Is plm more important than erp (question mark)

Is PLM more important than ERP?

Ingmar BoonStephan MonsieurDecember 2011

2

Agenda

What is PLM ?

Typical processes supported by PLM

One Practical example of PLM

PLM + ERP = VALUE

Final thoughts …

Q&A

3

What is PLM?

4

Understanding PLM

Introduced at the turn of the century, PLM still lacks a common, definitive definition

PTC defines PLM as:A solution that enables manufacturers to

optimize the management and evolution of all aspects of the product’s definition

(bill-of-materials such as eBOM, mBOM, sBOM, bill-of-processes such as Process Plans, Bill of Resources) throughout the product’s entire

lifecycle – from conception to retirement – in a single environment

PLM typically focuses for 90% on the phases before‘Release To Manufacturing’

5

PLM versus ERP

Physical Product

Physical ProductENGINEERING

MANUFACTURING

SUPPLIERS

PROCUREMENT

MARKETING

SALES

SERVICE

CUSTOMERSDigital Product

Digital Product Digital

Product

Digital Product

Release toManufacturing

6

What are their focus points?

ERP (Enterprise Resource Planning)

PLM (Product Lifecycle Management)

Innovation -Managed Creativity

BOM to procured part/assembly

level

Execution of repeated

transactions

Manufacturing, Sourcing and Distribution processes Inventory /

order lifecycles

Complete BOM Management

(spanning as-designed BOM, as-planned BOM, as-serviced BOM, and

as-built BOM)Visibility across

the entire product lifecycle

Design Processes

Controlled change

management

Planning & Control

7

Is PLM more important than ERP?

Where is the cost of a product determined?

Source: DARPA RaDEO Project

100

Committed Cost vs. Lifecycle

80

60

40

20

85%

35%

22%

Life Cycle CostDetermination

Cost ReductionOpportunities

Conceptual Design Detailed Design Production Operations Support

Release to Manufacturing

“Total Product Confidence”

DigitalProduct

PhysicalProduct70%

8

Typical processes supported by PLM

9

DesignPlan Concept SupportValidate ProductionOrganization

Requirements Capture and ManagementProposal Response

Manufacturing OutsourcingTooling Design and ManufactureManufacturing Process Management

Optimizing Product Development Processes is Critical

Regulatory Compliance

Portfolio Management

Quality & Reliability ManagementChange and Configuration Management

Program ManagementProject Management

Concept DevelopmentSystem Design

Detailed DesignVerification and Validation

Design OutsourcingVariant Design & Generation

Component and Supplier ManagementEarly Sourcing

Product Support Analysis & PlanningTechnical Information Creation & Delivery

Performance Analysis & Feedback

Environmental Performance Management

PRODUCT DEVELOPMENT LIFECYCLE

Engineering

Management

Sales & Marketing

Sourcing

Manufacturing

ServiceMain PLM Focus

Release toManufacturing

10

One Practical example of PLM

11

The actors in the Product Development Process Example

© 2011 PTC

DimitriDesigner

PeterProject Manager

MikeManufacturer

12

Viewing application

PDF – web

Which tools is Dimitri Designer using ?

© 2011 PTC

PLM Application

MCADApplicatie

TechnicalDocumentation

TechnicalIllustration

Documents, Spreadsheets,

Email, …

CAD

Illustration tool

Microsoft Office

Product DeliverablesCAD

DimitriDesigner

Documentation tool

13

PLM

ERP

The process …

© 2011 PTC

CAD

MS OfficePLM

Documentation

Viewing

ViewingPLM

PeterProject Manager

Release AcceptRelease

MikeManufacturer

Change needed !

Illustration

DimitriDesigner

14

Dimitri Designer performs a last check before initiating the release

© 2011 PTC

ProductView

ProductViewWindchillPDMLink

PeterProject Manager

Release AcceptRelease

WindchillPDMLink

ERP

MikeManufacturer

Change needed !

