Evolution of pdm plm technology & value to the industry

BRE398: Building Information Modeling

Evolution of PDM / PLM

Technology & Value to the Industry

Stephen AU

Sept 12 & 19, 2013

Lecture Class BRE398: Building Information Modeling


Topics

Discipline Business Execution

The Challenges of Manufacturing Industry in 21st

Century

Adoption of PLM to Sustain Product Innovation

The value of PLM technology


Lecture Objectives and Results

Objectives

The importance of discipline business execution in today’s enterprises management

To understand how PLM technology sustain product innovation

The value of using PLM in manufacturing industry

Question

What if building construction industry can apply the same technology ?

What are the similarity

and what are the difference?


Topics



Century



BRE398: Building Information Management

Business Execution


The Organization as a SystemBusiness Environment

Geopolitical Regulatory / Legal Economy Natural Environment Culture

Resources

Capital

Market

Labor

Market

Suppliers

Technology

Provider

Financial

Stakeholders

Market

Management System

CompetitionProducts / Services

Customers

Customer orders, requirements and feedback

Return

Investment

Products

/Services

Capital

Human

Resources

Materials

Equipment

Technology


Mana

gem

ent

The Value Machine

$

$

$ $

$

$ $

$

$ $

Resources

Working System

Financial

Stakeholders

$$

Customers


Level 1 – Enterprise / BusinessBusiness Environment

Geopolitical Regulatory / Legal Economy Natural Environment Culture

Resources

Capital

Market

Labor

Market

Suppliers

Technology

Provider

Financial

StakeholdersManagement System

Market

CompetitionProducts / Services

Customers

Customer orders, requirements and feedback

Management System

Value Creation System

Return

Investment

Products

/Services

Capital

Human

Resources

Materials

Equipment

Technology


Level 2 – Value Chain System

Product / Service

Designed

Product / Service Built

Product / Service

Delivered

Product /

Service


Level 3 / 4 / 5 Processing Sub-system

Built DeliveredDesigned

Product /

Service

Portfolio

Managed

Product /

Service

Designed

Product /

Service

Production

planning

Product /

Service

Produced

& QC

Product /

Service

Shipped &

Invoiced

Product /

Service

Support

Open

Project

Engineer

Assigned

and

Scheduled

Product /

Service

Designed

Design

Review

Engineer Assigned and Scheduled

• Engineering Estimated

•Resources Availability

•Job Assigned and Scheduled

•Detail Job Plan Developed

•Design spec reviewed

•Required knowledge

needed

•Engineering hours

estimated

Level 3

Processing

Sub-System

Level 4

Process

Level 5

Sub-process / Task /

Sub-task

Level 2

Value

Creation

System

Level 1

Enterprise /

Business


Business Life Cycle

Management

Intelligent Properties

Exploration

Product / Process

Innovation

CustomerSatisfaction


Productivity

(Pfeffer and Sutton 2000) A much larger source of variation in

organizational performance stems from the ability to turn knowledge into

action quickly.

That greater productivity means better utilization of Wealth-Producing

resources:

Knowledge

Time

the rate of “Brain Formation”


Execution Capability

the discipline of getting things done

not only ensures efficient use of resources in a credit and cash-starved world, but also provide the feedback loop needed for the business to adjust to changes

is what drives the organization along the defined path and allows it to seize opportunities

is what gives you an edge in detecting new realities in the external environment as well as risks.


Operational Inefficiencies

Loss of Project Flexibility•Project management complexity requires stable project plan.

Design Expertise Loss•Management skills development

•Management workload

Knowledge is distributed•Information sharing is costly –emails, meetings, reports, data release

•Design agreements introduce inflexibility

Team LeaderTeam Leader Team Leader Team Leader

Project Manager

Team

Mem

ber

Team

Mem

ber

Team

Mem

ber

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Mem

ber

Team

Mem

ber

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Mem

ber

Team

Mem

ber

Team

Mem

ber

Team

Mem

ber

Team

Mem

ber

Team

Mem

ber

Team

Mem

ber

Team

Mem

ber

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Mem

ber

Team

Mem

ber

Team

Mem

ber

Team

Mem

ber

Team

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ber

Team

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ber

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ber

Team

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ber

Team

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ber

Team

Mem

ber

Team

Mem

ber

Routine work increases•Coordination overhead

•Cost of contract labour

•Distraction of focus


The Inefficiencies of Human

Resources

• Manual work must be checked

– Additional cost and time

– Additional resource

– Additional coordination

– Increased risk of late detection of

engineering error!

or?

or ?

Human Error:

Resource PoolExperts

Experienced

Engineers

Junior

Engineers

Contract

Resources

Additional resource is required but

Contract and inexperienced

engineers may have to be used

Resource and Expertise Availability:

Resource Orientation and Training:

Understand/learn/define

Engineering Process

Understand the existing

Product Definition and

Requirements

Execute

Process


Challenges on Project Complexity &

Communication / Collaboration

Communication effort ∞ [n * (n -1)/2 ]

where, n is the number of communication

nodes.

The more complex of the

project / product

The larger of design network

The heavier the communication

effort


Cost of Confusion

What is your cost of confusion and the value of clarity?

It limits and contains people who are trying to work smarter. Most

people are extraordinary. They want to do the right thing and make a

difference.

