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International Conference on Product Lifecycle Management

Holistic PLM-model deduction of a holistic PLM-model from the general dimensions of an integrated management Oliver Budde*
Research Institute for Rationalization and Operations Management, RWTH Aachen University, Pontdriesch 14/16, D-52062 Aachen, Germany E-mail: Oliver.Budde@gmail.com *Corresponding author

Gnther Schuh and Ju-Young Uam

Laboratory for Machine Tools and Production Engineering WZL, RWTH Aachen University, Chair of Production Engineering, Steinbachstrasse 19, D-52074 Aachen, Germany E-mail: g.schuh@wzl.rwth-aachen.de1 E-mail: j.uam@wzl.rwth-aachen.de2
Abstract: Product lifecycle management (PLM) is a widely discussed topic concerning the increase of efficiency of product development in terms of time to market as well as customizing products to the different needs of customers worldwide adequately. Historically PLM focuses the early phases of the products lifecycle, namely the product development phase. Therein the roots of PLM are based in supporting the information logistics of product data: Consistent data sets should be available to all stakeholders in the different departments at all times. Due to the increasing product complexity PLM has to be extended in terms of the temporal dimension (not limited to product development phase) and systemic dimension (not limited to the information logistic aspect). In this paper the authors derive a holistic framework for product lifecycle management by analysing existing integrated management approaches. The framework consists of four dimensions: PLM strategy, PLM process, product structure and PLM IT-architecture. The sustainability and benefits of the framework is demonstrated by applying the framework to the communication service provider (CSP) industry. Keywords: holistic PLM-model; product complexity; integrated management.

Introduction/goal

Today industrial as well as services companies are challenged by a highly dynamic environment, which require them to develop and manage products at a high level of flexibility and quality at minimized costs (Nyhuis et al., 2009; Reinhard and Rashidy, 2008). As numerous authors have shown, the intricacy of product portfolios has been
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increased in the last decade. Product lifecycle management (PLM) has become a rather complex topic (Lindemann et al., 2009), which propels the idea of a holistic framework for managing products from the early product idea phase to the market exit of the product on a systemic level. Despite the academic and industrial need, a generally accepted and sound definition of PLM has not been provided so far, covering the various fields of aspects [Eigner and Stelzer, (2009), p.5] (qv. Table 1).
Table 1 Authors Saaksvuori and Immonen (2008) Summary of definitions for PLM Description Addressed PLM aspect

PLM is a systematic, controlled concept for PLM strategy managing and developing products and product related information. PLM offers management and control of the PLM process product (product development, productizing and product PLM IT-architecture marketing) process and the order-delivery process, the control of product related data throughout the product life cycle, from the initial idea to the scrap yard. 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 extend enterprise from concept to end of life integrating people, processes, business systems, and information. Integrated business approach PLM IT-architecture

Miller (2003)

Schuh et al. The product structure plays a major role in product lifecycle management. It defines the structured (2006) relationship among product items and integrates all product related information. To effectively support lifecycle management implementation, initiatives to define product structuring reference models must consider that the process that best fits a specific project may vary according to the development context Fathi et al. (2007) (..) Available PLM methods and tools can be clustered in three groups: Information management (..) Process management (e.g., methods for modeling, structuring, planning, operating and controlling formal or semi-formal processes like engineering release processes, review processes, change process or notification processes Application integration Feldhusen and Gebhardt (2008) PLM is a knowledge based corporate strategy for all processes and their methods in respect to product development from the early product idea to the recycling. Feldhusen and Gebhardt (2008, p.34): A successful PLM strategy includes the building blocks products, processes and organisation.

Product structure PLM process

PLM process PLM IT-architecture Application integration Information mgnt.

