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Published on June 2016 | Categories: Documents | Downloads: 6 | Comments: 0



‡ PLM can not be simply bought as a Software Application, though software forms an integral part of PLM ‡ People, Technology and Processes/Practices are all integral to PLM ‡ In definition of PLM, we called it an ³Approach´ and a ³System´ ‡ Three elements namely People, Technology and Processes/Practices make up such an Approach/System

‡ While people and their processes/practices have been around for a long time, Information Technology is relatively recent introduction. ‡ It is a key enabler that allows us to do tasks that are not impossible, but surely impracticable without IT ‡ But people and their processes/practices are also a prime necessity in implementing PLM ‡ IT, however enables people to perform their processes & practices in a more efficient manner


Good Results High Lower efficiency

Good Results Higher efficiency High ROI Limited Results Low ROI High

Low Poor Results Poor efficiency Low


‡ Look at previous slide ‡ This shows a matrix of the impact of low & high IT utilization against the low & high process/practice development ‡ IT includes all manners of Information Technology -- from manual paper & records to sophisticated computer applications & systems

‡ Low end IT refers to paper & manual systems whereas high end refers to on line computer based systems ‡ Low process/practice development refers to processes & practices that are Ad hoc, undefined or spontaneous ‡ High process/practice development refers to processes & practices development that is continually being analyzed, refined and improved

‡ In the lower left quadrant ± low IT & low process/practice development, the result is a great deal of wasted time, energy & material ‡ It exhibits very poor efficiency where there is a high employee turnover ‡ Even routine, standardized tasks are performed differently by the same people ‡ There is a great deal of trial & error ‡ Any information learnt is immediately lost ‡ Wastage of time, energy & material is high

‡ In the lower right quadrant ± high IT & low process/practice development, the result is limited results and low ROI ‡ Finding solutions in high IT but without proper processes & practices does not lead to improvement in efficiency ‡ Employees will exert least possible effort in working with the system. Entering data & information will not be complete / correct ‡ They will have no use or interest for the information develop by the system

‡ There may be some useful discipline imposed through the use of IT but due to poor processes any task structuring & efficiency will be lost ‡ Low ROI is a result of efficiency gains from task improvement being off set by poor processes & practices ‡ In PLM scenario it will lead to poor and even counter- productive results

‡ In the Top left quadrant ± low IT & high process/practice development, it leads to Good result but lower efficiency ‡ Well defined processes that are continually improved organization can get good results ‡ Good results mean decrease in waste of time, energy & material

‡ Best example of this is Toyota¶s Total Production Systems (TPS) ‡ TPS uses simple IT such as kanban cards that pull inventory from the previous cell ‡ TPS continues to analyze, improve & document its processes. ‡ Toyota also spends great deal of time & effort to train its people on processes

‡ Some people think that this approach of using low technology with highly developed processes / practices would be
± Successful in a deterministic set up like Factory where Processes rule ± It will NOT be successful in a design & engineering functional area where Practices rule

‡ Toyota has successfully implemented in its design & engineering functions ‡ However low technology demand employing more people

‡ In the Top Right quadrant ±high IT & high process/practice development, the result is Good with higher ROI and higher efficiency. ‡ IT is used to implement continually improving Practices & Processes ‡ For information processing, technology is more suited than people & paper ‡ Further processes & practices can be simulated in virtual space, saving the cost of wasted time, energy and material

‡ Process / Practice versus Technology matrix is conditioned on one main factor ± people. ‡ It holds true if people are motivated and act with good intensions & competence in making the process/practice & information technology work ‡ If they do not, best processes/practices and information technology will fail ‡ Well intentioned people will make mediocre/ poor processes/practices & IT work for them using fair amount of improvising





‡ In the above slide people have been shown in the top of the triangle to indicate their dominant role ‡ However all the three elements must perform individually & work together cohesively for implementation of PLM


‡ People have some characteristics which we need for PLM to be successful ‡ There are also some characteristics that will limit their effectiveness ‡ The relevant practices of people to be considered are
± Capabilities ± Change Capacity ± Organization

‡ People have a wide range of capabilities ‡ Some have limited capabilities suitable for simple, uncomplicated, well defined task ‡ Others have robust capabilities that allow them to engage in efficient goal achievement even under ambiguous and uncertain circumstances