Project delay because of communication brokerage (wait and search)

Rework because we don’t know what we know

Engineering changes because lacking of knowledge sharing & reuse

Resources wastage due to limited best practices

If you want more people to make more of a

difference, you’ll have to find a new ways

for them to create their own clarity.


Ask Your People

Can your people within the project see the same thing at the same time? Usually they are over-communication and under-understanding

Have you validated everything before doing?

Have you validated the process before implementation?

How intensive your organization can capture and reuse all the information created in your organization?

Do you improve the product life-cycle cost?


Organization, System, Process &

Function

Functional units describe the flow of authority and responsibility.

Processes are sets of activities undertaken by employees from functional units and managed by managers within functional units.

Process describe the flow of work

Process thinking is just a subset of systems thinking.

System thinking puts the emphasis on understanding the organization as a whole.

Process thinking stresses thinking about the portion of system that produces a specific set of results.


Comparison of Functional and

Process Measure

Department or

function

Typical departmental

measures

Typical process measures

Sales

department

Cost of sales

Revenue ($)

Timely and accurate submission of orders

Timely and accurate entry of new orders

Cost of processing orders

Production

department

Cost of inventory

Cost of labor

Cost of materials

Cost of shipping

Timely order scheduling

Timely and accurate production of orders

Timely shipment of orders

Cost of unit production and shipping costs

Finance

department

Percent of bad debt

Mean labor budget

Timely and accurate invoice preparation

Timely and accurate credit checks for new

accounts

Cost of processing an invoice

External

organizational

measures

Gross revenue

Cost of sales

Growth of customer base

Price of stock

Percent of on-time delivery

Percent of rejects

Customer satisfaction as measured on survey

or index


Business Process Terms

A collection of interrelated work tasks, initiated in

response to an event, that achieves a specific result

for the customer of the process.

A process delivers a result to a customer.

Importance:

Result > Customer > Event > Work Tasks


…that achieves a specific result…

The result must be individually identifiable and

countable.

A good process name clearly indicates the result or

end state of the process.


Information Process Maturity Model

(IPMM)


Immature organizations

Significant differences in process

Reactionary and crisis-oriented

Quality compromised to meet unrealistic budgets

and schedules

Dependent on individual effort

Unpredictable quality in the product


Mature organizations

Organizational commitment to process

Roles and responsibilities well defined

Significant management of the process

Quality continually monitored

Realistic budgets and schedules

Continuous innovation to avoid bureaucracy


Levels of Process Maturity

Level 1: Ad Hoc

Level 2: Rudimentary

Level 3: Organized and Repeatable

Level 4: Managed and Sustainable

Level 5: Optimizing


Organizations With A Mature Mastery Of Their

Processes

The process is ad hoc. Few

activities are explicitly defined

and success depends on

individual effort and heroics.

Organizations at this level routinely expect managers and employees to work together to improve process. They understand their processes well enough that they can conduct systematic experiments to determine if changes will be useful or not

Only a few organizations have an organization-wide understanding of how processes relate and have their corporate strategies and goals aligned, via the management hierarchy, to specific process activities

Most organizations are between levels 2 and 3. They have processes documented and standardized, but in many cases management’s goals are only loosely linked to process goals.

Continuous process

improvement is enabled by

quantitative feedback for the

process and from piloting

innovative new ideas and

technologies.

Detail measure of the process

and product quality are collected.

Both the process and products

are quantitatively understood

and controlled

Basic project management

processes are established to

track cost, schedule, and

functionality. The necessary

discipline is in place to repeat

earlier successes.

The process for both

management and engineering is

documented, standardized, and

integrated by an organization

methodology.

As organizations become more mature they begin to conceptualize business processes and seek to organize them, repeat successes, and measure results

Entrepreneurial organizations and new divisions do things any way they can to get started.

Organizations with an immature

mastery of their processes

Figure 1.4 The five levels of SEl’s Capability Maturity Model (CMM)

1. Initial

5. Optimizing

4. Managed

3. Defined

2. Repeatable


Drivers of IPMM

Manager monitor the quality of products and process that produce them.

Schedules and budgets are based on historical performance and are realistic

The mature organization follows a disciplined process consistently because all the participants understand the value of doing so, and the necessary infrastructure exists to support the process.

To structure processes and activities to guarantee that employees would function effectively.

The only way to overcome those interdepartmental problems is to conceptualize and manage processes as wholes.

When the ball is hit, every player reacts in a discipline manner.


Performance Framework

Goals and

measures

Design and

implementationManagement

Organizationa

l level

Organizational

goals and

measures of

organizational

success

Organizational

design and

implementation

Organizational

management

Process levelProcess goals and

measures of

process success

Process design and

implementation

Process

management

Activity or

performance

level

Activity goals and

measures of

activity success

Activity design and

implementation

Activity

management


Levels of System / Process Analysis

Competition

Social and Regulatory Environment

Reso

urces

Custo

mers a

nd M

arke

t

Management

Engineering Production Finance Marketing Sales &

Support

An Organization

Functions or

Groups inside a

Department

Level 1. The Organization and Its

Environment

Level 1 begins with a supersystem

view that includes the external

environment and then zeros in on the

functions within the organization.

Level 2. Value Chains Process and

Subprocesses

Level 2 begins with the value chains

and core business processes and then

zeros in on processes and

subprocesses. The lowest level process

we analyze is an activity.

