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John Stark Associates                                                                                                                                          July 21, 2014 - Vol16 #15

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The Great Recession Changed R&D Operating Environments
by Bradford L. Goldense
 
In the July 7, 2014 issue of 2PLM, the scope and focus of recent research on R&D Operating Environments, Organic Innovation, Open Innovation, Intellectual Property, and the Top Corporate Metrics used to measure R&D and Product Development was highlighted. In this second of a six part series, selected GGI findings on R&D Operating Environments will be discussed.

The study, entitled the "2014 Product Development Metrics Survey", was conducted by sending questionnaires to a wide range of companies developing products throughout North America. Participating companies had headquarters throughout the Americas, Europe, and Asia, but their response was for North American R&D-Product Development operations. Complete data sets were received from 200 companies. Consumer, industrial, medical, chemical, and automotive/vehicular products were the top respondent industries. Participants completed 31 questions across the five primary research subjects. The research period was September 2012 to October 2013. The results were published March 3, 2014 in a 138-page report. This research is statistically valid and provides a Margin Of Error for each research question.

Four R&D Operating Environment areas were researched: R&D-Product Development Strategy, Importance of Innovation, Centralization vs. Decentralization, and Facility Deployment. The first two of these areas were researched thoroughly in our 2008 study enabling a pre/post great recession analysis.

R&D-Product Development Strategy: True innovators don't change much, they are always about 5% of corporations. Platform-Derivative, Balanced Portfolio, and Follower/Extender make up the rest. When Platform strategies began in the early 1980s, they were new. By 2008 they had become the predominant strategy, overtaking Balanced Portfolio. In 2014, there was a large fall in Platform strategies; likely because short term thinking had to prevail in challenging economies. Balanced is again predominant. There was also a slight increase in Follower/Extender companies. "Fast-Follow Innovation" seems to be a strategy on the rise and may warrant a separate research category in the future.

Importance of Innovation: Since the works by Moore, Christensen, Chesbrough, and others in the mid-1990s and early 2000s, innovation has been on a steady rise as a corporate priority. Each time we have examined "corporate zest for innovation," it has increased. There is clearly great innovation momentum, as will be evidenced by the remaining articles in this series, but it is perhaps safe to say the crest of the wave of zest has passed. In 2008, almost half responded that innovation was "much more important" than five years previous. In 2014, only twenty percent said much more than five years previous. Not to worry though, ninety percent still say innovation importance has not changed or is still more important than it was five years ago. The tamer 2014 response likely indicates the embedding of innovation as a day-to-day priority, as happened with lean and six-sigma and other culture change improvements that lasted because of their merit.


 
Centralization vs. Decentralization: Companies with longevity go back and forth over the decades in their basic approach to management. in many parts of industry the swing is predictable in 7-10 year cycles. Globalization necessitated decentralization because local geographies inevitably gained say in many matters. GGI researchers felt the lasting economic challenges, coupled with the settling-in of global organizations for a decade or more now, likely would lead to some streamlining and belt tightening. We sought to understand the degree to which it occurred. Respondents were asked to contrast whether their R&D-Product Development practices today were more centralized or decentralized than their practices of five years ago. We found movement in both directions. About a quarter of companies have become less centralized, while near forty percent have become more centralized. A number of studies on global business practices published in the first decade of this century indicated that a more centralized philosophy increases the likelihood of positive financial performance. Corporations now seem to have a trend in that direction.

Facility Deployment: A change in central versus decentral management philosophy may or may not be indicative of whether a company has deployed additional or consolidated existing facilities in the same period. During the globalizing period, R&D laboratories and manufacturing plants were deployed in most new operating geographies, not just sales offices. In line with the hypotheses of our previous question, we sought to understand what had happened to physical facilities in this same time frame. Almost half of companies remained unchanged, but three times as many companies increased their number of physical locations compared to those that reduced them.

