Taken from a PLM Technology conversation…

It is hard to find somebody in PDM/PLM business that is not familiar with the idea of a “single point of truth (SPOT)”. The idea is not new. In my view, it was one of the most powerful model that convinced people to implement PLM during the last decade.

The problem is not just the technology, it is also the people.  What if employees have to work with data that is managed in different systems?  They will have to be trained on various systems; they will have to deal with different user interfaces, etc.  And the IT organization also will have to maintain several databases, several software packages, etc.  That can be particularly difficult and costly in regulated industries that require validation of all software that is used to manage product data.

My Thoughts…

Since before PLM was even a concept, companies wanted a single vault where all company information was stored.  It was to be their ‘single point of truth’.  Manufacturers were trying to store documents in their MRP software.

In the early years of PDM before PLM came along, there was always the conversation [argument] about who owned the Bill of Materials.  Engineering said that PDM owned the BoM - Manufacturing said that MRP [soon to become ERP] owned the BoM. 

I figured out that this was a ‘religious’ argument and so I would ask each company – Where is your ‘blessed’ BoM stored?  The answer was always ERP.  I decided back then to position PLM [and PDM before that] as the manager of change.  Changes to engineering documents and BoM’s would route through PLM and then PLM would write the released BoM into the ERP.  So, the released BoM was always found in the ERP.  Manufacturing would work in their environment – ERP.

This appears to be true today.  That is why ERP vendors are trying to get into the PLM business.

Your Thoughts…

What has been  your experience?

I am talking with a company about implementing a PLM solution and we have been discussing implementing PLM in the Cloud.  Some thoughts we discussed follow…

Dedicated Server/Private Cloud

If you choose to implement your solution on your own internal server, you will need to either purchase or configure an existing server.  Typically, you will need at least a dual core CPU, 16MB of RAM, 1TB disk and a relational database.  You will likely need to engage IT on this implementation and they will have their own requirements.  They can implement on existing server software or they could choose to implement the solution using something like the VMware platform [a private cloud].

If your company is a global company, you may need to distribute the database in order to facilitate ‘quick’ file transfers.  If your office in China needs a file that resides in the USA, that transfer could take a while.  So, IT will need to set up some kind of data replication strategy.

Public Cloud

If you implement in the cloud, you would not necessarily need to purchase a server.  Your PLM vendor could install and configure the software to run in the cloud.  Since your solution will be in the cloud, data replication won’t be an issue [or not as big an issue].

In a public cloud environment, IT involvement will be minimal to non-existent. 

For years, security has been an issue.  Today, companies like Amazon run their entire company in the cloud.  They even sell a ‘cloud environment’ to companies. 

My Thoughts…

I believe that each company will make their own decision based on their needs and concerns.  I can’t foresee a world that is only cloud or only internal.Your

Thoughts…

Where do you stand on the Cloud?

PLM is about managing the whole lifecycle of a product.  Product information and the process that allows it to be created, approved and disseminated is key to PLM.  Product information includes items, parts, documents, files, BOMs and many other kinds of information.  Some key processes for manufacturers include: the engineering change process; new part number requests; a supplier approval process; etc.

A typical product lifecycle includes many more processes than those listed above.  Processes like: new product introductions, the creation of marketing requirements documents; work instruction packages; customer support plans; and many different kinds of compliance documents.

A good PLM system will provide a ‘vault’ for all company information.  A vault provides a central storage space [could be implemented in a private or public cloud].  It would allow you to place rules on these files as to what can be seen, checked in, checked out, deleted, etc.  It shouldn’t care about the format of the file.

A good PLM system will provide a robust business process management component.  It will allow a company to define how and when something is created, changed or managed.  It should allow you to ‘run’ a program so that you can automate tasks where possible.  Programmed correctly, this BPM component can make sure that the right information gets to the right person at the right time.

A good PLM system understands a configuration.  This allows you to create, change and manage a bill of materials.  And, that bill of materials can consist of more than just parts.  A work instruction package should appear on a bill of materials.  It should be able to gather a BOM from your CAD solution when a design is checked in. 

A good PLM system should be about configuration vs. coding.  It should allow you to customize the user interface so that users only see the fields/actions that pertain to their job.  And, if the world were perfect – you could implement a solution in weeks vs. months/years.

What would you add to the list?

Secure Vault
PLM provides a central, secure vault for information storage

A secure vault means no access without a user id & password.  You go to one place to find information.  It means files don’t get lost/deleted.  Using the best definition of cloud – you don’t know where the file is stored and you don’t care as long as you get the right one.

Process Management
PLM provides Business Process Management

PLM software provides a robust business process management engine that allows you to map how your company works and make sure that your processes are being followed.  The Business Process Component provides control and visibility - that drives Increased Productivity; Increased Quality; and Shorter Times to Market. 

Configuration Management     
PLM software understands the concept of a configuration

A bill of materials is a good example of a configuration – anything with a parent/child relationship.  Losing this information can be very expensive.

