Mastering Change and Configuration Management for Business Advantage

Mastering Change and Configuration Management for Business Advantage Matthew Austin – Program Director

Agenda • Understanding Change and Configuration Management (CCM) • Mastering CCM Through Best Practices

What is Change and Configuration Management? An orderly process for evolving a product including its data and associated process information from conception to retirement INPUTS Product Needs • Opportunities • Enhancements • Problems • Deviations and Waivers Product Data • Parts, Assemblies, Structures • Product Configurations • Product Documentation • Design Data • Product Requirements • Manufacturing Process Plans Work Instructions, Resources 3 OUTPUTS Change & Configuration Management New Approved Product Data • Parts, Assemblies, Structures • Product Configurations • Product Documentation • Design Data • Product Requirements • Manufacturing Process Plans Work Instructions, Resources Change History • Audit & Traceability • Verification © 2010 PTC

Multiple Trends Affect Change and Configuration Management PRESSURES BUSINESS IMPACT • Demand for more tailored products More product configurations / options to manage, more complicated change impact • Fierce global competition Shorter development cycles, need to accommodate changes faster • Growth in global outsourcing Need to effectively coordinate more participants in product development • Increase in product complexity Multiple authoring tools used, so data must be managed across disparate information systems • Increase in regulations Need to adapt products for compliance Takeaway: Take Control of Change to Stay Competitive 4 © 2010 PTC

Vertical Market Needs Affect Change and Configuration Management Strategies Aerospace/ Defense Automotive High Tech/ Electronics Industrial Equipment Traceability Flexibility High velocity changes Flexibility Configuration control Numerous variants Flexibility Numerous variants Consumer Products High velocity changes Flexibility Life Sciences Traceability Configuration control Numerous variants …Potential benefits are top line, not just cost savings “An efficient change process can cut up to 33% off of the typical product development cycle time. ” (Mc. Kinsey & Company) BUT “ 54% of companies lack single repository to review, analyze, approve and track changes across products” (Gartner Group) 5 © 2010 PTC

Product Configuration Models Vary Across The Value Chain Companies May Use Several Models Assemble-To-Stock Common Verticals Consumer Products Automotive Assemble-To-Order Configure-To-Order High Tech & Electronics Medical Devices Industrial Engineer-To-Order Contract 6 Aerospace & Defense Contract manufacturer © 2010 PTC

Common Change and Configuration Management Challenges Managing the Product’s Configuration Working With Partners How do I control and deploy the product’s configuration throughout its lifecycle? How do I work quickly and efficiently with partners while maintaining data security? Structuring a Reliable, Flexible Process Coordinating Changes Across Engineering and Manufacturing How do I create a reliable, flexible change management process for all users? How can I synchronize engineering and manufacturing to be faster, more cost-effective ? Managing Change Across Disciplines How do I manage and control change of my product data so it can be leveraged by the entire enterprise? 7 © 2010 PTC

Today’s Game Plan Challenge Approach Best Practices • For each challenge, identify potential action • For each action, share ideas on Best Practices* • Illustrate benefits you can realize with case study examples *Practice = proven Process Improvement using PLM technology 9 © 2010 PTC

Mastering CCM Challenges Challenge Best Practices Product Configuration Lifecycle Management Managing the Product’s Configuration Enable enterprise to create, understand track product configurations Structuring a Reliable, Flexible Process Implement a flexible, automated process that always delivers accurate, actionable information Standardized, Automated Change Processes 3 Managing Change Across Disciplines Enable enterprise to link integral product data and configurations so change is synchronized quickly and accurately across disciplines Integrated Cross-Discipline Change Management 4 Working with Partners Enable external parties to seamlessly interact with product configurations and changes throughout product development Partner Change Integration 5 Coordinating Change Across Engineering and Manufacturing Provide manufacturing with associative views of engineering data to plan, execute closed loop changes quickly 1 2 10 Approach Modular Product Architecture Definition Generic Product Platform Design Integral Engineering-Manufacturing Change Management Adopt PLM Technology for Data Replication © 2010 PTC

