August 28 2006

John Stark Associates

Volume 9
Number 8

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 :
  • Engineering's Perfect Storm
  • Effective PLM Workshop in Kuala Lumpur, Malaysia
  • 2PDM, 2PLM, Sony Battery Recalls, PLM
* Engineering's Perfect Storm *
by David W. Paulson
There's a perfect storm brewing in the manufacturing world and it's centered over your engineering department. It's the result of years of focusing on the wrong thing by most manufacturers. Over the past three decades a lot of time and money has been spent chasing profits through initiatives focused on cost, quality, inventory, suppliers, manufacturing, offshoring, outsourcing, etc.

Yes, those initiatives have been beneficial, but it's the product that makes a company successful. However, it takes more than one great product to remain successful -- it takes a series of them. That is why superior product development performance is the number one indicator of financial performance over time.

In fact, a study by PricewaterhouseCoopers quantified that if a company generates 80% of their revenue from new products, they will double their market cap in five years...! Do you have any idea what percentage of your revenue is from new products? Or if your company even measures it?

Whether this perfect storm is good news or bad depends entirely on how you react to it. For some it will be an opportunity to propel their Engineering department to the forefront of the organization and give their company a sustainable competitive advantage. The unfortunate ones will be wiped out by this disturbance.

What is this perfect storm? It's the impending arrival of two things...
  • A focus on the product
  • New product development efficiencies
Since both of these systems are maturing rapidly it is easy to predict their impact will be both sudden and soon. One analyst said the impact will be the biggest to hit manufacturing in over a century! The lucky ones are already reaping the benefits.

 PDT Europe 2006

There have been at least a dozen initiatives in manufacturing in the last 30 years. A sample of these shows they were mainly focused on reducing cost.
  • JIT = Inventory focus to reduce cost
  • MRP = Materials focus to reduce cost
  • TQM = Quality focus to reduce cost and increase sales
  • ERP = Enterprise operations focus to decrease cost
  • China = Manufacturing focus to decrease cost
  • India = Engineering focus to decrease cost
The latest initiative for manufacturers is called PLM, or Product Lifecycle Management. And thankfully it looks like this...
  • PLM = Product focus to increase sales and market share
Why is a focus on the product a good thing? Because great products make great companies. Think about that. John Deere became famous because they made great tractors. They didn't make the tractor famous. There was already a big demand for tractors and a lot of companies were selling them. But John Deere made great ones. And those tractors made John Deere famous, not the other way around.

Rest assured that once your company figures this out, the Engineering department is going to be very busy. And this is where the other aspect of the perfect storm comes into play. Product development efficiencies are rapidly evolving to enable Engineering to get more done than ever before. Most companies are cutting development cycles by more than 25% with their initial efforts.

Besides the obvious, what is the hidden opportunity here? Think about the perception within your company of the relative importance of the Engineering department. Most companies think Engineering is an expensive black box -- you throw in a set of requirements and you hope a product comes out. It's a tragedy that it has gotten so bad that some companies are even willing to take the risk of outsourcing the entire engineering phase of their product development process. Think of the intellectual property that goes with it. To me it's a serious sign of their level of frustration.

The good news is companies are starting to realize the importance of the product. And no other department has more to do with the product than Engineering. So if your own Engineering department can see this as an opportunity and step up to the challenge, there is a good chance Engineering will gradually become the most respected department in the organization. And that's how it always should have been.

By the way, it was actually the plow that first made Deere famous. John Deere was in business for 81 years before they sold their first tractor. In 1837 John developed a plow that moist dirt didn't stick to and the rest is history.

The Author
David W. Paulson, the President of Accuer, Inc., can be contacted at Accuer helps manufacturers decrease their time-to-market by shortening the development cycle. Their services solve efficiency problems that plague engineering and impact other departments in the enterprise.

 Product Life live 2006

Product Life live 2006. Mainz. 07.11. - 08.11.2006

* Effective PLM Workshop in Kuala Lumpur, Malaysia *
by John Stark
Last week's Effective PLM Workshop in Kuala Lumpur showed just how widespread is the need and interest for PLM.