Integrated management approach Product structure PLM process PLM IT-architecture

Taking the five definitions for PLM from the above-named authors, it can be concluded that a mere consideration of the IT-aspect (in terms of improving the information logistics) has to be extended with the consideration of the PLM process, PLM strategy, linked with the corporate strategy, and the product structuring aspect. This argumentation

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is in conjunction with Fathi et al. (2007, p.246), who also identifies the main weakness of existing PLM solutions being the poor support of product lifecycle activities outside the product development phase. Due to the variety of definitions for PLM and therefore different interpretations, this paper will harmonize the PLM perception and provide a holistic framework for PLM, which will be derived from existing concepts of an integrated management. Taking a generalization of these integrated management concepts as a guideline, the general areas of PLM will be derived and being detailed by a descriptive model and finally applied to the communication service provider (CSP) industry. The structure of the paper is shown in Figure 1.
Figure 1 Structure of the paper
PLM Process Product Structure

(Chapter 4)

Specialization
Dimensions of an integrated PLM
(Chapter 3)
rn vio m

En

PLM-Process Product Structuring

Deduction
Dimensions of an integrated Management
(Chapter 2)

Staff Strategy

Systems Structure

Integrated management as an analysis raster

PLM is part of a companys corporate management. Managing is a systematic, purposive, well planned and controlled activity to run a social system. Thus, management has the objective to design, guide and develop those social systems (Bleicher and Pmpin, 1996). According to Abramovici and Schulte (2004), PLM is a strategic management approach. Strategic management has a long tradition. In the 1980s for example the market-based view emerged and suggests companies to establish market barriers to keep competitors away from home markets. Every management approach should follow a certain pattern, because they all have the same objective: to design, guide and develop social systems. To reveal the pattern the authors have conducted a literature review of todays common integrated management approaches and analyzed the different management approaches with respect to similarities and differences. The next paragraph will show the results of this analysis.

-A P rc LM hi te IT ct ur e

en

PLM- Strategy

Ar PL ch M ite I T ct ur e

Industry specific PLM

PLM-Strategy

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2.1 Literature review

Having analyzed the current literature of integrated management six major approaches can be identified, that have contributed in the evaluation of an integrated management (qv. Table 2). For the purpose of this paper, each approach and its dimension was examined in respect to similarities and differences (intersections). As a result the approaches can be harmonized into following five dimensions: strategy, structure, systems, staff and culture. Each of these dimensions should be considered from a corporate perspective in order to gain competitive advantages.
Table 2 Results from the literature review Peters and Waterman (1982) Strategy/systems /shared values Structure (organisational structure) --Staff/skills Meffert and Bruhn (2009) Controlling and monitoring Organisational structure and process organization Information-systems --Regg-Strm (2005) Strategy definition of product portfolio Structure (organisational structure and process organization) ----Backhaus (2003) Structure

Strategy Structure

Systems Staff Culture

Strategy Structure Systems Staff Culture

Style (management Company-culture as Company culture, culture, leadership) well as individual one ethical value Bleicher (2004) Leavitt (1973) Batenburg et al. (2006) Grouping of modules on a -Strategy and strategic layer in the dimension policy/monitoring structure behaviour, activities and control Dimension structure with Structure task Organisation and process modules on normative, strategic and operational layer Modules for management Technology Information technology systems and disposition systems In the broader sense behaviour People People Module for company culture --Culture

Management systems Staff management Culture

Since Staff and Culture form a close union in many publications, the authors integrate Culture into Staff to focus the analysis raster on more relevant PLM aspects. The remaining four dimensions, strategy, structure, systems and staff, are regarded as being a general guideline for an integrated management. Therefore we assume in the following course of the paper that these general dimensions can serve as an analysis raster, which can be applied to identify the general framework elements for an integrated PLM.

2.2 Operationalization of the analysis raster

In order to develop the holistic PLM framework from the dimensions of an integrated management, each dimension will be described. The meaning of each dimension will serve as an anchor to finally derive the elements of the holistic framework.

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O. Budde et al. Strategy: Currently there are two distinct meanings of term strategy in the scientific community. On the one hand strategy has an institutional meaning. Strategy defines the organisational structure, which includes the definition of job positions (Steinmann et al., 2005). On the other hand strategy has a functional meaning. Against this background a strategy defines all tasks which are related to plan, organize, execute and control value chain processes. For this paper the dimension strategy refers to the functional meaning and the authors extend the meaning according to Schmelzer and Sesselmann (2008) by the tasks of formulating, controlling and monitoring strategic enterprise goals. Structure: According to Regg-Strm structure in a broader sense is needed on the one side for defining an optimal labour division for gaining efficiency and productivity benefits. On the other side structures are required for ensuring the optimal coordination of processes that are based on labour division and the integration of each process outcome as a whole [Regg-Strm, (2005), p.49]. This general description of structure can be further summarized to the definition of the process organization and the definition of the organization structure. Systems: The dimension systems represents the information technology (IT) within a company. Since the computer revolution in den 80s the IT is an essential element that has increased the efficiency and effectiveness of process execution. According to Mertens (2009), software as a part of the IT-infrastructure can be further concretized in planning and controlling software and operation support systems. Staff: This dimension covers two topics: the company culture and the people management. Having argued that culture is a long term objective, this dimension is focusing on the people management, which has near- or medium-term impact.