Mastering CCM Challenges Challenge Best Practices Product Configuration Lifecycle Management Managing the Product’s Configuration Enable enterprise to create, understand track product configurations Structuring a Reliable, Flexible Process Implement a flexible, automated process that always delivers accurate, actionable information Standardized, Automated Change Processes 3 Managing Change Across Disciplines Enable enterprise to link integral product data and configurations so change is synchronized quickly and accurately across disciplines Integrated Cross-Discipline Change Management 4 Working with Partners Enable external parties to seamlessly interact with product configurations and changes throughout product development Partner Change Integration 5 Coordinating Change Across Engineering and Manufacturing Provide manufacturing with associative views of engineering data to plan, execute closed loop changes quickly 1 2 11 Approach Modular Product Architecture Definition Generic Product Platform Design Integral Engineering-Manufacturing Change Management Adopt PLM Technology for Data Replication © 2010 PTC

1 Managing the Product’s Configuration Approach Provide a single system to accurately create, understand track product configurations and their change history over time Consumer demand drives need for flexible product options Benefits • Quickly retrieve, share accurate information at any time in the product’s history • Meet diverse configuration requirements across enterprise teams • Improve design speed and reuse by supporting modular product architectures • Manage product complexity and simplify variant and option design • Synchronize fast, accurate change to use-related technical publications 12 © 2010 PTC

1 Managing the Product’s Configuration Best Practice: Product Configuration Lifecycle Management As products evolve and mature, PTC’s single system provides robust, flexible support for simple or complex levels of configuration management Easily create product variants for complex configurations • Core capabilities (Assemble-to-Stock, Contract Products) – Versatile BOM creation: in Windchill, from CAD data or Excel – Easily define, navigate products by Baselines, Release Level, Effectivity … • Configure-to-Order/Engineer-to-Order Products – Fast, rules-driven variant creation maximizes data reuse • Assemble-to-Order Products – Easily create, manage and share option sets for each product – Integrated navigation, design and visualization of option combinations 13 F 1. 300. 200. G F 3. 300. 211. B F 3. 300. 238. F © 2010 PTC

1 Managing the Product’s Configuration Best Practice: Modular Product Architecture PTC can provide a proven methodology for defining a modular product architecture • Capture architecture requirements and variant needs • Translate requirements into key functions Product X Module 1 Comp. 2 Module 2 a Sub. Comp. 2 Module 3 • Develop module clusters to share work • Assess & select best modular architecture • Determine key interfaces Complex and uncontrolled dependencies across the assembly 14 Defined interfaces and dependencies between modules © 2010 PTC

1 Managing the Product’s Configuration Best Practice: Generic Product Platform Design PTC can provide an infrastructure that efficiently captures and manages the details of a product platform design Interface Management • Capture and manage high level platform architecture • Define module interfaces and control changes • Manage coordinated development of detailed product structure with CAD designs Engine Module 1 Cylinder Head Valve Train Cover Block Module 2 Optional Pistons Modules Piston X Piston Y Crankshaft Oil System Module 3 Cooling System Module … Exhaust System High Level Platform Product Structure 15 Detailed Platform CAD Structure © 2010 PTC

1 Managing the Product’s Configuration Case Study: Streamlining The Design Process at Maserati Racing is a branch of Maserati S. p. A (luxury sports car manufacturer) which has designed and produced the new Maserati MC 12. Business Initiative • Increase design reuse, rationalize internal change process and consolidate engineering data for better collaboration Solution • Deployed Windchill PDMLink as single data repository in conjunction with Pro/Engineer “PTC Global Services’ deployment of Windchill PDMLink has improved our internal change process, allowed us to monitor the lifecycles of single serialized objects, and manage various configurations of our racing car. ” Results • Increased commercial part reuse and design reuse • Improved early discovery of design conflicts • Streamlined internal change process • Distributed technical information to the shop floor – Giorgio Ascanelli, Technical Director Maserati Racing 16 © 2010 PTC

