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Two weeks ago I wrote about the simplification discussion around PLM – Why PLM never will be simple.  There I focused on the fact that even sharing information in a consistent, future proof way of working, is already challenging, despite easy to use communication tools like email or social communities.

I mentioned that sharing PLM data is even more challenging due to their potential revision, version, status, and context.  This brings us to the topic of configuration management, needed to manage the consistency of information, a challenge with the increasingly sophisticated products or systems. Simple tools will never fix this complexity.

To manage the consistency of a product,  configuration management (CM) is required. Two weeks ago I read the following interesting post from CMstat: A Brief History of Configuration Management Software.

An excellent introduction if you want to know more about the roots of CM, be it that the post at the end starts to flush out all the disadvantages and reasons why you should not think about CM using PLM systems.

The following part amused me:

 The Reality of Enterprise PLM

It is no secret that PLM solutions were often sold based in good part on their promise to provide full-lifecycle change control and systems-level configuration management across all functions of the enterprise for the OEM as well as their supply and service chain partners. The appeal of this sales stick was financial; the cost and liability to the corporation from product failures or disasters due to a lack of effective change control was already a chief concern of the executive suite. The sales carrot was the imaginary ROI projected once full-lifecycle, system-level configuration control was in effect for the OEM and supply chain.

Less widely known is that for many PLM deployments, millions of budget dollars and months of calendar time were exhausted before reaching the point in the deployment road map where CM could be implemented. It was not uncommon that before the CM stage gate was reached in the schedule, customer requirements, budget allocations, management priorities, or executive sponsors would change. Or if not these disruptions within the customer’s organization, then the PLM solution provider, their software products or system integrators had been changed, acquired, merged, replaced, or obsoleted. Worse yet for users who just had a job to do was when solutions were “reimagined” halfway through a deployment with the promise (or threat) of “transforming” their workflow processes.

Many project managers were silently thankful for all this as it avoided anyone being blamed for enterprise PLM deployment failures that were over budget, over schedule, overweight, and woefully underwhelming. Regrettably, users once again had to settle for basic change control instead of comprehensive configuration management.

I believe the CMstat-writer is generalizing too much and preaches for their parish. Although my focus lies on PLM, I also learned the importance of CM and for that reason I will share a view on CM from the PLM side:

Configuration Management is not a target for every company

The origins of Configuration Management come from the Aerospace and Defense (A&D) industries. These industries have high quality, reliability and traceability constraints. In simple words, you need to prove your product works correctly specified in all described circumstances and keep this consistent along the lifecycle of the product.

Moreover, imagine you delivered the perfect product, next implementing changes require a full understanding of the impact of the change. What is the impact of the change on the behavior or performance? In A&D is the question is it still safe and reliable?

Somehow PLM and CM are enemies. The main reason why PLM-systems are used is Time to Market — bringing a product as fast as possible to the market with acceptable quality. Being first is sometimes more important than high quality. CM is considered as a process that slows down Time to Market as managing consistency, and continuous validating takes time and effort.

Configuration Management in Aviation is crucial as everyone understands that you cannot afford to discover a severe problem during a flight. All the required verification and validation efforts make CM a costly process along the product lifecycle. Airplane parts are 2 – 3 times more expensive than potential the same parts used in other industries. The main reason: airplane parts are tested and validated for all expected conditions along their lifecycle.  Other industries do not spend so much time on validation. They validate only where issues can hurt the company, either for liability or for costs.

Time to Market even impacts the aviation industry  as we can see from the commercial aircraft battle(s) between Boeing and Airbus. Who delivers the best airplane (size/performance) at the right moment in the global economy? The Airbus 380 seemed to miss its targets in the future – too big – not flexible enough. The Boeing 737 MAX appears to target a market sweet spot (fuel economy) however the recent tragic accidents with this plane seemed to be caused by Time to Market pressure to certify the aircraft too early. Or is the complexity of a modern airplane unmanageable?

CM based on PLM-systems

Most companies had their configuration management practices long before they started to implement PLM. These practices were most of the time documented in procedures, leading to all kind of coding systems for these documents. Drawing numbers (the specification of a part/product), Specifications, Parts Lists, all had a meaningful identifier combined with a version/revision and status. For example, the Philips 12NC coding system is famous in the Netherlands and is still used among spin-offs of Philips and their supplier as it offers a consistent framework to manage configurations.

Storing these documents into a PDM/PLM-system to provide centralized access was not a big problem; however, companies also expected the PLM-system to support automation and functionality to support their configuration management procedures.

A challenge for many implementers for several reasons:

  • PLM-systems do not offer a standard way of working – if they would do so, they could only serve a small niche market – so it needs to be “configured/customized.”
  • Company configuration management rules sometimes cannot be mapped to the provided PLM data-model and their internal business logic. This has led to costly customizations where, in the best case, implementer and company agreed somewhere in the middle. Worst case as the writer from the CM blog is mentioning it becomes an expensive, painful project
  • Companies do not have a consistent configuration management framework as Time to Market is leading – we will fix CM later is the idea, and they let their PLM –implementer configure the PLM-system as good a possible. Still, at the management level, the value of CM is not recognized.
    (see also: PLM-CM-ALM – not sexy ?)

In companies that I worked with, those who were interested in a standardized configuration management approach were trained in CMII. CMII (or CM2) is a framework supported by most PLM-systems, sometimes even as a pre-configured template to speed-up the implementation. Still, as PLM-systems serve multiple industries, I would not expect any generic PLM-vendor to offer Commercial Off-The-Shelf (COTS) CM-capabilities – there are too many legacy approaches. You can find a good and more in-depth article related to CMII here: Towards Integrated Configuration Change Management (CMII) from Lionel Grealou.

 

What’s next?

Current configuration management practices are very much based on the concepts of managing document. However, products are more and more described in a data-driven, model-based approach. You can find all the reasons why we are moving to a model-based approach in my last year’s blog post. Important to realize is that current CM practices in PLM were designed with mechanical products and lifecycles as a base. With the combination of hardware and software, integrated and with different lifecycles, CM has to be reconsidered with a new holistic concept. The Institute of Process Excellence provides CM2 training but is also active in developing concepts for the digital enterprise.

Martijn Dullaart, Lead Architect Configuration Management @ ASML & Chair @ IPE/CM2 Global Congress has published several posts related to CM and a Model-Based approach – you find them here related to his LinkedIn profile. As you can read from his articles organizations are trying to find a new consistent approach.

Perhaps CM as a service to a Product Innovation Platform, as the CMstat blog post suggests? (quote from the post below)

In Part 2 of this CMsights series on the future of CM software we will examine the emerging strategy of “Platform PLM” where functional services like CM are delivered via an open, federated architecture comprised of rapidly-deployable industry-configured applications.

I am looking forward to Part2 of CMsights . An approach that makes sense to me as system boundaries will disappear in a digital enterprise. It will be more critical in the future to create consistent data flows in the right context and based on data with the right quality.

Conclusion

Simple tools and complexity need to be addressed in the right order. Aligning people and processes efficiently to support a profitable enterprise remains the primary challenge for every enterprise. Complex products, more dependent on software than hardware, are requiring new ways of working to stay competitive. Digitization can help to implement these new ways of working. Experienced PLM/CM experts know the document-driven past. Now it is time for a new generation of PLM and CM experts to start from a digital concept and build consistent and workable frameworks. Then the simple tools can follow.

