You are currently browsing the category archive for the ‘Data centric’ category.

As I am preparing my presentation for the upcoming PDT Europe 2017 conference in Gothenburg, I was reading relevant experiences to a data-driven approach. During PDT Europe conference we will share and discuss the continuous transformation of PLM to support the Lifecycle Model-Based Enterprise. 

One of the direct benefits is that a model-based enterprise allows information to be shared without the need to have documents to be converted to a particular format, therefore saving costs for resources and bringing unprecedented speed for information availability, like what we are used having in a modern digital society.

For me, a modern digital enterprise relies on data coming from different platforms/systems and the data needs to be managed in such a manner that it can serve as a foundation for any type of app based on federated data.

This statement implies some constraints. It means that data coming from various platforms or systems must be accessible through APIs / Microservices or interfaces in an almost real-time manner. See my post Microservices, APIs, Platforms and PLM Services. Also, the data needs to be reliable and understandable for machine interpretation. Understandable data can lead to insights and predictive analysis. Reliable and understandable data allows algorithms to execute on the data.

Classical ECO/ECR processes can become highly automated when the data is reliable, and the company’s strategy is captured in rules. In a data-driven environment, there will be much more granular data that requires some kind of approval status. We cannot do this manually anymore as it would kill the company, too expensive and too slow. Therefore, the need for algorithms.

What is understandable data?

I tried to avoid as long as possible academic language, but now we have to be more precise as we enter the domain of master data management. I was triggered by this recent post from Gartner: Gartner Reveals the 2017 Hype Cycle for Data Management. There are many topics in the hype cycle, and it was interesting to see Master Data Management is starting to be taken seriously after going through inflated expectations and disillusionment.

This was interesting as two years ago we had a one-day workshop preceding PDT Europe 2015, focusing on Master Data Management in the context of PLM. The attendees at that workshop coming from various companies agreed that there was no real MDM for the engineering/manufacturing side of the business. MDM was more or less hijacked by SAP and other ERP-driven organizations.

Looking back, it is clear to me why in the PLM space MDM was not a real topic at that time. We were still too much focusing and are again too much focusing on information stored in files and documents. The only area touched by MDM was the BOM, and Part definitions as these objects also touch the ERP- and After Sales-  domain.

Actually, there are various MDM concepts, and I found an excellent presentation from Christopher Bradley explaining the different architectures on SlideShare: How to identify the correct Master Data subject areas & tooling for your MDM initiative. In particular, I liked the slide below as it comes close to my experience in the process industry

Here we see two MDM architectures, the one of the left driven from ERP. The one on the right could be based on the ISO-15926 standard as the process industry has worked for over 25 years to define a global exchange standard and data dictionary. The process industry was able to reach such a maturity level due to the need to support assets for many years across the lifecycle and the relatively stable environment. Other sectors are less standardized or so much depending on new concepts that it would be hard to have an industry-specific master.

PLM as an Application Specific Master?

If you would currently start with an MDM initiative in your company and look for providers of MDM solution, you will discover that their values are based on technology capabilities, bringing data together from different enterprise systems in a way the customer thinks it should be organized. More a toolkit approach instead of an industry approach. And in cases, there is an industry approach it is sporadic that this approach is related to manufacturing companies. Remember my observation from 2015: manufacturing companies do not have MDM activities related to engineering/manufacturing because it is too complicated, too diverse, too many documents instead of data.

Now with modern digital PLM, there is a need for MDM to support the full digital enterprise. Therefore, when you combine the previous observations with a recent post on Engineering.com from Tom Gill: PLM Initiatives Take On Master Data Transformation I started to come to a new hypotheses:

For companies with a model-based approach that has no MDM in place, the implementation of their Product Innovation Platform (modern PLM) should be based on the industry-specific data definition for this industry.

Tom Gill explains in his post the business benefits and values of using the PLM as the source for an MDM approach. In particular, in modern PLM environments, the PLM data model is not only based on the BOM.  PLM now encompasses the full lifecycle of a product instead of initially more an engineering view. Modern PLM systems, or as CIMdata calls them Product Innovation Platforms, manage a complex data model, based on a model-driven approach. These entities are used across the whole lifecycle and therefore could be the best start for an industry-specific MDM approach. Now only the industries have to follow….

Once data is able to flow, there will be another discussion: Who is responsible for which attributes. Bjørn Fidjeland from plmPartner recently wrote: Who owns what data when …?  The content of his post is relevant, I only would change the title: Who is responsible for what data when as I believe in a modern digital enterprise there is no ownership anymore – it is about sharing and responsibilities

 

Conclusion

Where MDM in the past did not really focus on engineering data due to the classical document-driven approach, now in modern PLM implementations, the Master Data Model might be based on the industry-specific data elements, managed and controlled coming from the PLM data model

 

Do you follow my thoughts / agree ?

 

 

Advertisements

At this moment there are two approaches to implement PLM. The most common practice is item-centric and model-centric will be potentially the best practice for the future. Perhaps your company still using a method from the previous century called drawing-centric. In that case, you should read this post with even more attention as there are opportunities to improve.

 

The characteristics of item-centric

In an item-centric approach, the leading information carrier is an item also known as a part. The term part is sometimes confusing in an organization as it is associated with a 3D CAD part. In SAP terminology the item is called Material, which is sometimes confusing for engineering as they consider Material the raw material. Item-centric is an approach where items are managed and handled through the whole lifecycle. In theory, an item can be a conceptual item (for early estimates), a design item (describing the engineering intent), a manufacturing item (defining how an item is consumed) and potentially a service item.

The picture below illustrates the various stages of an item-centric approach. Don’t focus on the structure, it’s an impression.