With a population of about 25 million, and a GNP of about $120 billion, Malaysia may not look, at first glance, like an obvious candidate for PLM. However, Manufacturing accounts for about 30% of the economy, Malaysia produced its first car, the Proton SAGA, in 1985, and Malaysia is a leading exporter of electronic and electrical goods and appliances. Many Global 2000 companies have development and manufacturing operations in Malaysia. PLM enables them to collaborate effectively with other parts of their companies in Europe, Japan and North America, maintaining control over development projects, new products and product data. And many Malaysian SMEs are being set up, with PLM infrastructure, to offer services to foreign-owned companies based in Malaysia and elsewhere.

The Effective PLM Workshop, hosted by Kavaq Business Intelligence, was held in central Kuala Lumpur, about 5 minutes from the Petronas Twin Towers, at 1483 feet the world's highest building when built. The Workshop ran for two days, with the first day looking at the basics of PLM and the current situation and trends, and the second day focused on defining the best steps for a company's PLM Initiative. The Workshop ran on both days from 9am to 5pm, allowing a wide range of PLM issues to be addressed, and providing plenty of time to answer questions from attendees.

The issues raised by attendees were similar to those raised at similar events in other countries. This is not surprising as there is little in PLM that is specific to a particular country, and much is common to different industries. In practice, the PLM opportunities and challenges faced by companies in different industries and countries are surprisingly similar. And, as one of the attendees pointed out, PLM is truly global and effective PLM is needed by every company developing, manufacturing and supporting products.

The Effective PLM Workshop in Malaysia confirmed our previous findings that a workshop such as the Next Steps For Your PLM Initiative Workshop is of use for companies in different countries, different industries and at different stages of PLM progress. It's a good way to inform a large group of people in a short time about the importance and wide scope of PLM, and to prepare the ground for a well-managed and successful PLM Initiative.

* 2PDM, 2PLM, Sony Battery Recalls, PLM *
People sometimes ask us if we can send them a particular back issue of 2PDM or 2PLM. We answer that all back issues can be accessed from the 2PLM archive page. The first issue of the ezine, originally called 2PDM, was published on August 31, 1998. The name '2PDM' showed that the focus was PDM (Product Data Management) and PDM (Product Development Management). PDM + PDM = 2PDM.

The April 8, 2002 issue was the first with the 2PLM name. An article from Mike Bryan in that issue finished with the following paragraph, "In these days of DASAMASA (Design Anywhere, Sell Anywhere, Manufacture Anywhere, Support Anywhere), I wonder if Anyone Anywhere really knows what we have. Perhaps this is one of the reasons there are still so many product recalls".

That was written in April 2002. This month, on August 14, 2006, Dell announced the voluntary recall of approximately 4.1 million Dell-branded lithium-ion batteries with cells manufactured by Sony. It's possible for these batteries to overheat, which could pose a risk of fire (details). The words "DELL" and "Made in Japan" or "Made in China" or "Battery cell made in Japan, Assembled in China" are printed on the back of the batteries. The Dell site shows 38 battery models that may be subject to recall. They have five digit codes such as 3K590 (details).

On August 24, 2006, Apple Computer announced it has determined that certain lithium-ion batteries containing cells manufactured by Sony Corporation of Japan pose a safety risk that may result in overheating under rare circumstances. Apple's Battery Exchange Program is detailed here. The batteries have a Battery model number such as A1061, and a 12-digit Battery serial number which starts with a five digit code such as 3K429. According to the U.S. Consumer Product Safety Commission about 1.8 million battery packs are involved (details).

Apple has previously recalled batteries that were sold worldwide from January 2004 through August 2004 (these batteries were manufactured by LG Chem, Ltd. of South Korea during the last week of December 2003, details), and batteries that were sold worldwide from October 2004 through May 2005 (these batteries were also manufactured by LG Chem, details).

According to a recently published PLM White Paper, '10 Critical PLM Facts Every Executive Should Know', PLM can help minimize product risks - very costly risks ranging from customer annoyance to injury or even death of product users that can occur if you lose control of your products. Details

Page 2

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, Enginuity, Hamilton Hall, ProSTEP AG.

PLM service providers. Latest additions/modifications : Accenture, Axian, Inc., Infosys Technologies, Product Lifecycle Management Australasia, The Ranal Group.