SUMMARY: Corporations have more conservative strategies and product portfolios in 2014 than they did in 2008. Corporate zest for innovation is also more reigned-in, but is still a top corporate focus. More companies than not are increasing the level of centralization of their management approach, while at the same time growing the number of physical R&D-Product Development centers.

For more information about Goldense Group Inc.'s (GGI) R&D, Product Development, Innovation, and Metrics research approach and topics, ongoing since 1998, please visit their research portal. Licensed pdfs of the 2014 findings and other research are available in GGI's iStore or through regarded distributors including Baker & Taylor and MarketResearch.com.

Bradford L. Goldense, NPDP, CMfgE, CPIM, CCP, president of Goldense Group Inc. has advised over 300 manufacturing companies on four continents in product management, R&D, engineering, product development, and metrics. GGI is a consulting, market research, and executive education firm founded in 1986. Brad writes a monthly column in Machine Design magazine for product creation professionals.


 
Progress with the PLM-IRF Proposal
by Killian Murphy
 
The PLM International Research Foundation (PLM-IRF) Proposal is moving along at a steady rate. Over 200 PLM researchers and scholars worldwide have been contacted, and many have already answered. One of the key aspects of the proposed foundation is a strong international base - hence over 50 countries from around the world have been contacted.

From the answers so far received, there seems to be a strong focus on making the PLM-IRF a strong, international body which should lead PLM research and potentially create PLM standards against which all PLM is measured. Furthermore, there seems to be a clear trend towards cloud-based technologies.

 
Another proposal is to focus on PLM as a methodology, and not simply as software implementation which seems to be a common misconception.

PLM researchers from around the world are invited to respond. If you have not been contacted but are interested in participating, please contact me. If you have already received an e-mail from me, but have not yet replied, then you have 2 more weeks to respond until the deadline.

 

You can contact me at killian.murphy@ifage.ch


 

PLM Research Papers
by Killian Murphy
 
The PLM Institute is a leading participant in PLM research and knowledge generation, which involves being at the forefront of all PLM related research. Furthermore, we pride ourselves on having strong international ties, and hence value input from all countries.

Modern day PLM research is generally carried out by a few universities and non-profit organisations investigating the various improvements PLM will bring to enterprises, as well as various improvements to PLM implementations. Other areas of research include ontologies and advanced functionality. This research, often created by Doctoral candidates or by university researchers, is key to remaining at the forefront of PLM innovations.

 
At the PLM Institute, we have selected research papers which push forward modern day PLM. These papers, which have all been published during the first half of 2014, can be found on one of our website pages.

If you believe one of your research papers, published in the first half of 2014, is missing from the list, but is noteworthy and should be included, please contact me at killian.murphy@ifage.ch where it will be reviewed for inclusion by the Institute.


 

 


The Compelling PLM Message
by Roger Tempest
 
America is the birthplace of 'Catch 22', and there is an interesting example that applies to American PLM.

It is now possible to establish comprehensive, accurate financial metrics for PLM. These will clearly show the benefits of implementing PLM, creating a compelling message to support new PLM projects.

But to establish real metrics, the PLM Team needs the enthusiastic support of colleagues to work collaboratively on PLM - and that won't happen until they are convinced by a compelling PLM message.

This makes the task of "establishing the PLM message" a central pillar of the American PLM implementation approach. It needs to be much more than simple internal publicity - the message has to be structured from the outset, and has to grow step-wise as the implementation moves towards its long-term Vision.


The PLM Financial Framework initiative has a structured methodology for this, that will be built into a completely new PLM Financial Handbook toolset for the American market. PLM Managers will be able to see how to use it at a new 3-day Workshop in the USA in September.

The dates and host location will be arranged to suit the participants. America is a big place, and feedback about good locations would be really useful. There is more information on the PLMIG web site, and if you wish you can let us know your preferences via the address below.

 

Roger Tempest is co-founder of the PLMIG. More information about the toolset or the workshop is available via financial@plmig.com.

