{"id":4063,"date":"2022-03-31T08:00:00","date_gmt":"2022-03-31T06:00:00","guid":{"rendered":"http:\/\/www.se-trends.de\/?p=4063"},"modified":"2022-03-30T21:55:06","modified_gmt":"2022-03-30T19:55:06","slug":"plm-in-crises","status":"publish","type":"post","link":"https:\/\/www.se-trends.de\/en\/plm-in-krisen\/","title":{"rendered":"The importance of PLM in crises"},"content":{"rendered":"<p class=\"wp-block-paragraph\">PLM is about managing the life cycle of products. This also includes dealing with suppliers. Our supply chains are now global, complex and sensitive. In \"normal\" times, everything seems to work well. But in times of crisis, the weak points are mercilessly exposed. Examples include sold-out toilet paper in times of coronavirus or price increases for organic meat because deliveries of organic feed are canceled due to the war in Ukraine.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">PLM can make supply chains more resilient and protect them against crises. <\/p>\n\n\n\n<!--more-->\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"http:\/\/www.se-trends.de\/en\/what-is-product-lifecycle-management-plm\/\">PLM <\/a>and <a href=\"http:\/\/www.se-trends.de\/en\/what-is-systems-engineering\/\">Systems Engineering<\/a> are closely interlinked. I will go into this again below when it comes to tracking requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Use PLM externally too<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The problem: Most PLM implementations focus on the internal coordination of disciplines; the inclusion of the supply chain was always the next step (which was often never done). <a href=\"https:\/\/www.gartner.com\/en\/documents\/3906938\" target=\"_blank\" rel=\"noreferrer noopener\">Gartner confirms<\/a>that cost reduction and faster market entry are the main reasons for introducing PLM. However, omitting the (external) supply chain reduces the effectiveness of PLM.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The situation is even more extreme for digital supply chains. The following image comes from a McKinsey study from 2017, which illustrates this:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/josvoskuil.files.wordpress.com\/2020\/11\/supplychainpriority.jpg\"><img class=\"lazyload\" data-src=\"https:\/\/josvoskuil.files.wordpress.com\/2020\/11\/supplychainpriority.jpg\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" alt=\"\"\/><noscript><img decoding=\"async\" src=\"https:\/\/josvoskuil.files.wordpress.com\/2020\/11\/supplychainpriority.jpg\" alt=\"\"><\/noscript><\/a><figcaption>Source: <a href=\"https:\/\/www.mckinsey.com\/business-functions\/mckinsey-digital\/our-insights\/the-case-for-digital-reinvention\" target=\"_blank\" rel=\"noreferrer noopener\">McKinsey Quarterly:<br>The case for digital reinvention<\/a><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Is PLM equipped against crises in traditional industries?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">PLM comes from traditional industries such as aerospace and defense companies and vehicle manufacturers. However, these are only rudimentarily networked. Typically, OEMs work with supplier portals. Suppliers must use these to download their information or upload their designs together with additional metadata.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This approach causes several problems: Firstly, these portals virtually never follow standards. The creation, processing and validation of exchange packages requires a lot of time-consuming and error-prone manual work. Control lies with the OEMs. This makes it difficult for suppliers to use their own PLM environment, let alone realize efficient traceability across company boundaries.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Illusion of redundancy<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Worse still, in traditional industries we also have other (Tier 2) suppliers who in turn source raw materials. We have recently seen this problem with semiconductors in particular: OEMs often have more than one supplier for a particular ECU (Tier 1). However, if all of these suppliers use the same microchips, there is a dependency on exactly one Tier 2 supplier. This dependency on a single supplier is highly unlikely to be recognized in the OEM's PLM system. Of course, OEMs are aware of this problem. However, OEMs usually use their (general) risk management instead. Although this works, it is labor-intensive and error-prone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During my research I came across <a href=\"https:\/\/virtualdutchman.com\/2020\/12\/13\/plm-and-the-supply-chain\/\" target=\"_blank\" rel=\"noreferrer noopener\">this article<\/a> who <a href=\"https:\/\/www.cimdata.com\/en\/speaker-bios\/bell-k\" target=\"_blank\" rel=\"noreferrer noopener\">Katheryn Bell<\/a> which proposes a 3-stage model for collaboration in PLM:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/josvoskuil.files.wordpress.com\/2020\/12\/collaboration-types.jpg\"><img class=\"lazyload\" data-src=\"https:\/\/josvoskuil.files.wordpress.com\/2020\/12\/collaboration-types.jpg\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" alt=\"\"\/><noscript><img decoding=\"async\" src=\"https:\/\/josvoskuil.files.wordpress.com\/2020\/12\/collaboration-types.jpg\" alt=\"\"><\/noscript><\/a><figcaption>Source: <a href=\"https:\/\/virtualdutchman.com\/2020\/12\/13\/plm-and-the-supply-chain\/\" target=\"_blank\" rel=\"noreferrer noopener\">Jos Voskuil's Weblog: PLM and the Supply Chain<\/a><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">What I find exciting here is that cooperation regarding requirements appears in Type 2 and Type 3. This shows the proximity to systems engineering. Furthermore, at least in the area of requirements with the <a href=\"https:\/\/www.reqif.academy\" target=\"_blank\" rel=\"noreferrer noopener\">ReqIF standard<\/a> The problem has largely been solved and implemented, at least in the automotive industry. However, I have never seen traceability from OEM to Tier 1 to Tier 2 in practice here either.