The One-Page PLM Metrics Algorithm, Ignition Recall, Bills of Materials, Most Cited PLM Publication, Managing PLM Expectations


2PLM Newsletter

John Stark Associates                                                                                                                                          April 28, 2014 - Vol16 #9

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The One-Page PLM Metrics Algorithm
by Roger Tempest
After years of searching by the PLM industry for a method of quantifying the benefits of PLM, the PLM Financial Framework has developed a Metrics Algorithm that finally makes it possible. The surprising thing is that this Algorithm can be drawn on a single sheet of A4 or US Letter paper.

This is not because the Algorithm has been shrunk to fit the page. All the steps are clearly visible and easy to read. It is simply that the Metrics Algorithm is concise, and sits at the core of a structured methodology.

For the past three issues of 2PLM we have looked at reasons why PLM is difficult to quantify. The Metrics Algorithm makes this quantification possible because of the precise context in which it is applied.

What you quantify in solid financial terms are PLM Benefits. Benefits are what act on the 'As-Is' situation of the business and create the actual improvements. Benefits are therefore the input to the Metrics Algorithm, and are deconstructed, filtered by the 16 Axes of PLM, and expressed in terms of the 5 Elements of Metrics. The Algorithm then guides the user through the process of establishing the 'As-Is' comparisons, and outputs the quantified financial values.

The Metrics Algorithm is precise because it is fed clearly-defined Benefits from a separate Analysis Algorithm, which is part of a 4-stage Proposal and Reporting methodology, within a well-specified technical, planning and management context.

The whole methodology has now been published in the Version 1.0 PLM Financial Handbook [Lite]. At 72 pages, the Handbook provides the comprehensive 'superstructure' that the Metrics Algorithm needs.

The 'Lite' methodology covers PLM Project and Purchase Justification, and includes supplementary document templates to assist the PLM Manager. The Financial Framework material will be extended to cover the more advanced techniques of PLM Financial Management over the next few weeks.



Roger Tempest is co-founder of the PLMIG. Membership of the PLMIG is available via


Ignition Recall  
The April 7 issue of 2PLM referred to GM's ignition-related recall of over 2 million vehicles. Information about the recall can be found on National Highway Traffic Safety Administration (NHTSA) and GM websites. The NHTSA site shows that Campaign 14V047000 (Ignition Switch may Turn Off) has a report receipt date of February 10 2014 (details). On April 10 2014, General Motors informed the NHTSA that it was adding ignition lock cylinders to its recall (details). GM isn't alone in recalling vehicles. On April 9, 2014, Toyota Motor Sales, U.S.A., Inc. announced it will conduct a safety recall involving about 1.3 million vehicles (details).

On April 22, General Motors announced the restructuring of its Global Vehicle Engineering organization to form two new organizations: Global Product Integrity and Global Vehicle Components and Subsystems (details).

On April 23, General Motors announced it has shipped thousands of kits consisting of ignition switches, ignition cylinders and key sets for older model small cars subject to a safety recall (details).

PLM and Product Recalls
Before the 21st Century, a PLM approach wasn't sufficiently needed from a business point of view, and wasn't possible from the technical viewpoint. Nevertheless, companies managed products across their lifecycles. But they didn't do this, even conceptually, in an explicit, "joined-up", continuous way. Instead, they managed department-by-department, for example, in Marketing, R&D, Manufacturing and Support. And other departments, such as IS and Quality, took product-related decisions separately. Without explicit, "joined-up", management of the products across the lifecycle, things fell through the cracks - with end results such as product recalls and products getting to market late.
PLM Paradigm
According to Product Lifecycle Management: Paradigm for 21st Century Product Realisation, PLM emerged in about 2001. It's a holistic business activity addressing not only products but also organisational structure, working methods, processes, people, information structures and information systems. It was a new paradigm, a new way of looking at the world of products. (A paradigm is a conceptual structure that helps people think about a particular subject.) By bringing together previously disparate and fragmented activities, systems and processes, PLM helps overcome many problems that resulted from the old unconnected approach.

