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Achieving Product & Service Leadership with SAP PLM
PLM Best Practices ConferenceSouth Korea
Vijendran.S (Vijay)June 21, 2011
© 2011 SAP AG. All rights reserved. 2
1. Introduction to SAP Solutions for Product Development
2. Integrated Product Development
3. Project Portfolio Management
4. Embedded Product Compliance
5. Summary
Agenda
© 2011 SAP AG. All rights reserved. 3
Global Trends and Their Impact on: LoB Product Development
Shorter Innovation Cycles
More visibility to customer’s needs, market opportunities, and technologies
Product portfolio strategy linked with business execution
Need to manage innovation processes
Continuous performance tracking
Development cost pressure
Reduce time to market and increase efficiencies in Design, Manufacturing, and Service
Pressure for continuous product cost management and reduced component costs
Need for flexible and dynamic development collaboration networks
Product Liability
Need for compliance controls, documentation, and visibility
How to introduce a sustainability “culture” and design sustainable and compliant products
How to avoid compliance violations from development, manufacturing, sales, service or recycling
Global Price Pressure
Fact: Roughly 80% of all new products are failing to achieve their expectedresults
Fact: About 70% of product costs are locked down during the design phase
Fact: Companies are increasingly being held accountable for the environmental and safety performance of their products
Consumer-Driven Sustainable Innovation
Increasing Product Complianceand Corporate Regulations
© 2011 SAP AG. All rights reserved. 4
The Need for a Comprehensive Product Development and Innovation Approach
Continuous Product and Service
Innovation:
The entire organization needs to ensure a
continuous stream of profitable innovation
Head of
Procurement
Head of
Engineering/R&D
Head of
Manufacturing
Head of
Marketing
Head of
Service
Recyclin
gRamp-Up to
Production
Embedded Product Compliance
Component &
Task Sourcing
Product
Design
Port
folio
Managem
ent Project Management
Manufa
ctu
ring
Main
tenance
& S
erv
ice
Innovation
Managem
ent
Product Visualization and Collaboration
Product Intelligence
Authoring Tools
Integrated Product
Development:
Connecting Engineering/R&D with
the Business
1
2
3
Embedded Product
Compliance:
Being sustainable starts with
simply being compliant
with existing regulations
© 2011 SAP AG. All rights reserved. 5
Product and Service LeadershipManage All Product Related Processes End-To-End
Product and Service Leadership (PSL)
Enable open innovation and manage execution
Connecting development with manufacturing, sales and service
Drives efficiency through an open and secure collaboration platform
Product related and business analytics for decision support
Integrated Product Development
Embedded Product Compliance
Continuous Product Change
Continuous Product and Service Innovation
ProcurementEngineering ManufacturingMarketing Service
© 2011 SAP AG. All rights reserved. 6
Product and Service LeadershipSAP PLM Enables Product and Service Leadership
Business
Processes
End-to-End
Scenarios
SAP Business Suite
SAP NetWeaverIntegration
SAP NetWeaver®
Composition
SRM SCM ERPPLMCRMEhP EhP
Enterprise
ApplicationsIntegrated
Services
SAP PLM
enabling
Product
and
Service
Leadership
SAP PLM
Innovation
without
Disruption
Product and Service Leadership
DESIGN SOURCE MAKE SELL MOVE SERVICEINNOVATE
Continuous product and service innovation
Embedded product compliance
Continuous Product Change
Integrated product development
© 2011 SAP AG. All rights reserved. 7
Design Source Make Sell Move ServiceInnovate
Continuous Product and Service Innovation
Continuous Product Change
Integrated Product Development
Embedded Product Compliance
What’s New! Synchronize Strategy with Innovation and Execution
Continuous Product and Service
Innovation
Innovations 2010 – The SAP Portfolio and
Project Management 5.0 application enables
truly integrated portfolio and project
management and leverages SAP Product
Lifecycle Management (SAP PLM) and SAP
ERP data and processes. The new idea
management functionality enables open
innovation and is linked with the portfolio
planning and execution.