 

In this post, I will explain the story behind my presentation at PI PLMx London. You can read my review of the event here: “The weekend after ……” and you can find my slides on SlideShare: HERE.

For me, this presentation is a conclusion of a thought process and collection of built-up experiences in the past three to  five years, related to the challenges digital transformation is creating for PLM and what makes it hard to go through compared to other enterprise business domains.  So here we go:

Digital transformation or disruption?

Slide 2 (top image) until 5 are dealing with the common challenges of business transformation. In nature, the transformation from a Caterpillar (old linear business) to a Butterfly (modern, agile, flexible) has the cocoon stage, where the transformation happens. In business unfortunate companies cannot afford a cocoon phase, it needs to be a parallel change.

Human beings are not good at change (slide 3 & 4), and the risk is that a new technology or a new business model will disrupt your business if you are too confident – see examples from the past. The disruption theory introduced by Clayton Christensen in his book, the Innovators Dilemma is an excellent example of how this can happen.  Some of my thoughts are in The Innovator’s dilemma and generation change (2015)

Although I know some PLM vendors consider themselves as disruptor, I give them no chance in the PLM domain. The main reason: The existing PLM systems are so closely tied to the data they manage, that switching from one PLM system to a more modern PLM system does not pay off.  The data models are so diverse that it is better to stay with the existing environment.

What is clear for modern digital businesses is that if you could start from scratch or with almost no legacy you can move faster forward than the rest. But only if supported by a strong leadership , a(understandable) vision and relentless execution.

The impression of evolution

Marc Halpern’s slide presented at PDT 2015 is one of my favorite slides, as it maps business maturity to various characteristics of an organization, including the technologies used.

 

Slide 7 till 18 are zooming in on the terms Coordinated and Connected and the implications it has for data, people and business. I have written about Coordinated and Connected recently: Coordinated or Connected (2018)

A coordinated approach: Delivering the right information at the right moment in the proper context is what current PLM implementations try to achieve. Allowing people to use their own tools/systems as long as they deliver at the right moment their information (documents/files) as part of the lifecycle/delivery process. Very linear and not too complicated to implement you would expect. However it is difficult ! Here we already see the challenge of just aligning a company to implement a horizontal flow of data. Usability of the PLM backbone and optimized silo thinking are the main inhibitors.

In a connected approach: Providing actual information for anyone connected in any context the slide on the left shows the mental picture we need to have for a digital enterprise. Information coming from various platforms needs to be shareable and connected in real-time, leading, in particular for PLM, to a switch from document-based deliverables to models and parameters that are connected.

Slide 15 has examples of some models.  A data-driven approach creates different responsibilities as it is not about ownership anymore but about accountability.

The image above gives my PLM-twisted vision of which are the five core platforms for an enterprise.  The number FIVE is interesting as David Sherburne just published his Five Platforms that Enable Digital Transformation and in 2016 Gartner identified Five domains for the digital platform .- more IT-twisted ? But remember the purpose of digital transformation is: FIVE!

From Coordinated to Connected is Digital Transformation

Slide 19 till 27 further elaborate on the fact that for PLM there is no evolutionary approach possible, going from a Coordinated technology towards a Connected technology.

For three reasons:  different type of data (document vs. database elements), different people (working in a connected environment requires modern digital skills) and different processes (the standard methods for mechanical-oriented PLM practices do not match processes needed to deliver systems (hardware & software) with an incremental delivery process).

Due to the incompatibility of the data, more and more companies discover that a single PLM-instance cannot support both modes – staying with your existing document-oriented PLM-system does not give the capabilities needed for a model-driven approach. Migrating the data from a traditional PLM-environment towards a modern data-driven environment does not bring any value. The majority of the coordinated data is not complete and with the right quality to use a data-driven environment. Note: in  a data-driven environment you do not have people interpreting the data – the data should be correct for automation / algorithms.

The overlay approach, mentioned several times in various PLM-blogs, is an intermediate solution. It provides traceability and visibility between different data sources (PLM, ALM, ERP, SCM, …). However it does not make the information in these systems better accessible.

So the ultimate conclusion is: You need both approaches, and you need to learn to work in a hybrid environment !

What can various stakeholders do?

For the management of your company, it is crucial they understand the full impact of digital transformation. It is not about a sexy customer website, a service platform or Virtual Reality/Augmented Reality case for the shop floor or services. When these capabilities are created disconnected from the source (PLM), they will deliver inconsistencies in the long-term. The new digital baby becomes another silo in the organization. Real digital transformation comes from an end-to-end vision and implementation.  The result of this end-to-end vision will be the understanding that there is a duality in data, in particular for the PLM domain.

Besides the technicalities, when going through a digital transformation, it is crucial for the management to share their vision in a way it becomes a motivational story, a myth, for all employees. As Yuval Harari, writer of the book Sapiens,  suggested, we (Home Sapiens) need an abstract story, a myth to align a larger group of people to achieve a common abstract goal. I discussed this topic in my posts: PLM as a myth? (2017)  and PLM – measurable or a myth?

Finally, the beauty of new digital businesses is that they are connected and can be monitored in real-time. That implies you can check the results continuously and adjust – scale of fail!

Consultants and strategists in a company should also take the responsibility, to educate the management and when advising on less transformational steps, like efficiency improvements: Make sure you learn and understand model-based approaches and push for data governance initiatives. This will at least narrow the gap between coordinated and connected environments.

This was about strategy – now about execution:

For PLM vendors and implementers, understanding the incompatibility of data between current PLM practices – coordinated and connected – it will lead to different business models. Where traditionally the new PLM vendor started first with a rip-and-replace of the earlier environment – no added value – now it is about starting a new parallel environment.  This implies no more big replacement deals, but more a long-term. strategic and parallel journey.  For PLM vendors it is crucial that being able to offer to these modes in parallel will allow them to keep up their customer base and grow. If they would choose for coordinated or connected only it is for sure a competitor will work in parallel.

For PLM users, an organization should understand that they are the most valuable resources, realizing these people cannot make a drastic change in their behavior. People will adapt within their capabilities but do not expect a person who grew up in the traditional ways of working (linear / analogue) to become a successful worker in the new mode (agile / digital). Their value lies in transferring their skills and coaching new employees but do not let them work in two modes. And when it comes to education: permanent education is crucial and should be scheduled – it is not about one or two trainings per year – if the perfect training would exist, why do students go to school for several years ? Why not give them the perfect PowerPoint twice a year?

Conclusions

I believe after three years of blogging about this theme I have made my point. Let’s observe and learn from what is happening in the field – I remain curious and focused about proof points and new insights. This year I hope to share with you new ideas related to digital practices in all industries, of course all associated with the human side of what we once started to call PLM.

Note: Oleg Shilovitsky just published an interesting post this weekend: Why complexity is killing PLM and what are future trajectories and opportunities? Enough food for discussion. One point: The fact that consumers want simplicity does not mean PLM will become simple – working in the context of other information is the challenge – it is human behavior – team players are good in anticipating – big egos are not. To be continued…….

 

 

 

 

 

 

 

 

 

I was happy to take part at the PI PLMx London event last week. It was here and in the same hotel that this conference saw the light in 2011  – you can see my blog post from that event here: PLM and Innovation @ PLMINNOVATION 2011.

At that time the first vendor-independent PLM conference after a long time and it brought a lot of new people together to discuss their experience with PLM. Looking at the audience that time, many of the companies that were there, came back during the years, confirming the value this conference has brought to their PLM journey.

