September 12 2005
John Stark Associates
- Brief lines
* Welcome *
Welcome to this issue of 2PLM, an e-zine distributed every two weeks on a free subscription basis. This week's guest article, "PLM and ERP; who owns the data?" is from Menno Huijben of Sofigate Oy.
First though, a reader suggested that after the "Review of PLM in the First Half of 2005" articles in the July 11 and July 18 issues of 2PLM, we should define PLM as it is understood in 2005 and review the current status of PLM.
* A September 2005 Definition of PLM *
by John Stark
Product Lifecycle Management (PLM) is the business activity of managing a company's products all the way across the lifecycle in the most effective way.
The focus of PLM is the company's products. That distinguishes it from activities such as Enterprise Resource Planning (ERP), Supply Chain Management (SCM) and Customer Relationship Management (CRM). Whereas ERP, for example, is focused on achieving best use of enterprise resources, PLM is focused on maximizing the value of current and future products.
The objective of PLM is to improve company revenues and income by maximizing the value of the product portfolio. It is because of PLM's relentless focus on product value that PLM is taking hold on a global basis. A typical target for a PLM Initiative is to increase revenues from new and existing products by 30%.
There are five phases in a product's lifecycle: imagination; definition; realization; use/support/maintenance; retirement/disposal/recycling.
PLM manages the product all the way across its lifecycle, and all the way across the Extended Enterprise.
PLM is holistic, addressing numerous elements such as processes, data, people and applications. This distinguishes it from atomistic activities focused on one particular element, such as Product Data Management (PDM).
PLM provides visibility about what is happening to the product across the lifecycle, and gets products under control across the lifecycle.
PLM is a 'joined-up' paradigm. It joins up many previously separate and independent processes, disciplines, functions and applications - each of which, though addressing the same product, had its own vocabulary, rules, culture and language.
PLM extends and brings together previously separate activities such as Computer Aided Design (CAD), PDM, Configuration Management, Group Technology, Sustainable Development, Product Portfolio Management (PPM), Product Recall, and Recycling.
In the past, products were, to a certain extent, managed across the lifecycle, so many of the elements needed for PLM already exist within companies.
* September 2005 Status of PLM *
PLM is currently in its infancy. The first book about the holistic, full-lifecycle paradigm of PLM, Product Lifecycle Management : Paradigm for 21st Century Product Realisation, was only published last year, and it takes time for people and organizations to adjust to new paradigms.
The emergence of PLM leads vendors of application software that supports part, or parts, of the PLM activity to review how they can best serve existing and potential customers. This may lead them to modify their development and marketing strategies. Similarly, PLM may lead service providers to reposition and redefine their offerings.
But it is for manufacturing companies that the challenge of PLM will be greatest. To enable effective management of products across the lifecycle they need to put in place the corresponding 'management system for products'. As a first step, they must develop a PLM Vision and PLM Strategy that will allow them to achieve their PLM objectives. Developing and implementing a PLM Strategy to increase revenues from new and existing products by 30% will be hard work and time-consuming. CEO expectations of PLM are high. Few other initiatives propose, for example, to lift the revenues of a $1 billion company to $1.3 billion, but that is the promise of PLM.
To help companies with authoritative and unbiased support as they launch PLM Initiatives and implement PLM, we've developed Making Progress With PLM In 2005 (details). It answers frequent questions about PLM, builds a generic, customizable PLM Vision, and identifies typical activities in a PLM Initiative. The current version is available as a PDF file, a PowerPoint presentation, and telephone support. In response to feedback from users, the next update, Version 1.6, will include Excel templates to allow readers to position their current, "as-is", PLM maturity, and to calculate the ROI of a PLM initiative.
* PLM and ERP; who owns the data? *
by Menno Huijben
In view of the upcoming PLMIG event (PDF) about PLM and ERP, I was asked to introduce the subject. My first reaction, perhaps caused by some kind of PLM battle fatigue was, why me? But, after some coffee, I thought about all those Powerpoint pictures showing how PLM and ERP ought to relate to each other. Boxes with 'PLM' and 'ERP' drawn in every possible configuration, with lots of in- and out-going arrows, all depending on your definition of PLM and ERP, your Vendors and Consultants, and your company business model.
