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* Welcome *
Welcome to this issue of 2PLM, an e-zine distributed every two weeks on
a free subscription basis. This week's article, "PLM Release 1.0", is from
Menno Huijben of Technia. Menno's previous article appeared in the April 12,
2004 issue of 2PLM.
* Feedback on "Directions for research into PLM" article *
First, though, some feedback from Don Frank, President of D. N. Frank
Associates about the article in the
July 5 issue of 2PLM.
"As you know, I have been a follower of 2PLM from when it was in its
cradle. The July 5, 2004
issue of 2PLM e-zine
indicated the inception of a PLM Research SIG. As I read the
objectives, I worry that PLM will take the same narrowly focused
path that ERP has taken, thereby perpetuating the wide gulf between these
two primary business process optimization tools.
I also note that there is a perception in the PLM family that
the concept and the execution tools are either relatively
new or need to be developed. NASA has been around long enough
for us to realize that cradle to grave configuration management,
aka GPLM (Global Product Lifecycle Management) has been with for
many years. Indeed we have had GPPLM (Global Product and Process
Lifetime Management) in place for many years, not just with NASA
here in the US, but in the pharmaceutical, food processing and
other areas of manufacturing industries throughout the world
as well.
In my opinion, one of the major tasks of
the PLM Research SIG should be to identify those business
processes and tools that are GPPLM oriented, highlight the
gaps in the process and then develop scenarios to bridge those
identified gaps. It should seek to expand the functionality of
the data interoperability tools already in place. It should
focus, not just in manufacturing, but in all endeavors, both
commercial and government that can surely benefit from GPPLM.
Here in the USA, manufacturing industry represents a small segment
of PLM need and tends to be already saturated with, albeit not
interoperable, software tools. The power to invest in new
products, processes and initiatives is severely limited in the
US manufacturing arena. I'd love to see the Research SIG move into
areas where financial support is more likely to be available.
Forgive me for adding some more acronyms to the already
overflowing alphabet soup bowl, but the one I like the best
is GERM, global enterprise resources management, which
captures all the internal disciplines and expands them
throughout the supply chain."
Don Frank can be contacted at
mail,
website.
Reply
- One of the potential Research subjects mentioned in
2PLM
was "How will ERP systems change in response to PLM?". Today,
no-one knows. Maybe one system (one GERM) can do all, maybe not.
- PLM is not only about applications. As mentioned in the
January 19, 2004
issue of 2PLM,
"PLM requires a holistic approach melding product-related
application systems, data, processes, techniques and skills."
- While it is true, in some way, that companies did, in the past,
"manage their products across the lifecycle", there is an implication
that PLM means "actively managing products across the lifecycle in a
joined-up way". If PLM is not new, then companies must have
"actively managed products across the lifecycle in a joined-up way"
in the past. In which case, what was the name of this business activity
in the past? And what was the title of the person in the company leading
this activity?
- As mentioned in the March 1, 2004
issue of 2PLM,
"According to the report of the GGI 2000 Product Development Metrics Survey
carried out in 2000 by
Goldense Group, Inc.,
only 19% of companies have
an active product obsolescence or product retirement activity. In 81%
of companies, old products just fade away over time as fewer and fewer
orders are placed for them." In PLM terms, these companies weren't
actively managing their products across the lifecycle, they weren't
doing PLM.
- NASA manages products across their lifecycles, yet provides examples
of the need for improvement (e.g. Challenger, Columbia).
- From the point of view of the user/customer of an organization's
product/service, it's often much more important that the organization has an
effective PLM activity than an ERP system.
- Applications of PLM in government, as well as in banking, insurance and
other financial sectors, are being reviewed as potential areas of research for
the PLMIG Research SIG.
* PLM Release 1.0 *
PLM is a grand vision, and a project that sets out to implement this
vision could become correspondingly grand. The problem with such projects
can be that they turn into never-ending stories. However, I don't think
an attempt should be made to realize the PLM vision in one project.
PLM can be realized only when it is integrated in the strategy of the
company and is a well managed operational activity; PLM needs to become
business as usual.
Surely, one can and should start with PLM in a project mode, but one
of the key deliverables of this project should be PLM firmly anchored
in the organization. This means that processes and organizational
structures are in place to ensure that the PLM targets will be
reached. This implies that everybody in the organization knows the
benefits PLM will bring, and that PLM is here to stay.
To work towards this objective, it is good practice to take a
continuous improvement approach and to start, from the beginning, to
think in terms of 'Releases' and Release Management.
I define a PLM Release as a tested and documented set of new and/or
improved functionality, that supports a certain group of people with
their business processes, in order to create and maintain a
collection of (product) data. A PLM Release also includes all related
documentation and activities (such as process improvements and training)
to deploy the release.
So, we start with PLM release 0.1. This can be a proof of concept
(for example, delivered by an external supplier) or the first result
of a rapid application development approach, where the requirements
(rather than a tall pile of documentation) are captured in a working
prototype.
PLM 0.1 is approved, and perhaps a PLM 0.2 and 0.3 will be released
to iron out some minor flaws. Then we gear-up to build PLM 1.0.
Release 1.0 will be a rigourous, well-tested solution. Many people have
to be trained, product data cleaned and migrated, and, to a certain
extent, systems like ERP and CAD have to be interfaced. When PLM 1.0
goes productive it will be used in a controlled environment
by a selected group of (critical and motivated) people. Getting PLM
Release 1.0 productive is a major milestone, so do not
forget to communicate and celebrate that.
After Release 1.0 you can close the project - hand over PLM 1.0 to
a support organization, and establish a new organization for future
PLM release management. This new organization has to define a
roadmap, plan the content of the coming releases, and manage new
projects to execute the plans.
Whereas Release 1.0 can be seen as laying a foundation, and so can be
considered as a strategic investment, the next releases need to be
driven by requirements that meet important business goals.
The content of the next major PLM Release (2.0) will be defined by, in
consultant-speak, the Critical Success Factors of the business, and
has to show how Key Performance Indicators (KPI's) will be affected.
In other words, each major release requires its own business case: why
are we doing this, what benefits will we get, and what does it cost?
Release management requires that you create a PLM roadmap, with clear
content, delivery dates, expected benefits, and an approved budget.
The minor releases, PLM 1.1, 1.2, .. can be rolled out meanwhile by the
support organization to provide business-critical enhancements, fix
bugs, and show people you are taking their improvement suggestions
seriously.
Planning these minor releases is a balancing act between keeping the
Total Cost of Ownership (TCO) of your PLM solution under control, and
ensuring happy users, smooth processes, quality data and a stable
application.
Thinking in terms of releases will make it easier to synchronize
with the software releases of your PLM application system provider(s).
Decisions to upgrade your PLM applications to the next release will
be better founded when they are related to your own roadmap and
release plan.
Do consider building release management into your PLM project from
the beginning, it will help you to improve the performance of your
PLM investment.
For questions and comments, please contact me by
mail or call +358 424 7221.
Menno Huijben is a consultant at Technia,
a leading supplier of PLM solutions in the Nordic countries.
PLM articles
We're always pleased to hear from readers about PLM articles that
appear in other publications.
Many thanks to Chris Horrocks for
pointing out Gene Bylinsky's "Not Your Grandfather's
Assembly Line" in Fortune.
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