Complexity & cost?

We should pause a moment and consider the beauty of such a system. However, I guess we all get a little nervous when there is talk of linking component systems or modules, particularly if existing components are sourced from different vendors. Is this perceived complexity and the high price tags that tend to accompany it what has prevented PLM becoming adopted by all but the largest companies?

Bob Clements believes that the complexity and therefore cost of a PLM solution lies not so much in the technology required to link systems and automate processes (he even goes as far as to say that's the easy bit - and you know what - I almost believe him) but rather in being smart enough about what information take-out different individuals in an organisation or supply chain need out of those very processes you are seeking to link and automate. In other words, the devil's in the detail of system design not implementation.    This is where Bob thinks in2grate got it right when they launched their PLM system, d2order, last year. in2grate is a member of the Anisa group of companies and as such, has drawn upon a wealth of experience within the group to develop d2order, delivering what they believe is genuine affordable PLM functionality for the SME. Forming a joint venture between NT Cadcam and Open Business Solutions, both  already major suppliers of CAD, PDM, ERP and supply chain applications, reflects the importance of the d2order solution and aims to differentiate it from traditional design and manufacturing applications. 

But what's the price tag for an SME? in2grate say that, typically, a complete  solution can cost anywhere between £50,000 and £500,000 although  they expect most of their orders will be for specific modules to bridge gaps and provide the integration between existing design and manufacturing systems.

Huge potential

There is no doubt about it that for this kind of investment, PLM should not just enable collaborative design but collaborative supplier and customer relationships. And this is where we came in - where PLM definitions cross over with CRM  and SRM (customer and supplier relationship management) definitions, depending on how you look at it. Predictably with this great potential comes a health warning. Just how transparently collaborative does a company want to be? Warts an all or not at all? How much data and in what detail does a company want to share?

Bob is pragmatic about this. His view is to ensure that by sharing information with others, the resultant benefit is not just to the "sharees" but comes directly back to the  "sharer" in one form or another to feed return on investment for the solution and this in turn comes back to knowing precisely what process you are enhancing and why you are enhancing it - design before implementation every time.

Equally, industrial espionage is certainly something not to be taken lightly. System security must be carefully thought through "before you give anyone outside your company access to your crown jewels," concludes Bob. 

However, maybe it's already too late to be precious or protectionist over anything other than your most precious IP "crown jewels." Perhaps manufacturers already have no choice.

Where next?

In a recent paper, HP Manufacturing Industries stated that: "the pace of business change not only impacts people and processes, it is also demanding new ways in which manufacturers must look at IT strategy and infrastructure as a means of anticipating, enabling, adapting and leading this change." As an IT company themselves, I can hear you saying that HP would say that wouldn't they, but stick with me on this one, it makes sense. They go on to say:

"As a result, companies will need to deploy flexible and collaborative systems that decrease the time to market for innovative products (with even shorter lifecycles), while reducing costs and opening up new revenue streams. Manufacturers cannot meet these new demands on their own. They must work together with suppliers, distributors, customers and partners to quickly and cost effectively bring enhanced products to market. Future market leaders will focus on their core competencies and collaborate across the extended enterprise to create value and dominate markets."

HP refer to this sort of "extended enterprise" as an "ecosystem" and that the supplier relationship management required to support that ecosystem will need to be based on a new level of trust and a much more open culture, not least a new approach to procurement based not just on squeezing cost, but delivering best value for the total supply chain. So, not just company vs. company or supply chain vs. supply chain, now its ecosystem vs. ecosystem.

Ask yourself - who do you have in your ecosystem and could PLM open up a new chapter of collaboration for your company?

My thanks to Bob Clements of in2grate for taking time to explain some of the finer points of PLM and contributing to this article.

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