Similar to the PDT conference(s) – just announced for this year last week – here – the number of participants is diminishing.

Main hypotheses:

  1. the PLM-definition has become too vague. Going to a PLM conference does not guarantee it is your type of PLM discussions you expect to see?
  2. the average person is now much better informed related to PLM thanks to the internet and social media (blogs/webinars/ etc.) Therefore, the value retrieved from the PLM conference is not big enough any more?
  3. Digital Transformation is absorbing all the budget and attention downstream the organization not creating the need and awareness of modern PLM to the attention of the management anymore. g., a digital twin is sexier to discuss than PLM?

What do you think about the above three hypotheses – 1,2 and/or 3?

Back to the conference. The discussion related to PLM has changed over the past nine years. As I presented at PI from the beginning in 2011, here are the nine titles from my sessions:

2011       PLM – The missing link
2012       Making the case for PLM
2013       PLM loves Innovation
2014       PLM is changing
2015       The challenge of PLM upgrades
2016       The PLM identity crisis
2017       Digital Transformation affects PLM
2018       PLM transformation alongside Digitization
2019       The challenges of a connected Ecosystem for PLM

Where the focus started with justifying PLM, as well as a supporting infrastructure, to bring Innovation to the market, the first changes became visible in 2014. PLM was changing as more data-driven vendors appeared with new and modern (metadata) concepts and cloud, creating the discussion about what would be the next upgrade challenge.

The identity crisis reflected the introduction of software development / management combined with traditional (mechanical) PLM – how to deal with systems? Where are the best practices?

Then from 2017 on until now Digital Transformation and the impact on PLM and an organization became the themes to discuss – and we are not ready yet!

Now some of the highlights from the conference. As there were parallel sessions, I had to divide my attention – you can see the full agenda here:

How to Build Critical Architecture Models for the New Digital Economy

The conference started with a refreshing presentation from David Sherburne (Carestream) explaining their journey towards a digital economy.  According to David, the main reason behind digitization is to save time, as he quoted Harvey Mackay an American Businessman and Journalist,

Time is free, but it is priceless. You cannot own it, but you can use it. You can’t keep it, but you can spend it. Once you have lost it, you never can get it back

I tend to agree with this simplification as it makes the story easy to explain to everyone in your company. Probably I would add to that story that saving time also means less money spent on intermediate resources in a company, therefore, creating a two-sided competitive advantage.

David stated that today’s digital transformation is more about business change than technology and here I wholeheartedly agree. Once you can master the flow of data in your company, you can change and adapt your company’s business processes to be better connected to the customer and therefore deliver the value they expect (increases your competitive advantage).

Having new technology in place does not help you unless you change the way you work.

David introduced a new acronym ILM (Integrated Lifecycle Management) and I am sure some people will jump on this acronym.

David’s presentation contained an interesting view from the business-architectural point of view. An excellent start for the conference where various dimensions of digital transformation and PLM were explored.

Integrated PLM in the Chemical industry

Another interesting session was from Susanna Mäentausta  (Kemira oy)  with the title: “Increased speed to market, decreased risk of non-compliance through integrated PLM in Chemical industry.” I selected her session as from my past involvement with the process industry, I noticed that PLM adoption is very low in the process industry. Understanding Why and How they implemented PLM was interesting for me. Her PLM vision slide says it all:

There were two points that I liked a lot from her presentation, as I can confirm they are crucial.

  • Although there was a justification for the implementation of PLM, there was no ROI calculation done upfront. I think this is crucial, you know as a company you need to invest in PLM to stay competitive. Making an ROI-story is just consoling the people with artificial number – success and numbers depend on the implementation and Susanna confirmed that step 1 delivered enough value to be confident.
  • There were an end-to-end governance and a communication plan in place. Compared to PLM projects I know, this was done very extensive – full engagement of key users and on-going feedback – communicate, communicate, communicate. How often do we forget this in PLM projects?

Extracting More Value of PLM in an Engineer-to-Order Business

Sami Grönstrand & Helena Gutierrez presented as an experienced duo (they were active in PI P PLMx Hamburg/Berlin before) – their current status and mission for PLM @ Outotec. As the title suggests, it was about how to extract more value from PL M, in an Engineering to Order Business.

What I liked is how they simplified their PLM targets from a complex landscape into three story-lines.

If you jump into all the details where PLM is contributing to your business, it might get too complicated for the audience involved. Therefore, they aligned their work around three value messages:

  • Boosting sales, by focusing on modularization and encouraging the use of a product configurator. This instead of developing every time a customer-specific solution
  • Accelerating project deliverables, again reaping the benefits of modularization, creating libraries and training the workforce in using this new environment (otherwise no use of new capabilities). The results in reducing engineering hours was quite significant.
  • Creating New Business Models, by connecting all data using a joint plant structure with related equipment. By linking these data elements, an end-to-end digital continuity was established to support advanced service and support business models.

My conclusion from this session was again that if you want to motivate people on a PLM-journey it is not about the technical details, it is about the business benefits that drive these new ways of working.

Managing Product Variation in a Configure-To-Order Business

In the context of the previous session from Outotec, Björn Wilhemsson’s session was also addressing somehow the same topic of How to create as much as possible variation in your customer offering, while internally keep the number of variants and parts manageable.

Björn, Alfa Laval’s OnePLM Programme Director, explained in detail the strategy they implemented to address these challenges. His presentation was very educational and could serve as a lesson for many of us related to product portfolio management and modularization.

Björn explained in detail the six measures to control variation, starting from a model-strategy / roadmap (thinking first) followed by building a modularized product architecture, controlling and limiting the number of variants during your New Product Development process. Next as Alfa Laval is in a Configure-To-Order business, Björn the implementation of order-based and automated addition of pre-approved variants (not every variant needs to exist in detail before selling it), followed by the controlled introduction of additional variants and continuous analysis of quoted and sold variant (the power of a digital portfolio) as his summary slides shows below:

Day 1 closed with an inspirational keynote; Lessons-Learnt from the Mountaineering Experience 8848 Meter above sea level  – a mission to climb the highest mountain on each of the continents in 107 days – 9 hours – setting a new world record by Jonathan Gupta.

There are some analogies to discover between his mission and a PLM implementation. It is all about having the total picture in mind. Plan and plan, prepare step-by-step in detail and rely on teamwork – it is not a solo journey – and it is about reaching a top (deliverable phase) in the most efficient way.

The differences: PLM does not need world records, you need to go with the pace an organization can digest and understand. Although the initial PLM climate during implementation might be chilling too, I do not believe you have to suffer temperatures below 50 degrees Celsius.

During the morning, I was involved in several meetings, therefore unfortunate unable to see some of the interesting sessions at that time. Hopefully later available on PI.TV for review as slides-only do not tell the full story. Although there are experts that can conclude and comment after seeing a single slide. You can read it here from my blog buddy Oleg Shilovitsky’s post : PLM Buzzword Detox. I think oversimplification is exactly creating the current problem we have in this world – people without knowledge become louder and sure about their opinion compared to knowledgeable people who have spent time to understand the matter.

Have a look at the Dunning-Kruger effect here (if you take the time to understand).

