Introduction
Henry John Heinz believed that "To do a common thing uncommonly well brings success." And since 1869, the H.J. Heinz Company has supported that belief. Today, Heinz is a premier international food company, with number-one and number-two brands in more than 50 countries.
In early 2000, key Heinz leaders recognized a challenge in their business–namely tracking product specifications, formulas and suppliers across a diverse, global business– and set out to solve it. Along the way, they standardized how they developed and tracked product specifications, reduced the number of ingredients they purchased, increased global communication about product and supplier information, and improved the processes they use to develop and introduce new products to the market. As stated in the Heinz 2003 annual report, “Heinz has launched VIPER (Vendor Improvement and Product Enhancement and Research), a global computerized platform designed to enable the company to dramatically simplify its myriad product specifications. Heinz also reduced its worldwide SKUs by nearly 30% in Fiscal 2003 and is targeting an additional reduction of 10% by Fiscal 2005”.
In short, the Heinz VIPER project is achieving strategic value for their business by combining new processes and technology to form innovative "ways-of-working." Heinz did not set out to implement Product Lifecycle Management (PLM), Collaborative Product Commerce (CPC), Product Data Management (PDM), or any other suite of software solutions. Heinz's core objective was to simplify operations by enhancing communication, coordination, and visibility.
In the end, Heinz has accomplished what few others in their industry have been able to do–continually leverage product information across the entire lifecycle. The fact that these new business processes and technologies are now known as “PLM”–other than giving us a good umbrella under which to discuss how Heinz improved their business–is not important. What is important, of course, is the value that Heinz has recognized from their initiatives:
Reducing complexity in product portfolios and raw material management
Decreasing the proliferation of new materials and sourcing relationships
Cross pollinating best practices among and between business units
Streamlining the way Heinz brings new products to market
PLM concepts and benefits have been appearing in the annual reports of automotive, electronics, and other high-tech discrete businesses for some time. They are now starting to become more common in the Consumer Goods, Food and Beverage industries. Those that questioned the value of PLM for these industries thought that process industries were too “simple.” In fact, the unique requirements and inherent variability of process industries underscore the benefits of Product Lifecycle Management (PLM).
* Note: Prodika was acquired by Agile, who was then acquired by Oracle.
[post_title] => Product Lifecycle Management Proving Value at Heinz
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[post_content] => Regulatory Compliance Across the Product Lifecycle: Reduced Risk and Lowered Costs Through Proactive EH&S examines the importance that regulatory compliance and product related EH&S play in protecting the value available from PLM across the product lifecycle. Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of charge, no registration required).
Table of Contents
Executive Overview
Compliance Is Critical to Sustained Product Value
Non-Compliance Surfaces at Inopportune Times
Moment of Regulatory Crisis– Found in Design
Moment of Regulatory Crisis– Found in Production
Moment of Regulatory Crisis– Found in Logistics
Moment of Regulatory Crisis– Found at Customer
Implementing Design for Compliance
Implementing Proactive Compliance Monitoring
Documenting Compliance
Recommendations
About the Author
Executive Overview
The value that Product Lifecycle Management (PLM) initiatives provide to manufacturers comes in many forms, including: faster introduction of products, reduced product cost, increased product sales, higher product quality, reduced waste and more valuable product portfolios. These are some of the more positive aspects of PLM that people like to talk about. One area that doesn’t get as much attention is compliance.
Regulatory compliance, while nobody would dispute the critical need for it, is not as exciting or enjoyable to discuss. The problem with leaving compliance unspoken is that a significant amount of the value associated with Product Lifecycle Management is dependent on addressing compliance in a cost-effective manner. In fact, all of the benefits of PLM could be quickly erased by significant non-compliance events that impact the company through fines, penalties, negative publicity or prohibition to sell a new product in key markets. Compliance risk may not be a glamorous topic, but it is critical to the development and sale of profitable products and responsible, sustainable corporate profitability.
Few would disagree with placing compliance to regulations as a goal for a PLM initiative, but at what level of priority? At what cost? For which jurisdictions? Without proactive management, regulatory problems are often found at the most inopportune times. This paper will review real examples of “moments of regulatory crisis”, their impact on the business, and the value that focusing on compliance throughout the life of the product can provide. Design for compliance and proactive monitoring can help companies navigate the myriad of regulatory requirements required for profitable business.