Level 3. Activities and Performance

Level 3 begins with the activities and

divides them into roles performed by

employees, software components,

and activities that combine people

and software systems.

Activity

Subprocess

Value Chain or Core Business ProcessProcess


Function vs Process

Management


Support

An Organization

Functions or

Groups inside a

Department

•Function•A Function is a kind of work, or a

field, which typically involves similar

skills and tools, and has its own

languages.

•Work method will be defined for

the benefit of the individual function,

not to optimize the manner in which

work flows through the functions.

Leve

l 1

Leve

l 2

Leve

l N

Processes•Process

•A collection of interrelated work

tasks, initiated in response to an

event, that achieves a specific result

for the customer of the process.

•A process delivers a result to a

customer.

•Importance: Result > Customer >

Event > Work Tasks

Process / Workflow Management

Innovation SelectionDetail

Design

Concept

Business

Cases

Study

Mechanical

Engineering

Market

Information

Financial

Information

Product

performance

Information

Pro

cess

Act

ivitie

sIn

form

ation

Challenge o

f Best

Pra

ctic

es:

Coord

ina

tion

, C

orp

ora

tion,

Co-d

eci

sion, Synch

roniz

ation &

Optim

iza

tion

Peo

ple


A Process Supported By Six Enablers

Process

Enabler:

workflow

design

Enabler:

information

technology

Enabler:

collaboration

culture

Enabler:

human

resources

Enabler:

policies &

rules

Enabler:

facilities

and

others

A. Sharp, P. Mcdermott (2000),”Workflow Modeling”,

Atech House., pp.34, Fig.3.1.


Factors Affecting the Performance of an

Activity

Activity ConsequencesInput Output

Feedback

2. Activity Support

•Can the performer easily recognize

the input requiring action?

•Can the activity be done without

interference from other activities?

•Are adequate resources available

for performance (time, tools, staff,

information)?

1. Activity Standards

•Do activity standard exist?

•Does the performer know the desire output

and standards?

•Do performers consider the standard

attainable?

3. Skill, Knowledge and Capability

•Do the performers have the necessary

skills and knowledge to perform?

•Do the performers know why desired

performance is important?

•Are the performers physically, mentally,

and emotionally able to perform?

4. Feedback

•Do performers receive information about

their performance

•Is the information they receive

•Relevant?

•Accurate?

•Timely?

•Specific?

•Easy to understand?

5. Consequences

•Are consequences aligned to

support the desired

performance?

•Are consequences meaningful

from the performer’s perspective?

•Are consequences timely?

Figure 6.4 Factors affecting the performance

of an activity. (Modified after Rummler and

Brache, Improving Performance)


A Closer look at a Manager’s JobJob Functions of Manager Responsible for the Process

Plan Process

Set goals and expectations

Establish plans and budget

Provide resources and staff

Implement process

PROCESS EXECUTED

Control Process

Monitor process

Reinforce success

Diagnose deviations

Take necessary corrective actions

Changes in Goads and Plans

Goals/ Measures

Expectations, Plans,

and Resources

Feedback Data about

results

Process

Output

Measures

①

Inputs Results


Manager’s Work

Product – to enhance our customer’s life quality

Process – to enable the delivery of the product

Resources – to make the things happen

Tightly structured, with

formal lines of command

clearly drawn and

meticulously observed.


Definition of Workflow TermsBusiness Process(what is intended to happen)

Process definition(representation of what is intended

to happen)

Workflow management

system(controls automated aspects of the

business process)

Process instances(a representation of what is

actually happening)

Manual activities( which are not managed as

part of the workflow system)

Automated

activities

Reproduced from the workflow

management coalition

specification: workflow

management coalition

terminology & glossary

⊙ 1994-1999 WFMC

Work items(tasks allocated to a

workflow participant-

person or machine)

Invoked application(applications used to support

an activity)

Which

include

one or

both

Activity

instances

Include one or more

Activity

via

Used to

create and

manage

Which

may be

either

Include one

or more

during execution are

represented by

Managing and Measuring Business

Process (Example: Sales)

Organization

Output

Department

Output

Business

process

Outputs

Process

Outputs

Subprocess

Outputs

Task

Outputs

Activity

Outputs

Org

ani

zationa

l

Leve

l

Who

se

conc

ern

CEO

VP of sales

Sales Manager

Software systems

designer

Human

Resource

Measu

res

for

Sale

s

ProfitsSales

Revenue

Customer

Order

1. Leads qualified

2. Appointment obtained

3. Opportunities identified

4. Proposal requested

5. Proposal submitted

1. Information gathered

2. Needs identified

3. Decision makers identified

4. Constraints identified

5. Credibility established

1. Relevant data sources

identified

2. Interviews scheduled

3. Interviews conducted

4. Conclusion reached and

recorded

1. Interview objectives established

2. Questions asked

3. Examples collected

4. Points restated and qualified

5. Interviewee reinforced for

talking

6. State how interview was helpful

7. Repeat how data will be used

8. Interviewee thanked


Performance MatrixGoals and measures Design and implementation Management

Organizational goals and measures

of organizational success

Has the organization’s strategy / direction

been articulated and communicated?

Does this strategy make sense, in terms

of the external threats and opportunities

and the internal strengths and weaknesses?

Given this strategy, have the required

outputs of the organization and the level of

performance expected from each output

been determined and communicated?

Organizational design and

implementation

Are all relevant departments and value chains

described in a process architecture?

