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Reply to reason 1. What was discovered in the 1980's was not 'simplify - don't automate'. It was 'first simplify then automate'. Simplification only gives some of the gains - the rest come when technology and systems are applied to simplified processes. Reply to reason 2. CIM worked for some companies, but not for others. The companies it worked for knew what they were doing, and they understood and simplified their processes before applying computer systems. EDM/PDM is not a reincarnation of CIM. It does not focus on integrating computer systems, but on improving the quality, flow and use of engineering data in a company. It is linked to concurrent engineering, an activity that aims to simplify and improve engineering processes much as JIT simplified and improved manufacturing processes. Some companies will understand they have to clean up their processes before implementing EDM/PDM - others won't. Reply to reason 3. Culture changes such as TQM are only part of the answer. A company with TQM and good technology will be more competitive than a company with TQM and no technology. Companies that neglect technology will be losers. Computer systems and technology may well be difficult to manage, but this does not mean that they can not, or should not, be managed. Since in addition to being difficult to manage they are also extremely important, a lot of management time and effort needs to be invested in ensuring that they are used as effectively as possible. Reply to reason 4. There are a lot of acronyms in use. TQM, JIT, CAD and EDM/PDM are all acronyms. People who are instinctively opposed to all acronyms may not last long in management positions. They should try to overcome this type of automatic emotional reaction, and concentrate on thinking about the possible benefits of applying the technology behind the acronym. Reply to reason 5. Information Technology is the enabling component of corporate re-engineering. Any serious attempt at re-engineering will address functions that use engineering data. EDM/PDM will be a key technology in many re-engineering activities. Replies to reasons 6, 7 and 8. EDM/PDM helps reduce the time to introduce new products, and the cost of developing them. It helps reduce the cost of new products, and improve the quality of products and services. Companies pioneering EDM/PDM have found it can help reduce engineering costs by 15%, product development cycles by 25%, engineering change time by 30%, and the number of engineering changes by 40%. If it can do all this, it can really affect the bottom line, so it should be of interest to top management. Introduction of EDM/PDM implies understanding the processes that use engineering information. It only takes a few months to understand them. During these few months it becomes apparent that these processes have not been overhauled for years and can be made much more efficient - even without an EDM/PDM system. Improving the processes will reduce cycle times and reduce errors. This should translate into reduced costs and improved quality - achieved with very little investment. Once the processes have been improved, the introduction of an EDM/PDM system leads to a further reduction in cycle times, and an additional improvement in quality. The system can be used to make sure that the process does not slip back into the old, inefficient way of working. Replies to reasons 6, 7 and 8. EDM/PDM is not a low-level technical issue. It is an issue that impacts the company at all levels, from management strategy to data transfer. Unless management is involved with EDM/PDM and accepts responsibility for its success, it will become a low-level technical issue having little effect on company performance. If on the other hand, management does take responsibility, understands what EDM/PDM can do, and organizes resources to achieve the potential goals, then EDM/PDM will be an important high-level business issue. For EDM/PDM to achieve its goals, it has to be used cross-functionally. Only top management has the authority to ensure that EDM/PDM is used cross-functionally, i.e. in departments reporting to different managers. The successful use of EDM/PDM is only possible if top management has the vision and ability to influence the company to implement it. Replies to reasons 6, 7 and 8. Top managers will benefit in the long term from the introduction of EDM/PDM. Their companies will be more competitive, with reduced cycles, reduced costs and improved quality. Customers will be more satisfied with the company's products and services. Shareholders will be satisfied with management performance. Top managers need to learn more about new approaches such as EDM/PDM and concurrent engineering. Unless someone proposes and involves them in some educational or training sessions, it is unlikely that they will learn enough to become involved. Consequently the promoters of EDM/PDM should either prepare a management-oriented EDM/PDM training session for top managers, or arrange for them to attend a management-oriented EDM/PDM seminar or conference. Reply to reason 9. We know that the world is in a recession, and we have to reduce costs. At the beginning of the EDM/PDM project we propose using our own staff to improve our engineering process. Over 6 months we believe we can remove $x,000 costs. When we have done this, and demonstrated it to you, we would like to invest half this sum in further improvements. This would allow us to remove another $y,000 costs. When we have done this and demonstrated it to you, we would like to invest half this sum in further improvements. This step by step approach will minimize risk. Reply to reason 10. We understand the need for fast payback projects. We also believe it is best to work on a very limited number of projects. We have split our projects into two groups - continuous improvement projects and re-engineering projects. We have selected four continuous improvement projects. They are all short-term, low-cost, limited-benefit, low-risk, fast-payback projects. They are not revolutionary, but they will keep us moving forward. We do not expect the finance department to understand all the details of these projects, but as they are all short-term projects, it will be easy to judge their success or failure. Their success will pay for the re-engineering project. We have one re-engineering project. This is a major project, and it is expected to have a major effect on the business. Not surprisingly, it will take some time to carry out the project, and we do not believe it is realistic to talk of an 18-month payback. We believe the benefits will be massive, but it will take several years of hard work from people in many departments to achieve them. Through all these years top management will be heavily involved. Before we start these projects, we need to discuss them thoroughly, and make sure everybody, including top managers and finance managers, understands what we are doing. We would like to have consensus on the project's objectives and approach. In view of the importance of the project, and the importance of succeeding, we would like management and finance representatives in the project team. We are sure their involvement will help us achieve a breakthrough. Replies to reasons 11-22. One way to get some progress in this type of organization is to exploit top managers' desire to be with, and to behave like, other top people. A world-renowned management guru can be invited to present the vision of EDM/PDM to top management in a high-level presentation. However, there is always the danger that another management guru will manage to sell them another acronym - EDM/PDM will be taken off the list, and the new acronym will become the flavor of the month. Fortunately, in this type of company there are always a few extremely hard-working middle managers who devote their entire lives to the company. It is often only with the backing of this type of person that EDM/PDM can be introduced. Not surprisingly, top management accepts the overload and sacrifice of such people, who they see as a little mad, and in return, allows them to have an occasional idea of their own - 'a bee in their bonnet'. It may not be easy to convince such a hard-working, devoted lifelong servant of the company of a concept like EDM/PDM, but once this type of person becomes a believer, they will support the idea, and work for it, for many years. They will probably succeed because they know how to overcome all the obstacles that will be put in their way, and the general lethargy that surrounds them. They know which people can be counted on to do good work. They know how to organize the workload so that they do everything top management has told them to do, but still have resources to do what they believe to be right and important. |