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[post_content] => What's Wrong With Application Software - A Possible Solution? discusses how model-based architectures offer potential benefits to companies by more naturally assembling solutions into business processes. Originally published on Technology Evaluation Centers (TEC). Click the report title above to download the full PDF (free of charge, no registration required).
[post_title] => What's Wrong With Application Software?
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[post_content] => Tech-Clarity's Jim Brown contributes a column to Advantage for the Product Lifecycle. The first column, Executive Perspective: Successful PLM Starts with the End in Mind, was reprinted in Cadalyst. The article suggests that companies develop their PLM strategies to support their business strategies, and offers some examples of the business value available from PLM. The key advice is to focus PLM implementations on business value instead of "going live" with the software, which is only a means to the end - improving business performance.
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[post_content] => Jim Brown presents at an invitation-only SAP customer event at SAP North American headquarters in Newtown Square, Pennsylvania. The presentation focuses on the top myths regarding product lifecycle management (PLM).
[post_title] => The Value of PLM in Product and Service Leadership - Myths of PLM
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[post_content] => The Service Lifecycle Management (SLM) Approach: Strong Customer Relationships Result In Profit In The Service Industry overviews an approach to improve the profitability of services businesses by concurrently increasing service and lowering costs. Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of charge, no registration required).
Table of Contents
Executive Overview
Improving Profitability in the Product Aftermarket
Never Ignore a Call for Help
Reduce Waste in the Call Center
Avoid the Service Call (or at least Reduce the Urgency)
Make the Right Calls First
Close the Call the First Time
Keep Technicians Productive, not Just Busy
Turn the Service Call into an Opportunity
Turn Service into Cash – Rapidly
Stop Revenue Leaks
Enhance the Customer Relationship
Grow Revenue by Restarting the Service Lifecycle
Turn to Proactive Management
Driving SLM Changes into the Business
Services Can’t Remain a Stepchild
Make the Move to SLM – Change the Business Processes
Enable the Change with Technology
Get the Right Software
Get the Right Partner
Summary and Additional Information
Summary
About the Author
Executive Overview
Customers get invoices for service that should be covered under warranty. Out of warranty work is not billed. Sales opportunities for supplies, additional products and services are not being recognized. Upgrade and replacement opportunities are not offered to the right customers. Service contracts lapse without renewal notices or attempts to upgrade. Costs are high because of unnecessary paperwork, duplication of efforts and poor service call scheduling. Customers’ service level expectations are not being met. Is this any way to service customers that rely on you to keep their mission-critical equipment in top performance? More importantly, is this any way to service customers and run a profitable business?
Profitability in the services business comes from developing and maintaining long-term customer relationships. Unfortunately for many companies, providing service to customers is an afterthought and hasn’t gotten the attention that it deserves. As manufacturers, distributors and resellers are discovering, there are hidden opportunities for greater revenue and market share available by focusing more attention on the aftermarket. Leading companies are beginning to view service operations as a strategic opportunity and focusing on improving their processes to serve their customers. This strategic approach to service, known as Service Lifecycle Management (SLM), holds significant, untapped business improvement opportunities.
The bottom line results of an SLM Strategy are compelling – increased revenue, lower costs and improved customer satisfaction / retention. This white paper explores the potential results and the path to achieving them. The paper is divided into two major sections. The first section explores the value of a Service Lifecycle Management Initiative. It highlights tangible improvement opportunities for companies to address in their businesses to improve revenue, decrease costs, and increase customer satisfaction and retention while a product is being serviced for a customer. The second section will highlight processes and technology required to successfully make the necessary changes in the business.
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[post_content] => A quick peek into some research on Social Business Collaboration and Advanced PPM. What do these two very interesting topics have in common? Live webcasts featuring Jim Brown of Tech-Clarity next week, Thursday and Friday February 16-17.
OK, I admit it was a cheap trick, but I hope it convinces you to learn about one (or both) of these exciting topics:
Nuage Social Business Collaboration Launch
Jim Brown will present views from his recent report on social business collaboration and the product lifecycle as a guest host of the launch of software company Nuage Corporation. Nuage is a very interesting new company with a very different view on how social computing can drive innovation and help product development teams work together and collaborate effectively, with or without a PLM system.
