Executive PLM Consulting Overview

Product Lifecycle Management Executive Summary:

Darrel Suderman, PhDPresident, Food Technical Consulting

303-471-1443www.FoodBevBiz.com

http://www.foodbevbiz.com/

04/18/2023 Confidential & Proprietary to Food Technical Consulting 2

About Food Technical Consulting

Business Focus:I. QSR/Fast Casual Restaurant Consulting – KFC,

Boston Market, Church’s Chicken, Quiznos, Chick-fil-A, Wendy’s International

• New Product Innovation• Cost Reduction• Project Management• Equipment Testing and Operations

II. Food & Bev Food Litigation Expert Witness – represent food companies in litigation & risk management


About Food Technical Consulting

Business Focus:III. Food & Bev IT Systems Consulting (7 years) –

Foster Farms, Johnsonville Sausage, Jennie-O Turkey Store, Gold’n Plump, E & J Gallo Winery, Organic Valley

– Manufacturing, Supply Chain Management, Business Performance Metrics, & PLM

IV. Quality Assurance & Food Safety– SQF Training– Tracking and Tracing Solutions

V. Food & Beverage BI Financial, Marketing, and Operations Analytics with SAP Tools


Unique PLM Consulting Benefits

Food Technical Consulting provides the following valued benefits to our clients:

1. Deep, rich knowledge and experience in the food processing industry that software companies lack

2. Understand new product development processes, specification requirements, and user needs across the organization

3. Independent PLM assessment. We work for the food companies, not software suppliers.

4. This knowledge and understanding can reduce implementation costs significantly


PLM Consulting Services

Food Technical Consulting assists clients with the following PLM selection steps:

– Create an RFP– Research candidate vendors & products– Send RFP to vendors– Receive & review proposals– Setup & hold demos for select vendors– Narrow vendor list– Prepare final two deep-dive demos– Final vendor selection


PLM Consulting Assistance

1. Business Need Identification2. Define Selection Strategy3. Define Solution Functional Requirements4. Assist Selection Criteria5. Identify Solution Architecture (Strategic IT Fit)

6. Detail Final Four Capabilities7. Perform Vendor Reference Checks8. Final Two Selection Process

9. Final One Selection Process10. Extract Implementation Value11. Extract Strategic Business Value12. Extract R&D and QA Business Value13. Managing Change Management 14. Identify Other Road Hazards

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Example of Critical Business Need

A client is experiencing rapid growth requires centralized critical business information to drive internal efficiencies:– Over 30 New Product SKUs annually– Over 50 Private label SKUs– Over 200 New Producers/Suppliers Annually– Over 30 Individual Manufacturing Locations– Nationwide production and distribution models

04/18/2023 8

Example of Critical Business Needs

• Business has become complex• Supplier list continues to expand• Customer list continues to expand• Internal work processes cannot keep pace with

information demands• New Product Development, Quality, & Food Safety

processes need more structure environments• Ingredient and Product Information is vast • Ingredient & Product Tracking is required

Confidential & Proprietary to Food Technical Consulting


PLM Needs by Department

• R&D = New Product Development Workflow Process• R&D = Integration with Genesis Nutritional Info• QA = Product Specifications and Certification Info• QA = Auto Specification Electronic Version Control• Marketing = Integrated Marketing Calendar with R&D

Workflow Process & Product Info Sheets for Sales• Packaging = Packaging Specification & Labeling

Database• Production = Product Tracking and Tracing Process


PLM Functionality(It’s Simply a business “tool”)

• Document Management• Data Management• Formula Management• Specification Management (Workflow & Approval)• Certification Management (Workflow)• New Product Development Workflow

Management• Internal & External User Data Access• Marketing Calendar Workflow Management• Interface w/ other biz apps like Genesis R&D,

Infinity QS, Private Label and Retail Customers• Data Mining - - - - - - to name a few!


Business Functions/Processes

BUSINESS PROCESSES

RESEARCH & DEVELOPMENT

SALES

PRODUCTION (OPERATIONS)

PROCUREMENT

MARKETING

QUALITY ASSURANCE & FOOD SAFETY

FINANCE

DISTRIBUTION

… to Facilitate Complex Business Communication and Data Management

Need – Structured business process workflow (i.e. NPD) & document management control


Coordinated PLM Functionality Vision

PLMSQL Db

LIMS(Lab Mngt)

NIMSGenesis

(Nutrition)

SIMS (Sensory)

SPC (Statistics)

Customer PLMAgentrics

Finance

CRM

Consumer FeedbackSystems

Training


General PLM Benefits

• Improve speed to Market 20 – 40%• Increase # products in pipeline development• Increase throughput 300%, with no cost

increase• Reduce Packaging & Artwork Costs• Manage compliance & boost sales volume• Increase margins and productivity• Manufacturing improvement• Increased regulatory compliance• Real-time visibility to approved changes• 100% regulatory compliance