General Interest

Innovation Management

Engineering Change Management

Managing PDM in a changing environment

Principles of Good Product Development

Page 3
* Corporate *
Access Commerce announced it completed an increase in capital. Details

CENIT AG announced an increase in the Company's share capital. Details

FileNet Corp. and IBM Corp. announced that the two companies have entered into a definitive agreement for IBM to acquire FileNet in an all-cash transaction at a price of approximately $1.6 billion. Details

Open Text Corp. announced that it has allowed the earlier offer by its wholly-owned subsidiary to acquire shares of Hummingbird at a price of US$27.75 per share to lapse in accordance with its terms. Details

RAND Worldwide announced the acquisition of the Autodesk-related business of i-VEK Technology, located in Kuala Lumpur, Malaysia. Details

SAP AG announced it has made an investment in Questra Corp. The Questra application enables manufacturers to monitor remote devices and automatically generate service notifications. Details

* Financial *
Access Commerce reported second quarter 2006 revenue. Access Commerce revenue totaled 2.59M Euro in the second quarter of 2006, a 7% increase compared to 2.43M Euro over the same period in 2005. Details

Ansoft Corp. announced financial results for its first quarter of fiscal 2007 ended July 31, 2006. Revenue for the first quarter totaled $17.3 million, an increase of 17% compared to $14.8 million reported in the previous fiscal year's first quarter. Details

Arena Solutions announced that its second fiscal quarter of 2006, ending June 30, 2006, was the quarter the most successful in the company's history. This milestone represents an average quarter-over-quarter growth of 35 percent for the twelve months ending June 30, 2006. Details

Autodesk, Inc. reported, for the second quarter ended July 31, 2006, quarterly net revenues of $450 million, a 21 percent increase over $373 million reported in the second quarter of the prior year. Details

Cimatron Limited announced financial results for the second quarter ended June 30, 2006. Revenues for the second quarter of 2006 were $5.0 million, unchanged from the $5.0 million recorded in the second quarter of 2005. Details

Delcam announced that sales for the six months to 30 June 2006 were at the record level for a half-year at 13.5 million compared with 11.8 million during the first half of 2005, an increase of 14%. Details

Endeca announced that it achieved record revenues on 116 percent year-over-year revenue growth in the second quarter. Details

Hummingbird Ltd. reported financial and operating results for the third quarter ended June 30, 2006. Q3 sales were $66.0 million. Details

UGS Corp. announced second quarter 2006 results. Total revenue increased to US$296.7 million, 4 percent growth over the same period a year earlier. Details

Valor announced that Q2 results show revenue growth. Details

3D Systems Corp. reported its operating results for the second quarter of 2006. Q2 revenue for 2006 was $28.0 million, a 15% decrease from Q2 2005. Details

* People *
Right Hemisphere announced it has appointed former Actify CEO Randy Ochs to vice president of strategic alliances and channel development. Details

Seemage announced the appointment of Bruno Delahaye to the position of Vice President of Sales. Details

Spescom Software Inc. announced the appointment of Alan Kiraly as interim Chief Executive Officer. Details

Valor announced new external directors. The General Meeting of the Company unanimously resolved to appoint Mr. Amit Mantsur and Mrs. Ayelet Tal as Directors of the Company. Details

* Implementations *
BigMachines, Inc. announced that Emerson EGS has selected the BigMachines Lean Front-End platform. Details

Catalog Data Solutions announced that Gates Fluid Power division has adopted its CAD model download solutions. Details

Dassault Systemes announced that ENOVIA MatrixOne has refined its implementation with Agere Systems, consolidating 160 separate ENOVIA MatrixOne Synchronicity software installations, which span 17 design centers in six countries, into a common architecture and support system. Details

LMS International announced that LMS Test.Lab has been selected by Heuliez as the standard platform for its new in-house noise and vibration testing facility. Details

Intergraph Corp. announced Techint has chosen SmartPlant Enterprise as its core engineering, construction and customer delivery solution. Details

Intergraph Corp. announced that Keppel FELS has broadened its implementation of Intergraph's software technologies. Details

10 Critical PLM Facts Every Executive Should Know. Click Here To Download

Modultek announced that Metso Minerals has expanded its use of Aton. Details

Mystic Management Systems, Inc. announced that Thomas and Green, Ltd saves time and money in the Product Specification Management Process with DCS. Details

nCode announced Lockheed Martin recently awarded nCode a major contract for F-35 Joint Strike Fighter test data processing. Details

