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Strategy is a plan with the goals and objectives that we are seeking to accomplish.
IMPACT OF STRATEGY
Individual PLM projects can and should be justified on the basis of their own Return
on Asset (ROAs) or Return on Investment (ROIs).
Long Term returns are obtained by implementing Overall Strategy for PLM.
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PLM NOTES 7TH SEM MECHANICAL PREPARED BY KRISHNA PRASAD R ASST. PROFESSOR MIT-K 2013
INFRASTRUCTURE ASSESSMENT
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PLM NOTES 7TH SEM MECHANICAL PREPARED BY KRISHNA PRASAD R ASST. PROFESSOR MIT-K 2013
UNIT 8
SYLLABUS
STRATEGY
IMPACT OF STRATEGY
INFRASTRUCTURE ASSESSMENT
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STRATEGY
SINCE PLM is an enterprise wide issue, strategies at varying levels and over varying
time frames need to be developed and coordinated.
WHAT IS A STRATEGY ?
Strategy is a plan with the goals and objectives that we are seeking to accomplish.
PLM is a part of the strategy to reach some goal or objective. PLM is an enabler of the
goals of the organization, but is not an end goal in itself.
THE ELEMENTS THAT ARE THE PART OF THE STRATEGIC PLAN FOR PLM :
3. A plan of action for bridging the gap between the reality of today and the vision of
tomorrow
o LEAN THINKING,
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o VARITEY
o QUANTITY
o FUNCTIONALITY
o QUALITY
There is one very common vision of tomorrow that drives many PLM initiatives.
This vision is of One Company. This phrase with the specific companys name
following One (Eg: One General Motors) is a commonly used rationalization for
embracing PLM.
There are two major benefits if the organization gets into One Company
concept.
o First. The costs will be reduced by saving the time, energy and material that
is being spent for duplication and coordination efforts.
PLM is compatible with this One Company vision. It also means to implement it
by building their functions.
PLM can also implement common processes and practices. PLM technology helps
to structure this One Company view.
PLM is an attempt to use the technology to reduce the costs and inefficiencies of
coordination efforts among areas of specialization.
If we are unrealistic about our current situation then we will be starting towards
our vision of tomorrow from a faulty position. The normal tendency is to
overestimate our situation and capabilities of the resources and requirements that
we will need to reach our vision of tomorrow will be grossly underestimated.
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We perform the realistic assessment of where the organization is. But this is only
one of the two pieces. The other piece is an assessment of where the environment
is.
What we do not know is that if we do not develop and maintain the information
about our product we will not be able to make informed decisions when the
environment changes.
The plan for bridging the gap has to include three aspects :
People
Technology
All the three of these elements have to come together in a coordinated plan for an
organization to get from where it is today to where its vision if for tomorrow.
Ex: If right software is acquired but people are not trained to use that software then
people will not use the software effectively.
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PLM NOTES 7TH SEM MECHANICAL PREPARED BY KRISHNA PRASAD R ASST. PROFESSOR MIT-K 2013
If leadership, employee perception and project scope and urgency were all
negative, the project then the project needs to be killed or if they are positive
it is called a BIG BANG approach.
So the final conclusion is that if leadership were positive then that could be the
driving force for even an incremental approach to the project implementation. But if
the leadership is negative then it required somebody in the organization to step up in
order to be enable to champion or negotiate with the rest of the employees to drive at
least parts of the project to a successful completion.
IMPACT OF STRATEGY
Individual PLM projects can and should be justified on the basis of their own Return
on Asset (ROAs) or Return on Investment (ROIs).
There are major differences in the sizes of the ROA and ROI returns when they are
coordinated within an overall strategy.
Individual PLM projects can be incompatible and the ensuring selection of different
technologies will require expending time and additional resources at some point in
time to
Standardize software
Retain people
Any time there is reanything in the sentence it means resources are wasted.
Long Term returns are obtained by implementing Overall Strategy for PLM.
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Lean thinking requires that the leadership make the best use of its resources. It
does this by planning and executing a strategy that drives it in a clear direction to
its vision of the future.
In the past the companies have engaged in cross functional systems, so we have to
study one of these systems to learn from their implementation. One such system is
ERP (ENTERPRISE RESOURCE PLANNING).
2. PROJECT LEADERS ARE VETERANS (LONG EXPERIENCED) AND TEAM MEMBERS ARE
DECISION MAKERS.
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But for PLM initiatives real decisions about the cross functional allocation of
resources and responsibilities have to be made. There can be a substantial
waste of time, energy and material when looked at from the perspective of
the entire organization.
The issues of cross functional allocation have to be resolved at the top of the
organization where the functional areas meet, because resource allocation
takes place at this level and not lower down within the organization.
The expert advice on all the corporate initiative is that top management
needs to be engaged and not involved. Internal controls, human resources,
customer resource management all of these initiatives have as one of their
main principles that the engagement of top management is a necessity.
The two arguments that could be used to compare the position of PLM
versus all these other initiatives are :
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The project committees, the committees themselves are stocked with junior
members of the department, with people who have time on their hands, or
with individuals who are dispensable with their specific department or
function.
