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PLM_for_New_Normal_KK_Pres_May15

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PLM_for_New_Normal_KK_Pres_May15

  1. 1. Siemens PLM Connection 2015 Dallas, TX May 18-21 www.siemensplmconnection.org #PLMCONX PLM for New Normal by Krish Krishnamurthy Session Number 15279 Business Process Improvement, Organizational Change Mgmt. Track 21st May 2015 – 3:45 PM - Conference Room: Dallas A3
  2. 2. Unrestricted © Siemens AG 2015 2015_AprPage 2 Siemens PLM Software 1. What is New Normal? • Experiences if any?
  3. 3. #PLMCONX | www.siemensplmconnection.org Smart Innovations transforming business landscape
  4. 4. Unrestricted © Siemens AG 2015 2015_AprPage 4 Siemens PLM Software Agenda Definition Industry Experiences Solution Approach Takeaways
  5. 5. Transformational technologies + Integrated Value Chain = maximum results Company-wide challenges require Holistic Solutions 12 3 54 Product design Production planning Production engineering Production execution ServicesBusiness Processes Others IOT, Cloud & other Technologies Mfg. Technologies 3D Printing, Robotics, .. Knowledge Automation
  6. 6. Unrestricted © Siemens AG 2015 2015_AprPage 6 Siemens PLM Software Example Factors Economy • (ultra) Low Interest rates • Tighter bank lending policies • On-Shoring • 90 day results focus Raw Materials • Price of Energy sources • Rare earth supplies • US Starts exporting oil Technology • Mobility • Big Data • IOT • 3D Printing Society • Crowd sourcing • Social Media • Mindfulness • Home office work Applied Technologies • Drone Applications • Greening of everything • Reuse of Rocket Boosters • New materials – Composites, Recyclables • Industry 4.0 Environment / Nature • Global warming • Changing weather patterns – • draught, floods, hurricanes, • Quakes, Tsunamis, .. Government • No Federal budget for 3 years • Grid Locked Washington • Fluctuating Global Economies Long Product Development Cycle • 2 to 4 Year development cycle are over • Minimum viable product • Hackathon
  7. 7. #PLMCONX | www.siemensplmconnection.org Response Approaches • Treat this situation as any other event (do the same thing as before) • React feverishly • Be prepared, execute the plan and leapfrog
  8. 8. #PLMCONX | www.siemensplmconnection.org Doing the same thing Source: MAPI
  9. 9. #PLMCONX | www.siemensplmconnection.org Company Cycle Monitoring Source: MAPI
  10. 10. Unrestricted © Siemens AG 2015 2015_AprPage 10 Siemens PLM Software The New Normal World-wide Managing Partner McKinsey Quarterly
  11. 11. Unrestricted © Siemens AG 2015 2015_AprPage 11 Siemens PLM Software Solution Approaches Business 1. Know your customer • Business, Products, their customers, their key variables…create a look for constant expectation check in, their measures for success, their pain points 2. Look at newer solutions • Selling products vs. offer Hours of Operation at SLA (Service Level), Turnkey solution (Assess needs, build/support/maintain necessary solutions) 3. Set all metrics based on TCO pricing/metrics (Internal and external) have meaningful metrics that take both external and internal voice into consideration 4. Identify Mega trends & their Interactions Example
  12. 12. Unrestricted © Siemens AG 2015 2015_AprPage 12 Siemens PLM Software Solution approaches continued …. Organizational 1. Leverage Changing environment vs. Adapt / surviving the change • Build flexibility to organize/re-organize rapidly • Reward systems structure o Set personnel expectation - that they are self starting and constantly building a diverse skill set o Encourage managed risk 2. Extend the eco system – partners for Technologies, deployment, … 3. Laser focus on competencies and business objectives • don't forget your customer view of you Technical 1. Digitalization of the process 2. Adapt evolving value-add technologies quickly - mobility, big data, IOT, ..... 3. Learn from the bottom of the pyramid (developing countries experiences) emulate 'best practices, “don't blindly plug and play”. OrgnExample DigtlznExample
  13. 13. Unrestricted © Siemens AG 2015 2015_MayPage 13 Siemens PLM Software Energy Summary • Business o Connecting, understanding, integrating & Digitalization of the Supply chain o Delivering “Functions” demanded by the end user vs. the product/subsystem o Establishing metrics – Internal and external leveraging the digitalized flow • Organizational o Connected / Digitalized operational environment o Protecting the IP … • Technical o Incorporate evolving technologies into product o Leverage new applications  Ex: Big Data, Mobility, Analytics to predict/address evolving situations
  14. 14. Unrestricted © Siemens AG 2015 2015_AprPage 14 Siemens PLM Software Readiness Assessment/Audit 1. Describe your Top 3 (potential) business Disruptions 2. Explain how your organization will react to each of them? 3. Describe the ideal response to each of the disruption? 4. What is preventing you from implementing them? 5. How would you quantify the impact of the new environment 6. When was the last Organizational readiness audit performed? 7. How do you integrate your acquisitions…
  15. 15. Unrestricted © Siemens AG 2015 2015_AprPage 15 Siemens PLM Software Where does your company stand in achieving the Next Level Are you ready for the New Normal Source: P Bachman, SPLM New normal readiness scorecard
  16. 16. Unrestricted © Siemens AG 2015 2015_AprPage 16 Siemens PLM Software Maturity Level Characteristics
  17. 17. Unrestricted © Siemens AG 2015 2015_AprPage 17 Siemens PLM Software Questions? A&DExample