Tactically, the issue seems to boil down to describing how PDM systems integrate with MRP systems. Strategically though, we have an uncomfortable debate on how to position the two, all-encompassing, visions of ERP and PLM.
The realization of PLM, the 'cradle to grave' vision of product management, often starts by supporting the product development processes. You can stay in that part of the lifecycle with 'Requirement Management', 'Product Portfolio Management', etc. This is where many PLM system vendors now put effort.
In the PDM days we talked about the benefits of managing views such as 'As-Designed', 'As-Manufactured', 'As-Sold', etc. These were supposed to be captured in the PDM repository. But, I guess, most of us only succeeded in getting the 'As-Designed' view in place. After that, an export file with all relevant parts list information was pushed or pulled to the MRP system. The 'As-Manufactured' view lived on in the MRP system, and the other views became abstract concepts, or separate solutions - such as 'installed base' data bases.
But, sooner or later we need to get the product information down the lifecycle. And here we meet ERP on our path.
If we define PLM and ERP as systems, then we have to break them down into their components to understand how the product lifecycle can be managed - leading to those complex pictures with lots of boxes and arrows.
If we define PLM and ERP through their separate aspirations, then we have to deal with a range of complementary and conflicting elements. PLM sees the enterprise from a product perspective, whereas ERP sees it through assets, resources and finance. With these views, conflicts arise where cost and price information meet product information.
If we let PLM and ERP be defined by the enterprise software vendors, we will base our decisions on sourcing strategies like a 'one vendor' or 'best of breed' solution.
Data Ownership is the key
The only way to define, let's call it a PLM/ERP strategy, is by solving the issues of 'Data Ownership'. This is a difficult and tedious concept, not easily understood or accepted in the business world (where process owners and concept owners are the fashion). But, allocating data ownership means that each critical business object and its key attributes have an owner, not just organization-wise, but also system-wise. Start with an inventory of all relevant business objects and their key attributes: Parts, Products, Suppliers, Customers, Costs, Prices, Materials, ..
Of course, data ownership isn't static. During the product lifecycle, ownership will be transferred from organization to organization, from process to process, and from system to system. For example, a New Product Introduction process typically includes the transfer of product design data to Production for ramp-up activities. From a system point of view, the transition from PDM to ERP could mean a change of ownership of certain business objects. However, the NPI process owner is still in charge, the overall product responsibility is still with the Product Manager, while another department might get ownership to update certain product information. Sounds complex? - reason enough to spell it out in detail before fixing your PDM/ERP concepts.
PLM is not one system
Even though it is easy to talk about a PLM system, this will not necessarily be one physical, or even one logical, system. A 'PLM system' is an IT architecture owning all product-related information. It's likely to contain components from the 'ERP-system' (which is, likewise, not necessarily a single logical system).
The issue of ERP and PLM is not trivial, but rather than focusing on the system acronyms, take a good look at the data ownership in your organization. For more information about the upcoming PLMIG event (PDF) contact Roger Tempest.
Menno Huijben is a senior advisor at Sofigate Oy. Sofigate is dedicated to improving the performance of Information Management in organizations, hands-on and down-to-earth.
* PLM Benefits Reference Model *
The PLM Interest Group (PLMIG) announced its PLM Benefits Reference Model project (PDF). For more information about this comprehensive, accurate, and widely-accepted Reference Model, contact Roger Tempest.
Follow the link for books in the Product Lifecycle Management Library
Configuration Management . Product Data Management . Product Lifecycle Management
Autodesk .. CATIA .. Lean .. MicroStation .. Pro/ENGINEER .. Six Sigma .. Unigraphics
The World of Product Lifecycle Management
Follow the links for :
Vendors in the PLM World. Latest additions/modifications : Arena Solutions, Datastay, ENGINEERING.COM, Hamilton Hall, RuleStream Corp., SofTech, Inc., Spescom.
PLM service providers. Latest additions/modifications : Accuer, Inc., CENIT AG Systemhaus, DataCore Technology, PROSTEP, Scandent Solutions.
