One of the secrets of successful technology companies is the capability and capacity of their product management function. Awareness for product management need arises from signs such as disconnect between the strategic vision of the CEO and day-to-day product development activities, lack of communication and coordination between engineering, marketing, sales, finance and legal groups. missed launch dates, or lost opportunities in competitive situations with large accounts. This Technology Multipliers webinar provides a comprehensive overview of product lifecycle management concepts, process, and keys to success for technology companies.

1. Kerim Tumay
Managing Director
September 2011
© 2011 Technology Multipliers, LLC

2. Outline
• Why is Product Development process a
challenge?
PLM Concept • What is PLM?
• Benefits & Business value
• Assessment and Planning
PLM Process • Complete Implementation
• Measurement & Process Improvement
PLM Technologies • Software
• Pre-implementation
Success Factors • Implementation
• Post-implementation
© 2011 Technology Multipliers, LLC

3. PLM Concept PLM Process PLM Success Factors
Technologies
Why is Product Development process a challenge?
 Lack of formal requirements management
 Inadequate portfolio management resulting in premature
launch or retirement
 Unresolved design, engineering, manufacturing issues
 Lack of rapid prototyping and virtual product development
 Inability to facilitate real-time collaboration from product
concept to retirement
 Complexity of change management
 Poor supply chain visibility
© 2011 Technology Multipliers, LLC

4. PLM Concept PLM Process PLM Success Factors
Technologies
What is PLM?
PLM integrates the product information and processes for
ideation, design, engineering, manufacturing, and maintenance
through the life cycle of products.
© 2011 Technology Multipliers, LLC

5. PLM Concept PLM Process PLM Success Factors
Technologies
Benefits & Business value
© 2011 Technology Multipliers, LLC

6. PLM Concept PLM Process PLM Success Factors
Technologies
PLM Benefits
Benefit Improvement
Reduce Time to Market ~ 30%
Reduce Product Development Cost ~ 20%
Reduce Product Cost ~ 20%
Reduce Cost of Quality ~ 20%
Reduce Change Management Cost ~40%
Source: VDI 2219 – Information technology in product development
© 2011 Technology Multipliers, LLC

7. PLM Concept PLM Process PLM Success Factors
Technologies
Assessment and Planning
Review the
company vision,
business strategy
and goals
Evaluate PLM
software solutions Document your
and solution product lifecycle
providers
Assess the
List business effectiveness of your
requirements and product
define PLM strategy development
processes
Define a list Build a model of
operational metrics your should-be
and targets for product lifecycle
improvement process
© 2011 Technology Multipliers, LLC

8. PLM Concept PLM Process PLM Success Factors
Technologies
Complete Implementation
Product Data
Management
Manufacturing Program,
and Supply Project
Planning Management
Virtual
Product
Development
and
Collaborative
Design
© 2011 Technology Multipliers, LLC

9. PLM Concept PLM Process PLM Success Factors
Technologies
Product Data Management
Bill of Materials
(BOM)
Management
Security Engineering
Management Change Control
Configuration
Classification
management
© 2011 Technology Multipliers, LLC

10. PLM Concept PLM Process PLM Success Factors
Technologies
Product/ Program/ Project Management
Requirements
Management
Project
Process
Portfolio
Management
Management
Regulatory and
Search Environmental
Compliance
© 2011 Technology Multipliers, LLC

11. PLM Concept PLM Process PLM Success Factors
Technologies
Virtual Product Development and Collaborative Design
Mechatronics
process
management
Knowledge
Management Visualization
Software Concurrent
Configuration design and
Management test
Change
management
© 2011 Technology Multipliers, LLC

12. PLM Concept PLM Process PLM Success Factors
Technologies
Manufacturing and Supply Planning
Document and
part
dispositioning
Part
Plant
manufacturing
optimization
planning
Process Assembly
planning planning
© 2011 Technology Multipliers, LLC

13. PLM Concept PLM Process PLM Success Factors
Technologies
Measurement & Process Improvement
Business Value Drivers Performance Indicator
Increased Revenue Faster time to market Percent gross margin
Increased Productivity Reduced design/ engineering cost Time savings * hourly rate
Reduced design validation cost Time savings * hourly rate
Reduced prototyping cost Time savings * hourly rate
Synchronous development/test Time savings * hourly rate
Reduced Cycle Time Reduced time to search product info Time savings * hourly rate
Reduced time for ECO Time savings * hourly rate
Reduced Development Cost Manual BOM creation/mgt Time savings * hourly rate
Number of Engineering Change Orders Time savings * hourly rate
Manual Requirements mgt Time savings * hourly rate
© 2011 Technology Multipliers, LLC

14. PLM Concept PLM Process PLM Success Factors
Technologies
PLM Software Models
Less expensive
Traditional Model Hosted Solutions SaaS Solutions
More Control
© 2011 Technology Multipliers, LLC

15. PLM Concept PLM Process PLM Success Factors
Technologies
Costs and Benefits of PLM
© 2011 Technology Multipliers, LLC

16. PLM Concept PLM Process PLM Success Factors
Technologies
Cost of PLM
Data Migration Support &
5% Mentoring
5%
Training
5%
Software
30%
Implementation
25%
Maintenance
6%
Hardware
Process
8%
Optimization Education
8% 8%
Source: PLM Technology Guide
© 2011 Technology Multipliers, LLC

17. PLM Concept PLM Process PLM Success Factors
Technologies
Keys to Success with PLM
Understand the business
strategy
Planning
&
Assessment
Develop as-is and
Evaluate and select your should-be process
PLM software models of your product
lifecycle process
© 2011 Technology Multipliers, LLC

18. PLM Concept PLM Process PLM Success Factors
Technologies
Keys to Success with PLM
Start with a
tangible
business
problem
Designate PLM
Restrict access
advocate,
to legacy
process owners
systems
and managers
Implementation
Perform
customizations
Use common
and integrations templates
Conduct
“lessons Train the super
learned” user(s)
sessions
© 2011 Technology Multipliers, LLC

19. PLM Concept PLM Process PLM Success Factors
Technologies
Keys to Success with PLM
Track actual
Compare your PLM
performance indicators
using project/process Post- success metrics with
industry best practices
management tools Implementation
© 2011 Technology Multipliers, LLC

20. Download E-books
For more information, go to www.technologymultipliers.com
© 2011 Technology Multipliers, LLC