plm is a key enabler to cpg growth meat conference may 2012 final
DESCRIPTION
The good folks at The American Meat Institute invited me to present on PLM at their May 2012 conference in Dallas.TRANSCRIPT
Product Lifecycle Management is a Key Enabler to Food & Beverage GrowthChip Perry
Food & Beverage CPG Director
Presented at the American Meat InstituteMay 2012 Annual Conference
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Agenda• Kalypso introduction• Key F&B business trends• Product Lifecycle Management defined• PLM business benefits • PLM tour – what are all the capabilities?• At the core is the Product Data Record• PLM Justification• Questions
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The Kalypso DifferenceKalypso is a consulting firm focused exclusively on innovation. Our people are leading business professionals who combine experience in select industries with product and process innovation expertise.
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The Innovation EngineOur services are designed to help companies become more innovative and provide a systemic view of new product & service development.
Front End of Innovation
Portfolio & Pipeline
Management
New Product Development
Execution
Value Realization
Business Innovation Strategy
Business Intelligence & Analytics
PLM Technology
Leadership & Adoption
Intellectual Property Management
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The State of F&B in 2012
Simultaneous collaboration and competition
Innovation as a basis for competition and growth
A dearth of big ideas and breakthrough products
Increasing merger and acquisition activity
New laws mean new challenges
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Existing specifications hard to find
Packaging & artwork oversights causing product launch delays, recalls
No visibility into which products to grow or kill
Compliance teams resource-constrained
Approval for product changes takes too long
Ineffective leveraging our partners
Traceability!
“
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What We’re Hearing
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Product Lifecycle Management (PLM) is comprised of standard processes, people interactions and enterprise information systems that enable and integrate product development capabilities.
PLM enables the efficient management of product-related data and helps companies address product compliance, R&D productivity and time to market.
What is PLM?
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Life Sciences Services
Demand for PLMPLM matured in the discrete manufacturing industries of automotive, aerospace and high-tech, the major vendors are still adapting their solutions for CPG, F&B and Life Sciences
EmergingGrowth IndustriesEstablished Industries
“Second wave”
PLMMaturit
yCPG, F&B,
Personal Care, Household
MedicalDevice
High TechIndustrial
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How Well Do You Manage Your Product Development Data?
Critical product data grows exponentially as ideas become concepts and finished products enter the market
= product data clusters
Conceptual Data
Product Development/Manufacturing
Data
Early Design Data Production Data
Idea Product Developme
nt
Concept
Finished Product
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PLM strategies must support design for value and collaborative innovation while protecting consumer safety.
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Collaborative design / communication toolsInvest in strong PLM
systems “Sandboxes” for ideation
Incorporate searching capabilities
Amass libraries by function / need
Incorporate “tribal knowledge” into their systems
Transfer technology quickly & effortlessly
What Market Leaders Do
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PLM Defined for F&B Industry
Product Development DataManufacturing Data
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fills the pipeline with promising ideas
links market need to front end innovation
ensures that strategy enables
development
Portfolio & Pipeline ManagementGovernance structure & decision making processes that align business strategy with development investments are known as Portfolio & Pipeline Management. These processes ensure a closed loop to increase return on innovation:
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Portfolio & Pipeline ManagementManage portfolio and investment allocation for breakthrough products
Support40%
Ex-ten-sions35%
New Plat-
forms20%
5% Support35%
Extensions25%
New Plat-
forms25%
15%
Breakthroughs Breakthroughs
Innovative Company Example Product Mix
Average Company Example Product Mix
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Packaging Artwork Management (PAM) systems are the people, process, tools and data that design, create and manage package labeling
Packaging Artwork Management
The people, knowledge and skill sets that bring packaging innovation to life
Processes that deliver repeatable results and ensure a high level of quality without redundancy and rework of packaging artwork
Packaging data and digital assets stored in
a centralized location to ensure global standards
People
ToolsData
Process
PAMSoftware tools that support business processes by enabling the packaging design and development process
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Formulation Tools
CAD tools
Authoring Tools
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• critical information• logical data model• well-defined set of relationships between data
elements• traceability back and forward from any lifecycle
state
The single version of truth for a company’s product and product-related data
The biggest PLM benefits come from integrated information and work processes
Product Data Record
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Management of Change ProductionIdeation/Development
Iterative World Transactional WorldCreative World
Formulated Products – Product Lifecycle States
The Role of the Product Record in the Management of Product Data Lifecycle
Authoring tools and PLM systems are used to build the Product Record. The final life-cycle state of products in the Product Record feed ERP’s Master Data.
