January 13, 2003
2PLM

John Stark Associates


Volume 5
Number 11




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 feature article introduces the subject of Product & Portfolio Management. It's the first in a two part series. The second part will describe application software planning and will identify some vendor sources. It will appear in the January 27, 2003 issue. This series was written by regular contributor Dick Bourke, a PLM/ERP consultant, and Tom Boyer, a new contributor with expertise in New Product Development.

* Product & Portfolio Management: Part I - Overview *
The Significance of Product & Portfolio Management
For years, companies have struggled to manage the myriad of information-intensive activities in New Product Development (NPD) processes, such as coordinating design and development resources, launching marketing plans and deploying new designs for world-wide use. In the frenetic time compression atmosphere for reducing time-to-market and coping with 24/7 global product development, paper-based, or semi-manual methods for managing NPD are no longer adequate.

Numerous knowledgeable sources validate management's heightened attention to the NPD process, citing product launch failures, missing Return on Investment objectives, and not delivering customer expected products and services. For instance, Pittiglio, Rabin, Todd, and McGrath (www.prtm.com) stated that approximately 70% of companies surveyed are dissatisfied with their results in managing NPD.

Now, for superior NPD management, Web-based Product & Portfolio Management (PPM) application software is rapidly emerging within the broad scope of Product Lifecycle Management (PLM). The overall goal of using PPM software is to dramatically improve the success ratio of new products - maximizing the rewards while minimizing the risks.

What is Product & Portfolio Management?
To ensure a common understanding for this series, two definitions are:

1. Product & Portfolio Management (AMR, www.amrresearch.com)

Applications that provide decision support tools for resource management at three levels of NPD management:
  • Project - day-to-day coordination of task-level activities compared to a reasonably clear set of short term commitments;
  • Program - coordination of interrelated projects, with interdependencies among resources, intermediate deliverables, information, and other inputs; and,
  • Portfolio - rational assessment of resource allocation against top-level strategic goals and risk/reward expectations.
2. Stage Gate - the recognized methodology used by almost all commercially available PPM software (Condensed from Product Development Institute, www.prod-dev.com, and Product Development Management Association, www.pdma.org).
  • A systematic process that divides the product development effort into distinct time-sequenced stages separated by management decision gates. A stage is a period of work and is preceded by a gate manned by executive decision makers (gatekeepers) responsible for go/no go decisions.
Each stage identifies prescribed activities and associated deliverables, percent complete, and schedule dates. Means are provided for updating the status of each deliverable, such as market analysis and preliminary design.

Each gate identifies and defines the relevant criteria for a change in direction (go/no go), and the value of the criteria, e.g. market conditions or resource availability. In addition, users identify associated metrics for analysis, all typically presented in some type of decision Dashboard.

Project and program managers use process templates to monitor day-to-day activities and to initiate appropriate decisions and actions, such as adjusting resources and schedule dates. Templates may vary by type of process, for instance, NPD as contrasted to current product improvement. A typical template for NPD might include six combinations of stages and gates, starting with Initial Concept and finishing with First Customer Shipment.

Portfolio Management - The Strategic Level of PPM
Commonly identified as the "C" level interface ("C" - as in Chief Executive Officer), Portfolio Management (PM) provides the analytic perspective on a company's pipeline of new products. PM is an executive decision support tool used by executives to continually balance the risks/rewards of the product portfolio against a company's strategic objectives.

To facilitate executive analysis, the PM level software typically provides a wide range of display options, pie charts, graphs, etc., with virtually unlimited choices for rolling up, filtering, and grouping projects or programs to focus on specific types of markets. Risk/reward bubble charts show Expected Commercial Value, or Net Present Value. The bubble size and color often represent risk, priority, or resource requirements for ease of comparison and tradeoff analysis. X and Y scales may represent revenue vs. cost, impact vs. probability, market share vs. distribution costs, or other parameters relevant to a company's business strategy.