‡ These capabilities are determined by
± Experience ± Education & Training ± Support


‡ Experience is accumulating information & knowledge about different situations in order to be able to trade off information for wasted time, energy & material ‡ As humans, every time we experience & learn from encountering a situation or performing a task ‡ We find out quicker and easier ways to do the task as the time progresses

‡ Our experience allows us to reduce such time, predict outcomes with higher probability or success & pick right routines for the right situations ‡ For example if we have experience in categorization of parts, we look through only those categories of parts that perform the function we want to add to a new product ‡ Similarly if we have experience with the order of assembly, we know which of the sequences can be done in the least amount of time

‡ Experience is an individual characteristics ‡ If the individual lives, so does the experience ‡ But if we can capture the experience by recording it in virtual space, we have opportunity to impart this experience to others ‡ PLM takes it a step further by embedding experience in to processes & routines

‡ A caution about assessing experience ‡ Often people with 30 years¶ experience really have one years experience for 30 years¶. This is to say their experience level is equal to a person who has been on the job for one year ‡ Such a person has been performing uncomplicated, standardize tasks with little variability for 30 years¶ he reaches the limit of learning in short period of time ‡ Additional time on job adds no information or knowledge ‡ Thus we have to assess the variety & range of experience and not simply the duration of the experience


‡ In PLM we can trade information for time, energy & material therefore our most experience people will have the most information about our products ‡ Capturing that information as they work with the PLM applications will improve the efficiency of the transition to PLM


‡ May organizations have a knowledge gap in their work force ‡ There are large number of people retiring in the next few years ‡ There are also large number of in -experienced, younger workers hire in recent years ‡ They do not have workers in the middle because of down sizing in 1990s ‡ To capture the experience of soon to be retired workers; only hope is PLM

‡ PLM requires new & different ways of approaching product information ‡ Our most experienced people may also be most rigid people who resist new ways of doing things ‡ Promise of PLM is not in duplicating the old ways but finding a new way of doing things ‡ This requires flexibility on part of people

‡ Organizations have no longer the luxury of time & cost of waiting for people to gain experience ‡ Increasing product complexity & decreasing cycle times mean that we have to gain more experience in less time


‡ Gaining experience is an expensive, passive & unstructured activity ‡ Expensive because it requires a good deal of time, energy & material to find the right solution for a problem through trial & error ‡ Passive because activities where we gain experience happen when they happen ‡ Unstructured because we do not plan for it ‡ Experience happens when we least expect them

‡ One way to gain experience is to provide people with education & training rather than waiting for it to happen ‡ Education & Training are classical applications of trading information for wasted energy & material ‡ With training we teach people what to do ‡ With education we teach them why they do it

‡ Training is better suited to processes ‡ We want the same actions performed each and every time to get the same results each and every time ‡ Education is better suited to practices ‡ For practices we need to understand the theories of inputs affecting outputs so that we can separate the relevant factors from the irrelevant ones

‡ Information that we collect within PLM can greatly enhance the effectiveness of education & training ‡ Using information in the virtual space we can develop proactive & structured simulations that will have the same effects as experienced for the individuals at less expense ‡ Simulated activities have always played a role in training for processes but they are also useful in education for practices

‡ The support that an individual is provided with will also enhance or detract from his capabilities ‡ Support is an extension of education & training but takes place during the execution of task & not in preparation of the task ‡ Support is also a substitution of information for wasted time, energy & material ‡ Unlike computers people tend to have diminished recall for information the longer they have not used it

‡ Proper support can reduce the inefficiency of searching & relearning process by providing people with the information they need when they need ‡ If processes are used periodically or infrequently we should provide support to avoid waste in time in searching & relearning ‡ PLM are complex & affect complex processes. If support is not provided people will become inefficient & frustrated with PLM

‡ For practices it may not be enough to provide support through computer applications ‡ For practices that are part of PLM, enabling with interpersonal communication should be encouraged & not discouraged ‡ It may be challenging to identify & separate support activates from wasted time but it is necessary for successful implementation of PLM


‡ PLM requires a substantial amount of change by people within the organization ‡ A determining factor in the success or failure of PLM is the capacity for change ‡ Even If people are excited about PLM, it may fade quickly if it taxes their capacity for change


‡ Following factors affect the capacity for change of individuals: ±Magnitude & Timings of the change ±Ability of people to change ±Willingness of people to change


‡ Time & Attention are two scarce resources which people do not have. ‡ People have only so much attention to give it to their surroundings. ‡ This can be proved by driving on a stretch on a highway while talking on a cell phone & in the second case while not using the cell phone. ‡ We only have a certain amount of attention available. Talking on a cell phone uses fair amount of this attention which otherwise we would have given to our surroundings.

