Why PLM Projects Fail - ProSTEP iViP

Institute for Virtual Product Engineering
ProSTEP iViP Symposium 2009
Mechatronic Development – An Interdisciplinary Challenge
BCC Berlin, May 12th and 13th, 2009
Keynote
Why PLM Projects (still) fail …
University of Kaiserslautern
Institute for Virtual Product Engineering
Martin Eigner
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 1

Institute for Virtual Product Engineering
ProSTEP iViP Symposium 2009
Why PLM Projects
(still) fail
… an engineered
representation!
…
Product Lifecycle Management – What do we talk about?
Complexity of Products and Processes
What´s going wrong with the PLM Implementation ?
Conclusion
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 2

Product Lifecycle Management
Product Lifecycle Management - Framework
Complexity of Products and Processes Integrated Holistic Concept Conclusion
Institute for Virtual Product Engineering
Federated, multidisciplinary and integrated product creation and process
support.
Disciplines
Services
user accepted
multidisciplinary
Software
Electronics
Mechanics
OEM
1./2. Tier
SME
SME
Product Creation
Network
Product
Product
planning Concept
development Production Operation Recycling
integrated
federated
Product Lifecycle
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 3

Product Lifecycle Management
Complexity of Products and Processes Integrated Holistic Concept Conclusion
IT Solutions & PLM Implementation
Institute for Virtual Product Engineering
Source: Aberdeen 2006
Source: AMR Research 2006
Source: Deloitte Research – Mastering Innovation, 2005
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 4

Institute for Virtual Product Engineering
ProSTEP iViP Symposium 2009
Why PLM Projects
(still) fail
… an engineered
representation!
…
Product Lifecycle Management – What do we talk about?
Complexity of Products and Processes
What´s going wrong with the PLM Implementation ?
Conclusion
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 5

Product Lifecycle Management
Complexity of Products and Processes Integrated Holistic Concept Conclusion
Product Development has changed
Institute for Virtual Product Engineering
… to higher Product and Process Complexity!
Producer
Tool supplier
(manufacturin
g facilities)
Globalization
Reliability
Quality Mgmt.
New Role
of Suppliers
Customer
Component
supplier
Product
Complexity
Time to
Market
Design
for X
TCO
Governance/
Compliance
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 6

Product Lifecycle Management
Mechatronic for Automotive: An interdisciplinary challenge
Complexity of Products and Processes Integrated Holistic Concept Conclusion
Institute for Virtual Product Engineering
Mechatronic Product Development Challenges:
Computing
Mechanics
Mechatronic
Electronics
Source: Aberdeen 2006
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 7

Overall external Variance
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ARMREST
ARM_DRV (Armrest Driver)
ARM_none (none)
SEAT_CVR
SAD_VACH (Vachette leather)
SAD_ALCN (Alcantara)
SAD_TXTL (Textile)
SEATS
SEA_SPRT (Sport)
SEA_NORM (Normal)
STEERING
STEER_R (RHD)
STEER_L (LHD)
COL_IN
CLI_BLK (Black)
CLI_CRM (Beige)
CLI_GRY (Gray)
DOORS
2DOOR (2 Door)
4DOOR (4 Door)
SEAT_HEATING
SEA_HEAT (Heating)
SEA_none (none)
SEAT_ADJUST
SAD_ELM (El. Memory)
SAD_ELE (Electrical)
SAD_MNL (Manual)
Quelle: Dr.-Ing. Mathias Zagel
Var[…]
=
n
∏
i = 1
(OPT i
)
n = Number of options
i = Index
OPT i
= Values for option i
2*3*3*2*2*2*2*3 = 864
Descriction
incomplete
Design for Variants 8
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 8

Product Lifecycle Management
Automotive Product and Process Network
Complexity of Products and Processes Integrated Holistic Concept Conclusion
Institute for Virtual Product Engineering
In the 80s In den the80er 80sJahren
In the 90s In den 90er Jahren
Today
Heute
M2
Lieferant Supplier 1
Lieferant Supplier 2
Lieferant Supplier 3
Lieferant Supplier 4
Lieferant Supplier n
OEM
Tier 3 Tier 2
Tier 1
OEM
Tier 3 Tier 2
Tier 1
OEM
M1
M3
}
Continuous information
Networks
OEM 1
Logistics service
provider
OEM ...n
Service provider in the
development field
Logistics service
provider
Technology experts
System
integrators
Service provider in
the development
field
In the future
Component
manufacturer
System-integrator ...
Service provider in
the development
field
Logistics service
provider
Technology expert
...
Component
manufacturer
Quelle: Dr. Göschel, BMW Group
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 9

