A new world challenges PLM  Mike Burkett VP Research, PLM and Innovation AMR Research Siemens PLM Executive Summit March 2...
Agenda <ul><li>State of the economy & industry impacts </li></ul><ul><li>Three executive priorities next 12 months </li></...
Consumer’s and Manufacturer’s begin Recovery © 2010 AMR Research, Inc.  |  Page  Updated 2-26-10 <ul><li>“ In 42 years of ...
Dept. of Defense see’s pressure to tighten their belt  © 2010 AMR Research, Inc.  |  Page  Source: US DoD Natl Defense Bud...
© 2010 AMR Research, Inc.  |  Page  © 2009 AMR Research, Inc.  |  Page  Q. How has the recent economic environment impacte...
Designing for Value Impacts All Industries © 2010 AMR Research, Inc.  |  Page  <ul><li>Practices </li></ul><ul><li>Segment...
Innovation & operations excellence in global markets  © 2010 AMR Research, Inc.  |  Page  Source: AMR Research, 2009 Devel...
PLM must support new business requirements <ul><li>Manage product complexity but deliver differentiation </li></ul><ul><li...
Design proliferation impacts forecast accuracy © 2010 AMR Research, Inc.  |  Page  Number of SKUs Demand Forecast Accuracy...
Manufacturer OEM Retailer/Distributor Consumer Sales Time Sales Time Sales Time Design Variability and the Bullwhip Effect...
© 2010 AMR Research, Inc.  |  Page  © 2009 AMR Research, Inc.  |  Page  Q. What product  supply manufacturing strategies d...
Design for supply chains maturity model © 2010 AMR Research, Inc.  |  Page  Standardize Low High <ul><li>CUMULATIVE  </li>...
© 2010 AMR Research, Inc.  |  Page  Source: AMR Research, 2009
PLM must support new business requirements <ul><li>Manage product complexity but deliver differentiation </li></ul><ul><li...
Ford: serving global markets profitably <ul><li>2008   </li></ul><ul><li>“ We can’t make money with capacity utilization n...
© 2010 AMR Research, Inc.  |  Page  © 2009 AMR Research, Inc.  |  Page  Q. How critical are each to support your GPD proce...
© 2010 AMR Research, Inc.  |  Page  Q. How important are the following manufacturing planning activities   (1=Not at all /...
Holistic OPEX performance management © 2010 AMR Research, Inc.  |  Page  Demand Product Supply Network Process Control Con...
© 2010 AMR Research, Inc.  |  Page  Benefits anticipated by reducing physical prototypes  Q. What benefits would you hope ...
PLM must support new business requirements <ul><li>Manage product complexity but deliver differentiation </li></ul><ul><li...
© 2010 AMR Research, Inc.  |  Page  GHG emission data supplied to supply chain partners – 2008 vs. 2009 Source: AMR Resear...
© 2010 AMR Research, Inc.  |  Page  From Paper vs Plastic to Bottles vs Cans
© 2010 AMR Research, Inc.  |  Page  Low Strategic Priority High Performance Time Domain Future Past Source: AMR Research, ...
Summary <ul><li>Align PLM to a demand-driven-value-network strategy </li></ul><ul><li>Manage product complexity but delive...
© 2010 AMR Research, Inc.  |  Page  Thank You. Mike Burkett VP Research, PLM and Innovation AMR Research [email_address]
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AMR on PLM Priorities at the Siemens PLM Innovation Leadership Summit

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Mike Burkett of AMR Research presented on PLM priorities in 2010 based on findings of some recent research on economic impact. See http://www.siemens.com/plm/blog for related blog post.