It is clear these three structures are different and can contain different item types. To read more about the details for an EBOM/MBOM approach read these post on my blog:

Back to item-centric. This approach means that the item is the leading authority of the product /part. The id and revision describe the unique object in the database, and the status of the item tells you in the current lifecycle stage for the item. In some cases, where your company makes configurable products also the relation between two items can define effectivity characteristics, like data effectivity, serial number effectivity and more. From an item structure, you can find its related information in context. The item points to the correct CAD model, the assembly or related manufacturing drawings, the specifications. In case of an engineering item, it might point towards approved manufacturers or approved manufacturing items.

Releasing an item or a BOM means the related information in context needs to validated and frozen too. In case your company works with drawings for manufacturing, these drawings need to be created, correct and released, which sometimes can be an issue due to some last-minute changes that can happen. The above figure just gives an impression of the potential data related to an item. It is important to mention that reports, which are also considered documents, do not need an approval as they are more a snapshot of the characteristics at that moment of generation.

The advantages of an item-centric approach are:

  • End-to-end traceability of information
  • Can be implemented in an evolutionary approach after PDM-ERP without organizational changes
  • It enables companies to support sharing of information
  • Sharing of information forces companies to think about data governance
    (not sure if a company wants to invest on that topic)

The main disadvantages of an item-centric approach are:

  • Related information on the item is not in context and therefore requires its own management and governance to ensure consistency
  • Related information is contained in documents, where availability and access is not always guaranteed

Still, the item-centric approach brings big benefits to a company that was working in a classical drawing-driven PDM-ERP approach. An additional remark needs to be made that not every company will benefit from an item-centric approach as typically Engineering-to-Order companies might find this method creating too much overhead.

The characteristics of Model-Centric

A model-centric approach is considered the future approach for modern enterprises as it brings efficiency, speed, multidisciplinary collaboration and support for incremental innovation in an agile way. When talking about a model-centric approach, I do not mean a 3D CAD model-centric approach. Yes, in case the product is mature, there will be a 3D Model serving as a base for the physical realization of the product.

However, in the beginning, the model can be still a functional or logical model. In particular, for complex products, model-based systems engineering might be the base for defining the solution. Actually, when we talk about products that interact with the outside world through software, we tend to call them systems. This explains that model-based systems engineering is getting more and more a recommended approach to make sure the product works as expected, fulfills all the needs for the product and creates a foundation for incremental innovation without starting from scratch.

Where the model-based architecture provides a framework for all stakeholders, the 3D CAD model will be the base for a digital thread towards manufacturing. Linking parameters from the logical and functional model towards the physical model a connection is created without the need to create documents or input-files for other disciplines. Adding 3D Annotations to the 3D CAD model and manufacturing process steps related to the model provides a direct connection to the manufacturing process.

The primary challenge of this future approach is to have all these data elements (requirements, functions, components, 3D design instances, manufacturing processes & resources to be connected in a federated environment (the product innovation platform). Connecting, versioning and baselining are crucial for a model-centric approach. This is what initiatives like Industry 4.0 are now exploring through demonstrators, prototypes to get a coherent collection of managed data.

Once we are able to control this collection of managed data concepts of digital twin or even virtual twin can be exploited linking data to a single instance in the field.

Also, the model can serve as the foundation for introduction incremental innovation, bringing in new features.  As the model-based architecture provides direct visibility for change impact (there are no documents to study), it will be extremely lean and cost-efficient to innovate on an existing product.

Advantages of model-centric

  • End-to-end traceability of all data related to a product
  • Extremely efficient in data-handling – no overhead on data-conversions
  • Providing high-quality understanding of the product with reduced effort compared to drawing-centric or item-centric approaches
  • It is scalable to include external stakeholders directly (suppliers/customers) leading to potential different, more beneficial business models
  • Foundation for Artificial Intelligence at any lifecycle step.

Disadvantages of model-centric

  • It requires a fundamentally different way of working compared to past. Legacy departments, legacy people, and legacy data do not fit directly into the model-centric approach. A business transformation is required, not evolution.
  • It is all about sharing data, which requires an architecture that is built to share information across Not through a service bus but as a (federated) platform of information.
    A platform requires a strong data governance, both from the dictionary as well as authorizations which discipline is leading/following.
  • There is no qualified industrial solution from any vendor yet at this time. There is advanced technology, there are demos, but to my knowledge, there is no 100% model-centric enterprise yet. We are all learning. Trying to distinguish reality from the hype.

 

Conclusions

The item-centric approach is the current best practice for most PLM implementations. However, it has the disadvantage that it is not designed for a data-driven approach, the foundation of a digital enterprise. The model-centric approach is new. Some facets already exist. However, for the total solution companies, vendors, consultants, and implementers are all learning step-by-step how it all connects. The future of model-centric is promising and crucial for survival.

Do you want to learn where we are now related to a model-centric approach?
Come to PDT2017 in Gothenburg on 18-19th October and find out more from the experts and your peers.

PLM holiday thoughts

July and August are the months that privileged people go on holiday. Depending on where you live and work it can be a long weekend or a long month. I plan to give my PLM twisted brain a break for two weeks. I am not sure if it will happen as Greek beaches always have inspired for philosophers. What do you think about “PLM on the beach”?

There are two topics that keep me intrigued at this moment, and I hope to experience more about them the rest of the year.

Moving to Model-Based processes

I believe we all get immune for the term “Digital Transformation” (11.400.000 hits on Google today). I have talked about digital transformation in the context many times too. Change is happening. The classic ways of working were based on documents, a container of information, captured on paper (very classical) or captured in a file (still current).

As every stakeholder in a company (marketing, engineering, manufacturing, supplier, services, customers, and management) required a different set of information, many pieces of information all referring to the same product, have been parsed and modified into other documents.  It is costly and expensive to get a complete view of what is happening in the business. Meanwhile, all these information transformations (with Excel as the king) are creating an overhead for information management, both on IT-level and even more for non-value added resources who are manipulating information for the next silo/discipline.

What we have learned from innovative companies is that a data-driven approach, where more granular information is stored uniquely as data objects instead of document containers bring huge benefits. Information objects can be shared where relevant along the product lifecycle and without the overhead of people creating and converting documents, the stakeholders become empowered as they can retrieve all information objects they desire (if allowed). We call this the digital thread.

