May 8 2006

2PLM John Stark Associates

Volume 9 Number 1

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

* Welcome * Welcome to 2PLM, an e-zine distributed about every two weeks. This issue includes : PLM State of the Art Report - May 2006 edition Updated! Top 10 PLM Pitfalls PLM in the Food Industry Eleven Revenue-Increasing Benefits of PLM The Evolving Definition of PLM Product Development Innovation Summit * PLM State of the Art Report - May 2006 edition * John Stark Associates announced the release of the PLM State of the Art May 2006 Report. This is a concise, 103-page document describing the State of the Art of Product Lifecycle Management in May 2006. Details Responding to feedback from readers of the January 2006 edition of the report, the May edition includes two new chapters: State of the Art PLM Vision Best Practice PLM Initiative In addition, in response to feedback from readers of the January edition, the May 2006 edition comes with an option for one hour of support by telephone. The report describes the latest knowledge and experience in many areas important for PLM Initiatives. It helps readers save time and avoid reinventing the wheel. * Updated! Top 10 PLM Pitfalls * We're pleased to announce an update to the 'Top 10 PLM Pitfalls to Avoid' white paper summary. This complimentary paper was produced by John Stark Associates and SofTech, Inc. at the end of 2005 for attendees of the John Stark Associates/SofTech PLM Web series. We've had a surprising response to this paper. Over 1,000 companies have since downloaded or requested copies. In addition, it has been reprinted in a number of publications, called "irresistibly practical" and sparked a number of discussion threads. The Top 10 format is a quick read representing our experience helping companies through successful PLM initiatives. We believe there lies its appeal, its practicality helping PLM Initiative Managers and Teams to more easily recognize these potential hazards and steer around them. You'll notice that compared to the first version of the Pitfalls, a few pitfalls have been dropped, with new ones added or modified, and the order shifting somewhat. This is not unexpected. As PLM evolves, experience increases. Here's the updated list. Top 10 PLM Pitfalls 1.  Not including executive education as a top priority of your PLM program planning 2.  Not defining and communicating critical PLM success factors 3.  Not measuring your PLM success 4.  Not promoting your PLM success 5.  Proceeding before everyone is educated and agrees 6.  Thinking PLM is only an engineering enterprise 7.  Not planning to overcome setbacks and rejection 8.  Proceeding without a sense of reality 9.  Not considering risk avoidance as a key factor for PLM 10. Thinking you can hold off on PLM a little longer Download a free copy of this new White Paper here. * PLM and the Food Industry * Dr Mark Francis and John Stark discussed PLM and its implications for the food industry at an Oracle Executive Breakfast Briefing at the Cafe Royale, London on 27th April, 2006. Dr Francis, a Senior Research Associate at the Lean Enterprise Research Centre (LERC) at Cardiff Business School, presented findings from two applied research projects that involved retailers Tesco and ASDA. The key general learning points and recommendations that emerged from these projects were: Effective processes don't just evolve - they must be 'intelligently' designed and managed Manage by fact, and plan around process capability One process tool/ pathway does not fit all development projects. Consider degree of novelty of the innovation project and technology-push vs. need-pull type development routes Standardize your processes (formally documented, using a stage-gate approach with the maximum level of concurrency) Elevate the status of your lower (incremental) innovation projects - they are your 'bread and butter'! Aim to maximize new product flow and velocity through the process - and measure the average and dispersion of cycle time to identify how well the process is controlled Make the buck stop with a named individual for each or all stages of the process Don't do R&D (discovery) and NPD (development) in the same process - they are quite different things! Individually develop products in product ranges - just launch them as [range] batches for maximum visual impact on the shelf Always conduct a process postmortem review - and feed back the learning to a continuous improvement team to update the standard process For more information, please contact Mark Francis. For copies of the presentations, please contact Charles Lennard of Oracle. The recent Oracle Internet Seminars: Bringing Winning Products to Market Faster Managing Stage Gate Processes in New Product Development can be viewed here. * Eleven Revenue-Increasing Benefits of PLM * The following text includes one of the dozens of useful lists in Product Lifecycle Management: Paradigm for 21st century Product Realization. Details Another way to understand the benefits of PLM is to focus on the revenue increases it can provide. Examples include: increase the number of customers by developing and supporting new products increase the product price paid by customers. Increasing product quality enables justifiable price increases. New functions and features can justify higher prices. Being first to market enables pricing premiums. increase the range of products that customers can buy, e.g., by improving product structure management, PLM enables more customer-specific variants. It enables companies to expand the size of their product portfolios. It enables breakthrough products that can create new markets increase the number of products of a particular type that a customer buys, e.g., by increasing product quality, PLM allows customers to dispense with second sourcing increase the percentage of customers re-ordering, e.g., by increasing product and service quality increase the frequency with which customers buy, e.g., by getting products to market faster and more frequently increase the service price paid by customers, e.g., by using PLM to improve the quality of existing services increase the range of services that customers buy, e.g., by using PLM to develop and support additional services get customers to pay sooner, e.g., by developing and delivering products faster increase sales by introducing innovative new products increase sales by lengthening the life of a product, e.g., make more frequent product enhancements, product derivatives, niche offerings, and add-ons to product platforms. Offer simple enhancements to mature products * The Evolving Definition of PLM * PLM is the business activity of managing a company's products all the way across their lifecycles, from the very first idea for a product all the way through until it is retired and disposed of, in the most effective way. PLM is the activity of managing a product throughout its lifecycle - 'from cradle to grave' - making sure that everything works well with the product and making sure the product makes good money for the company. The objectives of PLM are to increase product revenues, reduce product-related costs, and maximize the value of the product portfolio. From : Making Progress with PLM (2005) PLM is the activity of managing a company's products all the way across their lifecycles in the most effective way. From : Product Lifecycle Management : Paradigm for 21st century Product Realisation (2004) * Product Development Innovation Summit * Goldense Group, Inc. announced its R&D -- Product Development Innovation Summit is scheduled for June 24-26, 2006 in metro Boston. Details

