May 7, 2001
2PDM

www.johnstark.com


Volume 3
Number 19




Page 1
- Welcome
Page 2
- Update
Page 3
- News
Page 4
- Brief lines

* Welcome *
Welcome to this issue of 2PDM, an e-zine distributed every two weeks on a free subscription basis. The following article, 'Product Line Rationalization: A Prerequisite to Mass Customization', was written by Dick Bourke of Bourke Consulting Associates.

* Product Line Rationalization: A Prerequisite to Mass Customization*
One of the common perceptions in the "To-Order" manufacturing sector is that implementing a Product Configurator is a prerequisite to Mass Customization. As a popular commercial says: "Not exactly." One of the major stumbling blocks to effectively using a Product Configurator may be the condition of the product lines. These typical conditions are: bloated product offerings - illogical, a mish-mash of features and options, lacking modular design, unprofitable - to cite just a few.

A company in the "To-Order" sector, therefore, should seriously evaluate a program for Product Line Rationalization to cleanup the product offerings - before implementing a Product Configurator. Overall, "simplify" is the essence of a definition for PLR. What a company should be trying to accomplish is: "Eliminate or outsource products that are prone to problems, have low sales, have excessive overhead demands, have limited future potential, are not appreciated by customers, or may actually be losing money." (1)

There is no known industry standard for conducting a PLR program, although most companies perform some elements of PLR when implementing Product Configurators. To be successful, the PLR process needs to be well defined, not a random, hit-or-miss approach. A comprehensive approach to accomplish the objectives encompasses ten steps, which are:
  1. Define/Segment Product Lines - as necessary, redefine or clarify current definitions, to give a clearer perception of the possibilities for PLR.
  2. Prepare Configuration Visualization - help the team analysis by preparing charts, structures, or even product mockups.
  3. Scrutinize Product Proliferation - dig in and identify similar features and options.
  4. Develop Product Volume History - get the facts in terms of quantities and dollars.
  5. Analyze Product Margins - use the Enterprise Planning Resource system to determine whether margins are acceptable.
  6. Investigate Market Requirements - check the competition for specifications, pricing, and delivery to determine action steps.
  7. Determine Manufacturing Strategy - reassess with regards to product lifecycle status.
  8. Identify Product Elimination(s) - or possibly outsourcing.
  9. Probe Product Cost Reduction - some effort to keep existing lines may be profitable yet.
  10. Determine Product Pricing Adjustments - down or up if the product is in the later stages of life and spares are needed.
There are two ways to put PLR in perspective, asking and answering "What Should It Be?" and "What Should It Not Be?"

What Should It Be?
  • Customer focused - concentration on their needs instead of just an internal, manufacturing-oriented mindset.
  • Fact based - essentially a prerequisite to avoid the unsubstantiated, emotional mind-set sometimes evidenced by the classic argument of Sales and Marketing - "But we need it . ."
  • Strategic not tactical - consideration of the core competencies that differentiate the company.
  • Team based - assuring a balanced evaluation of the facts presented during the process.
What Should It Not Be?
  • Just product elimination - that's too myopic, though admittedly some elimination may be highly likely. Better results will be achieved by taking a broader perspective; for instance, improvements in service and warranty procedures.
  • Emotion based - see above!
Throwing the existing product lines "as-is" into a Product Configurator will not solve the conditions mentioned above. Applying a well-defined process for Product Line Rationalization prior to using a Product Configurator, however, will be a major step toward a more competitive posture in the "To-Order" industry sector. For those companies already using Product Configurators, but with results "somewhat less than satisfactory," stepping back to a rationalization program may be a means to eventually take several steps forward.

Cited Reference
(1) Anderson, Dr. David M., and B. Joseph Pine II, Agile Product Development for Mass Customization, Niche Markets, JIT, Build-to-Order, and Flexible Manufacturing. New York:McGraw-Hill, 1997, 293 pages. (800/634-3966)

Richard W. Bourke provides strategic and operational consulting to manufacturing companies and software firms. He is also the CPC editor for Midrange Enterprise magazine. Contact through www.bourkeconsulting.com.

Acknowledgement. This article was adapted from material originally published by Midrange Enterprise, used with permission.

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Page 2

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Page 3
News

* Corporate *
Axiom Systems announced the creation of 3D Innovations, Inc. 3D Innovations will focus on providing 3D technology to enterprises as a distributor of SolidWorks 2001 and a variety of SolidWorks solutions partner add-ons. Axiom Systems will continue to focus on PDM and other enterprise level services.

Dassault Systemes announced that it signed a definitive agreement with MSC.Software under which, as part of the acquisition of AES by MSC.Software, Dassault will sell its 19% equity interest in AES in a stock transaction. By virtue of Dassault Systemes' equity ownership in AES, Dassault Systemes will have approximately a 9% equity interest in MSC.Software after closing of the transaction.