A New Way of Thinking
At first glance, PLM may just appear to address the management of products across the lifecycle. However, that's the tip of the iceberg. PLM offers a new way of thinking about products and manufacturing industry.

For example, before PLM, people thought functionally about the company. A Marketing VP, an Engineering VP and a Manufacturing VP would report to the CEO. Managers of product lines would report in through a matrix. When there was a product recall, each function claimed the others were responsible.

Thinking PLM, people first think about the product lifecycle. A Chief Product Officer (CPO) has the responsibility for all the products across the lifecycle. The CPO reports to the CEO. Product Managers report to the CPO. When there's a product recall, responsibility is crystal clear - the CEO knows who to grill. But, to avoid recalls, the wise CPO will have read the book, and defined and implemented the PLM strategy.



Bills of Materials
by Scott Cleveland
Over the years, I've often asked companies where they would go to find the 'blessed' bill of materials. Their answer was that they would look in their ERP software.

In most companies, there's a battle of wills as to who owns the bill of materials. Engineering likes to own the BoM [PLM software], Manufacturing likes to own the BoM [ERP software] and there could be others. So, rather than jump into the fray I paint the picture like this ....

Engineering owns all of the pre-released BoMs. Assuming they are using PLM software, you will find BoMs there. Once a BoM is released, a copy of that released BoM is either keyed into the ERP or 'written' there automatically.

So, the PLM software owns the engineering bills until they are released. The PLM software can be looked at as the change manager for BoMs.

The latest released engineering BoM will reside in the PLM and the ERP. But, as mentioned, employees will continue to go to the ERP to get the 'blessed' BoM.

In order for this to work properly, any changes to the engineering BoM must go through the engineering change process within the PLM software. Then the PLM and ERP will always be in synch.

Most of my customers are using this approach very successfully.

Contact me if you need help with your BOMs.

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


Most Cited PLM Publication  
Since March 31 2014, Product Lifecycle Management: Paradigm for 21st Century Product Realisation has been cited 7 more times in journal articles, books and theses. The latest citations are in the following publications:
  • Citation #430; 02 Apr 2014; P Witherell et al; Towards the Synthesis of Product Knowledge Across the Lifecycle Details
  • Cit. #431; 03 Apr 2014; A Boulogne et al; La Documentation Technique - Les Fondamentaux Details
  • Cit. #432; 04 Apr 2014; A Sharon et al; A Project-Product Model-Based Approach to Planning Work Breakdown Structures of Complex System Projects Details

  • Cit. #433; 05 Apr 2014; R Mejia-Gutierrez et al; Product Lifecycle Management (PLM) as a Strategy for Project Structuring and Coordination Details
  • Cit. #434; 09 Apr 2014; JA Garcia-Garcia et al; NDT-Suite: A Methodological Tool Solution in the Model-Driven Engineering Paradigm Details
  • Cit. #435; 11 Apr 2014; I Lahoud; Un système multi-agents pour la gestion des connaissances hétérogènes et distribuées Details
  • Cit. #436; 17 Apr 2014; HM Shih; Migrating product structure bill of materials Excel files to STEP PDM implementation Details



Managing PLM Expectations
by Scott Cleveland
In a previous article, I wrote that PLM expectations are your vision of what life will be like when the PLM project is completed. Often they are unstated, but they are critical to the success of a project. When a project fails, often it's because expectations weren't met.

PLM implementations are complex - there are a lot of details that can slip through the cracks. A project plan can be a great help:

  • Dictates who does what and when they need to do it
  • Delineates the major milestones and their dependencies
  • Establishes a timeline for the project
  • Puts some definition to your solution vision into writing


  • Defines expectations
  • Defines what success means to you and your company
  • Defines the scope of the project

There may be more benefits, but these are some of the key benefits, so it's important and helpful to spend some time on the plan.

When people pay money for something and they don't get what they expect, that's when they become unhappy - contact me if you need help ....

