July 30, 2001
2PDM

www.johnstark.com


Volume 3
Number 25




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.

* Of DPD and PLM .... and CPC*
In recent issues of 2PDM we've been looking at some relatively new acronyms and the general need for acronyms to be widely understood. We'll start this issue with some thoughts from industry-watcher Dick Bourke.

Two Definitions of Life Cycle
The various definitions of life cycle cited in the previous 2PDM - could be condensed into two:
  • Marketing Product Life Cycle (MPLC), and
  • Product Definition Management Life Cycle
The MPLC orientation should suit the marketing, sales, and ERP folks as the monitoring is primarily achieved through the information generated within the ERP system with some help from a CRM (Customer Relationship Management) system.

For the life cycle you are defining with DPD and PLM, for any individual situation, I could be comfortable with any number of variations - as long as the definition is widely accepted within the company. This is particularly important if software for DPD, PDM, ERP, or whatever is about to be evaluated.

I don't fault the software vendors and industry research firms for creating unique acronyms and definitions. Potential users would be better off formulating definitions for their specific circumstances rather than complaining about the vendor community.

Looking back at some typical circumstances, here are some do's and don'ts for them, with the most basic first:
  • Thoroughly define the product definition management life cycle from original product conception through planned obsolescence. Whatever you do, don't bury this process definition under any other. After all, whatever you call it, this process is the most fundamental process of a manufacturing company. The definition should be highlighted, not buried under a functional grouping, such as Engineering or Manufacturing, a situation that was observed recently in two hi-tech companies.
  • The financial processes of Accounts Receivable, Payables and Cost Accounting are not separate processes. They are indigenous and should be defined as part of Order Fulfillment, Procurement and the company's product definition management life cycle, respectively.
  • Include elements of ERP as part of the definition. This point is particularly true if the product has complex lot and serial traceability requirements. PDM systems don't handle the transactions necessary to create the "As-Built" and "As-Maintained" BoM status.
  • Define the entire process in terms of the various stages, e.g., concept, production, etc., and the key policies associated with each stage, e.g., engineering change analysis and approval responsibilities.
Process Improvement
Dick Bourke raises an interesting point about process definition. Our consulting work splits about 50/50 between helping companies implement product development systems and helping companies implement product development processes. In general, we find that although improving a product development process costs much less than implementing a major system such as CAD or PDM, and the benefits are often greater, few companies define their product development processes properly.

Among the main reasons we see for this are:
  • interdepartmental friction (Major business processes such as the management of product definitions run across traditional departmental boundaries. Managers of individual departments may fear that cross-functional involvement will lead to people from other departments stealing part of their empire or learning about problems they prefer to keep hidden.)
  • process redefinition is hard work (It takes less effort to purchase new systems than to redefine a process)
Since every company that develops products has a product development process, it is surprising that vendors of product development systems (e.g. CAD and PDM) that automate aspects of the product development process don't offer more effective solutions to define and improve the product development process itself.

More on Acronyms
A few issues ago, we noted that EDS mentioned the existence of an $18 billion PLM market in 2001. This week we received a Press release from PTC noting that 'The Aberdeen Group in its 2000 report titled "Beating the Competition with Collaborative Product Commerce" estimates that CPC will become a $20 billion market by 2003.

According to a Press Release from HP, 'As noted in a June 2000 study of the automotive industry, conducted by Dresdner Kleinwort Wasserstein, Inc. (formerly Wasserstein Perella Securities, Inc.), the big three automotive manufacturers alone stand to save almost $19 billion in vehicle development costs by successfully implementing collaborative product development technology.'

And, according to another Press Release from PTC, 'Collaborative Product Commerce involves collaborating on product design and life-cycle management via the Internet'.

Thanks
Many thanks to 2PDM readers who wrote to us about the PLM definition. From their comments it appears there are two main views of a PLM system:
  • PLM systems provide support and management of product and process definition information throughout the product life cycle
  • PLM systems create, support and manage product and process definition information throughout the product life cycle

* Product Development Managers * Distribute 2PDM e-zine widely. It will help make your managers and team members more aware of product development issues.


Page 2

 Web-based View-Markup from Spicer Corporation.