Register for the Webinar
Taking PPM to the Next Level
Jim Brown presents his views on Advanced PPM on this joint SAP / SmartOrg webinar. He will share his views from his report on improving product development decision making. This is a repeat performance of a popular subject, and will also explain how Advanced PPM can fit in as a workbench to extend SAP PLM.
Register for the Webinar
So I hope you can join us for these educational events, they should be exciting. Please take a look to find out about more Tech-Clarity speaking engagements.
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Tech-Clarity shares our research, experience and insights with manufacturers and other industry clients to educate them on the business value available from the intelligent use of enterprise software. Clients benefit by focusing on the value of solutions as opposed to the technology itself.
Strategy and Advisory Services
Tech-Clarity helps software vendors and service companies by sharing our research, experience, and insights on the business value available from the intelligent use of enterprise software. Software vendors and service providers frequently invite Tech-Clarity to educate their customers and prospects on the business value of the solutions they offer, and benefit from clearer messages and more compelling descriptions of the value they offer.
Prospect and Customer Education
Jim Brown is the President of Digital Transformation Research for independent research firm Tech-Clarity. He covers digital transformation across the product digital thread for manufacturing and industrial companies including PLM, PDM, product development, portfolio management, digital manufacturing, IoT, EAM, SLM, and other solutions.
Jim founded Tech-Clarity in 2002 and has over 30 years of industry experience in the manufacturing and software industries. He began his career in manufacturing engineering and software systems at GE before pursuing management consulting at Andersen Consulting (Accenture). He subsequently served as a strategy, marketing, and product development executive for software companies specializing in ERP, PLM, Supply Chain, and related manufacturing solutions. He has a BS in Mechanical Engineering from the University of Maryland, College Park.
Jim is actively researching the impact of digital transformation and technology convergence in manufacturing. His research analyzes the business value available from new initiatives and technologies including cloud computing, advanced analytics, AI, product innovation platforms, service transformation, augmented reality, the digital twin, and the digital thread.
Mr. Brown is an experienced author and speaker and enjoys engaging with people with a passion to improve business performance through digital enterprise strategies and supporting software technology. When he’s not focused on technology, he is a scuba instructor and plays in an old guy ice hockey league.
Tech-Clarity is an independent research firm dedicated to making the business value of technology clear. We analyze how companies improve innovation, product development, design, engineering, manufacturing, and service performance through the use of digital transformation, best practices, software technology, industrial automation, and IT services.
Our mission is to help manufacturers learn how to improve business results through the use of PLM, portfolio management, CAD, simulation, MES / MOM, IoT, quality, service, analytics, and other solutions.
Meet Our Analysts
Jim Brown
Founder and President, Digital Transformation Research
Disclosure The views and opinions on this site are those of Tech-Clarity. The content is independent and objective, however, Tech-Clarity frequently receives compensation for reports and presentations in addition to consulting services. This compensation may influence the topics chosen for coverage but does not influence the views or opinions expressed. In addition, industry analysts including Tech-Clarity are frequently invited to attend conferences and briefings for which travel and reasonable living expenses are paid or reimbursed, in part or in full. Tech-Clarity does not accept compensation for posts or accept advertising on this site.
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[post_content] => Tech-Clarity Issue in Focus: Optimizing Product Portfolios with Advanced PPM: Applying Value Optimization to Portfolio Decision Making explains how companies can gain greater levels of product portfolio profitability by using value optimization techniques to make portfolio decisions. Describes how the basic best practices of PPM can be extended by Advanced PPM concepts.
Please enjoy the summary below, or click the report or title above to download the full PDF (free of charge, no registration required).
Table of Contents
Introducing the Issue
The Basics of Product Portfolio Management
The Next Level of Portfolio Decision Making
Realizing Optimal Portfolio Value
Conclusion
Recommendations
About the Author
Introducing the Issue
Companies are gaining significant business value by implementing Product Portfolio Management (PPM) best practices. According to Tech-Clarity’s Issue in Focus: The ROI of Product Portfolio Management, effective portfolio management can improve both top-line performance and bottom-line profitability. PPM does this by helping companies align their product portfolios with business objectives, effectively allocate resources to their projects, and better execute product development projects.
