ES - The effect of ERP on Product Development Lifecycle? INDEX: - What is the Product Development Lifecycle? - Data in Product Development - Effect of ERP in Product Development - Industry Challenges in using ERP - ERP Benefits

1. Enterprise Systems
Matic Golob
and others
What is the effect of ERP
on Product Development
Lifecycle?
1

2. Index
• What is the Product Development Lifecycle?
• Data in Product Development
• Effect of ERP in Product Development
• Industry Challenges in using ERP
• ERP Benefits
2

3. What is the Product
Development
Lifecycle?
Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Planning Concept System-Level Detail Design Testing and Production
Development Design Refinement Ramp-Up
Performance Goals:
Quality, Cost, Delivery
3

4. Data in Product
Development
Material
properties
Competitor
Cost of
projects and
•Not all of this data is known at lead time
Materials
the same time (e.g. at the start
of the project)
There is a
lot of data in
•Data is dynamic (it matures PD that we
through cross-functional Market must
Research and manage Form and
business processes) Customer Function
Requirements
•Good decision-making relies
on sharing cross-functional
data What are our
resources and Existing
capabilities knowledge in
•Better decisions = better (Physical)
the company
quality products, faster, and
more cost effective
4

5. Effect of ERP in Product
Development?
Answer:
1) Support better (reliable) decision making throughout the
maturing product development process
2) Support efficient sharing of product data between
processes (integrated business process across enterprise)
3) It can be a regulatory requirement to record produce
development decisions
5

6. 1) Better Decision Designers:
Function,
Making Form etc
Manufacturing
Materials,
Etc… Tooling,
Supply
• Product Development is an Chains
information process;
• Functional Business Process
create info that can describe a Silos!!
product and how to produce it
Service Cost
• Cross Functional Decisions occur Information Engineers
throughout the stages of product
development
Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Planning Concept System-Level Detail Design Testing and Production
Development Design Refinement Ramp-Up
6

7. 1) Better Decision Designers:
Function,
Making Form etc
Manufacturing
Materials,
Etc… Tooling,
Supply
Integrated
• Product Development is an Product
Chains
information process; Development
Decisions
• Functional Business Process
create info that can describe a
product and how to produce it
Service Cost
• Cross Functional Decisions occur Information Engineers
throughout the stages of product
development
Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Planning Concept System-Level Detail Design Testing and Production
Development Design Refinement Ramp-Up
7

8. 1) Better Decision
Making
Cross Functional
Handshakes!
• ERP systems support cross-functional decision-making at every stage of the lifecycle
Eg. PLM Teamcentre and CAD systems
• There are many functional business processes that need to be managed
• Why have functions in product development? They hold the necessary depth of information
and knowledge:
Eg. Designers for form and function
Manufacturers for production knowledge etc
Marketing and sales have knowledge of potential customer requirements and
opportunities
Service Information can reveal a lot about past design quality that could be used to
improve designs
8

9. 1) Better Decision
Making
Working in silos results in poor quality design
9

10. 1) Better Decision
Making
Contribution (Swift & Brown, 2003)
Cost committed
100%
• Better integrated decision 85% Cost incurred
making EARLY in the
process avoids COSTLY
60% Knowledge
and TIME CONSUMING
changes late in the
development lifecycle
Ease of change
• For Example:
• Design for Manufacture
N
early in projects! e
Conceptual/ Detail Construction System use,
preliminary design and and/or phase out and disposal
e design development production
d
10

11. 2) Efficient Sharing of
Product Data • Using CAD/CAM to create the information that
defines the product and how it can be made
• Models can be shared directly and simultaneously
Analysers:
Flow, Stress etc
Data Used in Business
Designers: Processes
form and function Simultaneously
Across the Extended
Enterprise
Manufacturers:
Production Process
. MASTER DATA .
11

12. 2) Efficient Sharing of
Product Data • Therefore the Lifecycle processes become overlapping:
• This means ERP supports Concurrent Engineering
Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Planning Concept System-Level Detail Design Testing and Production
Development Design Refinement Ramp-Up
Phase 0 Phase 1
Planning Concept
Development TIME
Phase 2
System-Level
SAVED
Design
Phase 3 • Faster Introduction
Detail Design to Market
Phase 4 Phase 5 • Earlier Sales Revenue
Testing and Production • First to Market
Refinement Ramp-Up
12

13. 3) Records the Product
Development
Process If this Happens! We can find out why!
• Holding data is often a legal requirement because product developers
can be legally responsible for the products they make
• International Standards exist for documenting product development
decisions (APQP)
• Therefore necessary to know how/when/by who decisions are made
regarding product development.
• This allows businesses to demonstrate an audit trail (due diligence and
rigour)
• And it helps stop any problems happening again once found!
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14. Industry Challenges
in using ERP
The aerospace manufacturer Rolls-Royce is using PLM systems to manage product
development. It has worked to overcome challenges that many industries face:
• External supports may not create product information in the same standard format- making
sharing difficult
• You still need a strong Integrated Product Team to talk about the design information that is
being shared
• Require training to use/set up Team Centre (Productivity dip)
• Migrating massive amounts of product development data is a resource challenge
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15. ERP Benefits
Integrated Product Teams, supported by ERP
You can do global product development
Dispersed engineering teams that are strongly linked together
Better Product Development
Faster, Less Costly, Better Quality
Promotes Standardisation of data:
Eg. CAD formats
Engineers across the enterprise work to a standard business process
Keep track of project:
Keeping track of information releases and sharing with a single point of access
15

16. Effect of ERP in
Product
Development?
Answer:
1) Support better (reliable) decision making throughout the
maturing product development process
2) Support efficient sharing of product data between
processes (integrated business process across enterprise)
3) It can be a regulatory requirement to record produce
development decisions
16