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Source : SofTech
Top 10 PLM Pitfalls To Avoid
PLM Pitfalls is also known as :
Lifecycle Management,
PLM Application,
Hosted PLM,
Integration PLM,
PLM Product Lifecycle Management,
PDM PLM,
ERP PLM,
PDM Software,
Planning Pitfalls,
PLM Analysis,
PLM Benefits,
PLM Best Practices,
PLM Business Process,
PLM Companies,
PLM Consultant,
PLM Consulting,
PLM Cost,
PLM CRM,
PLM Engineering,
PLM Evaluation,
PLM Financial,
PLM Global,
PLM Implementation,
PLM Industry,
PLM Knowledge,
PLM Management,
PLM Manufacturing,
PLM Marketing.
Foreword
The original 'Top 10 PLM Pitfalls to Avoid' white paper summary was developed in
conjunction with a Web seminar series on Product Lifecycle Management (PLM) given
collaboratively by John Stark Associates and SofTech, Inc. in late 2005. Since the paper's
first issue, people from over 1,000 companies worldwide have downloaded or requested
copies of it. In addition, it has been reprinted in a number of publications, been called
"irresistibly practical", and sparked a series of discussion threads in the John Stark 2PLM online
newsletter (www.johnstark.com).
When first produced, we had no idea that this paper would generate the level of interest it
has. We believe that its appeal, especially to the busy manager or executive, is that it
provides a good dose of common sense in a quick-read format, providing practical advice that
can help you shave significant time off your PLM planning and implementation. The advice it
contains captures the vast experience of John Stark Associates and SofTech, Inc., two
companies that have been helping companies achieve PLM success - well, since before PLM
was an acronym.
From the level of interest generated from the first version and the input received from the
discussion threads and live polling conducted during the PLM Web Series, it seems that the
number one barrier to PLM may be, very simply, the need for more information, especially
at the executive CXO level in companies.
So with the help of your input, we thank you and offer this newly updated 'Top 10 PLM
Pitfalls to Avoid - Version 2' white paper summary.
Introduction
Product Lifecycle Management (PLM) is a business activity so implementation strategies will in many cases be
unique from company to company. However, there are core fundamentals of PLM that will always be the same
and as such it will not be uncommon for companies to encounter some of the same obstacles or pitfalls along
the way. This paper is intended to provide you insight into some of the more common pitfalls companies fall
into when launching a PLM to help you avoid them and increase your chance of success.
The pitfalls addressed in this paper are not about PLM process details, the pitfall of not thinking through data
model organization for example. But instead are the pitfalls we have seen companies fall into when planning
for and initiating PLM. Since this paper was first published, you'll notice a few pitfalls have been dropped, with
new ones added and the order shifting somewhat. This is not unexpected. As PLM itself evolves, people learn
more and their experiences with PLM increase. Here are the newly updated Top Ten PLM Pitfalls:
- Not including executive education as a top priority of your PLM program planning
- Not defining and communicating critical PLM success factors
- Not measuring your PLM success
- Not promoting your PLM success
- Proceeding before everyone is educated and agrees
- Thinking PLM is only an engineering enterprise
- Not planning to overcome setbacks and rejection
- Proceeding without a sense of reality
- Not considering risk avoidance as a key factor for PLM
- Thinking you can hold off on PLM a little longer
The Top 10 PLM Pitfalls
So here in detail are the revised Top 10 simple but very powerful 'PLM Pitfalls to Avoid'. With an understanding
of where these nasty little pitfalls lie, it will hopefully help you steer clear of them to improve your PLM
success.
Pitfall # 1 - Not including executive education as a top priority of your PLM program planning - A
majority of the respondents to live polls conducted during the John Stark Associates/SofTech PLM Web
seminar series identified a lack of understanding of PLM at the executive level as their company's single
biggest barrier to PLM. A majority of participants said that what they needed most after the Web seminar
was a PLM summary document that they could give to their executives.
This kind of request points out one critical element you will need to consider when beginning a PLM
implementation initiative - the need to educate, educate, educate! We recommend that one of the
very first and critical elements of your PLM initiative should be an upfront presentation to top
management/VPs to school them on PLM, what it is (what it isn't), and what it can do for your
company.