In PLM it is critical that the members of the team have both deep knowledge
and understanding of their department and functions and the ability to
make decisions for their organization without have to go back and seek
permission from other managers.
The veteran manager also will not be as susceptible to falling into trap of
agreeing to what appears to be a small change that has major ramifications
for their area.
If team members are not decision makers, valuable time and effort will be
lost because team members will have to go back to their respective
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For PLM to be successful within the organization, the team members must
work out the right allocation of resources, make the decisions within the
committee room, and then be able to execute on those decisions and
implement them.
It simply recognizes the that in large enterprise projects such as ERP and
also PLM, experience and expertise from having seen and addressed
planning issues and implementation problems are critical in an initiative
that performs well.
Since this is not a one-time event, but a change in the way an organization
operates, the transfer of knowledge to the people within the organization is
Filling the gaps through the third parties will also improve the efficiency of
the initiative because mistakes that might be made in developing and
implementing a PLM project may have been experienced and solved by these
third parties.
Since the software and other technology that enables PLM is so specialized
the third party resources for PLM might very well be the solution provider
who provides the software.
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Bringing in a third party to implement PLM and then allowing him or her to
leave without transferring his or her knowledge regarding PLM is a sure recipe
for degenerating back to the old way of doing things.
The reality is that PLM is a different way not only of viewing the organizations
intellectual property in the form of product information, but also of managing
that information. Therefore the processes and practices of the organization
need to be reexamined and modified in light of this cross functional capability.
It is not only the issue of resources but that of time which cannot be
recaptured. In the productive use of time and resources, we need to look at
getting it pretty good and moving on.
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The PLM fall into the category of very complex undertakings where, if we
attempt to try for an optimal solution we will never get there. We can get to
80% efficiency with human efforts. So we need to get the project over a hurdle
rate of efficiency, but need not look to optimize it.
In PLM we need to take a larger and a longer view of the situation and look to
attack as many areas as possible that can improve the overall organization
rather than try to optimize only one aspect of it.
From the IT value Map we can see that the drivers of revenue growth are
increasing functionality, quality and quantity of product sold. The Parts reuse and
start parts and smart parts all allow areas to do more with the same amount
resources.
In the cost side, better visibility and control of product information allows the
reduction of material time. PLM applications that track and control math based
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It is far better to try and develop this larger view of product information sooner
rather than latter. We can develop this view even if we do it informally by
establishing ties to areas that are adjacent to ours, such as engineering to
manufacturing or manufacturing to service.
These are areas that develop information that we use or areas that we develop
information for. We may not have the authority to establish cross-functional
teams, we can develop informal communications and consultations with these
other areas.
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We can usually try to optimize the use of resources in an area even if that
optimization causes a suboptimal use of resources across the entire organization.
Making these resource decisions improves our own area and the derivative
negative impacts to us from other affected areas are minimal or negligible.
Managers of areas facing this type of decisions should resist this opportunity,
because these easy decisions go against the spirit and practice of PLM. Instead
they should look for resource usage that is wasteful and only affects their area.
By showing the cost of cost of recreating this lost information in many times the
cost of the resource in the area creating it, there may be other alternatives to
eliminating the resource creating it.
At the operational level : there may be BUDGET TRADING between the creating and
using departments. With visibility at higher levels, there may be budget relief
granted to the creating department. At some level of the organization, there is
responsibility for the aggregated budget.
Managers need to find that level and demonstrate that PLM information should
not be sacrificed at the departmental level at a cost to the entire organization.
What all mangers think they want to strive for is a smooth running organization
where each day mirrors the day before.
Even if that was possible in the past, the global environment of today means that
at some time change will be visited on the organization, whether it like it or not. It
is far better to be proactive with change.
Organizations that embrace change are more likely to see and adapt to change as
it occurs and in fact and view change as a competitive advantage.
PLM with its new approach to products will allow managers to begin stretching the
change muscle of their areas and departments.
Getting their people used to and better still, anxious for change will allow them to
adapt to larger change that comes about when PLM becomes a corporate initiative.
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People who have exercised their change muscle will be better prepared to embrace
the digital way of doing things and replace the paper they have always used.
The issues with organizational dysfunction usually arise when individual areas
think they are benefiting the organization by optimizing their operation.
Making decisions about how people deal with product information within a certain
functional area, what processes and practices are employed and what technologies
are acquired to support these activities without taking into consideration the
entire organization is counterproductive.
Everyone in the company are responsible for using that vision of one company to
guide their decisions. Everyone is capable of internalizing the vision of One
Company as they ask themselves what is the best way for my organization to get
the most value out of product information.
PLM has the most impact for the organization if it is a corporate initiative defined
by a comprehensive strategic plan that supports the goals and objectives of the
entire organization.
PLM initiatives are not feasible without PLM software applications. These
PLM software applications require a computer / communications
infrastructure on which to run. The assessment of the computer /
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1. PEOPLE ASSESMENT
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