plm-erp-death-of-thraw-over-the-wall-engineering

Do you remember “throw over the wall of manufacturing” statement? This is a traditional engineering world. Pretty much sequential. Engineers are doing their job and throw it over the wall to the next stage. Traditional manufacturing was driven by sales forecast. This is was the world that formed a traditional domains of PDM/PLM and ERP. The engineering job was a black box – product design delivered to manufacturing. Manufacturing people supposed to take design and make it work to production. The processes required lots of back and forth communication. The result you know –  skyrocketing cost of change requests, suboptimal design and after all production delays.

There are lot of changes in manufacturing environment these days. One of the most interesting example is growing number of smaller manufacturing companies / startups. I wrote about that few months ago in my post – Why Kickstarter projects need PLM? Today, I want to speak more about that. LineShapeSpace article – Manufacturing Inventory Management: How Much Inventory Do You Need? caught my attention. The question sounds obvious. However, article speaks about looking on inventory from completely different perspective – engineering and growth.

Growth is an essential part of every startup. This is probably one and the most important goal to stay focused on. However, the specific part of manufacturing company is the cost of parts and size of the inventory. To hack the growth path is not simple. To go on the wrong path means to literally to die. Here is my favorite passage from the article

This mismatch is expensive. It usually means high inventory carrying costs while you chase down a lot of little customers and invest resources into getting—and keeping—their relatively small orders. The inverse relationship impacts cash flow and energy level significantly, as well as your ability to feed yourself. Long term, this kind of business will most likely be a hobby, not something that sustains you, absent significant investment or luck.

In order to develop a successful product and find a right inventor path, you need to re-think a traditional engineering-manufacturing process. No more over the wall process. You need to design for optimal manufacturing, sourcing, inventory and many other factors. Which means engineering and manufacturing team to work together. My hunch, there is no traditional PLM/ERP boundary any more. Here is another quote to emphasize that:

“We used every fancy prototyping technology, investigated multiple production scenarios, and ultimately landed our production with great manufacturing partners near Hong Kong…utilizing ‘traditional manufacturing’ for production [was] an ordeal to set up, but yields quality, repeatable parts thereafter. The decision to move at this scale of production required that we grow a global sales and fulfillment network.

That wasn’t exactly an ambition for a first our product…but it’s certainly an interesting, if occasionally harrowing, game.” The takeaway from all of this? Do your best to match the inventory risk to your channel risk. It’s a lot easier, faster, and cheaper to go back to the design drawing board than it is to return a container ship to China.

What is my conclusion? We are going to see the world of manufacturing changing in front of us these days. It may change (and probably already changing) the traditional engineering, production planning and manufacturing boundaries. What was true in an old PLM/ERP world will change. The new forms of manufacturing will require re-thinking of current software. Interesting time for PLM and ERP analysts, product managers and vendors. Just my thoughts…

Best, Oleg

Share

0 comments

security-plm

Security. It is hard to underestimate the importance of the topic. Information is one of the biggest assets companies have. Data and information is a lifeblood of every engineering and manufacturing organization. This is a key element of company IP. Combined of 3D models, Bill of Materials, manufacturing instructions, suppliers quotes, regulatory data and zillions of other pieces of information.

My attention caught Forrester TechRadar™: Data Security, Q2 2014 publication. Navigate to the following link to download the publication. The number of data security points is huge and overwhelming. There are different aspects of security. One of the interesting facts I learned about security from the report is growing focus on data security. Data security budgets are 17% as for 2013 and Forester predicts the increase of 5% in 2014.

forrester-data-security-plm

The reports made me think about some specific characteristics of PLM solutions – data and information classification. The specific characteristic of every PLM system is high level of data complexity, data richness and dependencies. The information about product, materials, BOMs, suppliers, etc. is significantly intertwined. We can speak a lot of about PLM system security and data access layers. Simple put, it takes a lot of specifics of product, company, business process and vendor relationships. As company business is getting global, security mode and data access is getting very complicated. Here is an interesting passage from report related to data classification:

Data classification tools parse structured and unstructured data, looking for sensitive data that matches predened patterns or custom policies established by customers. Classiers generally look for data that can be matched deterministically, such as credit card numbers or social security numbers. Some data classiers also use fuzzy logic, syntactic analysis, and other techniques to classify less-structured information. Many data classification tools also support user-driven classification that users can add, change, or conrm classification based on their knowledge and the context of a given activity. Automated classication works well when you’re trying to classify specic content such as credit card numbers but becomes more challenging for other types of content.

In my view, PLM content is one of the best examples of data that can be hardly classified and secured. It takes long time to specify what pieces of information should be protected and how. Complex role-based security model, sensitive IP, regulation, business relations and many other factors are coming into play to provide classification model to secure PLM data.