In this presentation, you will need to make it crystal clear that PLM has key strategic business benefits
for your company. Yes, PLM is going to help your engineering department get their computer-aided
design (CAD) files under control, process engineering change orders (ECOs) quicker, and improve
component reuse, etc. -- but what will the overall business impact be? That's the message that
executives must hear. For example, when making this presentation, talk to them in terms of:
- How PLM can help your company achieve a higher success rate with development projects - to
more consistently meet or exceed stockholder (and customer) expectations for on-time product
delivery.
- How PLM can help you develop more new products faster, of higher quality - enabling your
products to survive in the market longer, with minimal support and cost, and consequently,
increased revenue and profitability
- How PLM can improve product quality, reducing the risk of product recalls - and liability suits
- How PLM can smooth efforts to globalize and help your company to compete better in
expanding world markets and better manage country-specific product configurations
- How PLM can help your company to maintain regulatory compliance, without consequences of
non-compliance and potential line shut downs, or worse yet, liability suits.
There are a number of resources available to help you prepare for this presentation. John Stark
Associates for example has produced a paper entitled Making Progress with PLM, which provides extensive background information on PLM to help educate your executives, as well as a supplemental
document with slide-by-slide instructions for preparing this crucial presentation to your executive staff
(www.johnstark.com). There are white papers (www.softech.com), Web-based seminars, on-line
newsletters, industry groups, and other resources dedicated to discussions on PLM that can help you.
'Google' PLM, you'll be surprised how much information is available on it, especially on the Internet.
Pitfall # 2- Not defining and communicating critical PLM success factors - The title of this pitfall
was changed from 'Not having clear project objectives' to 'Not defining and communicating critical
PLM success factors'. Previously, this pitfall was in fourth position but rose to Pitfall #2 at the
suggestion of readers and feedback we received.
As a PLM Initiative Manager, defining and communicating a set of critical success factors (CSFs) for your
PLM project is imperative. There is often confusion between goals and objectives and critical success
factors. John Rockart is considered the father of critical success factor theory, with his theory detailed
a number of years ago in the Harvard Business Review. Rockhart's definition of critical success factors
was brilliantly simple and as poignant today to drive an entire company as it is your PLM initiative. He
defines critical success factors as: "The limited number of areas in which results, if they are
satisfactory, will ensure successful competitive performance for your organization. They are the few
key areas where things must go right for the business [and your PLM project] to flourish."
All too often, program plans include task-oriented goals and objectives and timetables but do not touch
upon critical success factors, which are really at the heart of why you're even thinking about
implementing PLM. Compiling a list of well-thought out critical success factors for your PLM project
plan means not only you but also your upper management and executive staff will know exactly what is
expected to be achieved. It will show how PLM ties into your company's overall mission and equally
important, how it will change things to create unique competitive differentiation for it going forward.
Here are some ideas for critical success factors that you might consider for your PLM project:
- Consistent engineering change processes globally and among suppliers
- Smooth release to manufacturing through effective design and manufacturing collaboration
- Well coordinated business and supply chain
- Well coordinated business and supply chain
Pitfall # 3- Not measuring your PLM success - Defining your critical success factors is a must - but
pointless if you don't measure your progress or success against them. It's somewhat human nature to
crash through a list of tasks, believing that crossing them off a list is an accomplishment in itself. But
it's important to remember, and a lesson we've all learned from Six Sigma, that it is nearly impossible
to manage what you don't measure. It's almost always true that organizations that focus on continuously measuring results to realign initiatives and priorities get a much higher success rate on
programs than those that leave it to chance.
It's the same for PLM. Don't fall into the pitfall of thinking that you're just too busy, or hesitant for
that matter, to measure your PLM program progress and results. Even bad news gives opportunity to
make course adjustments, and hopefully sooner than later. These measurements are also fodder for
promoting your PLM success (addressing Pitfall # 4 below)!
Pitfall # 4- Not promoting your PLM success - It's human nature; people like being associated with
success. Therefore it is very important to promote your team's PLM success and progress as you move
forward - to your management staff, employees, and even customers or suppliers for that matter.
