Product Life Cycle Management


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Cradle to Grave - how to keep the integrity of Product Definition though its life cycle

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Product Life Cycle Management

  1. 1. Product Life Cycle Management Cradle to Grave Anand Subramaniam
  2. 2. <ul><li>“Information is power, and the gain you get from empowering your associates more than offsets the risk of informing your competitors.” </li></ul><ul><ul><li>Sam Walton </li></ul></ul>
  3. 3. Highlights <ul><li>Sustainability & Life Cycles </li></ul><ul><li>New Product Development </li></ul><ul><li>Product Life Cycle </li></ul><ul><li>Product Maturity </li></ul><ul><li>Product Life Cycle Management </li></ul><ul><li>Relationship </li></ul><ul><li>Integration </li></ul><ul><li>Vendors </li></ul>
  4. 4. Sustainability & Life Cycles
  5. 5. Firm’s Sustainability Today Firm’s Responsibility Tomorrow Yesterday Product Manufacturing Product Use Product Retirement Technology Costs Organisation Environment Protection Performance Endurance Economic Efficiency Environment Protection Remanufacturing Reprocessing Less Incineration Less Landfill Disposal <ul><li>Today’s Challenges </li></ul><ul><li>Product take back </li></ul><ul><li>Regulations </li></ul><ul><li>Recycling </li></ul><ul><li>Environmental </li></ul><ul><li>Tomorrow Challenges </li></ul><ul><li>Obligations </li></ul><ul><li>Declarations </li></ul><ul><li>Sustainability </li></ul><ul><li>Climate Protection </li></ul><ul><li>Recyclability (waste) </li></ul><ul><li>Life Cycle Engineering </li></ul>
  6. 6. Life Cycles in a Manufacturing Industry Pre-feasibility Feasibility Development Executing & testing Project launch & PIR Detailed design Commission Operation & Maintenance De-commission Pre-manufacture Operation & manufacture Product usage Product disposal Project Life Cycles – Drivers of Internal Change Asset Life Cycles – O ptimise Internal Operations Product Life Cycles – Profit generated from operations
  7. 7. Life Cycle Integration Detailed design Commission Operation & Maintenance De-commission Pre-feasibility Feasibility Develop Execute & testing Launch Product usage Product disposal Pre-manufacture Project Life Cycle Product Life Cycle Asset Life Cycle
  8. 8. New Product Development
  9. 9. New Product Development - Types <ul><ul><li>Create new product categories as core businesses. </li></ul></ul><ul><ul><li>Require substantial design and process change. </li></ul></ul><ul><ul><li>Render existing products obsolete in long-term. </li></ul></ul>Represent new “system” solutions for customers. Require more resources to develop. Are key to continued product revenue growth. <ul><ul><li>Are hybrids or enhancements of existing products. </li></ul></ul><ul><ul><li>Require minimal changes in design or process, allowing for quick development. </li></ul></ul><ul><ul><li>Require fewer resources to develop new features or functions. </li></ul></ul><ul><ul><li>Help ensure near-term cash flows by maintaining current market share. </li></ul></ul>Incremental / Derivative Next Generation / Platform Products Breakthrough / Radical Products
  10. 10. New Product Development Process Concept Screening* Test Marketing* Opportunity Identification Idea Generation Concept Development Product Development Positioning Development Commercial-isation “ The Fuzzy Front End” *”Stage Gates” Marketing Plan Development
  11. 11. Product Life Cycle
  12. 12. Product Life Cycle - Stages Introduction Monopoly Maturity Oligopoly Growth Monopolistic Decline Pure Competition Industry Sales Industry Profits Time (time at each stage varies greatly) Sales & Profit
  13. 13. Managing Product Life Cycle Negative cash flow Introduction Growth Maturity Decline Sales, cost, and cash flow Cost of development & production Cash flow Net revenue (profit) Sales revenue Loss
  14. 14. Product Life Cycle - Cost Annual Costs Research & Development Production Operation / Support Pre-Production Disposal Time Introduction Maturity Growth Decline
  15. 15. Product Maturity
