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Shaping the PLM platform of the Future

2050In this post my observations from the PDT 2014 Europe conference which was hosted in the Microsoft Conference center in Paris and organized by Eurostep and CIMdata.

It was the first time I attended this event. I was positively surprised about the audience and content. Where other PLM conferences were often more focusing on current business issues, here a smaller audience (130 persons) was looking into more details around the future of PLM. Themes like PLM platforms, the Circular Economy, Open Standards and longevity of data were presented and discussed here.

The emergence of the PLM platform

SNAGHTML149e44b9Pieter Bilello from CIMdata kicked off with his presentation: The emergence of the PLM platform. Peter explained we have to rethink our PLM strategy for two main reasons:

1.  The product lifecycle will become more and more circular due to changing business models and in parallel the different usage/availability of materials will have an impact how we design and deliver products

2.  The change towards digital platforms at the heart of our economy (The Digital Revolution as I wrote about also in previous posts) will impact organizations dramatically.

Can current processes and tools support today’s complexity. And what about tomorrow? According to a CIMdata survey there is a clear difference in profit and performance between leaders and followers, and the gap is increasing faster. “Can you afford yourself to be a follower ?” is a question companies should ask themselves.

Rethinking PLM platform does not bring the 2-3 % efficiency benefit but can bring benefits from 20 % and more.

Peter sees a federated platform as a must for companies to survive. I in particular likes his statement:

The new business platform paradigm is one in which solutions from multiple providers must be seamlessly deployed using a resilient architecture that can withstand rapid changes in business functions and delivery modalities

Industry voices on the Future PLM platform

Auto

SNAGHTML14a2180eSteven Vetterman from ProSTEP talked about PLM in the automotive industry. Steven started describing the change in the automotive industry, by quoting Heraclitus Τα πάντα ρεί – the only constant is change. Steven described two major changes in the automotive industry:

1.  The effect of globalization, technology and laws & ecology

2.  The change of the role of IT and the impact of culture & collaboration

Interesting observation is that the preferred automotive market will shift to the BRIC countries. In 2050 more than 50 % of the world population (estimate almost 10 billion people at that time) will be living in Asia, 25 percent in Africa. Europe and Japan are aging. They will not invest in new cars.

For Steven, it was clear that current automotive companies are not yet organized to support and integrate modern technologies (systems engineering / electrical / software) beyond mechanical designs. Neither are they open for a true global collaboration between all players in the industry. Some of the big automotive companies are still struggling with their rigid PLM implementation. There is a need for open PLM, not driven from a single PLM system, but based on a federated environment of information.

Aero

Yves Baudier spoke on behalf of the aerospace industry about the standardization effort at their Strategic Standardization Group around Airbus and some of its strategic suppliers, like Thales, Safran, BAE systems and more. If you look at the ASD Radar, you might get a feeling for the complexity of standards that exist and are relevant for the Airbus group.

standards at airbus

It is a complex network of evolving standard all providing (future) benefits in some domains. Yves was talking about the through Lifecycle support which is striving for data creation once and reuse many times during the lifecycle. The conclusion from Yves, like all the previous speakers is that: The PLM Platform of the Future will be federative, and standards will enable PLM Interoperability

Energy and Marine

SNAGHTML14a7edf3Shefali Arora from Wärtsilä spoke on behalf of the energy and marine sector and gave an overview of the current trends in their business and the role of PLM in Wärtsilä. With PLM, Wärtsilä wants to capitalize on its knowledge, drive costs down and above all improve business agility. As the future is in flexibility. Shefali gave an overview of their PLM roadmap covering the aspects of PDM (with Teamcenter), ERP (SAP) and a PLM backbone (Share-A-space). The PLM backbone providing connectivity of data between all lifecycle stages and external partners (customer / suppliers) based on the PLCS standard. Again another session demonstrating the future of PLM is in an open and federated environment

Intermediate conclusion:
The future PLM platform is a federated platform which adheres to standards provides openness of interfaces that permit the platform to be reliable over multiple upgrade cycles and being able to integrate third-parties (Peter Bilello)

Systems Engineering

imageThe afternoon session I followed the Systems Engineering track. Peter Bilello gave an overview of Model-Based Systems engineering and illustrated based on a CIMdata survey that even though many companies have a systems engineering strategy in place it is not applied consistently. And indeed several companies I have been dealing with recently expressed their desire to integrate systems engineering into their overall product development strategy. Often this approach is confused by believing requirements management and product development equal systems engineering. Still a way to go.