Open Text Corp. announced the World Anti-Doping Agency has chosen a document and records management software solution from Open Text. Details

RAND North America announced Coast Composites cut product design cycles by up to 50 percent with RAND's custom implementation of IBM and Dassault Systemes PLM Solutions. Details

Mentor Graphics Corp. announced that Haier IC has adopted the Mentor Graphics Eldo simulator as its standard SPICE simulator for analog circuit design. Details

Mentor Graphics Corp. announced it will supply Freescale Semiconductor with select EDA technologies. Details

SolidWorks Corp. announced that Factory Five Racing is using SolidWorks 3D CAD software to design racing car kits. Details

SolidWorks Corp. announced that Product Partners used SolidWorks 3D CAD software to develop a self-adjusting infrared smoke detector. Details

SolidWorks Corp. announced that Montech has standardized on SolidWorks software for all of its new designs. Details

SWORD announced it was appointed by Shenhua Ningxia Coal Group to deliver the Cimage Fusion product to manage the build and maintenance of their $1.5 billion Coal to Chemicals production plant. Details

Technia announced an agreement with Haglofs concerning the delivery of a PLM solution. Details

UGS Corp. announced that Transport Canada is in the process of implementing Teamcenter MRO software. Details

UGS announced that KALTENBACH Maschinenfabrik GmbH & Co. KG has selected Solid Edge 3D CAD software. Details

UGS announced that Radkersburger Metallwarenfabrik has selected NX CAM Express software. Details

UGS Corp. announced that the company helped Mazda Motor Corporation achieve improvements of production efficiency at its Hofu Plant with UGS' Tecnomatix digital manufacturing solution. Details

3D Systems Corp. announced FineLine Prototyping, Inc. purchased a Viper Pro SLA system. Details

3D Systems Corp. announced results of Sinterstation Pro SLS use by AdvaTech. Details

* Developments *
Actify Inc. announced that SpinFire Professional 8.0 is available in English, German, French, Japanese, Korean, and Traditional Chinese. Details

AVEVA announced the launch of AVEVA's Global 2.4. Details

CEI announced the launch of EnSight 8.2, EnSight Lite and EnVe 2.0. Details

CYA Technologies, Inc. announced the availability of CYA SmartRecovery 4.1 with the new Data Integrity Module. Details

Cyco Software announced it has teamed with a global alliance of its Solution Partners to promote the new Cyco AutoManager industry module for the Pharmaceutical industry. Details

DDI announced its CADDS to DXF translator for Windows. Details

DDI announced its DRW to DXF batch translator for Windows. Details

Delcam announced an integrated data repair module for shop-floor CAM users. Details

Eurostep announced it expanded the Share-A-space software platform with Business Adaptors and Development Tools, forming the Share-A-space Product Suite. Details

Federation Software announced the release of the Independent Platform Gateway Version 4.0. Details

Gerber Technology announced the launch of AccuNest Expert Edition. Details

MecSoft Corp. announced the release of their latest plug-in for Rhinoceros 3.0 - RhinoART. Details

NetRegulus Inc. announced enhancements to the NetRegulus NetRM Study solutions. Details

Oce announced new releases of PRISMA workflow software. Details

Rasterex Software announced the release of version R8.0 of their multi format viewer with support for AutoCAD 2007. Details

Right Hemisphere announced new releases of its PGM software that supports Google SketchUp and SketchUp Pro 5. Details

Seemage announced Version 3.2 is now available. Details

TDCI Inc. announced expansion of the company's BuyDesign Internet-based sales and configuration software solution. Details

Tech Soft 3D announced release 14 of their HOOPS 3D Application Framework. Details

VizUp Technology announced the release of version 2.2 of VizUp Reducer. Details

* Relationships *
Alibre, Inc. announced they are working with Instructables to provide free 3D CAD software along with step-by-step tutorials to the Do-It-Yourself community. Details

Alibre Inc. and announced an expansion of their partnership that will enable users of Alibre Design to access ThomasNet's CADRegister library of CAD models. Details

Appro announced that it has teamed with Fluent Inc., a wholly-owned subsidiary of ANSYS, Inc., to help IT managers address data center cooling issues. Details

DSM Somos announced an effort to connect OEMs with North American Rapid Prototyping service bureaus. Details