In Figure 2, the most important characteristics of the four dimensions have been listed. Based on this description the derivation of the elements for an integrated PLM will be shown in the next chapter.
Figure 2 Characterization of the building blocks for an integrated management
Strategy
Controlling the primary

Structure
Specification of the

value chain activities

Definition of measures

operational organisation
Specification of the

and strategic goals

Strength and Weakness

organisational structure

Assessment (internal)
Opportunities and Risk

Assessment (external) Systems

Planning and Controlling

Staff
Organisational Culture Personal Management

Systems
Operational support

Systems

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Application of the analysis raster

In this chapter the analysis raster is applied on the PLM domain in order to derive the general elements of PLM. Therefore the characteristics of each dimension of an integrated management have been interpreted in the context of PLM (qv. Figure 3).
Figure 3 Deduction of the building blocks of a holistic PLM

Building Blocks of an integrated Management Strategy

Controlling the primary value chain activities Definition of measures and strategic goals Strength and Weakness Assessment (internally) Opportunities and Risk Assessment (externally)

Building Blocks of an integrated PLM PLM Strategy PLM ITArchitecture Product Structure PLMProcess
Strategic controlling of PLM-Process Lifecycle oriented Product portfolio Management Customer Need Management

Structure

Specification of the operational organisation Specification of the organisational structure

Specification of the PLM operational organisation Specification of the functional integration Personnel Management

Staff

Organisational Culture Personnel Management

Specification of the Product Architecture Specification of the Product Data Model

Systems

Planning and Controlling Systems

Decision Support Systems Process Support Systems

Operational support Systems Integration Layer

3.1 Strategy
A well-founded strategy is a significant success factor for a company [Fueglistaller et al., (2008), p.277]. The dimension strategy focuses on the development of an organization as a whole. Therefore everything related to the creation and safeguarding of the competitiveness of a company can be regarded as being the part of a strategy. Based on this understanding, Goos (2006, p.10) has summarized the relevant elements of a strategy (qv. Figure 4). In the context of PLM, a strategy is needed for setting the conditions for the operational PLM process execution. The major elements of a PLM-strategy are according to Feldhusen and Gebhardt (2008) the product and its specification. The product has to satisfy costumer needs. Hence, the strategy has to ensure the satisfaction of customer needs and the translation of those needs into products. Against this background a customer needs management and a lifecycle oriented product portfolio management should be elements of a PLM strategy.

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Figure 4
PLMStrategy

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Design areas of PLM strategy
Customer Need Management Lifecycle oriented Product Portfolio Management Strategic Process Management
Process-Organisation Process-Optimization

Process-Controlling

The main objective of the customer needs management is to identify, document, communicate, trance and administrate customer needs (Versteegen and Heeler, 2004). The customer needs management answers the question which customer needs the company is able to satisfy and which customer needs will when be translated into real products. After specific customer needs are defined and prioritized the lifecycle orientated product portfolio management has to derive the actual and future product portfolio as well as the product exit from the markets. The product portfolio then determines the project portfolio of all development projects to control, organize and optimize the processes within the projects. Against this background a strategic process management is also part of a PLM strategy.

3.2 Structure
Structure is another dimension of the holistic PLM framework. Generally structure is associated with processes. Because PLM focuses the product, the product structure becomes also part of this dimension.