Consultants Preston Smith and Donald Reinersten stress the value of PM (1) : "The process of (NPD) quantification is ..a (n) analysis to determine how sensitive profits are to changes in key product parameters. Once we know how sensitive profits are to these parameters, we can trade them off against each other to maximize profitability. … managing new product development depends on balancing efforts toward these four key objectives:
  • Market introduction date
  • Product unit cost
  • Product performance
  • Development project expense"
A Final Thought - Part I
Information Technology application software that enables new product development and deployment processes is now available. In the past, enterprises often relied on manual, or semi-manual NPD processes. In today's environment, however, product development at Internet speed requires and absolutely relies on the most reliable, timely information to enable the necessary processes that cross organizational and geographic zones. Some of the emerging NPD application providers for these processes will be discussed in the next article.

Reference
1. Smith, Preston G. and Reinersten, Donald G., Developing Products in Half the Time, John Wiley & Sons, Inc., 1995, p23.

Richard Bourke provides PLM/ERP strategic and operational consulting to manufacturing companies and software firms. Read his publications and contact him at www.bourkeconsulting.com.

Tom Boyer is a consultant specializing in improving NPD processes. Contact him at www.create2deploy.com.


Page 2


 
 Spicer View/Mark up - Powerful Performance, Easy to use.

Universal Viewing and Mark Up from Spicer Corporation




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, PLM Systems, Politecnico di Milano, think3
  • Netherlands : ADSE, EDS, TNO, TU Eindhoven
  • Norway : EPM Technology, SINTEF
  • Portugal : NLS, Uninova
  • Spain : Accenture, 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, QMS, Sun Microsystems, Tempest Consulting, Uni. Cardiff, Uni. Edinburgh, Uni. Loughborough, Xerox
  • Czech Republic : Zetor
  • 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, DENC AG, Design Rule, DuPont Europe, IAI, LMS, Lumiscaphe, Plexion UK, Polyplan, TU Bergakademie Freiberg, Uni. Auckland, Xebic.
We are sometimes asked what is special about this proposed project. Without knowing the details of all the other projects that have been proposed, it's difficult to answer that question. However, here are a few thoughts :
  • ICP-35K seems to have been the only Expression of Interest (EoI) focused on PLM (Product Lifecycle Management) in the sense of "cradle to grave" management, definition and support for manufactured products and associated services.
  • ICP-35K seems to be the only EoI that addresses CPD (Collaborative Product Development) within the context of PLM.
  • ICP-35K seems to be the only EoI that addresses STEP within the context of PLM.
  • ICP-35K addresses both discrete and process manufacturing.
  • ICP-35K addresses processes, human resources, application systems, techniques and information for the lifecycle management, development and support of products and services.
  • ICP-35K aims to help more than 35,000 companies implement CPD and PLM. These companies represent a knowledge community of more than 1 million people developing and supporting manufactured products and associated services.
  • PLM is the "new frontier" after CAD, ERP, SCM and CRM. It's where manufacturing companies aim to gain ground over their competitors in the coming decade. ICP-35K is addressing a strategic target on the road to 2010.
PLM has a very wide scope, and is complex and difficult to implement. ICP-35K is ambitious but realistic. To achieve its targets it needs participation from organisations of different size, location, industry and application. To achieve a good balance for the project we would still like to hear from other European organisations interested in participating, 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: 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 : MS2

EDM/PDM/PLM service providers. Latest additions/modifications : Altair Engineering

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

International Symposium on Product Lifecycle Management
Bangalore, India. July 16-18, 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 - December 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.

Page 3
News
* Corporate *
Bentley announced that it has executed an agreement to acquire Infrasoft Corporation, a global software and services company with operations based in the United Kingdom. Details

LightWork Design announced the spin-off of its MachineWorks Division into a separate and independent company, MachineWorks Ltd. Details

Moldflow Corporation announced that the company has acquired substantially all of the assets and the ongoing operations of Controle Processus Industriels (CPI) for approximately $800,000 in cash. Details

Open Text Corporation and Eloquent announced that they have entered into a definitive acquisition agreement in which a wholly owned subsidiary of Open Text will acquire all of the issued and outstanding shares of Eloquent for cash consideration of up to US $6,720,000. Details

* Financial *
Geometric Software Solutions announced that consolidated net profit for the quarter ended December 2002 increased to Rs. 46.61 million, as compared to Rs. 37.39 million for the corresponding quarter last year, representing an increase of 24.6%. Details

 Autovue - from Cimmetry Systems, Inc.