Are all departments and processes necessary?

Is the current flow of inputs and outputs

between departments, value chains, and key

processes appropriate?

Does the formal organization structure

support the strategy and enhance the

efficiency of the system?

Organizational management

Have appropriate department goals been

set?

Is relevant performance measured?

Are resources appropriately allocated?

Are the interfaces between departments

being managed?

Process goals and measures of

process success

Are goals for key value chains, processes,

and subprocesses linked to each other and

to customer / organization goals?

Process design and implementation

Are value chains and business processes

decomposed into logical and efficient

processes and subprocesses?

Are these the most efficient and effective

value chain, process or subprocess for

accomplishing the goals assigned?

Process management

Have appropriate process subgoals been

set?

Is process performance managed?

Are sufficient resources allocated to each

process?

Are the interfaces between subprocesses

and activities being managed?

Activity goals and measures of

activity success

Are activity outputs and standards linked

to process requirement (Which are in turn

linked to customer and organization

requirements?)

Activity design and implementation

Are activity requirements reflected in system

or job descriptions of people assigned to the

activity?

Are activity steps in a logical sequence? Have

superlative policies and procedures been

developed?

Is the activity environment ergonomically

sound?

Activity management

Do the performers understand the activity

outputs and standards they are expected to

meet?

Do performers have resources, clear signal,

priorities, and a logical job design?

Do performers have the skill / knowledge t

meet goals ?

Do performers know if they are meeting

goals?

Are performers rewarded for achieving

activity goals?

Org

aniz

ational

level

Pro

cess

level

Act

ivity level


Business Process Management

• Is the current business process be effectively and efficiently performed?

• Is the current business process be effectively managed?

• Does the current design of the business process offer the potential for a competitive advantage?


What Is ‘Lean’

‘Lean’ is a way of working which identifies and

eliminates waste to deliver improved value and

service, based on identified customer requirements.

Lean Production Lean Design

Lean Reduce Waste

Production On Demand

Improve Quality

Process Optimization

Customer Driven

Benefits Cost Reduction Value Added


Where are the Wastages in NPD?

Process waste

Information waste

Work waste

Human energy waste

Reference: Based on original material from Scottish Executive, ‘Lean Masterclass’


Process Waste

Strategic waste -is effort wasted as a result of processes that are not

focused on customer or stakeholder value,

Unbalanced flow waste -this is the resource we commit to perform that piles

up between workstations or tasks

Standardisation waste -is the effort required to correct for the

consequences of optional methods applied by individual employees,

Reliability waste –correction of unpredictable process outcome due to

initially unknown causes,

Checking waste -the effort used in inspection and rework,

Boundary waste -correction of errors/re-keying that occurs when work

moves from one area to another.


Information Waste

Translation waste -the effort required to change data

or formats between process steps,

Missing information waste -effort driven by the

absence of key information,

Irrelevant information waste -the cost of having to

sort through or deal with irrelevant information,

Inaccurate information waste


Work Waste

Processing waste -inefficient work as a result of

inadequate training, missing information,

Motion waste -movement that does not add value,

Waiting waste -people waiting for information, a

meeting, a signature or approval


Human Energy Waste

Lack of clear Focus waste -not consistently aligned and energised to

address critical issues,

Ineffective Structural waste –waiting for approval action etc.,

Lack of Ownership waste –no clear ownership of the issues,

Ineffective Control of quality waste -non productive supervision and no

feedback on actions and outputs,

Tampering waste –arbitrary changes to process without understanding the

consequences,

Inappropriate Assignments waste -working on unnecessary or inappropriate

tasks,

Goal Alignment waste –working at cross purposes and duplicating work.


Lean Strategies for NPD

A holistic, systems approach to product development.

An imbedded customer first approach to product

development

A front-loaded process

Built-in learning and continuous improvement

Synchronize processes for simultaneous execution

Use rigorous standardization to create strategic

flexibility

Go to the source engineeringRef: By James Morgan, Vice President, Troy Design and Manufacturing


Framework for Getting Simple


Topics

Effective and Efficient Business Execution


Century




• Which Product for which

customer ?

• Will it sell? Will it fit?

• How to speed up time to market ?

• How to develop “right first time”

production operations

Present Industry Challenges

Source AMR Research

52%

39%

Product does not meet Customer needs

Product is late to market


Open to view the “Evolution of Apple” avi


Evolution of Apple Products

2001 - 2006


Evolution of Apple Products

2007 - 2011


Innovation Values - Product

Raise

Reduce

EliminateCreate Value Curve

A B C D E F

Key e lem ents o f p roduc ts , s erv ic e and de l iv ery

3

4

5

6

7

8

9

10

Re

lati

ve l

eve

l

The Value C urve

ExamplesA - Price

B - Ease of use

C - Features

D - Durability

E -Size/ Weight

F-Technology

New product

Current products

http://www.google.com.hk/url?sa=i&rct=j&q=iphone+5s&source=images&cd=&cad=rja&docid=WzwoOLNF_nc_NM&tbnid=bk7k7FqJcqKjiM:&ved=0CAUQjRw&url=http://sitesgadget.com/news/iphone-5s-will-be-announced-june-20&ei=fDIrUseBGOyiigfg94EY&psig=AFQjCNGibWakcZD3okYHqyV8IUFHSM8mkQ&ust=1378648981751923

http://www.google.com.hk/url?sa=i&rct=j&q=iphone+3&source=images&cd=&cad=rja&docid=hfwGObA-4UjTsM&tbnid=zmI-6g1AJKzYZM:&ved=0CAUQjRw&url=http://support.apple.com/kb/HT3939?viewlocale=zh_CN&ei=xTIrUuv1OsLtiAep54GQCg&psig=AFQjCNFVUSLViBJuxngsadanxAHZc_rFcQ&ust=1378649148094005