Despite the value achieved from these standard PPM best practices, most companies fail to reach the highest possible levels of profitability because they lack a clear understanding of the potential financial value of the products in their portfolio. Part of the problem is that current best practices and technology lack an effective way to assess risk and uncertainty and can’t predict their impact on product value. These impacts can be in the range of millions of dollars. Decision-makers can’t afford to ignore this uncertainty, and can’t make optimal portfolio decisions without a realistic picture of the likely range of values returned from candidate projects in the portfolio.
To get the most out of limited product development resources, companies need to be able to optimize the value of their product portfolios in addition to managing them through a product development processes with standard PPM best practices. Advanced PPM processes and technology enable this by providing a systematic approach to determine financial value. As Tech-Clarity’s Maximizing Product Development Value report concludes, “Creating high value portfolios is much simpler when the factors that create and destroy value for a project are clearly identified, quantified, and managed over the life of the project.” The result is extending “on-time” and “on-budget” to “on-profit.” With this understanding, companies can develop portfolios that provide an optimal financial return based on sound business analysis.
[post_title] => Advanced PPM
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[post_content] => Issue in Focus: Systems and Software Driven Innovation - Complexity and Opportunity in the Mechatronic Era describes the fundamental shift to increased software and electronics in traditionally mechanical products, sometimes known as "mechatronics." The report explains the need to manage the resulting design complexity and how to take advantage of the opportunities offered by systems and software based products.
Please enjoy the summary below, or click the report or title to download a PDF overview of the report (free of charge, no registration required). Please visit the PTC website to download the full report (free of charge, no registration required).
Table of Contents
Introducing the Issue
The Mechatronics Imperative
The Complexity of Mechatronic Products
Managing Change in Mechatronic Products
Working Together – The Systems View
The Opportunity to Innovate with Systems and Software
Competing through Software Driven Innovation
Enabling Software Driven Innovation
PLM and Software Driven Innovation
The Current Reality of PLM for Systems
Conclusion
Recommendations
About the Author
Introducing the Issue
Modern products increasingly incorporate a combination of mechanical, electrical, and software components that allow innovative designers to take advantage of sensors and logic to solve problems and provide capabilities in new ways. This impacts the way companies innovate. As manufacturers develop their next generation of products, they are more likely to turn to electronics and software to make a “smarter” mousetrap as opposed to innovating solely in their mechanical design.
Over the last decade, there has been a steady, fundamental shift towards increased software and electronics in traditionally mechanical products. Engineers have added more monitoring and more sophisticated controls, and have increased the amount of product functionality and value delivered through software as compared to mechanics. Examples of this shift range from automobiles, to mobile devices, to “simple” household appliances.
This changing paradigm requires multiple design disciplines to work together to develop a working system. Systems that rely more heavily on the combination of mechanics, electronics, and software demand more integrated engineering and validation processes. The shift has driven higher levels of product development and engineering complexity starting in the early requirements phase of a product, continuing through design, making a significant impact on product testing and validation, and continuing as a configuration management issue throughout the product lifecycle.
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[post_content] => Issue in Focus: Enabling Mobile PLM - IT Considerations for Leveraging Mobility to Extend PLM Value points out some very practical considerations that IT leaders must take into account when taking PLM mobile. The rise of tablets like the iPad offers an opportunity to further PLM value by reducing barriers to innovation, decision-making, program management, and contribution to product development by extending applications to employees while they are away from the office. It also offers the potential to share critical manufacturing or service data to those in challenging locations such as the plant or in the field. See what the CIO should know about implementing and supporting mobile applications for PLM.
Please enjoy the Executive Summary below, or click the report title above to download a PDF that overviews the report (free of charge, no registration required). For the full report, visit the Siemens PLM website (free of charge, registration required).
Table of Contents
Introducing the Issue
Leveraging Existing PLM Infrastructure
Device Considerations
Business Process Considerations
Application Considerations
People Considerations
Management Considerations
Conclusion
Recommendations
About the Author
Introducing the Issue
Many leading manufacturers have invested in Product Lifecycle Management (PLM) to improve the way they innovate, design, develop, and manage their products. These solutions help manufacturers improve their products, processes, and ultimately their profitability. The rise of tablets like the iPad offers an opportunity to further PLM value by reducing barriers to innovation, decision-making, program management, and contribution to product development by extending applications to employees while they are away from the office. It also offers the potential to share critical manufacturing or service data to those in challenging locations such as the plant or in the field.