Announce your PLM program early and often. Rally your PLM team. Get everyone excited about the
changes coming, not only in Engineering but in other departments as well. Put up posters showing your
progress. Create a Web site showing PLM program plans. Activities like these help build interest and
momentum for your PLM project.
As we said before, you'll know you've succeeded with PLM when other departments come looking for
assistance in applying PLM to enhance their particular business area. But they won't come knocking -
unless they hear and are excited about the potential of PLM for them!
Pitfall # 5- Proceeding before everyone is educated and agrees - Hillary Clinton coined the
phrase about educating our children, "It takes a village". It's the same for supporting and getting PLM
underway. No, we're not saying it takes a village to implement PLM - or it at least it shouldn't. What
we learned from Pitfall #1 above is that it is impossible to make a widespread change, like PLM,
without consensus resonating from the top down. That's top down - but also think bottom up.
Once you have that CXO champion, the job starts in building an environment for acceptance of PLM and
gaining agreement from lower levels of management and as important, from people who will be using
PLM in the workplace. Waiting until you implement to develop a user acceptance plan is very
dangerous; don't do it. Plan for training and user acceptance as early as possible in your PLM initiative
with a plan that touches upon:
- A single, unchanging theme for PLM
- Widespread awareness of the reasons for PLM
- A motivating vision of the future with PLM
- Willingness to learn
- Extensive training programs
- Changes to the reward and recognition system
Sounds contrary, but even if you encounter a person who may not think PLM is a good idea ?? have them
join the team. Eventually, you will need everyone marching in the same direction. We in fact heard of
one company's PLM Initiative Manager putting his most reluctant PLM naysayer on his PLM vendor
evaluation team. It provided an opportunity to educate this person, who might have otherwise been a
negative influence. With PLM now on this person's charter, he had a whole new motivation for making
PLM a success!
Pitfall # 6- Thinking PLM is only an engineering enterprise - Because PLM grew up from PDM
(product data management), which was primarily used in engineering, there is misconception that PLM
is just a next generation solution for centralizing engineering CAD drawings, version/revision control,
and automating ECO approvals. But that's just one small aspect of PLM and a pitfall companies fall into
by not understanding the difference and greater opportunity for PLM in their business.
PLM is far more holistic: PLM is about controlling and maximizing corporate assets - not just managing
engineering data. These assets can be information and processes and products. Information can be
engineering drawings but also documented quality procedures or end-of-life plans. Processes can be
customer requirements management, engineering change management, or processes for managing
product failures in the field. Products can be the physical product but also packaging and training
materials and even services.
PLM is about better management of all these corporate assets, throughout your products' entire
lifecycle (imagination, definition, realization, support/use, and retirement/disposal). PLM can
positively impact revenue, organizational structure, people, methods, applications, and information
from day one to a product's end-of-life.
PLM can touch upon your entire business model and every job function in your company and even your
suppliers or customers for that matter. You'll be hard pressed to find one individual on your company's
payroll that wasn't hired to add value to your product efforts in some way. If you produce products,
everyone should be there to support that effort one way or another. It's the same with PLM.
You'll gain the biggest benefit from PLM when you look at it with a wider vision. For example, one
SofTech customer has implemented 42 applications using SofTech's ProductCenter PLM solution,
applying PLM to increase efficiency in not only Engineering but also in Marketing and Sales,
Manufacturing Operations, for regulatory compliance, Test, Quality Assurance, Human Resources,
Customer Support, external suppliers, and even in Finance. That's maximizing the value of PLM!
Because PLM touches on many areas of a company, it needs to be treated as an enterprise initiative,
not just an engineering or IT effort. It is important to keep this factor in mind when preparing your PLM program plan, in educating management, and assembling your PLM teams; reasons why also a crossfunctional
representation on your PLM team works best.
And because PLM has such far reaching implications (in the positive sense), it's very easy to get
overwhelmed or confused by it. But when PLM looks too daunting, keep in mind that there are
different approaches to implementing PLM (top down, bottom up, pilot program, consulting, return on
investment assessment, focus on high priority areas, and others) that can help you reap incremental
benefit along the way. You can spread out your investment and implement in a much easier-to-manage
phased approach. Remember that Rome wasn't built in a day. Neither will your enterprise-wide PLM
implementation. But, there are ways to build incremental success along the way.