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">PLM gets a boost during crises<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As is so often the case, there is no obvious solution here. In practice, I see that companies and industries are increasingly incorporating the topic into their strategies. This started with the <a href=\"https:\/\/de.wikipedia.org\/wiki\/Huawei#Eskalation_des_Streites_mit_den_USA\" target=\"_blank\" rel=\"noreferrer noopener\">Dispute between Huawei and the USA <\/a>in 2019. <a href=\"http:\/\/www.se-trends.de\/en\/day\/corona\/\">Corona<\/a> supply chain problems suddenly became noticeable to the general population. And Russia's invasion of Ukraine has shown us that we will have to operate in crisis mode for years to come. In short: companies see a need for strategic action.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Possible solutions<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The most effective approach is close collaboration through a shared working environment. We find this to some extent in the aerospace industry, where suppliers work directly in a PLM system provided by the OEM. The biggest disadvantage for the supplier is that they are forced to disclose all results. This is not always desirable and also has implications in terms of intellectual property.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Standards are another approach. It is important to be modest here. We already have standards and can expand their use. The following are relevant for PLM:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The already mentioned <a href=\"http:\/\/www.se-trends.de\/en\/reqif-and-systems-engineering\/\">ReqIF<\/a> for the exchange of requirements<\/li><li><a href=\"https:\/\/modeling-languages.com\/eclipse-mdtuml2-xmi-de-facto-standard\/\" target=\"_blank\" rel=\"noreferrer noopener\">XMI <\/a>for the exchange of system models<\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/CAD_data_exchange#Neutral_file_exchange\">DXF<\/a> for the exchange of CAD data<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">... and certainly many others. But before we create new standards, it is important to work effectively with existing standards. ReqIF, for example, is only half the battle when it comes to exchanging requirements: The processes between OEM and supplier must also be coordinated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another solution is promised by the manufacturers of PLM products. Oracle has solutions on offer here, and there are also \"manufacturer-independent\" consortia, such as the <a href=\"https:\/\/www.plm.automation.siemens.com\/global\/en\/our-story\/newsroom\/siemens-sap-intelligent-service-asset-lifecycle-management-solutions\/96518\" target=\"_blank\" rel=\"noreferrer noopener\">Siemens-SAP alliance<\/a>. Whether these are so independent remains to be seen. But isolated solutions are also useful if they solve the problem. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">COVID-19 has highlighted the volatility of supply chains. However, the promise of a truly connected supply chain is enormous and the value is greater than ever. And not only that: many of the parts needed for the solution already exist.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I suspect that the strategic importance of networked supply chains will continue to grow and that we will see many exciting solutions in the coming years.<\/p>\n\n\n\n<p class=\"has-text-align-right wp-block-paragraph\">Photo: Big Stock<\/p>","protected":false},"excerpt":{"rendered":"<p>PLM is about managing the life cycle of products. This also includes dealing with suppliers. Our supply chains are now global, complex and sensitive. In \"normal\" times, everything seems to work well. But in times of crisis, the weak points are mercilessly exposed. Examples include sold-out toilet paper during corona times or price increases for organic meat,...<\/p>","protected":false},"author":1,"featured_media":4068,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[43,45],"tags":[438,177,568,297,590],"class_list":["post-4063","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industrie","category-standards-methoden","tag-corona","tag-krise","tag-lieferkette","tag-plm","tag-ukraine"],"_links":{"self":[{"href":"https:\/\/www.se-trends.de\/en\/wp-json\/wp\/v2\/posts\/4063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.se-trends.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.se-trends.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.se-trends.de\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.se-trends.de\/en\/wp-json\/wp\/v2\/comments?post=4063"}],"version-history":[{"count":0,"href":"https:\/\/www.se-trends.de\/en\/wp-json\/wp\/v2\/posts\/4063\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.se-trends.de\/en\/wp-json\/wp\/v2\/media\/4068"}],"wp:attachment":[{"href":"https:\/\/www.se-trends.de\/en\/wp-json\/wp\/v2\/media?parent=4063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.se-trends.de\/en\/wp-json\/wp\/v2\/categories?post=4063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.se-trends.de\/en\/wp-json\/wp\/v2\/tags?post=4063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}