Web-based View-Markup from Spicer Corporation

For the following subjects, follow the links through to Amazon.com
Top 50 Computer Books Management and Leadership



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CAD case studies, CAD user stories



EDM/PDM Reference Section.
Recent additions and modifications to 'Vendors in the EDM/PDM World' include FORMTEK and Karat Software Corporation.

Recent additions and modifications to 'Conferences and Seminars in the EDM/PDM World' include WTC Exchange 2001.



Books and software in German

* Need to go to an EDM/PDM event? * To find out which events are coming up, visit our list of Conferences and Seminars in the EDM/PDM world.

Page 3
News

* Corporate *
Hummingbird Ltd. announced the acquisition of PeopleDoc Ltd., a UK-based, privately held company specializing in software used to create secure, Web-based collaborative environments in which projects can be managed across the extended enterprise.

MSC.Software Corp. announced that it has received shareholder approval for its acquisition of systems and software integrator Advanced Enterprise Solutions (AES). AES will be fully integrated within MSC.Software. The transaction value for accounting purposes is $132 million.

Ventro Corporation announced that it has signed a definitive agreement to acquire NexPrise, Inc. The combined entity will provide best-of-breed solutions for Internet-based collaborative commerce.

3D Systems Corp. and DTM Corporation announced that they have agreed to further extend the tender offer for all the outstanding shares of common stock of DTM until midnight Eastern daylight time on Tuesday, August 14, 2001.

* Financial *
ANSYS, Inc. announced second quarter 2001 results including a 32% increase in total adjusted revenue to $21.4 million from $16.3 million in the second quarter of 2000.

Ariba, Inc. announced results for the fiscal third quarter ended June 30, 2001. Revenues for the third quarter of fiscal 2001 were $85.3 million, up 6 percent from the same period last year.

Cadence Design Systems, Inc. announced second quarter revenues of $348 million. Product revenue grew 35 percent to $190 million over the comparable quarter in 2000, total revenue grew 16 percent.

Dassault Systemes reported financial results for the second quarter and six months ended June 30, 2001. Total revenue increased 21% to 176.9 million Euro in the second quarter of 2001, up from 145.8 Euro million in the 2000 second quarter.

Documentum, Inc. announced financial results for the second quarter ended June 30, 2001. Revenue for the second quarter of 2001 was $45.6 million, a 2 percent increase over revenue of $44.7 million for the same period last year.

FileNET Corporation announced financial results for its second quarter ended June 30, 2001. The Company reported revenues of $82.2 million, compared to revenues of $95.1 million reported in the same quarter of 2000.

Hummingbird Ltd. reported its unaudited consolidated results for the quarter and nine months ended June 30, 2001. Sales for the quarter ended June 30, 2001 were $48.2 million, representing a decrease of 20% compared to the third quarter of the previous year.

Innoveda, Inc. reported financial results for the second quarter ended June 30, 2001. Revenue for the quarter was $22.1 million compared with $21.6 million for the second quarter of 2000.

i2 Technologies, Inc. announced its results for the second quarter of 2001. Total revenues were $241 million, compared to total revenues of $243 million in the same period a year ago.

Mechanical Dynamics, Inc. reported revenue for the second quarter ended June 30, 2001 of $14.2 million, versus $11.1 million for the corresponding period in 2000.

Mentor Graphics Corporation announced revenues of $149 million for the three months ended June 30, 2001 compared to $138 million for the same period a year ago.

MSC.Software Corp. announced financial results for the second quarter ended June 30, 2001. Revenues were $48.7 million, an increase of 12% over last year's second quarter.

PTC reported revenue totaling $229.1 million for the third quarter ended June 30, 2001, up from $227.3 million for the same period last year.

Rand Worldwide announced revenue for the second quarter ended June 30, 2001 was $92.9 million, compared to revenue of $90.8 million for the previous quarter and $102.3 million for the second quarter of last year.

SAP AG announced that in the second quarter of 2001, revenues rose 24% over the same period last year to 1.85 billion Euro.

SDRC announced that revenues for the June quarter totaled $121.1 million, up 3% compared to $118.1 million last year. Total Metaphase revenue of $47.1 million was up 22%.

Selectica, Inc. reported pro-forma revenues of $14.5 million for the first quarter of the fiscal year ending March 31, 2002, representing an increase of approximately 34% over revenues of $10.8 million in the same quarter a year ago.

