PLM Overview & PLM Integration Best Practices

Presentation - OAUG, Oct 2008 Ali Safadi Partner asafadi@cpgsolutions.com

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Agenda Contents CPG SOLUTIONS OVERVIEW PLM DEFINITION & OVERVIEW ORACLES PLM SOLUTION PLM INTEGRATION & BEST PRACTICES LESSONS LEARNED CASE STUDY #1 CASE STUDY #2 QUESTIONS & ANSWERS
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CPG SOLUTIONS

PLM Overview | Oct 2008

Company Description
CPG provides premium Oracle Applications based consulting services for mid-sized EMSC (Engineering, Manufacturing, Supply Chain) companies Founded: Industry Focus: Applications Focus: Integration Expertise: Client Base: Oracle Certifications: 1997 Mid-Market EMSC (Engineering, Manufacturing, Supply Chain) ERP & CRM and industry based applications: PLM, Shop Floor Control, CAD, Testing, and Bar-coding Solutions iLink - Oracle EBS PLM Integration Adapter U.S., Canada, China, Mexico Mid-Market Manufacturing & Distribution Companies Certified Implementation Partner Certified On Demand Partner
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PRODUCT LIFECYLE MANAGEMENT OVERVIEW

PLM Overview | Oct 2008

What is Product Lifecycle Management?

PLM is the process of managing the lifecycle of a product from conception, through design and manufacture, to service and disposal PLM is one of the five cornerstones of a corporation's information technology structure:
ERP (Enterprise Resource Planning) CRM (Customer Relationship Mgt) HCM (Human Capital Mgt) SCM (Supply Chain Mgt) PLM (Product Lifecycle Mgt)

Documented benefits include: Reduced time to market Improved product quality Reduced prototyping costs Savings through the complete integration of data & workflows
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PLM History Increasing Productivity with Technology

1980s - Introduction of Commercial Computer Aided Design (CAD) radically improved

productivity in Product Design

1990s - Adoption of ERP Systems - ERP Systems included Engineering and Change Management Modules - Design & Build remained separated in silos 2000s - Adoption of Workflow & Web technologies accelerated PLM concepts - Workflow enabled collaboration between different company silos - PLM drastically improved NPI cycle cutting time & cost - PLM extended visibility and collaboration to CMs & Suppliers using the web

Present

PLM extended Product Design to 3rd party Design Outsourcing Collaboration extended across the global chain to Customers & Suppliers Introduction of Industry & Government Standards Compliance Adoption of Collaborative Quality Improvement across the supply chain Adoption of Program/Project based PLM Portfolio Management Adoption of PLM Analytics and Intelligence for Cost/Process Analysis & Improv.
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PLM Example: New Product Introduction Process Agenda High-Level Standard NPI Process
Idea Generation Service

Idea Screening

1 8

2 3

Concept Development & Business Analysis

New Product Introduction

7
Commercial Production

4 6
Design & Prototype

5
Beta Testing & Market Testing

Technical Implementation

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New World Global Product Design, Build, Delivery & Service

Product Design, Development, Production, Distribution and Service are expanding beyond the company four walls to 3rd party entities across the globe.

PLM Overview | Oct 2008

PLM Example: New Product Introduction Process Agenda High-Level Standard NPI Process
Customers Idea Generation Service Idea Screening

1 8

2 3

Concept Development & Business Analysis

New Product Introduction

7
Commercial Production

4 6
Design & Prototype

5
Beta Testing & Market Testing Design Partners

Technical Implementation

Mfg Partners

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PLM Business Drivers

Explosion of new products in market requires faster innovation cycles Tiered, global supply chains; escalating uptake of outsourced design & manufacturing partners Push for continued cost reduction, both in product and processes Increased demand for quality coupled with more stringent regulations

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Product Lifecycle Management Opportunities

Component Reuse -- up to 30% Time to Market -- up to 60% Part Numbers -- up to 38% Development Spend -- up to 35% ECO Cycle Time -- up to 50% ECO Admin Expense -- up to 60% Design Errors & Re-Work -- up to 25%
Source: AMR Research, The Value of PLM and How to Get It

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PLM Needs for Tomorrows World

Program Collaboration
Phase-Gate Process Mgmt Project & Portfolio Mgmt Idea Management Resource Mgmt Asset Management Project Accounting