 

PLM: Enabling the Future of a Smart and Connected Ecosystem

Peter Bilello from CIMdata shared his observations and guidance related to the current ongoing digital business revolution that is taking place thanks to internet and IoT technologies. It will fundamentally transform how people will work and interact between themselves and with machines. Survival in business will depend on how companies create Smart and Connected Ecosystems. Peter showed a slide from the 2015 World Economic Forum (below) which is still relevant:

Probably depending on your business some of these waves might have touched your organization already. What is clear that the market leaders here will benefit the most – the ones owning a smart and connected ecosystem will be the winners shortly.

Next, Peter explained why PLM, and in particular the Product Innovation Platform, is crucial for a smart and connected enterprise.  Shiny capabilities like a digital twin, the link between virtual and real, or virtual & augmented reality can only be achieved affordably and competitively if you invest in making the source digital connected. The scope of a product innovation platform is much broader than traditional PLM. Also, the way information is stored differs – moving from documents (files) towards data (elements in a database).  I fully agree with Peter’s opinion here that PLM is conceptually the Killer App for a Smart & Connected Ecosystem and this notion is spreading.

A recent article from Forbes in the category Leadership: Is Your Company Ready For Digital Product Life Cycle Management? shows there is awareness.  Still very basic and people are still confused to understand what is the difference with an electronic file (digital too ?) and a digital definition of information.

The main point to remember here: Digital information can be accessed directly through a programming interface (API/Service) without the need to open a container (document) and search for this piece of information.

Peter then zoomed in on some topics that companies need to investigate to reach a smart & connected ecosystem. Security (still a question hardly addressed in IoT/Digital Twin demos), Standards and Interoperability ( you cannot connect in all proprietary formats economically and sustainably) A lot of points to consider and I want to close with Peter’s slide illustrating where most companies are in reality

The Challenges of a Connected Ecosystem for PLM

I was happy to present after Peter Bilello and David Sherburne (on day 1) as they both gave a perspective on digital transformation complementary to what I submitted. My presentation was focusing on the incompatibility of current coordinated business systems and the concept of a connected ecosystem.

You can already download my slides from SlideShare here: The Challenges of a Connected Ecosystem for PLM . I will explain my presentation in an upcoming blog post as slides without a story might lead to the wrong interpretation, and we already reached 2000 words. Few words to come.

How to Run a PLM Project Using the Agile Manifesto

Andrew Lodge, head of Engineering Systems at JCB explained how applying the agile mindset towards a PLM project can lead to faster and accurate results needed by the business. I am a full supporter for this approach as having worked in long and waterfall-type of PLM implementations there was always the big crash and user dissatisfaction at the final delivery. Keeping the business involved every step seems to be the solution. The issue I discovered here is that agile implementation requires a lot of people, in particular, business, to be involved heavily. Some companies do not understand this need and dropped /reduced business contribution to the least, killing the value of an agile approach

 

Concluding

For me coming back to London for the PI PLMx event was very motivational. Where the past two, three conferences before in Germany might have led to little progress per year, this year, thanks to new attendees and inspiration, it became for me a vivid event, hopefully growing shortly. Networking and listening to your peers in business remains crucial to digest it all.

 

The digital thread according to GE

In my earlier posts, I have explored the incompatibility between current PLM practices and future needs for digital PLM.  Digital PLM is one of the terms I am using for future concepts. Actually, in a digital enterprise, system borders become vague, it is more about connected platforms and digital services. Current PLM practices can be considered as Coordinated where the future for PLM is aiming at Connected information. See also Coordinated or Connected.

Moving from current PLM practices towards modern ways of working is a transformation for several reasons.

  • First, because the scope of current PLM implementation is most of the time focusing on engineering. Digital PLM aims to offer product information services along the product lifecycle.
  • Second, because the information in current PLM implementations is mainly stored in documents – drawings still being the leading In advanced PLM implementations BOM-structures, the EBOM and MBOM are information structures, again relying on related specification documents, either CAD- or Office files.

So let’s review the transformation challenges related to moving from current PLM to Digital PLM

Current PLM – document management

The first PLM implementations were most of the time advanced cPDM implementations, targeting sharing CAD models and drawings. Deployments started with the engineering department with the aim to centralize product design information. Integrations with mechanical CAD systems had the major priority including engineering change processes. Multidisciplinary collaboration enabled by introducing the concept of the Engineering Bill of Materials (EBOM).  Every discipline, mechanical, electrical and sometimes (embedded) software teams, linked their information to the EBOM. The product release process was driven by the EBOM. If the EBOM is released, the product is fully specified and can be manufactured.

Although people complain implementing PLM is complex, this type of implementation is relatively simple. The only added mental effort you are demanding from the PLM user is to work in a structured way and have a more controlled (rigid) way of working compared to a directory structure approach. For many people, this controlled way of working is already considered as a limitation of their freedom. However, companies are not profitable because their employees are all artists working in full freedom. They become successful if they can deliver in some efficient way products with consistent quality. In a competitive, global market there is no room anymore for inefficient ways of working as labor costs are adding to the price.

The way people work in this cPDM environment is coordinated, meaning based on business processes the various stakeholders agree to offer complete sets of information (read: documents) to contribute to the full product definition. If all contributions are consistent depends on the time and effort people spent to verify and validate its consistency. Often this is not done thoroughly and errors are only discovered during manufacturing or later in the field. Costly but accepted as it has always been the case.

Next Step PLM – coordinated document management / item-centric

When the awareness exists that data needs to flow through an organization is a consistent manner, the next step of PLM implementations come into the picture. Here I would state we are really talking about PLM as the target is to share product data outside the engineering department.

The first logical extension for PLM is moving information from an EBOM view (engineering) towards a Manufacturing Bill of Materials (MBOM) view. The MBOM is aiming to represent the manufacturing definition of the product and becomes a placeholder to link with the ERP system and suppliers directly. Having an integrated EBOM / MBOM process with your ERP system is already a big step forward as it creates an efficient way of working to connect engineering and manufacturing.

As all the information is now related to the EBOM and MBOM, this approach is often called the item-centric approach. The Item (or Part) is the information carrier linked to its specification documents.

 

Managing the right version of the information in relation to a specific version of the product is called configuration management. And the better you have your configuration management processes in place, the more efficient and with high confidence you can deliver and support your products.  Configuration Management is again a typical example where we are talking about a coordinated approach to managing products and documents.

Implementing this type of PLM requires already more complex as it needs different disciplines to agree on a collective process across various (enterprise) systems. ERP integrations are technically not complicated, it is the agreement on a leading process that makes it difficult as the holistic view is often failing.

Next, next step PLM – the Digital Thread

Continuing reading might give you the impression that the next step in PLM evolution is the digital thread. And this can be the case depending on your definition of the digital thread. Oleg Shilovitsky recently published an article: Digital Thread – A new catchy phrase to replace PLM? related to his observations from  ConX18 illustrate that there are many viewpoints to this concept. And of course, some vendors promote their perfect fit based on their unique definition. In general, I would classify the idea of Digital Thread in two approaches:

The Digital Thread – coordinated

In the Digital Thread – coordinated approach we are not revolutionizing the way of working in an enterprise. In the coordinated approach, the PLM environment is connected with another overlay, combining data from various disciplines into an environment where the dependencies are traceable. This can be the Aras overlay approach (here explained by Oleg Shilovitsky), the PTC Navigate approach or others, using a new extra layer to connect the various discipline data and create traceability in a more or less non-intrusive way. Similar concepts, but less intrusive can be done through Business Intelligence applications, although they are more read-only than a system approach.

