Is plm more important than erp (question mark)

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  • 1. Is PLM more important than ERP? Ingmar Boon Stephan Monsieur December 2011
  • 2. Agenda What is PLM ? Typical processes supported by PLM One Practical example of PLM PLM + ERP = VALUE Final thoughts … Q&A 2
  • 3. What is PLM? 3
  • 4. Understanding PLMIntroduced at the turn of the century, PLM still lacks a common, definitive definition PTC defines PLM as: A solution that enables manufacturers to optimize the management and evolution of all aspects of the product’s definition (bill-of-materials such as eBOM, mBOM, sBOM, bill-of-processes such as Process Plans, Bill of Resources) throughout the product’s entire lifecycle – from conception to retirement – in a single environment PLM typically focuses for 90% on the phases before ‘Release To Manufacturing’ 4
  • 5. PLM versus ERP Physical SUPPLIERS Product Digital Product MANUFACTURING Digital Physical CUSTOMERS ENGINEERING Product Product PROCUREMENT Release to Manufacturing MARKETING Digital SALES Digital Product Product SERVICE 5
  • 6. What are their focus points? ERP (Enterprise Resource Planning) Execution of Manufacturing, repeated Planning & Sourcing and transactions Control Distribution BOM to procured processes Inventory / part/assembly order lifecycles level PLM (Product Lifecycle Management) Innovation - Controlled Managed change Design Complete BOM management Creativity Processes Management (spanning as-designed BOM, as- Visibility across planned BOM, as-serviced BOM, and as-built BOM) the entire product lifecycle 6
  • 7. Is PLM more important than ERP? Where is the cost of a product determined? Committed Cost vs. Lifecycle “Total Product Confidence” 100 85% Digital Physical 70% Product Life Cycle Cost Product 80 Determination 60 35% 40 22% 20 Cost Reduction Opportunities Conceptual Design Detailed Design Production Operations Support Release to ManufacturingSource: DARPA RaDEO Project 7
  • 8. Typical processes supported by PLM 8
  • 9. Optimizing Product Development Processes is Critical PRODUCT DEVELOPMENT LIFECYCLE Organization Plan Concept Design Validate Production Support Portfolio Management Program Management Project ManagementManagement Environmental Performance Management Regulatory Compliance Quality & Reliability Management Change and Configuration Management Proposal ResponseSales & Marketing Requirements Capture and Management Release to Concept Development Manufacturing System Design Detailed DesignEngineering Verification and Validation Variant Design & Generation Design Outsourcing Early SourcingSourcing Component and Supplier Management Manufacturing Process ManagementManufacturing Tooling Design and Manufacture Manufacturing Outsourcing Product Support Analysis & PlanningService Technical Information Creation & Delivery Main PLM Focus Performance Analysis & Feedback 9
  • 10. One Practical example of PLM 10
  • 11. The actors in the Product Development ProcessExample Peter Project Manager Dimitri Designer Mike Manufacturer © 2011 PTC 11
  • 12. Which tools is Dimitri Designer using ? MCAD Applicatie CAD Viewing application Technical Documentation Product CAD Deliverables Documentation tool Dimitri TechnicalDesigner Illustration PLM Application Illustration tool PDF – web Documents, Spreadsheets, Email, … Microsoft Office © 2011 PTC 12
  • 13. The process … CAD Illustration Viewing ERP Release Accept ReleaseDocumentation Dimitri Peter Mike Designer Project Manager Manufacturer PLM MS Office PLM PLM Viewing Change needed ! © 2011 PTC 13
  • 14. Dimitri Designer performs a last check before initiatingthe release CAD Illustration ProductView ERP Release Accept ReleaseDocumentation Dimitri Peter Mike Designer Project Manager Manufacturer PLM Microsoft Office Windchill Windchill PDMLink ProductView PDMLink Change needed ! © 2011 PTC 14
