PLM Roadmap for Global Sustainability

PLM: Technology Roadmaps for Global Sustainability Abe Walton, Ph.D(c), M.S. Assistant Professor, Industrial Technology College of Technology Purdue University

Abstract The PLM Center at Purdue University has p partnered with key PLM p y practitioners and vendors in exploratory research to identify the implications of new PLM technologies on p g organizational and strategic requirements, and the corresponding best practices, processes, and initiatives that lead to the development of roadmaps for successful implementation of future state of PLM advancements. Copyright © Abram Walton - Purdue University

Overview • The Product Lifecycle Management Center of y Excellence at Purdue University • PLM Metrics research • Research purpose and rationale • Exploratory Grounded Theory methodology •RResearch Fi di h Findings • Implications Copyright © Abram Walton - Purdue University

Future State Roadmaps Study: utu e oad aps Purpose and Rationale • Limited studies on Organizational Roadmaps for PLM Success • Understand how to address organizational and cultural issues pertinent to PLM successes • Review best-practice strategies from key industry leaders • Bring a Metrics Framework research full circle •B Benchmark i d t practices h k industry ti Copyright © Abram Walton - Purdue University

PLM Strategy Map Reduce Increase Financial Inputs/ Increase product unit p market revenue h share R l Results costs Enhance Lower L Increase Improve Customer C t product customer cooperation Wait Time satisfaction w/ supply Outputs quality chain partners Manage Plug gaps Business Reduce increased Reduce in current Lower Procurement product p Time-to-market Time to market business Processes Cycle Time Steps complexity processes Organizational Reduce change Reduce Increase production Capacity & related admin rework & Network Capacity overhead Outcomes inventory scrap y p Copyright © Abram Walton - Purdue University

• Input metrics • Process metrics • Resources, , • Activities, efforts, including cost workflow and workforce; Financial Results Are We Doing The Right Things? g g g (What?) Financial Processes Organizational O i ti l Customers Capacity • Output metrics: Are We Doing Things Right? Tactical & (How?) •Outcomes metrics: Efficiency Strategic & • P d t and Products d Effectiveness services •Results, impacts produced Copyright © Abram Walton

Research Methodology • Mixed Methods (quantitative and qualitative data) • Surveyed 150 industry partners 1-hour long i • 30 1 h l interviews ( i (stratified sampling) ifi d li ) •1) They understand the business philosophy of PLM; and •2) They are actively PLMing not just working with a part PLMing, of PLM; and •3) They work in a capacity or level within the organization that would enable or require them to strategically foresee future trends in PLM, possible future applications, needed technological advancements, and requirements for successful and competitive implementation. Copyright © Abram Walton - Purdue University

Metric Objectives The development of useful metrics begins with careful formulation of objectives for creating j g them. Important questions considered included the following: What metrics are appropriate in the measurement of PLM performance? What are the key features of a balanced performance measurement system? How can a performance measurement system help drive desired business and human capital results? How can companies determine if a global, regional, or local approach is appropriate? What are the potential outcomes and benefits from an effective performance measurement system? ff ti f t t ? Copyright © Abram Walton - Purdue University

Metric Validation In order for a participant to consider the metric “in use”, the item had to use” pass the following criteria: be collected at least on an annual basis; be utilized by all members of top management; be stored in a manner that ensures availability t numerous appropriate people il bilit to i t l in the organization; have a standard method for calculation Copyright © Abram Walton - Purdue University

Financials Mfg cash expense per product/project 90 Mfg eng cash Mfg capital cost per 80 expense cost per product/project 70 product/project 60 50 40 Plan/design cash Cash expense cost 30 expense cost per per product/project 20 product/project Used 10 0 Not used Mfg eng dev cost per g g p Mfg eng capital cost g g p Used/important project/product per product/project Plan/design dev cost Mfg dev cost per per product/project project/product Plan/design cost per product/project Copyright © Abram Walton - Purdue University