Managing
Innovation
Program and
Project
Management
Strategy
and
Planning
Portfolio
Management
© 2011 SAP AG. All rights reserved. 8
Design Source Make Sell Move ServiceInnovate
Continuous Product and Service Innovation
Continuous Product Change
Integrated Product Development
Embedded Product Compliance
What’s New! Synchronize Strategy with Innovation and Execution
Component
and Task
Sourcing
Ramp-up to
ManufacturingProduct Design
Integrated Product Development for
Process Industries
Innovations 2010 – SAP PLM 7.01 data
consistency and development efficiency by
new UI for recipe management automated
calculations of labels, ingredient, allergen,
and nutrition and support of compliance
checks
© 2011 SAP AG. All rights reserved. 9
Design Source Make Sell Move ServiceInnovate
Continuous Product and Service Innovation
Continuous Product Change
Integrated Product Development
Embedded Product Compliance
What’s New! Synchronize Strategy with Innovation and Execution
Manufacturing
Compliant
Product
Maintaining
Product
Compliance
Developing
Compliant
Product
Embedded product compliance
Innovations 2010 – SAP PLM 7.01 with
environment, health, and safety (EH&S)
management functionality provides
enhanced support of REACH registration
processes and business analytic for
comprehensive
product analytics, compliance, and
sustainability reporting.
© 2011 SAP AG. All rights reserved. 10
Design Source Make Sell Move ServiceInnovate
Continuous Product and Service Innovation
Continuous Product Change
Integrated Product Development
Embedded Product Compliance
What’s New! Synchronize Strategy with Innovation and Execution
Continuous Product Change
Innovations 2010 – SAP PLM 7.01 with new
change record management functionality,
enabling flexible, fast, and transparent
change management across department
boundaries
Integrated Change
Investigation
Change Audit and Approval
Change
Initiation
Change Implementation
© 2011 SAP AG. All rights reserved. 11
1. Introduction to SAP Solutions for Product Development
2. Integrated Product Development
3. Project Portfolio Management
4. Embedded Product Compliance
5. Summary
Agenda
© 2011 SAP AG. All rights reserved. 12
Integrated Product DevelopmentKey Stakeholders and Objectives
Integrated Product Development best achieved through aligning several key stakeholders with differing objectives in the planning process
Component
and Task Sourcing
Ramp-up
for ProductionProduct Design
Product Division Head
Head of ManufacturingHead of ProcurementHead of R&D
How do I integrate the
disconnected design,
procurement and
manufacturing silos to
reduce time to profit
How do I enable development
efficiency and collaboration to
avoid wasted time?
How do I overcome last minute
changes that result in lost time
to profit?
How do I synchronize
development with manufacturing
to reduce long set-up times?
Time to Market
Product Profitability
Customer Satisfaction
Time to Market
Manage all Configurations
Total Product Cost
Compliance Requirements
Cost Effective Components
Contract Management
Supply Chain Interruptions
Compliant Sourcing
First Time Right
Production Set-Up Time
Quality
How do we align, synchronize and collaborate to reduce time to profit?
© 2011 SAP AG. All rights reserved. 13
PLM for Discrete IndustriesThe Big Picture
SAP Business Suite
Design Define Calculate
Au
tho
rin
g
To
ols
Tool
Inte
gra
tion
eBOM
PLM
mBOM
Pro
du
ct
Str
uc
ture
Man
ag
em
en
t
Manufacturing
Engineering Change Management
Engineering Desktop
(M-CAD, E-CAD, CAE, EDA, …)
ProductStructure
Synchronization
Execute
CAD BOD
Up
pe
r L
evel
Str
uctu
re
Lo
wer
Le
vel
Str
uctu
re
Assemblies Assemblies & Materials
Embedded Analytics, Enterprise Collaboration & Visualization
© 2011 SAP AG. All rights reserved. 14
Demo Scenario & Steps
Scenario:• This demo is about a scenario where a CAD user integrates directly to a SAP PLM
session to transfer all product information from CAD tool into SAP PLM. In SAP PLM,
the user creates Materials & then a BOM.
• Another user as Manager logs into the SAP PLM & reviews the product information,
including 3-D data, and does preliminary review of geometry information with in SAP
PLM.