Collaboration
PLM facilitates collaboration

Workers with proper access can see information, contribute to that information or start their own projects.  The results of the collaboration are version controlled and can move through an approval process designed by your company.  It allows you to make sure that the right information gets to the right person at the right time.

Compliance
PLM software makes it easy to be compliant

Simply put, in order to be compliant you need to explain how your company does business and then you need to prove that your company follows that document [process].  Companies using PLM easily pass compliance audits in hours vs. days.

Looking through a Process Management lens, a company is a collection of processes.

The ‘primary process’ centers on getting a purchase order, providing goods or service and collecting the cash.  This is often referred to as the ‘quote to cash’ process.

All of the other processes support the ‘primary process’ in some fashion.  Someone once told me that the CEO of any company is concerned about only 2 things: Cash and Everything else. 

Companies have many processes and most are not well defined, controlled or viewed.  I see an 80/20 rule in effect here.  You can expect to get 80% of the value out of defining, controlling and viewing the 20% of the processes that are most critical.

Processes that usually fall in the 20% include:

The engineering change process – this is the most complex, expensive process for any manufacturer.  Studies have shown that the cost of managing a change request in a paper environment average $2,500 each. 

The new product introduction [NPI] process – this process can be very complex.  It is usually not well defined or controlled.  It is usually treated like an unnecessary evil.  I have been a part of this process with large companies and they really need to get NPI under control.

The Takeaway

Even if your company doesn’t have budget for PLM software now, you can begin managing your processes and make them more efficient. 

Start with one of the 20% of your processes that will bring the most value to your company.  You can document the process on paper and have each person in the process mark that they have completed their task, note the date and pass it to the next task [person].

What does PLM software bring to the table?  PLM software provides control and visibility.  It makes sure that you actually follow the process that you have created.  It provides visibility into that process so that you can see what’s going on.  PLM makes sure that the right information gets to the right person at the right time.

Your Thoughts…

What are you waiting for?

I still see a lot of effort being expended defining PLM.  I subscribe to the KISS method - PLM stands for product lifecycle management.

In marketing terms, PLM is a ‘bucket’ filled with companies selling ‘PLM’ software.  This all began when a few document management companies didn’t want to be in the ‘document management’ bucket anymore – they were different.  If your document management software could manage a bill of materials, then they should be called PDM [product data management] and be in the ‘PDM’ bucket.  Now, these PDM vendors want to sell to more than just engineering and manufacturing departments, so a new bucket was created – ‘PLM’.

PLM software includes a ‘vault’ component [it will manage ‘documents’ of any kind/type], it has a ‘business process management’ component [initially to manage the engineering change process], and it has a ‘configuration management’ component [initially to manage bills of materials]. 

As a former PDM vendor, we used to speak of a product lifecycle as beginning in engineering and ending in manufacturing.

If you move up to the 20,000 foot level, a typical product lifecycle begins with an idea gathered from the customer by either sales or marketing.  A marketing requirements document [MRD] is created – it goes through some process of reviews, changes and approvals.  Through some process, the MRD morphs into an engineering requirements document [ERD].  The morphing process could include input from sales, marketing, finance, engineering, manufacturing and customer support.  The approved ERD starts engineering processes like: design, simulation, prototyping, testing, customer approval, work instructions, packaging, etc.  Manufacturing tends to live in their ERP [enterprise resource planning] software, but PLM software can work with their ERP to provide work instructions, shipping/packaging instructions and ‘write’ back to the ERP for billing. 

The Takaway…

If you don’t have some kind of constant pain with your existing environment, you wouldn’t be looking at solutions like PLM.  Take time to document your requirements, PLM may or may not be the right solution.  I have found that it is very helpful for you to understand your vision for a solution. 

Armed with your requirements and a vision, you can begin to look at alternatives.  Learn what the software can and can’t do.  Arrive at a reachable ‘expectation’ from your solution.  If your expectations are realistic, you just may get a real solution.

Your Thoughts…

Does this help clear things up?

Behind every successful PLM implementation you will find a good project plan.

There has to be a reason for implementing a product lifecycle management solution.  The problem that you are attempting to solve will be extremely annoying.  You will have decided that you just can’t take it anymore and it needs to be fixed.  Or, the cost of the problem just keeps mounting up and it needs to be fixed.

At a high level, I like to break down a PLM project into 4 major steps: Analysis, Design, Construction and Implementation.  I see the analysis step as the real key – it is like the foundation to a house.  If it isn’t done right, the building of the house will not go smoothly.  You will see many change requests.

The analysis is where the communication begins.  Terms will be defined, the problem areas will be clearly delineated and the customer will describe their idea of a successful outcome.

As with any project, miscommunications are something you try hard to avoid.  It can be the difference between success and failure – it can be the difference between a happy customer and an unhappy one.

The Takeaway…

Hopefully, when performing the analysis, you will find a person with some experience [so they know what questions to ask] and is also a good listener [so they can really hear the answers given].  You would like for them to confirm their understanding of the customer’s needs.