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Reference Section 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 .. UGS The World of Product Lifecycle Management Follow the links for : Vendors in the PLM World. Latest additions/modifications : Artemis International Solutions Corporation, Coastal Logic, Inc., ENGINEERING.COM, Hamilton Hall. PLM service providers. Latest additions/modifications : Accenture, Axian, Inc., Infosys Technologies, Kalypso Partners, Product Lifecycle Management Australasia, xLM Solutions, xPLM Solution. General Interest Innovation Management Engineering Change Management Managing PDM in a changing environment Principles of Good Product Development Making Progress With PLM The Making Progress With PLM Manual helps companies launch PLM Initiatives, develop PLM visions and strategies, and implement PLM plans. It supports PLM VPs, PLM Project Leaders, PDM Managers, IS Managers, CAD Managers and others faced with the many questions, problems, challenges and opportunities of PLM - and looking for the best way forward. Making Progress With PLM

Page 3 News

* Corporate * ANSYS, Inc. and Fluent Inc. announced that ANSYS has completed its acquisition of Fluent. Details CADD Edge, Inc. announced that it has completed its acquisition of Paradigm Design Associates' SolidWorks-related assets. Details CAXA announced the merger of AcePilot, the e-Business Division of Asiatek. Details Primavera Systems, Inc. announced that Francisco Partners and Insight Venture Partners have each acquired a substantial interest in the company. Details PTC announced it has signed a definitive agreement to acquire Mathsoft Engineering & Education, Inc. for $63.25 million in cash. Mathsoft is the provider of Mathcad, software that helps engineering organizations create, automate, document and reuse engineering calculations critical to the product development process, as well as other mathematics-driven processes. Details SolidWorks Corp. announced it has acquired GCS Scandinavia AB, developer of Conisio enterprise product data management software. Details Zuken announced it has acquired the German electrical/electronic Computer Aided Engineering software design company, CIM-Team GmbH. Details * Financial * ANSYS, Inc. announced first quarter operating results. Total revenue was $46.0 million, as compared to $37.6 million in the first quarter of 2005. Details Cadence Design Systems, Inc. reported first quarter 2006 revenue of $328 million, an increase of 12 percent over the $293 million reported for the same period in 2005. Details FileNet Corp. announced financial results for its first quarter ended March 31, 2006. Total revenues were $108.9 million compared to $100.0 million for the same period in 2005. Details Geometric Software announced revenues for the year ended March 1, 2006 increased by 33%. Details Intergraph Corp. announced financial results for its first quarter ended March 31, 2006. Revenue for the quarter was $139.0 million. Details MatrixOne, Inc. issued financial results for the third fiscal quarter ended April 1, 2006. Total revenues were $43.7 million, compared to $27.0 million in the same period last year. Details Mentor Graphics Corp. announced first quarter revenue of $176.3 million, up 7% from the prior year first quarter. Details Moldflow Corp. announced third quarter of fiscal 2006 revenue was $16.3 million, compared to $15.8 million for Q3 of last fiscal year. Details Top 10 PLM Pitfalls To Avoid - NEWLY UPDATED! PTC reported revenue of $200.2 million for the second fiscal quarter ended April 1, 2006, up 14% from $176.1 million for the same period last year. Total Desktop Solutions revenue for the second quarter was $131.8 million, up 6% from the same period last year. Total Enterprise Solutions revenue was $68.4 million, representing 33% year-over-year growth. Details Stratasys, Inc. announced first quarter financial results. Revenues rose 18% to $22.2 million for the first quarter ended March 31, 2006. Details 3D Systems Corp. reported first quarter of 2006 revenue grew to $33.5 million, a 10% increase over the 2005 period. Details * People * Gerber Technology announced the appointment of Stefanie Kooper-Bertram to the position of Regional Director, Central Europe Details i2 Technologies announced it has appointed Paul Chermak SVP of the company's High Technology Industry Group. Details Lectra announced the appointment of David Rode as President of Lectra USA, Inc. Details * Implementations * Altair Engineering, Inc. announced that Magna Powertrain, New Process