Product Lifecycle Management (Volume 3): The Executive Summary
By John Stark
()
About this ebook
This third volume provides an executive overview of Product Lifecycle Management (PLM), and details the roles that executives play in PLM initiatives. This book also explains why PLM emerged, why it is so important, the principles of PLM strategy, and the typical steps in a PLM initiative. Throughout the book, the author presents examples and cases studies, demonstrating the various roles of executives in PLM initiatives. The coverage is informed by John Stark’s experience of working with companies on more than 100 PLM initiatives.
The present book broadens the reader’s understanding of PLM, nurturing the skills needed to implement PLM successfully and to achieve world-class product performance across the product lifecycle. The book provides the executive reader with a thorough explanation of PLM, and the required knowledge to lead or participate in a PLM Initiative.
John Stark
Author John Stark is a writer and editor who has been on the mastheads of People magazine, Martha Stewart's Body + Soul, Reader's Digest Walking magazine, and Cook's Illustrated. His work has appeared in the New York Times' "Sunday Arts & Leisure," Newsday, and the San Francisco Chronicle, among other publications. He is copywriter and founder of Three Way Designs, a greeting card company that sells nationally. He lives in Boston.
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Product Lifecycle Management (Volume 3) - John Stark
© Springer International Publishing AG 2018
John StarkProduct Lifecycle Management (Volume 3): The Executive SummaryDecision Engineeringhttps://doi.org/10.1007/978-3-319-72236-8_1
1. Introduction to the Executive Summary
John Stark¹
(1)
Geneva, Switzerland
I wrote this third volume of the Product Lifecycle Management (PLM) book at the suggestion of some readers of the two previous volumes. They told me that these volumes had become their companies’ reference books for PLM . However, they also said that many of the executives in their companies still didn’t understand fully the importance of PLM . They suggested it would be good to have a short companion volume to help executives understand the essentials of PLM . They knew that the benefits of PLM , such as cutting costs across the product lifecycle , improving innovation, and increasing product and service revenues, were of interest to their executives. And a third volume, addressed to executives, would give them the knowledge and understanding to more fully lead or participate in a PLM Initiative .
I’ve worked on PLM with more than 100 companies. The executives I’ve worked with in these companies have had a wide range of understanding of PLM . Some have had a deep understanding of PLM , and have led successful PLM Initiatives . But others have seemed somewhat unaware of what PLM is, and what to do about it. Perhaps that’s not surprising as PLM is relatively new. PLM emerged in 2001 as a result of huge changes in the global environment for products in the last quarter of the 20th century. And, in my experience , it takes several decades for new approaches to become fully understood and applied in industry.
Another factor leading to a lack of understanding among executives may be that PLM has a wide scope . Executives are busy, have their priorities, and don’t have time to go into depth and find out in detail about everything new. For that reason, this book has been purposely kept short.
PLM is the business activity of managing, in the most effective way, 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 many companies that I’ve worked with, activities in the scope of PLM have accounted for between 25 and 50% of the company. In other words, PLM addresses between a quarter and a half of the company. That’s a big part of a company. It has a big effect on business results, so it needs executive attention, and executives should know about it.
PLM is a company’s management system for its products. It’s an executive subject. PLM isn’t a computer system, it’s not software. PLM is a subject focused on a company’s products. It’s not a subject to outsource, or to delegate to IS specialists.
This volume aims to address succinctly the PLM subjects that are important for executives. And to answer the questions they may have about it. Questions such as What is PLM ?
, What’s a PLM Initiative
and What should I do for PLM ?
The book has two main parts. The first part, Chaps. 1–7, gives an executive overview of PLM . The other part, Chap. 8, addresses executive roles in PLM Initiatives .
Looking in more detail, Chap. 2 includes a brief overview of my experience . It outlines some of the PLM Initiatives that I’ve been involved with. It gives a quick overview of the objectives and activities of some companies’ PLM Initiatives . It provides some background to the short examples and cases that I describe throughout the book. Chap. 2 also outlines the various components of PLM in a company, such as products, product data , product-related business processes and PLM applications . It addresses the drivers that led to the emergence of PLM in 2001. It describes typical issues that companies face across the product lifecycle .
Chapter 3 answers concisely the questions What’s PLM ?
and What’s a PLM Initiative ?
It describes the scope of PLM , and the resources it manages. It outlines the activities of a PLM Initiative .
The concept of PLM is described in Chap. 4. PLM is simple, almost obvious. It doesn’t need a long explanation. But it’s different from what went before. Key parameters of the paradigm for the management of a company’s products are described. The change from the previous 20th Century paradigm to the 21st Century paradigm of PLM is described.
The benefits of PLM are outlined in Chap. 5. They can be substantial. But they may not be easy to achieve. Which is why executive involvement in a PLM Initiative is so important. The benefits are addressed in different categories, starting with increased revenues and reduced costs.
Chapter 6 outlines twelve principles of PLM strategy . These are rules, best practices, to guide executives when defining PLM strategies. They can also be used in a checklist when reviewing the status of a PLM Initiative .
Chapter 7 describes the steps of a PLM Initiative. All companies have different PLM Initiatives , but often some of the steps are similar. Knowing about these steps will help an executive to define a PLM Initiative , make sure it includes all the required activities, and track its progress. The typical activities and deliverables of these steps are described.