Dieter Scheithauer presented his vision that Systems Engineering should be a part of PLM, and he gave a very decent, academic overview how all is related. Important for companies that want to go into that direction, you need to understand where you aiming at. I liked his comparison of a system product structure and a physical product structure, helping companies to grab the difference between a virtual, system view and a physical product view:

system and product

More Industry voices

Construction industry

imageThe afternoon session started with Christophe Castaing, explaining BIM (Building Information Modeling) and the typical characteristics of the construction industry. Although many construction companies focus on the construction phase, for 100 pieces of information/exchange to be managed during the full life cycle only 5 will be managed during the initial design phase (BIM), 20 will be managed during the construction phase (BAM) and finally 75 will be managed during the operation phase (BOOM). I wrote about PLM and BIM last year: Will 2014 become the year the construction industry will discover PLM?

Christophe presented the themes from the French MINnD project, where the aim is starting from an Information Model to come to a platform, supporting and integrated with the particular civil and construction standards, like IFC. CityGml but also PLCS standard (isostep ISO 10303-239

Consumer Products

Amir Rashid described the need for PLM in the consumer product markets stating the circular economy as one of the main drivers. Especially in consumer markets, product waste can be extremely high due to the short lifetime of the product and everything is scrapped to land waste afterward. Interesting quote from Amir: Sustainability’s goal is to create possibilities not to limit options. He illustrated how Xerox already has sustainability as part of their product development since 1984. The diagram below demonstrates how the circular economy can impact all business today when well-orchestrated.

circular economy

SNAGHTML14b000f6Marc Halpern closed the tracks with his presentation around Product Innovation Platforms, describing how Product Design and PLM might evolve in the upcoming digital era. Gartner believes that future PLM platforms will provide insight (understand and analyze Big Data), Adaptability (flexible to integrate and maintain through an open service oriented architecture), promoting reuse (identifying similarity based on metadata and geometry), discovery (the integration of search analysis and simulation) and finally community (using the social paradigm).

If you look to current PLM systems, most of them are far from this definition, and if you support Gartner’s vision, there is still a lot of work for PLM vendor to do.

Interesting Marc also identified five significant risks that could delay or prevent from implementing this vision:

  • inadequate openness (pushing back open collaboration)
  • incomplete standards (blocking implementation of openness)
  • uncertain cloud performance (the future is in cloud services)
  • the steep learning curve (it is a big mind shift for companies)
  • Cyber-terrorism (where is your data safe?)

After Marc´s session there was an interesting panel discussion with some the speakers from that day, briefly answering discussing questions from the audience. As the presentations have been fairly technical, it was logical that the first question that came up was: What about change management?

A topic that could fill the rest of the week but the PDT dinner was waiting – a good place to network and digest the day.

DAY 2

imageDay 2 started with two interesting topics. The first presentation was a joined presentation from Max Fouache (IBM) and Jean-Bernard Hentz (Airbus – CAD/CAM/PDM R&T and IT Backbones). The topic was about the obsolescence of information systems: Hardware and PLM applications. As in the aerospace industry some data needs to be available for 75 years. You can imagine that during 75 years a lot can change to hardware and software systems. At Airbus, there are currently 2500 applications, provided by approximate 600 suppliers that need to be maintained. IBM and Airbus presented a Proof of Concept done with virtualization of different platforms supporting CATIA V4/V5 using Linux, Windows XP, W7, W8 which is just a small part of all the data.

The conclusion from this session was:

To benefit from PLM of the future, the PLM of the past has to be managed. Migration is not the only answer. Look for solutions that exist to mitigate risks and reduce costs of PLM Obsolescence. Usage and compliance to Standards is crucial.

Standards

Next Howard Mason, Corporate Information Standards Manager took us on a nice journey through the history of standards developed in his business. I loved his statement: Interoperability is a right, not a privilege

imageIn the systems engineering track Kent Freeland talked about Nuclear Knowledge Management and CM in Systems Engineering. As this is one of my favorite domains, we had a good discussion on the need for pro-active Knowledge Management, which somehow implies a CM approach through the whole lifecycle of a plant. Knowledge management is not equal to store information in a central place. It is about building and providing data in context that it can be used.

Ontology for systems engineering

Leo van Ruijven provided a session for insiders: An ontology for Systems Engineering based on ISO 15926-11. His simplified approach compared to the ISO 15288 lead to several discussion between supporters and opponents during lunch time.