SGI announced results for its fourth fiscal quarter which ended June 30, 2001. Revenue for the fourth quarter was $432 million. On a proforma basis, excluding divested businesses, this represents a 16% decrease from the same period a year ago.

Sun Microsystems, Inc. reported annual and fourth quarter results for fiscal year 2001, which ended June 30, 2001. Revenues for the fourth quarter of fiscal 2001 were $4.00 billion, compared with $5.02 billion in the fourth quarter of the prior fiscal year. For fiscal year 2001, Sun reported revenues of $18.25 billion, up from last year's revenues of $15.72 billion.

Tecnomatix Technologies, Ltd. announced its financial results for the second quarter ended June 30, 2001. For the second quarter 2001, the Company is reporting revenues of $22.4 million. This compares to first quarter 2001 results of $22.2 million in revenue.

UGS announced financial results for the second quarter ended June 30, 2001. For the first six months of 2001, total revenue was $279.1 million, an increase of 12% over the $249.2 million for the first six months of 2000.

Workgroup Technology Corporation (WTC) announced its financial results for the first quarter of fiscal 2002 ending June 30, 2001. For the first quarter of fiscal 2002, WTC reported revenue of $1,761,000 compared with $1,764,000 in the first quarter of fiscal 2001.

3D Systems Corp. announced revenue of $25.0 million for the second quarter 2001. This compares with revenue of $25.4 million for the second quarter in the previous year, a 1.5% decrease.

* People *
Alias|Wavefront announced the appointment of Fritz Kuederli to the post of General Manager, EMEA (Europe, Middle East and Africa regions) based at the Alias|Wavefront Munich office.

Altris Software announced that Carl Mostert, the Chief Operating Officer of the eBusiness Solutions Group of Spescom Ltd., has been appointed interim CEO of Altris Software.

Ariba, Inc. announced that its Board of Directors has appointed Chairman Keith Krach as the Company's interim chief executive officer pending the selection of a new CEO to replace Larry Mueller.

 Autovue - from Cimmetry Systems, Inc.

Download AutoVue from Cimmetry Systems

Documentum announced that Dave De Walt has been promoted to chief executive officer (CEO). De Walt assumes the CEO position from Jeffrey A. Miller, Documentum's CEO for the past eight years, who will remain active as chairman of the board, focusing on business strategy and leadership development.

i2 Technologies, Inc. announced the departure of Reagan Lancaster, formerly the president of Worldwide Field Operations, who will be leaving the company effective immediately.

Spatial Corp. announced the promotion of Arnaud Poujardieu to Vice President of World Wide Sales.

* Implementation *
Agile Software announced that Sharp Corporation has decided to implement Agile Anywhere at its TFT (Thin Film Transistor) Liquid Crystal Display Group in Japan.

Altris Software announced that its South African distributor, Spescom DataFusion, has implemented a configuration management solution at IST, a South African based electronic and software technology group.

Alventive, Inc. announced that the Automation group of Parker Hannifin Corporation has selected Alventive Collaborative Design Solutions to automate the design of electromechanical systems.

Ariba Inc. and Hewlett-Packard Japan, Ltd. announced that Matsushita Electric Works of Japan will develop a large scale eProcurement system based on Ariba Buyer and using HP Japan and Hewlett-Packard Solution Delivery Ltd. hardware, support, integration and implementation services.

Cadcentre announced it has licensed its integrated suite of lifecycle process plant engineering software solutions to Foster Wheeler (Clinton, NJ). The agreement is based on a new type of flexible global licensing model that enables Foster Wheeler to pay Cadcentre on the basis of specific levels of use of each solution component.

Quickturn, a Cadence company, announced that ARM has selected the Quickturn MercuryPlus verification system to verify the ARM926EJ-S core.

Dassault Systemes announced that BMW Group has selected CATIA Version 5 (V5) for the design, analysis and manufacture of chassis systems. The first phase of the project will be a pilot implementation to prepare for the future group wide introduction of CATIA V5 at BMW.

ITI announced that Eastman Kodak Company has selected International TechneGroup Incorporated's (ITI) TranscenData business to provide product data interoperability solutions.

i2 Technologies, Inc. announced that Ingram Micro, Inc. has chosen i2 Customer Relationship Management Solutions to offer additional eStorefront tools to its value-added reseller customers.

PTC announced a multi-million follow-on contract from Nissei Sangyo, a subsidiary of HITACHI Ltd. The follow-on contract is for PTC's Pro/ENGINEER, visualization software and services.