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

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Cadence Design Systems, Inc. announced that it has entered into a definitive agreement to acquire Jasper Design Automation, Inc. for approximately $170 million in cash. Details

Flatirons Solutions announced that it has acquired CORENA. Details

IGE+XAO Group announced that it has acquired 80% of the shares of Prosyst SAS. Details



ASCON Group reported its financial results for fiscal 2013. In 2013, the company's revenues reached 983 million rubles (approximately US$28 million). Details

Cadence Design Systems, Inc. announced results for the first quarter of fiscal year 2014. Cadence reported first quarter 2014 revenue of $379 million. Details

Dassault Systemes reported IFRS unaudited financial results for the first quarter ended March 31, 2014. Q1 total revenue was 502.3 millions of Euros. Details

EMC reported first quarter 2014 results. First-quarter revenue was $5.5 billion. Details

ESI Group announced that 2013 annual sales totalled 109.3 million euros. Details

PTC reported results for its second fiscal quarter ended March 29, 2014. Q2 revenue was $329 million. Details

SAP AG announced financial results for the first quarter ended March 31, 2014. Total IFRS Q1 2014 revenue was Euro 3,698 million. Details



Aras announced that Yanmar Energy Systems has selected the Aras Innovator solution suite. Details

AVEVA announced that Atkins has chosen AVEVA Everything3D and AVEVA Laser Modeller software. Details

AVEVA announced that TEPNG has adopted AVEVA's Engineering & Design solutions. Details

AVEVA announced that Fincantieri Offshore has signed a contract to implement AVEVA Marine software. Details

Gerber Technology announced that Fila U.S.A., Inc. selected YuniquePLM. Details

Gerber Technology announced that Hansen Protection has chosen the YuniquePLM product lifecycle management solution. Details

Lectra announced that Klaussner Home Furnishings has chosen Lectra's design and product development solution. Details 

Mentor Graphics Corp. announced that LEONI is expanding its use of Capital software throughout the world. Details

PTC announced that Vital Herd, Inc. selected ThingWorx to power its M2M non-invasive individual animal monitoring technology. Details

PTC announced that NTT DOCOMO has partnered with ThingWorx and NSW for its new M2M cloud solutions powered by the ThingWorx platform. Details

Siemens PLM announced that IHC Merwede will standardize its global product development and product data management processes on Siemens' suite of product lifecycle management (PLM) software solutions. Details

Technia announced that Fjällräven International AB has chosen Technia as the system provider for their Product Lifecycle Management (PLM) implementation. Details

QUMAS announced that Amneal Pharmaceuticals LLC is leveraging QUMAS DocCompliance and ProcessCompliance. Details

QUMAS announced that Imperial Tobacco Group has chosen the QUMAS Compliance Platform to manage quality content and processes across its manufacturing and research and development groups. Details

ZWCAD Design announced that it has been selected by Euroned Engineering. Details

ZW3D announced that it has been selected by Dongguan Aiceed Moulds CO., LTD. Details 


Autodesk, Inc. announced the Autodesk 2015 Design Suites. Details

BETA CAE System S.A. announced v14.2.5 of ANSA/μETA pre- and post-processing suite. Details

ENGINEERING PLM Solutions announced RuleDesigner PDM integration for Siemens NX CAD Software. Details

Forming Technologies Inc. announced release of FormingSuite 2014 and FTI CATIA V5-Based software. Details

Gerber Technology announced AccuNest Multi-Core. Details

Hexagon Metrology announced the next generation of the ROMER Absolute Arm. Details

The IGE+XAO Group announced SEE 3D Electrical. Details

The IGE+XAO Group announced two new software packages: "SEE Project Manager LT" and "SEE Project Manager in the Cloud". Details

The IGE+XAO Group announced SEE Web Catalogue. Details

Infor announced the Infor Implementation Accelerator for Infor Optiva for the Food & Beverage industry. Details

InnovMetric Software Inc. announced the release of PolyWorks 2014. Details

InspectionXpert Corp. announced InspectionXpert support has been added for Catia V5-6 R2013. Details