Master Data Management

imageAfter lunch time Marc Halpern gave his perspective on Master Data Management, a new buzz-word or discipline need to orchestrate enterprise collaboration.

Based on the type of information companies want to manage in relation to each other supported by various applications (PLM, ERP, MES, MRO, …) this can be a complex exercise and Marc ended with recommendations and an action plan for the MDM lead. In my customer engagements I also see more and more the digital transformation leads to MDM questions. Can we replace Excel files by mastered data in a database?

SNAGHTML14c68ed3

Almost at the end of the day I was speaking about the PDM platform of the people targeted for the people from the future. Here I highlighted the fundamental change in skills that’s upcoming. Where my generation was trained to own and capture information as much as possible information in your brain (or cabinet), future generations are trained and skilled in finding data and building information out of it. Owning (information) is not crucial for them. Perhaps as the world is moving fast. See this nice YouTube movie at the end.

image

Ella Jamsin ended the conference on behalf of the Ellen MacArthur Foundation explaining the need to move to a circular economy and the PLM should play a role in that. No longer is PLM from cradle-to-grave but PLM should support the lifecycle from cradle-to-cradle.

Unfortunate I could not attend all sessions as there were several parallel sessions. Neither have I written about all sessions I attended. The PDT Europe conference, a conference for people who mind about the details around the PLM future concepts and the usage of standards, is a must for future strategists.

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imageThis year I had several discussions with persons working for construction companies. They shared their BIM dreams and tried to explain them the PLM benefits and basics as they are much alike. The challenge in these discussions was that each of us comes from a complete different background. The word PLM does not resonate well outside product-centric companies. In project-centric companies, people tend to focus more on the tools they are using, instead of the overall business process. Construction companies and EPC companies in Oil & Gas always had a project-centric approach, and for them every project is unique.

Ten years ago

AECbytes.com published in 2004 the chart below, demonstrating the construction industry is lagging behind in productivity compared to other industries.

image

You find a link to the full article here.

Now it is BIM

It is an old graph, and I haven’t seen a more recent one. However, I guess the trend has not changed significantly. What has changed is that construction companies are now talking about BIM. BIM meaning Building Information Model, a term which has a history with Autodesk. Read the wiki news about BIM. There are many interpretations of BIM. One of the formal definitions is:

Building Information Modeling (BIM) is a digital representation of physical and functional characteristics of a facility. A BIM is a shared knowledge resource for information about a facility forming a reliable basis for decisions during its life-cycle; defined as existing from earliest conception to demolition.

This is a high-level definition, and BIM is characterized as a shared knowledge resource. Is it a 3D Digital model ? Is it a kind of DMU (Digital Mock-Up) ? Is it a Building Lifecycle environment ? There is the word “life-cycle” in the definition.

Why BIM?

I noticed many vendors and consultants in this industry talk about what is BIM. It is rare to find quantified values for implementing BIM. You find exactly the same values as PLM brings to manufacturing companies. Better decisions, managing complex constructions and projects, early decisions that save costs later, etc.

Governments have been pushing BIM to the construction industry (both for the civil and building industry) as they believe this is a way to improve quality and better manage time and costs. And as they are usually the big spenders, the leading construction firms have to adapt to these standards to get these contracts.

Would any construction company begin with BIM without being pushed?

In product-centric companies, the global competition and the consumer are driving the need for PLM. Margins are under pressure, and they need to be competitive to stay in business. The construction industry is not (yet) that much driven by global influence and the choice of consumers.

The chart below illustrates the BIM ambition in the UK. At this time, companies are entering level 2, and they struggle to understand what is the impact for them to be at BIM Level 2. I am sure other countries have their own and similar roadmap.

image

The diagram illustrates the same path which other industries have been going through in the past twenty years.

BIM Levels and PDM / PLM

BIM level 0 is focused on managing CAD, in the other industries this was the time that single disciplines managed their own CAD data. There was no sharing at that time.

Level 1 is focusing on managing 2D and 3D CAD together much similar to what in other industries is done with a PDM system. The PDM system manages in one environment the 2D and 3D data. This is still as a departmental solution but could provide in one environment information from different disciplines. Here, you find all suppliers from 3D CAD systems having their PDM solution, not focusing on a core 3D Model

Level 2 is about sharing 3D BIM models for different disciplines to support 4D (construction planning based on 3D) and 5D (construction planning based on 3D planning and costing integrated). This is what in other industries, primarily automotive and aerospace, was considered as the early days of DMU (Digital Mock Up) and PLM. Dassault Systemes and Siemens are leading here and historically CATIA has been the base for the 3D Model.

alm_1BIM Level 3 is what can be found currently in the asset centric industries (Energy, Nuclear, Oil & Gas) where working from a virtual plant model all disciplines are connected through the whole lifecycle. This is the domain that I have been advocating in previous posts, promoting PLM concepts and capabilities.
For example read: PLM for Asset Lifecycle Management.