Technology Evolution


Customer Evolution


Apple Stock Evolution $525.62 4:00PM 15/11/2012

EST - Nasdaq Real Time Price


Challenges on High Tech Industry

To succeed in this market, You have to innovate new products faster (time to market of 3-6

months), streamline operations and collaboration.You need to achieve global development excellence and

efficiency by leveraging core competencies of the value chain to ensure on-time, on-cost and quality product delivery.

Integrate regulatory compliance into product lifecycle processes to reduce business risk and sell products in global markets.


The Industrial Trends (1)Former Paradigm

Cheap

manual

worker

Productive

knowledge

worker

Competitiveness

factor

Expansion of

Production

facilities

Investment in

Product / Process

InnovationStrategy

New Paradigm

Supply Driven Demand DrivenMarket


Industrial Age

Value model

Capability assets•Individual

•organizational

Capital

& tools

labor

technology

The Industrial Trend (2)

Capability Assets in Two Ages. The relative importance of capital and tools has

diminished significantly in the Knowledge Age, while people with knowledge,

technology , and businesses processes have become much more important .

Knowledge Age

Value model

Capability

assets•Individual

•organizational

Capital &

tools

Process

labor

technologyKnowledgeTacit & explicit

Ref: W. L. Miller, L.Morris, Four Generation R&D

« As is »

« As dreamed »

From « gate-based »…

To « concurrent »…

To « Time Space Knowledge ubiquity »

1

2

3

Time Saved

Time Saved + Creativity Improvement

The Spiral of Innovation

A New Paradigm for NPI Approach


Concurrent Engineering

Scoping Business Case Development Test/Validate Launch

Gate Gate Gate Gate

Project

Management

Manufacturing

Design

Marketing

Other functions

User/client requirements

Ideation

P roduct Concept Design

Systems Design

Detailed Design

Market & technology study

P lan product opt ions/family

Refine options/family

Develop market ing plan, launch mat ls

P lace product with key client s

Analyse client &

user feedback

Evaluate design effectiveness

Assess mfg feasibility & tech

Estimate production costs & manufacturability

Make/buy, identify suppliers

Develop mfg/assy scheme & plant, quality assurance & procurement

Refine product ion system to st eady state

Economic analyses; patent s; IP

Identify maintainability issues; develop service plan

Advertising/promotion plan & devel

Create/maintain schedule, oversee HR and admin functions, maintain budget, track progress,

ensure accuracy, manage workflow and information flow

People

Analyze customer trends, intelligence

and requirements to achieve product

innovation and excellence. Manage

efficiently ‘to order’ needs of customer.

Enable extended enterprise to create,

manage and collaborate on single version

of product truth

Allow multi-discipline IP

management in multi-CAD

environment

Digital product validation for rapid,

efficient and right to market product

development

Ensure virtually manufacturability of

product at various mfg. sites before making

any investment

Use 3D Media as a

new method to

reach customers

CONCEPT

Document

Spiral of Innovation Vision


SuppliersCustomer

Multi

team

skilled

Marketing

Design

Manufacturing

New Product Development Resources Map

Customer

Adaptability

Feasibility

Creativity

Manufacturbility

Processibility

Productivity

Reliability

Costs QualityTime to

market

Brand

value

Bus

Orgn.Knowledge

Customer

ShareInnovation

Knowledge Community


Spiral of Innovation – How Do You

Manage?

On Line Collaborative Engineering

Innovation

Consistence Product / Process /

Resources integration

Time to market

Knowledge Management

Quality & Cost

Risk management

Visible Project Execution


Collaborative Innovation Is

Indispensable


Different Perspective of the Product

throughout the Product Life Cycle

Ref: Fig 5-1 P.G.Smith & D.G. Reinertsen, ‘Developing Products in Half the Time’, 1998


On Line Collaborative EngineeringCo-ordinate, Co-operate and Co-decision


Knowledge is the fuel of innovation

Knowledge as information put to

productive use.

Knowledge can be distinguished into

tacit – e.g. Customer behavior,

Experience, Branding,….

Explicit – e.g. Scientific principle

Nonnak’s knowledge

management model

.


Data, Information, Knowledge & Wisdom

DATA

091200DL5508201430

Information

Date 091200

Flight DL55

Departure 0820

Arrival 1430

Knowledge

But flight 55 is always late,

you’ll miss you meeting!

Wisdom

It doesn’t really matter!


Knowledge - The Russell Ackoff

Model

77

Data

Theory

Information

Experience

Knowledge Understanding Wisdom

description:

Whatinstruction:

How toexplanation:

Why

what is best:

Care why

doing things right doing the right things

Vision & design:

What could and should be done

the futurethe past

Knowledge & engineering:

What has been done

Michael Polanyi “ We

can know more than we

can tell.”

Knowledge is the fuel

of innovation

Knowledge as

information put to

productive use.

Knowledge emerges

through shared contexts

that are created through

interaction.