Lectra announced an extended range of Versalis. Details

McLaren Software announced the latest version of McLaren FusionLive. Details

MecSoft Corp. announced VisualXPORT 2014 for SolidWorks. Details

Pointwise announced Pointwise Version 17.2. Details

Selerant announced that it launched Selerant Compliance Cloud. Details

Sopheon announced Accolade 9.1 including enhancements to Accolade Roadmapping and Accolade Innovation Planner. Details

SURFCAM, Inc announced the English language release of Surfcam Version 2014 R2. Details

Theorem Solutions announced the 3D PDF plugin for Creo. Details

VariCAD announced VariCAD 2014-2.0. Details

Zuken announced CADSTAR 15. Details



C3D Labs announced that the Mac OSX version of its C3D geometric kernel is now available to developers. Details

Datakit announced that it has extended its reseller network to Russia and China. Details

Gibbs and Associates announced that GibbsCAM has been certified for Autodesk Inventor 2015 3D mechanical design software. Details

 Product                         Lifecycle                         Management: Paradigm for 21st Century Product                         Realisation

ICAM Technologies Corp. announced a Strategic Marketing Agreement with Modig Machine Tool. Details

Lectra announced a partnership with Ruyi Group. Details

Polygonica and Simpleware announced that they will collaborate on new software release. Details

PTC and GE Intelligent Platforms announced the availability of the Proficy + PTC Windchill Solution. Details 


aPriori, Inc. announced that its enterprise product cost management software platform has been selected as a finalist in the Big Data and Analytics Innovation category for the MITX What's Next Awards. Details

The Boeing Company, Northrop Grumman Corporation, Parker Aerospace, and Elysium Inc. announced that they will hold the sixth annual joint Global Product Data Interoperability Summit (GPDIS), on September 8-11 2014, at the Pointe Hilton Squaw Peak Resort in Phoenix, AZ. The theme of this year's Summit is "Preserving Product Data Quality through the Value Stream." Presentation abstracts are due by June 2. Details

CONTACT Software announced that two solutions from CONTACT Software are now providing support for installation of the rail technology in the Gotthard Base Tunnel. Details

Creaform announced that its HandyPROBE won two awards for being the best quality control product in its class. Details

Dassault Systemes SA announced its plan to change the legal status of the Company from that a French Public Limited Company (Societe anonyme) to that of a European Company. Details

Datakit announced the relocation of its Lyon offices. Details

Delcam announced that its Vortex high-efficiency roughing won a MWP Best CADCAM Award. Details

Eurostep announced that the theme, dates and city have been decided for PDT Europe 2014. The theme is Shaping the PLM Platform of the Future. Dates are October 14-15, 2014 in Paris, France with a pre-conference session on October 13. Details

Eurostep announced Share-A-space Forums in Spring 2014 in several locations: Gothenburg (May 20), Stockholm (May 21), Helsinki (May 22), Toulouse (June 18), Paris (June 19) and Munich (provisionally June 24). Details

Geometric Ltd. announced that it has entered into a multi-year engineering services engagement with Aerolia. Details

GTX Corp. announced its 30th anniversary. Details

ITI announced that they are one of the technology companies selected as a partner in the Chicago-based UI LABS that has been awarded $70 million from the DoD to fund the Digital Lab for Manufacturing. Details

Lantek announced that it provides software products specialized in the efficient management of materials, costs, time management, shipments, and consumption. Details

MSC Software Corp. announced that it is part of the 41-member consortium that won a U.S. government competition to develop a national center for digital manufacturing technology. Details

nCode announced the release of a Premium Materials Database at nCode 10. Details

PROSTEP announced its 250th customer of Details

Siemens announced nearly $660 million of in-kind software grants for Massachusetts schools. Details

TFTLabs S.A.S announced the TFTPad 3D models viewer on Apple Store. Details

Vero Software announced that they have been awarded the Queen's Award for Enterprise in International Trade 2014. Details



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