  16. 16. Product Maturity Causes <ul><li>SKU Obsolescence </li></ul><ul><li>Access to older technology </li></ul><ul><li>Aging/shelf life of components </li></ul><ul><li>Ability to manufacture impaired </li></ul><ul><li>Incompatible replacement parts </li></ul><ul><li>Sources for custom components reduced </li></ul><ul><li>Cost/forecasting of Life-Time-Buy components </li></ul><ul><li>Reduction of component suppliers due to consolidation </li></ul><ul><li>SKU Replacement </li></ul><ul><li>Test cycle </li></ul><ul><li>Re-design cycle </li></ul><ul><li>Agency Re-approvals </li></ul><ul><li>Minimum quantity purchases </li></ul><ul><li>Incompatibility of replacement part tolerances </li></ul><ul><li>Monthly notification of obsolete components </li></ul>
  17. 17. Other Causes for Product Maturity <ul><li>Corporate acquisitions </li></ul><ul><li>Software advancements </li></ul><ul><li>Machine design changes </li></ul><ul><li>Staff / End User untrained </li></ul><ul><li>Technology advancements </li></ul><ul><li>Cost at OEM and End User to switch </li></ul><ul><li>Manufacturing process advancement </li></ul><ul><li>Lack of Spares for existing customer base </li></ul>
  18. 18. Product Life Cycle Management
  19. 19. Product Life Cycle Management <ul><li>Definition </li></ul><ul><ul><li>The management of all phases of a product’s lifecycle, from new idea through to commercialisation and decline. </li></ul></ul><ul><li>Needs </li></ul><ul><ul><li>Store it forever </li></ul></ul><ul><ul><li>Accessible to anyone, anywhere </li></ul></ul><ul><ul><li>Available in a task specific manner </li></ul></ul><ul><ul><li>Comprehensive product information </li></ul></ul><ul><ul><li>Address the needs of the entire company </li></ul></ul>
  20. 20. PLM - “C” Level Focus <ul><li>Business Environment </li></ul><ul><li>Globalisation </li></ul><ul><li>Consolidation </li></ul><ul><li>Market shakeout </li></ul><ul><li>Economic challenges </li></ul><ul><li>Increased competition </li></ul><ul><li>Limited capital funding </li></ul><ul><li>Product customisation </li></ul><ul><li>Changing global security </li></ul><ul><li>Outsourcing scope widening </li></ul><ul><li>Protect Intellectual Property </li></ul><ul><li>Business Objectives </li></ul><ul><li>Optimise supply chains </li></ul><ul><li>Increase market share </li></ul><ul><li>Innovation & Sustainability </li></ul><ul><li>Drive short-term profitability </li></ul><ul><li>Manage product complexity </li></ul><ul><li>Improve customer satisfaction </li></ul><ul><li>Integrate Product Data Systems </li></ul><ul><li>Improve liquidity / cash reserves Increase quality / reduce costs </li></ul><ul><li>Improve speed / time to market </li></ul><ul><li>Design, build, and maintain anywhere & anytime </li></ul><ul><li>Build end-to-end processes & systems </li></ul>
  21. 21. PLM – Speed to Market <ul><li>Captures </li></ul><ul><li>Raw materials & parts </li></ul><ul><li>Manufacturing procedures </li></ul><ul><li>Product intent & customer expectations </li></ul><ul><li>Chemical & Physical properties </li></ul><ul><li>Version </li></ul><ul><li>Re-use </li></ul><ul><li>Regulatory </li></ul><ul><li>History for comparison </li></ul><ul><li>Changes </li></ul><ul><li>Customer demands </li></ul><ul><li>Regulatory changes </li></ul><ul><li>Product improvements </li></ul><ul><li>Cost reduction initiatives </li></ul><ul><li>Manages </li></ul><ul><li>Change over time </li></ul><ul><li>Corporate knowledge about the product </li></ul><ul><li>Interaction with enterprise systems </li></ul><ul><li>Products </li></ul><ul><li>Past (Obsolete) </li></ul><ul><li>Present (Approved) </li></ul><ul><li>Future (Concepts, Awaiting Approval) </li></ul>
  22. 22. Business Drivers for PLM Business Drivers Maximise profitability at each life cycle phase Keeps Integrity of Product Definition though its life Mass Customisation Traceability (Warranty / Quality) Shorter & complex Product Life Cycle Global Competition Product Portfolio Management Spare / Parts Management Shortening Time to Market Standarised & Secure Product Definition Maximise ROI Regulatory Compliance
  23. 23. Benefits of PLM Forecast Accuracy SKU Proliferation Improves Asset Utilisation Cross Boarder Collaboration Decision Making Re-use of Business Intelligence Product Quality Service / Maintenance Time to Market Raw Material Aggregation Integrates People, Process & Systems Reduces Total Cost Cycle Time Scrap & Rework Manual / Paper Process Gap between design & Operations Risks Duplication of Effort
  24. 24. Relationship
  25. 25. Relationship - NPD, PLC & PLM Product Life Cycle Product Life Cycle Management Concept Screening Design & Develop Commer-cialise Market / Pilot Test Service & Support Phase-out Dispose New Product Development
