December 30, 2002

2PLM John Stark Associates

Volume 5 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, Resource & Capacity Management in Product Development, is from Bradford L. Goldense and Anne R. Schwartz of the Goldense Group, Inc. (Needham, MA). This article summarizes results from a survey recently completed by Goldense Group, Inc. (GGI), a respected consultancy and research firm whose work we here at 2PLM have been aware of for many years now. Many 2PLM subscribers and friends participated in the survey, introduced by Brad in an article in the August 12, 2002 issue of 2PLM. * Resource & Capacity Management in Product Development * Every other year, on even numbered years, GGI conducts a survey of hot topics in engineering and product development. The 2002 GGI Product Development Survey focused on "Resource & Capacity Management." A free copy of the survey can be downloaded from GGI's web site at http://www.goldensegroupinc.com/biannual.shtml. The 2002 Survey explored five Resource & Capacity Management issues: 1. Loading the RD&E Capacity Pipeline : The methods companies use to select projects and establish backlogs and priorities. 2. Providing Capacity for RD&E Activities : The approaches companies take to determine outsourcing requirements and the allocation of resources to sustaining activities. 3. Balancing Cross-Functional Resources : The resource ratios companies use between functional disciplines within RD&E, and between RD&E and cross-functional disciplines. 4. Using Systems, Tools, & Metrics to Manage Capacity : The infrastructure companies have put in place to enable resource and capacity planning and management. 5. RD&E Metrics Used In Industry : The metrics and measures companies use to plan, track, and manage resource and capacity allocation activities. GGI's 2002 Metrics Survey questionnaire was quantitative and targeted at advanced R&D practitioners. Many companies did not participate, as their processes were not mature enough to generate the information sought in the questionnaire. As a result the 83 respondents constituted a "self-selected sample" of advanced R&D practitioners representing the aerospace, automotive, chemical, consumer products, durable goods, electronics, industrial products, medical products and semiconductor industries. Sixty-one percent of the respondents were from public companies; the rest were from private companies. Respondent companies were fairly evenly distributed with regard to sales revenues, with the exception of the nearly one-third of respondents reporting revenues in the $25 million to $100 million range. Nearly one-half (48%) of respondents were smaller firms having between 1 and 500 employees. Eleven percent of the respondents represented companies of over 5000 employees. While three-quarters sell globally, almost all develop only in North America and less than half manufacture offshore. The key findings from analysis of the survey data are summarized below. 1. Loading the RD&E Capacity Pipeline. Wheelwright and Clark have postulated that R&D capacity is loaded between 150% and 300% of its capacity, resulting in inefficiencies in output. More careful review should result in better product selection and improved loading. A significant majority of companies now reporting are following a rigorous project/product selection process. 80% of the firms use a 2-Step or 2.5-Step methodology, which results in only 29% of products initially reviewed at Step 1 approved at Step 2 for launch to full development. This sharply contrasts with companies using a One-Step selection process, where 78% of the ideas are approved for development. Clearly this leads to capacity overload of the development function. One can easily conclude that a 2-Step or 2.5-Step process is far better for managing R&D capacity. For advanced development projects, a significant number of firms (49%) are even using the same 2-Step or 2.5-Step decision process. 2. Providing Capacity for RD&E Activities. Almost everyone is contracting out some of its engineering work. 90% of the respondents report that practice, but of that total 82% outsource less than 16% of the workload. Noteworthy is the fact that only 5% of outsourced resources perform sustaining engineering. A significant minority of firms (39%) reported that their sustaining support operations (engineering, spare parts, service) is a profitable business and that they organize selected resources to focus on those activities. 