The way to provide a digital thread for manufacturing companies is to change the way they organize the product development and delivery processes. A model-based approach is required. I wrote about in a post: Digital PLM requires a Model-Based Enterprise a year ago. The term “Model-Based” also has many variations (67.800.00 hits on Google today). Some might consider the 3D MCAD Model at the center of information both for engineering and manufacturing.A good overview in the video below

Others might think about a behavior/simulation model of the product for simulating and delivering a digital twin often referred in the context of model-based design (MBD).

And ultimately a model-based approach integrated with systems engineering into Model-Based Systems Engineering (MBSE) allowing all stakeholders to collaborate in a data-driven manner around complex products based.

You can learn a lot about that during the upcoming PDT Europe conference on 18-19th October in Gothenburg. Concepts and experiences will be shared, and my contribution to the conference will be all about the challenges and lessons learned from the transformation process companies are embarking on becoming model-based.

PLM and ALM

A second topic that becomes more and more relevant for companies is how to combine the domains of product development and application software empowering these products. The challenge here is that we have no mature concepts yet for both domains. It reminds me of the early PDM implementations where companies implemented their PDM system for MCAD software and documents. All the electrical stuff was done disconnected in separate systems and somewhere in the product lifecycle information from MCAD and ECAD was merged in the bill of materials and documents. Mainly manually with a decent overhead for people consolidating the data.  Modern PLM systems have found best practices to manage a combination of mechanical and electronic components through an EBOM even connecting embedded software as an item in the BOM.

Now more and more the behavior and experience of products are driven by software. Sensors and connectivity of data are driving new capabilities and business models to the market. Customers are getting better connected, however also the companies delivering these solutions can act much faster now based on trends or issues experienced from the field.

The challenge, however, is that the data coming from the systems and the software defining the behavior of the products most of the time is managed in a separate environment, the ALM environment. In the ALM environment delivery of new solutions can be extremely fast and agile, creating a disconnect between the traditional product delivery processes and the software delivery processes.

Companies are learning now how to manage the dependencies between these two domains, as consistency of requirements and features of the products is required. Due to the fast pace of software changes, it is almost impossible to connect everything to the PLM product definition. PLM Vendors are working on concepts to connect PLM and ALM through different approaches. Other companies might believe that their software process is crucial and that the mechanical product becomes a commodity. Could you build a product innovation platform starting from the software platform which some of the old industry giants believe?

PLM combined with ALM concepts are the ones to follow, and I am looking forward to meeting the first company that has implemented a consistent flow between the world of hardware and software. So far there are many slide solutions, the reality and legacy at this moment are still inhibitors for the next step.

Conclusion

There is still a lot to discover and execute in the domain of PLM. Moving to a data-driven enterprise with all stakeholders connected is the challenging journey. Can we build robust concepts taking accuracy, security, and speed into account? I believe so, in particular when dreaming at the beach.

 

Bye for now

Last week I published a dialogue I had with Flip van der Linden, a fellow Dutchman and millennial, eager to get a grip on current PLM. You can read the initial post here: A PLM dialogue.  In the comments, Flip continued the discussion (look here).  I will elaborate om some parts of his comments and hope some others will chime in. It made me realize that in the early days of blogging and LinkedIn, there were a lot of discussions in the comments. Now it seems we become more and more consumers or senders of information, instead of having a dialogue. Do you agree? Let me know.

Point 1

(Flip) PLM is changing – where lies the new effort for (a new generation of) PLM experts.  I believe a huge effort for PLM is successful change management towards ‘business Agility.’ Since a proper response to an ECR/ECO would evidently require design changes impacting manufacturing and even after-sales and/or legal.  And that’s just the tip of the iceberg.

 

You are right, the main challenge for future PLM experts is to explain and support more agile processes, mainly because software has become a major part of the solution. The classical, linear product delivery approach does not match the agile, iterative approach for software deliveries. The ECR/ECO process has been established to control hardware changes, in particular because there was a big impact on the costs. Software changes are extremely cheap and possible fast, leading to different change procedures. The future of PLM is about managing these two layers (hardware/software) together in an agile way. The solution for this approach is that people have to work in multi-disciplinary teams with direct (social) collaboration and to be efficient this collaboration should be done in a digital way.

A good article to read in this context is Peter Bilello’s article: Digitalisation enabled by product lifecycle management.

 

(Flip) What seems to be missing is an ‘Archetype’ of the ideal transformed organization. Where do PLM experts want to go with these businesses in practice? Personally, I imagine a business where DevOps is the standard, unique products have generic meta-data, personal growth is an embedded business process and supply chain related risks are anticipated on and mitigated through automated analytics. Do you know of such an evolved archetypal enterprise model?

I believe the ideal archetype does not exist yet. We are all learning, and we see examples from existing companies and startups pitching their story for a future enterprise. Some vendors sell a solution based on their own product innovation platform, others on existing platforms and many new vendors are addressing a piece of the puzzle, to be connected through APIs or Microservices. I wrote about these challenges in Microservices, APIs, Platforms and PLM Services.  Remember, it took us “old PLM experts” more than 10-15 years to evolve from PDM towards PLM, riding on an old linear trajectory, caught up by a new wave of iterative and agile processes. Now we need a new generation of PLM experts (or evolving experts) that can combine the new concepts and filter out the nonsense.

Point 2

(Flip) But then given point 2: ‘Model-based enterprise transformations,’ in my view, a key effort for a successful PLM expert would also be to embed this change mgt. as a business process in the actual Enterprise Architecture. So he/she would need to understand and work out a ‘business-ontology’ (Dietz, 2006) or similar construct which facilitates at least a. business processes, b. Change (mgt.) processes, c. emerging (Mfg.) technologies, d. Data structures- and flows, e. implementation trajectory and sourcing.