Capture

Share

Use

Create Knowledge


KM Operation for Success

Related Information:What and where can I find the related information?

Necessary Knowledge:What do I need to know to complete my task?

Decisions:What Actions do I need to take?

Leadership:Can we do it on time & within budget and project scope?

Customer Needs:Style, function, time to market, quality,…..

CO

NC

EP

T T

O P

RO

DU

CT

PR

OD

UC

T T

O P

RO

FIT


Knowledge Sharing in IPD

Shared

Knowledge of

Customers

Shared

Knowledge of

Suppliers

Shared

Knowledge of

Internal

Capabilities

IPD Process

Performance

Time to Market

Value to Customer

H1

H2

H3

H4

H5

H1: The greater the extent of sharing K. of customers, the greater the extent of teamwork and development productivity

H2: The greater the extent of sharing K. of suppliers, the greater the extent of teamwork and development productivity

H3: The greater the extent of sharing K. of internal capabilities, the greater the extent of teamwork and development productivity

H4: The greater the extent of teamwork and development productivity, the greater the extent of time to market

H5: The greater the extent of teamwork and development productivity, the greater the extent of value to customer

Improving overall product development

may require strategic thinking on how

critical components of knowledge

should be shared among cross-functional

team members

Hong, P., F. D. Williams, et al. (2004). "Knowledge sharing in

integrated product development." European Journal of Innovation

Management 7(2): 102-112.


The Challenge of Knowledge Cycle

84

Product

Innovation

= Knowledge

Creation

Design Specification

Market surveys

Concept ional experiences

SkillsTechnologies

Research

Process Know-How

Customer Requirements

Market data

WWW

Service information

Manufacturing Know-How

Design Methods

Quality information

Standards

Regulations

Patent information

K. CaptureProduct Data

in KMS

systems

Irreversible Knowledgewhich is obsolete or lost

after the project

K. L

os

s

Reversible Knowledgemust be accessible and

available for new projects

K.

Re

us

e

BRE398: Building Information ModelingK. Management K. Based Engineering

Knowledge Life Cycle

Explicit Knowledge

Formalize

Consulting

MethodologiesBooks of

KnowledgeIndex

Semantic

Parser Translate

Engines

Expert

Knowledge

Knowledge

Database

Search

End-user

3 levels of Knowledge Capture &

Share

K. Quality

K. Quantity

K. Speed


Product Line

Mobile Terminal

IC Card Reader

Cooling System

Keypad

Power Cord

ModelAM 1234

ProductAM 1234

Internal Unit

Varies By

(Roll-up)

LCD Color

Front Panel

LCD Display

Chip Card ReaderMSR Card Reader

ISO Track 2-3

ISO Track 1-2

LED back lit

19 Keys

Plate

I/O Interface

Chip Card Reader

Real Time Clock

LED backlight

LCD Color

Keypad

Varies By

CPU

Rating

Rear Plate Color

Rear Plate Color

Rating

CPU Rating

CPU Rating

Marketing

Features

Rear Plate Color

High-Speed

Build-In Reader

Light-Weight

FM Radio

Memory

IO Interface

Color Display

BuyerColor

Build-In Reader

I/O Interface

Memory

…

Back Panel

Consistence Product / Process /

Resources integration

Product

Planning

Project

Managers

Designers,

Product

Engineers

Product

Managers

Executives

Process

Engineers

Resources - Task Breakdown Product Architecture

Process Running

http://www.spectratech.com/Home.aspx/406


Topics



Century



Smart Management

Process

Kn

ow

led

ge

Tool

Org

an

iza

tio

n

(1) From Sequential Activities to Product/Process Integration

(2) From Carry-Over

to Intelligent Template

(3) From Human Based Sharing to Multi-site Collaboration

(4) From Skill Worker

to Knowledge Worker

Potential Business Benefits

Cycle Time : 35 to 80% Faster

Productivity : 20 to 30% Increase

Material Cost : 10 to 25% Reduction

Innovation Yield : 15 to 20% Fewer ECR

Overhead Costs : 4 to 12% Reduction

Benefits of

World Class PLM

Source

AMR Research 2003


Definition of PLM

CIMdata defines PLM as:

A strategic business approach that applies a consistent set of business

solutions in support of the collaborative creation, management,

dissemination, and use of product definition information across the

extended enterprise from concept to end of life—integrating people,

processes, business systems, and information.


PLM to All NPD Stakeholders


Imagine | Play

Governance

Global Sourcing

IP Lifecycle Management

Unified Live Collaboration

Lifelike Experience

Collaborative Innovation

Digital Manufacturing& Production

Realistic Simulation

Virtual Design

Systems

Shape

Mechanical

Equipments

Compliance

Multiphysics Digital Lab

Open Scientific Platform

Manufacturing Planning

Plant & Resources Eng.

Program & Control Eng.