Supply Coordination

Component Mgmt Supplier Change Mgmt Direct Material Sourcing Quality Mgmt

Product Data Management

Customer Input Solicitation

Requirements Mgmt Early Product

Specs / BOMs / ECOs Documents / CAD Files Suppliers

Development Configuration Mgmt

Design / Concept Refinement

Visualization & Markup Web-Enabled Design Sessions

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ORACLES PLM SOLUTION

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Oracles Agile PLM Complete Solution

Program Collaboration

Supply Coordination

Product Data Management

Customer Input Solicitation

Design / Concept Refinement

Agile Product Collaboration Agile Product Gov. & Compliance Agile Product Cost Management Agile Product Quality Management Agile Product Portfolio Management

Agile Engineering Collaboration Agile Engineering Data Management AutoVue Electro-Mechanical Prof. for Agile Agile Product Lifecycle Mgmt Datamart Agile Product Lifecycle Mgmt Bus. Intelligence
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Agile PLM Foundation Single Enterprise Model

Concept

Develop

Prototype / Pilot

NPI / Ramp

Volume Mfg

Service / Phase-Out

Enterprise Product Record

- Specs / Attributes / BOMs / ECOs - Documents / CAD Files - Suppliers (AMLs, Non-Material Info) - Defects / Issues / CARs - Compliance Requirements - True Costs, Metrics, Etc

Capture all product information required to maximize profitability throughout the

entire product lifecycle

Accurately control and track product changes via workflow-driven processes Generate rich product catalogs to store, aggregate, and share technical content Provide secure, web-based internal and external access to product information

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Outsourcing Support Collaborate Global Design & Build

Utilize historical supplier cost and
Your Company

performance data to select partners based upon proven ability to deliver

Svc

Mktg

Engr

QA

Mfg

Control intellectual property -provide role-based partner access to product and project data securely stored within Enterprise Product Record

Coordinated Common set of projects execution via and deliverables Collaborative Concepts, designs, prodprocesses for uction issues, alternatives

Include outsourced partners in

product-level business processes

Integrate supplier expertise earlier in

Design Partners Mfg Partners

the development process to improve quality, lower costs, and accelerate time to market / volume
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Multi-Channel Customer Input Include Your Customers

Include Your Customers in Your Product Improvement Process
Product Marketing
Survey Responses
Web

Customers
Survey Targets

Channels

Product Mgmt / Engineering

Marketing Requirements

E-mail

Conduct proactive,
Subjective Likes / Dislikes

Users of Existing Products

synchronized surveys to collect preference data

Direct

Collect improvement
Loyalty Data
Phone

opportunities from users of existing products

*via Siebel CRM

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Total Quality Mgt Collect Info & Pro-Actively Improve Quality

Collect Enterprise-Wide Set of Problems

Centralized Quality Data

Defects, NCR, Complaints, Field Incidents, Design Defects, Audit Findings,

Proactively Manage Issues

Controlled Process with Analytics

Corrective Actions, Failure Analysis, SCARs, Preventative Actions,

Drive proactive quality improvement initiatives Leverage quality history to improve products

Change Parts and Documents

Modified Enterprise Product Record

ECOs, Stop Ships, Deviations, Parts / BOMs / AMLs, Docs, Audit Records (eg. sign-offs) ,

Reduce service and warranty costs

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Program-Based Portfolio Mgmt Drive Product Mgt Decisions

Potential Projects

Scenarios

Portfolio

Program

1 2 3

1 2 3

1 2 3

1 2 3

1 2 3

Project and Product Integration

Manage product lifecycles as projects Accommodate product attributes into project deliverables Auto-update development activity status on project plans
Project

Portfolio Analysis and Visibility

Determine products to be funded and best resource allocation Achieve a single, integrated view of all projects and products Evaluate at project or portfolio level yet drill into risk / constraint level
Tasks Tasks Tasks

Best Practice Project Management

Create projects via industry templates with pre-defined resource loading Leverage phase-gate product development processes Manage resource pools & assignments; dynamically adjust to future needs

Resource

Resource

Resource

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Closed-Loop Compliance Mgt Meet Industry & Gov Regulations

Configure Parameters & Gather Info

Compliance Data Management

Substances, Specifications, Exemptions, Threshold Values, Supplier Declarations

Analyze, Validate, & Act

Component or BOM-Level Validation

Weights & Substance Analysis, Designs for Environmental Fitness, Haz Mat Content,

Ensure products comply with applicable standards Environmental & Safety:

RoHS, WEEE,

Audit Compliance

Modified Enterprise Product Record

ECOs, Stop Ships, Deviations, Parts / BOMs / AMLs, Docs, Audit Records (eg. sign-offs) ,