Institute for Virtual Product Engineering
ProSTEP iViP Symposium 2009
Why PLM Projects
(still) fail
… an engineered
representation!
…
Product Lifecycle Management – What do we talk about?
Complexity of Products and Processes
No What´s solution goingso wrong far? – with One the integrated PLM Implementation holistic concept ?
Conclusion
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 10

Product Lifecycle Management
Complexity of Products and Processes Integrated Holistic Concept Conclusion
No solution so far?
Institute for Virtual Product Engineering
Typical PDM/PLM scenarios
- Jump as a tiger … land as a carpet runner
- No vision no budget, vision but no budget, no vision but budget
- No Champion, no leadership
- MyPLM = „I need my own PDM/PLM Solution“
- To many own developed or over customized PDP/PLM solutions
- Missing milestone plan, missing long term perspective
- Redundancy, overlapping with legacy systems (f.e. ERP)
- No PDM/PLM awareness on management level („no father, no mother“)
- Wrong people to execute the PDM/PLM project
- No balance between central defined and executed functions (f.e. engineering item
master, ECM process, multi-disciplinary E-BOM) and flexible regional, product or
discipline dependent solutions (f.e. TDM,....)
- Customers want 150%, suppliers promise 120% and deliver 68%
- IT drives processes and not vice versa.....
- Detailed analysis of technique (System A 3,34 points, System B 3,29 points,...)
- Missing user acceptance
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 11

Product Lifecycle Management
General comments (1): Profit Outlook and Result
Complexity of Products and Processes Integrated Holistic Concept Conclusion
Institute for Virtual Product Engineering
What is the optimal relationship between effort and result?
Result
100%
With 20% effort
80% results
Optimal PLM Point
Effort
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 12

Product Lifecycle Management
General comments (2): Point of Organisation
Complexity of Products and Processes Integrated Holistic Concept Conclusion
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Where is the optimal point of organisation?
Costs
Cost of Organisation (integrated)
Total Cost integrated Enterprise
Optimal PLM Point
Autonomy Cost
0 1
Technical Organisation
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 13

Product Lifecycle Management
General comments (3): How to survive the critical phase?
Complexity of Products and Processes Integrated Holistic Concept Conclusion
Institute for Virtual Product Engineering
The benefit of PDM/PLM is on other cost center and ROI > 2,5 Years
Cost | Benefit
Benefit PDM/PLM
Reference Line
Cost PDM/PLM
0
Zeithorizont
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 14

Product Lifecycle Management
Complexity of Products and Processes Integrated Holistic Concept Conclusion
PLM Implementation „Triangle“
Institute for Virtual Product Engineering
PLM Implementation … is a Change Process / with sustainability!
Technical Factor
- correct requirements
- chosen IT – solution
- applications with growing complexity
- software architecture
… - one integrated holistic concept!
Technical
Factor
Process
Factor
Human
Human Factor
Factor
Process Factor
- Business Processes
- Operative Processes
- PDM/PLM Project Management
Human Factor
- culture, values, beliefs…
- skills, competencies…
- motivation & BEHAVIOUR
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 15

Technical Factors are not as important as supposed!
Product Lifecycle Management Complexity of Products and Processes Integrated Holistic Concept Conclusion
What is the appropriated class of PDM/PLM solutions:
Institute for Virtual Product Engineering
- high end interdisciplinary PDM/PLM solutions with high degree of customization
- midrange PDM/PLM solution
- TDM (team data management) solution tightly bundled with authoring systems
What is the right PDM/PLM system?
- The supplier must be able to survive and to execute!
- The PDM/PLM functions are driven from the engineering processes (see next
chapter)
- Functions in one class of solutions are similar but differences in customization
Customization Cost to high
- Software / Application
- Hardware (HW) + HW-near Software
- Unique Services
- Customizing Services (implementation of customer needs)
- Data Migration (from legacy systems to central PDM system)
- Annual maintenance
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 16

