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Driving Value throughout the Product Lifecycle
Fabrizio Ferro Director, Technical Sales & Business Development
PTC
2
Overview
Product Manufacturers Challenges
Understanding PLM’s Role
Common Activities that Drive Value
Realizing Value: Path, Processes & Solutions
Customer Perspectives
3
Global Development
Quality Management
Cost Management
Risk Management
Systems Engineering
Software Engineering Product Validation
Hardware Engineering
Supply Chain Design Collaboration
Materials Management
Requirements Management
Parts Planning
Service Engineering
Failure Analysis
Manufacturers Challenge is Addressing Critical Business Activities
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Strategy Coordination
Typical Organizational Structure and Activities
Operations
Strategy
Operational Coordination
Hardware & Software
Engineering
Supply Chain & Manufacturing Sales & Service
Supply Chain Design Cost Management Risk Management Mfg Process
Engineering Tooling Design
Systems Engineering Hardware
Engineering Software Engineering Product Validation
Requirements Application
Engineering Service Engineering Parts Planning Service Information Failure Analysis
Purchasing Logistics Supplier Quality Production
Scheduling Production Control
Master Data Project Accounting
Demand Generation Pipeline Management Contracts Service Scheduling Service Delivery Parts Logistics
PTC Optimizes
ERP Optimizes
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Enterprise Solutions
Global Platforms
Global Development
Global Quality
Global Offerings
Product Information
Hardware & Software
Engineering
“Product Information” is the Common Thread
Supply Chain & Manufacturing
Supply Chain Risk and Compliance Component, Materials &
Supplier Management Sourcing & Cost
Management Manufacturing Planning
Workgroup Design Enterprise Design Model-Based Enterprise Software Systems
Lifecycle Management Systems Engineering
Sales & Service
Requirements Management Service Information Service Parts Warranty management Call Center Field Service
6
“Product Information” is Shared Across PTC Solutions
Product Information Single source of rich, digital truth that represents aligned and optimized decision-making:
Execution Manage operations for downstream, physical product and service output
Operational focus
Strategic focus
7
Overview
Product Manufacturers Challenges
Understanding PLM’s Role
Common Activities that Drive Value
Realizing Value: Path, Processes & Solutions
Customer Perspectives
8
ERP
Today Yesterday
ERP
Manufacturing Strategy PLM
Innovation Strategy
Quality Strategy
Supply Chain Strategy
CRM PLM
SCM HR
Manufacturing
Addressing the Challenge: PLM is Evolving
Innovation Strategy
Quality Strategy
Supply Chain
Strategy
Service Strategy
Manuf. Strategy
CRM
HR Finance
Logistics
...
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PLM ERP
Change Management
Configuration Management Requirements Capture and Management
Variant Design and Generation
Production Scheduling Inventory Management
Sales and Order Management Shipping Logistics
Accounting and Financial Reporting
Manufacturing Process Management
System Design
PLM’s focus provides greater opportunities for cost savings
Strategy Operations
Decision made here can Impact ~ up to 80% of product cost
Decisions made here can Impact ~20% of product cost
Cost of change to the product here (while product is in digital state) = X
Cost of change to the product here (when product is in physical state) = 100X , 1000X, +
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“Organizations implementing PLM can expect both top-line and bottom-line benefits that come from gains in time-to-market, operational efficiency, production costs and regulatory compliance” – Forrester Research
PLM’s Growing Influence – Analyst View
“As the backbone technology enabling mission critical new product development, Product Lifecycle Management (PLM) must become part of the corporate IT strategy.“ – Aberdeen Group
“In addition to PLM's inherent value, PLM decisions have strong influence on the business model and benefits that can be realized by ERP, SCM and CRM applications in downstream business processes; in that sense, PLM is the most fundamental business application in manufacturing [product development].” Since PLM fundamentally defines bills of materials, it influences the efficiency of ERP and supply chain activities. - Gartner
PLM’s significance rivals well-established enterprise solutions like ERP and CRM and potentially offers even greater value!
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PLM’s Growing Influence – User’s View
EADS: strategic PHENIX initiative
“… The entire Group will benefit tremendously from this new partnership and from the creation of a harmonized PLM environment, which leads to cost savings, reduced time-to-market and improved product quality. We found that PTC came up with the most convincing solution and best serves our business needs.”
Jean Botti Chief Technical Officer, EADS
Cummins: design, build and service anywhere
“In switching to Windchill, we are looking to optimize accessibility throughout all functional areas of our PLM environment. In particular, the Windchill solution will allow us to best achieve our compliance and productivity goals and successfully extend our competitive advantage.“
Chris MacAslan, Director, Global PLM, Cummins
Otis Elevator: standardize global content & process management
“Windchill provides the flexibility and broad capabilities we need to manage heterogeneous CAD data, improve concurrent engineering worldwide and streamline data delivery to our manufacturing sites in a global development environment.”
Tom Saxe Vice President Worldwide Engineering Otis Elevator Company
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Overview
Product Manufacturers Challenges
Understanding PLM’s Role
Common Activities that Drive Value
Realizing Value: Path, Processes & Solutions
Customer Perspectives
13
Activity: Enable accurate, controlled collaboration across globally distributed teams and partners with access to a single source of product data.