Engineering Change Management
Managing PDM in a changing environment
Principles of Good Product Development
* Corporate *
CollabNet announced that it has closed a $9.5 million round of private financing. Details
Metabula Ltd announced it has completed the purchase of specific assets and rights from Quillion Ltd including the Quillion DataManage product suite. Details
RAND Worldwide announced it raised $8.25 million through private placement equity. Details
Vero International announced that it has acquired SMIRTware, Inc. Details
* Financial *
Bentley Systems, Inc. announced the release of its June 2005 Annual Report. Details
Open Text Corp. announced unaudited financial results for its fourth quarter and fiscal year that ended June 30, 2005. Total revenue for Q4 was $109.4 million. Details
SofTech, Inc. announced results for its fourth quarter and fiscal year 2005. Revenue for fiscal year 2005 was about $12.1 million. Details
Surfware Inc. reported a 42% increase in August 2005 net revenues compared to the same period last year. Details
* People *
Adobe Systems Inc. announced the appointment of Ned Barnholt to the company's board of directors. Details
Intergraph announced that Anthony Colaluca will join the Company as CFO. Details
* Implementations *
Cadence Design Systems, Inc. announced that SensorDynamics deployed the Cadence Virtuoso custom design platform. Details
Cadence Design Systems, Inc. announced that Elan Microelectronics Corp. is using the Cadence Encounter Conformal Custom equivalence checking solution. Details
Centric Software, Inc. announced that The Coleman Company, Inc. selected Centric's OpenPLM solution. Details
Concurrent Systems Inc Ltd. announced Microlights Ltd. have implemented DesignDataManager as their company-wide PDM solution. Details
Dassault Systemes announced that Forsmark Kraftgrupp AB will be implementing enterprise SMARTEAM Product Lifecycle Management (PLM) at its site in Roslagen, Sweden. Details
Elysium, Inc. announced Magna Closures is using CADportal. Details
Eurostep announced that Scania has chosen Share-A-space. Details
E2open announced that Etron Technology Inc. is using E2open to integrate with corporations using RosettaNet Partner Interface Processes. Details
Fluent announced that WilliamsF1 signed a new deal with Fluent Europe Ltd. Details
ICEM Ltd. announced that its ICEM Surf software suite played a role in helping the Nissan Design Centre. Details
Kubotek Corp. announced that KeyCreator is used extensively by Pratt & Whitney-Paton. Details
Leica Geosystems announced the delivery of its Leica T-Probe CMM solution and LTD800 Laser Tracker to the NASA Marshall Space Flight Center. Details
MSC.Software Corp. announced that Adaptive Technologies Inc. invested in MSC.Software's suite of integrated solutions. Details
MSC.Software Corp. announced that FAW-Volkswagen has invested in MSC.Nastran and MSC.ADAMS. Details
Noran Engineering, Inc. announced that bd Systems selected NEiNastran. Details
Open CASCADE SA announced a new customer success with the Mahr Multisensor Company. Details
PTC announced that Primax has deployed PTC Windchill to provide support for environmental regulatory compliance requirements. Details
PTC announced that AVIC I Commercial Aircraft Co. Ltd. has adopted Windchill as its collaboration platform for the development of the ARJ21 regional jet. Details
SolidWorks Corp. announced that Bosch Rexroth Corp.'s Linear Motion and Assembly Technologies Group is using SolidWorks' 3D PartStream.NET service. Details
SolidWorks Corp. announced that Universal Air Filter is using the SolidWorks 3D PartStream.NET service to create an interactive online storefront. Details
SolidWorks Corp. announced that National Oilwell Varco and Andergauge Ltd. are deploying SolidWorks software. Details
UGS Corp. announced Pilatus Aircraft Ltd. has commissioned UGS to proceed with implementing Teamcenter. Details
* Developments *
ALGOR announced its new software release, V18. Details
ANSYS, Inc. announced the availability of ASAS 14 and AQWA 5.6. Details
Ashlar-Vellum announced the release of version 7 of Cobalt, Xenon and Argon. Details
AVEVA announced the launch of its Laser model Interface module for PDMS. Details
Axiom announced the release of a new version of Title Block Manager. Details
BEASY announced Version 10 of its software for modelling corrosion and corrosion-related electric and magnetic fields. Details
CAD Schroer GmbH announced MEDUSA4 Rev. 2 Details
CCE announced that its CATIA V5 Interoperability Solutions have been updated to support CATIA V5 R15. Details
Cimatron Ltd. announced the release of version 7.0 of CimatronE. Details