3D Systems Corp. announced the commencement of its tender offer for all the outstanding shares of common stock of DTM Corporation for $5.80 per share in cash. The tender offer was commenced pursuant to a merger agreement entered into between 3D Systems and DTM on April 2, 2001.

* People *
Xerox Engineering Systems (XES) announced that John Duerden was appointed as the new CEO of XES succeeding Agnes Lewis who is leaving the company to pursue outside interests.

* Financial *
ANSYS, Inc. announced first quarter 2001 results. Excluding the impact of a modification in annual lease revenue recognition and acquisition-related amortization, total adjusted revenue rose 22% to $21.3 million from $17.4 million in the first quarter of 2000.

According to figures released by Cyco Software, its worldwide EDM business grew over 30% in this year's first quarter. This growth is attributed to the widespread adoption of AutoManager Meridian as a way for companies to operate more effectively in increasingly competitive global markets.

Hummingbird Ltd. reported its unaudited consolidated results for the second quarter ended March 31, 2001. Sales were US$ 50.6 million compared with US$ 57.1 million for the same quarter of 2000.

Innoveda, Inc. reported financial results for the first quarter ended March 31, 2001. Revenue for the quarter grew 89 percent to $27.3 million from $14.4 million for the comparable 2000 quarter.

Intergraph Corporation reported operating results for its first quarter ended March 31, 2001. For the quarter, the Company reported net income of $5 million on revenues of $144 million.

MatrixOne, Inc. announced results for its third quarter ended March 31, 2001. For the third quarter ended March 31, 2001, total revenues increased 92% to $38.1 million, compared to $19.8 million in the same period last year.

Mechanical Dynamics, Inc. reported revenue for the first quarter ended March 31, 2001 of $13.8 million, versus $10.7 million for the corresponding period in 2000.

Moldflow Corporation reported results for its third fiscal quarter ended March 31, 2001. Revenue for the third quarter of fiscal 2001 was $11.1 million, up 57% over the corresponding quarter of fiscal 2000.

Open Text Corporation announced results for its third quarter of fiscal 2001 ending March 31, 2001. Total revenues for the quarter increased to $39.3 million, up from $28.5 million, an increase of 38% from the prior year.

PlanetCAD Inc. announced financial results for its first fiscal quarter ended March 31, 2001. First quarter sales increased 214% to $480,000 versus sales of $153,000 in the first quarter of last year.

RAND Worldwide reported revenue for the first quarter ended March 31, 2001 of $90.8 million, compared to revenue of $101.3 million for the same period a year ago.

Selectica announced results for the fourth quarter and full fiscal year ending March 31, 2001. For the quarter ended March 31, 2001, the company reported revenues of $14.4 million, representing an increase of 103% over revenue of $7.1 million in the same quarter last year.

Tecnomatix Technologies, Ltd. announced its financial results for the first quarter ended March 31, 2001. Revenues for the first quarter of 2001 were $22.2 million compared to $23.8 million for the same period last year.

Workgroup Technology Corporation (WTC) announced its financial results for the fourth quarter and fiscal year ended March 31, 2001. For the fourth quarter of fiscal 2001, WTC reported revenue of $2,011,000 compared with $1,797,000 in the fourth quarter of fiscal 2000.

3D Systems Corp. announced record revenue of $27.9 million for the first quarter 2001. This compares with revenue of $23.0 million for the first quarter in the previous year, a 21.3% increase.

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* Implementation *
Autodesk, Inc. announced that A-dec, one of the largest dental equipment manufacturers in the world, standardized on Autodesk Inventor software for the design and manufacture of its products. A-dec purchased 30 licenses.

Cadence Design Systems, Inc. announced it has concluded a Corporate Services Agreement to deliver a Component Supplier Management service for Hewlett-Packard Company's internal use.

Cimage NovaSoft announced that BioWhittaker, a subsidiary of Cambrex Corporation, will be implementing NovaManage, its integrated document and workflow management system. NovaManage will enable BioWhittaker to automate all of their work processes, as well as the information associated with those processes.

Documentum announced that Merck & Co., Inc., a pharmaceutical products and services company, has signed an enterprise licensing agreement for the entire Documentum 4i platform suite, including Web content management components. Merck now has the ability to roll out these content management products to its employees worldwide.

Documentum announced that iBanx, a provider of B2B and information management solutions for industrial process companies, has purchased a subscription license for Documentum 4i eBusiness Platform under Documentum's ASPire program. The license will enable iBanx to sell, on a usage basis, access to an application based on Documentum 4i eBusiness Platform that facilitates collaborative content management between B2B process industry partners, and that streamlines delivery of key technical content that industrial workers need to reduce risk and increase efficiency in plant operations.