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AMR on PLM Priorities at the Siemens PLM Innovation Leadership Summit

  1. 1. A new world challenges PLM Mike Burkett VP Research, PLM and Innovation AMR Research Siemens PLM Executive Summit March 2010 Entire contents © 2010 AMR Research, Inc. All rights reserved. | Page
  2. 2. Agenda <ul><li>State of the economy & industry impacts </li></ul><ul><li>Three executive priorities next 12 months </li></ul><ul><li>Lessons for moving foreword </li></ul>© 2010 AMR Research, Inc. | Page
  3. 3. Consumer’s and Manufacturer’s begin Recovery © 2010 AMR Research, Inc. | Page Updated 2-26-10 <ul><li>“ In 42 years of retailing, we’ve never seen such difficult times for the consumer.” </li></ul><ul><ul><li>Brian Dunn - President, Best Buy, Fortune, 01/19/09 </li></ul></ul>Consumer Sentiment Purchasing Managers Index
  4. 4. Dept. of Defense see’s pressure to tighten their belt © 2010 AMR Research, Inc. | Page Source: US DoD Natl Defense Budget Estimate FY09 (Constant dollars) $518.3b $501.4b
  5. 5. © 2010 AMR Research, Inc. | Page © 2009 AMR Research, Inc. | Page Q. How has the recent economic environment impacted your organization? Impact of the economic environment on design N = 185 US-based manufacturers More cost reductions, less spending <ul><li>Who has been able to grow revenue? </li></ul><ul><li>Those w/ best-in-class GDP (32%) </li></ul>Source: AMR Research, 2009 75% 43% 35% 34% 31% 28% 23% 19% 18% 17% 46% 56% 46% 57% 62% 55% 21% 32% 8% 10% 20% 12% 10% 22% 60% 49% 9% Cost reductions Supplier non-performance, viability, risk Integrate ops + product development Competitive market share SC failure rate, lost continuity or partner visibility Use of partners for GPD Product portfolio complexity Revenue growth R&D spending Has increased No change Has decreased
  6. 6. Designing for Value Impacts All Industries © 2010 AMR Research, Inc. | Page <ul><li>Practices </li></ul><ul><li>Segmentation </li></ul><ul><li>Platform design </li></ul><ul><li>Digital prototypes </li></ul><ul><li>Challenges </li></ul><ul><li>Supplier readiness </li></ul><ul><li>Organizational change </li></ul><ul><li>Value Chain Partnering </li></ul>
  7. 7. Innovation & operations excellence in global markets © 2010 AMR Research, Inc. | Page Source: AMR Research, 2009 Develop Single Plant Plant 1 Plant 2 Pilot Facility Geo. Region Geo. Region Plant 2b Develop Develop Plants Plants Design Networks Mfg. Networks Regional Variants
  8. 8. PLM must support new business requirements <ul><li>Manage product complexity but deliver differentiation </li></ul><ul><li>Integrate design and manufacturing globally </li></ul><ul><li>Sustainability embedded into product design </li></ul>© 2010 AMR Research, Inc. | Page
  9. 9. Design proliferation impacts forecast accuracy © 2010 AMR Research, Inc. | Page Number of SKUs Demand Forecast Accuracy (percent) % Bad
  10. 10. Manufacturer OEM Retailer/Distributor Consumer Sales Time Sales Time Sales Time Design Variability and the Bullwhip Effect Design for reduced complexity helps reduce the noise!
  11. 11. © 2010 AMR Research, Inc. | Page © 2009 AMR Research, Inc. | Page Q. What product supply manufacturing strategies do you currently pursue to ensure global product availability? Q. Which additional strategies do you expect to pursue 2 years from now? Product supply mfg strategies for global availability N = 185 US-based manufacturers Companies plan to move to standard platforms supporting multi-plant strategy Source: AMR Research, 2009
  12. 12. Design for supply chains maturity model © 2010 AMR Research, Inc. | Page Standardize Low High <ul><li>CUMULATIVE </li></ul><ul><li>VALUE </li></ul><ul><li>Faster NPI </li></ul><ul><li>Lower TCO </li></ul>Process & Workflow Re-use Parts & Suppliers Simulation & Design for (X) Optimize Maturity & Complexity Profitable Innovation Sustain margins Source: AMR Research, 2009 Today Catalog search part classification Future Requires attribute knowledge and analytics
  13. 13. © 2010 AMR Research, Inc. | Page Source: AMR Research, 2009
  14. 14. PLM must support new business requirements <ul><li>Manage product complexity but deliver differentiation </li></ul><ul><li>Integrate design and manufacturing globally </li></ul><ul><li>Sustainability embedded into product design </li></ul>© 2010 AMR Research, Inc. | Page