And then do this from the PLM domain throughout the organization per optimization.  After all a product-oriented enterprise revolves around the success of its products, so eventually, all subsystems are affected by the makeup of the product lifecycle. Good PLM is a journey, not a trip. Or, does a PLM expert merely facilitates/controls this enterprise re-design process? And, what other enterprise ontologism tools and methods do you know of?

Only this question could be a next future blog post. Yes, it is crucial to define a business ontology to support the modern flow of information through an enterprise. Products become systems, depending on direct feedback from the market. Only this last sentence already requires a redefinition of change processes, responsibilities. Next, the change towards data-granularity introduces new ways of automation, which we will address in the upcoming years. Initiatives like Industry 4.0 / Smart Manufacturing / IIoT all contribute to that. And then there is the need to communicate around a model instead of following the old documents path. Read more about it in Digital PLM requires a Model-Based Enterprise. To close this point:  I am not aware of anyone who has already worked and published experiences on this topic, in particular in the context of PLM.

 

Point 3

(Flip) Where to draw the PLM line in a digital enterprise? I personally think this barrier will vanish as Product Lifecycle Management (as a paradigm, not necessarily as a software) will provide companies with continuity, profitability and competitive advantage in the early 21st century. The PLM monolith might remain, but supported by an array of micro services inside and outside the company (next to IoT, hopefully also external data sets).

I believe there is no need to draw a PLM line. As Peter’s article: Digitalisation enabled by product lifecycle management already illustrated there is a need for a product information backbone along the whole (circular) lifecycle, where product information can interact with other enterprise platforms, like CRM, ERP and MES and BI services. Sometimes we will see overlapping functionality, sometimes we will see the need to bridge the information through Microservices. As long as these bridges are data-driven and do not need manual handling/transformation of data, they fit in the future, lean digital enterprise.

Conclusion:

This can be an ongoing dialogue, diving into detailed topics of a modern PLM approach. I am curious to learn from my readers, how engaged they are in this topic? Do you still take part in PLM dialogues or do you consume? Do you have “tips and tricks” for those who want to shape the future of PLM?


Let your voice be heard! (and give Flip a break)

 

simple

In my previous post, I shared my thoughts Why PLM is the forgotten domain in digital transformation. Legacy data, (legacy) people and slow organizations are the main inhibitors to moving forward. Moreover, all this legacy makes it hard to jump on the digital wagon.

When you talk with vendors and implementers of PLM solutions, they will all focus on the fact that with their solution and support PLM is simple. It is simple because:plm-vendor_thumb.jpg

  • We have the largest market share in your industry segment
  • We have the superior technology
  • We are cloud-based
  • We are insane customizable
  • Gartner is talking about us
  • We have implemented at 100+ similar companies

For my customers, implementing PLM was never simple as every PLM implementation was driving a business change. In the early days of SmarTeam, we had the theme “We work the way you work”, which is in hindsight a very bad statement. You do not want to automate the way a company is currently working. You want to use a PLM implementation to support a business change.

Never implement the past, implement the future

And there are changes ……

When I was discussing PLM with my potential customers ten years ago, the world was different. PLM was in a transition from being a PDM-tool from engineering into an extended PDM-tool centered around product development. A major theme for this kind of implementations was to move from a document-driven environment towards an item-centric environment. Instead of managing documents (CAD files and other files like Excel) the implementation was based on providing a data continuity, where the item (the physical part or in SAP terms the material) would be the main information placeholder. The continuity is implemented around EBOMs and MBOMs and thanks to automation the MBOM can be connected to the ERP system in a continuous flow.

Just search for item-centric or BOM-centric, and you will find many references from vendors and consultants for this approach.  Implementing PLM item-centric is already a big step forward in efficiency and quality for companies. However,…

Never implement the past, implement the future

And there will be changes …..

youtube

Digital Transformation & PLM on YouTube

Digital transformation is changing the way we do business and is changing the way companies should organize their data. A BOM-centric approach is no longer the ultimate implementation concept. To support a digital enterprise, the next step is a model-based enterprise. The model (not necessary the 3D-model) and its maturity and configurations are intended to be the reference for an organization. The model and its representation can connect hardware and software in a data-driven environment through the whole lifecycle. A model is needed to support smart manufacturing and the digital twin concept.There are many impressive marketing movies on YouTube explaining how companies/vendors implement digital continuity. Unfortunate the gap between marketing and reality is big at this time because moving to a model based enterprise is not an easy step. Coming back to the LEGACY-statement at the beginning of this post, it is not simple.

We all have to learn

PDT2017Digital transformation is just starting in the domain of PLM. Sharing and collecting knowledge is crucial, independent from particular solutions. For me, the upcoming PDT-conference in October is going to be a reference point where we are on this journey. In case your company has the experience to share related to this topic, please react to this link: http://pdteurope.com/call-for-abstract-now-open/

In case you want to learn and believe it is not simple, wait till the program it will be announced. The PDT conference has always been a conference where details are discussed. Looking forward and discuss with you.

Conclusion

Implementing and continuing with PLM is not simple for a company due to changes in paradigms. Digital transformation forces companies to investigate the details how to make it happen. Implementing PLM in scope of a digital transformation requires learning and time, not products first.

A month ago I attended PI Berlin 2017 and discussed how digital transformation should affect PLM. You can find the presentation here on Slideshare.  One of the conclusions of my presentation was that PLM is the forgotten domain in digital transformation, which lead to the tweet below from Nick Leeder from SKF.

PI-tweet

I am from the generation who believes answering complex issues through tweets is not a best practice. Therefore, I dedicate this post to answer Nick’s question.

Digital Transformation

OldTicket.pngA digital enterprise is the next ultimate dream after the paperless office. Where the paperless office was focusing on transforming paper-based information into electronic information, there was not a mind-shift in the way people could work. Of course, when information became available in an electronic format, you could easily centralize it and store in places accessible to many others. Centralizing and controlling electronic information is what we did in the previous century with document management, PDM, and classical PLM.  An example: your airline ticket now provided as a PDF-file – electronic, not digital.