Tech-Clarity’s PLM Goes Mobile and Program Management Goes Mobile provide examples of how PLM-related processes can be improved by mobility, including:
Analyzing and executing engineering changes
Providing interactive, 3D manufacturing and service instructions
Managing program status, issues, resources, and tasks
Approving deliverables and signing off on stage-gate reviews
These scenarios provide tangible examples of how mobility can extend the value of PLM. The reports also detail common benefits manufacturers gain from PLM and identify how that value is extended by mobile applications. The reports conclude that “Mobile devices like the iPad have set the stage to extend the opportunity for engineers and others in the product lifecycle to contribute, decide, act, and innovate with PLM.”
Mobile PLM is compelling to business leaders. For IT leaders, there are some very practical considerations to take into account when taking PLM mobile, including:
Leveraging existing PLM infrastructure
Device considerations
Application considerations
Process considerations
People considerations
Management considerations
[post_title] => Enabling Mobile PLM
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[post_content] => Issue in Focus: Product and Program Management Goes Mobile - Compressing Project Cycle Time and Time to Market with Mobile PLM describes how mobile workers can decide, approve, and contribute to their projects and programs in real-time using PLM in a mobile scenario. PLM applications provide significant value to product and program managers, including control of NPD processes and projects, better access to information, and improved decision making. But there are significant barriers that keep mobile employees from contributing to projects with PLM when they travel. Learn how mobile PLM applications can help.
Please enjoy the Executive Summary below, or click the report title above to download a PDF that overviews the report (free of charge, no registration required). For the full report, visit the Siemens PLM website (free of charge, registration required).
Table of Contents
Introducing the Issue
The Value of Mobility to Product and Program Management
Compressing Project Cycle Time with Mobile PLM
A Mobile Product and Program Management Scenario
Conclusion
Recommendations
About the Author
Introducing the Issue
Manufacturers use Product Lifecycle Management (PLM) solutions to effectively control product, project, and programs across their enterprises and supply chains. These applications provide significant value to product and program managers, including control of NPD processes and projects, better access to information, and improved decision making. PLM helps companies manage the complexity of today’s projects and programs, including coordinating cross-functional teams that may be dispersed across different sites, time zones, and even company boundaries. This results in better planning and execution of projects, faster time to market, and reduced project risk.
Unfortunately, there are significant barriers that keep mobile employees from contributing to projects with PLM when they travel. The challenges include inability to easily access information and being disconnected from processes. These barriers result in lag times in project execution and decision making that slow down project and program delivery. They may also contribute to people moving forward based on assumptions that will result in project rework or quality problems.
The issue is that traditional devices that run PLM are simply not designed for mobility. Employees on the road or away from their desk may use smartphones to keep in touch via e-mail, but these devices lack the size and screen to be useful for most PLM applications. Laptops are helpful, but require users to be settled with a flat surface and their hands free. They are really designed for portability as opposed to mobility. Beyond devices, feature-rich project and program management software built for a desktop is not designed with mobile users in mind. Simply making desktop or web applications available on a mobile web browser can prove to be frustrating and cumbersome, resulting in people waiting for a more convenient time to contribute or handling issues outside of the system.
Product and program managers can’t afford delays. They need mobile workers to decide, approve, and contribute to their projects and programs in real-time. Manufacturers can leverage the rise of tablets like the iPad to allow project leaders and team members alike to make decisions and keep their projects moving forward, regardless of their physical location and access to a PC.
[post_title] => Product and Program Management Goes Mobile
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[post_content] => Issue in Focus: PLM Goes Mobile - Reducing Barriers to Engineering Decision-Making and Innovation explains how mobile devices like the iPad have set the stage to extend the ways engineers and others in the product lifecycle contribute, decide, act, and innovate with PLM. There are significant barriers to taking the value of PLM into the plant or into the service center – namely the available devices that run PLM. This means that much of the value of PLM gets left behind when an engineer leaves their workstation to get a firsthand view of production or see their products in the field. Find out how mobile applications and device in PLM can help.
Please enjoy the Executive Summary below, or click the report title above to download a PDF that overviews the report (free of charge, no registration required). For the full report, visit the Siemens PLM website (free of charge, registration required).
