & Warehouses L Data Frame / Stores work D a t a approach toward business F BackPl l Processes / Datao / Messaging & Interface Services w aneTM s Standards Conf Enterprise igur Serv Integration EAI Meta-Data Transformations Sys / Cust atio ice Mgm applications. Model EII om n Des t Ada Ada Mgm k Ada pter pter t Ada pter s s Ada pter s pter spreadsheets s Point Ti voli spreadsheets s ts Methodologies SAS Ni ku Support Soft Solut Patrol General MS Project Ledger DV Doctor Projec t spreadsheets Projec t spreadsheets Tracking NetCool Tracking ions NetCool System CA Data and CA Tools In the “Silos The “Re-” steps used of Technology” Re-Learn modernize the technology set ReReplacetire the foundation for a services ReRe-architectInterface approach toward the technology layers of an ReRe-faceHost organization’s solutions. Re-ReArchitecthost Aircraft CAS 1 1 Maintena Average CATTS 1 1 nce Re-factorPlace Flight Fare 4 1 CAPS Tracking KRONOS 1 1 Cargo CIRRUS/ OAG 2 1 CorporatRODEO Computing Styles, Patterns, Stacks Pillar 1 4 Grdopse DB PRISM 3 3 Project Mail STYLES OF COMPUTING IMPLEMENTATION PATTERNS REFERENCE STACKS Accountin 1 1 Ledger Rapid Classic 3-Tier W eb App g 1 2 MktDSS Rewards Nonstop Online Transactional Resumix 1 1 Revenue Market RevenueManage 1 1 OAGSWA ment OnBoard Optimizat 3 2 Event Processing Book SAASion 3 4 OSS Mart Schedule 1 3 People Classic 4-Tier W eb App .NET / ADE Reference Stack Planning Project W orkflow Spider 1 1 Accountin SWEEP 1 1 SWEEPg Tesserac 2 3 Traffic Traditional Batch t # of USPS 1 Connect 31 WIZARD 2 ions # of Historical Analytical Connect 31 4-Tier Integration App ions J2EE / RCF Reference Stack Near-time Decisioning Real-Time Decisioning EDS Manufacturing 13 Apr 2006 page 8 • EDS Confidential Levels of Optimization Level 1 – Siloed Optimization Level 1 – Siloed Optimization Business Units • Business processes are optimized and work well during normal operations. “Like” operations require duplicative systems and data Level 2 – Aggregated Level 2 – Aggregated Optimization Optimization Supply • Business processes are IPD Mfg Ops Chain Aftermkt grouped together to reduce duplication; and work well during normal operations. Does not solve enterprise investment & irregular operations issues Level 3 – Cross Functional Optimization Level 3 – Cross Functional Supply Optimization IPD Mfg Ops Chain Aftermkt Warranty Incident • Business processes are grouped together; data Supplier Default is shared in context of the business situation. The customer & supplier views are optimized as well as the internal business structures EDS Manufacturing 13 Apr 2006 page 9 • EDS Confidential There are several stages of maturity within an product development organization’s IT environment IT Element Level 1 Level 2 Level 3 Level 4 Level 5 Initial Repeatable Defined Managed Optimized Infrastructure •Disconnected, slow, •Area solutions •Regional solutions •Common architecture •Single common, high- narrow pipe developed to manage developed to manage developed speed, wide increased load increased, integrated bandwidth, high load availability, flexible architecture deployed •Full supplier integration Applications •Disconnected, •Major applications •Applications become •Single Bill of IT •Single integrated Bill Architecture uncoordinated, no choices limited to a more and more decided but not totally of IT with common version control handful integrated – implemented versioning •Proliferation of complexity ensues •Varying versions of implemented •Limited to no applications as IT gains •Integration with same application still •Full supplier integration acceptance suppliers commences deployed integration •Supplier integration more robust Data •Individually developed •Virtually all data •File naming •File naming •Single formatting and stored data files, moves to electronic conventions conventions, format, design, integrated and formatted per engineer •Site-specific data promulgated storage, retention and globally accessible preference (hard copy format, storage and •Data format, storage, availability •Common tagging for included) retention promulgated retention and standardized globally easy search capability •File naming availability •Tagging conventions •Relational tagging to conventions absent standardized across immature but associated dies, jigs, regions burgeoning •Data availability cost, test, sourcing, across engineers financial, etc. limited •Full supplier integration Applications •CMMi 1 •CMMi 2 •CMMi 3 •CMMi 4 •CMMi 5 development Operations •Unique ops processes •Each site has •Common metrics •Global common •Fully deployed ITIL by site documented ops developed and processes, tools and processes •No metrics developed processes deployed metrics developed or captured •Metrics developed at •Tools and processes •Delivery •No common ops tools site level continue to be site- transformation deployed •No common ops tools specific commences deployed EDS Manufacturing 13 Apr 2006 page 10 • EDS Confidential EDS’ Approach EDS Manufacturing 13 Apr 2006 page 11 • EDS Confidential There are natural dependencies in moving towards Level 5 product development IT maturity Knowledge Management Automation and Integration Common process, tools and workflow Data Management Infrastructure Exemplary Complex applications and data architecture subverts movement towards an agile and easily maintained base upon which companies can transform critical product development processes EDS Manufacturing 13 Apr 2006 page 12 • EDS Confidential The journey from the current PLM state and the future has several challenges Current State Challenges Future State $ Requires significant funding Has long project lead times Subject to inherent risk of large COTS deployments Must drive business value $ Over 300 Systems along the way Under 20 Systems Requires substantial business involvement • Large monolith legacy systems – • Global, standard solutions (over 175 mainframe apps) • Primarily COTS based systems based on industry