This process is not a digital transformation

dig_ticketDigital Transformation means that information is broken down into granular information objects that can be stored in a database in the context of other information objects. As they have a status and/or relation to other information objects, in a certain combination they bring, in real-time, relevant information to a user. The big difference with electronic information is that the content does not need a person to format, translate or pre-process the data. An example: your boarding app, showing the flight, the departure time, the gate all in real-time. If there is a change, you are immediately updated.

 

Digital Transformation for an enterprise

In a digital enterprise, information needs to be available as granular information objects related to each other providing the end-to-end continuity of data. End-to-end continuity does not mean that all data is stored in a single environment. The solution can be based on digital platforms working together potentially enriched by “micro-services” to cover specific gaps the digital platforms do not deliver.

ERP platformERP systems by nature have been designed to be digital. Logistical information, financial information, part information for scheduling, etc., all is managed in database tables, to allow algorithms and calculations to take place in real-time. Documents are generated to store snapshots of information (a schedule / a report), or there are pointers to documents that should contain digital, unmanaged information, like contracts, drawings, models. Therefore, the digital transformation does not impact ERP so much.

IOTCustomer connected platforms are a typical new domain for manufacturers, as this is where the digital transformation takes place in business. Connecting either to your products in the field or connecting to your consumers in the market have been the typical business changes almost every manufacturer is implementing, thanks to IoT and thanks to global connectivity. As this part of the business is new for a company, there is no legacy to deal with and therefore exciting to present to the outside world and the management.

The problem of legacy

And here comes the problem why companies try to neglect their PLM environments. There is so much legacy data, stored in documents (electronic formats) that cannot be used in a digital PLM environment. Old PLM quality processes were about validating documents, the container of information, not about the individual information objects inside the document. And when information changes, there is no guarantee the document is going to be updated, due to economic reasons (time & resources)

IntNumber.jpgTo give an example. A year ago I wrote a post:  The Impact of Non-Intelligent Part Numbers where I explained in a digitally connected enterprise part numbers no longer need to have a meaning. As long as they are unique throughout the enterprise, automation will take care PLM, and ERP are connected. In one of the comments to this post, a reader mentioned that they were implementing now non-intelligent numbers in their company and the ERP consultant recommended to renumber all the old part numbers to have a clean start. From the ERP point of view, no issue. The consultant probably never had learned about the fact that part numbers are used in drawings, instructions, spare part manuals, which are all documents in the engineering domain. Renumbering them would be a waste of resources and money, just to have a “pure” part number. In the world of PLM, you have to deal with legacy.

The need for business transformation

Companies currently do not fully recognize that the old way of working in PLM, based on a document-driven approach, is not compatible with a modern data-driven approach. The old approach makes documents the formal decision carrier for product information. Documents are reviewed and approved and once approved stored. When information is changing, documents are most of the time not updated due to the cost of maintaining all these versions of documents in the context of the related products. Documents lock information and do not guarantee the information inside the document remains actual.

In a data-driven environment, we work in a much more granular manner, directly with the data. Working data-driven reduces the need for people in the organization to collect and transform information into documents for further communication.

GartnerWorkforce

As both approached do not match in a single business process or a single PLM system, the challenge for companies is to decide how to keep the old environment available and meanwhile introducing the new data-driven approach for PLM. Customizing this upon your old PLM environment would be a problem for the future as customizations are hard to maintain, in particular, if these are the customizations that need to support the future.

Building everything in a new environment, designed for a data-driven approach, will also be a guarantee for failure. The old data, stored in documents, does not have the granular quality a data-driven environment needs.

Combined with the fact that different people will be needed to support old or new businesses, the topic of solving PLM for the future is not an easy one.

And when things are not easy, it is hard to find the right support for changes. Management usually does not spend enough time to understand the big picture; politics come into play.

Unfortunately, it’s usually safer and better for one’s career to cut costs a little further than to try to hit the rare innovation homerun

Quote from Political Realities of PLM-Implementation Projects in Engineering.com

Conclusion

Why PLM is the forgotten domain in digital transformation is quite understandable, although it requires more than a tweet to picture the full story.  Understanding the reasons is the first step, making PLM part of the digital transformation is the main challenge – who has the energy and power to lead?

GettyImages-157335388[1]Last week I shared my observation from day 1 of the PI Berlin 2017 conference. If you have not read this review look here: The weekend after PI Berlin 2017.

Day 1 was the most significant day for me. I used the second day more for networking and some selective sessions that I wanted to attend. The advantage for the reader, this post is not as long as the previous one. Some final observations from day 2

PLM: The Foundation for Enterprise Digitalization

Peter Bilello from CIMdata gave an educational speech about digitalization and the impact of digitalization on current businesses. Peter considers digitalization as a logic next step in the PLM evolution process. See picture below.

clip_image002

Although it is an evolution process, the implementation of this next step requires a revolution. Digitalization will create a disruption in companies as the digital approach will reshape business models, internal business processes, roles and responsibilities. Peter further elaborated on the product innovation platform and its required characteristics. Similar to what I presented on the first day Peter concluded that we are in a learning stage how to build new methodology/infrastructure for PLM. For example, a concept of creating and maintaining a digital twin needs a solid foundation.
His conclusion: Digitalization requires PLM:

Boosting the value of PLM through
Advanced Analytics Assessment

autolivPaul Haesman from Autoliv introduced the challenges they have as a typical automotive company. Digitalization is reshaping the competitive landscape and the demands on more technology, still guaranteeing the highest safety levels of their products. In that context, they invited Tata Technologies to analyze their current PLM implementation and from there to provide feedback about their as-is readiness for the future.