Idea Experimental Data Regulated Data Production Data
Product Development Promotion to Manufacturing
Concept/Design ApprovalPromotion to Regulated State
Prototypes
• Entry in Authoring Tools
• Creation of the data
Finished ProductSamples &Experiments
ERP
Define DesignCriteria for New Formula & Ideate
Search, Model & Screen Formulas
Formulate Prototypes
Complete Master Data & Publish Draft Product Spec
Validate Master Data & Publish Final Product Spec
Evaluate & Select Final Formula
Commercial Scale Production
PLM BackboneAuthoring Tools
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Product Data Life Cycles
Idea Experimental Data Regulated Data Production Data
Management of Change
Production Data
Production
Lifecycle Management of Data
PLM Backbone ERP
PrototypesIterative Formulas & Packaging Concepts
Authoring Tools
Ideation/Development
Finished ProductQA QC
Iterative World Transactional WorldCreative World
Product & Pkg. Dev. Product Record DBOM PBOM
R&D Manufacturing
PLM captures and structures the iterative design work which results in final product specifications, enabling reuse.
Creation of the data
1. Preliminary StageNo change control – Iterative work
2. Prototype StageChange control – Draft spec
3. Pilot StageChange control – Pilot approved spec
4. Production SpecPLM hands off to ERP –Production approved spec
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PLM justification is most effective when focusing on a benefits case and not a traditional business case.
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Drive insights into product development
F&B Justification for PLM
Quality, safety, traceability, complianceRegulatory
Product specification managementProduct Data Management
Consumer Insights
Packaging, artwork & labeling alignmentMajor Efficiency Opportunity
Need for tailored solutionsConfigured Commercial
Solutions
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PLM Justification
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Operational Efficiency
Cycle-time reduction and Direct Material savings• NPD cycle time
reduction — 40%• Sourcing savings —
P&G $45M/yr• Time & Cost Savings
— 20-30%
• Packaging, artwork, label scrap, rework reduction $5M/yr
• 100’s–1000’s of changes/yr
Consumer Safety Issues/
Risk Management
Ingredients & regulatory-mandated warnings on the increase• 51% mislabeling• 13% faulty packaging• 12 % non-compliant
ingredient• 11% operating
in-effectiveness
Brand Leverage
Through Faster NPD
• #2 to market loses 25% of sales to #1
• Partnership with retailers
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Monitor, track and optimize
your NPD pipeline
Manage product data efficiently
eliminating rework
Collaborate internally and
externally
Implementing PLM Technologies
Product
Process
Packaging
Initiative
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Closing Thoughts
PLM is a foundational part of a company’s innovation strategy and infrastructure
Results achieved have been transformational
Like ERP, poorly planned implementations have led to well-publicized failures
Think big, start small, build incrementally
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linkedin.com/company/kalypso
twitter.com/KalypsoLP
facebook.com/KalypsoLP
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CPG Client
Formulation
Enterprise Resource Planning
(Bill of Materials)
Package Specs
Process Specs
Label Text Specs
QualitySpecs
Manual transfer
Manual transferPackaging/Graphics
Label Text / Nutrition
Quality
Process Instructions
Local Databases/Applications
PLM Assessment Biggest Gap – No Product Specification System for Global Food Company
“There is much manual work and where there is a human, there is an error.”
CPG Standard
Authoring Tools PLM Specification
System
Enterprise Resource Planning
Quality
Bill of Materials
Label
Process
Packaging
Product
Quality Label
Process
Packaging
Product
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PLM Capabilities FrameworkStrategic Capabilities
Product Portfolio Management Program ManagementResource Management
Design Capabilities
Design Workbench
Design Collaboration
Requirements Management
Software Development & Quality Assurance
Data Management Capabilities
Recipes& Process
SpecificationsFormula
Management
Asset Management
Label & Artwork
Packaging
Software Code Compliance & Regulatory
Collaborative CapabilitiesSupply Chain
Sourcing & Cost Management
Service
Sales
Product Strategy and Roadmaps Stage GateIdeation & Idea Management
BOM Configuration Management
Technical Infrastructure
Foundational Capabilities
Component/Materials Management Document ManagementEngineering Change Management
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Design for value
Efficient product development processes
Lean & agile product supply strategies & resources
Compliance & traceability to meet increasing regulations
Integration with Social Media
Design-Based competition
How PLM Can Help