Defining a PLM Business Case to Gain Executive Support Our Overall Approach Approach – Assessment Phase Approach – Improvement Phase Q & A

Defining a PLM Business Case to Gain Executive Support Our Overall Approach Approach – Assessment Phase Approach - Improvement Phase Q & A www.phwiki.com

Defining a PLM Business Case to Gain Executive Support Our Overall Approach Approach – Assessment Phase Approach – Improvement Phase Q & A

Perry, William, News Director has reference to this Academic Journal, PHwiki organized this Journal Defining a PLM Business Case to Gain Executive SupportJeff Pohl, Product Development, Deloitte Consulting LLPJune 4th, 2015Deloitte Consulting offers 360º services to address our clients’ strategic in addition to operational challenges in product developmentDeloitte’s Lean Engineering & PLM ServicesOur ServicesOur Tools & AcceleratorsMajor challenges facing the industryMajor challengesFactorsLimited Engineering capacityEngineering capacity requirements continues to grow across industries, e.g. Aerospace, Automotive, etc.Required engineering skills as long as new processes in addition to tools not availableDeeply skilled Engineers are retiring in addition to new talent is hard to findIncreased leverage of external service providersIncreasing complexity in EngineeringIncreasing amount of electronics in addition to software Shorter lead times in addition to development cyclesFocus on innovation with new technologies, materials, etcGrowing network of interactions with internal in addition to external parties (customers, partners, suppliers, matrix organization)Concurrent development programs in addition to a Lack of early cross-functional involvementMultiple interface integrationsUnstable input in addition to shifting time framesDelay of input data from customer e.g. product definitionShifting schedules from program partnersIncreasing complexity of interactions with ManufacturingDeclining Engineering BudgetsR&D spend as a percentage of revenue has been falling this decade after consistent growth in the last centuryExecutives question the return on their investments from engineering organizations

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Our Lean Engineering trans as long as mation capabilities have proven to be effective as long as a wide spectrum of clients with varying product complexityHighly Engineered Products in addition to ConstructionEngineered to Order Products Configured to Order ProductsBuild to Stock Products GE Power PlantWestinghouse NuclearLockheed SpaceBell HelicopterSpiritAero SystemsGE TurbinesCobhamMarvin EngineeringCaterpillarNissanJCI Auto InteriorsPratt in addition to Whitney Canada Vitamix (Kitchen Appliances)MTD (Lawn Mowers in addition to Garden Equips)RevlonCokeMonster CableOur Lean Engineering trans as long as mation approach focuses on addressing gaps in Process, Technology, in addition to Org Design to free up between 15-30% engineering capacityOur Overall ApproachOur trans as long as mation approach has helped numerous clients reduce time-to-market, improve engineering efficiency, in addition to increase profitability The Assessment quickly identifies the areas most critical to improving per as long as manceThe Assessment PhaseMonths, Not YearsAssess ImproveWeeksFinalize ScopeEngineering StrategyOperational ExcellenceOrganization in addition to TalentPLM TechnologyImprove quality in addition to traceability of in as long as mation. Integrate execution to improve flow across silosBolster the operational structure, governance, competencies, skills, in addition to talentLean business processes in addition to aligned roles, in addition to responsibilities across product areas in addition to functionsImprove the engineering strategy in addition to operating model; innovation in addition to growth strategyIdentify the critical areas as long as improving per as long as mance in addition to develop roadmapDefine in addition to deploy specific improvements across people, process in addition to technologyChange ImperativeDeploy

Approach – Assessment PhaseOur 6-12 week assessment involves a rapid but integrated assessment of engineering processes, tools, organization in addition to talent related barriers Engineering Trans as long as mation Strategy AssessmentStep 1Vision & ObjectivesStep 2Assess Current StateStep 3Define Future StateStep 4Build Implementation Roadmap in addition to Business CaseDeveloping a business case requires a clear underst in addition to ing of the overall vision, objectives in addition to goals. A Detailed vision in addition to objectives as long as m the foundation to guide the development of the roadmap in addition to supporting business caseStep 1: Future Vision & ObjectivesThe Lean Engineering Assessment project shall achieve the following goals :Significantly improve the effectiveness in addition to efficiency of engineering capabilitiesStrengthen global delivery by integrating the core processes in addition to organization that is cost effective in addition to caters to dynamics of footprint in addition to budgetAccelerate development of skills in addition to hiring plans based on identified core competenciesProvide the right in as long as mation, at the right time, as long as the right peopleIntegrate the extended enterprise’s in as long as mation resourcesFuture state vision & objectivesUse enterprise-wide systems to strategically drive global common business processes using global common data