Chris Hind from Tata Technologies presented their methodology where they provide benchmark information, a health check, impact and potential roadmap for PLM. A method that is providing great insights for both parties and I encourage companies that haven´t done such an assessment to investigate in such an activity. The major value of a PLM assessment is that it provides an agreed baseline for the company that allows management to connect the Why to the What and How. Often PLM implementations focus on What and How with not a real alignment to the Why, which results in unrealistic expectations or budgets due to the perceived value.

clip_image004

An interesting point address by Chris (see picture above) is that Document Management is considered as a trending priority !!!

It illustrates that digitalization in PLM has not taken off yet and companies still focusing on previous century capabilities 😦

The second highlight rating Manufacturing Process Management as the most immature PLM pillar can be considered in the same context. PLM systems are still considered engineering systems and manufacturing process management is in the gray area between PLM systems and ERP systems.

The last two bullets are clear. The roots of PLM are in managing quality and compliance and improving time to market.

Overcoming integration challenges –
Outotec´s Digital Journey

Outotec_RGBHelena Gutiérrez and Sami Grönstand explained in an entertaining manner the Outotec (providing technologies and services for the metal and mineral processing industries) company and their digital journey. Outotec has been working already for several years on simplifying their IT-landscape meanwhile trying to standardize in a modern, data-driven manner the flow of information.

Sami provided with great detail how the plant process definition is managed in PLM. The process definition is driven by the customer´s needs and largely defines the costs of a plant to build. Crucial for the quotation phase but also important if you want to create a digital continuity. Next, the process definition is further detailed with detailed steps, defining the key parameters characteristics of the main equipment.

ElephantAndAnts

And then the challenge starts. In the context of the plant structure, the right equipment needs to be selected. Here it is where plant meets product or as the Outotec team said where the elephant and ants do the tango.

In the end, as much as possible standardized products need to match the customer specific solution. The dream of most of these companies: combining Engineering To Order and Configure To Order and remember this in the context of digital continuity.

So far, a typical EPC (Engineering Procurement Construction) project, however, Outotec wants to extend the digital continuity to support also their customer´s installed plant. I remembered one of their quotes for the past: “Buy one (plant) and get two (a real one and a virtual one). “This concept managed in a digital continuity is something that will come up in many other industries – the digital twin.

clip_image008

Where companies like Outotec are learning to connect all data from the initiation of their customer specific solution through delivery and services, other product manufacturing companies are researching the same digital continuity for their product offerings to the field of consumers. Thanks to digitization these concepts become more and more similar. I wrote about this topic recently in my post PLM for Owner/Operators.

Final conclusion from PI Berlin 2017

It is evident participants and speakers are talking about the strategic value and role PLM can have an organization.

With digitalization, new possibilities arise where the need and value for end-to-end connectivity pop up in every industry.

We, the PLM community, are all learning and building new concepts. Keep sharing and meeting each other in blogs, forums, and conferences.

clip_image002It is already the 6th consecutive year that MarketKey organized the Product Innovation conference with its primary roots in PLM. For me, the PI conferences have always been a checkpoint for changes and progress in the field.

This year about 100 companies participated in the event with the theme: Digital Transformation. From Hype to Value? Sessions were split into three major streams: digital transformation, extended PLM, and Business Enabled Innovation larded with general keynote speeches. I wanted to attend all sessions (and I will do virtually later through PI.TV), but in this post, my observations are from the event highlights from the extended PLM sessions.

From iCub to R1

ittGiorgio Metta gave an overview of the RobotCub project, where teams are working on developing a robot that can support human beings in our day-to-day live. Some of us are used to industrial robots and understand their constraints. A robot to interact with human beings is extreme more complex, and its development is still in the early stages. This type of robot needs to learn and interpret its environment while remaining accurate and safe for the persons interacting with the robot.

One of the interesting intermediate outcome from the project is that a human-like robot with legs and arms is far too expensive and complicated to handle. Excellent for science fiction movies, but in reality too difficult to control its balance and movements.

This was an issue with the iCUB robot. Now Giorgio and the teams are working on the new R1 robot, maybe not “as-human” as the iCUB robot, but more affordable. It is not only the mechanics that challenge the researchers. Also, the software supporting the artificial intelligence required for a self-learning and performing safe robot is still in the early days.

clip_image004

An inspiring keynote speech to start the conference.

Standardizing PLM Components

The first Extended PLM session was Guido Klette (Rheinmetall), describing the challenges the Rheinmetall group has related to develop and support PLM needs. The group has several PLD/PLM-like systems in place. Guido does not believe in one size fits all to help every business in the group. They have already several PLM “monsters” in their organization. For more adequate support, Rheinmetall has defined a framework with PLM components and dependencies to a more granular choice of functionality to meet individual businesses.

Rheinmetal components

A challenge for this approach, identified by a question from the audience, is that it is a very scientific approach not addressing the difference in culture between countries. Guido agreed and mentioned that despite culture, companies joining the Rheinmetall group most of the time were happy to adhere to such a structured approach.

My takeaway: the component approach fits very well with the modern thinking that PLM should not be supported by a single “monster” system but can be addressed by components providing at the end the right business process support.

PLM as a business asset

husqvarnagroupBjörn Axling gave an excellent presentation describing the PLM perspective from the Husqvarna group. He addressed the external and internal challenges and opportunities for the group in a structured and logical approach which probably apply for most manufacturing companies in a global market. Björn explained that in the Husqvarna group PLM is considered as a business approach, more than ever, Product Lifecycle Management needs to be viewed as the DNA of a company which was the title of one of his slides.

Husqvarna

I like his eleven key imperatives (see the above picture) in particular key imperative #9 which is often forgotten:

Take definitions, nomenclature and data management very seriously – the devil is in the details.

This point will always fire back on you if you did not give it the needed attention from the start. Of course, the other ten points are also relevant. The challenge in every PLM project is to get these points addressed and understood in your company.

How to use PLM to enable Industry 4.0?

EignerMartin Eigner´s presentation was building upon his consistent messages that PDM and PLM should be evolving into SysML with a growing need for Model-Based Systems Engineering (MBSE) support.