 PLM Europe Conference 2006

PLM Europe Conference 2006 - for the UGS User Nation

Engineous Software announced their partnership with Visual Collaboration Technologies, Inc. Details

GlobalSpec announced that it has further integrated its search capabilities within CMP Technology's Electronics Group's portfolio of over 20 Web sites. Details

Ingenuus Software Inc. announced that it entered into a partnership with Executive Smarts, LLC of Dallas, Texas to deliver process improvement and automation services to small and midsized companies. Details

Intergraph Corp. announced that it has become an IBM Business Partner. Details

Mechanical Simulation Corp. announced a partnership with TNO Automotive. Mechanical Simulation's CarSim software will link with TNO's Delft-Tyre using Simulink. Details

Primavera announced the launch of its Technology Partner Certification Program with VeriTest, a service of Lionbridge. Details

UGS Corp. announced an OEM agreement with Jilin University to integrate one-step formability analysis technology into NX software. Details

UGS Corp. announced a relationship with PING Ltd. Details

* Other *
Agile Software Corp. announced that Agile was selected by START-IT as a Hot Company in 2006. Details

Cadence Design Systems, Inc. and Realtek Semiconductor Corp. announced that they have collaborated to reduce the risk of functional errors. Details

Endeca announced that it has been awarded U.S. Patent No. 7,062,483, covering key extensions to the company's core information access innovations. Details

Engineering Documentation Control / Hardware CM seminar scheduled for Windsor Locks CT on October 3/4. Registration Brochure

 Product Lifecycle
 Management: Paradigm for 21st Century Product Realisation

Eurostep announced it has proposed a standard format for PLCS PLM Web Services to the PLCS OASIS Technical Committee. Details

Flomerics released a survey highlighting the conflict that often occurs between meeting thermal, electromagnetic compatibility and signal integrity design requirements in the development of new PCB designs. Details

FreeDesign, Inc. announced the release of a free 30-day trial of FreeDimension. Details

Imaginestics announced that it was awarded a National Science Foundation Small Business Innovative Research Phase II to further develop shape search technology. Details

Industry Week's John Teresko writes about 'Recapturing R&D Leadership'. Details

McLaren Software announced it was named a medalist in the applications category of the BCS IT Professional Awards. Details

OptiTex announced the setting up of a new center in India. Details

PROSTEP announced that it has expanded its global presence by opening a new office in Troy, MI. PROSTEP, Inc. will be headed by Andreas Schreiber - President & CEO and Paul W. Downing - Vice President. Details

Pure Insight announced a 'Lean Rapid and Profitable Product Development and New Product Portfolio Management' seminar led by Dr Robert Cooper on September 18-19 2006 at the Marriott Renaissance Heathrow, London. Download the seminar brochure here (530 kB PDF). To receive a 10% discount on this seminar, register here. On the Agenda & Fees Registration Page, enter 2PLM as the Code.

Pure Insight announced a 'Driving Predictable, Sustainable Innovation into NPD' seminar led by Bradford L Goldense and Donald M Stewart on November 15-16 2006 at the Marriott Renaissance Heathrow, London. Download the seminar brochure here (350 kB PDF). 2PLM subscribers are offered significant discounts on Pure Insight conferences and seminars. Register here. On the Agenda & Fees Registration Page, enter 2PLM as the Code.

SPEC announced a Linux/Unix version of SPECviewperf 9 graphics performance evaluation software has been posted for free downloading on the SPEC/GPC web site. Details

Stellent, Inc. announced Manufacturing Business Technology named it to the publication's "2006 Global 100," an annual listing of the world's top information technology providers to the manufacturing industry. Details

UGS Corp. announced continued momentum of its mid-market approach through UGS Velocity Series portfolio wins as well as increased channel expansion. Details

UGS Corp. announced in-kind software grants with a list price commercial value of $1 billion to 50 colleges and universities in the five states directly impacted by last year's Hurricanes Katrina and Rita - Alabama, Florida, Louisiana, Mississippi and Texas. UGS made the grants through its Global Opportunities in Product Lifecycle Management (GO PLM) initiative. Details

Valor Computerized Systems announced it is expanding and strengthening North American operations. Valor announced the appointment of Dan Weitzman as vice president of sales, North America, and Howard Rupprecht as director of marketing. Details

Page 4
Brief lines

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