It was a pleasure to participate this last week in the PI DX USA conference for several reasons. First, because Marketkey has been able to organize the event in the same manner as before. Meaning presentations, networking meetings, and roundtable discussions. Virtual, of course, however, in the same spirit. Secondly, the 3-day event took place during a late afternoon for Europe lasted 4 – 5 hours per day, allowing a larger audience to learn from each other. Before we had the European viewpoints and American viewpoints separate, now we had the chance to discuss and listen together. A single version of the truth!
A few highlights of the sessions that I attended. There was enough to choose from if you look at the agenda from these three days.
Creating a Digital Enterprise: What are the Challenges and Where to Start?
The conference started with a panel discussion lead by David Sherburne. The three panelists came from entirely different industries Jaswinder Walia, CIO Engineering, GE Aviation, Erik Olson, VP Product Innovation and Development, Crocs and Samuli Savo, SVP Product Management & Innovation, Stora Enso. It was interesting to see the commonalities and differences between these companies, all working towards a digital enterprise.
David’s last question was about getting advice from these gentlemen.
What mistakes to avoid and what to share?
Jaswinder: The mistake of doing too much analysis paralyzed the organization. Sometimes you need to move ahead and adapt during the journey – do not wait. Sometimes there is too much focus on the quality of a business solution and not enough attention to the flow of information
Eric: COVID-19 was THE success. It pushed people to work with digital tools. They had immediately proof points delivering a deal within 6 weeks.
Samuli: The success is in funding ideas. Samuli had a more extended session on this topic during the event. Do not invest in long time projects – visible success is needed in a few months, not in 1 year.
Probably I liked these three pieces of advice so much as it is the same as what I am advising companies. Moving from a traditional PLM-approach towards a more model-based approach. Instead of waiting and looking till others master this topic, start learning (small) and make sure you make progress. Learning is crucial for a digital transformation in the PLM-domain.
What is Stopping Manufacturers from Implementing Industry 4.0
This roundtable session was structured by Gavin Hill and Jonathan Bray, both from the AMRC (Advanced Manufacturing Research Centre), who gave several insights and examples from what AMRC has been doing as research in the context of Industry 4.0.
A roundtable is supposed to be an interactive session, which would have been a challenge as I noticed 49 people subscribed to this session. However, during the session, it became clear there was a significant silent majority.
Gavin and Jonathan had a lot to share. When the time came to interact with the audience, it was mostly other vendors talking about their Industry 4.0 vision or capabilities.
Vendors are perhaps more than ten years ahead with their vision as CIMdata’s image on the left states. When you would implement all these beautiful concepts, you will discover many frustrating gaps as your existing company’s processes, people, and skills are not that easy to change.
Smart Manufacturing: Simulating Workflows to Drive Efficiency and Productivity
A company that has been active in Smart Manufacturing is AGCO, who has been presenting several times their future strategy and lessons learned at PI.
See Susan Lauda’s presentation in The weekend after PLMx Hamburg 2018
In this session, Andreas Frank and Dominik Hammerl shared how AGCO utilizes line balancing simulation to identify bottlenecks and create a productive, efficient workflow as one of the projects within their Smart Factory strategy.
Their current solution was introducing a new that that had fast user adoption. The big elephant in the room remains to connect all these tools, having a flow of consistent data between all enterprise systems.
No problem at this time, as I heard in most of the sessions that I attended – stop analyzing and solving all the details upfront – start doing and learning – keeping the ultimate vision in mind/
Transforming to a Software-Centric Business Model: How the Need for Data is Changing Business
This was an exciting session to see digital transformation in action. Subramanian Kunchithapatham, VP Engineering of Sensormatic Solutions (Johnson Controls) who are focusing on the brick and mortar retail shops.
These shops have been evolving as online shopping. The shift of focus towards customer experience in the shop requires these businesses to adapt. By using a digital twin concept for shop behavior and operations, they can now sell software solutions that improve their customer’s performance, as you can see from the image below.
To What Degree Do We Need To Integrate PLM, ERP and MES?