Table of Contents
Introducing the Issue
The Value of Mobility to Engineering
Business Value of Mobile PLM Decision Making
A Mobile Engineering Scenario
Conclusion
Recommendations
About the Author
Introducing the Issue
Product Lifecycle Management (PLM) provides significant value to engineers and product developers, including control of product data, process management, and better access to information. PLM helps companies manage the increased complexity of today’s products and product development environments. As Tech-Clarity Insight: The Five Dimensions of Product Complexity states, “PLM solutions help manage the five dimensions of product complexity on an enterprise scale, resulting in greater efficiency and better products.” The result is increased innovation, higher revenue, decreased cost, and faster time to market.
Today, however, there are significant barriers to taking the value of PLM into the plant or into the service center – namely the available devices that run PLM. This means that much of the value of PLM gets left behind when an engineer leaves their workstation to get a firsthand view of production or see their products in the field. This is also the case when a worker in the plant needs information and doesn’t have easy access to a terminal. There are further barriers for employees when they travel, according to Tech Clarity Issue in Focus: Product and Program Management Goes Mobile, resulting in lag times in decision making and project execution.
The issue is the devices typically required to access PLM information and processes. Traditional choices for PLM have been laptops or workstations with bulky form factors, short battery life, and long boot times. Other choices include smartphones or netbooks, each with their own challenges. Beyond devices, software applications built for a personal computer or engineering workstation are simply not suited for the realities of mobile environments. Some things just don’t work on a smaller device but aren’t worth the overhead of booting up a laptop or struggling with a smartphone in a mobile environment.
As a consequence, a lot of decision-making and innovation goes uncaptured or gets put on hold when an engineer is mobile. Manufacturers need to reduce the threshold to use PLM to extend the benefits beyond the desk. Otherwise, they might lose a brainstorm, or a technician might pass on an impulse to verify a detail that could have a large impact on product performance and profitability. Mobile devices like the iPad have set the stage to extend the opportunity for engineers and others in the product lifecycle to contribute, decide, act, and innovate with PLM.
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[post_content] => Tech-Clarity Perspective: Understanding Product Development Trade-offs - Designing Products for Compliance, Cost, and Sustainability presents results from a survey on how companies design their products to meet environmental regulatory compliance, product sustainability, and product cost targets. Shares survey data and perspectives from two leading manufacturers on how they collect data and manage the trade-offs between these important design criteria.
Please enjoy the Executive Summary below, or click the report title above to download the full PDF (free of charge, no registration required).
Feel free to watch the Related Webcast sponsored by PTC (free of charge, registration required).
Table of Contents
Executive Overview
The Product Development Balancing Act
Barriers and Challenges
Design for Environmental Compliance
Design for Sustainability
Design for Cost
Enabling Optimal Design Decisions
Enabling Efficient and Effective Data Collection
Conclusion
Recommendations
About the Research
About the Author
Executive Overview
Over the last five to ten years, product environmental compliance has become increasingly critical to protecting top line revenue. Now, manufacturers also face emerging sustainability requirements stemming from corporate “green” initiatives, market pressure, scrutiny from NGOs like Greenpeace, emerging customer mandates, and even financial pressure from investors and sources like the Dow Jones Sustainability Index. To remain profitable, companies have to address compliance and sustainability while minimizing the impact on product cost. “We can’t sell a product if it’s not compliant so cost doesn’t enter into the equation for regulatory compliance. Since we are in a business that needs to remain viable, we must thoroughly investigate and assess our voluntary green initiatives with regards to impact to cost in other areas,” explains Kim Braun, an Environmental Compliance Engineer for Microsoft.
Engineers and product developers have to address all of these criteria – compliance, cost, and sustainability – early in the product lifecycle when changes can still be made. Unfortunately, these are not independent criteria. Changes to one aspect can have a dramatic impact on the others. Similar to a juggler spinning plates, product developers have to focus on all aspects at once or they may all come crashing down. To address this, leading companies are building compliance, cost, and sustainability analysis into their design processes. “We try hard to embed it in design excellence and not make it a separate process,” explains the leader of corporate environmental compliance for a leading consumer products company.
To understand the challenges manufacturers face in designing products for environmental compliance, sustainability, and cost, Tech-Clarity surveyed over one hundred companies and interviewed two leading, global manufacturers. The research identified two major themes that hinder companies from optimizing designs:
Collecting the right data to make informed decisions
Making the information readily available to product developers in time to make decisions
These issues lead to delayed time to market, loss of market share, and high costs. Part of the issue is the fragmented processes and software systems used to support the design process. On the other hand, well designed, integrated enterprise systems can enable product developers to analyze the impact of design decisions and make tradeoffs earlier in the product development process to develop more optimal products. With the right processes in place, systems also help drive efficiency so companies can have a repeatable, cost-effective process to ensure compliance, sustainability, and cost optimization without compromising efficiency or time to market.
[post_title] => Making Product Development Tradeoffs
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[post_content] => Product Lifecycle Management Proving Value at Heinz: A PLM Case Study from the Consumer Goods Industry - Food and Beverage reviews the strategic value achieved by Heinz from implementing Product Lifecycle Management processed and software in their global business. Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of charge, no registration required).
Table of Contents
Introduction
Heinz Recognizes a Business Need
Heinz Takes a Global Approach
Unique Considerations at Heinz
Unique Technical Considerations
Heinz Selects an Industry-Focused Solution
The Prodika* Solution
Heinz Adopts a Pragmatic Deployment Approach
Meeting the Initial Goals
Additional Benefits – Satisfying Retail Customers
Key Observations
Summary
About the Author
Introduction
Henry John Heinz believed that "To do a common thing uncommonly well brings success." And since 1869, the H.J. Heinz Company has supported that belief. Today, Heinz is a premier international food company, with number-one and number-two brands in more than 50 countries.
In early 2000, key Heinz leaders recognized a challenge in their business–namely tracking product specifications, formulas and suppliers across a diverse, global business– and set out to solve it. Along the way, they standardized how they developed and tracked product specifications, reduced the number of ingredients they purchased, increased global communication about product and supplier information, and improved the processes they use to develop and introduce new products to the market. As stated in the Heinz 2003 annual report, “Heinz has launched VIPER (Vendor Improvement and Product Enhancement and Research), a global computerized platform designed to enable the company to dramatically simplify its myriad product specifications. Heinz also reduced its worldwide SKUs by nearly 30% in Fiscal 2003 and is targeting an additional reduction of 10% by Fiscal 2005”.
In short, the Heinz VIPER project is achieving strategic value for their business by combining new processes and technology to form innovative "ways-of-working." Heinz did not set out to implement Product Lifecycle Management (PLM), Collaborative Product Commerce (CPC), Product Data Management (PDM), or any other suite of software solutions. Heinz's core objective was to simplify operations by enhancing communication, coordination, and visibility.
In the end, Heinz has accomplished what few others in their industry have been able to do–continually leverage product information across the entire lifecycle. The fact that these new business processes and technologies are now known as “PLM”–other than giving us a good umbrella under which to discuss how Heinz improved their business–is not important. What is important, of course, is the value that Heinz has recognized from their initiatives:
Reducing complexity in product portfolios and raw material management
Decreasing the proliferation of new materials and sourcing relationships
Cross pollinating best practices among and between business units
Streamlining the way Heinz brings new products to market
PLM concepts and benefits have been appearing in the annual reports of automotive, electronics, and other high-tech discrete businesses for some time. They are now starting to become more common in the Consumer Goods, Food and Beverage industries. Those that questioned the value of PLM for these industries thought that process industries were too “simple.” In fact, the unique requirements and inherent variability of process industries underscore the benefits of Product Lifecycle Management (PLM).
* Note: Prodika was acquired by Agile, who was then acquired by Oracle.
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Product Lifecycle Management Proving Value at Heinz: A PLM Case Study from the Consumer Goods Industry – Food and Beverage reviews the strategic value achieved by Heinz from implementing Product Lifecycle Management processed and software in their global business. Please enjoy the free Executive Summary below, or click the report title above to download the…
Regulatory Compliance Across the Product Lifecycle: Reduced Risk and Lowered Costs Through Proactive EH&S examines the importance that regulatory compliance and product related EH&S play in protecting the value available from PLM across the product lifecycle. Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of…
What’s Wrong With Application Software – A Possible Solution? discusses how model-based architectures offer potential benefits to companies by more naturally assembling solutions into business processes. Originally published on Technology Evaluation Centers (TEC). Click the report title above to download the full PDF (free of charge, no registration required).
