Demystifying the Role of PLM in Your Enterprise

Digital transformation is more than just a buzzword; it’s a fundamental shift in how businesses operate and compete. For engineering leaders in manufacturing, understanding and implementing digital transformation can be the key to unlocking new efficiencies, improving product quality, and enhancing customer satisfaction. This blog post draws insights from a recent presentation on digital transformation, aiming to provide a comprehensive guide on approaching and implementing these changes effectively within your organisation.

The Digital Thread: Connecting Your Enterprise

One of the core concepts in digital transformation is the digital thread. This refers to the integrated view of data throughout the product lifecycle, from initial design through manufacturing to service and support. Today, the digital thread (and its data) is even more important to comply with sustainability legalisation, including the digital product passport, which kicks in for some industries at the end of 2024. The digital thread connects traditionally siloed functions and provides a seamless information flow across departments and the product lifecycle.

Understanding Product Lifecycle Management (PLM)

Product Lifecycle Management (PLM) is often misunderstood as merely managing CAD models and engineering drawings. However, PLM is much more comprehensive. It involves managing the entire lifecycle of a product, including the bill of materials (BOM), product records, design rules, and engineering changes. Effective PLM ensures that all relevant information is accessible across different functions within the organisation, breaking down silos and improving collaboration.

The Role of Excel and Legacy Systems

Many organisations still rely heavily on Excel for managing PLM tasks, creating silos of information that hinder efficiency. While Excel is a powerful tool, its limitations become apparent in complex, integrated and regulated environments. Transitioning from Excel to more robust PLM systems can reduce administrative burdens and improve data accuracy and accessibility.

Building the Digital Thread

To create a digital thread, start by mapping your business processes from a high level. This helps visualise how information flows through your organisation and identifies areas lacking integration. Consider the following steps:

1. Define Your Processes: Map out the end-to-end processes involved in developing, manufacturing, and supporting your products. This should include everything from initial concept and design to final delivery and maintenance.
2. Identify Key Systems: Determine which systems are involved at each stage of the process. This typically includes PLM, ERP (Enterprise Resource Planning), MES (Manufacturing Execution Systems), CRM (Customer Relationship Management), and e-commerce platforms.
3. Analyse Data Flow: Understand how data moves between these systems. Look for areas where manual data entry is required or where data is duplicated across systems.
4. Integrate Systems: Aim to integrate your systems to enable seamless data flow. This reduces the risk of errors, speeds up processes, and ensures that everyone has access to the most up-to-date information.

Visualising the Business Process

Creating a visual representation of your business process on a single page can be incredibly powerful. This “world on a page” approach helps everyone in the organisation, from shop floor workers to board members, understand how the business operates. It highlights the interconnectedness of different functions and the flow of information.  This is a critical step in gaining buy-in for a broad cross-section of your business.

Applying Different Lenses

Once you have your process mapped out, apply different lenses to identify opportunities for improvement:

• Value Creation: Identify where value is created (or lost) in the process. This could be customer-centric value, safety improvements, or efficiency gains.
• Effort Required: Assess how much effort is required for each step. This helps identify bottlenecks and areas where automation or process changes could reduce effort.
• Rework and Errors: Look for steps that involve high levels of rework or errors. These are often areas where integration and data accuracy need improvement.
• System Usage: Analyse which systems are used at each step and how mature and connected the information is. This helps identify where investments in new systems or integrations could have the most impact.

Case Study: Real-World Application

A practical example of this approach involved a manufacturing company that discovered it had two critical paths for designing, developing, manufacturing, and supporting products. It had not previously recognised this because its planning processes were not effectively integrated with its sales and design processes.

• Revelations: They found that nearly three-quarters of their process steps required significant manual administration, involving multiple systems and leading to frequent errors and rework.
• Outcomes: They justified a substantial investment in a new ERP system by visualising their processes and understanding the integration gaps. This change was not driven by immediate financial returns but by the strategic need to reduce technical debt and streamline operations.

Developing a Product DNA

Another essential aspect of digital transformation is defining your product DNA. This involves creating a comprehensive model of information that defines your products. This includes:

• Parts and BOM: Detailed descriptions of all parts and their relationships within the BOM.
• Geometry and Documentation: CAD files, drawings, test specifications, and results.
• Materials and Sustainability: Information on the materials used and their sustainability impact.
• Core Processes: Key processes such as engineering change management and their connection to product information.

This product DNA forms the basis for an enterprise information model that guides how information is managed and used across the organisation.

Integration and AI

Integration goes beyond connecting systems; it includes integrating machines and collecting data from various business processes. Advanced tools like AI can then analyse this data to predict outcomes and optimise processes. For example, AI can help predict maintenance needs, optimise production schedules, and improve quality control.  But before you jump into the exciting new world of opportunity AI promises to bring; it is worth considering the above to create a solid foundation for your models.

Key Takeaways for Business Leaders

1. Align Around a Simple Model: Develop a simple, high-level model of how your business works. This helps everyone understand the big picture and aligns efforts across the organization.
2. Identify Challenges and Opportunities: Use your model to pinpoint where inefficiencies and opportunities lie. This helps prioritise initiatives that will have the most significant impact.
3. Build an Enterprise Information Model: Create a comprehensive information model that defines how data should flow through your organisation. This should be agnostic of specific systems and focused on supporting business processes.

Conclusion

Digital transformation is a journey, not a destination. It requires a strategic approach, starting with a clear understanding of your business processes and information flow. By creating a digital thread, visualising processes, and building a robust information model, engineering leaders can drive significant improvements in efficiency, quality, and customer satisfaction.

Remember, Rome wasn’t built in a day, and digital transformation won’t happen overnight. But with a clear roadmap and a focus on integration and information flow, you can set your organisation on the path to success.

Find out more information on Demystifying the Role of PLM in the Enterprise

Why we gave this presentation

At Nick Leeder & Co, we understand the challenges business leaders face when driving digital transformation within their organisations. The journey is fraught with complexity, from overcoming resistance to change to integrating fragmented legacy systems. However, our expertise in identifying opportunities and guiding our clients through deployments of enterprise applications, including Product Lifecycle Management (PLM) solutions, has consistently helped companies unlock significant efficiencies and elevate product quality. We specialise in turning daunting transformation initiatives into manageable, strategic advancements. By partnering with us, you’ll discover tailored solutions that align with your unique business processes, ensuring a seamless flow of information and fostering a collaborative environment. Let’s turn your vision into reality.

Discover how we support our clients in identifying opportunities with digital transformation by clicking on the link or arrange a meeting with Nick Leeder & Co today. Together, we’ll navigate the path to operational excellence through digital technologies.