The 411 on Product Lifecycle Management Jan 1, 2007 12:00 PM
, By Karen M. Kroll
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That's why a company's size is no longer
the predominant factor in determining whether the business could
benefit from a PLM solution. Several other criteria also come into
play, says Sarvesh Jagannivas, vice president of industry strategy with
San Jose, CA-based Agile. These include the complexity of the products
being manufactured and the manufacturing process itself, the diversity
of the products, and the duration of the product's lifecycle. The more
complex the processes, the more diverse and numerous the product lines,
and the more quickly a product moves from design to obsolescence, the
more benefit a PLM application can provide. In these environments,
manually managing the information and processes isn't feasible,
Jagannivas says.
PLM
solutions are especially useful when multiple locations are involved in
the design and manufacture of products. For instance, Bally
Technologies, which designs and manufactures a variety of slot and
video machines, operates design facilities in the U.S., India, France,
and the U.K., among other places. “We want to constantly be on the
cutting edge,” says Guna Rajendran, PLM project manager in information
technology for the Las Vegas-based company. “That requires
collaboration no matter the time difference of the people working on
the project.”
Although
Bally had been using a PLM system when Rajendran joined the company in
2005, employees weren't making the most of it. Product information was
spread across multiple homegrown systems, making it difficult to
determine where the latest data resided. By implementing a PLM
application from Agile, Bally employees were able to reduce the time it
took to design and bring new products to market. This is particularly
true on smaller projects, such as modifying a slot machine so that it
would work with various currencies. On these types of projects, the
average time to market has dropped from three to four months to six to
eight weeks.
“The
biggest benefit of PLM is the ability to disseminate information
throughout the company,” Rajendran says. “Whoever needs it can access
the most up-to-date information anytime, anywhere in the world.”
Putting PLM in place
Before
you can benefit from a PLM system, however, you'll probably need to
transfer information from your various legacy systems into the PLM
application. For large companies, this is an enterprise-level
implementation, says Rajendran. “It might take you off guard if you
don't plan thoroughly.”
Most
companies start by inputting or importing the information that's
currently most important to the company's operations, says Murphy of
Dassault Systemes. After that, they may bring over historical
information, though if the information is needed only for archival
purposes and not for current operations, many companies leave it
outside the PLM application.
Depending
on the format in which your data exist, you may be able to do a bulk
import. That's usually the case when the information is available in a
common application, such as Microsoft Word. Similarly, its often
possible to integrate the PLM application with an enterprise resource
planning (ERP) system and then bring the ERP data over directly, says
Murphy. On the other hand, if the data aren't in a standardized format
— say, if they include notes written onto a product drawing — they will
probably have to be entered manually.
Most
PLM solutions are available on either an application service provider
(ASP) or a purchase basis. Some companies offer a modular version of
PLM. That's the approach San Francisco-based Freeborders has taken,
says Debbie Baldini, managing director of the technology solutions
provider's retail practice. The Freeborders suite of modules includes
an online storyboard application in which employees from different
departments can share design ideas and an application that manages
material sourcing. Although the applications are modular, they work
from a common library of information.
Most
PLM implementations take from several months to a couple of years,
although it's not unheard of for smaller companies to get up and
running within several weeks, says Murphy. Unless the PLM system will
be extremely complex, it's usually not necessary to purchase additional
hardware, he adds.
The
investment required for a PLM application can vary as widely as the
amount of time needed for implementation. Marc Young, president of xLM
Solutions, a software consulting firm based in Detroit, runs some
hypothetical numbers: Say that a midsize company needs to buy 20
licenses; 15 are dedicated to specific engineers, who often spend all
day on the system, while the rest are shared among users, such as
purchasing agents, who don't require their own licenses. The licenses
run about $3,000 each. The company also expects to spend
$50,000-$60,000 in consulting services during the implementation. That
brings the total investment to $110,000-$120,000. Larger
implementations can start in the mid-six-figures and head into the
millions.
Shoemaker says that PTC's PDMLink on Demand costs about $125 a month per user. There's also about $12,500 in startup fees.
Not a panacea
PLM
isn't the answer to every product lifecycle problem. Despite its name,
PLM applications really focus on the design and development stages of a
product, rather than its entire lifecycle, says Patrick Ogawa,
associate vice president with the retail and consumer packaged goods
unit of Infosys Technologies Ltd., a Fremont, CA-based consultancy.
“The scope of PLM begins with product design and inception and ends
when the item lands in the store.” So if, for instance, consumer demand
for a product differs from the forecast, a PLM system alone won't
capture that.
In
addition, most PLM applications don't work well with lean manufacturing
operations, says Karsten's Shoenhair. “They're more interested in
individual tasks and less on the process.” PLM applications won't tell
where bottlenecks between tasks are occurring, for example.
Even
so, many of those who have implemented PLM solutions are true
advocates. Says Bally's Rajendran, “PLM is the one tool that gives
complete visibility over the products that are the company's blood.”
Minnetonka, MN-based Karen M. Kroll has written for Business Finance, Inc., and American Way, among other publications.
Six steps to PLM success
To ensure the smooth implementation of your product lifecycle management solution, keep these suggestions in mind:
Identify
the business problem and the contributors to it, says Mike Burkett ,
vice president of product lifecycle management at AMR Research.
Determine
how PLM will solve these problems, says Lance Murphy, technical
marketing manager with PLM solutions developer Dassault Systemes. That
way you can tackle the project with clear objectives.
Obtain
support for PLM from top management. “That's the one thing that will
drive this project in the right direction,” says Guna Rajendran, PLM
project manager with gaming manufacturer Bally Technologies. Support
from the IT department also is crucial, as you will need them to assist
in the implementation.
Form a committee with all
stakeholders, says Marc Young, president with software consultancy xLM
Solutions. The team should include experts in both product development
and information systems, and they should have the power to analyze the
options and make decisions.
Be open to the changes
PLM allows, says Young. For example, many companies have elaborate
methodologies they use to number parts. Because PLM allows you to
associate a part with its attributes, this sort of numbering system may
no longer be necessary.
Deploy in increments,
showing wins as you go. Karsten Manufacturing Co. implemented a PLM
data warehouse application with its golf equipment brand Ping, says Dan
Shoenhair, director of engineering/business manager. The company let
employees use it before launching an application to manage workflow. In
all, Shoenhair and his colleagues spent about 18 months implementing
PLM, letting people grow with the system. — KMK