PLM Selection Strategy

1. Identify 4 Vendors & Issue RFP

2. Sponsor Product Demo from 4 Vendors

3. Reduce Qualified Vendors to Two –

4. Sponsor Final 2 Vendor Deep-Dive Demos

5. Select Final Preferred Vendor based on:– F&B Experience– Meets Business Functional Requirements (Best Fit)– Compatible with Current & Future ERP System Plan– User Friendly – Value

(Five F’s: Fit - Future - Function - Feeling - Finance)


PLM Business Requirements

• Document Management – Data Mining• Ingredient Tracking and Tracing• Specification Management & Version Control• Certification Process Workflow & Doc Management• Synchronization with Marketing Calendar• Connectivity to Nutritional Database• Connectivity to statistical process control QA data• Integration with customer PLM or databases• Strong New Product Development &

Commercialization Workflow Management


PLM Solution Architecture

1. Global Corporate Architecture with PLM

2. Integrated PLM Vision

3. PLM Connectivity to Apps

4. PLM Client-to-ERP Architecture

5. Data Mapping

6. Added PLM Bells-and Whistles Features


PLM Global Architecture Vision

ERP System SUPPLY

PLANNINGDEMAND

PLANNING

Materials Resource Planning

INVENTORY MANAGEMENT

Customer Relationship Management

MES Architecture 11 MES Functions

Plant SCADA ArchitectureChaseburg Plant, etc.

Biwer Grower Management System (Dairy and Produce, etc.)

RESEARCH & DEVELOPMENT

QUALITY ASSURANCE

MARKETINGSALES

PLMDocument & Workflow Management

Advanced Planning & Scheduling

Demantra Trade Promotions Mngt

LIMS

Integration Middleware

Warehouse Management

System

Transportation

Statistical Process Control

Potential Future Software Systems

Existing Software Systems

MES Infrastructure with PLM

Crystal Reports Microsoft ReportsPerformance Metrics

Dashboard Reports – Active Strategy.com

S95 Integration Standards

S88 Integration Standards


PLM Connectivity to Apps

PLM Application is one of 11 MES Functions that resides between shop-floor SCADA systems and the corporate ERP system.


PLM Client-to-ERP Architecture


Data Mapping


PLM CAPABILITY CATEGORY Vendor A Vendor B

1. Food & Beverage Experience

Food & Beverage Experience √

Food & Beverage Install Base √

Dairy Experience √

1. ERP Install Experience

Infor ERP Install Experience √

1. PLM Product Capability

PLM Document Management Strength √ √

PLM Workflow Strength √

Genesis Nutritional Connectivity √ ESHA

Agentrics Retail Grocery PLM Connectivity √ (Extra)

Marketing Calendar (probably custom Build)

1. Computing Architecture

Client Server vs. ASP Hosted Not ASP √

Microsoft-based Environment √ √

Highly Scalable √ √

Works on SQL & Oracle Database Server √ √

Web server with IE Web Client √ √

N-Tier Application √ √

Product Functionality Comparison Example


Product Functionality Comparison

1. User Connectivity

MS Internet Explorer or Office Connector or IIS 8 √ √

Active X or Applets – few may be needed on client √ √

Email Mail Management/MS Email Directory √ √

1. PLM Application Programming

SOA Open Source Coding √

1. ERP/Application Integration Software

Microsoft BizTalk √ √

Messaging Infrastructure Open SOA √ √

1. Middleware

ERP to PLM App XLMPrebuilt

1. Business Reports Capability

Crystal Reports or Excel √ √

Microsoft Reporting √ √

1. Web Portal Communication

XML Standards

1. Hardware Requirements

Database Server Requirement √

Main PLM Application Server √ √

1. Project Costs

Software (Mid) √ (lower)

Hardware √

Services √


SharePoint 2010 Solution Strengths


PLM Implementation Strategy

How to Drive Business Value from Your PLM Implementation?

Measure Value Against Implementation Metrics:• Implement Against Phased Approach

• Begin Implementation with Conference Room Pilot• Implement Area of Greatest Business Value 1st:

- Content then Department

(Specifications and NPD Workflow)


PLM Pilot Test

Basic PLM IT Infrastructure

Content Approach:1.Product Specifications

2. R&D NPD Workflow

Department Approach:

1. Quality Assurance2. R&D

Expanded IT Architecture &

Content Deployment

PLM Pilot Test:Product Specifications Across Company


Detailed Implementation Path

PLAN[10-20 days]

SYSTEM DESIGN [20 days]

BUILD [20 days]

SETUP [20 days]

REPORTING [20 days]

TESTING & [20 days]VALIDATION

IMPLEMENT[20 days]

DEPLOYMENT[20 days]

SUPPORT & CLOSURE [15 days]

Phase 1: Implementation

SPECIFICATIONS: QRD


WORKFLOWS: QRD


CERTIIFCATIONS: QA


MARKETING CALENDARWORKFLOW


ALL OTHERS

Conference Room Pilot


Implementation Planning


Estimating Implementation Costs

CROPP

CROPP Internal Sponsor 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 2.25 $ 100.00

