PLM Impact Analysis (PIA) is a three-phased methodology for identifying defects and opportunities across a product's value chain and lifecycle. In phase one, stakeholders systematically recognize issues and their consequences. Phase two involves stakeholders analyzing and scoring the consequences. Finally, phase three identifies the most significant sources of opportunities. The PIA aims to improve communication between value chain parties and systematically gather and analyze data to identify PLM development targets based on annual savings opportunities versus costs. Benefits include eliminating waste across the lifecycle by reducing negative impacts from product information failures.

1. PIA - PLM Impact Analysis
Product Lifecycle Management (PLM) is a strategic approach which is expected to solve many problems and
streamline business by integrating efficiently people, processes, product information, and technology. PLM is claimed
to be one of the key enablers for the effective management of product development and product creation processes.
However, nowadays parties of value-chains, like company departments and functions as well as partners, suppliers
and customers are often working in their own silos. Communication and information/knowledge sharing is often
limited between these networked parties. One does not always know how decisions, product properties, production
mode or supply-chain configuration effects on the other stakeholders of the value-chain and product lifecycle. On the
other hand, there are often areas in PLM landscape which are not covered well or at all, namely e.g. new technologies,
methodologies, IT tools, business models, etc.
Impact Analysis Approach
PLM Impact Analysis1 is a methodological approach for supporting better business and PLM development target
identification. The method was created and tested in two industrial cases in heavy machinery and maritime sectors
successfully. The most remarkable benefits of the holistic method are achieved by improved communication and
discussion between value-chain parties, and the systematic way of gathering and analyzing data. The PIA is based on
FMEA – Failure Mode and Effect Analysis2 method and the basics of Lean Thinking3 principles. Lean is a famous
principle of getting rid of any waste within a production system. For instance Morgan and Liker4 have described how
lean principles were implemented in the Toyota Product Development System. Product Lifecycle Management (PLM)
is outcome of lean thinking as well5. PLM eliminates waste and maximizes efficiency across all aspects of a product’s
life, not just in its manufacture.
Figure 1. The three-phased PIA methodology
1
Simo-Pekka Leino, Juha-Pekka Anttila, Juhamatti Heikkilä, Joonas Aaltonen, and Kaj Helin, "PLM Impact Analysis
Model – PIA", L. Rivest, A. Bouras, and B. Louhichi (Eds.): PLM 2012, IFIP AICT 388, pp. 503--513. IFIP International
Federation for Information Processing (2012)
2
IEC 60812 standard
3
Womack, J.P., Jones, D., (2003), “Lean Thinking: Banish Waste and Create Wealth in Your Corporation”, The Free
Press, New York, NY
4
Morgan, J.M., Liker, J.K. The Toyota Product Development System – Integrating People, Process, and Technology.
Productivity Press, New York (2006)
5
Grieves, M. Product Lifecycle Management – Driving the Next Generation of Lean Think-ing. McGraw-Hill (2006)

2. The PIA method includes three main phases (Figure 1). In the first phase, defects and/or opportunities are recognized
systemically, as well as their consequences. During the first phase it has to be decided which parties of value-chain are
needed to participate in the second and third phases. In the following second phase, consequences are analysed and
scored by the parties and stakeholders. Finally in the last third phase, sources of the most significant opportunities are
identified. As main outcome of the PIA analysis, PLM development targets can be ranked based on comparison of
annual savings opportunities and development costs/investments.
Benefits
There is lot of business potential which can be reached by implementing PLM landscape more widely and deeply. This
requires defining needed processes, practices, information models, meta-models, system architectures and
integrations6. PIA methodology includes all these focus areas.
When the corrective actions and PLM development projects are planned, it is naturally essential to recognize what are
the actual root causes of the problems or opportunities. Root of a problem often is in different position of the value-
chain than the victim of the problme7. For instance, engineering designers cause many problems because they are one
of the major product data producers of the product lifecycle. On the other hand, consequences of those failures are
accumulating during the lifecycle causing great problems and waste e.g. in supply and service. Anyway, guilty hunting
is not the purpose, but understanding the holistic value-chain implication. This enables to optimize the wholeness of
PLM and planning the right corrective actions.
One of the main principles of Lean thinking is the elimination of waste. Using PIA method elimination of waste can be
seen as eliminating or reducing negative impacts within value-chain and product lifecycle. Continuous improvement,
including the idea of small steps every day, is a part of Lean thinking as well as the idea of cost reduction. PIA model
includes also the idea of continuous improvement and process development. One target of the development work
done after the PIA analysis is cost re-duction by reducing negative impacts of product information failures. With the
PIA tool estimated annual data failure cost can be compared to development and failure removal cost. This serves as
fine basis for ROI analysis and decision making support for the company directors and PLM sponsors.
Future
In future PIA methodology will be a premise for creation framework and IT platform expanded towards global value-
chain networks including factory level economic and risk assessment, inter-active model-based decision-making for
business management, and co-evolution of products and services. The methodology and platform will take a system
thinking and system dynamics approach aiming towards real-time IT support toolbox.
Contact
simo-pekka.leino@vtt.fi, +358407377184
juha-pekka.anttila@vtt.fi, +358 40 825 4229
6
Srinivasan, V. An integration framework for product lifecycle management. Computer-Aided Design 43, 464–478
(2011)
7
Olesen, J. Concurrent development in manufacturing – based on dispositional mechanisms. Ph.D. thesis, Institute for
Engineering Design, The Technical University of Denmark, 1992