3.2.1 Focus on the process characteristics

From the perspective of the strategic management the dimension structure is focusing on the definition and optimization of the whole company. In the context of PLM, the scope has been limited to a subset of the whole organizational structure, namely those units which are directly involved in the process of managing the product lifecycle from an operational point of view1. In order to act according to the given PLM-strategy, a PLM process has to be defined that leverages the success potentials from the PLM strategy on an operational level. Therefore two sub dimensions have to be concretized: 1 2 the PLM process organization from an organizational structure perspective, the definition of the functional integration of the involved departments including the definition of their roles and responsibilities.

PLM process organization

The PLM process covers all phases of the product lifecycle, consequently starting with the product idea and ending with the product retirement. The most common process organization types are the stage gate approach by Cooper (1994) and the chain link model by Kline and Rosenberg (1986). By detailing the process structure a sequential or a more parallel process flow can be induced. The basic conditions for making this design decision are to be made in the PLM strategy.

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According to Specht (2005, p.25) and Nysveen and Pedersen (2007) the PLM process characteristics, at least in terms of the product idea phase, differ for the development of services, which motivates a specialization of the PLM process for tangible and intangible goods.
Figure 5
PLMProcess

Scope of the PLM-process

Product Idea generation Launch & Marketing Managment Retirement

Realization

Definition of the functional integration

Besides the definition of activities and the process structure, the functional integration of the involved departments within each phase is critical. According to Corsten (2006, p.165), three different design patterns for achieving a functional integration can be distinguished: parallel, consecutive and intermittent. Depending on the industry sector the departments involved in PLM differ. For instance, in opposite to the manufacturing industry, which strongly involves the production department in the PLM process, the CSP industry focuses on the finance and marketing department as well as the R&D department (Golovatchev et al., 2010). Apart from the functional integration of internal departments within the process, the integration of external parties is necessary, since value nets play an increasing role nowadays. The integration of external parties has to be established in terms of a cooperation management, which is strategically defined and operationally bound to the PLM process definition.
Figure 6
PLMProcess

Definition of the integration pattern

Integrationpattern Marketing Production R&D

Product Idea generation

Realization

Launch & Marketing Managment

Retirement

3.2.2 Focus on the product structure characteristics

Having explained that the dimension structure refers mainly to the organizational structure in terms of the strategic management and has its representation in our model in the dimension PLM process, the structural aspect plays another important role regarding the product structure. According to Schuh et al. (2006) and Feldhusen and Gebhardt (2008, p.32) the definition and the management of the product structure are essentials task of PLM. Svensson and Malmqvist (2002) identify the need for product structure management strategies that take into account the related processes as a whole. Therefore the authors include the dimension product structure to be another element of the PLM framework. According to Feldhusen and Gebhardt (2008, p.39) and Ulrich (1995) the product structure is part of the product architecture, which consists of a function structure and the

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product structure (e.g., physical product structure for tangible goods). In order to ensure information transparency about the product structure a logical product data model is needed. Hence, a product data information framework is an element of the PLM framework. In the next paragraph the three design areas of product structure are detailed more precisely.

Product specification and function structure

Description of the product from a functional perspective taking into account the specific requirements from the branch of industry, e.g., in the service industry the functional description of the product focuses on the specification from a market perspective [Mrschel, (2005), p.30]. Description of the interrelation between the function structure with the construction and working structure [Pahl et al., (2007), p.31]. For the service industry this includes the specification of a process model (Mrschel, 2005).

Especially for the manufacturing industry there exists a distinct differentiation between the product structure and the function structure [qf. Svensson and Malmqvist, (2002), p.53]. For the goal to have a generalized model being adoptable for specific industries, we integrate the product specification with the function structure in order to emphasize the differentiation between an abstract product concept and its physical representation.

Product structure from a technical perspective

Definition of the construction and working structure [Pahl et al., (2007), p.31]. The construction structure includes the definition of parts structure The specification of the interfaces among interacting physical components [Ulrich, (1995), p.420].