Global Development
Challenges: – Allow for distributed design work – Enabling cross-functional collaboration – Sharing data securely – Managing complex programs – Managing change across the lifecycle – Scalable performance
Critical solution capabilities: – Design modular product architectures – A single, high performance repository for information – A system that fosters the use of standard parts and processes – A secure and accessible environment for global teams and partners
Quality
Resources
Risk
Deliverables
Cost
Schedule
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Activity: Ensure product performance, reliability, and safety are aligned with the requirements set for them over the course of a product’s life.
Quality Management
Challenges: – Manage quality throughout the product lifecycle – Integrate engineering changes early and often – Leverage lessons learned – Balance profitability with quality compliance
Critical solution capabilities: – Connect the quality efforts of cross-functional teams – Unite all enterprise-wide product development activities that address quality – Provide a single source of truth to improve management visibility into quality issues – Enable industry-proven quality management processes, such as Six Sigma, APQP,
21CFR Parts 11/820
Quality Management
Plan
Test
Manufacture
Innovate Design
Service
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Activity: Efficiently manage product variants reducing cost of complexity in a globalized context
Complexity Management
Challenges: – Fulfill market demand with right, highly profitable products – Promote reuse to reduce costs and improve profits – Optimize value chain
Critical solution capabilities: – Provide all product intelligence to manage multiple technical and commercial product variants – Support product modularity and product platform approaches – Support new part introduction process – Track and control cost trends for the available and planned configurations – Options & Variants validation – Supply chain and components management and classification
17
Overview
Product Manufacturers Challenges
Understanding PLM’s Role
Common Activities that Drive Value
Realizing Value: Path, Processes, & Solutions
Customer Perspectives
18
Identify the “Right Things to Do” to Realize Value
Examine each value area and create a plan
Extended process value
Strategic value
Direct process value
Infrastructure/ tactical value
PTC Total Value Model
PTC Value Roadmap
19
Design Plan Concept Support Validate Production Organization
Requirements Definition and Management
Application Engineering
Tooling Design and Manufacture
Manufacturing Process Management
Process Transformation Drives Product and Service Advantage
Regulatory Compliance
Portfolio Management
Quality & Reliability Management
Change and Configuration Management
Program and Project Management
Concept Development
System Architecture Design
Detailed Development
Verification and Validation
Early Sourcing
Variant Design & Generation
Component and Supplier Management
Technical Compliance
Product Support Analysis & Planning
Technical Information Creation & Management
Equipment Lifecycle Management
Environmental Performance Management
PRODUCT LIFECYCLE
Hardware & Software Engineering
Enterprise
Supply Chain &
Manufacturing
Sales & Service
Performance Analysis & Feedback
Product Support Information Delivery & Field Knowledge Management
20
Process Transformation Enabled by Broad and Integral Technology Platform
Forward looking information is subject to change.
Business Reporting
CAD CAM
Change & Config. Mgmt Collaboration
Compliance Management
Component Management
Cost Management
Document Management
eBOM
Engineering Calculations
Enterprise Interoperability
ERP & Enterprise Systems
Manufacturing Process
Management
mBOM
Program Portfolio Mgt.
Quality, Risk, & Reliability Mgt.
Requirements Management
sBOM
Service Information
Delivery
Service Parts Planning
Software Management
Supplier Management
Systems Modeling
Technical Information Authoring
Test Management
Variability Management & Digital Mockup
Warranty Management
Workflow
CAE
ECAD
Visualization Software
Development Hardware Management
21
PTC’s Real Differentiator: Technology Infused with Process Knowhow
Deep Process Expertise
The industry’s deepest knowledge of processes that span the life of the product
Flexible, collaborative customer partnerships centered on insight into business objectives and value drivers
Leading Technology
Industry-leading capabilities with breadth across the lifecycle
Best of breed organic and acquired innovations
Unmatched integral and scalable architecture
22
Overview
Product Manufacturers Challenges
Understanding PLM’s Role
Common Activities that Drive Value
Realizing Value: Path, Processes, & Solutions
Customer Perspectives
23
Real Value from Real Customers
Stiebel Eltron is a leading manufacturers of high-end products for water-heating, air-conditioning, space-heating, and renewable energies Reduced the number of
components (with basically identical functionality) maintained in inventory
Increased the reuse of parts and assemblies across all sites
APC is nearly a $4 billion division of Schneider Electric with products ranging from small solutions for home to industrial factory systems
Reduced the cost of compliance by 80% over their previous, manual methods
Captured 70% of all required environmental parts data from suppliers in just 3 months – previous efforts yielded only 3% in 1 year
HP Imaging and Printing division spans 23,000 products and tens of thousands of suppliers across 160 countries
Achieved an 80% improvement in design and process reuse
Part counts fell 2% to 18%
Time-to-market, product cost and warranty cost reduced
Productivity rose between 20% and 30%
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Hear For Yourself: Customers share success with PLM
View our Customer Reference Videos at: www.ptc.com/go/plm
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Learn More:
Contact Your PTC Representative:
http://www.ptc.com/go/contact-us
For more PLM Information visit:
http://www.ptc.com/go/plm