Gear, has selected Altair HyperWorks technology suite. Details Bentley Systems, Inc. announced that BSEE has chosen Bentley's DigitalPlant. Details Cadence Design Systems, Inc. announced that Fastrack Design, Inc. is using Cadence Fire & Ice QX cell-based extraction technology. Details Cadence Design Systems, Inc. announced it has extended its product-segmentation strategy to the Cadence Allegro system interconnect design platform. Details Coastal Logic, Inc. announced that Smith & Nephew has deployed its batch printing solution for their enterprise-wide shop floor printing. Details Dassault Systemes and IBM announced that Herbert Olbrich has chosen CATIA V5 for digital product development. Details Fluent announced partner status with PSA Peugeot Citroen for fluid flow simulations. Details Informative Graphics Corp. announced that Ellerbe Becket has selected IGC's ProjectDox communication and collaboration platform. Details MasterControl Inc. announced that Touchdown Technologies has selected the MasterControl quality suite to facilitate compliance with ISO 9001 standards. Details The MathWorks announced that Bell Helicopter Textron Inc. is using MATLAB and Simulink to streamline flight control system development. Details MatrixOne, Inc. announced that Recreational Equipment, Inc. has standardized on the MatrixOne Accelerator for Apparel Design and Development. Details Mentor Graphics Corp. announced its 0-In Clock-Domain Crossing technology was used in the design of Sun Microsystems' UltraSPARC T1 processor. Details Oracle Corp. announced that EMS provider GDM Electronics has gone live on the Oracle Product Lifecycle Management application. Details Video Testimonial PTC announced that Cheng Loong Corp. will use Windchill solutions for a Radio Frequency Identification (RFID) Paper Container Design and Testing Platform. Details SofTech, Inc. announced that it has been awarded a contract for software and consulting services to implement SofTech's ProductCenter PLM solution at NASA Langley Research Center (LARC) in Hampton, Virginia. Details Spescom Software, Inc. announced that JEA has selected Spescom's eB DM suite. Details Technia announced new contracts from three leading Nordic telecommunications companies. Details UGS Corp. announced that Ford Motor Company has deployed UGS in-vehicle software data management solution on 57 worldwide vehicle programs. Details VX Corp. announced Royal Goedewaagen adopted VX CAD/CAM software. Details * Developments * Actify Inc. announced that SpinFire Professional 8.0 is now available. Details Altium Limited announced the latest release of the Altium Designer Viewer Edition. Details Camstar announced the release of Medical Device Suite v4.1. Details CD-adapco announced the release of STAR-Design V4.04. Details DP Technology announced that ESPRIT 2006 received Autodesk Inventor Series 11 certification. Details Engineous Software announced FIPER 2.0. Details Geomagic announced support for the Steinbichler and Leica T-Scan hand-held laser scanners. Details Gerber Technology announced the release of AccuMark version 8.2. Details Granta Design announced GRANTA MI 1.1. Details IDEAL announced the addition of two new scanners, manufactured by Contex, to its product line. These 'green' scanners are certified 'Energy Star Compliant' by the US EPA. Details INCAT announced the launch of its Realize brand of implementations for Product Lifecycle Management (PLM) systems. Details INUS Technology announced rapidformXO Redesign. Details IQMS announced the availability of the PLM module for its EnterpriseIQ ERP software. Details Metris announced the launch of ModelMaker D. Details Mystic Management Systems, Inc. announced the availability of its new Corrective and Preventative Action software application, ensurCAPA. Details Mystic Management Systems, Inc. announced the availability of its web based document control and product lifecycle management solutions, ensurDCS and ensurPLM. Details PTC announced the availability of the integration between Windchill 8.0 and Arbortext 5.2. Details SensAble Technologies, Inc. announced version 9.0 of FreeForm. Details SensAble Technologies, Inc. announced the FreeForm Modeling system with the PHANTOM Omni haptic device is now shipping. Details UGS Corp. announced Version 9.2 of Femap software. Details VX Corp. announced availability of the new network of ribs tool. Details VX Corp. announced 3D modeling support for True Type Fonts. Details VX Corp. announced a function that lets product designers import and use digital images for defining 3D