Product data information framework

Information model scheme, that integrates all relevant information of a product for all stakeholder in the PLM (Grabowski et al., 1993). Facilitating the generation of different views on the product like design structure, purchasing structure, manufacturing structure, order management structure, spare parts structure, service structure [Svensson and Malmqvist, (2002), p.53].
Product structure
Functional Structure Product Structure Product Data Information Framework (PDIF)

Figure 7

Product Structure

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3.3 Systems
In order to ensure a high degree of process automatisation an adequate IT-support is needed. Mertens (2009) distinguishes two types of business applications, the planning and controlling systems and the operational support systems. This classification is compatible with Bleicher (2004) who differentiates between management systems and operational systems. In the context of PLM such an apportionment of the business application landscape can also be applied to identify relevant IT functions from a business perspective. But beside this functional point of view, a more technical perspective also needs to be considered for PLM: the integration layer. By designing an appropriate integration architecture, the data integration between different data sources can be ensured as well as the integration between different applications either running within the company or between partners. Therefore we define three design areas for the PLM IT-architecture: decision support systems (DSSs), process support systems and the integration layer.

Decision support system

The main purpose of a DSS is to gather and consolidate data from operative systems in order to provide aggregated information on the product lifecycle to the senior management. This kind of IT-support can be referred to as a management cockpit that provides essential information for controlling and optimizing the current innovation portfolio as well as the product portfolio. Aspects regarding the planning of long-term resource capacities are handled by the strategic resource management component.

Process support system

On the operational level, the PLM process execution is supported by the process support system, consisting essentially of five components. The workflow management systems (WFMS) enables a higher level of process automatisation. Especially in the context of distributing and releasing unstructured content like product specifications in cross-functional teams, the WFMS plays an essential role through a strong link to the product data management (PDM) system. The product modelling system and the PDM are closely coupled. The former defines the product structure, providing an overview on the types of modules a product is composed of. Purposely the product modelling systems has been only generally defined, because the requirements on the product modelling system differ greatly for specific branch of industry2. In the manufacturing industry CAD/CAM tools can be subsumed under this software support category. In a database context, this functionality is similar to a scheme definition. The PDM system stores all product relevant data according to this definition, and provides different views for each stakeholder, be it from a marketing and engineering department. The multi-project management system and collaboration tools are instruments for the management of the product in different phases in a collaborative environment.

Integration layer
A PLM IT-architecture is supposed to hold the promise to seamlessly integrate and present all information produced throughout all phases of a products lifecycle to

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everyone in an organization including external business partners. For ensuring this functionality, an EAI-approach (e.g., based on SOA) has to be implemented.
Figure 8 Components of the PLM IT-Architecture

PLM ITArchitecture

DSS
Multi-Project Management Systen CAx Collaboration Tools Workflow-Management System Product Data Management System

ERP

IntegrationLayer CRM (SOA)

In order to ensure end-to-end interoperability between modules, the implemented technology architecture components have to be consistent, or at least interoperable to one another. The challenge is not the selection of single solutions which might work well in a silo context, but in the holistic implementation of an integrated modular enterprise architecture, which allows flexibility through its modularity and an increase of process performance on grounds of its integrated nature. Hence, the technology architecture roadmap has to be in sync with the product roadmap, and vice versa.

3.4 Staff
Organisational culture and the personnel management are essential dimensions for an integrated management. In the context of PLM the personnel management and the organisational culture has not been in the focus so far. Since the organisational culture is difficult to manage on an operational level and often subject of long term change management projects, we consider this aspect as being less important from a PLM perspective. Therefore this aspect has been neglected. In regards to the personnel management, the motivation management and the competence management are essential design areas for PLM. According to Schmelzer

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and Sesselmann (2008, p.90) process competence is essential for implementing processes in an organisation and for ensuring their acceptance.

3.5 General PLM building blocks

The deduction of a holistic PLM from the general dimensions of an integrated management has been illustrated in the following figure. The interrelation of the dimensions among each other and with the environment is not in the focus of this paper.
Figure 9
PLMStrategy

General building blocks of a holistic PLM

Customer Need Management Lifecycle oriented Product Portfolio Management Strategic Process Management
Process-Organisation Process-Optimization

PLM ITArchitecture

Process-Controlling

Determines

DSS
Multi-Project Management Systen

Integration Pattern

PLMProcess

Marketing

Uses

Production Generation R&D

Product Idea

Realization

Launch & Marketing Management

Retirement

CAx Collaboration Tools

Shapes

Workflow-Management System Product Data Management System

Product Structure

Functional Structure Product Structure Product Data Information Framework (PDIF)