3. Balancing Cross-Functional Resources. On average, development professionals in technical disciplines spend two-thirds of their time on new product development and one-third on sustaining engineering. Cross-functional development professionals spend one-third of their time on new product development and two-thirds on sustaining engineering. This is the result we expected, because technical development professionals are primarily responsible for new product development, while the cross-functional disciplines typically are more focused on existing products. Based on a comparable study, in which GGI participated in 1991, cross-functional participation in the new product development process is clearly on the increase. It is no longer the domain of design engineering exclusively. Depending on the discipline the data show a 30-40% increase in time spent in new product development by non-engineering people. This holds true for Quality, Manufacturing Engineering, Purchasing, and Process Engineering. Only the Marketing function did not significantly increase its participation in new product development. 4. Using Systems, Tools, and Metrics to Manage Capacity. With regard to systems and tools, there are few robust solutions available today for capacity management. Some 12% of the respondents took the bold step of developing a custom software application to manage capacity, while 5% attempt to realize capacity management by using a multi-project management system. Stand-alone tools such as MS Project are still the most common. Single-user MS Project-type systems with resource data exported in a variety of ways, most popularly to a spreadsheet with no underlying project management system, are the approach reported by 62% of the respondents. Surprisingly, nearly one quarter of the respondents reported no project management system or software, resulting in no opportunity for capacity management. With regard to metrics, just over 1/3 of the respondents have a defined set of R&D metrics (36%) while a comparable number could derive the metrics set from experience and observation of meetings, etc. Almost 1/3 (29%) cannot state what is measured. The average number of metrics in use in companies that can only derive the set is approximately 1/3 more (8.3) than where the set is clearly stated (6.4). 5. R&D Metrics Used in Industry. Over the past four years GGI has conducted three surveys aimed at determining the commonality of metrics across companies. Only 5 measures are used by more than 40% of those reporting, reaffirming what has been observed in past years. The most common metrics (and the percentage of companies using them) are: R&D Spending as a % of Sales (68%), New Products Completed/Released (46%), Current-year % of Sales due to new products released in past "N" years (47%), Total Patents Filed/Pending/Awarded (50%), and Number of Approved Projects-Ongoing (42%). None of the metrics noted is unique to the R&D managers. All of the above metrics, with the possible exception of Current-year % of Sales due to new products released in past "N" years, originate from non-development functional areas such as Finance, Legal, Sales and Marketing. A great opportunity exists for the Product Development function to measure itself. Copyright 2002. Goldense Group, Inc. All Rights Reserved. Three research reports, Highlights, Summary and Detailed Results, are available through the GGI Electronic iStore. A complete reference is: Goldense, B. L., Power, J. R. and Schwartz, A. R., Pipeline Loading, Resource Allocation, Cross-Functional Balancing, & The Tools Involved, Goldense Group, Inc., Needham, MA, 2002. Anne Schwartz, Director of Research & Publications, can be contacted at 781-444-5400 or ars@goldensegroupinc.com. http://www.goldensegroupinc.com/