The title of the presentation was related to Industry 4.0 more focusing on innovation in for Germany´s manufacturing industry. Germany has always been strong in manufacturing, not so strong in product innovation. Martin mentioned that later this year the German government will start another initiative, Engineering 4.0, which should be exciting for our PLM community.

Martin elaborated on the fact that end-to-end support for SysLM can be achieved through a backbone based on linked data. Do not try to solve all product information views in a single system is the lesson learned and preached.

Eigner-Bimodal

For me, it was interesting to see that also Martin picked up on the bimodal approach for PLM, required to support a transition to a modern digital enterprise (see picture). We cannot continue to build upon our old PLM environments to support, future digital businesses.

PLM and Digital Transformation

In my afternoon session (Jos Voskuil), I shared the observations that companies invest a lot in digital transformation downstream by introducing digital platforms for ERP, CRM, MES and Operations. PLM is often the forgotten platform that needs to change to support a digital enterprise with all its benefits. You can see my presentation here on SlideShare. I addressed here the bimodal approach as discussed in a previous blog post, introduced in Best Practices or Next Practices.

TacitBerlin2017Conclusions

In case your company is not ready yet for a digital transformation or bimodal approach I addressed the need to become model-driven instead of document-driven. And of course for a digital enterprise, the quality of the data counts. I wrote about these topics recently: Digital PLM requires a Model-Based Enterprise and The importance of accurate data: ACT NOW!

Closed-Loop PLM

The last extended PLM presentation from day 1 was given by Felix Nyffenegger, professor for PLM/CAx at HSR (University of Applied Science in Rapperswil (CH)). Felix shared his discovery journey into Industry 4.0, and IoT combined with experiences from the digitalLab@HSR, leading into the concept of closed-loop PLM.

ClosedLoop

I liked in particular how Felix brought the various views on the product together into one diagram, telling the full story of closed-loop PLM – necessary for a modern implementation framework.

A new age for airships

The last presentation of the day was from Chris Daniels describing the journey of Hybrid Air Vehicles with their Airlander 10 project. Where the classical airships, the most infamous perhaps the Hindenburg, have disappeared due to their flaws, the team of Hybrid Air Vehicles built upon the concept of airships in a defense project with the target to deliver a long endurance multi-intelligence vehicle. The advantage of airships is that they can stay in the air for several days, serving as communication hotspot, communication or rescue ship for places hard to reach with traditional aircraft or helicopter. The Airlander can be operation without going back to a base for 5 days, which is extremely long when you compare this to other aircraft.

airlander

The Airlander project is a typical example of incremental innovation used to optimize and extend the purpose of an airship. Combined with the fact that Chris was an excellent speaker made it a great closure of the day

Conclusion

This post is just an extract of one day and one stream of the conference. Already too large for a traditional blog post. Next week I will follow-up with day two and respond beyond 140 characters to the tweet below:

WhyNotInPLM

 

clip_image001The past year I have written about PLM in the context of digital transformation, relevant for companies that deliver products to the market. Some years ago, I have advocated the value of a PLM infrastructure for EPC companies and Owners/Operators of a plant.

EPC stands for Engineering, Construction, and Procurement, a typical name for often large capital-intensive projects, executed by a consortium of companies. Together they create buildings, platforms, plants, infrastructure and more one-off deliveries, which will be under control of the Owner/Operator after going-live.

Some references:

2014 EPC related: The year the construction industry did not discover PLM

2013 Owner/Operators related: PLM for all industries?

As you can see from the dates, these posts are not the most recent posts. Meanwhile, EPC-based businesses are discovering the value of a PLM infrastructure. Main component for them is BIM (Building Information Model or Building Information Management) and they use cloud-based collaboration environments to be more cost-efficient. Slowly these companies are moving to a single repository of the data supporting multidisciplinary collaboration related to a BIM model to guarantee a continuity of data and better execution. I am positive about EPC companies that are discovering the value of PLM- It might be slightly different from classical product-selling companies, mainly because data ownership is different. In an EPC environment many companies are responsible for parts of the data and each of them keeps the real knowledge as IP (Intellectual Property) for themselves. They only “publish” deliverables. For companies that deliver products to the market, the OEM keeps responsibility for all relevant product information and h has a different strategy.

 

clip_image003I worked in the past with one of my peers, Bjorn Fidjeland (www.plmpartner.com) on PLM for EPCs and Owner/Operators. We share the same passion to bring PLM outside traditional industries. As Bjorn is now more active than I am in this domain, I recommend to read Bjorn´s posts on this topic. For example:

EPC related 2016: Handover to logistics and supply chain in capital projects

Owner/Operators 2015: Plant Information Management – Information Structures

Bjorn provides a lot of details, which are important as implementing PLM for EPCs or Owner/Operators requires different data structures. I wrote about these concepts in 2014 in two posts – PLM and/or SLM ?  post 1 and post 2. At that time not realizing the virtual twin was becoming popular.

PLM complementary to EAM

The last year I have explored these concepts together with (potential) Owner/Operators of a plant, where PLM would be complementary to their EAM system. In the world of Owner/Operators, Enterprise Asset Management (EAM) software is the major software these companies use. You find some of the major EAM players here.

You will discover that all these software suites are good for plant operations, but they all have a challenge to support data consistency and quality in particular when dealing with plant changes and efficient, high-quality  plant information management. Versioning and status management, typical PLM capabilities are often not there.

Owner/Operators have challenges with EAM environments as:

  • EAM systems are designed to support an as-operated environment, assuming all data it correct. Support for Maintenance, Repair or Overhaul projects is often rudimentary and depending on document-driven processes. The primary business process of these companies is producing continuously, such as, electricity or chemicals. Therefore typical engineering projects to change or enhance the main production process do not have the same financial focus.
  • A document-driven approach is the de facto standard common for these industries. Most of the time because the plant has been established through an EPC approach, which was 100 % document-driven due to the different disconnected disciplines/tools working at that time in the EPC project. As the asset information is stored and delivered in documents, most owners/operators keep the document-driven approach for future change projects.