Pitfall # 7- Not planning to overcome setbacks and rejection - This pitfall was previously called
'not planning for setbacks and rejection' but was modified at the suggestion of a reader of John Stark
Associates' 2PLM on-line newsletter to "Not planning for overcoming setbacks and rejection". Very
true. Just as with any major program, setbacks are inevitable in a PLM Initiative, as is rejection. Don't
be shocked when setbacks/rejection occur and plan for their inevitability with education and realistic
program schedules and plans.
Recognize that there may be roadblocks along the way and all sorts of 'personalities' that you will have
to deal with in your 'village' including leaders, sponsors, agents, champions, accepters, blockers, and
sleepers. As one 2PLM reader commented, you can be guaranteed that there will be one Neanderthal
(or two) along the way that will have to be dragged along kicking and screaming; expect that too.
Success is achieved by overcoming obstacles and winning over these people, or figuring out how to
make it in spite of them!
Pitfall # 8- Proceeding without a sense of reality - Many PLM initiatives fail because companies
have an unclear sense of the reality of their business and of PLM. If the project team does not fully
understand the reality of how their business currently works, what makes it tick, what is working, what
is not working, what the corporate objectives are, etc, no new technology, infrastructure, or system
will help. Understand your business and then more about PLM to avoid these types of problems.
These are some things that may be happening in a business that can cloud a company's thinking when
it comes to PLM, making it more difficult to implement successfully. Recognize any of them?
- Incorrect definition of needs
- Unclear justification for introducing PLM
- Underestimate of management and training requirements
- Lack of skills and knowledge
- Lack of implementation support tools
- Lack of understanding of available solutions
- Departments disagreeing about working methods
- Difficulty of objectively identifying benefits of PLM systems
- Lack of clarity about PLM scope, and what to integrate
- Underestimate of the required investment
- Uncertainty about the Return On Investment (ROI) of PLM
An outside expert might be helpful too. For example, John Stark Associates has developed an
independent PLM Needs Assessment program designed to help companies determine opportunity and
problem areas in their business that can be addressed or benefit by PLM. After analyzing your business
case, John Stark Associates will prepare a PLM Management Summary, with detailed plan and ROI
analysis and then a presentation of the findings to your executives. This is helpful to affirm things you
know about your business, but also gives opportunity for an independent expert to help uncover things
you don't - for even greater opportunity with PLM!
Pitfall # 9 -Not considering risk avoidance as a key factor for PLM - One of the single most
valuable benefits of a PLM solution is risk management. Managing a product all the way across its
lifecycle allows a company to take control of what happens to it at each and every phase. PLM lets you
build in your experiences and adapt your processes accordingly so as not to repeat the same mistakes
twice. It can help you better manage regulatory requirements that may impact product safety such as
FDA compliance.
So keep this in mind (and communicate whenever possible) that if your company loses control of a
product, there can be very costly risks. Here are a few of the key and exceptionally important risks
that PLM can help you avoid:
- A product not behaving as expected
- Losses due to damages resulting from product use
- Losing regulatory certification
- Damage to the company's image
- Customers lost due to product problems
- Revenues lost to low-cost competitors
- Reduced profit due to costs of recalls and legal liabilities
- Management appearances in court or even incarceration
Pitfall # 10 -Thinking you can hold off on PLM a little longer - You may understand the value
of PLM but are hoping to hold off on PLM until business gets a bit better or for some other reason
(lack of resources, lack of management commitment, other pressing projects, etc.).
However, it's now common knowledge that PLM is an essential value-adding investment that can
not be put off or avoided. That is, if you plan to remain competitive, plan to make a profit, or plan
to have successful products. No doubt, your competitors are on to it, and you should be too - and
definitely, sooner than later.
Summary
Now that you have read the Top 10 PLM Pitfalls to Avoid in detail, here are the most important
summarized 'take away' messages:
Pitfall # 1 - Not including executive education as a top priority of your PLM program planning
- Prepare for upfront presentation to top management/VPs to school them on PLM and make sure
you address the business benefits of PLM.