Download AutoVue from Cimmetry Systems


* People *
Domain Systems announced Christopher Dress as Executive Vice President of Sales. Prior to joining Domain Systems, Chris served in various executive sales capacities with companies such as Sherpa Corporation where he held the position of Vice President of Sales, Agile Software serving as Vice President of Global Account Sales for the Medical Device Industry, and Precision Sales as Vice President and Principal. Details

Proficiency announced it has added Joey Dusina to its sales management team. Prior to joining Proficiency, Dusina served as National Executive Corporate Manager at MatrixOne Inc. and National Sales Executive at Cimlinc, Inc. Details

* Implementation *
Autodesk, Inc. announced the successful integration of Autodesk Inventor software with the College of Technology's Mechanical Design Technology program at Bowling Green State University in Bowling Green, OH. Details

Dassault Systemes, IBM, and EDAG Engineering + Design AG, announced the signature of a multi - million euro software contract covering company-wide design software migration at EDAG. Details

Mentor Graphics Corporation announced that Alcatel's Raleigh, N.C. location has chosen the Mentor Graphics Board Station PCB design suite to standardize its design flows and methodologies. Details

Moldflow Corporation announced that Polymer Technologies, Inc. is utilizing Moldflow Plastics Insight software to analyze a sophisticated part made out of a nickel-based super alloy for a leading aerospace manufacturer using a Metal Injection Molding Process. Details

Pilgrim Software Inc. announced that Black & Decker's Hardware and Home Improvement (HHI) division has added Pilgrim's Maintenance System module to its existing Pilgrim Q&MIS (Quality and Manufacturing Information System) Enterprise Quality Management solution. Details

SolidWorks announced that Crown Cork & Seal is using SolidWorks 3D CAD software to improve the machines that produce one-third of the world's food cans and one-fifth of its beverage cans. Details

Speed to Market, provider of Concerto multi-project scheduling software, announced that National Aeronautics and Space Administration has selected Speed to Market's Concerto Software to manage product development projects at its systems analysis branch. Details

Tecnomatix Technologies, Ltd. announced that electronic manufacturing services provider Victron Inc. has purchased US$200,000 of Tecnomatix eMPower solutions to lower production costs and increase quality and throughput. Details

Workgroup Technology Corporation (WTC), a division of SofTech, Inc., announced that packaging equipment supplier Douglas Machine Inc. has selected ProductCenter to replace a homegrown data management solution. Details

* Developments *
Aras Corporation announced the release of Project Innovator, a new module for the Innovator Application Suite. Details

 Myriad and Brava! WebKit from
 Informative Graphics Corporation.

More about Myriad and Brava! WebKit from Informative Graphics Corporation

Entrada Software, Inc., announced that the company's eChange Solutions document management product has met the qualifications of the Autodesk Inventor Certified Application Program for Autodesk Inventor 6 software. Details

MSC.Software Corp. announced the availability of MSC.visualNastran 4D 2003. Details

VX Corporation announced the next major version, Version 7, of its VX CAD/CAM software. Details

3D Systems Corp. announced it has released four new SL materials for its stereolithography (SLA ) systems. Details

* Relationships *
Cimage NovaSoft announced that it has joined the growing list of companies in the Star Partner Program of BEA Systems, Inc. as a One Star Member. Details

Formtek, Inc. announced a partnership with the Advanced Concepts Center (ACC). Details

Open Text Corporation announced a sales and distribution partnership with Informative Graphics Corporation to deliver visualization and collaboration capabilities through a plug-and-play integration of Brava! WebKit for Open Text's Livelink. Details

* Other *
ABAQUS, Inc. announced the new ABAQUS Teaching Edition program for qualified educational institutions. Details

Cadopolis.com announced the release of its 100th AutoCAD add-on. Details

Documentum announced that Business 2.0, a monthly business magazine has included Documentum in its third annual Essential Business Software Tool Kit, which is featured in its February 2003 issue. Details