models. Details 3D Systems Corp. announced the immediate availability of Accura 60 Plastic. Details 3D Systems Corp. introduced a new suite of software, 3DView, 3DManage and 3DPrint, for its stereolithography systems, selective laser sintering systems and InVision 3-D printers. Details 3D Systems Corp. announced the availability of VisiJet LD100 materials in new colors for its InVision LD Desktop 3-D printer. Details * Relationships * Agile Software Corp. announced the expansion of its European channel programme. Details Cadence Design Systems, Inc. and PDF Solutions, Inc. announced their intent to collaborate on Design-for-Manufacturability (DFM) technology and products. Details Cadence Design Systems, Inc. announced that it has exceeded the goals set for testability and manufacturing diagnostics for the Cell Broadband Engine with the Cadence Encounter Test product line. Details Delcam announced that FARO Technologies, Inc. has specified PowerINSPECT for the FARO PowerGAGE. Details LMS International and the Tongji University Automotive College announced a technology cooperation agreement that established the 'Tongji - LMS Automotive NVH & Durability Technology Center' at Tongji University in Shanghai. Details Missler Software and WFL announced an agreement to better support companies equipped with WFL machines. Details MRO Software, Inc. and Bellwood Systems announced that Bellwood Systems has been designated MRO Software's official Center of Competence for Russia and the Commonwealth of Independent States. Details Open Text Corp. announced it joined SAP AG's new Enterprise Services (ES) Community. Details PTC announced it attained Gold Certified status in the Microsoft Partner Program. Details UGS Corp. announced Ford Motor Company honored it with the Ford Q1 Certification. Details UGS Corp. announced that General Motors selected UGS as a 2005 Supplier of the Year. Details UGS Corp. and Siemens A&D Group announced plans to deliver a software solution that will enable companies to design and program production environments for products that are still in development. Details UGS Corp. and Microsoft Corp. announced an alliance to deliver the full suite of UGS software solutions on the Microsoft platform. Details 3D Systems announced it will collaborate with Symyx Technologies on advanced materials for rapid prototyping and manufacturing. Details * Other * Autodesk, Inc. announced an $8 million donation of software and training resources. Details Centric Software, Inc. announced a new patent that enables a virtual 3D presentation of data similar to a product development program office or "war room" in the physical world. Details PLM Summit Design Power, Inc. announced that the largest user of its engineering/design automation technology was acquired for $370 million. Details InnovMetric Software Inc. announced that over the two-year period from April 1, 2004, to March 31, 2006, annualized sales of PolyWorks licenses and training services have jumped by 111%. Details MatrixOne, Inc. announced that it received high marks in seven categories in Apparel magazine's Software Scorecard. Details Nemetschek North America announced that the VectorWorks Design Series is compatible with content in the new Google SketchUp 3D Warehouse. Details Nemetschek North America announced several new training workbooks for VectorWorks 12. Details The PLM Interest Group announced it published the results of its PLM Business Reference Model project's London and Boston Workshops. Details

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Subscription information The subscription fee for 2PLM in 2006 is US$ 45 (or 40 Euros) for subscribers from manufacturing and engineering companies, companies providing PLM products and services, research organizations, government departments, etc. ; US$ 36 (or 32 Euros) for subscribers at academic organizations, such as universities, colleges, schools, etc. Payment is voluntary. Subscription details at www.johnstark.com/plm.html 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 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 Companies that share the objective of promoting successful implementation of PLM and world-class product development and support performance may sponsor 2PLM. Banner ad insertion is also possible. More information from pdm@2pdm.com. Publication frequency 2PLM is published approximately every two weeks. Copyright Copyright 2006 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 Your responsibility 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.