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Trends

Strati1

3D printing is buzzing trend these days. If you are not up to speed with the trend, you probably should. Because it changes everything around. Start today from Wikipedia article about 3D printing (aka as additive manufacturing). Today’s announcement about GrabCAD acquisition by Stratasys- leading 3D printing company is another confirmation about important role additive manufacturing will play in the future. The following video is a recording of Autodesk CEO Carl Bass about 3D printing topic - The future of how things are made.

3D printing is changing the way we are going to manufacturing products in the future. This is, of course, very high level statement. It is interesting to go down and see the impact in bits and bytes. For example, how it will impact product structure, or how it will impact product data management or manufacturing planning. You probably don’t associate these two things, but additive manufacturing is changing the product structure and everything that related to that. It certainly impact BOM management too.

My attention caught by the following Engineering.com article – Autodesk and Local Motors Collaborate on First Spark 3D Platform Implementation. The article speaks about collaboration between Local Motors and Autodesk about first large scale industrial implementation of Spark. I found the following passage quite provoking:

According to Local Motors, the Strati simplifies the automotive assembly process and is a result of leveraging the contributions of community, advanced manufacturing tools, and software, like the Spark platform. This could bring many advantages, including reduction in the number of parts in a vehicle’s Bill of Materials (BOM) from 25,000 components to less than 50. The on-demand nature of 3D printing means that automotive manufacturers can change aspects of their design—or even come up with an entirely new one—with little or no additional cost in tooling or time.

The complexity of modern car is skyrocketing. Hardware is part of a complex one element of that. Others – electronic, software are playing significant role. In the past car was a pure mechanical beast. Today, it is a combination of hardware and software on wheels. Who knows, maybe in few years, we will see car bill of material very similar to computer today – few mechanical pieces and lot of software. With changing balance between hardware and rest of car elements, the focus can shift towards multi-discipline product structure.

What is my conclusion? The complexity of products is changing. It is important to see trends. While overall complexity of manufacturing products (cars included) will grow, we might see a decrease in manufacturing complexity of hardware as a result of new manufacturing methods – additive manufacturing (3D printing) will pay a key role here. At the same time, the complexity of multidisciplinary product structure (BOM) will grow. Just my thoughts…

Best, Oleg

Picture credit to ENGINEERING.COM article.

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plm-epr-integration-analytics

The aim of PLM is to improve product development processes and lifecycle. One of the biggest challenges to make it happen is to deal with disparate enterprise applications and tools. The cost of system integration is high and many companies are not ready to make an investment in integration projects that will have a questionable ROI.

PLM-ERP integration is probably one of the best examples of integration projects with complex software, technologies, business dependencies and corporate politics. PLM and ERP vendors are often locking customer data and control access. It prevents customers to make a right decision to integration PLM and ERP. Few years ago, I covered it in my blog – The ugly truth about PLM-ERP monkey volleyball. I don’t think the situation is better since I posted it back in 2010. PLM-ERP integration projects are messy combination of requirements, technologies, tools and specific customer-oriented services. It usually ends up with a number of Excel and XML files flying around between PLM, ERP and other systems (including email). No surprise, companies are not read to move fast and engage into PLM-ERP integration projects.

I’ve been thinking how to change a trend of complex PLM-ERP implementation with slow ROI. Maybe to focus on transferring data between systems is not a first priority (even if it looks like the obvious one)? What can be done these days differently, so it will allow to come with a new definition of PLM-ERP integration value and maybe faster ROI from these projects? Here is the idea I wanted to share – analytics.

I have to admit, talks about data analytics are everywhere these days. It is hard to undervalue the importance and opportunity of big data. However,  I want to take it beyond traditional technological level.  Think about PLM and ERP applications. With significant functional overlap, companies are often see a high level of competitiveness between them. What if we can bring new capability of capturing data and making analytics into two sources of information – product lifecycle data and ERP. Can we change a trend of data competitiveness into trend of value of analytics?

Here are couple of scenarios that in my view can produce some useful analytic use cases by mixing data coming from PLM and ERP. Let me call it – lifecycle analytics. Think about NPD (new product development), but it can apply to existing products as well. Forecasting is an important step in every project, especially when it comes to a new product design and development. I can see multiple aspects of forecasting. What if I can create a forecast for entire lifecycle cost of the product. Another emerging need today is compliance forecasting. With growing number of regulation requirements to forecast compliance cost for a new product can be a challenging task. Related to that comes the need for recycle cost.

My hunch data for analytics and forecasting is available in both PLM and ERP system. It is on the crossroad between, sales, manufacturing and product engineering. To get data out of these systems and create an appropriate analytics can be an interesting, but challenging process. I think, the number of companies doing it as mainstream activity is very low, but demand should be huge.

What is my conclusion? To switch from data ownership debates into data analytics can be a way for both PLM and ERP vendors to come out of clash and competition. Enterprise databases (PLM and ERP are good examples to that) are holding a very valuable data that can be used to support decision making and provide a way to optimize product development processes. The potential for lifecycle analytics using data from both PLM and ERP systems can be significant. The development of specific analytical application can be an interesting task for existing vendors and new companies. Just my thoughts…

Best, Oleg

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Will future PLM order parts for makers?

by Oleg on September 9, 2014 · 2 comments

makers-plm-order-parts

Have you heard about “makers”? If you are in manufacturing business, you probably should pay attention to that. You may hear about “makers movement” these days as a new industrial revolution changing the way people are making stuff. I can recommend you Chris Anderson’s book to read more about that.