  26. 26. Relationship - PLM, SCM & CRM Minimise Costs Maxmise Profits Concept Screening Design & Develop Commer-cialise Market / Pilot Test Service & Support Phase-out Dispose Supply Chain Management Customer Relationship Management Product Life Cycle Management
  27. 27. Integration
  28. 28. Islands of Automation
  29. 29. PLM & Other System Integration PLM ERP CRM SRM MES Customer Demand Fulfillment Cycle Product Development / Innovation Cycle Next Generation / Platform Products Breakthrough / Radical Products Incremental / Derivative Improve Quality / Reduce Cost
  30. 30. Single / Centralised Data Repository Support Data FMECA Logistics Support Analysis Requirements Management Visibility / Visualisation Stock Mgmt CAD Maintenance Management Product Data Technical Manual Parts Supplier Database Depot Maint Mgmt Distribution, Transportation Defects & Failure Reporting Functional Req. FMECA Results SKU / Part Data Maintenance Mgmt Data Distribution Data Defects & Failures Tech Pub Data Design data Parts Data PLM – Data / Information Exchange Design Data LSA Data Maintenance Mgmt Data Support data Maintenance Mgt Data
  31. 31. End to End - Integration Reporting & Business Analysis Workflow and Event Management Collaboration Exception Management Financial Mngt Product Lifecycle Mngt Customer Order Process Buy Make Imports Material Mngt EDI Forecast & Planning Logistics Shipment
  32. 32. Integrated PLM Scope Part Designs BoMs Changes Models Drawings Simulations Product Portfolio Management Field Notices Custom Configurations Requirements Design Feedback Customer Failure Reports User, Service Manuals Training guides Parts catalogs Suppliers - Local & Foreign Channel Partners - Local & Foreign Customer- Local & Foreign Manufac- turers - Local & Foreign Proposals Customer Requirements Forecasts, Resource / Demand Management Market Requirements Brochures, Data Sheets Preferred Parts Approved Vendors Feasibility Feedback Tooling Designs Work Instructions NC Programs Product Engineers Buyers / Purchasing Concept Engineers Product Marketing Sales Disposal / Recycle Manufac-turing Test / QC Services / Technician Planners / S&OP Channel Managers Compliance Standards Audits Capture Communicate Collaborate Continuously Improve Product Develop & Control
  33. 33. Product / Service Life Cycle Define project , high level scoping Identify requirements and schedule Build , buy , or integrate solution Provision and launch Initiate Plan Design Implement Test Release Project Lifecycle Processes Determine solution architecture Validate Idea generation Preliminary review Detailed review Identify funding and manage resources Identify Need Initial Evaluation In Depth Evaluation Prioritisation Allocate Resources Definition and Decision Processes Rank against others ideas Production Support & Service Management Processes Verify need to Decommission / Recommission Research replace or retire options Validate Need Research Options Decommission / Recommission Processes Determine Approach Recommend next steps Configuration , Change , & Release Management ( e . g . asset tracking , upgrades , change reviews ) Availability Management ( e . g . reliability , capacity , business continuity , security ) Financial Management ( e . g . effort reporting , cost accounting , rate setting ) Incident and Problem Management ( e . g . monitoring , troubleshooting , resolution , root cause analysis ) Major Decision Point NOTE : Phases and process activities can be iterative , skipped , or sequential . Legend Service Management ( e . g . customer relationship management , customer support , lifecycle management ) Concept Screening Design & Develop Comercialise & Support Phase out / Dispose / Strategy Environment Scanning , Needs Assessment , Scoping , and Prioritisation Buy , Build , or Integrate and Release Operate and Manage Replace or Retire Customer Collaboration Product Lifecycle Phases
  34. 34. Vendors
  35. 35. PLM Vendors <ul><li>Niche </li></ul><ul><ul><li>Agile Software </li></ul></ul><ul><ul><li>Dassault Systémes </li></ul></ul><ul><ul><li>PTC </li></ul></ul><ul><ul><li>UGS </li></ul></ul><ul><li>Integrated </li></ul><ul><ul><li>Oracle </li></ul></ul><ul><ul><li>SAP </li></ul></ul>
  36. 36. <ul><li>“ The information we have is not what we want. The information we want is not what we need. The information we need is not available.” </li></ul><ul><ul><li>John Peers </li></ul></ul><ul><ul><li>President, Logical Machine Corporation </li></ul></ul>
  37. 37. <ul><li>Good Luck </li></ul><ul><li> </li></ul>