Documentum announced that EContent magazine has chosen Documentum as one of 100 companies that matter most in the digital content industry. Details

EDS and the University of Memphis announced EDS has become a corporate partner in the University's FedEx Technology Institute and will contribute product lifecycle management (PLM) software, valued at $30.6 million, to the university. Details

FileNET Corporation announced that its FileNET Web Content Management (WCM) product has gained significant momentum in the higher education market with leading universities seeking to create robust Web sites to provide academic information resources and tools for student recruitment. Details

Framework Technologies announced the formation of the Framework Technologies Customer Advisory Council. Details

ICAM Technologies Corporation announced the introduction of training for Virtual Machine, ICAM's new graphic NC post-processing software. Details

INCAT announced it has combined the expertise of its automotive design and consulting groups to create an elite automotive product design curriculum for CATIA V5. Details

MSC.Software Corp. announced that the Company's petition to the Federal Trade Commission for approval of a proposed MSC.Nastran licensing transaction with EDS PLM Solutions Division has been posted for public comment. Details

PTC announced it is accepting entries for its eleventh annual PTC Awards competition, highlighting product development achievements using PTC solutions. Details

PTC announced that Pro/ENGINEER Wildfire was recognized by Desktop Engineering Magazine with its December Readers Choice Award. Details

Sun Microsystems announced that a group of leading IT vendors, consisting of Fujitsu Limited, Hitachi, Ltd., NEC Corp, Oracle Corp., Sonic Software, and Sun Microsystems, announced the publication of the Web Services Reliability (WS-Reliability) specification working draft. Details

USPRO announced a study on the savings from using STEP. Details

Page 4
Brief lines


Subscription information
To subscribe to 2PLM, fill in the subscription form or send an e-mail headed 'start 2PLM subscription' to pdm@2pdm.com

Subscription cost
Subscribers receive 2PLM free of charge.

Privacy policy
We understand and respect your desire for privacy. The information we ask for at subscription time is the minimum necessary to effectively fulfill your subscription and communicate with you if and when necessary. We do not release the information you provide us to third parties. In case of further questions, you can reach us at pdm@2pdm.com

Previous issues
Click here to access previous issues of 2PLM.

Limited time
We know you have a busy schedule. To reduce delivery and reading time, 2PLM has a simple format and concise content.

Termination of subscription
To terminate subscription, please send an e-mail headed 'stop 2PLM subscription' to pdm@2pdm.com

Sponsorship
2PLM is provided free of charge to its readers. Companies that share our objectives of promoting successful implementation of PLM systems and world-class product development performance may sponsor 2PLM. There is space for a maximum of one sponsor message per page, except on this 'Brief lines' page - where there is room for several short sponsor messages.

Publication frequency
2PLM is published approximately every two weeks.

Copyright
Copyright 2003 by John Stark. All rights reserved.

Links to pages on other sites
Please note we cannot control the content of pages that are not our own.

Permission to reproduce text or graphics
Applications for permission to reproduce part or parts of 2PLM (text or graphics) should be sent to pdm@2pdm.com

Permission to make 2PLM available within an organization
Applications for permission to make 2PLM available within a company or other organization (e.g. by internal mail, corporate Intranet, etc.) are usually accepted. Please send a request for permission to pdm@2pdm.com

Disclaimer
Information provided in 2PLM is intended solely to provide general guidance on matters of interest for the personal use of the reader, who accepts full responsibility for its use. Information is provided 'as is', with no guarantee of completeness, accuracy, or timeliness, and without warranty of any kind, express or implied, including, but not limited to, the warranties of performance, merchantability, and fitness for a particular purpose.

Nothing in 2PLM shall to any extent substitute for the independent investigations and the sound technical and business judgement of the reader. Technology, laws and regulations are continually changing, and can only be interpreted in the light of particular factual situations. The information in 2PLM does not constitute technological, business, legal, investment or consulting advice, and should only be used in conjunction with appropriate professional advice obtained by the reader from a suitably qualified professional who understands the reader's particular factual situation.