By this stage, the main components of the PLM environment and a PLM Initiative have been described. Chapter 8 looks at different executive roles in PLM Initiatives . These include those of CEO , PLM Initiative Sponsor , PLM Steering Committee member, and PLM Initiative Leader . Typical activities for each role are described. Examples are given showing the importance of defining roles clearly, and in detail, and ensuring they are communicated and understood.
Appendix A outlines some of the issues a particular company faced before starting a PLM Initiative .
Appendix B gives more examples from PLM Initiatives, showing different roles , activities and results.
Appendix C provides answers to some frequently asked questions about PLM .
A generic Vision of PLM for a company is outlined in Appendix D. It helps executives see how other companies look at PLM . It helps them visualise a PLM target for their company.
© Springer International Publishing AG 2018
John StarkProduct Lifecycle Management (Volume 3): The Executive SummaryDecision Engineeringhttps://doi.org/10.1007/978-3-319-72236-8_2
2. My Experience with PLM
John Stark¹
(1)
Geneva, Switzerland
Product Lifecycle Management (PLM) is the business activity of managing, in the most effective way, 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.
PLM is the management system for the company’s products.
At the highest level, the objective of PLM is to increase product revenues, reduce product-related costs, maximise the value of the product portfolio, and maximise the value of current and future products for both customers and shareholders.
2.1 PLM Experience with More than 100 Companies
Maybe you’re wondering if this book is based on practical experience . Well, I’ve worked with more than 100 companies on PLM activities. PLM applies around the world. I’ve worked with companies in Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Malaysia, Netherlands, Portugal, South Korea, Spain, Sweden, Switzerland, Thailand, Tunisia, the United Kingdom and the United States of America.
As well as being applicable throughout the world, PLM applies to a very wide range of products. The companies I’ve worked with have been in a wide range of industry sectors, with products such as aeroplanes, automotive parts, beverages, cameras, cars, circuit breakers, computers, drive belts, electrical connectors, elevators, fasteners, food, hand tools, helicopters, machine tools, machinery, medicines, oil platforms, pharmaceutical products, rockets, ships, shoes, tools for surgeons, turbine blades, weighing equipment and windscreens.
I’ll give you some examples of the type of company that I’ve worked with on PLM . They show the different sizes of companies working on PLM . They show the objectives of typical PLM Initiatives , and the level of executives involved. They also show some examples of the activities in a PLM Initiative.
I worked with a global FMCG company with 25,000 employees. The PLM Initiative was sponsored by the CEO . I supported the PLM Initiative Leader over 18 months. I was responsible for improving business processes , such as New Product Development (NPD), leading to a 10% reduction in time to market . Among my activities were Business Process Mapping of the as-is situation. And blueprinting of the future, to-be processes.
For a global leader in the beverage industry, I worked with the PLM Initiative Team to develop a PLM Vision and PLM Strategy to meet revenue growth objectives in the long-term corporate business plan. The objective was to double revenues. The Initiative Leader reported to the CEO .
I worked with the CEO , VP R&D and VP Production of a $500 M global leader in the industrial belting industry with over 5000 employees. I provided support in many different areas including PLM Initiative Initiation, Planning and Management. The objective was to improve business processes across the product lifecycle and support them with a Product Data Management (PDM) system. Results included: more truly innovative products developed; more products brought to market annually; reduced product development time; and fewer product development projects failing.
I worked on the PLM Initiative of a global leader in the medical device sector for about 4 years. The objective was to reduce time to market by 15%. The company had about 10,000 employees. The Initiative Sponsor was the CEO . I helped develop PLM Vision , Strategy and plans; develop and implement improved product-related business processes ; model product data , select and implement a common PDM system worldwide.
I worked for 3 years with the COO of a global leader in the transportation sector with over 50,000 employees. One objective was to reduce time to market . Another was to eliminate from the portfolio and inventory the many old products that were no longer ordered. I defined and implemented cross-functional Product Idea Management, New Product Development (NPD), Engineering Change Management (ECM), and Phase-out processes. I developed a training program for over 300 product developers.
For a $400 M machine tool manufacturer with 2000 employees working on several sites in Asia, Europe and North America. I supported the PLM Initiative Team over 18 months. I was involved in PLM Team education ; development of PLM Vision and plans. We improved product-related processes, cleaned up product data , and defined product data management requirements. We selected Computer Aided Design (CAD) and PDM systems. The final presentation was to the company’s President.
For a rail infrastructure manufacturer I reviewed and improved product structures. As a result of several mergers and acquisitions, there were many duplicate structures and many very similar structures. During the Initiative, product structures were harmonised. As a result of the Initiative, the time spent on managing product structures was reduced from weeks to hours, and complexity reduced by over 80%. That led to significant cost reductions.
For a $5B pharmaceutical company, I reviewed discovery and development processes and applications, leading to identification of errors in interfaces causing loss of potential products. These products had potential sales of over $1B.
For a $1B industrial equipment manufacturer, the PLM Initiative was part of post-merger integration . It focused on harmonisation of business processes and applications. Product data from different sites had to be cleaned up, harmonised and loaded into a common PDM system. Interfaces had to be built to the company’s ERP system. As well as NPD, ECM and Product Portfolio Management (PPM) processes, it included definition of Risk Management and Intellectual Property Management (IPM) processes.
For an $800 M industrial products company aiming to reduce time to market , the Initiative started with a review of the NPD process. It was soon apparent