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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 ?) !

 

 

 

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sleepWhen you are in a peaceful holiday accommodation close to the sea, it is about swimming, reading sleeping and food. I read two books this time Profit Beyond Measure from H. Thomas Johnson (2000) and Fast Future from David Burnstein (2013).

In a earlier post, PLM Statistics, I already referred to Johnson´s book. Now I had the time to read the whole book. Johnson is an advocate for MBM (Manage By Means) as compared to the most practiced MBM (Manage By Results) approach.

In Fast Future, Burnstein explains why his generation of Millennials (Generation Y) is not lazy and egocentric (etc. etc.) but different and ready for the future. Different from the Boomers, generation X and

These two books on two different topics have nothing in common you might think. But all you need is a PLM twisted brain, and it will be connected.

Let’s start with Profit Beyond Measure

ProfBeyMeasJohnson in his introduction explains how manufacturing companies were gradually pushed into a MBR approach (Manage By Results). The Second World War was the moment that companies started to use accounting information to plan business activities. The growing presence of accountants in business started due to more regulations and financial regulations. Corporate executives were educated by professors of accounting and finance how to use their accounting information to plan and control business activities.

The result (quoting Johnson):

“..teaching a new generation of managers to put aside understanding the concrete particulars of how business organizes work. They taught them instead to focus exclusively on abstract quantitative generalizations about financial results”

And as he writes a little later:

“The unique feature of the multidivisional organization was the introduction of a level of managers that had not existed before. Managers at this level ran what appeared to be self-standing, fully articulated multifunctional companies known as divisions. The manager of a division, however, reported to a top management group that represented in effect, the market for capital and the market for managers”

The PLM-twisted brain understands that Johnson is describing one of the major inhibitors for PLM. PLM requires departments and individuals TO SHARE and work CONCURRENT on information. Meanwhile, department and division leaders are trained, pushed and measured to optimize their silo businesses to deliver the right financial results. Executives above the management monitor the consolidated numbers and have the slightest understanding of the real business challenges PLM can solve. Here, innovative ways of working are not discussed; numbers (costs /ROI) are discussed.

image

To proceed with Johnson, he believes in MBM (Manage by Means). Manage by Means could be compared with the way an organic life system is behaving. Johnson describes it as:

“Every entity is focusing on doing work, not on manipulating quantitative abstractions about work. In a company this would mean every person’s activity will embody that most fundamental condition of natural life systems – namely that all knowing is doing and that all doing is knowing”

Although Johnson is focusing on manufacturing companies (Toyota and Scania as two major examples of MBM), the PLM-twisted mind reads this as a concept that matches the PLM vision.

Everything and everyone is connected to the process and having the understanding how to interpret the data and what do to. This is how I imagine PLM implementations. Provide the right information to every person not matter where this person is in the lifecycle of the product. Too much automation prevents the system to be flexible and adapt to changes an in addition, it does not challenge the user anymore to think.

Enough about Profit Beyond Measure, ending with a quote about Manage by Means:

…. which will bring a change in thinking for the next generation of managers more revolutionary than that which every previous generation has ever experienced”

Now the Fast Future

SNAGHTML4a6de0In Fast Future, David Burnstein talks about his generation, the Millennials, and how they are different. The Millennials are people who are now between 20 and 35. They grew up with one foot in the old analogue world and came to full wisdom in a digital, social connected manner during several shocking crises that formed their personality and behavior ( 9/11 – financial crisis – globalization – huge unemployment) according to Burnstein. People also referred to them as Generation Y.

In the context of this post we have the need to imagine four generations:

  • The Pré-boomers, who build up the economy after the second world war, and as we learned from Johnson who introduced the mechanical thinking for business (MBR – management by results)
  • The Boomers (my generation) who had the luxury to study and discuss the ultimate change for the world (make love not war), idealistic to change the world, but now most of us working in an MBR mode
  • Generation X, they introduced punk, skeptics. They are supposed to be cynical, very ego-centric and materialistic. I am sure they also have positive points, but I haven’t read a book about them and you do not meet Generation X in the context of a particular change to something new (yet)
  • Generation Y, the Millennials, who considered by the Boomers, is another lazy generation, all the time surfing the internet, not committing to significant causes, but seem to enjoy themselves. Burnstein in his book changes the picture as we will see below.

According to Burnstein the Millennials are forced to behave different as the traditional society is falling apart due to different crises and globalization. They have to invent a new purpose. And as they are so natural with all the digital media they can connect to anyone or any group to launch ideas, initiatives and build companies. The high unemployment numbers in their generation force them to take action and to become an entrepreneur, not always for profit but also for social or sustainable reasons.

imageThey understand they will have to live with uncertainty and change all their lives. No guaranteed job after education, no certain pension later and much more uncertainty. This creates a different attitude. You embrace change, and you do not go for a single dream anymore like many of the boomers did.

Choosing the areas that are essential for you and where you think you can make a significant impact become important. Burnstein points to several examples of his generation and the impact they already have on society. Mark Zuckerberg – Facebook founder is a Millennial, many modern social apps are developed by Millennials, Obama won the elections twice, due to the impact and connectivity of the Millennials generation, the Facebook revolutions in the Middle East (Tunisia / Egypt/Libya) al lead by desperate Millennials that want to make a change.

When reading these statements, I wondered:
Would there also be Millennials in Germany?

As in Germany the impact of 9/11, the financial crisis and unemployment numbers did not touch that much. Are they for that reason the same as generation X? Perhaps a German reader in the millennial age can provide an answer here?

What I liked about the attitude described by Burnstein is that the Millennials network together for a better cause, a meaningful life. This could be by developing products, offer different types of services all through a modern digital means. The activities all in the context of social responsibility and sustainability, not necessary to become rich.

As noticed, they think different, they work different and here Johnson’s quote came to my mind:

…. which will bring a change in thinking for the next generation of managers more revolutionary than that which every previous generation has ever experienced”

And the PLM-twisted brain started drifting

Is this the generation of the Millennials Johnson is hoping for? The high-level concept of Management by Means is based on the goal to have every entity directly linked to the cause – a customer order, flexibility, ability to change when needed. Not working with abstract mechanical models. I think the Millennials should be able to understand and lead these businesses.

This culture change and a different business approach to my opinion are about modern PLM. For me, modern PLM focuses on connecting the data, instead of building automated processes with a lot of structured data.

Modern PLM combines the structured and unstructured data and provides the user the right information in context. This matches the MBM way of thinking and the modus operandus of the Millennials.

Current the modern PLM system as I described is does not exist (or I haven’t seen it yet). Also I have not worked with Millennials in a leading role in a company. Therefore, I kept on dreaming during my holiday – everything is possible if you believe it –even standing on the water:

20-Beach Party

And although after reading these books and seeing the connection, you can have the feeling that you are able to walk on the water. There are also potential pitfalls (a minute later) ahead to be considered as you can see below:

21-Beach Party

Conclusion

My PLM-twisted mind as you noticed combines everything.

What do you think?

Did I hallucinate or is there a modern future for business and PLM.

I am looking forward to learning your dreams.

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