Dassault Systemes and Advanced Enterprise Solutions (AES) announced that the Floyd Rose Guitar Company released a revolutionary new electric guitar with over 16 patented advancements, designed in CATIA solutions.

Hummingbird Ltd. announced that Conoco Limited has purchased Hummingbird EIP (Enterprise Information Portal). It will be integrated with SAP at Conoco's Humber refinery in North Lincolnshire, UK, to manage engineering data flow and refinery plant control, with plans to extend the solution throughout Europe in 2001.

MatrixOne, Inc. announced the signing of a contract with Hyperchip. MatrixOne's eMatrix is being used by Hyperchip in the development of the world's fastest router.

PTC announced that ADC has selected PTC's Pro/ENGINEER to design, develop and assemble its new Multi-Media Outlet Box.

PTC announced that THALES Communications (Colombes, France) will standardize on PTC's Windchill.

SDRC announced that ALSTOM Power, part of Alstom Corporation, has placed orders valued at $3.2 million for Metaphase and Accelis e-business automation software and services. ALSTOM Power intends to execute enterprise architecture integration projects based on Metaphase and Accelis. In addition, ALSTOM will use Accelis to build a spare part ordering portal accessing data from their Metaphase and SAP systems.

SolidWorks Corporation announced that Comau has selected SolidWorks software as a new design tool in its powertrain division. Comau has installed 50 seats of SolidWorks and will implement at least 70 additional seats before the end of 2002.

UGS announced that Talley Defense Systems (Mesa, AZ) has selected Solid Edge as its MCAD software package for its sophisticated aerospace systems and propulsion devices. Talley Defense Systems purchased 12 licenses of Solid Edge and will optimize its new designs with integrated finite element analysis software from ANSYS Inc.

UGS announced a $1 million contract to supply Kolbus (Rahden, Germany) - a global developer, manufacturer and distributor of bookbinding machines - with Unigraphics CAD/CAM software.

UGS announced a $600,000 contract to supply The Tegema Group - an international project organization addressing product development, special purpose machines, automotive engineering, technical services and technical information - with Unigraphics CAD/CAM/CAE software.





* Developments *
Autodesk, Inc. announced the new Design Distribution Extension for its AutoCAD 2000i family of products. The Design Distribution Extension enables professionals to efficiently review and share designs by creating lightweight, secure electronic documents optimized for online exchange and full-fidelity plotting.

Cadence Design Systems, Inc. and PolarFab, a dedicated BiCMOS foundry, announced the availability of Process Design Kits to accelerate time-to-tapeout.

Dassault Systemes announced major enhancements to ENOVIA Portal Solutions Version 5 Release 6 (V5R6) and ENOVIAVPM Version 1 Release 4 (V1R4), and the introduction of the next generation of ENOVIA Life Cycle Applications (LCA) V5R6.

FileNET Corp. announced the release of Panagon Image Services 3.6. FileNET also announced the release of Panagon Capture Professional 3.1 for Image Services and Capture Desktop 3.1 for Content Services.

FileNET Corp. announced plans to integrate its Panagon suite of eContent and eProcess management products with Microsoft's latest Digital Dashboard as part of its commitment to support Microsoft's SharePoint Portal Server.

Moldflow Corporation announced the release of EZ-Track version 1.0. Designed for monitoring all machines and equipment on the injection molding shop floor, EZ-Track integrates data acquisition hardware and state-of-the-art software analysis tools.

Océ announced the introduction of the latest version 3.0 of its Océ Engineering Exec software for enterprise-wide document archiving, printing and distribution.

Open Text announced the availability of Livelink Wireless, a wireless technology for collaborative commerce applications.

SDRC announced a new user interface for its I-DEAS software. The interface is compatible with MS Windows 2000 and Windows NT operating systems.

Selectica announced the immediate availability of Selectica Solution Advisor, an off-the-shelf application that allows organizations to quickly create flexible, easy-to-use guided selling solutions for their products and services.

STEP Tools, Inc. announced it has released Version 2.0 of ST-Repository, a STEP Database Management software product. ST-Repository was developed to help companies manage and document design-through-manufacturing processes based on the STEP (Standard for Product Data Exchange) international data format.

Tecnomatix Technologies Ltd. announced a new suite of Web-based applications as part of the eMPower solution. The new tools are eBOP-Browser, eM-Work Instructions and eM-Reports.

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* Relationships *
Agile Software Corporation announced it has partnered with webMethods, Inc. to enable customers to connect Agile's solutions with the numerous applications webMethods Integration Platform supports.

Centric Software, Inc. announced the formation of a strategic partnership with Softlab GmbH, a BMW Group company and one of Europe's leading system integrators.

Cimage NovaSoft announced the signing of BOS Corporation as a Cimage NovaSoft business partner.