‡ Changes required us to expend a substantial amount of attention. ‡ More changes ± more attention expended ‡ It is more difficult to make major changes than it is to make minor changes ‡ Changes should be considered as cumulative. Making a number of small changes can be more taxing than making a single large change ‡ Cumulative magnitude of change also includes changes being made in other functional areas

‡ We have to consider the magnitude of change overall, and not just that of our initiative ‡ Therefore the timing of change is very important so that they can be phased so as not to exceed overall capacity of people ‡ Capacity for magnitude of change is like stretching a muscle ± the more it is stretch, more flexibility or capacity it develops ‡ Phasing in the changes is a successful method to overcome resistance to change

‡ All people may have the capacity to change but may not have the capability to change ‡ People must be assisted whether they have the correct education, training & support in order to be able to make changes ‡ In absence of such training & support changes can fail

‡ Willingness of people to change is an important factor ‡ Many initiatives fail, not for faults in technologies / processes but because people are not interested in having them succeed ‡ If people feel threatened by the new system or are satisfied with the status quo, then their ability to make changes is limited


‡ Willingness of people to change is based on three major factors:
± Their belief systems ± Their reward & punishment systems ± Their available options

‡ People perform best when their actions are consistent with their belief system ‡ Belief system can be personal or organizational

‡ Reward and punishment system plays an important role ‡ Work habits of people are determined by their compensation system ‡ So best way to get people to do what we want is to compensate them for the behavior we want ‡ Punishment systems are effective at preventing behavior

‡ Last factor affecting change are the options people have ‡ If we allow the strongest option is no change or status quo ‡ People should not be given choice between using their old ways and the new ways of doing things


‡ Two elements of organizational considerations are Structure & Authority Enablement ‡ Structure should encourage the flow of information across functional areas ‡ Information should be shared by all ‡ Absence of this practice can only optimize the subsystem and not the entire organization

‡ If Authority in an organization exist fairly high, then the decision to share information will also be taken at that level ‡ People will be concerned about over stepping their Authority & will not share information ‡ This leads to silos & compartmentalization ‡ People must be empowered to share information

‡ Though Processes are very important, Practices deserve equal attention ‡ Practices did not get much attention due to:
± IT could only support Processes. Information had to be highly structured to be Processes. Practices required unstructured, free-form information ± For structured processes, there is more motivation to implement

‡ It is important to differentiate between Process & Practice ‡ If we del with a Practice as if it is Process ± we attempt to make it more efficient by removing ³Unnecessary´ information & ³Extraneous´ communication. This leads to reduced efficiency ‡ Processes & Practices can exist within the same task ‡ Processes & Practices require different approaches

‡ Process is a very important issue for PLM to focus on ‡ More we can define processes the more we can increase efficiency in a systematic fashion ‡ It is difficult to define & measure practices ‡ We must analyze to separate processes from practices where possible

‡ Four issues for processes:
± We must have a deep & not superficial or stylized understanding of our processes ± The processes must be defined in an explicit manner & not in a tactic manner ± Processes must be reengineered for a digital environment ± Processes must be integrated across the organization

‡ In practice most of the processes are stylize ‡ To automate processes within the organization analyst must find out how the processes really work ‡ Unless there is a deep understanding of how to processes really work, their automation will not succeed ‡ Processes must be explicitly defined

‡ suppose the process goes from A to B to C ‡ It is likely that the person doing process A unofficially concerned with people doing processes B & E because he knows that unless he obtains that information work will come back for revision ‡ For example ± The design Engineers while defining the product characteristics check with the purchasing department for the available vendors & specify only available products in to the design