CAD User Steps1. Start Pro/E
2. Open an Assembly
3. Connect to SAP PLM E-Desk
4. Login to SAP PLM
5. Save CAD files into SAP PLM
6. Create Materials
7. Create BOM
Engineering Manager Steps1. Login to SAP PLM
2. Navigate to PLM Expert
3. Explore assembly in SAP PLM
4. Open 3-D mockup in SAP PLM
5. Navigate to sub-assembly in SAP
PLM
6. Review design in SAP PLM
© 2011 SAP AG. All rights reserved. 15
CAD User: Step-1 Start Pro/E
© 2011 SAP AG. All rights reserved. 16
CAD User: Step - 2 Open an Assembly
© 2011 SAP AG. All rights reserved. 17
CAD User: Step-3 Connect to SAP PLM
© 2011 SAP AG. All rights reserved. 18
CAD User: Step-4 Login to SAP PLM
© 2011 SAP AG. All rights reserved. 19
CAD User: Step-5 Save CAD files into SAP PLM
© 2011 SAP AG. All rights reserved. 20
CAD User: Step-6 Create Materials in SAP PLM
© 2011 SAP AG. All rights reserved. 21
CAD User: Step-7 Create BOM in SAP PLM
© 2011 SAP AG. All rights reserved. 22
Manager: Step-1 Login to SAP PLM
© 2011 SAP AG. All rights reserved. 23
Manager: Step-2 Navigate to PLM Expert
© 2011 SAP AG. All rights reserved. 24
Manager: Step-3 Explore Assembly in SAP PLM
© 2011 SAP AG. All rights reserved. 25
Manager: Step-4 Open 3-D mockup in SAP PLM
© 2011 SAP AG. All rights reserved. 26
Manager: Step-5 Navigate to sub-assembly in SAP PLM
© 2011 SAP AG. All rights reserved. 27
Manager: Step-6 Review design in SAP PLM
© 2011 SAP AG. All rights reserved. 28
1. Introduction to SAP Solutions for Product Development
2. Integrated Product Development
3. Project Portfolio Management
4. Embedded Product Compliance
5. Summary
Agenda
© SAP AG 2009 / Page 29
Finance /
HR / Legal
Marketing /
Sales / Support
Supply /
Mfg / Dist
Product /
Service Mgmt
Customers /
Partners
Continuous Product and Service Innovation Is an End-to-End, Cross-Functional Process
Continuous Product and Service Innovation connects processes across departments to drive competitive differentiation and profitable growth.
Managing InnovationProgram and Project
ManagementStrategy and Planning
Portfolio
Management
Marketing OperationsMarketing & Ecosystem Product Management
Initiative
Planning
Product
Intelligence
Strategy
Management
Idea
Management
Concept
Development
Project
Portfolio
Planning
Market Launch
Management
Project
Execution
Initiative
Management
Project
Accounting
Resource
Management
Project
Profitability
Analysis
Product Development
Portfolio
Reviews
© 2011 SAP AG. All rights reserved. 30
SAP Enabling Enterprise Portfolio and Project Management
OthersSAP Project Mgmt
cProjects
PS
Enterprise
Portfolio Management
Portfolio AnalyticsPortfolio Management
Ag
gre
gate
Init
iate
Integrate
“Core enterprise
processes &
activities”
Operations - Level
“Project
management and
execution”
Project- Level
“Managing and
monitoring the
portfolio & programs”
Portfolio Level
Resources
Time
HR
Financial data
FI/CO
Project
System
Logistics
MM
PP
© 2011 SAP AG. All rights reserved. 31
Typical Implementation Scenarios for advanced PPM implementationsC
ap
ital
“Manage and control enterprise wide, project related
investments”
Process, Utilities, Oil & Gas, Mining
Modifications of Assets; “Greenfield projects”, etc.
Alignment of capital / operational
spend and strategic intend
Effective stage gate control for
projects
Auditable planning and budgeting
process
Early identification of
opportunities, bottlenecks and
risks
Improved visibility and
management of the portfolio
Link between business case and
actual spend
Agile process of reviewing and
adapting the portfolio
NP
DI
“Optimize strategic resource & financial management of
the innovation process”
Consumer Products, High Tech, R&D in General
Innovation-Pipe, Resource plg., Budget allocation
IT
“Help IT organizations to align activities & resources with
business strategy”
All industries
Demand- and Resource Mgmt., PMO-Support, etc.
© 2011 SAP AG. All rights reserved. 32© SAP AG 2009. All rights reserved. / Page 32
Consumer Products customers using SAP PPM for R&D, IT and other areas
1000+ Consumer Products companies rely on SAP:
“Enterprise Portfolio Management
that helps to ensure that projects
support the business strategy of a
leading Dairy Company”
Sophisticated RPM & cProjects project
completed in 9 month
Phased approach IT, R&D, others
One fully integrated solution to support
full visibility and
decision support
“Global New Product Development
and Introduction - NPDI - at the
world's most international tobacco
group.”