SME 1.00 1.00 0.50 0.00 0.00 0.00 0.00 0.00 0.00 2.50 $ 100.00

Business Analyst 0.50 0.50 0.40 $ 100.00

Total People 1.25 1.25 0.75 0.75 0.75 0.65 0.25 0.25 0.25 4.75

CROPP Days 5 5 5 10 10 5 5 5 10 60

Days/ Person 4.00 4.00 6.67 13.33 13.33 7.69 20.00 20.00 40.00 12.63

COSTS $ 4,000 $ 4,000 $ 4,000 $ 8,000 $ 8,000 $ 4,000 $ 4,000 $ 4,000 $ 8,000 $ 48,000

PLANNING SYSTEM DESIGN BUILD SETUP REPORTING TESTING & VALIDATION IMPLEMENT DEPLOY SUPPORT

CLOSURE GRAND TOTALS

TOTAL DAYS 20 20 20 20 20 20 20 20 20 180

TOTAL COSTS $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 144,000


Optimizing Implementation ROI

• Adhere to Change Management Plan• Require a well orchestrated Project Plan• Implement PLM functionality in a phased approach

with highest value functionalities first.• Implement high-quality training, with repeat follow-

up• Practice patience among employees during install


Extracting PLM Strategic Value

How to Drive Business Value from Your PLM Investment?

Measure Value Against Performance Metrics:• Aggregate Corporate

• Department by Department• Intra-Department Performance Metrics

(Cascading Scorecards based on KPIs or The Balanced Scorecard Metrics)


PLM Business Performance Metrics

• Increased Profitability Measured in EBITDA Growth• New Products Enter Marketplace Faster. Time Saved

Applied to Additional New Products to Market, resulting in measureable Sales Growth

• Fewer Customer Complaints• Higher Certification Rate based on 1st Application• Order-to-Cash Metric: Faster Delivery Time• Order-to-Cash Metric: Faster Inventory Turn• PLM Department Data can be used to measure and

track business performance


Tracking Business Performance


Extracting R&D and QA Strategic Value

How to Drive Business Value from Your PLM Investment?

Measure Value Against Performance Metrics:• More New Products in Marketplace is Less Time

• Increased New Product Success Rate (%)• Less Time Tracking Product Specifications

• Fewer Quality Complaints• Higher Sales Person Satisfaction with R&D/QA


Managing Change Management

• The full ROI from a PLM implementation is realized in proportion to the degree of change acceptance.

• For example. An electronic document is a living document that should not be manually carried to another person for an approval signature.

• For example, a New Product or Quality Process Workflow must be adhered to in a collaborative way.

• For example, and R&D team member may need to document work at end of day electronically.


Potential Road Hazards

• The full ROI from a PLM implementation is realized in proportion to the degree of change acceptance.

• For example. An electronic document is a living document that should not be manually carried to another person for an approval signature.

• For example, a New Product or Quality Process Workflow must be adhered to in a collaborative way.

• For example, an R&D team member may need to electronically document work at end of each day.


Summary

• Document Management• Data Management• Formula Management• Specification Management (Workflow & Approval)• Certification Management (Workflow)• New Product Development Workflow

Management• Internal & External User Data Access• Marketing Calendar Workflow Management• Interface w/ other biz apps like Genesis R&D,

Infinity QS, Private Label and Retail Customers• Data Mining - - - - - - to name a few!


Summary

1. PLM Business Need2. PLM Functional Requirements3. Solution Architecture (Strategic IT Fit)

4. Implementation 80/20 Value Strategy5. Extracting Strategic Business Value6. Extracting R&D and QA Business Value7. Managing Change Management


Specification Data Modeling

Film Supplier

Packaging Engineer

Film Info available to Tech Services, R&D,

QA, Procurement, etc.

Local DB

Marketing, R&D, & Labeling sign off on graphics

AS-IS PACKAGE FILM SPECIFICATION PROCESS<includes bags, boxes, etc.>

Request for Info (RFI) from Marketing, Operations, Customers, Labeling, etc.

- Film “Material” Specs

Film Graphic Requirements

TO-BE

Marketing and Label Department

Signs Off on Structural Info

To-Be

Centralized DB

MRTA Ticket Created

R&D and Procurement

MM Assigns SAP#


TO-BE PACKAGE FILM SPECIFICATION WORKFLOW PROCESSU

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Film Material Specification Information

RFI sent, then Material Specification Information & Film Graphics are collated into Preliminary Specification

Marketing Provides Film Graphics Requirements

Research & Development Reviews & Signs Off on Film

Graphics

Purchasing Reviews & Signs Off on Film Graphics

Preliminary Specification Created

Final Specification<Hosted in SAP>

Packaging Engineer (Technical Services)

MRTA Ticket Request

MM Issues SAP #

Specification Data Modeling

Executive PLM Consulting Overview

Technology

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