Solid Works announced that the Royal Military College of Science, a faculty at Cranfield University in England, will use 60 seats of SolidWorks Corporation's 3D CAD software to teach students how to create "real-life" 3D solid models for both military and civilian applications.

Tecnomatix Technologies, Ltd. announced that its eMPower Machining solution was selected by Shanghai Volkswagen to help the company optimize machining-line processes throughout its engine factory locations on mainland China.





* Developments *
Ashlar-Vellum announced their next generation of precision design software: Designer Elements. The Designer Elements product line includes Graphite (for Professional Drafting), Neon, Argon, Xenon, and Cobalt (for Product Design).

AutoSolids, Inc. announced the release of AutoSolids EXPRESS, a low-cost 3D solid modeling software add-on for AutoCAD and AutoCAD-based products.

CG Tech announced that VERICUT 5.1 is scheduled to ship in August.

FileNET Corporation announced the beta program availability of Brightspire, a new eBusiness framework for collaborative commerce applications.

Immersive Design, Inc. announced that the new release of its IPA 7.1 now offers support for Autodesk's Inventor mechanical design software.

MSC.Software Corporation announced the availability of MSC.Patran 2001.

http://www.cyco.com

Win a Handspring Visor

SDRC announced the immediate availability of its TeamCenter collaborative product management solutions: Collaboration Foundation, Product Collaboration and Project Collaboration. These solutions provide the infrastructure, knowledge management system and real-time workspace, respectively, to share, manage and use product information across the entire lifecycle



Engineering Data Management Newsletter
Download a free review copy of the June 2001 issue of the Engineering Data Management Newsletter (PDF, 339kB).



* Relationships *
Ariba Inc. announced the addition of new Ariba PunchOut and Ariba Ready suppliers connected to its Ariba Commerce Services Network (Ariba CSN).

Autodesk, Inc. announced it has been named one of three Microsoft Global Partners of the Year 2001 for its leadership in providing Microsoft Windows-based solutions to customers worldwide.

Bamboo Solutions announced its partnership with Verid Technology Corporation, a leader in manufacturing and business systems design, implementation and integration. Under the terms of the agreement, Verid will utilize Bamboo Solutions' collaborative e-business software through its sales channels as well as provide dedicated consulting services and support.

Cimmetry Systems and ECInet, a provider of project management services, project collaboration and information solutions for the construction, facility management, print and graphics market in the Nordic countries, announced that ECInet has licensed Cimmetry's AutoVue for Java technology for use with its application service portals.

Commerce One, Inc. announced it has selected Intel Online Services, Inc. as a leading provider of global managed hosting services for its new Managed Application Services.

Covisint and e-STEEL announced that they have agreed to cooperate to market direct material procurement technology to the automotive industry.

EPM Technology AS and ProSTEP Produktdatentechnologie GmbH announced a strategic alliance to support European manufacturers in deploying STEP and other data exchange standards.

Hewlett-Packard Company and UGS announced a solution offering of software, hardware and services for the rapid deployment of enterprise collaboration applications in product development.

Hewlett-Packard Company and PTC announced a business alliance to integrate technology and services to develop, market and sell collaborative product commerce (CPC) solutions for manufacturers.

Hummingbird Ltd. announced it has joined the Siebel Alliance Program as a Strategic Software Partner.

MSC.Software Corp. announced a multi-channel distribution agreement for the complete line of mechanical engineering software developed by MechSoft.com.

PTC announced that KPMG Consulting, Inc. and PTC have aligned to improve the product development process of global enterprises with rapid implementation of focused Collaborative Product Commerce (CPC) solutions.

Stonesoft e-solutions Oy announced it has signed a Marketing Alliance Agreement with e-business specialist i2 Technologies. The agreement enables Stonesoft e-solutions to empower its clients' business-critical processes with i2 TradeMatrix Sales and Order Configurator modules from the CRM solution suite.

UGS announced that it has signed an agreement with Shandong Gongda Software Company to sell Solid Edge to small- and medium-sized manufacturers in the Shandong Province of China. Under the agreement, Shandong Gongda Software Company will sell 1000 licenses of Solid Edge.

Verity, Inc. announced that it has joined the Oracle Exchange Partner Initiative (OEPI).