Owners/operator can benefit significantly from a data-driven PLM system as complementary infrastructure to their EAM system. The PLM system will be the source for accurate asset information, manage the change and approvals for the assets and ultimately push the new released information to the EAM system. The PLM system will offer the full history an traceability of decisions made, important for regulatory bodies or insurance companies.

.A data-driven approach for asset information allows owners/operators to benefit from efficient processes, reducing strongly the amount of people required to process data (documents) or reducing the time for people working in maintenance and operations to search for data. I found a nice slide from IBM explaining the concept of PLM an EAM collaboration – see below:

clip_image005

The same benefits modern digital enterprises will have related to a data-driven approach will come available for owner/operators. Operational management is supported by the EAM system combined with real-time capabilities provided by a modern PLM systems to analyze, design and deliver changes to the plant without a costly data conversion process (e.g. compiling new documents) and disconnected processes.

Moving to a virtual twin

clip_image007Interesting enough the digital transformation is bringing the concepts of connecting engineering, manufacturing and operations together into an infrastructure of digital platforms interacting together. Where owners/operators historically do not focus on optimizing the engineering process to build and maintain their assets, in the “classical” industries companies were not really focusing on how products behaved in the field after they were delivered. With digital continuity (the digital thread) and IoT now these “classical” companies can connect to their products in the field. Their products become assets of information, and in case these companies change their business offering into leasing products and services, these assets become managed assets, like the assets owner/operators are managing.

The concept of a virtual twin (or digital twin – image proprietary of GE) , where a virtual model-based environment is linked to one or more real instances in operations, is the dream of all industries. Preparing, Simulating and verifying changes in a virtual world is so much more efficient and cheaper that is allows for higher quality of products and in the case of plant operators higher safety will be the number one topic.

Conclusion

What I have learned so far from plant owners/operators is that they are struggling to grasp a modern digital enterprise concept as their current environment is not model-based but document-driven. Starting with PLM to complement their EAM system could be a first step to understand the value and business benefits of digital continuity. It requires a new way of thinking which is not a commodity at this time. It will happen in the next 5 to 10 years. Expect it to be driven by the realization of virtual twins in the industry and further BIM maturity. The future is model-based !!!

p.s. I am happy to announce WordPress provided a new feature to my blog. In the side panel you can now choose your language (based on Google Translate) if you have difficulties with English. Enjoy !

changeRecently, I have written about classical PLM (document-driven and sequential) and modern PLM (data-driven and iterative) as part of the upcoming digital transformation that companies will have to go through to be fit for the future. Some strategic consultancy companies, like Accenture, talk about Digital PLM when referring to a PLM environment supporting the digital enterprise.

 

From classical PLM to Digital PLM?

The challenge for all companies is to transform their businesses to become customer-centric and find a transformation path from the old legacy PLM environment towards the new digital environment. Companies want to do this in an evolutionary mode. However my current observations are that the pace of an evolutionary approach is too slow related to what happens in their market. This time the change is happening faster than before.

A Big Bang approach towards the new environment seems to be a big risk. History has taught us that this is very painful and costly. To be avoided too. So what remains is a kind of bimodal approach, which I introduced in my recent blog posts (Best Practices or Next Practices). Although one of my respected readers and commenters Ed Lopategui mentioned in his comment (here) bimodal is another word for coexistence. He is not optimistic about this approach either

So, what remains is disruption?

And disruption is a popular word and my blog buddy Oleg Shilovitsky recently dived into that topic again with his post: How to displace CAD and PLM industry incumbents. An interesting post about disruption and disruption patterns. My attention was caught by the words: digital infrastructure.
I quote:

How it might happen? Here is one potential answer – digital infrastructure. Existing software is limited to CAD files stored on a desktop and collaboration technologies developed 15-20 years using relational database and client-server architecture.

Digital Infrastructure

imageAs I mentioned the words, Digital Infrastructure triggered me to write this post. At this moment,  I see companies marketing their Digital Transformation story in a slick way, supported by all the modern buzz words like; customer-centric, virtual twin and data-driven. You would imagine as a PLM geek that they have already made the jump from the old document-driven PLM towards modern digital PLM. So what does a modern digital PLM environment look like ?

The reality, however, behind this slick marketing curtain, is that there are still the old legacy processes, where engineers are producing drawings as output for manufacturing. Because drawings are still legal and controlled information carriers. There is no digital infrastructure behind the scenes. So, what would you expect behind the scenes?

Model-Based Definition as part of the digital infrastructure

Crucial to be ready for a digital infrastructure is to transform your company´s product development process from a file-based process where drawings are leading towards a model-based enterprise. The model needs to be the leading authority (single source of truth) for PMI (Product Manufacturing Information) and potentially for all upfront engineering activities. In this case, we call it Model-Based Systems Engineering sometimes called RFLP (Requirements-Functional-Logical-Product), where even the product can be analyzed and simulated directly based on the model.

A file-based process is not part of a digital infrastructure or model-based enterprise architecture. File-based processes force the company to have multiple instances and representations of the same data in different formats, creating an overhead of work to keep up quality and correctness of data, that is not 100 % secure. A digital infrastructure works with connected data in context.

econimistTherefore, if your company is still relying on drawings and you want to be ready for the future, a first step towards a digital infrastructure would be fixing your current processes to become model-based. Some good introductions can be found here at ENGINEERING.com – search for MBD and you will find:

Moving to Mode-Based is already a challenging transformation inside your company before touching the challenge of moving towards a full digital enterprise, through evolution, disruption or bimodal approach – let the leading companies show the way.

Conclusion

Companies should consider and investigate how to use a Model-Based Engineering approach as a first step to becoming lean and fit for a digital future. The challenge will be different depending on the type of industry and product.
I am curious to learn from my readers where they are on the path to a digital enterprise.

%d bloggers like this: