Product Lifecycle Management (PLM)

1. Product Lifecycle Management (PLM) • Organisational Strategy • Need for structural change • IT tools • Increased integration (rather than “point solutions”) • Provide targeted tools for SCM at various stages in the life cycle of products • SCM is initially geared for planning / execution with existing products • Not sensitive to life cycle • Volvo: to enable better global coordination in manufacturing process planning.

2. SAP web site • Bring products to market quicker with better designs • Postponement , more resilient etc… • Support collaboration between: • Internally: marketing and sales, planning and production, procurement, and maintenance • Externally: partners, suppliers, contract manufacturers, service providers -- even customers • Allow the management of new assets, environment, health, and safety requirements • Allow integration between mysapERP, mysapSRM, mysapCRM and mysapCRM!

3. Components • Specification data sheets • Document management • Structured repositories • Complex authorization system • Partner work areas • Eg: suppliers (for bidding stages) • Workflow and status management • Connection to backend systems (BOMs, suppliers files, asset registers etc…)

4. PLM Stages • Plan • Define • Build • Support • …. • Imagine this in the context of a portfolio approach • different products at different stages • Different information needs • Different partners / emphasis • Imagine the IP problems too.

5. Plan – Innovate and spec. • Up to 80% of product costs are determined in the very early stages of life cycle • Collaboration tool for multinational projects • Bring stakeholders at an earlier stage • Cost saving adjustments • Investigation of variants • Exit strategy • Increase speed of development • Reduce unnecessary changes during product life cycle • Allow asynchronous work and ensure security of data • Support global development teams

6. Define – Develop and Validate • Computer aided design • Common repository of customer requirements • Real time validation / compliance • Simulation of performance • Enormous reduction in cost in comparison with physical prototyping • Computer aided development of production tooling • Optimised routings • Accurate projects of cost per unit

7. Build – Produce and deliver • Translation of design of solution into manufacturing execution (traditionally disconnected) • Less structured task because more dynamic and diverse • Many competences (quality validation, process improvement, plant design, resource management etc..) • Greater continuity, collaboration and cohesion in the on-going improvement of products

8. Support – Service and Sustain • Close the loop: • Connect front line staff with early planners • Communicate new/changed requirements • Check if predictions are true • Learn for next release / new products • Involve all partners in process • Manage a complete portfolio of products • Knowledge management across sites, competences and across systems (ERP, SCM and CRM)