Xerox Engineering Systems announced a marketing alliance with Softelec Software that will improve CAD image quality and enhance productivity when combined with XES scanning and printing solutions.

* Other *
Agile Software Corporation announced it is a winner in the Collaborative Product Commerce What Works 2001 Awards competition sponsored by Aberdeen Group. Aberdeen selected Agile as a CPC finalist because of the business value that its customer, Sycamore Networks, receives.

ANSYS, Inc. announced its status as an ISO 9001:2000 certified company.

Cadence Design Systems, Inc. announced LSI Logic sign-off support for Cadence SP&R.

Cimage NovaSoft announced it has been awarded the recently released ISO 9001:2000 and TickIT by Lloyds Register Quality Assurance Ltd.

Covisint Japan K.K. announced that it officially has been established as the Japanese subsidiary of Covisint, L.L.C., the joint venture of DaimlerChrysler, Ford, General Motors, Nissan, Renault, Commerce One and Oracle.

Cypress Corp. announced it has been chosen for the fourth consecutive year as one of Software Magazine's Top 500 software companies.

Digital Paper Corporation announced the Productivity Resource Optimization Program - proPLAN. This new program will provide Intranet Docs customers with an in-depth evaluation by experienced consultants to optimize the use of their document distribution system and enable users to take full advantage of their current software.

Documentum announced it was ranked 102 on the Software 500, Software Magazine's list of the world's foremost software and services providers, featured in the publication's June/July 2001 issue.

Framework Technologies announced it was named as one of ten finalists in Aberdeen Group's "Collaborative Product Commerce 2001: What Works" competition. Vendors were able to nominate one customer and Framework Technologies submitted Branson Ultrasonics as a customer case study.

MatrixOne, Inc. announced that Start Magazine selected MatrixOne for the second year in a row as a HOT COMPANY, Software Magazine listed MatrixOne among the top 150 companies on its 2001 Software 500 list, and MatrixOne was also named to the Supply Chain e-Business Top 100 list.

MatrixOne announced that Celestica has been honored by Aberdeen Group as one of the top ten CPC implementations to date. Use of MatrixOne's technology by Celestica was honored for factors ranging from Celestica's realization of full return on its MatrixOne investment, the decrease of bill of material setup from seven days to one day, the increase in bill of material accuracy from 5% to 95%, and the reduction of time-to-market with faster and more accurate new product introduction.

Océ-USA, Inc. announced that CADENCE magazine named Océ Engineering Exec 3.0 software a winner of its 2001 Editors' Choice awards, published in its July issue. In addition, the publication recognized the software with an A/E/C Systems 2001 Show Stopper Award.

Oculus Technologies Corporation announced that its flagship product CO is fully compatible with the Mac OS X platform.

PTC announced that it will provide 64-bit processing support for its Pro/ENGINEER 2001 and Pro/MECHANICA 2001 design software in the HP-UX PA-RISC environment. In addition, PTC will also be offering support for Itanium-based systems that will make HP the only hardware vendor to support 64-bit processing for Pro/ENGINEER in both the Windows and UNIX environments.

PTC announced that PTC and its customer Lockheed Martin Naval Electronics and Surveillance Systems (NE&SS)-Surface Systems' Windchill deployment were selected as one of the top ten collaborative product commerce (CPC) implementations to date by Aberdeen Group.

QUMAS Inc. announced the expansion of operations with the opening of a Chicago-based office to house the company's global marketing operations.

STEP Tools, Inc. announced its has received a $750,000 Phase Two DoD SBIR (Department of Defense Small Business Innovation Research) Grant from the U.S. Naval Sea Systems Command. With this funding STEP Tools will further develop the Web-based Smart Modeling Environment (WSME) concept to a next-generation environment for sharing ship design and manufacturing data.

Synergis Technologies, Inc. announced that the Synergis Adept product has been approved as a document management solution on the DLT Solutions Inc. Federal GSA schedule.

think3 announced that the company has won an award as one of "The Year's Ten Best Web Support Sites" from the Association of Support Professionals.

UGS announced it has been awarded Configuration Management II (CMII) certification for its i-Man version 7 (V7) collaborative product definition management solution by the Institute of Configuration Management (ICM) of Scottsdale, AZ.

Page 4
Brief lines


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Copyright 2001 by John Stark. All rights reserved.

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