Cimmetry Systems Corp. announced that its AutoVue integration has achieved "Powered by SAP NetWeaver" certification. Details
Concurrent Systems Inc Ltd. announced the latest version of DesignDataManager (DDM 2005.2.0). Details
Datranet announced Fusion-DX and Fusion-DMZ web portal implementation at Ricardo. Details
Delcam announced the latest release of the CopyCAD reverse engineering program. Details
Federation Software announced the release of its Value Chain Connector for Teamcenter. Details
Geodetic Systems, Inc. announced their V-STARS/E4X Digital Photogrammetry system. Details
GiveMePower Corp. announced final beta testing of its PowerCAD SiteMaster 2 solution. Details
IDEAL announced the new Large Format Productivity Suite. Details
Informative Graphics Corp. announced version 6.0 of its ProjectDox project communication and collaboration software. Details
The IntelliCAD Technology Consortium announced IntelliCAD 6.1. Details
IQMS announced the development of XML eAPQP capabilities for its EnterpriseIQ ERP software solution. Details
KollabNet announced that KollabNet Editor 2005 now offers a facility for supporting proposal preparation - Business Rules Validation. Details
Lattice3D announced the release of a new XVL Studio family of products. Details
Mastercam announced the release of Mastercam X. Details
Mentor Graphics Corp. announced that the Calibre physical verification and extraction tools are integrated into the Cadence design creation environment. Details
Mentor Graphics Corp. announced its support for 64-bit Linux platforms. Details
NavisWorks Ltd. announced the latest release of NavisWorks JetStream. Details
Noesis Solutions announced the release of OPTIMUS 5.1. Details
Oracle announced the availability of Oracle Collaboration Suite 10g. Details
QuadriSpace Corp. announced U3D support with Notes3D. Details
ReShape, Inc. announced the release of PD Builder 5.2, its solution enabling companies to encapsulate, automate and deploy design flows. Details
Serena Software, Inc. announced the general availability of Serena RTM 5.6. Details
Visiprise, Inc. announced it has achieved "Powered by SAP NetWeaver" certification for Visiprise Manufacturing 3.2. Details
Zuken announced it launched Circuit Adviser to the western market. Details
* Relationships *
Actify Inc. announced reseller agreements with SYSTEMS 3, PRO NORDIC Technology AB and ABGAM-GROUP. Details
Agile Software Corp. announced a partnership with PRTM. Details
Cadpo announced Lotus Engineering as the newest Certified Automotive CAD Delivery Partner in Asia. Details
CoCreate Software, Inc. announced that Virtual Services has joined CoCreate's partner program. Details
PROSTEP and AutoWeb announced a solution to improve the Exchange of Intellectual Property. Details
think3, Inc. announced a collaboration with Cadenas. Details
VISTAGY, Inc. and ANSYS, Inc. announced they have partnered to integrate FiberSIM and ANSYS. Details
Z Corp. announced a reseller partnership with GoEngineer Inc. Details
* Other *
Alias announced that it has opened a new Custom Development Center in Tokyo, Japan. Details
Ariba, Inc. announced it has been recognized as a leading provider of EIPP solutions. Details
Artemis International announced the company has established a direct operation in Shanghai, China. Details
Cadence Design Systems, Inc. announced support of OpenAccess 2.2. Details
Dassault Systemes announced a demonstration of 3D XML at AutoTech 2005. Details
Ecma International announced the adoption of ECMA-363, 2nd edition. The standard defines a Universal 3D (U3D) file format which streamlines large, complex 3D CAD datasets. Details
eQuorum Corp. announced the award by the General Services Administration of a Schedule 70 Multiple Award Schedule Contract. Details
MRO Software, Inc. announced it was positioned in the leader's quadrant in Gartner's Magic Quadrant for the Energy Utility Work and Asset Management Systems Market, 2005. Details
Proficiency announced that it was named as a "Company to Keep An Eye On" by Start magazine. Details
QAD Inc. announced it has earned one of two 2004 Corporate Outstanding Achievement Awards bestowed by North America's Automotive Industry Action Group. Details
RAND Worldwide announced it exceeded 5,000 Pro/ENGINEER Wildfire users. Details
UGS Corp. announced its NX software demonstrated a performance increase of up to 50 percent running on new multi-core processors. Details
Visiprise, Inc. announced that President and CEO Sean McCloskey has earned a spot on CATALYST magazine's "Top 50 Entrepreneurs" list. Details
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