The Digital Thread – connected

In the Digital Thread – connected approach the idea is that information is stored in an extreme granular way and shared among disciplines. Instead of the coordinated way, where every discipline can have their own data sources, here the target is to be data-driven (neutral/standard formats). I described this approach in the various aspects of the model-based enterprise. The challenge of a connected enterprise is the standardized data definition to make it available for all stakeholders.

Working in a connected enterprise is extremely difficult, in particular for people educated in the old-fashioned ways of working. If you have learned to work with shared documents, like Google Docs or Office documents in sharing mode, you will understand the mental change you have to go through. Continuous sharing the information instead of waiting until you feel your part is complete.

In the software domain, companies are used to work this way and to integrate data in a continuous stream. We have to learn to apply these practices also to a complete product lifecycle, where the product consists of hardware and software.

Still, the connect way if working is the vision where digital enterprises should aim for as it dramatically reduces the overhead of information conversion, overhead, and ambiguity. How we will implement in the context of PLM / Product Innovation is a learning process, where we should not be blocked by our echo chamber as Jan Bosch states it in his latest post: Don’t Get Stuck In Your Company’s Echo Chamber

Jan Bosch is coming from the software world, promoting the Software-Centric Systems conference SC2 as a conference to open up your mind. I recommend you to take part in upcoming PLM related events: CIMdata’s PLM roadmap Europe combined with PDT Europe on 24/25th October in Stuttgart, or if you are living in the US there is the upcoming PI PLMx CHICAGO 2018 on Nov 5/6th.

Conclusion

Learning and understanding are crucial and takes time. A digital transformation has many aspects to learn – keep in mind the difference between coordinated (relatively easy) and connected (extraordinarily challenging but promising). Unfortunate there is no populist way to become digital.

Note:
If you want to continue learning, please read this post – The True Impact of Industry 4.0 Revealed  -and its internal links to reference information from Martijn Dullaart – so relevant.

 

During my holiday I have read some interesting books. Some for the beauty of imagination and some to enrich my understanding of the human brain.

Why the human brain? It is the foundation and motto of my company: The Know-How to Know Now.
In 2012 I wrote a post: Our brain blocks PLM acceptance followed by a post in 2014  PLM is doomed, unless …… both based on observations and inspired by the following books (must read if you are interested in more than just PLM practices and technology):

In 2014, Digital Transformation was not so clear. We talked about disruptors, but disruption happened outside our PLM comfort zone.

Now six years later disruption or significant change in the way we develop and deliver solutions to the market has become visible in the majority of companies. To stay competitive or meaningful in a global market with changing customer demands, old ways of working no longer bring enough revenue to sustain.  The impact of software as part of the solution has significantly changed the complexity and lifecycle(s) of solutions on the market.

Most of my earlier posts in the past two years are related to these challenges.

What is blocking Model-Based Definition?

This week I had a meeting in the Netherlands with three Dutch peers all interested and involved in Model-Based Definition – either from the coaching point of view or the “victim” point of view.  We compared MBD-challenges with Joe Brouwer’s AID (Associated Information Documents) approach and found a lot of commonalities.

No matter which method you use it is about specifying unambiguously how a product should be manufactured – this is a skill and craftsmanship and not a technology. We agreed that a model-based approach where information (PMI) is stored as intelligent data elements in a Technical Data Package (TPD) will be crucial for multidisciplinary usage of a 3D Model and its associated information.

If we would store the information again as dumb text in a view, it will need human rework leading to potential parallel information out of sync, therefore creating communication and quality issues. Unfortunate as it was a short meeting, the intention is to follow-up this discussion in the Netherlands to a broader audience. I believe this is what everyone interested in learning and understanding the needs and benefits of a model-based approach (unavoidable) should do. Get connected around the table and share/discuss.

We realized that human beings indeed are often the blocking reason why new ways of working cannot be introduced. Twenty-five years ago we had the discussion moving from 2D to 3D for design. Now due to the maturity of the solutions and the education of new engineers this is no longer an issue. Now we are in the next wave using the 3D Model as the base for manufacturing definition, and again a new mindset is needed.

There are a few challenges here:

  • MBD is still in progress – standards like AP242 still needs enhancements
  • There is a lack of visibility on real reference stories to motivate others.
    (Vendor-driven stories often are too good to be true or too narrow in scope)
  • There is no education for (modern) business processes related to product development and manufacturing. Engineers with new skills are dropped in organizations with traditional processes and silo thinking.

Educate, or our brain will block the future!

The above points need to be addressed, and here the human brain comes again into the picture.  Our unconscious, reptile brain is continuously busy to spend a least amount of energy as described in Thinking, Fast and Slow. Currently, I am reading the Idiot Brain: What Your Head Is Really Up To by Dean Burnett, another book confirming that our brain is not a logical engine making wise decisions

And then there is the Dunning-Kruger effect, explaining that the people with the lowest skills often have the most outspoken opinion and not even aware of this flaw. We see this phenomenon in particular now in social media where people push their opinion as if they are facts.

So how can we learn new model-based approaches and here I mean all the model-based aspects I have discussed recently, i.e., Model-Based Systems Engineering, Model-Based Definition/ Model-Based Enterprise and the Digital Twin? We cannot learn it from a book, as we are entering a new era.

First, you might want to understand there is a need for new ways of working related to complex products. If you have time, listen to Xin Guo Zhang’s opening keynote with the title: Co-Evolution of Complex Aeronautical Systems & Complex SE. It takes 30 minutes so force yourself to think slow and comprehend the message related to the needed paradigm shift for systems engineering towards model-based systems engineering

Also, we have to believe that model-based is the future. If not, we will find for every issue on our path a reason not to work toward the ultimate goal.

You can see this in the comments of my earlier post on LinkedIn, where Sami Grönstrand writes:

I warmly welcome the initiative to “clean up” these concepts  (It is time to clean up our model-based problem and above all, await to see live examples of transformations — even partial — coupled with reasonable business value identification. 

There are two kinds of amazing places: those you have first to see before you can believe they exist.
And then those kinds that you have to believe in first before you can see them…

And here I think we need to simplify en enhance the Model-Based myth as according to Yuval Harari in his book Sapiens, the power of the human race came from creating myths to align people to have long-term, forward-looking changes accepted by our reptile brain. We are designed to believe in myths. Therefore, the need for a Model-based myth.In my post PLM as a myth? from 2017, I discussed this topic in more detail.

Conclusion

There are so many proof points that our human brain is not as reliable as we think it is.  Knowing less about these effects makes it even harder to make progress towards a digital future. This post with all its embedded links can keep your brain active for a few hours. Try it, avoid to think fast and avoid assuming you know it all. Your thoughts?

 

Learning & Discussing more?
Still time to register for CIMdata PLM Roadmap and PDT Europe

 

 

I was planning to complete the model-based series with a post related to the digital twin. However, I did not find the time to structure my thoughts to write it up in a structured story. Therefore, this time some topics I am working on that I would like to share.

Executive days at CADCAM Group

Last week I supported the executive days organized by the CADCAM Group in Ljubljana and Zagreb. The CADCAM is a large PLM Solution and Services Provider (60+ employees) in the region of South-East Europe with offices in Croatia, Slovenia, Serbia and Bosnia and Herzegovina. They are operating in a challenging region, four relative young countries with historically more an inside focus than a global focus. Many of CADCAM Group customers are in the automotive supply chain and to stay significant for the future they need to understand and develop a strategy that will help them to move forward.

