December 22, 2003
2PLM

John Stark Associates


Volume 6
Number 10




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

* Welcome *
Welcome to this issue of 2PLM, an e-zine distributed every two weeks on a free subscription basis. This week's article, "Measured PLM", is from Menno Huijben of Technia. But first, a quick update about the PLM Interest Group.

* PLM Interest Group *
The PLM Interest Group has been created, and will operate from January 1, 2004.

Benefits of PLMIG membership include:
  1. improve your company's understanding of PLM and the related benefits
  2. interact with PLM thought-leaders
  3. expand your industry relationships
  4. get leading-edge PLM know-how
  5. gain competitive advantage
  6. influence the future of PLM
  7. membership services such as access to the PLMIG portal, and participation in workshops, conferences, meetings and seminars
  8. participation in activities of the Interest Group such as PLM benchmarking, definition of a PLM Capability Model and metrics
  9. free subscription to the Product Lifecycle Management Journal
Join now.

* Measured PLM *
At the beginning of a PLM project's lifecycle is the PLM business case.

What is a PLM business case? It is a package put together to convince senior management to go for PLM. It contains a credible set of expected tangible and intangible benefits and a cost estimate, wrapped up nicely, so it will be easy to market and sell.

The tangible benefits are the ones that you can express together with the cost estimate in a Return on Investment (ROI) type of calculation; how much will this cost over a certain period of time, and what do we expect to get back for that money?

Tangible benefits are found in the triangle with the corners Resources, Time and Quality. The benefits will come from using Resources more efficiently, reducing (throughput) Time, and improving the Quality of products and processes.

The intangible part of the business case contains benefits we believe in, but we cannot (yet) quantify exactly. Things like: increased customer satisfaction, increased market share, more innovations, and better protection and leverage of our intellectual capital. I put 'yet' in brackets, because when you really try, you can also express these issues in terms of money.

The cost estimate is based on proposals from PLM vendors, and estimates of the required investments in infrastructure and supporting organizational structures to configure, rollout and maintain the PLM system.

Let's assume that we are in the situation where we have made a sound business case, containing tangible and intangible benefits, and a ROI calculation. We made a nice package out of it, and remembered to stamp 'Urgent' on it. A business case without 'a sense of urgency' has no chance of being accepted by senior management. We should be able to express why we need to do it now, and that we cannot wait. If we can wait, it is not urgent, so why waste resources on it?

Presume now that our business case was well received; we got our budget approved, started the implementation project, and are well on our way to getting some data into the system and the first users trained.

To get that far a lot has happened, and we are still in a hurry, because we operate under 'the sense of urgency' argument. In all this rush, it can happen that our business case lies lost in a corner. The PLM project's steering committee might still ask once in a while 'how is it going?' but soon the project has moved into a 'business as usual' kind of phase. When your company is doing well, and its cash-flow looks firmly positive, you can survive quite a long time like this with your PLM project. However, when money gets tight, management will start to ask questions: what did we get from this PLM business case, where did our money go?

When this question comes (and sooner or later it will), you had better have an answer.

To be prepared to give the answer, you need to have performance indicators, metrics, installed around the PLM project, right from the beginning.

These metrics could be based on four simple objectives:
  1. Happy - Users. User satisfaction with the PLM system is essential; no payback can be expected while there are grumpy users.
  2. Smooth - Processes. The business processes supported by PLM should become more predictable and faster.
  3. Quality - Data. The product data should become of better quality and more complete, reducing 'Cost of Poor Quality'.
  4. Stable - System. The PLM system should have a good performance level and low cost of ownership.
For each objective, we can define a set of metrics and those have, of course, to relate back to the original business case and the current business strategy.

For example:
  1. Questionnaires and interviews will help to identify user satisfaction.
  2. Some elements of the process performance can be measured by the PLM system itself, because the history of all transactions is kept. For instance, the through-put times of change requests or items (e.g. from 'draft' to 'released') can be easily monitored.
  3. Data quality can be made visible by tracking the incidents where incomplete product information caused quality costs. The percentage of product data managed in PLM related to all existing product data in the company is also a good indicator to show progress.
  4. System stability can be measured with common system administration procedures, with availability, performance, and data security related indicators.
In addition, it is good practice to have a collection of (small) success stories at hand; quotes from key people stating their satisfaction with PLM, or cases where time was saved due to faster access to the right data.

Start with a sound business case, but do not forget to measure (and market the success) at the end.

For questions and comments, please contact me by mail or call +358 424 722 1.

Menno Huijben is a consultant at Technia, a leading supplier of PLM solutions in the Nordic countries.