1 Managing the Product’s Configuration Case Study: A Single Repository Simplifies Change and Configurations at SANY Leading manufacturer of construction engineering machinery, including excavators, concrete mixers, concrete pumps and motor graders, sold worldwide. Business Initiatives • Centralize product data management • Improve collaboration across subsidiaries • Improve change management process to ensure BOM consistency and improve configuration management Solution • Centralized repository of product information for change/configuration and BOM management “Our Windchill solution gives us a better way to manage product data and to improve collaborative design capabilities. It is also a better bridge across CAD, CAPP and ERP systems. ” – Liang Bin, Assistant CIO SANY Heavy Industry Ltd. Co. 17 Results • Improved change management; integrated process management • Enabled faster BOM configuration and automated release of BOMs to ERP system • Enabled distributed collaboration © 2010 PTC

1 Managing the Product’s Configuration Case Study: Schneider Electric Make Its World Smaller in One System One of the world’s largest manufacturers of equipment for electrical power distribution, industrial control and automation Business Initiative • Consolidate 7 disjointed engineering systems into one • Eliminate disconnected methods of information sharing and collaboration • Ensure secure control and management of design data Solution • Migrated customized legacy system to a single PLM solution, ensuring seamless change management and synchronized Production Information Management (PIM) “Windchill helps us support our customer growth while providing overwhelming performance improvement. ” – Lionel Aubert Product Data Security Officer Schneider Electric Results • Reduced engineer-to-order (ETO) process time by weeks • System supports 6, 000 users to enhance global collaboration • Multi-million annual savings 18 © 2010 PTC

Mastering CCM Challenges Challenge Best Practices Product Configuration Lifecycle Management Managing the Product’s Configuration Enable enterprise to create, understand track product configurations Structuring a Reliable, Flexible Process Implement a flexible, automated process that always delivers accurate, actionable information Standardized, Automated Change Processes 3 Managing Change Across Disciplines Enable enterprise to link integral product data and configurations so change is synchronized quickly and accurately across disciplines Integrated Cross-Discipline Change Management 4 Working with Partners Enable external parties to seamlessly interact with product configurations and changes throughout product development Partner Change Integration 5 Coordinating Change Across Engineering and Manufacturing Provide manufacturing with associative views of engineering data to plan, execute closed loop changes quickly 1 2 19 Approach Modular Product Architecture Definition Generic Product Platform Design Integral Engineering-Manufacturing Change Management Adopt PLM Technology for Data Replication © 2010 PTC

2 Structuring a Reliable, Flexible Process Approach Implement a standardized, automated process to support rapid and accurate communication of changes and prevent undetected, costly late stage errors and project delays Change process must comprehensively cover upstream and downstream activities Benefits • Accurate, controlled changes in single system connected to product data • Optimal flexibility to cover full range of changes • Increased engineering productivity • Reduced change cycle times, less rework and scrap • Real time visibility to status across enterprise accelerates change process • Fully traceable change history 20 © 2010 PTC

2 Structuring a Reliable, Flexible Process Best Practice: Standardized, Automated Change Process PTC provides a flexible, automated, closed loop change process that instantly connects key stakeholders to secure, accurate, actionable information PTC’s Change and Configuration Management process flow • Synchronize change with product configuration data in single, integral system • Provide problem reporting, deviation/waiver requests and change requests, notices, activities • Apply predefined and configurable change process workflows, activities and process roles • Automate change routing and task notifications • Flexible support for simple and complex changes • Provide enterprise visibility to pending changes throughout the system 21 © 2010 PTC

2 Structuring a Reliable, Flexible Process Case Study: Windchill PDMLink Automates Change Process at Kirloskar Oil Engines Ltd (KOEL) KOEL is India’s leading manufacturer of diesel engines, engine bearings and generating sets for a broad range of industrial applications. Business Initiative • Replace manual change process with online tracking of engineering changes • Reduce change cycle time Solution • Change Management process automation through Windchill PDMLink • Separate change management process for Prototype and Production components “Windchill PDMLink helped us to automate and smoothen our engineering change process. It helped us to reduce cycle time by 40%. It’s comprehensive reports are helping us as knowledge bank to improve our designs. ” Results • Single, automated change management process for multiple locations • Easy tracking and monitoring of changes • Reduced change cycle time – Mr. R L Harolikar, Sr. GM (CRE) 22 © 2010 PTC

2 Structuring a Reliable, Flexible Process Case Study: Windchill PDMLink Automates Change Process at Pelco California- based Pelco manufactures advanced closed circuit television equipment, camera enclosures, domes, mounts, pan/tilts, multiplexers, and video matrix systems. Business Initiative • Pelco needed to improve its customer service and product quality through paperless automation Solution • Implemented Windchill PDMLink to support change management Results • Automated its change management process • Moved from a paper-intensive environment to paperless automation “Before our PTC solution, getting a status or an idea about what was holding up a process was virtually impossible. Windchill PDMLink has automated the change management process. ” • Improved the impact assessment of proposed changes – Pelco 23 © 2010 PTC

2 Structuring a Reliable, Flexible Process Case Study: Improving Global Change Management at Stryker Navigation is a worldwide leading innovator of medical products. Stryker focus on orthopedics, instruments, implants, physiotherapy, traumatology, and biotechnology. Business Initiative • Implement a global product lifecycle platform with global change management processes to conform with FDA regulations Solution • Implemented Windchill PDMLink Results • Access all product related data electronically in one platform “With our Windchill PDMLink processsolution, we will meet our expectations to optimize the product lifecycle process by leveraging our product quality. ” • 20% reduction in time taken for change and release process of documents and document search • Reduce product change process time by 15% – Klaus Welte, VP R&D Stryker Navigation 24 © 2010 PTC

Mastering CCM Challenges Challenge Best Practices Product Configuration Lifecycle Management Managing the Product’s Configuration Enable enterprise to create, understand track product configurations Structuring a Reliable, Flexible Process Implement a flexible, automated process that always delivers accurate, actionable information Standardized, Automated Change Processes 3 Managing Change Across Disciplines Enable enterprise to link integral product data and configurations so change is synchronized quickly and accurately across disciplines Integrated Cross-Discipline Change Management 4 Working with Partners Enable external parties to seamlessly interact with product configurations and changes throughout product development Partner Change Integration 5 Coordinating Change Across Engineering and Manufacturing Provide manufacturing with associative views of engineering data to plan, execute closed loop changes quickly 1 2 25 Approach Modular Product Architecture Definition Generic Product Platform Design Integral Engineering-Manufacturing Change Management Adopt PLM Technology for Data Replication © 2010 PTC

3 Managing Change Across Disciplines Approach Enable the whole enterprise to work with and view integral product data and configurations so changes can be synchronized quickly and accurately across disciplines. Benefits Marketing Mechanical Manufacturing Planning • Reduced errors, rework by leveraging a single source repository for key functions • More accurate product alignment across disciplines via seamless access to product information Electrical Sourcing • Improved knowledge of changes to product structure, MCAD/ECAD, software, requirements and documents as product matures Software Service Quality 26 © 2010 PTC

3 Managing Change Across Disciplines Best Practice: Integrated, Cross-Discipline Change Management PTC can implement fast, accurate change across disciplines with a single, integrated process to update the complete product definition Product Housing Viewables Battery Requirements Purchased Assy • A Single Source for Product Data – Single global BOM which integrates product data Analysis PCA Discloses & Declarations Schematic Pending Change PCB Approved Suppliers Classified Component Std Parts Attributes • Documents • Requirements AML / AVL • Visualization ASICs Firmware Assy – Robust configuration traceability Component • Product data integrally connected to change info through a powerful, flexible toolset Software Mechanical Parts – Global, enterprise visibility 27 Data Sheets AML / AVL • Heterogeneous MCAD, ECAD, Software – Formal change impact and root cause analysis CAD Model AVL Software Manual © 2010 PTC

3 Managing Change Across Disciplines Case Study: Cochlear Standardizes Internal Change Process Cochlear is the global leader in innovative, implantable hearing solutions Business Initiatives • Improve globally visibility of Bill of Information (BOI) for all product development teams • Improve speed of product design and formal product change “We needed a data management system that could help our global develop teams accelerate time-to-market by managing our detailed product data better. Windchill stood out as the best solution to provide our engineers online traceability and visibility to product data; not only increasing our ability to collaborate, but also helping us drive quality of product changes through the implementation of clear workflows. ” – Brent Barnes, Manager Documentation Systems Cochlear Limited 28 Solution • Implemented Windchill PDMLink to control, audit the complete BOI; increase speed and efficiency of document reviews and change control using electronic signatures Results • All product data managed in a single data vault • Executed design changes centrally and visibly across teams to reduce errors, enforce version control • Accurate tracking of product configurations across departments © 2010 PTC

Mastering CCM Challenges Challenge Best Practices Product Configuration Lifecycle Management Managing the Product’s Configuration Enable enterprise to create, understand track product configurations Structuring a Reliable, Flexible Process Implement a flexible, automated process that always delivers accurate, actionable information Standardized, Automated Change Processes 3 Managing Change Across Disciplines Enable enterprise to link integral product data and configurations so change is synchronized quickly and accurately across disciplines Integrated Cross-Discipline Change Management 4 Working with Partners Enable external parties to seamlessly interact with product configurations and changes throughout product development Partner Change Integration 5 Coordinating Change Across Engineering and Manufacturing Provide manufacturing with associative views of engineering data to plan, execute closed loop changes quickly 1 2 29 Approach Modular Product Architecture Definition Generic Product Platform Design Integral Engineering-Manufacturing Change Management Adopt PLM Technology for Data Replication © 2010 PTC

4 Working with Partners Approach Enable suppliers, partners and customers to seamlessly interact with product configurations and changes throughout the product development process. Benefits • Improve quality, reduce waste by ensuring partners have access to up-to-date, accurate information • Secure, collaborative environment allows partners to rapidly and directly apply changes, instead of “over-the-wall” • Eliminate confusion and costly delays by providing traceability as to what partners receive 30 © 2010 PTC

4 Working with Partners Best Practice: Partner Change Integration PTC can provide a tailored change process integration method appropriate to partner relationship • Share change and product data information in efficient, controlled manner (multiple approaches) • Integrate partners into change review, approval and implementation activities Requirements Data Sheet CAD Model Software C++ Code Viewable Test Plan Traceable Data Flow for All Change Sharing Scenarios Analysis “Strategic” Integral access Strategic Supplier Example – Submit problem reports, change impact analysis • Exchange design and change information offline • Use rich visualization to enhance Collaborative workspace Manufacturing Partner Example – Request variances collaboration, design reviews • Trace history of what was sent and when “Arm’s length” Package delivery 31 Supplier Collaboration Example – change impact analysis © 2010 PTC

4 Working with Partners Successful Change Management Customers On a Global Scale Designs, develops, and manufactures on-site electric power generation systems utilizing Proton Exchange Membrane fuel cells for stationary applications • ECN cycle time was cut by 62% • Variability in the time to complete an ECN was reduced by 76% 32 HP Imaging and Printing division spans 23, 000 products and tens of thousands of suppliers across 160 countries World's premier supplier of pumps, systems and services to move and control water and other fluids • Achieved an 80% improvement in design and process reuse • Part counts fell 2% to 18% • Implemented global engineering change process with 1 year payback • Time-to-market, product cost, and warranty cost reduced • Time to implement engineering changes reduced by 50% • Productivity rose between 20% and 30% • Significant cost reduction for scrap and rework costs © 2010 PTC

Mastering CCM Challenges Challenge Best Practices Product Configuration Lifecycle Management Managing the Product’s Configuration Enable enterprise to create, understand track product configurations 2 Structuring a Reliable, Flexible Process Implement a flexible, automated process that always delivers accurate, actionable information Standardized, Automated Change Processes 3 Managing Change Across Disciplines Enable enterprise to link integral product data and configurations so change is synchronized quickly and accurately across disciplines Integrated Cross-Discipline Change Management 4 Working with Partners Enable external parties to seamlessly interact with product configurations and changes throughout product development Partner Change Integration 5 Coordinating Change Across Engineering and Manufacturing Provide manufacturing with associative views of engineering data to plan, execute closed loop changes quickly 1 33 Approach Modular Product Architecture Definition Generic Product Platform Design Integral Engineering-Manufacturing Change Management Adopt PLM Technology for Data Replication © 2010 PTC

5 Coordinating Change Across Engineering, Manufacturing Approach Tightly align manufacturing process planning to engineering design changes by integrating both groups in the same automated change management process. Lower costs, shorter cycles if concurrent engineering and manufacturing processes are integrated early in design process Concept Development System Design Benefits • Earlier involvement of manufacturing Detailed Design – faster time to market – reduced tooling costs – higher product quality – reduced inventory – superior change documentation • Reduce overall change cycle time with tight coupling of engineering and manufacturing deliverables 34 Number of changes results in: Manufacturing Process Management Concurrent: less costly changes made earlier Production Accelerate Production ramp up Sequential : later, more costly changes delay launch Typical engineering change distribution throughout production development © 2010 PTC

5 Coordinating Change Across Engineering, Manufacturing Best Practice: Integral Engineering to Manufacturing Change Management PTC can involve manufacturing stakeholders earlier by enabling concurrent development of e. BOM and m. BOM Changes identified early in design process “ripple” through to improve manufacturing planning Engineering BOM Manufacturing BOM Process Plan • Common change process for engineering and manufacturing teams – Associate manufacturing process data with Revision change records • Easily synchronize e. BOM/m. BOM product structure changes • Manage variance decision Resources Revision – Incorporate deviations and waivers using same change process for Eng and Mfg • Provide fully traceable change history 35 © 2010 PTC

5 Coordinating Change Across Engineering, Manufacturing Case Study: Grand River Unifies Engineering and Manufacturing Change Processes Grand River Group (GRG) is China’s largest motorcycle manufacturer with a production capacity of 3 million engines and 3 million motorcycles per year. GRG is also the largest partner of Suzuki Motor Corp. in China. Business Initiative • Shorten time to market by accelerating the engineering to manufacturing change process • Improve reliability of manufacturing data, process plans and work instructions Solution • Implemented Windchill PDMLink and MPMLink to streamline and standardize manufacturing engineering deliverables and implement a closed loop change process Results • Increased production and manufacturing engineering efficiency “Our PTC Windchill MPMLink solution is just the thing we need to help us improve our entire manufacturing process. ” – Chen Hai Lan Grand River Group 36 • Improved product quality and consistency of manufacturing data • Dramatically reduced the time to propagate a new product derivative to manufacturing © 2010 PTC

Key Change and Configuration Management Takeaways Challenge 1. Take control of configurations 2. Automate change in single system 1 5. Synchronize changes between Engineering and Manufacturing 6. PTC has proven experience enabling best practices with PLM technology Product Configuration Lifecycle Management Modular Product Architecture Definition 2 Structuring a Reliable, Flexible Process Implement a flexible, automated process that always delivers accurate, actionable information Standardized, Automated Change Processes 3 Managing Change Across Disciplines Enable enterprise to link integral product data and configurations so change is synchronized quickly and accurately across disciplines Integrated Cross-Discipline Change Management 4 Working with Partners Enable external parties to seamlessly interact with product configurations and changes throughout product development Partner Change Integration 5 Coordinating Change Across Engineering and Manufacturing Provide manufacturing with associative views of engineering data to plan, execute closed loop changes quickly Integral Engineering-Manufacturing Change Management 7. PTC can help you plan and execute a strategy for optimal success 38 Enable enterprise to create, understand track product configurations Best Practices Generic Product Platform Design 3. Unify change across enterprise 4. Enable secure change collaboration with partners Managing the Product’s Configuration Approach © 2010 PTC

Next Steps: Explore the Path to Value Informed by 25 years of experience supporting thousands of customers PTC offers: • A comprehensive Roadmap containing a structured collection of intellectual property • A guide to linking Corporate Strategy initiatives to critical business processes and needed technologies 39 © 2010 PTC

Next Steps: Three Step Approach 40 Introduce Value Framework PTC Value Roadmap Session Introductory discussion of PTC’s Value-based approach to product development Collaborative 30 -minute session to uncover your business’ unique value drivers PDS Vision Assessment ~10 member * 1 -2 hours each, consultative session, to quantify/rate/prioritize your unique path to value © 2010 PTC

Next Steps: Partnering With PTC Contact PTC Sales so we can understand your goals and needs in a formal Change and Configuration Management assessment http: //www. ptc. com/go/CCM/contact PTC Best Practices in PLM: Find more information on CCM and these other key PLM topics: Change and Configuration Management: http: //www. ptc. com/go/ccm Global Product Development: http: //www. ptc. com/go/gpd Multi-CAD Product Design: http: //www. ptc. com/go/mcpd 41 © 2010 PTC