Product Life Cycle Management

Product Life Cycle Management Cradle to Grave Anand Subramaniam

“Information is power, and the gain you get from empowering your associates more than offsets the risk of informing your competitors.”

Sam Walton

Highlights

Sustainability & Life Cycles

New Product Development

Product Life Cycle

Product Maturity

Product Life Cycle Management

Relationship

Integration

Vendors

Sustainability & Life Cycles

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

Today’s Challenges

Product take back

Regulations

Recycling

Environmental

Tomorrow Challenges

Obligations

Declarations

Sustainability

Climate Protection

Recyclability (waste)

Life Cycle Engineering

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

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

New Product Development

New Product Development - Types

Create new product categories as core businesses.

Require substantial design and process change.

Render existing products obsolete in long-term.

Represent new “system” solutions for customers. Require more resources to develop. Are key to continued product revenue growth.

Are hybrids or enhancements of existing products.

Require minimal changes in design or process, allowing for quick development.

Require fewer resources to develop new features or functions.

Help ensure near-term cash flows by maintaining current market share.

Incremental / Derivative Next Generation / Platform Products Breakthrough / Radical Products

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

Product Life Cycle

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

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

Product Life Cycle - Cost Annual Costs Research & Development Production Operation / Support Pre-Production Disposal Time Introduction Maturity Growth Decline

Product Maturity

Product Maturity Causes

SKU Obsolescence

Access to older technology

Aging/shelf life of components

Ability to manufacture impaired

Incompatible replacement parts

Sources for custom components reduced

Cost/forecasting of Life-Time-Buy components

Reduction of component suppliers due to consolidation

SKU Replacement

Test cycle

Re-design cycle

Agency Re-approvals

Minimum quantity purchases

Incompatibility of replacement part tolerances

Monthly notification of obsolete components

Other Causes for Product Maturity

Corporate acquisitions

Software advancements

Machine design changes

Staff / End User untrained

Technology advancements

Cost at OEM and End User to switch

Manufacturing process advancement

Lack of Spares for existing customer base

Product Life Cycle Management

Definition

The management of all phases of a product’s lifecycle, from new idea through to commercialisation and decline.

Needs

Store it forever

Accessible to anyone, anywhere

Available in a task specific manner

Comprehensive product information

Address the needs of the entire company

PLM - “C” Level Focus

Business Environment

Globalisation

Consolidation

Market shakeout

Economic challenges

Increased competition

Limited capital funding

Product customisation

Changing global security

Outsourcing scope widening

Protect Intellectual Property

Business Objectives

Optimise supply chains

Increase market share

Innovation & Sustainability

Drive short-term profitability

Manage product complexity

Improve customer satisfaction

Integrate Product Data Systems

Improve liquidity / cash reserves Increase quality / reduce costs

Improve speed / time to market

Design, build, and maintain anywhere & anytime

Build end-to-end processes & systems

PLM – Speed to Market

Captures

Raw materials & parts

Manufacturing procedures

Product intent & customer expectations

Chemical & Physical properties

Version

Re-use

Regulatory

History for comparison

Changes

Customer demands

Regulatory changes

Product improvements

Cost reduction initiatives

Manages

Change over time

Corporate knowledge about the product

Interaction with enterprise systems

Products

Past (Obsolete)

Present (Approved)

Future (Concepts, Awaiting Approval)

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

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

Relationship

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

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

Integration

Islands of Automation

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

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

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

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

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

Vendors

PLM Vendors