 


PLM Citations  
According to Google Scholar, as of July 16, Product Lifecycle Management: Paradigm for 21st Century Product Realisation, the most popular PLM publication, had been cited 461 times in journal articles, technical reports, books and theses.

In recent weeks it has been cited in:

  • Citation #459; 4 July 2014; S. Dienst et al; Development of a Knowledge-based Feedback Assistance System of Product Use Information for Product Improvement Details
  • Cit. #460; 11 July 2014; A. Ebrahimi et al; Managing Product and Production Variety - A Language Workbench Approach Details
  • Cit. #461; 11 July 2014; E. Tekin; A Method for Traceability and "As-built Product Structure" in Aerospace Industry Details

Due to technological advancement, an increase in creating and storing digital data can be observed today, for instance throughout the product lifecycle. Through especially product use, a large number of data are created. The data are mainly used during the product use phase (e.g. condition-based maintenance). However, those data can be used as feedback to generate knowledge and support the product developer through improving future product generations. Development of a Knowledge-based Feedback Assistance System of Product Use Information for Product Improvement presents development and prototypical realisation of a feedback assistance system for the management, analysis and visualisation of feedback data. The system supports a product developer by improving the process of decision-making to discover development potentials. Thereupon, four modules have been developed to analyse related indicators statistically and to diagnose machine failures. The obtained knowledge about the current condition of machines should then be deployed to improve the next machine generations utilising the modules for decision support and prediction.
 

Product platforms are commonly used in industries with complex products and high competition like the car and truck industry to allow a customer to order a product that satisfy its unique needs. A consequence of product variety is that manufacturing and assembly processes need to deal with this variety as well. If the variety is low and changes of the product occur infrequently then the variety may be handled by designing the production system for a small set of typical products. But as the variety increases and changes become frequent the necessity for integrated product and production information model is high, to partially solve this problem Product Life Cycle Management (PLM) systems aim at providing an integrated model to all categories of users, e.g. product designers, product preparation engineers, line builders and shop-floor workers. The contribution in Managing Product and Production Variety - A Language Workbench Approach is to discuss how a new type of tool for building domain specific languages and editors using language workbench approach can be used to support the different user categories in their tasks working with variability of a product and production system while at the same time provide cohesion and traceability of information.

The complex aerospace manufacturing information management systems of the future will challenge the methods of maintaining "As-Built Product Structure" while there is an ongoing need to revise or modify products in production or service stages. As the whole supply chain of a product is considered, it becomes more complex to maintain the relations of the design data up to requirements, and the relations of the components down to serial numbers and lot/batch numbers. Establishment of these relations will provide traceability for the "to-be" information of the functions of the product and "realized" information of the parts/material of the product. A Method for Traceability and "As-built Product Structure" in Aerospace Industry presents a method of maintaining "As-Built Product Structure" through a manufacturing data management system for the whole supply chain.


 

Engineering Change Control
by Scott Cleveland
 
If you are a manufacturer, your ECR/ECO process is the most expensive process in your company.

Many studies have proven this to be true. I was at a customer site that hired one of the 'big 5' consulting firms to come in and discover their most expensive process. Their conclusion - it was the engineering change process. [No surprise there ....]

Interestingly, even if this process hasn't been documented, it is the most well-known process within a manufacturing company. Many of the PLM [product lifecycle management] companies have added business process management capabilities so that their software can address the engineering change process.

Many studies have shown that managing a paper based engineering change control process costs an average of $1,800 per change request. How do they arrive at that number?

Companies have administrative people, program managers or engineers that will manually move information [files, etc] from one person to another.

 
They will keep records showing the progress of the change request through the process. They will make sure that defined business rules are followed. They will schedule change control board (CCB) meetings and invite attendees. They will print out all of the documentation needed and distribute 'packets' before the meeting.

PLM software allows you to electronically perform these activities. It makes it possible to remove many non-value added activities. It makes it possible to eliminate many if not most CCB meetings. As an added benefit, ISO audits are a breeze.