Pitfall # 2 Not defining and communicating critical PLM success factors - If you are a PLM
Initiative Manager, defining and communicating a set of critical success factors (CSFs) for your PLM
project should be a priority for you. CSFs should not be confused with goals and objectives.
Pitfall # 3 Not measuring your PLM success - Remember that it's nearly impossible to
manage what you don't measure.
Pitfall # 4 Not promoting your PLM success - Promote your success. Rally your PLM team. Get
everyone excited about the changes coming with PLM.
Pitfall # 5 Proceeding before everyone is educated and agrees - Waiting until you
implement to develop a user acceptance plan is very dangerous; don't do it.
Pitfall # 6 Thinking PLM is only an engineering enterprise - PLM can touch upon every
product process, person, and bit of information created and used throughout the entire product
lifecycle and even beyond. Therefore, it's definitely not just an engineering initiative. It is an
enterprise initiative and should be treated as such. It is important to maintain a wider vision for
PLM to really maximize its value.
Pitfall # 7 Not planning to overcome setbacks and rejection - Plan for their inevitability
with education and realistic program schedules and plans.
Pitfall # 8 Proceeding without a sense of reality - Many PLM initiatives fail because
companies have an unclear sense of the reality of their business and of PLM. Get to know your
business or use an outside consultant to help you.
Pitfall # 9 Not considering risk avoidance as a key factor for PLM - One of the single most
valuable benefits of a PLM solution is risk management. Communicate that PLM can have a
significant impact in helping your company avoid risk. Should you choose to gamble, risk can be
very costly.
Pitfall # 10 Thinking you can hold off on PLM a little longer - No doubt, your competitors
are on to PLM. If you expect to compete and remain in business profitably, you will need to
consider PLM sooner than later.
About John Stark Associates
Dr. John Stark, president of John Stark Associates (www.johnstark.com) is an internationally recognized
thought-leader and writer on the topic of Product Lifecycle Management (PLM). In 2004, he published
Product Lifecycle Management: Paradigm for 21st Century Product Realization. This book is first to
describe a new 'cradle to grave' holistic paradigm of PLM, with the primary objective being to increase
product revenues and the value of the product portfolio. Previous thinking had been departmental,
atomistic and unconnected, with efforts to develop new products and to increase innovation even being
seen in some companies as waste, a profit-reducing cost to be cut or eliminated. In this new PLM paradigm
described by John Stark, PLM is seen as an essential value-adding investment. Without it, there would soon
be no products to offer customers, and no products for which to provide services.
John Stark is an independent management and technology consultant. Prior to launching John Stark
Associates in 1991, he worked with developers and providers of systems and consulting services for product
development, engineering management, CAD, PDM, process definition, JIT and process control. In his
consulting career, he has worked with many companies including ABB, BMW, Braun, Coca-Cola, Eaton, Ford
Motor Company, HP, IBM, Kodak, Legrand, Nestle, PSA, Renault, Saab, Schindler, Sikorsky, Valeo and
Xerox. He currently works with manufacturing companies on the practical implementation of the PLM
paradigm and its further development.
About SofTech, Inc.
SofTech, Inc. is a proven provider of product lifecycle management (PLM) solutions with its flagship
ProductCenter PLM solution, and its computer-aided design and manufacturing (CAD/CAM) products,
including CADRA and Prospector.
SofTech's solutions accelerate products and profitability by fostering innovation, extended enterprise
collaboration, product quality improvements, and compressed time-to-market cycles. SofTech excels in its
sensible approach to delivering enterprise PLM solutions, with comprehensive out-of-the-box capabilities,
to meet the needs of manufacturers of all sizes quickly and cost-effectively.
Over 100,000 users benefit from SofTech solutions, including General Electric Company, Goodrich,
Honeywell, Siemens, Sikorsky Aircraft, U.S. Army, and Whirlpool Corporation. Headquartered in Tewksbury,
Massachusetts, SofTech (www.softech.com) has locations and distribution partners throughout North
America, Europe, and Asia.
John Stark Associates
www.johnstark.com
pdm@2pdm.com
SofTech, Inc.
www.softech.com
info@softech.com
Copyright ' 2006 SofTech, Inc. and John Stark Associates.