Production Execution

PLM V6 Portfolio Architecture


PLM – All Domains working on the

“Single Version of the Truth”

Design

Product

Management

Program Management

Governance

Global Sourcing

Compliance

Sales /

Marketing

IP Lifecycle

Management

Unified Live

Collaboration

Production

Engineering

SourcingSuppliers

Customers

Partners

Technical

PublicationsManagement

Quality

Component

Engineering

Analysis


Design

Product

Management

Program Management

Compliance

Sales /

MarketingProduction

Engineering

SourcingSuppliers

Customers

Partners

Technical

PublicationsManagement

Quality

Component

Engineering

Analysis

Governance

Global Sourcing

IP Lifecycle

Management

Unified Live

Collaboration

PLM – All Domains working on the

“Single Version of the Truth”

DASSAULT SYSTEMES - Page -

Collaborative Systems Engineering

Collaborative Mechatronics Engineering

Simulation & Validation

Manufacturing & Operation Management

Enterprise Business Processes Engineering Processes

Collaborative Systems Engineering Digital Manufacturing ProcessesColors legend:

New Product Development and Introduction

Cross Functional BOM Management

Regulatory Compliance

Component Supplier Management

Supplier Relationship Management

Portfolio Management & Technology Platform

Product Enclosure Engineering

The High Tech Industry PLM Business Processes

Issues & Change Management

Enterprise Project Management

Conceptual &Creative Design

Concept Initiation

New Product Development

Concept Freeze

Design Freeze

Product Validation

ManufacturingValidation

Start Of Production

Market Launch

End of Life

PLM System Operation Scenario

Customer

Request

NPD

Project

• Lead

Engineers

Actions to

Engineers

Product Designer

Mfg. Engineer

Tool Designer

• Detailed Actions

• Associated Work

Statement

• Interface Agreements

– Accept Action

– Create & Mature the Design

– Resolve technical issue

– Satisfy Interface Agreements

– Safety Standard Approvals

– Promote Shape to “Locked”

– Promote engineering to

“Locked”

Design In Context

Knowledge DrivenProduct

Procurement

Interface

– Accept Action

– Provide Producability Input

– Create Assy /Instl Plan


– Create Tool Design Action

– Create Detail Fabrication Plans

– Assembly & Fab Simulation

– Gain Approvals

– Promote Plan to “Locked”

Interface

Production

Plans

– Accept Action

– Create & Mature the Design

– Resolve Interference/Separation

– Use Plan Context


– Gain Approvals

– Promote Shape to “Locked”

– Promote Drawing to “Locked”

Tools

Interface

Interface

Engineering Change

• Dynamic / Instant

EBOM

• Dynamic /Instant

MBOM

• Instant Change

Events

ERP

• BOM

• Mfg. Plans

• Part

Orders

Pullable Views

• Part Definition

• Fab & Assembly

Plans and Tool

Definition

Suppliers

Sales & Marketing

Offering:

•Brand

•Skill

•Specification

•Proposal

•Delivery time

•Price

•……..

Customers

PLM

• Checkout Standard

Design template,

Process, Parts,

Features & Knowledge,

customer configuration

info…...

Concept >> Plan >> Develop >> Produce >> Support >> Disposal

RequirementsBreakdown & Related

documents

FunctionalBreakdown & Related

documents

SystemsBreakdown & Related

documents

ManufacturingBOM & Related

documents

MaintenanceBOM & Related

documents

EngineeringBOM & Related

documents

Configuration and Diversity Management

Sourcing

Requirements Management Regulatory Compliance, Quality


Change Management and Issue Management

Supply

Service After SalesProgram Management

Process Synthesis for Collaborative System

Engineering

Cross-function repository

Use a single system to manage configurations and

changes across lifecycle

Link and integrate requirements, product and regulatory information to systems specifications

<

Enable identification ofother systems impacted by innovation on a dedicated

system

Enable to drive innovation studies as workpackages witn

change management capabilities in context of global

product configuration


PLM to Support Knowledge

Management

Knowledge

Share

Knowledge

Reuse

Knowledge

Create

Structuring of internal

and external information

& development of

Database

Quick access to

relevant

information

Building the

collaboration

platform

Integrate Knowledge

into product

development

Knowledge

Management

SystemPLM

Knowledge

Capture


Process Management

Automate the business process

Integrate various business process internal & external

Optimize

To be agile

To avoid latency

To enable concurrent

Monitor & control

Management


Support

An Organization

Functions or

Groups inside

a Department

Le

ve

l

1

Le

ve

l

2

Le

ve

l

N

Processes


Example of a Business ProcessRequest for Quotation in a Virtual Company

Open to view the “Worflow automatization Business Process” avi


On Line Collaborative EngineeringCo-ordinate, Co-operation & Co-decision


On Line Collaborative EngineeringOpen to view “mek“ avi


Project Management

From a pure vertical optimization…

- Business function orientated

- Cost reduction as a key objective

2

OP

TIM

IZA

TIO

N

RecycleSupportProduceTestDesignPlanConcept

…to a balanced approach!

- Improving both bottom-line and top-line

- Cadence means projects are scheduled to a predictable rhythm

- Flow means knowledge & material are available when needed

- Pull means everyone responds directly to the needs of their

customers, producing as required

- A transversal approach allows to optimize a program across its

entire lifecycle

- Support the management of and collaboration on project data

across distributed product development teams

- Balance resources utilization

- Reuse of successful projects

- Manage multiple projects and tasks together within their

deliverables

- Combine all product knowledge in single environment

2

OP

TIM

IZA

TIO

NTransversal optimization

Program N

Program 2

Program 1

DisposeSupportProduceTestDesignPlanConcept Lifecycle integration


Visible Project Execution

•Digital Mock UP

•Cross-disciplines

engineering data

& process

management

•Real time control

& monitoring

Electronic design

Mechanical

design

Software

development

System design

I have a

new

requirement

Program Backbone

Program Planning &

Controls

Resources management

Contracts / requirements

Risks and opportunities management

Discrete (Events) Continuous

(Physics)

Program metrics 3D Dashboards

Program deliverables

Requirement item, project, sub-project, tasks, deliverable status ,roles, skills…

Link contract data requirement to

schedule

Link schedule/contract to product deliverables

Link to appropriate allocated resource

Program Management Real time monitoring of program activities with cross-functional process integration

Engineer / User ViewMy To-Do Tasks List

Red, Yellow, Green

Engineer / User View

• Each engineer has its own “My Tasks” list.• Clearly showing the due date.• Easy identify expired tasks.

