I am still digesting all the content of the latest PLM Roadmap / PDT Fall 2020 conference and the new reality that starts to appear due to COVID-19. There is one common theme:
The importance of a resilient and digital supply chain.
Most PLM implementations focus on aligning disciplines internally; the supply chain’s involvement has always been the next step. Perhaps now it is time to make it the first step? Let’s analyze.
No Time to Market improvement due to disconnected supply chains?
During the virtual fireplace chat at the PLM Roadmap/PDT conference, just as a small bonus. You can read the full story here – the quote:
Marc mentioned a survey Gartner has done with companies in fast-moving industries related to the benefits of PLM. Companies reported improvements in accuracy of product data and product development. They did not see so much a reduced time to market or reduced product development costs. After analysis, Gartner believes the real issue is related to collaboration processes and supply chain practices. Here lead times did not change, nor the number of changes.
Of course, he spoke about fast-moving industries where the interaction was done in a disconnected manner. Gartner believes that the cloud would, for sure, start creating these benefits of a reduced time to market and cost of change when the supply chain is connected.
Therefore I want to point again to an old McKinsey article named The case for Digital Reinvention, published in February 2017. Here the authors looked at the various areas of investment in digital technologies and their ROI. See the image on the left for the areas investigated and the percentage of companies that invested in these areas at that time.
In the article, you will see the ROI analysis for these areas. For example, the marketing and distribution investments did not necessarily have a positive ROI when disconnected from other improvement areas. Digital supply chains were mentioned as the area with the potential highest ROI. However, another important message in the article for all these areas is: You need to have a complete digitization strategy. This is a point I fail to see in many companies. Often an area gets all the attention, however as it remains disconnected from the rest, the real efficiencies are not there. The McKinsey article ends with the conclusion that the digital winners at that time are the ones with bold strategies win:
we found a mismatch between today’s digital investments and the dimensions in which digitization is most significantly affecting revenue and profit growth. We also confirmed that winners invest more and more broadly and boldly than other companies do
The “connected” supply chain
Of course, the traditional industries that invented PLM have invested in a kind of connected supply chain. However, is it really a connected supply chain? Aerospace and Defense companies had their supplier portals.
A supplier had to download their information or upload their designs combined with additional metadata.
These portals were completely bespoke and required on both sides “backbreaking” manual work to create, deliver, and validate the required exchange packages. The OEMs were driving the exchange process. More or less, by this custom approach, they made it difficult for suppliers to have their own PLM-environment. The downside of this approach was that the supplier had separate environments for each OEM.
In 2006 I worked with SmarTeam on the concept of the “Supply Chain Express,” an offering that allowed a supplier to have their own environment using SmarTeam as a PDM/PLM-system the Supply Chain Express package to create an intelligent import and export package. The content was all based on files and configurable metadata based on the OEM-Supplier relation.
Some other PLM-vendors or implementers have built similar exchange solutions to connect the world of the OEM and the supplier.
The main characteristic was that it is file-based with custom metadata, often in an XML-format or otherwise using Excel as the metadata carrier.
In my terminology of Coordinated – Connected, this would be Coordinated and “old school.”
The “better connected” supply chain
As I mentioned in my previous post about the PLM Roadmap/PDT Fall conference, Katheryn Bell (Pratt & Whitney Canada) presented the progress of the A&D Global Collaboration workgroup. As part of the activities, they classified the collaboration between the OEM and the supplier in 3 levels, as you can see from the image:
This post mainly focuses on the L1 collaboration as this is probably the most used scenario.
In the Aerospace and Automotive industry, the OEM and suppliers’ data exchange has improved twofold by using Technical Data Packages where the content is supported by Model-Based Definition.
The first advantages of Model-Based Definition are mainly related to a consistent information package where the model is leading. The manufacturing views are explicitly defined on the 3D Model. Therefore there is a reduced chance of error for a misconnect between the “drawings” and the 3D Model.
The Model-Based definition still does not solve working with the latest (approved) version of the information. This still remains a “human-based” process in this case, and Kathryn Bell confirmed this was the biggest problem to solve.
The second advantage of using one of the interoperability standards for Model-Based Definition is the disconnect between application-specific data on the OEM side and the supplier side.
A significant advantage of Model-Based Definition is that there are a few interoperability standards, i.e., ISO 10303 – STEP, ISO14306 – JT, and ISO32000/14739 (PRC for 3D PDF). In the end, the ideal would be that these standards merge into one standard, completely vendor-independent with a clearly defined scope of its purpose.
The benefit of these standards is also they increase the longevity of product data as the information is stored in an application-independent format. As long as the standard does not change (fast), storing data even internally in these neutral formats can save upgrade or maintenance costs.
However, I think you all know the joke below.
The connected supply chain
The ultimate goal in the long term will be the connected supply chain. Information shared between an OEM, and a supplier does not require human-based interfaces to ensure everyone works with the correct data.
The easiest way, and this is what some of the larger OEMs have done, is to consider suppliers as part of your PLM-infrastructure and give them access to all relevant data in the context of the system, the product, or the part they are responsible for. For the OEM, the challenge will be to connect suppliers – to motivate and train them to work in this environment.
For the supplier, the challenge is their IP-management. If they work for 100 percent in the OEM-environment, everything is exposed. If they want to work in their own environment, there is probably double work and a disconnect.
Of course, everything depends on the complexity of your interaction with the supplier.
With its Fusion Cloud Product Lifecycle Management (PLM), Oracle was one of the first to shift the attention to the connected supply chain.
If you search for PLM on the Oracle website, you will find it under Fusion Supply Chain and Manufacturing. It is a logical step as traditional ERP-vendors have never provided a full, rich portfolio for product design. CAD-integrations do not get a focus, and the future path to Model-Bases approaches (MBSE / MBD /MBE) is not visible at all.
Almost similar to what the Siemens-SAP alliance is showing. SAP more or less confirms that you should not rely on SAP PLM for more advanced PLM-scenarios but on Siemens’s offering.
For less complex but fast-moving products, for example, in the apparel industry, you see the promise of connecting all suppliers in one environment is time to market and traceability. This industry does not suffer from products with a long lifecycle with upgrades and services.
So far, the best collaboration platform in the cloud I have seen in Shareaspace from Eurostep. Its foundation based on the PLCS standard allows an OEM and Supplier to connect through their “shared space” – you can look at their supply chain offering here.
In the various PDT-conferences, we have seen how even two OEMs could work in a joined environment (Renault-Nissan-Daimler) or how BAE Systems used the ShareAspace environment to collaborate and consolidate all the data coming from the various system suppliers into one standards-based environment.
In 2021, I plan to write a series of blog posts related to possible add-on services for PLM. Supplier collaboration platforms, Configuration Management, End-to-end configurators, Product Information Management, are some of the themes I am currently exploring.
Conclusion
COVID-19 has illustrated the volatility of supply chains. Changing suppliers, working with suppliers in the traditional ways, still hinder reducing time to market. However, the promise of a real connected supply chain is enormous. As Boeing demonstrated in my previous post and explained in this post, standards are needed to become future proof.
Will 2021 have more focus on the connected supply chain?









