Overview:
• Context
• Research Design
• Results
• Implications for Lean
• Lessons Learned
• Conclusion

Hines, Eriska K.

Shields, Tom

Srinivasan, Jayakanth "JK"

DSpace@MIT

Erisa K Hineswith Tom Shields and Jayakanth ‘JK’ SrinivasanMarch 23, 2005 – LAI PlenaryEnabling Lean Enterprise Transformation Through ITThe PDM Examplehttp://lean.mit.edu 2erisak@mit.eduOverview• Context• Research Design• Results• Implications for Lean• Lessons Learned• Conclusionshttp://lean.mit.edu 3erisak@mit.eduLean Enterprise“A lean enterprise is an entity that efficiently and effectively creates value for its multiple stakeholders by employing lean principles and practices” – EA Working Group Definition• Lean Principles– Waste minimization– Responsiveness to change– Right thing at right place at right time and in the right quantity– Effective relationships within the value stream– Continuous improvement– Quality from the beginninghttp://lean.mit.edu 4erisak@mit.eduProduct Lifecycle Management“A strategic business approach that applies a consistent set of business solutions in the support of the collaborative creation, management, dissemination, and use of product definition information across the extended enterprise from concept to end of life – integrating people, process, business systems and information (emphasis added)”– CIMdata definition of Product Lifecycle Management}}EfficiencyAutomateEvolutionary levelsRevolutionary levelsLowHighIncreasing Enterprise Value1985 1990 1995 2000 2005Localized ExploitationCost FocusCustom ImplementationsData/TechnologyStandardized ToolkitsFunctional FocusIntegrationQuality FocusBusiness ApplicationsProcess FocusEnterprise AgilityEffectivenessBusiness SolutionsEnterprise ReturnEnterprise CapabilityCAD  Data ManagementProduct  Data ManagementProduct  Lifecycle ManagementLean Enterprisehttp://lean.mit.edu 5erisak@mit.edu“Industry” Perspective“The aerospace companies want to shed IT silos that can’t talk to each other, and the vendors want to accommodate them with suites of tools that can smoothly exchange data…” – David Hughes, AWST, 2003 “PLM is an emerging technology with a lot of growth in front of it. But it is mature enough that the GMs of the world are using it and that’s a confidence-building factor” – Bob Nierman, EDSPDM/PLM technologies for aerospace alone is an estimated $10.4 Billion market for 2005– Daratech ReportAerospace Market Share of PDM/PLM early 1990s21%Aerospace Market Share of PDM/PLM 200513%http://lean.mit.edu 6erisak@mit.eduThe Real Value of PDM (beyond the design cycle)• Why don’t we know the realistic payback?  The metrics aren’t there!!• The Intangibles– Downstream support capability and benefits– Contracts won due to capability– Actual savings due to reduced reworkDesign Manufacturing Distribution Product Support Retirementhttp://lean.mit.edu 7erisak@mit.eduKey Research Questions• What are the high level requirements of a PDM?• How is the management of data evolving?• What makes a successful implementation?• How are the technology and organization evolving?  Who is driving?http://lean.mit.edu 8erisak@mit.eduResearch Methodology• 9 Sites (6 Companies)– 24 programs• Structured Interviews– Introduction to site– Site interview– Program interviews– Process interview• Case Studies– 2 siteshttp://lean.mit.edu 9erisak@mit.eduSite Profile Data (1)Number of Employees at each Site012340 - 1999 2000-4999 5000-7999 8000-10,999 11,000+EmployeesNumber of Siteshttp://lean.mit.edu 10erisak@mit.eduSite Profile Data (2)Money Spent per Site per Year on PDM012340-.99 1-1.99 2-2.99 3-3.99Money spent ($M)http://lean.mit.edu 11erisak@mit.eduPDM Implementation Spending• The majority of money spent is on developing processes and the licensing costsWhere Money is Being Spent for PDM ImplementationsConsult ing19%Training and Other5%Data Quality, M igrat ion…9%Required SW & HW32%Process Development35%http://lean.mit.edu 12erisak@mit.eduYour Reasons for PDM• Need to replace legacy tool(s)• Reduction in cost, time to market• Centralization of data• Elimination of data redundancy• Concurrent engineering• Reduction in tool variability• Efficiency gains in design, iterationshttp://lean.mit.edu 13erisak@mit.eduPrimary Driver for PDM• Site interviewees given a choice between:– Internal Need/Desire -- Customer Demand– Supplier Demand -- Competitive Need• Survey says:– Internal:  7 responses• one had Customer as close second– Competitive:  2 responses• one had Internal as close secondhttp://lean.mit.edu 14erisak@mit.eduResults from Site/Program Visitshttp://lean.mit.edu 15erisak@mit.eduResults (1):What PDM is Being Used ForCurrent Functional Use of PDM (2004)0%10%20%30%40%50%60%70%80%90%100%VaultingDoc ReleaseWorkflow MgmtProd StructureChange