• Real-time update of information.

Project Manager View

Project Status with Phase-Gate.

Real-time, up-to-date Project

Milestone Info.

Individual Project


• No extra reporting effort.• Initiative project status information.• Support Phase-Gate Methodology.• Real-time and most up-to-date information.

Individual Project

Project Manager ViewProgram Dashboards Easily catch up

project current phase.

Slip Days show you the project remaining time. List out the

potential risk of the project.

Project Assessment

Quick Access


• Quick Review for Existing Projects.• Dashboard Details are real-time generated,

all the information are up-to-date.• Easy access to Work Breakdown Structure,

Project Assessment, Project Budget.

Program Dashboards


VIEW THE PGMGT_final.FLV

../../../../../Saleskit/MatrixOne/Program & Portfolio Management/Sales/PGMGT_final.flv


Topics



Century




V6 – Bringing PLM 2.0 to Life

Open to view “V6_MAY_50s_FINALnet1024“ avi


New Face of ExecutionRapid identification of

individuals who can help

Be always available, always on,

always connected, anywhere, at any

time

Support the free flow of ideas

in an open environment

Be mobilityWork with fun for Y- Generation

Under security control and

management


Value Proposition of PLMIt’s about NETWORK

Communities

Interoperability

Winner-Take-All

It’s Digital

Low-cost Reproduction, Distribution

Trumps Physical Assets

Volatile and Frictionless

It’s about Knowledge

Leveraged Innovation

Knowledge Workers

Privacy vs Customization

It has no Bounaries

Global

Value Nets

Flexible Work Force

Traditional Economy

Supply-Demand Generation Business

New EconomyNet-Generation Business

e-Line

Costs QualityTime to

market

Brand

value

Bus

Orgn.Knowledge

Customer

ShareInnovation


Framework for Getting Simple


What Success Looks Like

When time is organized for getting stuff done and thinking

• You control how time gets used – On Demand in any place at any time .

When people can trust the platform to help them work smarter

• 3D for All, when tools, processes, and information are grounded in what people need, execution is easier, faster, smarter & with FUN

When people can navigate infinite choices

• Innovative products & services are created to fulfill customer requirements. Right At the First Time is achieved


PLM Impacts Everything

ReduceCosts

IncreaseSuccessof NewProducts

ImproveProductQuality

ReduceDefects

MaximizeCash Flow

ImproveService

ImproveCustomer

Satisfaction

ReduceRework

ProvideComplete AccurateProject Information

Use MoreStandard

Components

ProvideComplete AccurateProduct Information

ImproveChange

Management

MaximizeMargin

ReduceTime toMarket

Reduce ProcessCycle Times


PLM Impacts Everything

Inventory costs 15%PD launch cost 20-35%Support personnel 50%

ProvideComplete AccurateProject Information

BOM accuracy

70%

Duplicate parts 10%Redundant data 20%

Search for info 60%

ECO Volume 10%ECO cycle time 25%

ECO labor costs 45%

MaximizeCash Flow

ImproveCustomer

Satisfaction

Cost of Poor

Quality

40%

Quality

15 to30%

IncreaseSuccessof NewProducts

Scrap

15%

ReduceRework

Margin

10 to15%

TTM

10 to20%

PD cycle time 20%Sourcing time 65%

Mfg. changeover 80%

Execution Transformation


What We Have Just Seen?

Intellectual

Capital

Organization Capital

Leader, team, horizontal organization intelligent

and integrated working system

Knowledge Human Capital

Continuous learning, knowledge

stimulated and recognized

Social Capital

System Capital

Information and Knowledge

shared nets

Ref: A.M. Webber, Smart Business


It’s Good But…..

It is the POLITICAL challenge of

getting stakeholders across functions to

agree on common business processes

It’s about IT to enable business teaming

together to work through how THINKSshould run ….Susan Kampe,

Vice president and general manager of IT,

Johnson Controls

Innovate our mind before

innovate the product & process!


[email protected]

Questions & Answers


Reference Books

http://www.google.com.hk/url?sa=i&rct=j&q=business+execution&source=images&cd=&cad=rja&docid=MKgGYs6UZsCfnM&tbnid=ONceAZbtO2CKWM:&ved=0CAUQjRw&url=http://www.douban.com/subject/1157979/&ei=_TQsUryDIrC4iAfVmIDYAQ&psig=AFQjCNHJD6fiBJG4GXzuyh7LsCcvOKQebA&ust=1378714478514097


References

Drucker, P. F. (1973). Management: Tasks,

Responsibilities, Practices, Harper Business.

HARMON,P. (2003). Business Process Change,

Morgan Kaufmann.

Evolution of pdm plm technology & value to the industry

Technology

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