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ThetisPro - Unified PLM solution from Thetis Technologies. Inc. Reference Section Follow the link for books in the Product Development Library Configuration Management . Innovation Management . Performance Metrics . QFD Proposed ICP-35K Project In a recent issue we mentioned the proposed "Implementing CPD and PLM Technologies for 35,000 European Manufacturing Companies" project for the Sixth Framework Programme of the European Community for research, technological development and demonstration. The Expression of Interest for the project is on the European Commission's CORDIS web site at http://eoi.cordis.lu/dsp_details.cfm?ID=34920. The corresponding Call for Proposals has been made: Thematic call in the area of "manufacturing, products and services engineering in 2010". Identifier: [FP6-2002-IST-NMP] Closing Date: 24 April 2003 (first stage) http://fp6.cordis.lu/fp6/call_details.cfm?CALL_ID=10. Here is an updated list, by country, of the Consortium members participating in preparation of the proposal: Austria : AVL Belgium : CRIF/WTCM, Decubber Project Associates, KUL, The European Federation of high tech SMEs, Sequoyah Denmark : Teknologisk Institut Finland : Huhtamaki Group, Technia France : Centric Software SAS, CTBA, EADS, i-nova, PSA, Tecnomatix France Germany : ABB, Accenture, BMW Group, Bosch, CAxOPEN, CeTIM (D/NL), DaimlerChrysler, EADS-M, EMC, EPI-K, Fraunhofer Institut, Siemens, TU Dresden, TU Munich, Uni. Bochum, Uni. Kaiserslautern, Uni. Magdeburg, VDI/VDE-IT Greece : Technika Plastika SA, TU Athens Ireland : CIMRU Galway, KineMatik Italy : CR-Fiat, IITA Milan, Politecnico di Milano, think3 Netherlands : ADSE, EDS, TNO, TU Eindhoven Norway : EPM Technology, SINTEF Portugal : NLS, Uninova Spain : AIDIMA, CIDAUT, IDEKO I.A.E., SOCINTEC Sweden : Eurostep, IVF Switzerland : ABB, Cadcamation, Charmilles Technologies, CERN, EPFL, HES-SO Geneva, ITI, John Stark Associates, Step-X UK : PDEX, Queen's University, NIAC, Sun Microsystems, Tempest Consulting, Uni. Cardiff, Uni. Edinburgh, Uni. Loughborough, Xerox Malta : Uni. of Malta Poland : OTI Warsaw, IPEA Wroclaw, Uni. Lodz Slovenia : CADING Brasil : UFRGS Porto Alegre In discussion : Access Commerce, ADEPA, Bombardier-Rotax, CostVision, Computer Technologies, Cranfield University, Design Rule, DuPont Europe, IAI, Lumiscaphe, Plexion UK, Polyplan, TU Bergakademie Freiberg, Uni. Auckland, Xebic. To achieve a good balance in terms of size, industry, application and geography, we would like to hear from other European organisations, for example : universities and research organisations that address PLM companies, particularly in the food and pharmaceutical sectors, that may be interested in participating in the project, as well as those that would like to support it without actually participating. If you're based in the UK or Ireland contact Roger Tempest. If based in another EU country, or in one of the Candidate Countries, contact John Stark. Here are two documents that answer frequently asked questions: How to join SME Entry Package To avoid duplication of objective, scope and effort, we would also like to hear from people involved in other proposals that may be made in the area of "manufacturing, products and services engineering in 2010". EDM/PDM/PLM World Follow the links for : Vendors in the EDM/PDM/PLM World. Latest additions/modifications : Auto-trol Technology Corp., Galaxia. EDM/PDM/PLM service providers. Latest additions/modifications : Accenture, gedas, Sopheon Plc. EDM/PDM/PLM Conference and seminar organizations Conferences and Seminars in the EDM/PDM/PLM world CE2003 : 10th ISPE International Conference on Concurrent Engineering Madeira, Portugal. July 26-30, 2003 PTC/USER World Event Orlando, FL. June 8-11, 2003 ProSTEP Symposium 2003 Ruesselsheim, Germany. May 7-8, 2003 PLM World 2003 Anaheim, CA. April 28 - May 2, 2003 Cambashi Seminar 2003 Gaydon, England. April 9, 2003 Total Design Solutions 2003 Novi, MI. March 19-20, 2003 Collaborative Product Development and SRM Strategies for Aerospace 2003 Bethesda, Maryland. March 17-19, 2003 CAD case studies, CAD user stories DW Product Development, Inc. : Moldflow Adviser PocketSpec Technologies Inc. : ColorQA Color Comparison Device Polymer Technologies : Moldflow Jada Plastics : Moldflow 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 Newsletters Engineering Data Management Newsletter - November 2002 issue Table Of Contents CPC/PLM Strategies : 2002 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 with one mouse click.