If you do as little as 10 change requests per month, PLM software can pay for itself. I can help you with a return on investment (ROI) analysis. Contact me to learn more about PLM and see how it can help your company ....

 

Scott Cleveland can be contacted on +1 408-464-6387


 

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PLM News

sponsored by:   

                                    

Corporate

Dassault Systemes announced the acquisition of SIMPACK. Details

Stratasys Ltd. announced the completion of its acquisition of Solid Concepts. Details

 

Financial

SAP announced second quarter 2014 results. Total IFRS revenue was Euro 4.15 billion. Details 

People

ANSYS, Inc. announced that Robert Kocis has been appointed Vice President, Worldwide Sales & Support. Details 

Implementations

ANSYS, Inc. announced that the EPA has selected ANSYS simulation solutions to model in-cylinder combustion. Details

AVEVA announced that KBR has extended its utilization of AVEVA technology. Details

AVEVA announced that D3SCOM Engineering Sdn. Bhd. has adopted AVEVA Everything3D. Details 

Centric Software, Inc. announced that Etam Group has selected Centric Software, Inc. to provide its product lifecycle management (PLM) software. Details

Lectra announced that Duvivier Productions chose the Versalis solution. Details

Lectra announced that Aokang has adopted Lectra Fashion PLM. Details

Lectra announced that Odlo is implementing Lectra Modaris 3D. Details

Lectra announced that Bosideng has adopted a Lectra cutting room offer. Details 

Developments

ANSYS Inc. announced SCADE System 15.2. Details

BETA CAE System S.A. announced v15.1.1 of the ANSA & µETA pre- and post- processing suite. Details

CD-adapco announced the release of v4.22 of STAR-CD and es-ice IC Engine simulation software. Details

CONTACT Software announced Release 10.1 of CIM Database PLM. Highlights are the new applications Collaboration Portal, mBOM Manager and Workflow Designer. Details

ENGINEERING PLM Solutions announced the availability of RuleDesigner PDM's integration with all versions of Solid Edge, even the latest released ST7. Details

Gibbs and Associates announced GibbsCAM UKM. Details

Hexagon Metrology announced the release of the HP-O non-contact scanning probe. Details 

Relationships

AVEVA and ETAP announced an agreement to jointly develop a software interface between AVEVA Electrical and ETAP's enterprise solution for electrical power systems. Details 

 Product                         Lifecycle                         Management: Paradigm for 21st Century Product                         Realisation

Theorem Solutions and Altran UK announced a partnership to implement Product Data Managed (PDM) Exchange. Details 

Other

Altair announced its intent to acquire Visual Solutions, Inc. Details

The Buick Achievers Scholarship Program, funded by the General Motors Foundation, announced new scholarships totaling up to $2.5 million to 100 recipients pursuing careers in the areas of science, technology, engineering and mathematics, also known as STEM, information technology and other fields related to the automotive industry. Details

CDS announced details from its Ecreativeworks built Kurt Workholding website. Details

Consilia Vektor announced CAMScore. Details

Dassault Systemes and BoostAeroSpace announced the launch of "AirDesign". Details

EOS GmbH announced that it has marked its 25th Anniversary with a move into a new Technology and Customer Center. Details

ESI Group announced use of ESI's Virtual Seat Solution by Expliseat. Details

Flow Science announced that it is among ten New Mexico businesses who have been named winners of the 2014 Venture Acceleration Fund awards. Details

Frost & Sullivan announced that it recognized Dassault Systemes with the 2014 Global Frost & Sullivan Award for New Product Innovation Leadership. Details

Optitex announced the release of Version 12.3. Details

Virtalis announced a link to zSpace from Virtalis' Visionary Render software. Details

3D Systems announced that the company ranked number 13 in Forbes' list of the most innovative companies with a market capitalization under $10 billion. Details

 

 

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