Microsoft Office

IllustrationCAD

Documentation

PLM

DimitriDesigner

15

Dimitri uses his PLM tool to centralise all Product data

© 2011 PTC

Std Parts

Discloses & Declarations

Analysis

Requirements

CAD Model

Data Sheets

ViewablesHousing

Product

PCA

Schematic

Firmware Assy

Software

Component

ASICs

Mechanical Parts

Software

Battery

Purchased Assy

Approved SuppliersClassified Component

Attributes

AVL

AML / AVL

AML / AVL

PCB

Manual

16

Dimitri uploads an important email to PLM

© 2011 PTC

17

Dimitri performs a final check on the Creo data

© 2011 PTC

18

Dimitri’s illustration created in Arbortext Isodraw is also ready

© 2011 PTC

19

He inserted the illustration in the product manual (Arbortext Editor)

© 2011 PTC

20

Dimitri Designer initiates the release process

© 2011 PTC

ProductView

ProductViewWindchillPDMLink

AcceptRelease

WindchillPDMLink

ERP

MikeManufacturer

Change needed !

Microsoft Office

Arbortext IsodrawCreo

ArbortextEditor

WindchillPDMLink

DimitriDesigner

PeterProject Manager

Release

21

The release process gets started in PLM

© 2011 PTC

Approve Promotion Request

PromotionRequest

Approved

PromotionRequestDenied

22

Peter Project Manager gets a notification email about his task

© 2011 PTC

23

Peter Project Manager performs review before approving the releasing

© 2011 PTC

AcceptRelease

WindchillPDMLink

ERP

MikeManufacturer

Change needed !

Microsoft Office

Arbortext IsodrawCreo

ArbortextEditor

WindchillPDMLink

DimitriDesigner

Release

Viewing

ViewingPLM

PeterProject Manager

24

Peter has all information available to perform his review

© 2011 PTC

Std Parts

Discloses & Declarations

Analysis

Requirements

CAD Model

Data Sheets

ViewablesHousing

Product

PCA

Schematic

Firmware Assy

Software

Component

ASICs

Mechanical Parts

Software

Battery

Purchased Assy

Approved SuppliersClassified Component

Attributes

AVL

AML / AVL

AML / AVL

PCB

Manual

25

Peter uses ProductView to view all MCAD information

© 2011 PTC

26

Peter opens the PDF manual in ProductView(or Acrobat)

© 2011 PTC

27

After reviewing all material Peter approves the Release in PDMLink

© 2011 PTC

28

Mike Manufacturer has all information available from ERP

© 2011 PTC

AcceptRelease

Change needed !

Microsoft Office

Arbortext IsodrawCreo

ArbortextEditor

WindchillPDMLink

DimitriDesigner

Release

ProductView

ProductViewWindchillPDMLink

PeterProject Manager

PLM

ERP

MikeManufacturer

29

Sara-Item Lines

30

WindchillPDMLink

ERP

Mike Manufacturer wants to initiate a Change …

© 2011 PTC

Microsoft Office

Arbortext IsodrawCreo

ArbortextEditor

WindchillPDMLink

DimitriDesigner

Release

ProductView

ProductViewWindchillPDMLink

AcceptRelease

PeterProject Manager

MikeManufacturer

Change needed !

31

The change needs to end up in the PLM system

© 2011 PTC

ERP

PLM

The change

32

Mike creates a markup in Viewing Applicationto indicate what needs to be changed

© 2011 PTC

33

Mike creates the Change Notice in PLMby copying the data from the clipboard

© 2011 PTC

34

WindchillPDMLink

ERP

Dimitri Designer performs change actions using PLM

© 2011 PTC

Release

ProductView

ProductViewWindchillPDMLink

AcceptRelease

PeterProject Manager

MikeManufacturer

Microsoft Office

Illustration

Documentation

CAD

PLM

DimitriDesigner

Change needed !

35

Dimitri designer gets a notification sayinghe needs to perform a Change Notice task

© 2011 PTC

36

Dimitri makes the change in CAD andchecks it into PLM

© 2011 PTC

37

The illustration gets updated automatically

© 2011 PTC

38

The manual gets updated automatically

© 2011 PTC

39

The viewable gets updated automatically

© 2011 PTC

40

The complete BOM in PLM gets updated automatically

© 2011 PTC

41

The process …

© 2011 PTC

CAD

Microsoft OfficePLM

Documentation

Viewing

ViewingPLM

PeterProject Manager

Release AcceptRelease

PLM

ERP

MikeManufacturer

Change needed !