‡ If such a process is automated it will stop working because the people who are suppose to be in the loop in the tactic processes no longer have access to the information ‡ As a result, what was once a good working system is now made to wok the way it is formally defined ‡ This adds more work in to the environment by becoming a formal, sequential & iterative processes which is inefficient

‡ Processes are not only build around the information but also around how the information is delivered ‡ In old systems presence or absence of the paper would generate an action ‡ In digital environment even simple things like signatures are to be enabled in a digital manner as an indication that approval has been made

‡ In organizations where workers are not comfortable in digital environment the lack of paper can cause great anxiety ‡ People may be interested to continue with paper system as a reassurance or back up ‡ This leads to additional cost & inefficiencies


‡ When product information was limited to a specific function, processes could remain independent & un integrated across functions ‡ In PLM scenario we have to see product processes across the functional areas ‡ A change process defining the changed to a product but does not alert manufacturing to this change will be inefficient & waste time, material & energy through rework or scrap

‡ Majority of information that we deal with on a daily basis is unstructured ‡ There is fuzziness or incompleteness in that information ‡ People make decisions on such information through practices ‡ Practices are non-algorithmic, Judgmental activities ‡ We have to find a pattern in a pool of seemingly unrelated data & information

‡ Information requirements are different for practices & processes ‡ With processes, focus is on the movement from state to state as quickly as possible ‡ With practice, the focus is on collecting data & information at each state in order to build a pool of information which will help recognition of pattern in future ‡ However both processes & practices are part of the task

‡ For PLM goal is to provide the pool of data & information & assist in discerning the correct pattern ‡ For PLM the important factors for practice are providing standards & guidelines, capturing & categorizing exemplars & providing reach interpersonal communication & coordination

‡ Ability for computers to handle unstructured data has improved grammatically over the last decade ‡ It is now feasible to crate standards & guidelines that can support practices ‡ Standards & guideline can also be linked to design & testing information to provide & understanding of the rational for design & approval decisions

‡ PLM is a heavily dependent on the applications based on technology ‡ With continuous development, mergers & acquisitions even the names of PLM applications have changed ‡ Thus reference to a specific PLM application would be familiar only to those individuals with the long experience with the industry

‡ Since there is large variety of applications for different aspects of PLM, the functions of such applications need to the assessed ‡ There are some issues regarding Technology that are independent of any particular application ‡ These issues pertain to the considerations that any PLM application must take in to account

‡ Issues involved are:
± PLM needs an adequate technology infrastructure ± PLM application should be open & harmonized with other applications ± PLM applications must be configurable & not customizable ± PLM applications must be useable and embedded ± PLM applications must be utility-like in their performance


‡ This aspect is mostly ignored ‡ PLM with its requirement for access to substantial amounts of math-based designs will strain infrastructure that is not sized to handle it ‡ Shortage of infrastructure can cause slow adoption or even failure of the project ‡ Infrastructure can be in terms of computing capability, communication, bandwidth, storage & people etc.

‡ There is a large variety of product information & its uses, as such no single solution provider make over the entire PLM ‡ Thus there will be a number of different solutions in selected areas of expertise ‡ There may not be a single standard for this & we should look for openness & harmonization in their product offerings

‡ By openness we mean ability to understand & use the information from the applications at some level of granularity ‡ By harmonization we mean to have different applications to be compatible with one another so that information can be shared/transferred


‡ Customize software is problematic for new initiatives like PLM ‡ With a rapid changes any customization is expensive & will delay adoption of new application ‡ Configurable applications are the solutions for the applications that are not customize but are tailored to the organization that acquires them

‡ Applications should reflect the way that people do their jobs & the technical considerations must not overwrite uses requirements ‡ If the applications are updated in a manner that does not reflect the job processes & practices, it leads to wasted time, energy & material

‡ We must align our information technology with our business processes & practices ‡ By embedding, the information system becomes an integral part of the job processes & practices ‡ Application must reflect how job is done & not how the programming is easily achieved ‡ Software developers¶ needs must not be put over the needs of the application users


‡ To capture, retrieve and use product information should be simple & useable like a utility ‡ Such applications must be reliable & work each & every time the user ³switches´ them on ‡ Absence of this will lead to alternate means of a handling this information resulting in wastage


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