We evaluate the current state of each of the core capabilities, benchmark against best-in-class in addition to identify the root causes of inefficiencyStep 2a: Assess Current State CapabilitiesCurrent state assessment as long as each of the core capabilities20+ core capabilities identified with best-in-class assessmentFuture state maturity goalThe engineering churn analysis depicts the magnitude of “as is” inefficienciesStep 2b: Engineering Efficiency (Quantitative)Engineering Efficiency AnalyticsActual resource allocation in addition to change data as long as representative program(s) is used to determine the magnitude of inefficiency in the current stateA representative component or sub-system is assessed using our Lean Value Stream mapping tool to identify the root causes of inefficiencies Typically utilizing reconfigured processes can reduce churn in development, in addition to free up 10-20% of the engineering capacity.Typically, churn in core product development processes is caused by limitations in:Management in addition to planningDesign processes in addition to disciplinesDesign tools in addition to systemsChief among these causes are unexpected content growth in addition to poorly coordinated or late design changesChurn can often be managed via adjustments to existing processes in addition to systems coupled with leadership recognition of it as a major competitive issueStep 2b: We per as long as m deep fact based analytics. One Example: Engineering Churn AnalysisDesign resource consumption patterns can also reveal churn ( in addition to quality risks) as designs are reworked to completion Managing ChurnEngineering ResourcesChurn caused by unnecessary rework in addition to change can be reduced through practical improvements to engineering processes in addition to tools. To underst in addition to the root cause of churn, engineering changes in addition to resource data need to be analyzed:ILLUSTRATIVEILLUSTRATIVE

Traditional process mapping masks the actual behavior of the processWork configuration mapping reveals:Multiple dimensions of workNumerous transactions/ h in addition to -offsDisjointed flow of in as long as mationStep 2b: Another example is value stream analysis to depict Operational ComplexityReconfiguration design involves:Workflow changesPolicy changesOrganizational alignment Physical work locationValue Stream MappingValue Stream ReconfigurationAdditionally, organizations need to employ a more rigorous value stream analysis technique to reveal work configuration complexity in business processes. Reductions to operational complexity in addition to cost are easily visualized in addition to quantified.Traditional View of Engineering Workflow (10 Steps) Actual Workflow (63 Steps) Software Development Assessment will focus on the processes, practices in addition to tools in place to partition, develop, configure in addition to release software, in addition to the integration points to hardwareSoftware development lifecycle in addition to configuration managementSoftware stacks, design in addition to reuseHardware-Software IntegrationOpportunities as long as incremental in addition to trans as long as mative improvements in core developmentStep 2c: Assess Current State – Software Development AssessmentAnalyze future state vision in addition to goal’s impact on current state technology map.Analyze how the current state can be simplified future state systems l in addition to scape by replacing multiple legacy PLM in addition to ALM systems with enterprise-wide st in addition to ard tools.Future state vision & goalCurrent implemented technologyAnalyze the implemented technologies to create a clear assessment of data flow in addition to system touch points.Final StatePhase – 2Phase – 1Future state technology roadmapClear underst in addition to ing of current technology l in addition to scape is important to drive the future state technology transition plan – key to underst in addition to data flow in addition to touch points.Step 2d: Assess Current State – Engineering IT Applications Assessment