Page 2


 
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Reference Section
Follow the link for books in the Product Development Library

Configuration Management . Books by Ralph Grabowski . Product Data Management . TQM



EDM/PDM/PLM World
Follow the links for :

Vendors in the EDM/PDM/PLM World. Latest additions/modifications : Agile Software and Delcam.

EDM/PDM/PLM service providers. Latest additions/modifications : LeverX, Inc., Wipro Technologies Ltd. and Zytalis.

EDM/PDM/PLM Conference and seminar organizations

Conferences and Seminars in the EDM/PDM/PLM world

Webinars in the EDM/PDM/PLM world
Follow the links for :

Domain Systems : PLM for the Medical Device Manufacturer

Domain Systems : Implementing System Improvements - How to Squeeze more ROI Out of Your Current System


CAD case studies, CAD user stories
DW Product Development, Inc. : Moldflow Adviser
PocketSpec Technologies Inc. : ColorQA Color Comparison Device
British Telecommunications (BT) : GTX
Bose Corporation : Ansoft Corporation
Others

General Interest
Innovation Management
Engineering Change Management
Managing PDM in a changing environment
Principles of Good Product Development


Newsletter : EDM, PLM, CPC
Engineering Data Management Newsletter - November 2003 issue Table Of Contents

2PLM Media Sheet
Advertisers of CAD, CAM, CAE, EDM, PCM, PDM, PIM, PLM, CPC, CPC/PLM and related systems and solutions. Read the 2PLM Media Sheet. Find out how to reach more than 30,000 customers.

Page 3
News
* Corporate *
Cimage NovaSoft Inc. announced it has entered into an agreement to acquire Access Systems LLC, an organization that provides support and consulting services for the Cimage NovaSoft products. Details

EMC Corporation, Inc. announced it has completed the acquisition of Documentum, Inc. Details

* Financial *
Manugistics Group, Inc. announced results for its fiscal 2004 third quarter. For the third quarter, total revenue was $59.9 million, down 4 percent from $62.4 million in the prior year quarter. Details

Verity, Inc. announced its financial results for the second fiscal quarter ended November 30, 2003. Verity's total revenues were $28.9 million, up 8.6% from first-quarter revenues of $26.6 million and up 26.2% from second-quarter 2003 revenues of $22.9 million. Details

* People *
Actify announced the appointment of Lynne Saunders as vice president of Marketing. Details

Avatech Solutions, Inc. announced that George Cox, Gary Clark and Ed Aronson have been added to Avatech's Board of Directors. Details

 Autovue - from Cimmetry Systems, Inc.

Download AutoVue from Cimmetry Systems

i2 Technologies, Inc. announced that Katy Murray will succeed Bill Beecher as chief financial officer and executive vice president. Details

Moldflow Corporation announced the addition of Mr. Robert J. Lepofsky to its board of directors. Details

* Implementation *
Aras Corporation announced that Syracuse Research Corporation has selected the Aras Innovator Suite for enterprise-wide PLM deployment. Details

Documentum announced that AstenJohnson, a manufacturer of paper machine clothing, specialty fabrics, filaments and drainage equipment, has selected Documentum 5, the latest version of the Documentum ECM platform, and Documentum eRoom 7, Documentum's enterprise collaboration solution. Details

Formtek Inc. announced that its UK-based technology alliance partner, LSC Group, will use the Formtek Enterprise Content Management solution as a key component for a contract with the United Kingdom Ministry of Defence (MoD). Details

LMS International announced that Goodrich Corporation Space Flight Systems has selected LMS Test.Lab to perform vibration qualification testing and analysis on spacecraft and launch vehicle electronics. Details

MatrixOne, Inc. announced that Yazaki North America, Inc., a Tier One automotive supplier of vehicle power and data solutions, is currently implementing its initial deployment of MatrixOne solutions. Details

MSC.Software Corp. announced that Oshkosh Truck Corporation has selected MSC.Software to provide modeling and simulation services for the first phase of the US Army Future Tactical Truck System (FTTS) program. Details

PTC announced that General Atomics has signed a $1.4 million agreement with PTC. Details

PTC announced that the U.S. Department of Energy's National Nuclear Security Administration (NNSA) is moving to PTC's new Pro/ENGINEER Wildfire and upgrading and expanding use of the solution as part of a $10 million, three-and-a-half-year agreement signed in September 2003. Details

SolidWorks announced that Automotive Products (AP) Driveline Technology is using SolidWorks 3D mechanical design software. Details

SolidWorks announced that Emerson Motor Technologies is deploying SolidWorks 3D PartStream.NETservice. Details

Tecnomatix Technologies Ltd. announced a global agreement with a major automotive manufacturer. The agreement is expected to generate total revenues in excess of US$50 million over the next four years. Details

Tecnomatix Technologies Ltd. announced that Artesyn Technologies will use eMPower solutions from Tecnomatix. Details

think3 announced EuraMobil GmbH has decided to standardize on think3 products and services for its product development platform. Details