ERP

IntegrationLayer CRM (SOA)

Validation

In order to validate the framework in terms of consistency and practicability, the concept was applied on the problem domains of CSPs. According to our assumptions from the beginning, the general dimensions have to be specialized for a given industrial context. Taking the general dimensions and the characteristics of the industry into account, a holistic PLM approach for CSPs has been derived. In the following section the specific adoptions will be outlined on a high level. A detailed derivation of this model goes beyond the scope of this paper and is therefore subject of another publication. Causally related with the need for a specialization of the PLM for the CSP are five characteristics: Network based product service systems (PSS): the product of a CSP can be classified as a PSS that requires a physical communication network. Synchronizing the specific product elements and their lifecycles (in terms of technical compatibility and marketing strategy of the involved partners) for provisioning an integrated product from the end customer perspective, results into a complex management task (Golovatchev et al., 2010).

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O. Budde et al. Network effects: the adaption and diffusion of innovations in this industry depend on the penetration of the product, so that the value of the product increases as more people use it. The network effect has to be taken into consideration for a PLM (Hensel and Wirsam, 2008). Immateriality: a main characteristics network based PSS is the immateriality aspect for specific product components like digital content (e.g., movies as an element of a triple play product). Service-orientation: two general constitutive characteristics of service are also valid for network based products: the integration of the external factor as well as the simultaneous production and consumption (Corsten and Gssinger, 2007). Value net: the value creation process is based on a value net as one out of three generic value configuration models according to Stabell and Fjeldstad (1998).

Based on these characteristics specific requirements for the PLM can be deducted, which have resulted into the specialization of the PLM framework for CSP (qv. Figure 10).
Figure 10 Specialization of the PLM for the communication service industry
Industry Characteristics
Network based Product Service Systems

Consequences for the PLM

High amount of incremental innovations (e.g. tarif changes, configuration of service processes)

Specialization of the PLM for CSP

PLM Process Variants for managing efficiently incremental and disruptive innovations Customer Need Management with distinct interfaces in the PLM

PLM Strategy

Network Effects

Strong involvement of marketing department in the PLM for the reason that the Telco Product is homogenous by nature and the importance of adoption and diffusion processes

Immateriality

Constant customer interaction during the whole Product Lifecycle (e.g. the set-up phase or customer relocation)

Flexible stage gate approach, which supports a fuzzy gate concept and a bounding box approach Strong integration of the marketing department during the whole PLM process and the decision making process Consideration of the retirement process for clearing the product portfolio Modularisation of the service processes for the fulfilment, assurance and billing of products Standardisation of product modules on a functional and physical level across the value net for ensuring a seamless service delivery Standardisation of product data for increasing the automatisation degree in the service delivery Support of collaborative technologies for interacting with partners in the value net Support of WFMS for increasing the process automatisation within the organisation as well as in the value net

PLM Process

Iterative product development for specific parts like software and service processes
Service Orientation

Product Structure

Management of Product and PortfolioComplexity due to the high multiplicity of products

Value Net

Management of Product and Portfolio Complexity due to the ever shortening technology lifecycles

PLM IT-Architecture

Coordination effort between the technology, application and content partners

Conclusions

In this paper the building blocks of a holistic PLM have been presented. Further concretization of the interrelations between our PLM approach and other management disciplines like the innovation and marketing management needs to be elaborated. In

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order to assess the quality of the approach an empirical study in the CSP-industry has been carried out to evaluate success factors in the PLM dimensions and therefore prove the accuracy and consistency of the overall model. The first results from the study have confirmed that a holistic approach is beneficially for the overall effectiveness and efficiency of the company.

Acknowledgements
This work was in part supported by the German Federal Ministry of Economics and Technology [EEnergy SmartWheels (Grant 01ME09020)]. The authors would like to thank the German Research Foundation DFG for the support of the depicted research within the cluster of excellence Integrative production technology for high-wage countries.

References
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Notes
1 2 Since the planning, controlling and monitoring of the product lifecycle are located in the dimensions of the PLM-strategy. For example in the manufacturing industry CAx-tools are widely common for designing tangible goods, whereas in the service industry CAx-tools are replaced with process design tools in order to capture the requirements of services.