Sharpen PLM Focus for Best Results

By Marc Lind, Aras Corp.

Marc Lind,
Aras Corp.

When we think of Toyota, we think about reliable cars, unparalleled quality,and the Toyota Production System. Most people do not think about enterprise softwaremanaging product-related information across the supply chain. Toyota, however,recognized the importance of an effective PLM (product lifecycle management) automationstrategy years ago.
PLM provides an expanded scope that includes manufacturing, quality, and supplychain processes throughout a company and beyond, to its suppliers and customers.Toyota has spent millions of dollars over the past two decades on informationtechnology to make sure its design activities are linked directly to its manufacturingand supply chain processes.
As manufacturers around the world look for ways to streamline the process fromnew product design through postproduction, they are reaching the same conclusionthat Toyota did: Information systems must tie production and supplier-relatedprocesses into the development and launch processes earlier. In the past, costprevented mainstream manufacturers from following Toyota’s lead. Today, the combinationof powerful, low-cost computers and enterprise software for the Internet makesPLM applications affordable to manufacturers of all sizes.
As competition intensifies, companies that concentrate on process efficiencyunderstand that coordinating a product’s design for lean manufacturing and sourcingfrom strategic suppliers is critical. It’s the only way to achieve the efficienciesneeded to deliver desired cost structures, lead times, and margins.

Manufacturers who focus on process improvements recognize that reliance on manualactivities and automated transactions does not yield the productivity gains necessaryfor consistent profits. Instead, it’s effective project and program managementfor release to production, tool and equipment selection, and traceability forcompliance that guide manufacturers toward operational excellence and competitiveadvantage. Mike Burkett, a research director for AMR Research specializing inlean manufacturing and PLM, explains in a June 2003 report, “Payback periods formany of these initiatives are measured in months, resulting from savings in inventory,product cost, and supply chain overhead.”
The inclusion of manufacturing, quality, and supply chain processes makes PLMa powerful solution for production operations. For example, a midsized manufacturerof precision-bearing products for the industrial and defense markets is usingPLM to automate the process of tooling and work cell selection based on productfamily characteristics to reduce lead times and costs while maintaining quality.When an order is taken, the PLM system automatically identifies the appropriateproduction process configuration and loads that information and routing into theERP system. The PLM system provides the ability to manage complex product informationin the context of production-related dependencies.

When considering a PLM system, it’s essential to focus on a specific, criticalbusiness issue that requires quick resolution. Because PLM spans a broad rangeof processes it can be problematic to address too many at once. Be practical andchoose a PLM process that will have a significant positive impact on both yourbottom line and overall ability to compete.
It’s also important to make flexibility a priority. The ability to easily changea PLM system should be a primary consideration. It carries particular importancein a lean environment to cut back on waste. Continuous improvement initiativesoften necessitate system modifications, which require reprogramming software withconventional solutions. The more modern application framework of some Internet-basedsolutions offer adaptability without programming to support ongoing improvement.In sum, choosing faster implementation and adoption of changes will dramaticallylower your company’s ongoing system-related costs.

Marc Lind, CPIM, is vice president for Aras Corporation and has more than a decadeof experience in leading manufacturing initiatives. Send your thoughts on thiscommentary through e-mail c/o [email protected].