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* Corporate * Commerce One and eScout LLC announced that eScout will acquire the Commerce One.net marketplace, a business unit of Commerce One. The combination of eScout and Commerce One.net creates the world's largest business-to-business e-commerce marketplace and provides for more efficient operations through consolidation. Details SofTech, Inc. announced the expiration of the initial offering period of the tender offer by SofTech for all of the outstanding shares of common stock of Workgroup Technology Corporation. Details Verity Inc., a provider of infrastructure software that powers corporate intranets and e-commerce sites as well as e-business applications, announced the completion of its acquisition of the enterprise search software business from Inktomi Corp. Details * Financial * Manugistics Group, Inc. announced results for its fiscal third quarter ended November 30, 2002. Total revenue in the third quarter decreased 11 percent sequentially to $62.4 million from $69.9 million for the Company's second quarter. Details Download AutoVue from Cimmetry Systems * People * QAD announced it has appointed Larry J. Wolfe to its board of directors. Details * Implementation * Aras Corporation announced that Fox Electronics has purchased and is in the process of deploying the supply chain module and will follow with the implementation of the quality management module of the Innovator Application Suite. Details Autodesk announced that TKG Consulting Engineers has improved and accelerated the design process on a major research facility expansion by using the Autodesk Buzzsaw project collaboration service from Autodesk, Inc. Details Autodesk, Inc. announced that Secron Co., Ltd. of Korea has reported a 30 percent increase in productivity since 2000 with Autodesk Inventor 3D mechanical design software and Autodesk Streamline online project collaboration service as compared to their previous CAD system. Details MatrixOne, Inc. announced that New Balance Athletic Shoe, Inc. is deploying MatrixOne collaborative PLM products to increase the effectiveness of its product development process, develop synergies between brands, and advance international collaboration. Details Universal Viewing and Mark Up from Spicer Corporation Mentor Graphics Corporation announced that Goyatek Technology Inc. has standardized on its Design-for-Test (DFT) tools for their DFT service flow. Details PTC announced it has received a $10.4 million multi-year follow-on order for software upgrades, new modules and services from Raytheon Company. Raytheon's government, defense and commercial electronics businesses have standardized on PTC's Pro/ENGINEER. Details PTC announced that the US National Aeronautics and Space Administration (NASA) is expanding its implementation of PTC's Pro/ENGINEER design software and services with a new multi-million dollar, multi-year order. Details Tecnomatix Technologies announced that Venture Corporation Limited, a global electronics services provider, has signed an agreement valued at approximately US$850,000 to license and support the implementation of eMPower MPM software solutions from Tecnomatix Unicam at several locations. Details * Developments * ITI TranscenData announced the release of DEXcenter 4.1, the latest version of its web based engineering supply chain data exchange solution. Details LightWork Design announced the release of the LightWorks 7.0 rendering engine. Details REALVIZ announced the availability of ImageModeler 3.5, available for the first time on the Macintosh platform. Details Surfware, Inc., makers of SURFCAM CAD/CAM Systems, announce that with the release of SURFCAM 2002 Plus, all SURFCAM CAM products will include the latest release of the Predator CNC Editor software. Details 3D Systems Corp. announced the availability of LaserForm ST-200 material for the SLS systems. Details * Relationships * EDS announced its product lifecycle management (PLM) line of business and The Procter & Gamble Company have agreed to jointly develop a new Teamcenter solution targeted at the consumer packaged goods (CPG) industry. Details Elysium Inc., a provider of CAD translation software, announced that it has entered into partnerships with distribution partners located in France, Germany, South Africa, the United Kingdom, Italy, and the Benelux region. Details More about Myriad and Brava! WebKit from Informative Graphics Corporation FileNET Corporation announced it has formed a technology alliance with BEA Systems, Inc. to develop and market integrated content and process management solutions designed for use with BEA WebLogic Platform 7.0. Details * Other * Cadence Design Systems, Inc. announced that it has delivered to the OpenAccess Coalition source code for the OpenAccess reference database implementation. Details Documentum announced that Transform Magazine has chosen Documentum 5 as one of 2002's best enterprise content and collaboration technologies. Details Documentum announced that its enterprise content management platform, Documentum 5, has been awarded the Content Management System of the Year by Data News. Details EDS announced Design News Magazine has named new technology in its Solid Edge CAD software the best new computer productivity tool for 2002. Details ImpactXoft announced recognition of the importance of Functional Modeling, Functional Object Representation, and Design Intent Merge technology. Details Opticore, in association with the on-line news service Car Design News, announced the launch of Go Digital, the world's first Digital Automotive Design Competition. Details PTC congratulated NASA on its selection to the 2002 InfoWorld 100 for its implementation of PTC's Windchill. Details QUMAS announced that the company has been named to the 2002 Deloitte Touche Tohmatsu Technology Fast 500, a ranking of the 500 fastest-growing technology companies in Europe. Details SolidWorks announced that its software has become the standard for 3D CAD in Michigan's manufacturing and engineering industries. Details For more information and to see our latest PDM and PLM jobs visit our website Spatial Corp. announced that their recently released suite of R10 products, including the 3D ACIS Modeler, have been pre-certified on Advanced Micro Device's (AMD) next generation Opteron processor. Details The OpenHSF Initiative announced the availability of v8.0 of the openly published HSF specification. Details VX Corporation announced that Version 6.5 of VX CAD/CAM software has earned a Cadalyst magazine All-Star Award. Details

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