Tech-Clarity’s Jim Brown contributes a column to Advantage for the Product Lifecycle. The first column, Executive Perspective: Successful PLM Starts with the End in Mind, was reprinted in Cadalyst. The article suggests that companies develop their PLM strategies to support their business strategies, and offers some examples of the business value available from PLM. The…
Jim Brown presents at an invitation-only SAP customer event at SAP North American headquarters in Newtown Square, Pennsylvania. The presentation focuses on the top myths regarding product lifecycle management (PLM). Event is invitation only by SAP.
The Service Lifecycle Management (SLM) Approach: Strong Customer Relationships Result In Profit In The Service Industry overviews an approach to improve the profitability of services businesses by concurrently increasing service and lowering costs. Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of charge, no…
A quick peek into some research on Social Business Collaboration and Advanced PPM. What do these two very interesting topics have in common? Live webcasts featuring Jim Brown of Tech-Clarity next week, Thursday and Friday February 16-17. OK, I admit it was a cheap trick, but I hope it convinces you to learn about one…
Services for Manufacturing and Industry Tech-Clarity shares our research, experience and insights with manufacturers and other industry clients to educate them on the business value available from the intelligent use of enterprise software. Clients benefit by focusing on the value of solutions as opposed to the technology itself. Strategy and Advisory Services Strategic Planning Executive…
Services for Software Vendors and Consultants Tech-Clarity helps software vendors and service companies by sharing our research, experience, and insights on the business value available from the intelligent use of enterprise software. Software vendors and service providers frequently invite Tech-Clarity to educate their customers and prospects on the business value of the solutions they offer,…
Email Subscription Enter your email to join our community, you will receive our newsletter and survey invitations. Contact Us Contact Tech-Clarity using the form below.
Jim Brown is the President of Digital Transformation Research for independent research firm Tech-Clarity. He covers digital transformation across the product digital thread for manufacturing and industrial companies including PLM, PDM, product development, portfolio management, digital manufacturing, IoT, EAM, SLM, and other solutions. Jim founded Tech-Clarity in 2002 and has over 30 years of industry…
Tech-Clarity is an independent research firm dedicated to making the business value of technology clear. We analyze how companies improve innovation, product development, design, engineering, manufacturing, and service performance through the use of digital transformation, best practices, software technology, industrial automation, and IT services. Our mission is to help manufacturers learn how to improve business…
Tech-Clarity Issue in Focus: Optimizing Product Portfolios with Advanced PPM: Applying Value Optimization to Portfolio Decision Making explains how companies can gain greater levels of product portfolio profitability by using value optimization techniques to make portfolio decisions. Describes how the basic best practices of PPM can be extended by Advanced PPM concepts. Please enjoy the…
Issue in Focus: Systems and Software Driven Innovation – Complexity and Opportunity in the Mechatronic Era describes the fundamental shift to increased software and electronics in traditionally mechanical products, sometimes known as “mechatronics.” The report explains the need to manage the resulting design complexity and how to take advantage of the opportunities offered by systems…
Issue in Focus: Enabling Mobile PLM – IT Considerations for Leveraging Mobility to Extend PLM Value points out some very practical considerations that IT leaders must take into account when taking PLM mobile. The rise of tablets like the iPad offers an opportunity to further PLM value by reducing barriers to innovation, decision-making, program management,…
Issue in Focus: Product and Program Management Goes Mobile – Compressing Project Cycle Time and Time to Market with Mobile PLM describes how mobile workers can decide, approve, and contribute to their projects and programs in real-time using PLM in a mobile scenario. PLM applications provide significant value to product and program managers, including control…
Issue in Focus: PLM Goes Mobile – Reducing Barriers to Engineering Decision-Making and Innovation explains how mobile devices like the iPad have set the stage to extend the ways engineers and others in the product lifecycle contribute, decide, act, and innovate with PLM. There are significant barriers to taking the value of PLM into the…
Tech-Clarity Perspective: Understanding Product Development Trade-offs – Designing Products for Compliance, Cost, and Sustainability presents results from a survey on how companies design their products to meet environmental regulatory compliance, product sustainability, and product cost targets. Shares survey data and perspectives from two leading manufacturers on how they collect data and manage the trade-offs between…