Corporate:
ISO 9000 / 14000,

Industry Specific:
DoD, US FDA,

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PLM INTEGRATION

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INTEGRATION Speed Product Launch to Manufacturability

DESIGN INTEGRATION PRODUCTION mBOM, Routings eBOM Compliant & Approved Design
Production Orders

Compliance Check

Create mBOM from compliant,

approved eBOM to ensure appropriate parts are used in production

Material Inventory

Compare

Collaborate with partners while

incorporating lessons learned from prototyping cycles; transfer knowledge to plants and volume production centers

Bu ild

Seamlessly implement changes and

manage performance & cost throughout the enterprise and supply network

Process Hold Supervisor Alert

Ch e ck
Content Deviations

Track issues and deviations throughout

production cycle
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PLM-ERP Integration
iLink: Simplifying PLM Integration
CPG has developed the iLink PLM Adapter that connects leading PLM, Applications including the Agile Suite to Oracle ERP Applications

Enterprise

PDM

Item, BOM, ECO info

EBusiness Suite

TQM

Incident Reports & Product Quality Issues

Seibel CRM

FTP, BPEL, Tibco, WebMethods, etc.

Transport Middleware

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CRM
24

Operations

PLM-ERP Integration
Item, BOM, ECO info

Parts Master

Parts, Revisions, Categories, Attributes, Lifecycle Cost, Lead-times, on-Hand

Inventory
Operations
25

APC BOMS
BOMs, Substitute Comp, Reference Designators

BOM

AML

Approved Manufacturer/Supplier Parts

Purchasing

Change Master

ECO/MCO/SCO Affected Items, Comp, Eff Dates Implementation Dates

Engineering

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Integration Best Practices

Integration Based on PLM & Ops Principles & Best Practices:

1. 2. 3. 4. 5. 6. 7. 8. 9.

Clearly define Process & Data Owners Case Study Example #1 Design Multi-Org Filtering & Propagation Rules Case Study Example #2 Remove Unnecessary Manual Intervention in Oracle True Integration Design Your Revision Scheme Understand the Constraints Design PLM Lifecycle & ERP Item Status Mappings Status Mgt. Design ECO Implementation & Phase-In/Phase-Out Process Define Your Substitute/Alternate Parts Process Not an afterthought Make sure you map Parts Categories/Classifications - Analytics

Ensure User-enable Dynamic Mapping Remove IT from Daily Maint. 10. Ensure User-Friendly Error Notif. & Handling Remove IT from Daily Maint.

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LESSONS LEARNED INTEGRATION CASE STUDIES

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iLink Case Study: Large Telecom Technology Company

Project Overview Replacement of custom Integration of Agile to Oracle EBS using iLink. Project completed in 16 weeks.
1.

Symptoms
2. 3.

Initially, complaint was poor service/support levels from IT (>20 calls per day with delayed response) Part/BOM/Rev not being propagated correctly to multiple orgs. Bad synchronization of Ref Design. causing Prod Quality issues

Actual Problem

Upon analysis, integration did not follow best practices: Integration was hard-coded no mapping capability Company has quadrupled in size since the initial installation IT could not keep up with changes & ended up with spaghetti code Implemented iLink and stressed the use of Dynamic Mapping: Org propagation driven my mapping tables no hard coding Data synchronization for new data at 100% after 3 months Support calls dropped to 1/week resolved within 24 hours The company initially thought the issue was with IT support. Bad design causes bad support. Good design leads to improved service.
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Results

iLink Case Study: Alternative Energy Technology Company

Project Overview Replacement of custom Integration of Agile to Oracle EBS using iLink. Project completed in 8 weeks.
1.

Symptoms
2. 3.

Lots of constraints put on Agile because of the integration (mixing design & prod parts) Lots of Manual Intervention in both Agile & Oracle (ex. Lifecycle) Lack of confidence in data synch accuracy in both systems

Actual Problem

Upon analysis, the issue was not technical, but design/process in nature: Continued use of Oracle Engineering defeated PLM ownership rule Lack of understanding of Data Ownership (ex. BOM enabled flag) No consistency in Revision scheme Redesigned design processes by: Taking total ownership of design process back to PLM from ERP Clearly defining data ownership between systems Redefined revision scheme mapping With the process changes, implemented iLink and fully synch both systems iLink removed all technical constraints from the designers in Agile. A huge win for the organization
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Results

QUESTIONS & ANSWERS

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THANK YOU

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