Product Lifecycle Management
Alternative PDM/PLM System Architecture
Complexity of Products and Processes Integrated Holistic Concept Conclusion
Institute for Virtual Product Engineering
Different site specific ERP instances
Authoring
Systems
TDM
Systeme
PDM/PLM
Backbone
ERP
Project Mgmt. Req. Mgmt. M-CAD EE-CAD SW/CASE Office ……..
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 17

Costs for PLM System introduction
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Repartition of overall PLM introduction costs:
Repartition of Customizing costs:
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 18

Product Lifecycle Management
Complexity of Products and Processes Integrated Holistic Concept Conclusion
Process Drives IT and not Vice Versa
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Business Strategy / Vision
LEGAL
TECHNOLOGY
PLANNING
BRAND
ALLIANCE
Targets
Results
DESIGN
OTHER
Operativ Level ( f.e. PDP)
Process-
Requirements
Process Model
System Concept
Ressources
Detailled Level ( f.e. CM)
System
anforderungen
Process
Tests
Einsatz
Hardware
IT-Solutions
+
Derivate the corresponding PDM/PLM functions and architecture
Requirements
Software
System 1
System 2
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 19

Product Lifecycle Management Complexity of Products and Processes Integrated Holistic Concept Conclusion
PLM Matrix and Process Oriented Approach
Institute for Virtual Product Engineering
Input from
Porsche Consulting
Input from Miele
(Business/IT Strategy)
Data model
process analysis
process
documentation on
“integration level” with
PLM-relevant
Information (using
process modeling tool
OMEGA)
phase 1 phase 2 phase 3
process
optimization
focusing on PLM (IT)
aspects
focusing on
department
“Wäschehandling”
architecture
analysis
determination of
requirement of PLM
processes, PLM
functionalities and PLM
architectures
X
X X
X
X
phase 4
architecture
synthesis
PLM vision
PLM architectures
PLM roadmap
X
X
X
PDM/PLM
roadmap
Process
System
Organization
Different data
models for CAI
Different data
models for CAD
Role
Functionailty
Role 1
Role 2
Role 3
Role 4
…
Functionality 1
Functionaltiy 2
Functionaltiy 3
Functionaltiy 4
Functionaltiy 5
Functionaltiy 6
Functionaltiy 7
Functionaltiy 8
Functionaltiy 9
Functionaltiy 10
…
Process 1
Process 2
Process 3
Process 4
Process 5
Process 6
…
Layer
Process
Autoren -
systeme
TDM PDM ERP
Data model for
PDM
Datenmodelle
Data model for
ERP
Department
R&D
Department
Product Development
Department
Production Planning
Different data models for CAE/SE
Department
QM
data models for
CAP
data models for
CAM
data models for
CAQ
CAI CAD CAE CASE
CAP CAM CAQ
Autoren -
systeme
Department
IT for Engineering A
Department
IT for Engineering B
Department
IT for Production
TDM PDM ERP
Department
IT for
Engineering A
Organisation
Smaragd
Smaragd
Smaragd
CAI CAD CAE CASE
CAP CAM CAQ
Autoren -
systeme
Aktivität
TDM PDM ERP
IT-Systeme
File Server
DOORS
Excel
Dialog E/P
iPPE- SAP
Smaragd
Prisma
V5 SOA
Windchill
CATIA
ProE
Smaragd
Prisma
V5 SOA
Windchill
CATIA
ProE
Dialog E/P
iPPE- SAP
Smaragd
Prisma
System A
System B
System A
System B
Dialog E/P
iPPE- SAP
Prisma
Delmia
System C
Delmia
System C
Dialog E/P
iPPE-SAP
Prisma
System D
System E
System D
System E
CAD CAE CASE
CAI CAP CAM CAQ
Prisma
System F
System G
System F
System G
Autoren -
systeme
Aktivität
TDM PDM ERP
Aktivität Aktivität
Aktivität
Aktivität
Aktivität
Aktivität
Aktivität Aktivität
Aktivität
Aktivität
Aktivität
Aktivität
Aktivität
Aktivität
Aktivität
Aktivität
Aktivität Aktivität
Aktivität
Aktivität
Aktivität
Prozesse
Aktivität
Aktivität
Aktivität
Aktivität Aktivität Aktivität
Aktivität Aktivität Aktivität
Aktivität
Aktivität
Aktivität
Aktivität
Aktivität Aktivität
Aktivität
Aktivität
PLM Schichten
CAD CAE CASE
CAI CAP CAM CAQ
Produktlebenszyklus
X X
X
X
X
X
X
X
X
X
X
X X
X
X X X
X
X X
X
X
X
X
X X
X
X X X
X
X
X
X
X
X
PLM Matrix
…
BOM ERP/MRP
PDM PLM Backbone
TDM
Authoring System
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 20