Apparently the construction industry is still in the early phases of BIM Level 3. I would compare it to teenage sex; they all talk about it, but nobody does it. Or Hollywood BIM as Antonio Ruivo Meireles calls it in his AECbytes article: “Say “NO!” to Hollywood BIM”.

Antonio talks about the BIM implementation at Mota-Engill. Briefly touching a common topic for PLM implementations: “People and Cultural Change”. However, most of the implementation report was focused on tools, where even Excel and Visual Basic play a role.

Tools or Platform ?

And this is the point where construction companies could learn from other industries. They have discovered (or are still discovering) that Excel and Visual Basic are like soft drugs. They take away the pain, but they do not provide the solution in the long term. Instead of that, legacy Excels start piling up in directories, and the Visual Basic code becomes the domain of an enthusiastic expert (till this expert moves to another company or retires). The risk is ending up with a legacy environment so hard to change that a costly revolution is needed at a certain moment.

imageConstruction companies are still investing in selecting a set of tools/applications, each with their own proprietary data and format. And they use customizations or standardized information carriers, like the COBie spreadsheets, to exchange information between partners and disciplines. This is already a giant step forward, as COBie forces companies to focus on mandatory and standard content, required at specific stages of the lifecycle instead of searching for it when it is actually needed.

Somehow the COBie approach is similar to the early days of PLM, where companies forced their disciplines to save information in the PLM system (as it became imperative). In these departments and disciplines the work and interaction did not change so much as before they had the PLM system. The cultural change here was that designers and engineers had to enter more data upfront for higher quality downstream.

An intermediate conclusion might be that construction companies follow the same direction as early PLM. Standardizing the data (model) to have a common understanding between stakeholders. Construction companies might not want to implement a PLM system as ownership of data is unclear as compared to manufacturing companies every discipline or department in PLM might be another company in the construction industry.

Now let’s look into the future

The movie below from Airbus describes the current way of working in a multidisciplinary, multi-partner, multi-location online system. Airbus calls it their DMU. Please before continuing reading look at this movie as the concept is crucial

Airbus DMU – Digital Mock Up

I want to highlight two statements in this movie.

Russ Brigham @ 5:39 talking about suppliers not participating to the DMU:

“They will be making decisions on out of date data or even incorrect data”

And @ 7:11

“DMU is a mind-set …….”

I am aware that the aerospace industry is not directly comparable to the construction industry, there are commonalities from which the construction industry can learn:

  • Working on a single, shared repository of on-line data (the DMU)
    A common data model – not only 3D
  • It is a mind-set.
    People need to share instead of own data
  • Early validation and verification based on a virtual model
    Working in the full context
  • Planning and anticipation for service and maintenance during the design phase
    Design with the whole lifecycle in mind (and being able to verify the design)

Data ownership ?

For the construction industry, the current difficulty might be that none of the parties involved wants to invest in owning the data. For Airbus, it is clear. As the manufacturer of the airplane, they remain responsible for the information throughout the whole lifecycle.

For a construction, this might be different. The owner might be totally disconnected from the construction and the operations, therefore, not willing to promote or invest in the DMU approach.

imageHowever, the owner should realize that it is not about ownership but about facilitating on-line collaboration around a construction from the initial concept phase till maintenance and even decommissioning, connecting all the stakeholders. The benefits better decisions at each stage of the lifecycle leading to lower failure costs and waste in materials, resources and time. The construction industry still accepts too high failure rates compared to the manufacturing industry. And as at the end the owner/operator spends most of these costs, they should be interested in this approach.

Major construction companies responsible for the project execution and control might want to invest in a PLM platform, allowing them to execute projects better, learn from other connected projects and create a solid base for maintenance contracts

My dream and wish for 2014 for the construction industry: Focus on the next step of integrating data on a PLM backbone instead of standardizing interfaces between applications. It is the future mind-set proven in other industries.

I wish you all a happy, healthy and successful 2014 full of change for the best
May BIM, BAM, BOOM become true
The Future of the Building Industry (5/5): BIM, BAM, BOOM!

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