MgmtVisualCollaborationFunctionalityPercentage (Programs)nonPDMPDM+PDM• There is a clear distinction between the traditional applications of PDM and those that are nothttp://lean.mit.edu 16erisak@mit.eduWhere Data Elements Are Managed (Past)0%10%20%30%40%50%60%70%80%90%100%CAD 2DCAD 3DMeta DataEBOMEng NotesScan DrawingsStruct AnalysisTooling Models CAEMBOMProcurementNon-conf DataTest DataPM DataField DataMaint DataOther DataSchedulesData ElementsPercentage (Programs)non-CMCMPDM+PDMResults (2):Product Data TrendWhere Data Elements Are Managed (Future)0%10%20%30%40%50%60%70%80%90%100%CAD 2DCAD 3DMeta DataEBOMEng NotesScan DrawingsStruct AnalysisTooling ModelsCAEMBOMProcurementNon-conf DataTest DataPM DataField DataMaint DataOther DataSchedulesData ElementsPercentage (Programs)non-CMCMPDM+PDM• MBOM is the breaking point due to other business systems• There is an industry trend in using PDM to manage more traditional engineering design data than in the pasthttp://lean.mit.edu 17erisak@mit.eduResults (3):PDM Maturity SurveyIntegration of Product Data Across the Lifecycle012345ABCDEFGHIExtent of Supplier/Partner Integration012345ABCDEFGHIManagement of Workflow Electronically Throughout the Lifecycle012345ABCDEFGHIIntegration/Compatibility with Existing Systems/Applications012345ABCDEFGHIhttp://lean.mit.edu 18erisak@mit.eduResults from Survey of PDM Maturity (Current)012345ABCDEFGHIPD LC Integrat ionSup/Part  Integrat ionElectronic Workf lowSystem Integrat ionResults (4):Industry’s PDM MaturityA through I represent the sitesPossible answers ranged from 1 to 5• Higher maturity lies in the primes, with similar capability in homogeneous suppliershttp://lean.mit.edu 19erisak@mit.eduResults (5):  Industry’s Desired PDM MaturityResults from Survey of PDM Maturity (Current)012345ABCDEFGHIPD LC Integrat ionSup/Part  Integrat ionElectronic Workf lowSystem Integrat ionResults from Survey of PDM Maturity (Desired)012345ABCDEFHIPD LC Integrat ionSup/Part  Integrat ionElectronic Workf lowSystem Integrat ion• The desire to increase PDM capability demonstrates that companies are still striving to transformhttp://lean.mit.edu 20erisak@mit.eduLean and PDMhttp://lean.mit.edu 21erisak@mit.eduLean Practices• 8 out of 9 sites employ Lean and some form of Six Sigma practices• Was a Lessons Learned Standard Process used for the PDM implementation?– 2 out of 9 had a formal process– 5 out of 9 had an informal process– 8 of 9 have utilized LL information• Stakeholder Identification– 3 out of 6 formally identified stakeholders and valuehttp://lean.mit.edu 22erisak@mit.eduLean Implications of PDM• IT provides the infrastructure to support “Enterprise Change.”  – PDM is a (important) piece of that.• Creates opportunity to address process development/improvement• When deployed as a Lean Initiative/Project– Competition with other initiatives– User sensitivity to success of past Lean events– May garner more management support– Provides visibility outside of “IT”http://lean.mit.edu 23erisak@mit.eduTake-Awayshttp://lean.mit.edu 24erisak@mit.eduLessons Learned• Change Management:  Users– People/culture are your biggest barrier– Do not allow users to continue with the old system• Change Management: Leaders– RAA: Responsibility, Authority, Accountability– Clear Objectives/Staying Power• Run it Like a Program• Get the vendors involved early – understanding of process-tool interaction• Understand vendor capability e.g. BOM managementhttp://lean.mit.edu 25erisak@mit.eduFun Quotes“I guess it’s working just fine.”~PDM Budget Oversight~“There is no point in doing a value stream map and finding out where improvements can be made, if you do not have the authority and the funding to actually make changes”~Director of Lean PDM~“Everyone is into reducing waste and continuous improvement so it becomes the change agent – the common language we all speak to justify going to our (common) singular system.”~VP of Engineering on Lean~http://lean.mit.edu 26erisak@mit.eduConclusions• PDM remains focused on the design stage• Suppliers moving up the food chain: Need for product data management capability• Change management and data migration are the biggest challenges/pitfalls• Lean principles and practices should be used when implementing PDM capability• PDM enables Lean Enterprise Transformation– opportunity to address enterprise value streamhttp://lean.mit.edu 27erisak@mit.eduThank youQuestions?  Feedback?For further discussion, please contact Erisa (erisak@mit.edu) or JK Srinivasan (jksrini@mit.edu)

Enabling Lean Enterprise Transformation Through IT The PDM Example

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Enabling Lean Enterprise Transformation Through IT The PDM Example

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