Using these skills, they can successfully pass requirements to the ‘solution designer’ so that the solution can be properly configured and/or coded.   

Obviously, if the world was perfect and there were flawless people, the first cut of the solution would be correct and make the customer happy.  Since we are only human, we can only do the best we possibly can [and hope for some luck along the way].

Your Thoughts…

What has been your experience?

Seth Godin is a best selling author and a Marketing subject matter expert.  He has written a new free ebook called ‘Stop Stealing Dreams’.  It is available on Squidoo.com.

He asks some very thoughtful questions – starting with...

What is School for?

Are we trying to create a society that is culturally coordinated?  Are we trying to further science and knowledge and pursue information for its own sake?  Are we trying to enhance civilization while giving people the tools to make informed decisions?  Or are we trying to train people to become productive workers?

Taking a process view, the steps consist of specific classes taught by teachers.  The process begins in kindergarten and ends at grade 12 [or does it end here?].  He asks the great process improvement question – What is a successful outcome?

We line kids up in straight rows and teach them to obey instructions.  This was an investment in our economic future.  The desired outcome back then, was to trade short term child labor wages for longer term productivity by giving kids a head start in doing what they are told.

The Takeaway…

Over the years, the process [curriculum & teachers] hasn’t changed much.  The desired outcome still appears to be the same.  The jobs back then were factory workers – this process made sense – we created people educated to be factory workers.

Today, we aren’t just looking for factory workers.  A small percentage of graduates will work in factories.  A larger number of workers will be information workers and so on.  So, what is a successful outcome in 2012? 

Are we looking for aware, caring, committed, creative, goal-setting, honest, improvising, incisive, independent, informed, initiating, innovating, insightful, leading, strategic, supportive workers OR obedient workers?

I have suggested to my teacher friends that it is time to revamp schools – not tweak what they are doing, but start with a blank sheet of paper.  A good place to start would be with the definition of a successful outcome and then work from there.

I really hope the right people take this book seriously and work to improve education in the United States – our educational system needs it.

Your Thoughts…

You may not have ever given this any thought before, how does it strike you now?

For most companies the need for document management begins in engineering.  They need to keep track of many drawings, documents and bills of materials.

If your company is not a manufacturer, you might ask ‘what’s the big deal?’  The workers on the factory floor must have the right version of documentation so that they are building the right product.  If the wrong version of documentation reaches the factory floor, the error could cost $ hundreds of thousands.

A document is not just a document.  It is in a constant state of change – it is either being created, changed, released or stored.  In order to be released, you must control the versions that are out there. 

The Takeaway…

It’s about the process.A document that has gone through some process of being approved and released will get a version number.  It needs to be securely stored in a ‘vault’ so that the right person can get access when they need it.

It’s about getting the right information to the right person at the right time.

I was implementing a PLM solution at a company in Washington State when one of the very large consulting companies arrived.  They were called in to tell this company what their most expensive process was.  I suggested that I could give them an answer for a fraction of the cost.  They continued [paying something like $100k] to find out that the most expensive process in this company was the engineering change process.

If you haven’t figured it out yet – this is the most expensive process for any manufacturer.  It is worth a lot of money for a company to get this process under control.

Your Thoughts…

Does any of this surprise you?

A friend of mine is a VP [economic buyer] at a large high tech company.  We were talking about a business process management project at his company.  Our thoughts…

Think about big projects.

1) Someone has identified a need.  Some typical examples include:  You have a process that is taking too long.  A very expensive error has occurred as a result of something wrong with your process.  You are having trouble meeting weekly output goals.  Your customers are not happy with their interactions with your company.  You have discovered a new market that you would like to address, but your existing processes make it impossible to compete.  And so on.

2) You have performed a return on investment analysis and your inefficiencies are costing you thousands of dollars daily.  You know you need to do something. 

There are 2 extremes: Go out and buy something quickly or spend a year or so making sure that you have made the right choice.  Obviously, the task could land anywhere in between.  Let’s look at the pros and cons.

Quickly – You might get lucky and make the right selection but odds say you won’t.  This choice allows you to cut costs and make some progress on being more efficient.

Spend a year – Your odds of making the right selection go up, but are not guaranteed.  This choice will cost you money for each month that you don’t have a solution and this path doesn’t ensure a successful solution.  No matter your chosen path, any solution you choose will likely need tweaking to make it work properly for your company.

The Takeaway…

Just do it!

My friend pointed out that the money you spent on the quick decision is not lost.  What you will learn during the implementation of the ‘Quick’ solution will make you a much smarter buyer for the next decision.  That next decision could be to improve your quick decision solution or to go another way, but you will be a much smarter buyer.

What is cost of procrastination?  You will learn far more attempting to implement a solution than you will researching the alternatives.

You will never get back the dollars you spent while you were looking for that perfect solution.  And, you will never find the ‘perfect’ anything.  So, what are you waiting for?

Your Thoughts…

This is a rather radical approach, but seems to make sense – what do you think?