New digital technologies are going to change the way we design and manufacturing products. It appears today largely as a new group of manufacturing entrepreneurs, startup companies and small manufacturing firms. PLM vendors are not very successful in providing solutions for SME companies. Historically it was a tough call for PLM vendors. It was too competitive and confusing with major PLM business – large OEMs and suppliers. With new manufacturing eco-system, the situation is getting very interesting. One of the objectives of PLM is to help company to innovate and delivery new products fast. It sounds like a very compelling reason for new manufacturing startups. Read my earlier blog – Why Kickstarter projects need PLM? This is an opportunity for new PLM solutions. However, it looks like something that PLM vendors are missing for the moment – PLM and Manufacturing Startups: Potential Mismatch? We have a complexity of new manufacturing products, multiplied by a complexity of new type of manufacturing processes. It looks like an existing enterprise software doesn’t fit very well a new and growing eco-system of manufacturing companies.

Let me take an example of PLM and ERP system breakdown. The traditional split between PLM and ERP is usually presented as “innovation vs. transactions”. PLM system is responsible for engineering part of the business and takes hands off from ordering  by moving business process to ERP. This is works well for traditional manufacturing companies. However, PLM v ERP interplay is a very challenging and complicated process in every company.  Would it be the same for new type of manufacturing entrepreneurs? This is a good question to ask… I’m pretty sure that new manufacturing companies can question a need to have multiple systems- they will be looking for some sort of intelligent online solutions that can easy interplay together and cover both engineering and manufacturing piece.

My attention was caught by Fortune article – In B2B e-commerce, Alibaba has solved the one problem Amazon can’t. Read the article. I found it very interesting. It is not about PLM. However, I captured a passage that speaks about B2B and supply chain communication.

But there is one true giant in the category: Alibaba, the Chinese retail darling that last week revealed plans for a $21.12 billion initial public offering, which has dominated in B2B e-commerce. I was reminded of this over the weekend while listening to Planet Money’s entertaining explainer of the Alibaba wholesale market. Through Alibaba.com and 1688.com, the company provides to people everywhere access to the Chinese supply chain. This means tinkerers, builders, entrepreneurs, and small businesses can order custom motors and parts from Chinese factories without having to travel there, find a scout, and forge a relationship with a manufacturer before doing business. It opens up the world of international suppliers to people who wouldn’t normally have access to it. They can buy in bulk through Alibaba, which acts as a trusted third party, vouching for the transaction.

It made me think about a potential of PLM software to get connected to online e-commerce systems to process  orders and even more- optimizing product design and engineering solution based on that. It probably sounds crazy. However, who knows… Many things that we knew as a separate parts in the past, now unified as a single products. Think about iPhone, which replaced many existing devices. Today’s Apple Watch and Apple Pay announcements are hinting about future transformation of well-known habits. There are some other examples as well.

What is my conclusion? I like to quote Mark Andreessen for the conclusion – “Software is eating the world”. There are lot of traditional system breakdown that are going to be transformed and disappear in the future. What looks like a right split between product innovation (PLM) and order-transaction (ERP) today, can be challenged in the future. So, who knows? Maybe tomorrow PLM systems will order parts from Amazon B2B e-commerce web services? Just my thoughts…

Best, Oleg

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The end of debates about out-of-the-box PLM?

September 8, 2014

PLM implementation discussions are usually brings lots of controversy. Vendors, analysts, advisers, service companies, customers are all involved into implementations. It brings different and, sometimes, conflicting interests. In my view, one of the most debated topic in PLM implementations is related to so called ability to implement “PLM Out-of-the-box”. I’m not sure who first used […]

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PLM Chat and Twitter Product Checklist

September 4, 2014

Collaboration is critical functions in PLM applications. To unlock the potential of social collaboration for engineers is a dream of PLM vendors for the last few years. At the time people may see Social PLM DOA, I don’t see the opportunity to improve communication and collaboration as a lost one. We certainly passed what I […]

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PLM revenue model comparison

September 3, 2014

These days,  innovation is coming not only in technologies and products, but also to business models. We are observing one of the most significant shakeouts of business models in enterprise software. Companies want to buy software differently and it is obviously raising many questions in front of established PLM vendors and startup companies. What is […]

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Do we need PLM walkie-talkie?

August 28, 2014

Continue the topic of efficient communication started yesterday about future of the email for engineers, I want to speak about some other interesting alternatives engineers can use to stay connected and work together. Instant messaging is crazy popular. We use it everywhere. Last year I posted about opportunity to develop instant messaging app for enterprise […]

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Why unbundle 3D is hard for PLM vendors?

August 26, 2014

Unbundling is an interesting trend in many industries these days. It is relatively new marketing and business activity that helps to create new business offering, packages and product configurations. In many situations “unbundling” is a disruptive factors in many industries. Here is how it explained in Wikipedia article: Unbundling is a neologism to describe how […]

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How PLM vendors can find mobile moments

August 25, 2014

People are getting crazy about mobile apps these days. We are spending more time on our mobile devices. Nobody will argue about importance of mobile. We can see different mobile strategies among PLM vendors. At the same time, for most of them “mobile” is about developing “same version” of PLM suite, but for mobile device. […]

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How to reinvent engineering standard and references books?

August 22, 2014

I remember one of my birthdays back many years ago. My dad pushed me towards a bookshelf with kids encyclopedia and encourage me to study most of it for the next year. I found reference to these books on wikipedia now.  According to the information on wikipedia, it contained only ~6000-10000 pages. It was huge […]

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