What is my conclusion? I can see a growing concern to secure data access in complex IT solutions. PLM is one of them. To protect complex content is not simple – in many situations out of the box solutions won’t work. PLM architects and developers should consider how to provide easier ways to classify and secure product information and at the same time be compliant with multiple business and technical requirements. Important topic for coming years. Just my thoughts…

Best, Oleg

Share

0 comments

bom-plm-excel-painkiller-1

We like to compare stuff. Gadgets, cars, hotels, software. We can compare iPhone to Samsung, Canon to Nikon, Honda to Toyota. Software is a special category. When it comes to enterprise software it gets even more complicated. However, marketing comparison is a fascinating type of writing. Arena PLM blog posted a marketing writing – Using Excel for Bill of Materials (BOM) Management. The article compares BOM management using Excel spreadsheets and BOM management PLM tools (Arena tools implied, which is okay). Read the article and draw your own conclusion.

I have special passion for spreadsheets. In my view, (and I know many of PLM analysts and bloggers will agree here) Excel is stands out as one of the most popular PLM software tool in the industry. I have my reasons to like PLM spreadsheets as well as list of my “hate statements” about Excel.

Arena’s article reminded me famous marketing stories about vitamins and pain killers. The first is “nice to have” and the second is “must buy now”.  I think the value of PLM tools is obvious. But… here is my little “but”. If I compare lists of values, cost and features in that article, I can not come to an absolute conclusion about advantages of PLM tools. It creates some mixed feeling. First, there is no line that says “no” to any of features you can do with Excel. So, basically, I can do everything with Excel, but not in an optimal way (means I won’t die :) tomorrow by keep using Excel).  Second, cost is emotionally on the side of Excel. It is very hard to compete with “free” that everybody can use. And, to switch to PLM tools, you need to change the way you work. Even this is not in the list, it implied when you compared “time to implement” between “immediate” and “days-weeks”. So, when you have organization using Excel and manages BOM, PLM is not in competition with Excel. This is another type of competition, which sales people often calls “competing with status quo”.

What is my conclusion? Few weeks ago, I shared my recipe how PLM can take over Excel spreadsheets. Here is the list of three recommendations – flexible data models, easy customization and excellent user experience. I’d like to add pain killers to the list. This is something that PLM is still missing in competition with Excel. The comparison should have “no/yes” notation. Today’s “poor/excellent” is still has a flavor of vitamins. PLM implementations are still hurting people and lose in the comparison to initially glamorous Excel spreadsheets. Engineers are spending too much time managing Excels, but the cost is hidden and not obvious to managers to step into longer implementations, higher cost and slow learning curve. Just my thoughts…

Best, Oleg

Share

0 comments

Part Numbers are hard. How to think about data first?

July 28, 2014

One of the topics that usually raises a lot of debates is Part Numbers. One of my first takes on the complexity of Part Numbers was here – PDM, Part Numbers and the Future of Identification. Ed Lopategui reminded me about that topic in his GrabCAD post – Intelligent Numbering: What’s the Great Part Number […]

Share
Read the full article →

PLM vertical PaaS strategies

July 25, 2014

SaaS, PaaS, IaaS, DMaaS, … I’m sure marketing folks are having lots fun of new xaaS acronyms. The amount of publication about various strategies of services is skyrocketing. EDACafe article  - The Platform-as-a-Service Provides European Aerospace & Defence OEMs and Partners with Greater Collaboration Capabilities brings a story of “AirDesign” – the European aerospace and defense […]

Share
Read the full article →

Who will make PLM sexier?

July 24, 2014

Cool factor is trending in software these days. The time when software was ugly is probably in the past. Everyone wants to have a “cool app” – on the picture above you can clearly see the trend. Does it apply to enterprise software and PLM? It is a good question. Back in 2012, I asked […]

Share
Read the full article →

How to re-think activity streams for enterprise?

July 23, 2014

These days manufacturing businesses are more connected than ever before. Every manufacturing company (even smallest startup) has a tremendous need for collaboration – help multiple engineers to get involved into the design process, communication with suppliers, plan manufacturing processes, etc.  Social networks and open web inspired many companies to develop collaboration software that mimic consumer […]

Share
Read the full article →

PLM implementations: nuts and bolts of data silos

July 22, 2014

Data is an essential part of every PLM implementation. It all starts from data – design, engineering, manufacturing, supply chain, support, etc. Enterprise systems are fragmented and representing individual silos of enterprise organization. To manage product data located in multiple enterprise data silos is a challenge for every PLM implementation. To “demolish enterprise data silos” […]

Share
Read the full article →

Cloud PDM can make file check-in and check-out obsolete

July 21, 2014

Management of CAD files (PDM) is heavily associated with desktop workflows. Lots of CAD files live on engineering desktops and shared company network drives. Originally, one of the main PDM functionality was to vault CAD data and manage CAD files revisions. One of the most widely used scenario to support this functionality is so-called Check-in […]

Share
Read the full article →

Why PLM shouldn’t miss next email move?

July 18, 2014

Email is a king of communication in every company. Many companies are literally run by email. People are using it for different purposes -notification, collaboration and very often even record management. You can hear many discussions about how companies can replace or integrate email with enterprise and social collaboration tools. I captured some of them […]

Share
Read the full article →