  • 15. Dimitri uses his PLM tool to centralise all Product data Product Housing Requirements Battery Viewables CAD Model Purchased Assy Data Sheets AML / AVL PCA Analysis Discloses & Schematic Declarations PCB Approved Suppliers Classified Component Std Parts Attributes AML / AVL ASICs Firmware Assy Component Software Mechanical Parts AVL Software Manual © 2011 PTC 15
  • 16. Dimitri uploads an important email to PLM © 2011 PTC 16
  • 17. Dimitri performs a final check on the Creo data 17 © 2011 PTC
  • 18. Dimitri’s illustration created in Arbortext Isodraw is alsoready © 2011 PTC 18
  • 19. He inserted the illustration in the product manual(Arbortext Editor) © 2011 PTC 19
  • 20. Dimitri Designer initiates the release process Creo Arbortext Isodraw ProductView ERP Release Accept ReleaseArbortext Editor Dimitri Peter Mike Designer Project Manager Manufacturer Windchill Microsoft Office Windchill PDMLink Windchill PDMLink ProductView PDMLink Change needed ! © 2011 PTC 20
  • 21. The release process gets started in PLM Promotion Request Approved Approve Promotion Request Promotion Request Denied © 2011 PTC 21
  • 22. Peter Project Manager gets a notification email abouthis task © 2011 PTC 22
  • 23. Peter Project Manager performs review before approvingthe releasing Creo Arbortext Isodraw Viewing ERP Release Accept ReleaseArbortext Editor Dimitri Peter Mike Designer Project Manager Manufacturer Windchill Microsoft Office Windchill PDMLink PLM PDMLink Viewing Change needed ! © 2011 PTC 23
  • 24. Peter has all information available to perform his review Product Housing Requirements Battery Viewables CAD Model Purchased Assy Data Sheets AML / AVL PCA Analysis Discloses & Schematic Declarations PCB Approved Suppliers Classified Component Std Parts Attributes AML / AVL ASICs Firmware Assy Component Software Mechanical Parts AVL Software Manual © 2011 PTC 24
  • 25. Peter uses ProductView to view all MCAD information © 2011 PTC 25
  • 26. Peter opens the PDF manual in ProductView(or Acrobat) © 2011 PTC 26
  • 27. After reviewing all material Peter approves the Releasein PDMLink © 2011 PTC 27
  • 28. Mike Manufacturer has all information available from ERP Creo Arbortext Isodraw ProductView ERP Release Accept ReleaseArbortext Editor Dimitri Peter Mike Designer Project Manager Manufacturer Windchill Microsoft Office PLM PDMLink Windchill ProductView PDMLink Change needed ! © 2011 PTC 28
  • 29. Sara-Item Lines 29
  • 30. Mike Manufacturer wants to initiate a Change … Creo Arbortext Isodraw ProductView ERP Release Accept ReleaseArbortext Editor Dimitri Peter Mike Designer Project Manager Manufacturer Windchill Microsoft Office Windchill PDMLink Windchill PDMLink ProductView PDMLink Change needed ! © 2011 PTC 30
  • 31. The change needs to end up in the PLM system The change ERP PLM © 2011 PTC 31
  • 32. Mike creates a markup in Viewing Applicationto indicate what needs to be changed © 2011 PTC 32
  • 33. Mike creates the Change Notice in PLMby copying the data from the clipboard © 2011 PTC 33
  • 34. Dimitri Designer performs change actions using PLM CAD Illustration ProductView ERP Release Accept ReleaseDocumentation Dimitri Peter Mike Designer Project Manager Manufacturer PLM Microsoft Office Windchill Windchill PDMLink ProductView PDMLink Change needed ! © 2011 PTC 34
  • 35. Dimitri designer gets a notification sayinghe needs to perform a Change Notice task © 2011 PTC 35
  • 36. Dimitri makes the change in CAD andchecks it into PLM © 2011 PTC 36
  • 37. The illustration gets updated automatically © 2011 PTC 37
  • 38. The manual gets updated automatically © 2011 PTC 38
  • 39. The viewable gets updated automatically © 2011 PTC 39
  • 40. The complete BOM in PLM gets updated automatically © 2011 PTC 40