My presentation was related to the learning path each company has to go through to understand the power of digital combined with the observation that current and future ways of working are not compatible therefore requiring a scaled and bimodal approach (see also PDT Europe further down this post).

This presentation matched nicely with Oscar Torres’s presentation related to strategy. You need to decide on the new things you are going to do, what to keep and what to stop. Sounds easy and of course the challenge is to define the what to start, stop and keep. There you need good insights into your current and future business.

Pierre Aumont completed the inspiring session by explaining how the automotive industry is being disrupted and it is not only Tesla. So many other companies are challenging the current status quo for the big automotive OEMs. Croatia has their innovator for electrical vehicles too, i.e. Rimac. Have a look here.

The presentations were followed by a (long) panel discussion. The common theme in both discussions is that companies need to educate and organize themselves to become educated for the future. New technologies, new ways of working need time and resources which small and medium enterprises often do not have. Therefore, universities, governments and interest groups are crucial.

A real challenge for countries that do not have an industrial innovation culture (yet).

CADCAM Group as a catalyst for these countries understands this need by organizing these executive days. Now the challenge is after these inspiring days to find the people and energy to follow-up.

Note: CADCAM Group graciously covered my expenses associated with my participation in these events but did not in any way influence the content of this paragraph.

 

The MBD/MBE discussion

In my earlier post, Model-Based: Connecting Engineering and Manufacturing,  I went deeper into the MBD/MBE topic and its potential benefits, closing with the request to readers to add their experiences and/or comments to MBD/MBE. Luckily there was one comment from Paul van der Ree, who had challenging experiences with MBD in the Netherlands. Together with Paul and a MBD-advocate (to be named) I will try to have discussion analyzing pro’s and con’s from all viewpoints and hopefully come to a common conclusion.

This to avoid that proponents and opponents of MBD just repeat their viewpoints without trying to converge. Joe Brouwer is famous for his opposition to MBD. Is he right or is he wrong I cannot say as there has never been a discussion. Click on the above image to see Joe’s latest post yourself. I plan to come back with a blog post related to the pro’s and con’s

 

The Death of PLM Consultancy

Early this year Oleg Shilovitsky and I had a blog debate related to the “Death of PLM Consultancy”. The discussion started here: The Death of PLM Consultancy ? and a follow-up post was PLM Consultants are still alive and have an exit strategy. It could have been an ongoing blog discussion for month where the value would be to get response from readers from our blogs.

Therefore I was very happy that MarketKey, the organizers behind the PLMx conferences in Europe and the US, agreed on a recorded discussion session during PLMx 2018 in Hamburg.  Paul Empringham was the moderator of this discussion with approx. 10 – 12 participants in the room to join the discussion. You can view the discussion here through this link: PLMx Hamburg debate

I want to thank MarketKey for their support and look forward to participating in their upcoming PLMx European event and if you cannot wait till next year, there is the upcoming PLMx conference in North America on November 5th and 6th – click on the image on the left to see the details.

 

 

PDT Europe call for papers

As you might have noticed I am a big supporter of the joint CIMdata/PDT Europe conference. This year the conference will be in Stuttgart on October 24th (PLM Roadmap) and October 25th (PDT).

I believe that this conference has a more “geeky” audience and goes into topics of PLM that require a good base understanding of what’s happening in the field. Not a conference for a newcomer in the world of PLM, more a conference for an experienced PLM person (inside a company or from the outside) that has experience challenging topics, like changing business processes, deciding on new standards, how to move to a modern digital business platform.

It was at these events where concepts as Model-Based were discussed in-depth, the need for Master Data Management, Industry standards for data exchange and two years ago the bimodal approach, also valid for PLM.

I hope to elaborate on experiences related to this bimodal or phased approach during the conference. If you or your company wants to contribute to this conference, please let the program committee know. There is already a good set of content planned. However, one or two inspiring presentations from the field are always welcome.
Click on this link to apply for your contribution

Conclusion

There is a lot on-going related to PLM as you can see. As I mentioned in the first topic it is about education and engagement. Be engaged and I am looking forward to your response and contribution in one or more of the topics discussed.

Last week I posted my first review of the PDT Europe conference. You can read the details here: The weekend after PDT Europe (part 1).  There were some questions related to the abbreviation PDT. Understanding the history of PDT, you will discover it stands for Product Data Technology. Yes, there are many TLA’s in this world.

Microsoft’s view on the digital twin

Now back to the conference. Day 2 started with a remote session from Simon Floyd. Simon is Microsoft’s Managing Director for Manufacturing Industry Architecture Enterprise Services and a frequent speaker at PDT. Simon shared with us Microsoft’s viewpoint of a Digital Twin, the strategy to implement a Digit Twin, the maturity status of several of their reference customers and areas these companies are focusing. From these customers it was clear most companies focused on retrieving data in relation to maintenance, providing analytics and historical data. Futuristic scenarios like using the digital twin for augmented reality or design validation. As I discussed in the earlier post, this relates to my observations, where creating a digital thread between products in operations is considered as a quick win. Establishing an end-to-end relationship between products in operation and their design requires many steps to fix. Read my post: Why PLM is the forgotten domain in digital transformation.

When discussing the digital twin architecture, Simon made a particular point for standards required to connect the results of products in the field. Connecting a digital twin in a vendor-specific framework will create a legacy, vendor lock-in, and less open environment to use digital twins. A point that I also raised in my presentation later that day.

Simon concluded with a great example of potential future Artificial Intelligence, where an asset based on its measurements predicts to have a failure before the scheduled maintenance stop and therefore requests to run with a lower performance so it can reach the maintenance stop without disruption.

Closing the lifecycle loop

Sustainability and the circular economy has been a theme at PDT for some years now too. In his keynote speech, Torbjörn Holm from Eurostep took us through the global megatrends (Hay group 2030) and the technology trends (Gartner 2018) and mapped out that technology would be a good enabler to discuss several of the global trends.

Next Torbjörn took us through the reasons and possibilities (methodologies and tools) for product lifecycle circularity developed through the ResCoM project in which Eurostep participated.

The ResCoM project (Resource Conservative Manufacturing) was a project co-funded by the European Commission and recently concluded. More info at www.rescom.eu

Torbjörn concluded discussing the necessary framework for Digital Twin and Digital Thread(s), which should be based on a Model-Based Definition, where ISO 10303 is the best candidate.

Later in the afternoon, there were three sessions in a separate track, related to design optimization for value, circular and re-used followed by a panel discussion. Unfortunate I participated in another track, so I have to digest the provided materials still. Speakers in that track were Ola Isaksson (Chalmers University), Ingrid de Pauw & Bram van der Grinten (IDEAL&CO) and Michael Lieder (KTH Sweden)

Connecting many stakeholders

Rebecca Ihrfors, CIO from the Swedish Defense Material Administration (FMV) shared her plans on transforming the IT landscape to harmonize the current existing environments and to become a broker between industry and the armed forces (FM). As now many of the assets come with their own data sets and PDM/PLM environments, the overhead to keep up all these proprietary environments is too expensive and fragmented. FWM wants to harmonize the data they retrieve from industry and the way they offer it to the armed forces in a secure way. There is a need for standards and interoperability.

The positive point from this presentation was that several companies in the audience and delivering products to Swedish Defense could start to share and adapt their viewpoints how they could contribute.