* Developments *
Algor, Inc. announced the release of ALGOR V14.2. Details

Centric Software, Inc. announced the latest release of its flagship application suite, Centric Innovation 5.0. Details

Covisint announced the completion and launch of its new Covisint Connect data messaging service. Details

Formtek Inc. announced a new release to its Formtek Orion 4 Foundation products - version 4.4.1. Details

Framework Technologies announced that they have begun shipping Version 10.1 of their ActiveProduct and ActiveAEC solutions. Details

Informative Graphics Corporation announced that it plans to update its free DWG Viewer based on the new Open Design Alliance DWGdirect libraries and IGC's new Brava!/ActiveX framework. Details

Integrated Support Systems, Inc. announced the immediate availability of SLICwave v5.0 product supportability software. Details

LightWork Design announced the release of a new version of LightWorks. Details

Mentor Graphics Corporation announced the availability of the Engineering Change Order (ECO) Cockpit integrated into the IC Station custom integrated circuit (IC) layout environment. Details

Moldflow Corporation announced the immediate availability of Moldflow Plastics Advisers 7.0 software. Details

Moldflow Corporation announced the release MMS/Production Monitoring 1.0, a plant-wide manufacturing execution system for discrete manufacturers. Details

Product Sight announced an integration of its PLM technologies. The new Product Sight Lifecycle Environment (PSLE) combines its SyncroSpec and FindView products. Details

Rasterex released RxAutoImage R7 for AutoCAD 2004 and AutoCAD LT 2004 Details

Rasterex released RxSpotlight R7. Details

SofTech, Inc. announced the availability of a new release of its ProductCenter product lifecycle management (PLM) solution, ProductCenter 8.3. Details

Spicer Corporation, a leading developer of universal viewing and markup solutions for ECM, PLM, and reprographics applications announced ViewCafe 3.2, an upgrade to Spicer's scalable, Java thin client universal viewing and markup tool. Details

Synergis Technologies, Inc. announced the availability of Synergis Adept 5.1 PDM solution for SolidWorks 2004 software. Details

Tecnomatix Technologies Ltd. announced the immediate availability of FactoryLink 7.2. Details

Tecnomatix Technologies Ltd. announced the launch of eM-Insight, a data source-neutral tolerance management and statistical process control (SPC) product. Details

UGS PLM Solutions announced the immediate availability of NX Nastran for Femap. Details

UGS PLM announced how Solid Edge Version 15 has been enhanced for designers of consumer products. Details

* Relationships *
ImpactXoft announced that Cornerstone Technology Inc. has joined ImpactXoft's Need SPeeD reseller channel program. Details

InnovMetric Software announced that it has entered into an agreement with 3D Scanners (UK) to distribute PolyWorks in the United Kingdom. Details

MatrixOne, Inc. and Sogeti USA LLC announced that they have forged an alliance whereby the two companies will join forces to deliver product lifecycle management solutions to North American product development companies. Details

PTC announced that Peak Technical Services, Inc. has joined PTC's Channel Advantage Reseller Program. Details

think3 announced it signed a new partnership agreement with SENER. Details

* Other *
BioPoint Solutions, Inc. announced its official company launch. Details

Dassault Systemes announced it is partnering with The Boeing Company to enhance its suite of V5 Product Lifecycle Management (PLM) solutions to provide the tools required for the 7E7 development environment. Details

Dassault Systemes announced the establishment of an academic partnership with AIP-PRIMECA, a countrywide network of French universities and higher learning institutes, to advance Product Lifecycle Management (PLM) education. Details

Omnify Software announced that Mangrove Systems is successfully collaborating with external partners on new product development. Details

PTC announced it has increased its installed base in the automotive industry to approximately 3,000 customers. Details

PTC announced that the METAspectrum PLM Evaluation has positioned PTC in the Leader category among PLM vendors. Details

Proficiency announced that the Company received a Cadalyst magazine "Editors' Wow! Award" for its Collaboration Gateway Version 3.0. Details

UGS PLM Solutions announced Parasolid has expanded its position in the global computer-aided engineering (CAE) software market. Details

UGS PLM Solutions announced Parasolid has expanded its position in the global computer-aided manufacturing (CAM) software industry. Details

UGS PLM Solutions announced a technical sponsorship agreement with American Challenge, Inc. (ACI). Details

UGS PLM Solutions announced it has achieved "Leadership Status" in META Group's recently released METAspectrum for Product Lifecycle Management (PLM). Details

UGS PLM Solutions announced its intention to support the new AMD Opteron processor with two of its flagship product development software solutions - Unigraphics NX and Parasolid. Details

Page 4
Brief lines


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