Optimize the product portfolio with
SAP RPM & cProjects. Global process
& project methodology for portfolio,
projects, documents, reporting; New
Products &
Modifications
of Existing
“Provide one IT project portal for
project information at the world
largest beverage company”
Phased approach to migrate from
multiple tools to one integrated tool
Initially deployed SAP RPM for process
governance and reporting
Continuous enhancement and
improvement
... to mange daily project operations and optimize projects across all areas
© 2011 SAP AG. All rights reserved. 33
1. Introduction to SAP Solutions for Product Development
2. Integrated Product Development
3. Project Portfolio Management
4. Embedded Product Compliance
5. Summary
Agenda
© 2011 SAP AG. All rights reserved. 34
Environmental Regulations Spreading Globally… As Well as for Recovery and Recycling of Their Products
South Korea
Act for Resource Recycling
of Electrical/Electronic
Products and Automobiles
Japan
Japanese Containers and
Packaging Recycling Law
Guidelines on Waste
Processing and Recycling
Australia
Environment Protection Measure on
Used Packaging Materials (NEPM)
National Packaging Covenant
Establishment of special purpose
industry driven organization
E-Waste Australia
Taiwan
Restriction of Dry Battery
Manufacturing, Import and
Distribution
New Zealand
Container Deposit
Legislation (CDL)
Brazil/Argentina
Revised Battery Rule
Battery Ban Law
US - Maine:
Electronic Waste Producer
Responsibility ActEffective January 2005
US - California:
Electronic Waste Recycling
Act
The Cell Phone Recycling
Act
The Rechargeable Battery
Recycling Act Effective July 2004
Canada:
Waste Diversion Act Ontario
Environment Quality Act
QuebecEffective 2002/2007
US – Oregon
Electronics recycling program
(CED – covered electronics
devices) Effective 2007
Mexico
Omnibus “Waste Law”
(End-of-life electric and
electronic products)
Packaging Sustainability
WAL*MART Sustainability
Packaging Scorecard Effective February 2008
“Number of Regulations doubled in the last six years” – Gartner GRC Summit 2008Europe: WEEE, Packaging, Batteries
(2002/96/EC,
94/62/EC,
2006/66/EC,)
Waste Electric and Electronic
Equipment: transitioned into local
legislation of 27 countries
Effective August 2005
Packaging Sustainability
Tesco Packaging Sustainability
DHL
AH (Albert Heijn ..)Effective Est. 2008
Note: See Disclaimer
© 2011 SAP AG. All rights reserved. 36
SAP’s Approach to Product ComplianceOne Solution for Product Compliance
RoHS ELV TSCAJIG REACH OSHA WEEE
One single technical and process solution for all
relevant product and chemical compliance
requirements
One integration infrastructure to embed EH&S
compliance controls into business processes
One uniform collaboration
infrastructure for various
types of compliance
information exchange
One consistent
substance database
used cross-
functionally
IPC
1752
AIAG
IMD
S
IUCL
ID
eSD
S
AS
9535
Manufacturing
Compliant Product
Maintaining
Product Compliance
Developing
Compliant Product
DESIGN SOURCE MAKE SELL MOVE SERVICESupplierCONCEPT TAKE BACK
© 2011 SAP AG. All rights reserved. 37
SAP’s Approach to Product ComplianceAligns Departments Toward Corporate Compliance Objectives
Manufacturing
Compliant Product
Maintaining
Product Compliance
Developing
Compliant Product
How do I introduce safe and
eco-friendly products that are
still profitable?
How do I develop safe and
eco-friendly products without
increasing cost or
time-to-market?
How do I ensure manufactured
product meets the safety and
environmental requirements?
How do I ensure and report
regulatory compliance
throughout the full life cycle of
our products?
Product marketability
Product profitability
Regulatory and industry
standards compliance
Design for safety and
environment
Documentation, registration,
and labeling
Material cost
Supply chain conformance
Safe material management
Manufacturing process
compliance
Substance restrictions and
disclosure
Reuse and recycling targets
Compliance incidents
CSR reporting
Embedded Product
Compliance
Embedded product compliance helps high-tech companies ensure the safety and environmental performance of their products, leading to optimized marketability and minimized non-compliance risk
RegulatoryManufacturingProduct DevelopmentProduct Division Head
© 2011 SAP AG. All rights reserved. 38
1. Introduction to SAP Solutions for Product Development
2. Integrated Product Development
3. Project Portfolio Management
4. Embedded Product Compliance
5. Summary
Agenda
© 2011 SAP AG. All rights reserved. 39
The new economic environment is
substantially more volatile, much more
uncertain, increasingly more complex
and structurally different then ever
before.
SAP helps the Head of Product
Innovation & Development to reduce
time-to-profit, and increase revenue
contribution through new and enhanced
products, while decreasing costs of
R&D, noncompliance, and non quality.
SAP provides a comprehensive
approach and solutions to support
engineers and R&D departments AS
WELL AS the entire enterprise to achieve
this goal!
Summary
© 2011 SAP AG. All rights reserved. 40
Continuous product and
service innovation
Integrated product
development
Embedded product
compliance
Companies Today are Driving Value through“Product and Service Leadership”
© 2011 SAP AG. All rights reserved. 41
Thank you!
Vijendran (Vijay)
Industry Principal IMC & PLM
Asia-Pacific Japan
© 2011 SAP AG. All rights reserved. 42
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