In the Q&A session, Katheryn explained that the biggest problem to solve with collaboration was the risk of working with the wrong version of data between disciplines and suppliers.






The second exciting detail is that these federated architectures should be based on strong interoperability standards. Jeff is urging other companies, academics and vendors to invest and come to industry standards for Model-Based System Engineering practices. The time is now to act on this domain.
Finally, during the Q&A part, Jeff made an interesting point explaining Boeing is making a serious investment, as you can see from their participation in all the action groups. They have made the long-term business case.







However, these companies are also pioneers for the future. They have been practicing Model-Based approaches for over ten years already and are still learning. In next week’s post, you will read later that these frontrunners are pushing for standards to make a Model-Based future affordable and achievable.












Many readers of this post have probably never heard of the Ragn-Sells group or followed up on a call for action. I have the same challenge. Being motivated beyond your day-to-day business (the old ways of working) and giving these activities priority above exploring and learning more about applying sustainability in my PLM practices.













This question will no arise in a hierarchical organization where people are controlled by managers that have a mission to optimize their silo. Product Developers should be trained and coached to operate in a broader context, which should be part of your company’s mission. Too many people complain about usability in their authoring and data management systems without having a holistic understanding of why you need change processes and configuration management.



Of course, it would be nice if everyone in these groups understands the total flow and processes within an organization and how they relate to each other. Too often, I have seen experts in a specific domain, for example, a 3D CAD-system having no clue about revisioning, the relation of CAD to the BOM, or the fundamentals of configuration management.


















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.
















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