  18. 18. Unrestricted © Siemens AG 2015 2015_AprPage 18 Siemens PLM Software Thank You! Don’t Forget! Fill out session Survey via the PLM World Mobile Event App. >Go to the session in the App >Click Take Survey at the bottom #PLMCONX | www.siemensplmconnection.org
  19. 19. Energy Industry Example
  20. 20. Unrestricted © Siemens AG 2015 2015_MayPage 20 Siemens PLM Software Innovations have led to the exploitation of new and more recoverable reservoirs Mega-trends in oil & gas industry Only 60 Years Known Supply 100+ Years Supply and Growing Implications Supply outpaced demand Significant downward price pressure US onshore market the industry’s new ‘swing’ producer Easy oil era has ended Companies evaluating their asset and technology portfolio; M&A ramping up 2000 2015
  21. 21. The global Energy System Mtoe = Million tonnes of oil equivalent Source: IEA World Energy Outlook Inputs 12.5 Btoe Useful: 8.7 Btoe Efficiency: 69%
  22. 22. Unrestricted © Siemens AG 2015 2015_MayPage 22 Siemens PLM Software Example 1. Equipment efficiencies improvement program • Monitoring & gathering equipment performance data • Extracting “appropriate data” & taking actions 2. “Rotation/Compression Power” by the hour? • “On-site” Power as a service (Equipment, Maintenance, Support, ..) • Service level agreement (SLA) based 3. Drill bit repair/Replacement • Monitoring of tool performance and status • Remote/On-Site repair services • Use of Remote machining/3D Printing techniques Return
  23. 23. #PLMCONX | www.siemensplmconnection.org Organizational Changes – Evolution over time Tech. Provider Regulatory Agencies Customer Company Supplier R&D Functional teams Business IPT • Pgm Mgmt. • Mech. Eng. • Elect. Eng. • Software • Procurement Prod Dev Pgm Mgmt. Mech. Eng Elec. Eng Procur ement Return
  24. 24. #PLMCONX | www.siemensplmconnection.org PUMA Project (Pressure Ulcer Measurement & Animation) • Solution for Pressure Ulcers (Bedsores) • Sensors based detection, phone controlled • Impact: Over 15Billion Euros ($18B+) • Partners • QIMOVA – Holland – Coordinator • BerkelBile – Netherland • SensigTex – Spain • Institute for Innovation Research – Estonia • CENTEXBELL - Belgian Centre for Research Textile • Natl. Paraplegics Hospital – Spain – Patients • Fundosa Accessibility ILUNION Source: Puma.ibv.org
  25. 25. Unrestricted © Siemens AG 2015 2015_MayPage 25 Siemens PLM Software Mechanical Measurements • Techniques for desired measurements Source: Smart Sensors by Randy Franks & Machine Design Return
  26. 26. Unrestricted © Siemens AG 2015 2015_MayPage 26 Siemens PLM Software Key capital project trends over the last 15 year Projects have regularly exceed budgets and deadlines Implications Completion costs 59% higher than initial estimates (incremental US$500b) Loss of shareholder confidence and an increase in cost of capital Projects’ net asset values (NAVs) reduced between 12% and 65% Loss of revenue due to missed production dates Source: EY research and analysis 2000 2015+28% 50%  Upstream  78%
  27. 27. Unrestricted © Siemens AG 2015 2015_MayPage 27 Siemens PLM Software Total Installed cost Equipment vs Procurement
  28. 28. Unrestricted © Siemens AG 2015 2015_MayPage 28 Siemens PLM Software Lowering Total Cost of Ownership with Product Lifecycle Management PLM as a IT Strategic Platform in the Energy & Utilities Industry Owners & Operators How do I operate, evaluate and modernize my assets to leverage them beyond their designed life? Construction & Maintenance How do I handle the increase in product complexity and regulatory standards? Equipment & Services How do I make products and services more efficient and reliable? Engineering & Manufacturing (CAD, CAE, CAM, Eng Process Mgmt, Digital Mfg) Project Execution (Enterprise Data Mgmt, Plant Visualization, Change & Config Mgmt, Scheduling, Risk Mgmt, Workflow, Mobility) Operations & Maintenance (Data & Doc Mgmt, Workflow, Service Planning & Execution) Product Lifecycle Management
  29. 29. Unrestricted © Siemens AG 2015 2015_MayPage 29 Siemens PLM Software Energy Project Lifecycle And where we should be going to market 2014/2015 Engineer Procure Construct Owner Operator Equipment Manufacturer / Supplier Owner Operator Design Simulate Manufacture Service Plant Design Award FEED Permitting Bidding Decom- mission Construct Commission Operate Maintain Engineer Procure Construct * Teamcenter components for equipment suppliers, including: MRO, Polarion, ElectricCloud * Change Management Asset Configuration PLM Open Collaboration PLM Enterprise Data Management for Capital Project Management DEAP/PDI
  30. 30. Unrestricted © Siemens AG 2015 2015_MayPage 30 Siemens PLM Software The Digitalization Challenge Manage, Find, Share Data Managed as a Unit Tag/Part Number CAD Model / BOM Customer Specification Vendor Data Datasheet Analysis Drawing Construction Plan Return
  31. 31. A&D Example
  32. 32. A&D • Minimize Bells and whistles • TCO • Lean • Suppliers • Stay or get_out • Partner/collaborate • …. 30th March 2015
  33. 33. Factors impacting business Airplane Airline • Traffic/Demographics • Total cost of ownership - ($/Passenger Mile) • Price of Fuel, Operating efficiency Airframe Mfr. • Product Development costs • Prod./Performance improvement Pgm. • New Technologies, New tools Subsystem supplier • Performance targets • Cost targets • Incorporate New Technologies & Digitalization Regulatory Agencies • Certification/Compliance costs Space Space Agency • Budget decisions • Total cost of ownership • Cost of operation ($/Pound Launched) Spaceship Builder • Overall ship Development cost • Improvement/Innovation Programs Supplier • Performance targets • Cost targets • Digitalization Return

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