Process Cost per mfg error 100 90 Capital cost per Time for mfg eng 80 70 project/product 60 50 40 30 Cost per mfg eng Time for mfg 20 10 error 0 Business processes Cost per plan & re-engineered design errors Used Dev cost per Parts re-used project/product Not used Used/important Copyright © Abram Walton - Purdue University

Outputs Post-prod design changes p g g New products customers 100 Suppliers mtg reqs 90 Time for product plan & New customers 80 design 70 RFP s Responses to RFP's 60 Eng change orders 50 Cost of tool 40 30 Plan & design errors design/redesign 20 10 Used U d Personnel output 0 Mfn eng errors Not used Used/important Revenue from new Pre-production design Pre production products changes RFP's won Product prototypes Time to market for new Time for break-even products Time to market for Inventory product improv Mfn errors Copyright © Abram Walton - Purdue University

Short-Term Outcomes Market share 100 Simulated tests 90 Overall revenue 80 70 Simulated 60 Time to develop prototypes 50 new ideas 40 30 20 Used d 10 Hours of mfn Product recalls 0 Not used downtime Used/important Apps, OS, & DBMS Product failures integrated Documentation of New \"support\" functions/features Documentation of disposal \"disposal\" Copyright © Abram Walton - Purdue University

Medium-term Outcomes Collaborative research 100 90 80 70 60 Warranty claims 50 Liability lawsuits 40 30 20 Used 10 0 Not used Used/important New industry New products initiatives Product ideas evaluated Copyright © Abram Walton - Purdue University

Long-term Outcomes Reallocation mfg eng processs time i 70 60 50 40 30 20 10 Used 0 Not used Used/important Reallocation plan ll l Reallocation mfg & design process process time time Copyright © Abram Walton - Purdue University

Performance-Based Measurement System Strategic Initiatives Goals Infrastructure Other Indirects Objectives/Targets Goal 1 Program 1 $ xx M M $ xx M Goal 2 $ xx M E Goal 3 F $ xx M Program 2 $ xx M T Goal 4 $ xx M R Goal 5 P C Program 4 Program 3 $ xx M I Goal 6 O Program 5 $ xx M C Goal 7 S Goal 8 $ xx M Program 6 $ xx M Goal 9 $ xx M Copyright © Abram Walton - Purdue University Adapted from: Rohm, 2002

Fundamentals of Lean Systems The Fundamentals of Lean section incorporates process thinking and tools leading to a new leadership philosophy F based on the pursuit of perfection. The FIT Organization Institution of Change Advanced manufacturing is the realization of a continuous I T improvement cycle. The Institution of Change section incorporates the organizational vision that leads to an organizational culture for change. Teamwork The Teamwork section represents the realization for strong interpersonal leadership skills through effective communication, creating an environment for employee commitment and empowerment. The organization has achieved a FIT culture making use of the tools, skills, and leadership at all skills and leadership at all levels of the organization. The pursuit of excellence is incorporated into all facets Becoming FIT: g of the organization with all of the organization with all The key is concurrent education and application of all three pillars employees having of the model. Engage, educate, execute, and expect results. The area of overlap indicates true and sustainable improvement. commitment for the vision. Copyright © Abram Walton - Purdue University

Value Proposition • Strategic PLM Road-mapping requires: • Consistent and well understood mission • Vision of the journey and foreseeable potholes or roadblocks • A shared plan to traverse the road • Resources specifically allocated for the journey • A commitment to Lean Principles p •7+1 Muda – Types of waste (TOM D WIP U) Copyright © Abram Walton - Purdue University

Keys to Success • Dialogue about real world examples of successful p and failed PLM initiatives to impact: •Technology selection and contraction negotiations •Lean (manufacturing, engineering, p ( g, g g, process improvement) p ) •Business and Revenue model innovation •Ideation and innovation Ideation •Talent Management •Cross-functional teams and education Cross functional •Action Learning Copyright © Abram Walton - Purdue University

Next Steps • The Product Lifecycle Center for Excellence at Purdue Universityy • Quantifiably validate largest roadblocks • Bring Metrics Framework full circle • Case Studies • Gap analysis • Factor analysis y Copyright © Abram Walton - Purdue University

PLM Roadmap for Global Sustainability

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