Illustration

DimitriDesigner

42

PLM + ERP = VALUE

43

PLM and Production Systems are Complementary

54%

35%

Best in Class All Others

“ Best in class companies are 1.5 times more likely to have process that span PLM and ERP systems.” 

Aberdeen “Integrating the PLM Ecosystem”

44

Production Planning

Production ExecutionCAD Product Design

What Where and WhenHow

Processes

Supporting applications

ERP Solution

PLM Solution

MES SolutionMES

Where should we draw the line between PLM and ERP/MES?How do we implement a business process across two value chains?

Process Design- Bridging the Gap –

MBOMProcess Plan (routing)

Workinstructions

Where?

?

Key Applications Groups Range of Processes Covered

45

Concurrent Product and Manufacturing Process Designis Key to Drive Profitable Growth

Concept Development

System Design

Detailed Design

Reduce Cycle time

Limited opportunity for Manufacturing to influence design and reduce cost

Full scaleProduction

ProductionRamp-up

Manufacturing Process Management

Reduce Cost of Change

ReduceMFG Cost

“   [Manufacturing companies] identified that the need to reduce manufacturing costs was driving their need to improve their manufacturing planning process at practically the same rate as compressed development schedules.”

Aberdeen Group, Digital Manufacturing Planning – Concurrent Development of Product and Process, 11/2007

46

PLM ERP

Change Management

Configuration Management

Requirements Capture and Management

Detailed Design

Variant Design and Generation

Production Scheduling

Inventory Management

Sourcing and Procurement

Sales and Order Management

Shipping Logistics

Accounting and Financial Reporting

Manufacturing Process Management

System Design

PD Processes span PLM and ERP systems

47

PLM ERP

Change Management

Configuration Management

Requirements Capture and Management

Detailed Design

Variant Design and Generation

Production Scheduling

Inventory Management

Sourcing and Procurement

Sales and Order Management

Shipping Logistics

Accounting and Financial Reporting

Manufacturing Process Management

System Design

Use case 1

48

PLM

Example Use Cases linked to the Development Process

Typical Development Work

- Stocklevel- LeadTime- Cost

- Stocklevel- LeadTime- Cost

- Stocklevel- LeadTime- Cost

Long Lead Items

Partial ReleaseTOPLEVEL

Subassy 10

Part 11

Part 12

Subassy 20

Part 21

Part 22

Part 23

Subassy 30

Part 31

Part 32

49

PLM ERP

Change Management

Configuration Management

Requirements Capture and Management

Detailed Design

Variant Design and Generation

Production Scheduling

Inventory Management

Sourcing and Procurement

Sales and Order Management

Shipping Logistics

Accounting and Financial Reporting

Manufacturing Process Management

System Design

Use case 2

50

Example Use Cases linked to Release To Manufacturing

Release To Manufacturing

EBOM MBOMRTM

PLMTOPLEVEL

Subassy 10

Part 11

Part 12

Subassy 20

Part 21

Part 22

Part 23

Subassy 30

Part 31

Part 32

TOPLEVEL

Subassy 10

Part 11

Part 12

Subassy 20

Part 21

Part 22

Part 23

Subassy 30

Part 31

Part 32

TOPLEVEL

Subassy 10

Part 11

Part 12

Subassy 20

Part 21

Part 22

Part 23

Subassy 30

Part 31

Part 32

ERRORS

51

Final thoughts …

52

How PLM is Evolving

Best of breed PLM’s are now enterprise systems

© 2010 PTC

ERP

PLMCRM

SCM

Mfg.

HR

TodayYesterday

Supplier Strategy

DesignStrategy

Cost & Green

Strategy

Mfg.Strategy

PLM

ServiceStrategy

….

HRCRM

ERP

53

The PTC Value Roadmap

© 2010 PTC

54

Call to Action

Contact PTC• Stephan Monsieur

(smonsieur@ptc.com)• Ingmar Boon

(iboon@ptc.com)

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