A clear underst in addition to ing of the current organizational structure, governance, in addition to the overall operating model as long as product development leads to developing options as long as the future state. Balancing flexibility in addition to efficiency is critical in this exercise.CorporateE&SIDILMSServicesRegional Model by PBUGlobal Model by PBU in addition to OEVertical Global Model by OERegionalizedVertically AlignedETPTNAEuropeETPTEOSCompetenceVendorsPMO/HRCorporateE&SIDILMSETPTEOSCompetenceVendorsPMO/HRStep 2e: Assess Current State – Organizational Structure in addition to Talent ManagementBased on vision, objectives in addition to assessments define improvement initiatives, recommendations in addition to future state process/technology map to close the gap between as-is in addition to to-be state. Step 3: Define Future State Initiatives & RecommendationVision & ObjectivesCurrent State AssessmentsFuture State Process, Technology in addition to Organizational MapsThe assessment phase of the project culminates into a detailed roadmap in addition to business case that identifies the quantitative in addition to qualitative benefits of the improvement initiatives. Identify Improvement opportunitiesDefine baseline as long as improvement opportunitiesRefine by comparing against industry benchmarksUse conservative benchmarks to leave potential upsideEliminate double counting in addition to refined benefit calculations with feedback from functional SMEs Sequence improvement benefits to roadmapExtrapolate benefits across all programsValidate benefits with Functional SMEs in addition to StakeholdersEnter benefits into Financial Impact Template to analyze benefits in addition to document assumptionsDetermine ROIIdentifyRefineDefine & ValidateAnalyzeBusiness CaseCosts in addition to benefits of each detailed recommendation are calculated to determine the total ROIStep 4: Build Roadmap in addition to Business CaseRoadmapThe roadmap provides a multiyear plan to develop the process, people, in addition to supporting infrastructure required to achieve PLM vision

Approach – Improvement PhaseFollowing the assessment, we help our clients execute their trans as long as mation roadmap by using our proven tools in addition to acceleratorsWe have developed a very integrated set of tools that are Teamcenter specific end-to-end Business Process Models from Requirements, BOM, Change, Documents Mgt. through Manufacturing Planning BOM ReleaseLevel 1 in addition to Level 2 Process MapsEngineering in addition to PLM Best Practices CompilationLevel 3 Process Maps Level 4 Sub activity in addition to roles mapsDetail Business Process & PLM requirementsConference Room Pilot “In-a-Box” Pre-defined set of unit, functional in addition to integration testing scripts Pre-defined Training MaterialsWhat is Deloitte’s PLM (DPLM) Pre-Configured SolutionDPLM is an “out-of-the-box” Pre-Configured Solution which is based on Deloitte’s deep experience in lean engineering, industry, process design, technology enablement, organizational change, in addition to program management.

Our process maps incorporate Deloitte’s lean engineering best practices in addition to include all major PLM processes to accelerate blueprintingDeloitte’s Pre-defined PLM ProcessesBlueprinting maps lower the levels of detail to activity maps, use cases, in addition to PLM activities Activity Map (Level 3)Sub-activities/Roles (Level 4)Roles & Resp.Roles & Resp.Roles & Resp.Roles & Resp.Roles & Resp.Roles & Resp.Roles & Resp.Metrics & DashboardMetrics & DashboardMetrics & DashboardMetrics & DashboardMetrics & DashboardMetrics & DashboardMetrics & DashboardTemplatesTemplatesTemplatesTemplatesTemplatesTemplatesTemplatesKey Design Decisions DPLM Process in addition to Technical RequirementsLevel 1Level 2 & 3 Process DetailsProcess DetailsProcess DetailsProcess DetailsProcess DetailsProcess DetailsProcess DetailsLevel 4Roles, Responsibilities, Metrics & TemplatesDesign Decisions & DPLM Req’sDeloitte PLM Process Models – Level 1 – 4 DecompositionDPLM is designed to help clients utilize our pre-defined PLM processes in an “Out of the Box” method where processes are st in addition to ardize in addition to mapped to 3DEversus customized. As we looked across the processes, methods in addition to tools we develop as long as out clients, ~80% of the core was largely similar We created DPLM that comes “out-of-the-box” with the 80% that captures best practices – across lean processes, configuration in addition to trainingThis allows our PLM experts to focus their attention on 20% that is truly unique to the client, as well as on integration to existing business processesThis 20% is where companies get the strategic/competitive advantageProvide clients with a ‘ready to use’ environment to feel in addition to play with the future state processes ValidateUser AcceptanceTraining Improve & IterateConfigure in addition to develop system configuration in addition to interfacesIterate To-Be Process & ToolConference Room Pilot 3 Initiate & IntegrateDPLM Processes & ConfigurationIdentify client-specific ‘Must Haves’Challenge region/BU process deviationsIdentify integration to other client processesConference Room Pilot 1 & 2 AssessAs-Is Deep DiveUser Buy-In in addition to AdoptionDPLM (80%)Unique(20%)

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DPLM offers efficient in addition to cost-effective PLM trans as long as mation as long as our clients30 % shorter implementation time40% lower implementation cost15% higher engineering efficiencyReduced PLM program risk in addition to risk of customizationAbility to see PLM processes from Day 1 that have deep Lean Engineering in addition to Best Practices embeddedQ & A

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