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© Copyright 2017 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.

Boosting the Value of PLM Through the Advanced Analytics AssessmentChris Hind

28th February 2017

© Copyright 2017 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners. 2

WHAT?


Doing the

“What” of PLM

for Over 25

Years


WHY?


70%PLM Foresight Opinion Poll

conducted by


No value?…. so why have PLM?

Allows individuals to behave as one


Heraclitus - a Greek philosopher

“ “The Only Thing That Is

Constant Is Change

So you need PLM, you have PLM.

Why change?

Because…


MORE

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FASTER



BETTER



Business Objectives Supported by PLM


PLM Analytics Provides Insight

Our use of PLM Analytics has allowed us to:

• Confirm requirements

• Identify new ones


“Triages” PLM needs and compare clients up against

their peers/competition

(Top Down)

Insights from Our Experience

Help plan Business cases

Understand how PLM works from the people

who use it

(Bottom Up)

A360 degree view of PLM with a detailed roadmap for pragmatic implementation


• The "PLM Pillar" that is currently trending as the priority for requiring improvement by industry is Document Management

• According to our data, Industry's most immature "PLM Pillar" is Manufacturing Process Management

• According to our data, Industry's most mature and effective "PLM Pillar" is Quality / Compliance Management

• The most common goal from PLM improvements is in Improving Time to Market

Industry Insights – Highlights from PLM Benchmark


Industry Insights – Industry Trends Summary

All A&D T&M Energy IE

Lowest As-Is Pillar

ManufacturingProcess

Management


Management

Requirements Management

Manufacturing Process Management

Supply Chain Communication

Lowest Effective Pillar

Maintenance & Repair Operational

Management


Maintenance & Repair Operational

Management

Workflow / Process Management

Classification Management

Highest To-Be Pillar

Change Management

Change Management

Change Management

Workflow / Process Management

Change Management

Largest Gap Pillar


Management


Management


Manufacturing Process Management

Classification Management

Highest PriorityPillar

DocumentManagement

DocumentManagement

Workflow / Process

Management


Workflow / Process

Management


Industry Insights – Industry Trends Priority


Industry Insights – Industry Trends “As-Is” and “Effective As-Is”

The formula used to calculate the "As-Is" Effectiveness is:

Effective As-Is = As-Is * (50% + (Effectiveness * 10%))

This assumes that you would never be less effective than 60% of

your perceived current state.


Industry Insights - Industry Trends “To-Be” and Gaps


Industry Insights – Benefit Spend Priorities

• Improvements in Quality is No.1 priority for:• 47% of T&M clients surveyed

• Reduce time to market is the No. 1 priority for:• 50% of A&D;• 80% of Energy and• 55% of IE clients surveyed


• The average time improvement for finding documents in a PLM system versus file based searching is 10%

• The average improvement in reducing scrap that can be associated with PLM improvements is 3%

• The average percentage cost saving for new Bid creation from improvements in PLM is typically 10%

• The typical efficiency improvement realised by the better Collaboration provided by PLM is 20%

Industry Insights – Highlights from PLM Impact


Industry Insights – Typical Cost Savings

Typically budgets can be reduced for:

• Printing;

• Overnight delivery charges;

• Travel

Typically document retrieval

time is improved, such as

going from 5 minutes to 10

seconds.

Typically, the most generally

applicable statistic:

• Typically efficiency improvements of

between 10 to 15 percent can be

attained with an effective PLM

solution (measured over 2 years)

• Duplication costs are company

specific fixed cost items and are

difficult to generalize.

• Search time savings reduced

overall job length by as much

as 5 percent

Typically costs get reduced from:

• Reduced BOM errors;

• Reduced supplier parts costs

through improved collaboration;

Fixed Costs

Efficiency

Reduced Search Time

Reduced Purchased Part Costs

Reduced Search

Time and Duplicates


• Most companies see a dramatic improvement in the cycle time for processing engineering change. It’s a popular metric.

• Over 90% of the clients measured the EC cycle time and all saw improvements.

• The typical cycle time improvement was from 2 to 3 weeks down to 2 to 3 days.

• Some companies started off with up to 50 days and others reduced the cycle time down to minutes.

Industry Insights – Typical PLM Improvements

Savings Area

Engineering Costs Manufacturing Costs Time to Market Product Quality

High Level Benefits Cost Savings Cost SavingsIncrease Revenue,

Reduce InvestmentsIncrease Revenue, Reduce Margins

Automate ECO Creation

Reduce ECO Processing Time

Automate ECO Approvals & Routing

Fewer ECOs in Manufacturing

Reduce ECO Cycle Time

Manage ECR ProcessGet “Better” Product

Features

High Level Metrics

Percent of Product Cost in Engineering. Cost per

Project, Total Engineering Budget

Unit CostReturn on Sales. Time to

ProfitMarket Share

Automate ECO Creation

Percent of Engineering Time on ECOs. Cost to Fix

ECOs

Automate ECO Approvals & Routing

Approval Meeting TimeNumber of ECOs after

Product Launch. Cost to Fix ECOs

ECO Process Cycle Time

Manage ECR Process Admin Cost per ECO Market Share


Examples of Insight

Comparisons to Others in your Industry

Comparisons

within your

Company

High Level Benefit vs Cost

Comparisons

Anecdotal Benefits Spend


Examples of Insight

Identified “Hard” and Soft” Savings Prioritised Business Cost Savings

Cash Flow


Examples of Insight

Views for those use PLM in your

Company

Processes

Organisation

Technology

v

Processes Organisation

Technology


Examples of Insight Identified / Ordered / Prioritised Improvement Projects

Structured Approach

Recommended “To-Be” States


WHY is WHAT we Do

© Copyright 2017 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.

For further information about Tata Technologies and what we can do to help you create better products

for your customers, visit www.tatatechnologies.com today.

Making product development

dreams a reality since 1989.

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