This roundtable session, excellently moderated by Jan Johansson, Senior Director Digital Transformation at Terma A/S, was the type of roundtable you would like to participate in. I think the theme is actual for all of us
Statements varied from”ERP is our only system of truth as here we manage our financial execution” till”We should include CRM, CPQ and all other TLAs inside an enterprise – the connected enterprise”
My observation was that many of us are still thinking in systems, an ERP-system, a PLM-system. We talk about”owning data” instead of”being accountable” for data in that context.
Another observation was to check who is responsible for PLM in your company. If it is engineering, probably your PLM-system is considered an engineering tool, not an infrastructure that enables product data to be available along the product lifecycle.
How to deal with legacy data, a challenge in the aerospace industry. Store data in neutral formats or select a preferred vendor-related format and stick to it.
A great roundtable that hopefully inspired the participants to explore some of the options discussed or connect and learn more from each other experiences.
Overcoming Data Management Challenges with AI
Nicely complementary to the previous roundtable was the session moderated by Mo (Muhannad)Alomari’s, AI Hub Lead at Rolls Royce plc. As an introduction, Mo dazzled us with the amount of data/knowledge related to gas turbines. Impossible to comprehend or access by human beings without the support of Artificial Intelligence.
Mo also brought the knowledge graph to our attention through this movie from the Google Knowledge Graph. We discussed this concept and its applicability for the PLM-domain. For sure, technology can bring high value for discovering information. However, there will still be a human-based interpretation required to filter out incorrect or unwanted associations. I think we all observe the challenges introduced by the”knowledge” algorithms on social media. Instead of building your knowledge, they try to drag you into even more absurd “facts.”
Mo also shared how, through AI, they are setting up data conversion practices. As you can imagine, a lot of Rolls Royce legacy data came from the era of paper/scanned drawings. Which text is meaningful on a drawing. Is the text a remark or an official annotation? AI-based best practices are not yet affordable for mainstream companies.
I believe we are all looking forward to learning from the best and bad practices of these frontrunners. As the group was small, it was an interesting discussion and learning session that you only can have by participating actively.
Embracing Digital in Face of Pandemic Disruption
I want to close my highlights by pointing to the final panel discussion. Where the theme was to”hear from experts who have been guiding customers through digital transformation projects before COVID-19 and supporting their clients throughout the crisis,” you would expect an expert discussion.
Indeed, the first part illustrated the trend that COVID-19 accelerated the focus on an inclusive and flexible supply chain. Perhaps traditional PLM-systems have a massive engineering focus, now most panelists report a shifted focus to the supply chain. The point of gravity has shifted.
The discussion started to shift, where the newcomers in PLM started to claim that they do not have an upgrade issue thanks to their cloud offering. An when Paul Powers started to pitch that upgrades should be as easy as smartphone upgrades and BOM-updates do not need people anymore because we have machine learning, it reminded me of my 2015 PDT presentation.
In The Perfect Storm or a Fatal Tsunami session (here on Slideshare) , I predicted that AI and machine learning would remove many traditional PLM-related processes in the long-term. However, the future solutions must be rigid, not just a demo.
The discussion drifted toward “openness” and “PLM is dying out.” Again, here you could see the vendors’ fixation to talk about a single tool, not about a business strategy.
A statement like “PLM sucks” does not help the strategy. It shows these vendors cannot understand the PLM domain and prefer to create their own terminology, cornering PLM in the mechanical domain to be different. I will not go into the PLM sucks discussion as I mentioned this acronym at the PI 2016 event in Munich (slideshare).
However, we should be grateful that these companies sponsored this event. They imagine the (their) ideal future and thanks to their contribution, we were able to be in this event with fruitful discussions. Therefore my thanks to all the sponsors making this event happen.The challenge is always to imagine the future and next have a realistic path to get there on-time.
Conclusion
It was exciting to participate in this PI DX event. The Marketkey-team has transposed the conference concept to a virtual event, very close to the physical event. In particular, well-moderated roundtable sessions based on Teams are the big differentiator for me compared to other virtual events I have seen.
Expecting COVID-19 will not disappear next week, I look forward to the next event with such an interaction.







