A blog by Oleg Shilovitsky
Information & Comments about Engineering and Manufacturing Software

How PLM can Remove Business Waste?

How PLM can Remove Business Waste?
Oleg
Oleg
17 September, 2010 | 2 min for reading

I’ve been attending Technia PLM Innovation Forum early this week in Stockholm. My conclusion from this forum is that all organizations are looking how to optimize their performance. The organizational objective is to keep their margin model. The margin model is something that very fundamental to every organization. To change margin model is one of the most complicated changes. In order to keep margins, organizations need to find ways to optimize business characteristics that can help them to keep this margin model in changing outside conditions. One of the possible ways to do is to review your wastes? Waste removal has a direct implication on margin model and overall profitability of an organization. Can PLM help you to improve your situation and help to remove your Business Waste? I identified three potential business wastes that can be handled by a successful PLM implementation:

Process Inefficiency
The bad process organization can kill any organization. How to optimize? A lot of business wizards and software geeks are trying to resolve this problem. A whole discipline – Business Process Management and Optimization was developed to handle it. However, the successful process implementation is a very complicated task. PLM implementations can bring pain relief in this space. Look on the following few pics. Processes is really complicated story:

However,  the focus on how to make process implementation more dynamic is very important. Future will not be well-defined. In the future we will need to face ad-hoc process optimization. This is going to be a big deal for PLM vendors. 2-3-year implementation plans are not an option anymore.

Increased Cost
To manage cost is very complicated task. However, to understand a cost is extremely important. What tools can help you to do it? ERP and other financial tools are controlling 20-30% of cost. Rest is defined during product designs. Can PLM help? Definitely! To have cost-related decisions embedded into a product development process, can be a next frontier for PLM implementations.

Low Productivity
The last, but very extremely important. There are two aspects – organizational productivity and personal productivity. PLM is mostly focusing on organizational productivity these days. Team collaboration, data management and access. However, PLM Is under-serving personal productivity segment. This is where I can see the next focus. To improve personal productivity, we need re-consider lots of things – data availability, devices and mobility, flexible process changes, etc. This is a big think, in my view.

What is my conclusion? Coming decade is going to change a lot in the business of many companies. The question how to improve productivity and remove waste becomes more and more important. Will PLM companies be able to propose solutions to solve these problems? A very good question. I have no answers today.Do you?

Best, Oleg

Recent Posts

Also on BeyondPLM

4 6
5 October, 2015

Everyone likes innovation. It gives you good feeling and brings the whole power of imagination into your brain. If you...

25 July, 2016

Data is a new oil. Fortune article explains in a nutshell why big data analytic and AI research are booming this...

1 October, 2012

I’m in UK these days. Everything is on the wrong side :)… So, I decided to start from an unusual...

25 July, 2017

My recent discussions about adoption of Product Lifecycle Management in different segments of manufacturing industries made me think that status...

27 January, 2021

Unless you lived under the rock for the last several years, you’ve heard about SaaSification. This funny term was changing...

22 October, 2014

How do you move to the cloud? This is one of topics I’m discussing on my blog for the last...

10 April, 2011

Slow down… Facebook is not creating PLM yet. Facebook is growing their infrastructure. I read about Facebook Open Compute project....

31 August, 2009

I’ve been reading blog post by Deelip related CATIA and SolidWorks and thought what can be the final solution for...

10 December, 2011

One of the biggest problem I can see in all PDM / PLM tools is a high level of the...

Blogroll

To the top