Later in the afternoon, there were three sessions in a separate track rented to standards for MBE inter-operability and openness that would fit very well in this context. Brian King (Koneksys), Adrian Murton (Airbus UK) and Magnus Färneland (Eurostep) provided various inputs, and as I did not attend these parallel sessions I will dive deeper in their presentations at a later time

PLM something has to change – bimodal and more

In my presentation, which you can download from SlideShare here: PLM – something has to change. My main points were related to the fact that apparently, companies seem to understand that something needs to happen to benefit really from a digital enterprise. The rigidness from large enterprise and their inhibitors to transform are more related to human and incompatibility issues with the future.

How to deal with this incompatibility was also the theme for Martin Eigner’s presentation (System Lifecycle Management as a bimodal IT approach) and Marc Halpern’s closing presentation (Navigating the Journey to Next Generation PLM).

Martin Eigner’s consistent story was about creating an extra layer on top of the existing (Mode 1) systems and infrastructure, which he illustrated by a concept developed based on Aras.

By providing a new digital layer on top of the existing enterprise, companies can start evolving to a modern environment, where, in the long-term, old Mode 1 systems will be replaced by new digital platforms (Mode 2). Oleg Shilovitsky wrote an excellent summary of this approach. Read it here: Aras PLM  platform “overlay” strategy explained.

Marc Halpern closed the conference describing his view on how companies could navigate to the Next Generation PLM by explaining in more detail what the Gartner bimodal approach implies. Marc’s story was woven around four principles.

Principle 1 The bimodal strategy as the image shows.

Principle 2 was about Mode 1 thinking in an evolutionary model. Every company has to go through maturity states in their organization, starting from ad-hoc, departmental, enterprise-based to harmonizing and fully digital integrated. These maturity steps also have to be taken into account when planning future steps.

Principle 3 was about organizational change management, a topic often neglected or underestimated by product vendors or service providers as it relates to a company culture, not easy to change and navigate in a particular direction.

Finally, Principle 4 was about Mode 2 activities. Here an organization should pilot (in a separate environment), certify (make sure it is a realistic future), adopt (integrate it in your business) and scale (enable this new approach to exists and grow for the future).

Conclusions

This post concludes my overview of PDT Europe 2017. Looking back there was a quiet aligned view of where we are all heading with PLM and related topics. There is the hype an there is reality, and I believe this conference was about reality, giving good feedback to all the attendees what is really happening and understood in the field. And of course, there is the human factor, which is hard to influence.

Share your experiences and best practices related to moving to the next generation of PLM (digital PLM ?) !

 

 

 

PLM can be swinging and inspiring although there will be times of frustration and stress when implementing. These seven musical views will help you to make it through the project.

 

One Vision

Every business change should start with a vision and a strategy. Defining the vision and keeping the vision alive is the responsibility of senior management. When it comes to PLM, the vision is crucial.

 

No more heroes

Of course, when implementing PLM, the target is to streamline the organization’s processes, eliminate bottlenecks and reduce dependencies on individuals. No more need for firefighters or other heroes because they fix or solve issues that appear due to the lack of processes and clarity.

 

Let´s do it together

PLM implementations are not IT-projects, where you install, configure and roll out an infrastructure based on one or more systems. Like a music band, it should be a well-orchestrated project between business experts and IT. Here´s a song to make your project swing.

 

Say NO at the right time

When implementing PLM, the software geeks can do everything for you: Customize the system, create a complete new environment looking like the old environment, and more. Of course, you will pay for it. Not only for the extra services, but also in the long-term to support all these customizations. Always try to find a balance between the standard functionality and infrastructure of the PLM system and the company´s vision. This means there are times you must Say NO to your users. Maybe not always as funny as these guys say it.

 

Eight days a week

During the PLM implementation and for sure after one of the several rollouts, changes may appear. And, normal work still needs to be done, sometimes in a different way. There will never be enough time to do everything perfect and fast, and it feels like you need more days in the week. When you are stressed, swing with these guys.

 

We are the champions

Then when the PLM project has been implemented successfully, there is a feeling of relief. It has been a tough time for the company and the PLM team. This should be the moment for the management to get everyone together in the stadium as an important change for the company´s future has been realized. Sing all together.

 

… But the times they are a-changing

Although a moment of relief is deserved, PLM implementations never end. The current infrastructure could be improved continuously due to better business understanding. However, globalization and digitalization will create new business challenges and opportunities at an extraordinarily fast pace. So, be aware and sing along with Bob.

 

BONUS

Time to close the 2016 book and look forward to next year’s activities. I wish all my readers happy holidays and a healthy, successful new year with a lot of dialogue, and no more one-liners.

 

See you in 2017 !!!!

BEST-NEXTThe past half-year I have been intensively discussing potential PLM roadmaps with companies of different sizes and different maturity in PLM. Some companies are starting their PLM journey after many years of discussion and trying to identify the need and scope, others have an old PLM implementation (actually most of the time it is cPDM) where they discover that business paradigms from the previous century are no longer sufficient for the future.

The main changing paradigms are:

  • From a linear product-driven delivery process towards an individual customer focused offering based on products and effective services, quickly -adapting to the market needs.
  • From a document-driven, electronic files exchange based processes and systems towards data-driven platforms supporting information to flow in almost real-time through the whole enterprise.

Both changes are related and a result of digitization. New practices are under development as organizations are learning how to prepare and aim for the future. These new practices are currently dominating the agenda from all strategic consultancy firms as you cannot neglect the trend towards a digital enterprise. And these companies need next practices.

I wrote about it in recent posts: PLM what is next? and What is Digital PLM?

And what about my company?

InnovationIt is interesting to see that most of the PLM implementers and vendors are promoting best practices, based on their many years of experience working having customers contributing to functionality in their portfolio.

And it is very tempting to make your customer feel comfortable by stating:

“We will implement our (industry) best practices and avoid customization – we have done that before!”

I am sure you have heard this statement before. But what about these best practices as they address the old paradigms from the past?

Do you want to implement the past to support the future?

Starting with PLM ? Use Best Practices !

If the company is implementing PLM for the first time and the implementation is bottom-up you should apply the old PLM approach. My main argument: This company is probably not capable/ready to work in an integrated way. It is not in the company´s DNA yet. Sharing data and working in a controlled environment is a big step to take. Often PLM implementations failed at this point as the cultural resistance was too big.

When starting with classical PLM, avoid customization and keep the scope limited.  Horizontal implementations (processes across all departments) have more success than starting at engineering and trying to expand from there. An important decision to make at this stage is 2D leading (old) or the 3D Model leading (modern). Some future thoughts: How Model-based definition can fix your CAD models. By keeping the scope limited, you can always evolve to the next practices in 5 -10 years (if your company is still in business).

Note 1: remark between parenthesis is a little cynical and perhaps for the timeframe incorrect. Still, a company working bottom-up has challenges to stay in a modern competitive global environment.

Note 2: When writing this post I got notified about an eBook available with the tittle Putting PLM within reach written by Jim Brown. The focus is on cloud-based PLM solution that require less effort/investments on the IT-side and as side effect it discourages customization (my opinion) – therefore a good start.

Evolving in PLM – Next Practices

Enterprises that have already a PDM/PLM system in place for several years should not implement the best practices. They have reached the level that the inhibitors off a monolithic, document based environment are becoming clear.

They (must) have discovered that changing their product offering or their innovation strategy now with partners is adding complexity that cannot be supported easily. The good news, when you change your business model and product offering, there is C-level attention. This kind of changes do not happen bottom-up.