Concentus Technology Corporation, a provider of Business Process Management solutions for the extended supply chain, and DRK Research and Consulting LLC, have formed a strategic partnership to offer companies an assessment-based approach to deploying supply chain management best practices and technology.

Digital Paper Corporation and Moai Technologies, Inc., a provider of strategic e-sourcing and e-commerce infrastructure solutions, announced a marketing partnership that will make Digital Paper's docQuest available to Moai's CompleteSource customers to facilitate the exchange of detailed electronic documents while using CompleteSource to do online strategic sourcing.

Green Pasture Software announced that Green Pasture Software and partners FileNET Corp. and Software Consulting Group are launching a new program called ETech Energy. On the software side, ETech Energy combines Green Pasture's Web-based document control application and FileNET's Panagon document repository.

Informative Graphics Corp. and International TechneGroup announced the incorporation of ITI's CADScript functionality into Informative Graphics' MYRIAD view and markup application.

Informative Graphics Corp. and Tech Soft America (TSA) announced a licensing agreement to include Tech Soft's HOOPS Stream Toolkit into current and future Informative Graphics' software.

MatrixOne, Inc. announced that it is integrating the WebEx interactive platform from WebEx Communications, Inc. into MatrixOne's Application Exchange Framework, enabling geographically distributed teams to share content and applications spontaneously and seamlessly with integrated audio and video through a standard browser.

MatrixOne, Inc. announced that Fujitsu Limited has agreed to become a strategic alliance partner supporting MatrixOne's eMatrix and its application suite.

Oculus Technologies Corporation announced a partnership with Korea-based Zionex. Zionex plans to use Oculus' CO and its API in conjunction with the company's T3 Series solutions to target Korean discrete manufacturing industries, particularly in consumer electronics. CO will be installed at LG Electronics, marking Oculus' entrance into the consumer electronics industries.

Oracle Corp. announced 16 new members of the Oracle Exchange Partner Initiative (OEPI). Since its launch in January 2001, the OEPI has grown to include more than 45 companies. New members include Centric Software, CoCreate Software, PTC, SDRC, Theorem Solutions and WebScope.

PartMiner Inc. and Cahners Business Information announced the integration of PartMiner's Design Center component information content technology and market making services from its Free Trade Zone into Cahners e-inSITE.net, a network site for professionals in the Electronic Original Equipment Manufacturing industry.

PROCAD GmbH announced that TEDATA (Bochum, Germany) will become a PRO*FILE distributor.

PTC, Accenture and Sun Microsystems, Inc. announced that they are working together to provide clients with comprehensive CPC solutions. This solution leverages Accenture's experience in delivering CPC implementations, PTC's Windchill software, and Sun's Network Computing Solutions and iForce solution approach.

PTC announced that 25 new partners have joined the PTC Channel Partner Program since February of this year.

Smart Solutions announced an alliance with Access Commerce, a supplier of interactive e-commerce solutions, to integrate the Access Commerce Cameleon eConfigurator application into SmarTeam's portfolio of CPC offerings to facilitate the way complex products and services are sold over the Internet.

Spatial Corp. and IMSI, developer of visual content, design and graphics software, announced their expanded OEM partnership that includes the licensing of new ACIS functionality for TurboCAD Professional.

Tecnomatix Technologies Ltd. announced a strategic partnership with Aptum, a French engineering and design firm, as well as a $400,000 initial order for its eMPower e-Manufacturing software.

UGS and The Engineering Services Group (ESG), a supplier of engineering and productivity improvement solutions announced a partnership that provides their mutual customers with a comprehensive suite of software and services to fully implement a 'virtual manufacturing' environment. The partnership combines UGS' e-Factory software solutions with ESG's full-service consulting engineers and professionals.

* Other *
Cadence Design Systems, Inc. announced that its Virtual Component Co-Design (VCC) was selected from a field of hundreds of candidates as a winner in the EDN 2000 Innovation of the Year Awards competition.

Documentum announced that Forrester Research, Inc. ranked Documentum 4i 4.2 eBusiness Platform first in its eBusiness TechRankings product testing and analysis of twelve content management vendors for the second straight month.

Icebreaker announced it joined CENSA (Collaborative Electronic Notebook Systems Association), an international industry association, focused on driving the state of the art for electronic record keeping systems and collaborative technologies.

SGI announced that, according to a new study of manufacturing product development users in such industries as automotive and aerospace, SGI is the vendor of choice for CAE applications staged on high-performance computing HPC platforms. Of the six hardware vendors cited by respondents, SGI was the leader, with 36 percent.

Spicer Corporation announced that AIIM 2001 marked the ten-year anniversary since it first unveiled Imagenation to the document and content technology marketplace. Imagenation currently has nearly 300,000 seats installed throughout the world for document scanning, viewing, markup and editing.

Page 4
Brief lines


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