Poor Jane, in seven weeks, she is interviewing people on three sites. Two sites in Germany and one in France, and she is doing over a hundred interviews on her own. I realized that thanks to relation to SmarTeam at that time, it took me probably seven years to get in front of all these stakeholders in a company.

You will learn that 3D CAD is not the most important topic, as perhaps many traditional vendor-related PDM consultants might think.


How to deal with more data-driven, more agile in their go-to-market strategy, as software, will be more and more defining the product’s capabilities?
After the series about
That is the “game”. Coming back to the future of PLM. We do not need a discussion about definitions; I leave this to the academics and vendors. We will see the same applies to the concept of a Digital Twin.

Many connected devices in the world use the same principle. An airplane engine, an industrial robot, a wind turbine, a medical device, and a train carriage; all track the performance based on this connection between physical and virtual, based on some sort of digital connectivity.
This is the domain of Asset Lifecycle Management, a practice that has existed for decades. Based on financial and performance models, the optimal balance between maintaining and overhauling has to be found. Repairs are disruptive and can be extremely costly. A manufacturing site that cannot produce can cost millions per day. Connecting data between the physical and the virtual model allows us to have real-time insights and be proactive. It becomes a digital twin.





The business case for this type of digital twin, of course, is to be able to customer-specific products with extremely competitive speed and reduced cost compared to standard. It could be your company’s survival strategy. As it is hard to predict the future, as we see from COVID-19, it is still crucial to anticipate the future instead of waiting.

The business case for the digital development twin is easy to make. Shorter time to market, improved and validated quality, and reduced engineering hours and costs compared to traditional ways of working. To achieve these results, for sure, you need to change your ways of working and the tools you are using. So it won’t be that easy!




I discovered I am getting tired as I am missing face-to-face interaction with people. Working from home, having video calls, is probably a very sustainable way of working. However, non-planned social interaction, meeting each other at the coffee machine, or during the breaks at a conference or workshop, is also crucial for informal interaction.
















In the previous seven posts, 
Initially, engineering change management was a departmental activity performed by engineering to manage the changes in a product’s definition. Other stakeholders are often consulted when preparing a change, which can be minor (affecting, for example, only engineering) or major (affecting engineering and manufacturing).
I have seen implementations where an engineer with a right-click could release an assembly without any constraints. Related drawings might not exist, parts in the assembly are not released, and more. To obtain a reliable engineering change management process, the company had to customize the PLM-system to its desired behavior.




When introducing PLM in mid-market companies, often, the dream was that with the new PLM-system configuration, management would be there too.
In the series
The challenge for all companies that want to move from ETO to BTO/CTO is the fact that they need to change their methodology – building for the future while supporting the past. This is typically something to be analyzed per company on how to deal with the existing legacy and installed base.
The MBOM can also be configurable as a manufacturing plant might have almost common manufacturing steps for different product variants. By using the same process and filtered MBOM, you will manufacture the specific product version. In that case, we can talk about a 120 % MBOM

In an earlier 
It is not about owning data and where to store it in a single system. It is about federated data sets that exist in different systems and that are complementary but connected, requiring data governance and master data management.




Already
In part five, I introduced the need to have a split between a logical product definition and a technical EBOM definition. The logical product definition is more the system or modular structure to be used when configuring solutions for a customer. The technical EBOM definition is, most of the time, a stable engineering specification independent of how and where the product is manufactured. The manufacturing BOM (the MBOM) should represent how the product will be manufactured, which can vary per location and vary over time. Let us look in some of the essential elements of this data model

Note: not all systems will support such a data model, and often the marketing sides in managed disconnected from the engineering side. Either in Excel or in a specialized 
Note: An EBOM is the place where multidisciplinary collaboration comes together. This post mainly deals with the mechanical part (as we are looking at the past)
The MBOM represents the way the unique product is going to be manufactured. This means the MBOM-structure will represent the manufacturing steps. For each EBOM-purchase-part, the approved manufacturer for that plant needs to be selected. For each make-part in the EBOM, if made in this plant per customer order, the EBOM parts need to be resolved by one or more manufacturing steps combined with purchased materials.


In the previous example, all components for the Squad were manufactured by the same company with the option to produce in Plant A or in Plant B. Now imagine the company also has a plant C in a location where they cannot produce the wheels and axle assembly. Therefore plant C has to “purchase” the Wheel-Axle assembly, and lucky for them plant B is selling the Wheel+Axle assembly to the market as a product.
For those always that have been active in the engineering domain, a better understanding of the information flow downstream to manufacturing is crucial. Historically this flow of information has been linear – and in many companies, it is still the fact. The main reason for that lies in the fact that engineering had their own system (PDM or PLM), and manufacturing has their own system (ERP).
Next, manufacturing engineering uses the engineering specifications to define the manufacturing BOM in the ERP system. Based on the drawings and parts list, they create a preferred manufacturing process (MBOM and BOP) – most of the time, a manual process. Despite the effort done by engineering, there might be a need to change the product. A different shape or dimension make manufacturing more efficient or done with existing tooling. This means an iteration, which causes delays and higher engineering costs.







You can only benefit from this approach if, from the beginning of your designs, there are no supplier-specific parts in your EBOM. For Engineering, to Order companies that want to become more Build to Order, this is a challenging but critical point to consider.






Last time in the series Learning from the past to understand the future, 
I am still reluctant to call the Part-structure an EBOM as the design of the product has been mainly focusing on extracting manufacturing information, parts, and drawings.

At this stage, you cannot call the BOM on the left an EBOM. It is a kind of hybrid structure, combining engineering and manufacturing data. A type of BOM we discover a lot in companies that started with a type of ETO-product.


The second disadvantage is that if one supplier part in the structure becomes obsolete and needs to be revised, the company has to go through all the 3D CAD-structures to fix it.
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