Unfortunate business changes are often discussed at the execution level of the organization without the understanding that the source of all products or offering data needs to be reorganized too.   PLM should be a part of that strategic plan and do not confuse the old PLM with the PLM for the future.

InfoInContextThe PLM for the future has to be built upon next practices. These next practices do not exists out of the box. They have to be matured and experienced by leading companies. The price you pay when being a leader Still being a leader bring market share and profit  your company cannot meet when being a follower.

 

The Bi-modal approach

As management of a company, you do not want a disruption to switch from one existing environment to a new environment. Too much risk and too disruptive – people will resist – stress and bad performance everywhere. As the new data-driven approach is under development (we are learning), the end target is still moving.

Evolving using the old PLM system towards the new PLM approach is not recommended.  This would be too expensive, slow and cumbersome. PLM would get a bad reputation as all the complexity of the past and the future are here. It is better to start the new PLM with a new business platform and customer-oriented processes for a limited offering and connect it to your legacy PLM.

Over the years the new PLM will become more clear and grow where the old PLM will become less and less relevant. Depending on the dynamics of your industry this might take a few years till decades.

bimodal
Gartner calls this the bi-modal approach. A bi-model approach requires orchestration needs full management attention as the future is going to be shaped here.

It must and will be a business-driven learning path for new best practices

 

Conclusion

Best Practices and Next Practices are needed in parallel. Depending on the maturity and lack of sharing information in your company, you can choose. Consider the bi-modal approach to choose a realistic time path.

What do you think? Could this simplified way of thinking help your company?

The theme Best Practices or Next Practices is not new. Prof. Krusse talked about it already 9 years ago in a generic way. Unfortunate the recording is in German only

myplmSorry guys, I am aware of the fact that the definition of PLM is very ambiguous. Every vendor, implementor and probably PLM consultant has a favorite definition. Just to illustrate this statement,  read Brain Soaper´s recent post: What are the top 5 things to know about PLM ?

Interesting Brian starts with stating the definition of PLM is priority #1, however as you can see from the comment session, it is all about having inside your company a common definition of PLM.

And now I start writing about digital PLM, again a definition. You might have read in my blog about classical PLM and modern PLM.

Classical PLM

classical PLMFor me, classical PLM is the way PLM has been implemented in the past 15 years, often as an extension of engineering with the purpose of centralizing and sharing information.

In particular for CAD data, classical PLM is focusing on managing files in a controlled way, through check-in and check-out mechanisms. On top of file management, classical PLM provides more data-driven functionality, like project management, process governance (workflows / approvals / ECx processes) and BOM management (to link to ERP).

Classical PLM can still bring great benefits to a company as time for searching, paper-based processes and data retyping in ERP can be avoided, leading to reuse and fewer errors. The ROI time for a classical PLM implementation lays between two years to three years; my observations from the past. This time can still vary a lot as not every company or implementor/vendor uses the ideal approach to implement PLM, due to cultural issues, wrong expectations or lack of experience from both parties.

The connotations I have with classical PLM are:
linear, rigid, mechanical,(old) automotive, previous century

Modern PLM = Digital PLM

InfoInContextModern PLM is based on the vision that all information should be managed and stored as data objects, not necessary in a single system. Still the PLM infrastructure, using structured and unstructured data, should give each user in the organization with almost real-time information in context of other relevant information.

My non-stop blog buddy Oleg recently wrote a post in that context: Data as a platform & future manufacturing intelligence. Oleg is nicely describing some of the benefits of a data-driven approach.

Accenture provides insight with their infographic related to Digital PLM. Read it here as it is very concise and gives you a quick impression what Digital PLM means for an organization. Here is my favorite part, showing the advantages.

accenture digital PLM

The substantial advantages from digital PLM are all coming from the fact that information is stored as data objects, all having their individual versions, relations and status. The advantage of data elements is that they are not locked in a document or specific file format. Information can flow to where or whom needed without translation.

The connotations I have with digital PLM are:
real-time, data continuity, flexible, software and future.

 

Still some caution:

Reported ROI numbers for digital PLM are significant larger than classical PLM and I observed some facets of that. Digital PLM is not yet established and requires a different type of workforce. See other blog post I wrote about this theme: Modern PLM brings Power to the People.

But what about digital PLM – where is the word digital relevant ?

ETO – model-based engineering

Where to focus first depends very much on your company´s core business process. Companies with an Engineering To Order (ETO) process will focus on delivering a single product to their customer and most of the time the product is becoming more like a system, interacting with the outside world.

Big challenges in ETO are to deliver the product as required, to coordinate all disciplines preferable in a parallel and real-time manner – in time – on budget. Here a virtual model that can be accessed and shared with all stakeholders should be the core. The construction industry is introducing BIM for this purpose (a modern version of DMU). The virtual model allows the company to measure progress, to analyze and simulate alternatives without spending money for prototypes. In the ideal world engineering and simulation are done on the same model, not losing time and quality on data translations and iterations.

The virtual model linked to requirements, functions and the logical definition allows virtual testing – so much cheaper and faster and therefore cost efficient. Of course this approach requires a change in how people work together, which is characteristic for any digital business. Breakdown the silos.

Typical industries using the ETO model: Construction, Energy, Offshore, Shipbuilding, Special Equipment

 

CTO – model-based manufacturing

In a Configure To Order (CTO) business model you do not spend time for engineering anymore. All options and variants are defined and now the focus is on efficient manufacturing. The trend for CTO companies is that they have to deliver more and more variants in a faster and more demanding global market. Here the connectivity between engineering data and manufacturing data becomes one of the cornerstones of digital PLM. Digital PLM needs to make sure that all relevant data for execution (ERP and MES) is flowing through the organization without reformatting or reworking the data.

The digital thread is the dream. Industry 4.0 is focusing on this part. Also in the CTO environment it is crucial to work with a product model, so all downstream disciplines can consume the right data. Although in CTO the company´s attention might go to MES and ERP, it is crucial that the source of the product model is well specified and under control from (dgital) PLM.

Typical CTO industries are: Automotive, Consumer Goods, High-Tech, Industrial Equipment

BTO – models everywhere

flexibleIf your company has a Build To Order main delivery process, the optimum for digital PLM lies in the middle of ETO and CTO, depending on the type of products your company delivers.

In BTO there is always engineering to do. It can be customer specific engineering work (only once) or it can be changing/ adding new features to the product.

Modularity of the product portfolio might be the answer for the first option, where the second option requires strong configuration management on the engineering side, similar to the ETO model. Although the dream of many BTO companies is to change a CTO company, I strongly believe change in technology and market requirements will always be faster than product portfolio definition.

pointETO, BTO and CTO are classical linear business models. The digital enterprise is changing these models too. Customer interaction (myProduct), continuous upgrade and feedback of products (virtual twin), different business models (performance as a service) all will challenges organizations to reconsider their processes.

Digital PLM utilizing a model-based or model-driven backbone will be the (potential) future for companies as data can be flowing through the organization, not locked in documents and classical processes. In my upcoming blog post I will spend some more time on the model-based enterprise.

Conclusion:
It depends on your company´s core business process where the focus on a model-based enterprise supported by (digital) PLM benefits the most. In parallel business models are changing which means the future must be flexible.

Digital PLM should be one of your company´s main initiatives in the next 5 years if you want to stay competitive (or relevant)

 

What do you think ? Am I too optimistic or too pessimistic ?

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