  • 41. The process … CAD Illustration Viewing ERP Release Accept ReleaseDocumentation Dimitri Peter Mike Designer Project Manager Manufacturer PLM Microsoft Office PLM PLM Viewing Change needed ! © 2011 PTC 41
  • 42. PLM + ERP = VALUE 42
  • 43. PLM and Production Systems are Complementary 54% “ Best in class companies  are 1.5 times more likely  to have process that span  PLM and ERP systems.”  35% Aberdeen “Integrating the PLM Ecosystem” Best in Class All Others 43
  • 44. Key Applications GroupsRange of Processes Covered What How Where and When Process Design Production ProductionCAD Product Design - Bridging the Gap – Planning Execution MBOM Process Plan (routing) Workinstructions Processes Supporting applications PLM Solution ? ERP Solution MES MES Solution Where? Where should we draw the line between PLM and ERP/MES? How do we implement a business process across two value chains? 44
  • 45. Concurrent Product and Manufacturing Process Designis Key to Drive Profitable Growth Concept Development System Design Reduce Cycle time Detailed DesignLimited opportunity for Manufacturing to influence design and  Manufacturing Process Production Full scale Management Ramp-up Productionreduce cost Reduce Cost of Change Reduce MFG Cost “   [Manufacturing companies] identified that the need to reduce manufacturing costs was driving their  need to improve their manufacturing planning process at practically the same rate as compressed  development schedules.” Aberdeen Group, Digital Manufacturing Planning – Concurrent Development of Product and Process, 11/2007 45
  • 46. PD Processes span PLM and ERP systems PLM ERP Requirements Capture and Management Configuration Management System Design Detailed Design Variant Design and Generation Manufacturing Process Management Change Management Production Scheduling Inventory Management Sourcing and Procurement Sales and Order Management Shipping Logistics Accounting and Financial Reporting 46
  • 47. Use case 1 PLM ERP Requirements Capture and Management Configuration Management System Design Detailed Design Variant Design and Generation Manufacturing Process Management Change Management Production Scheduling Inventory Management Sourcing and Procurement Sales and Order Management Shipping Logistics Accounting and Financial Reporting 47
  • 48. Example Use Cases linked to the Development ProcessTypical Development Work PLM - Stocklevel - LeadTime - Cost - Stocklevel - LeadTime - Cost - Stocklevel - LeadTime - Cost TOPLEVEL Partial Release Subassy 10 Subassy 20 Subassy 30 Part 11 Part 21 Part 31 Part 12 Part 22 Part 32 Long Lead Items Part 23 48
  • 49. Use case 2 PLM ERP Requirements Capture and Management Configuration Management System Design Detailed Design Variant Design and Generation Manufacturing Process Management Change Management Production Scheduling Inventory Management Sourcing and Procurement Sales and Order Management Shipping Logistics Accounting and Financial Reporting 49
  • 50. Example Use Cases linked to Release To ManufacturingRelease To Manufacturing PLM TOPLEVEL Subassy 10 TOPLEVEL Subassy 20 Subassy 30 TOPLEVEL Subassy 10 Subassy 20 Subassy 30 Part 11 Part 21 Part 31 Subassy 10 Subassy 20 Subassy 30 Part 11 Part 21 Part 31 Part 12 Part 22 Part 32 Part 11 Part 21 Part 31 Part 12 Part 22 Part 32 Part 23 Part 12 Part 22 Part 32 Part 23 Part 23 EBOM MBOM RTM ERRORS 50
  • 51. Final thoughts … 51
  • 52. How PLM is EvolvingBest of breed PLM’s are now enterprise systems Yesterday Today Design Supplier Strategy Strategy CRM PLM Cost & Green Strategy PLM ERP HR Service SCM Strategy Mfg. Mfg. Strategy ERP …. HR CRM © 2010 PTC 52
  • 53. The PTC Value Roadmap © 2010 PTC 53
  • 54. Call to Action Contact PTC • Stephan Monsieur You can connect (smonsieur@ptc.com) with an existing • Ingmar Boon PTC partner (iboon@ptc.com) 54
  • 55. Questions ?• Diamond Sponsors Thanks to• Gold Sponsors