Product Lifecycle Management
Complexity of Products and Processes Integrated Holistic Concept Conclusion
Alternative System Architecture ECM
Institute for Virtual Product Engineering
Different site specific ERP instances
ERP
PDM/PLM
Backbone
Engineering Change Management
Defined process driven Interface
TDM
Systeme
Open, flexible, departmental or discipline oriented implementation
Authoring
Systems
Project Mgmt. Req. Mgmt. M-CAD EE-CAD SW/CASE Office ……..
Publication Execution Synchronization
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 21

Product Lifecycle Management
Complexity of Products and Processes Integrated Holistic Concept Conclusion
Human Factor
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Think about the Following Scenario…
- … you have the perfect PLM solution - in your eyes…
Timeline met
Budget met
System and its interfaces
are working
- … but the users don’t make use of the system yet!
What could be the reasons for this?
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 22

Product Lifecycle Management
Complexity of Products and Processes Integrated Holistic Concept Conclusion
The Reasons can be manifold…
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- System causes more – or new –
work procedures.
- Common behavior needs to be
changed.
- Personal expectations are not met.
- Users don‘t know how to work with
the system.
- A general resistance to changes
- Transparency of knowledge and/or
behavior.
- System does not help to fulfill
business goals…
- Management awareness not
existent
Good news: Most of this can be
covered with Change Management
– from the projects beginning on!
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 23

Product Lifecycle Management
Success Formula for PDM/PLM Introduction
Complexity of Products and Processes Integrated Holistic Concept Conclusion
Institute for Virtual Product Engineering
- Analysis of Change Management needs for the PDM/PLM project
- Make sure that the system meets your business needs!
- Implement and live! a consequent project management
- Clear definition of project goals, requirements and scope of the system
- Solide consensus about project goals between business and IT
- Involve key people (Users and Management)
- Make the system as less complex as possible and as complex as needed – focus
on essentials!
- Realistic information and communication! Less is more…
- Plan the system implementation with information, training and multipliers in the
business
- Evaluate the implementation and learn from it!
- Mistakes are ok if you learn from them!
S = 100E + 100P + T
Source: Bowler | Rhode (1995)
S = Success in implementing a system
E = Empowered trained and motivated people
P = Having defined the processes
T = Particular technology
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 24

Institute for Virtual Product Engineering
ProSTEP iViP Symposium 2009
Why PLM Projects
(still) fail
… an engineered
representation!
…
Product Lifecycle Management – What do we talk about?
Complexity of Products and Processes
No solution so far? – One integrated holistic concept
VPE Conclusion – „Für Produkte und Prozesse von Morgen“
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 25

Product Lifecycle Management
Complexity of Products and Processes Integrated Holistic Concept Conclusion
Conclusion
Institute for Virtual Product Engineering
Processes are more important than Technique
Human factor are as important as Processes
Technical and “political” balance of the System Architecture
Management Awareness absolutely necessary
ROI Calculation not only before implementation
To plan the “Elephant” but to execute thin slices
80% result with 20% effort is good
No “over customization”
No “over organization”
Guarantee upward compatibility
Guarantee Acceptance
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 26

Thank you for your kind attention!
Institute for Virtual Product Engineering
Prof. Dr.-Ing. Martin Eigner
Head of Institute VPE
Contact:
Institute for
Virtual Product Engineering
University of Kaiserslautern
P.O.Box 3049
67653 Kaiserslautern
Germany
Prof. Dr.-Ing. Martin Eigner ProSTEP iViP Symposium 2009 Slide: 27