  15. 15. Ford: serving global markets profitably <ul><li>2008 </li></ul><ul><li>“ We can’t make money with capacity utilization numbers in the 70s…we study our global operations to make sure we’re doing the right thing…a global platform strategy allows for better utilization across product segments .” </li></ul><ul><li>Joe Hinrichs, Ford group vice president for global manufacturing, 2008 Autoline Detroit interview </li></ul><ul><li>2009 </li></ul><ul><li>“ Ford reported its second consecutive quarterly profit —and more impressively, a swing from a $7.7 billion cash burn a year earlier to positive cash flow of $1.3 billion in the just-ended third quarter.” </li></ul><ul><li>Wall Street Journal , “How Ford Is Making Its Comeback”, November 4, 2009 </li></ul>© 2010 AMR Research, Inc. | Page
  16. 16. © 2010 AMR Research, Inc. | Page © 2009 AMR Research, Inc. | Page Q. How critical are each to support your GPD processes and achieve desired performance? (1=Not very /10=Extremely critical) Q. How well would you say your company performs these processes today? (1=Poorly /10=Extremely well) Performance Gap 16% 24% - 8% 6% [TOP 3 BOX SUMMARY] Global Product Development process gaps N = 185 US-based manufacturers 21% - Validated iterations, simulations, methods + calculations Includes suppliers, sources, inventory availability, material specs Source: AMR Research, 2009
  17. 17. © 2010 AMR Research, Inc. | Page Q. How important are the following manufacturing planning activities (1=Not at all / 10=Extremely important) Q. Rate how well would your company performs in each. (1=Poorly /10=Extremely well) Performance Gap 1% 8% 11% 8% [TOP 3 BOX SUMMARY] Manufacturing planning gaps N = 142 High-Tech manufacturing companies Source: AMR Research, 2009
  18. 18. Holistic OPEX performance management © 2010 AMR Research, Inc. | Page Demand Product Supply Network Process Control Control Specifications Manufacturing Specifications Operationalized Demand Demand-Driven Supply Product Management Production Management Process Automation and Control Operations Performance Management Platform Smart workflows Smart workflows Smart workflows Source: AMR Research, 2009
  19. 19. © 2010 AMR Research, Inc. | Page Benefits anticipated by reducing physical prototypes Q. What benefits would you hope to achieve by reducing use or cycle-time of physical prototypes? Q. Which would be most important for your company? N = 142 High-Tech manufacturing companies Hope to achieve by reducing use of physical prototypes: Most important (top 3) 25% 24% 23% Top reason for product failure NPD&L gap area Source: AMR Research, 2009
  20. 20. PLM must support new business requirements <ul><li>Manage product complexity but deliver differentiation </li></ul><ul><li>Integrate design and manufacturing globally </li></ul><ul><li>Sustainability embedded into product design </li></ul>© 2010 AMR Research, Inc. | Page
  21. 21. © 2010 AMR Research, Inc. | Page GHG emission data supplied to supply chain partners – 2008 vs. 2009 Source: AMR Research, 2009 GHG = Green House Gas
  22. 22. © 2010 AMR Research, Inc. | Page From Paper vs Plastic to Bottles vs Cans
  23. 23. © 2010 AMR Research, Inc. | Page Low Strategic Priority High Performance Time Domain Future Past Source: AMR Research, 2009 Business Value Control Operational Excellence Growth Compliance Hindsight Foresight Insight Reporting Analysis Monitoring Predictive Analytics Dynamic Intervention Event Mgmt Product Analysis (PLM/LCIA) Investment Optimization Sustainable Performance Carbon Transactions Traceability Dashboards Historians Process Control Data Capture Pro-forma Reporting Asset Management Energy Management Resource Utilization Sustainable Logistics/ Supply Chain Auditing Time- series Regulatory Updates Trending/ forecasting Sustainable Procurement Sustainable Project Assessment CSR Stakeholder Engagement Building Information Modeling Product Stewardship Green IT Bench- marking Materials Compliance & Product Safety EH&S
  24. 24. Summary <ul><li>Align PLM to a demand-driven-value-network strategy </li></ul><ul><li>Manage product complexity but deliver differentiation </li></ul><ul><li>Integrate design and manufacturing excellence globally </li></ul><ul><li>Embed sustainability into product design </li></ul>© 2010 AMR Research, Inc. | Page
  25. 25. © 2010 AMR Research, Inc. | Page Thank You. Mike Burkett VP Research, PLM and Innovation AMR Research [email_address]

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