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Product Life Cycle Management by Gerrit Muller University of Southeast Norway-NISE e-mail: [email protected] www.gaudisite.nl Abstract Product Life Cycle Management addresses the full life cycles of products, from conception until disposal. The creation of the product determines largely what can be done with the product in the later life cycle phases. From business perspective the installed base, all systems that are operational in the field, is an asset that provides many opportunities. From technical perspective the operational life of products is quite a challenge, because systems keep evolving to fit in the market and to benefit from technical capabilities. This creates a variety of operational configurations that have to be served. Distribution This article or presentation is written as part of the Gaudí project. The Gaudí project philosophy is to improve by obtaining frequent feedback. Frequent feedback is pursued by an open creation process. This document is published as intermediate or nearly mature version to get feedback. Further distribution is allowed as long as the document remains complete and unchanged. June 5, 2018 status: preliminary draft version: 0.2 R1 SW R1 HW R1 HW R2 SW R2 SW R2 HW R3 SW R3 HW initial delivery sw upgrade initial delivery sw upgrade R3 SW R2 HW initial delivery R3 SW R3 HW forklift upgrade How long are new functions compatible with older system configurations? When to break compatibility? When does the customer pay for an upgrade? When to retrofit? example Try to run Windows Vista on your 1GB computer from 2005...

Product Life Cycle Management - Gaud&iacute … Life Cycle Management by Gerrit Muller Buskerud University College e-mail: [email protected] Abstract Product Life Cycle Management

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Product Life Cycle Managementby Gerrit Muller University of Southeast Norway-NISE

e-mail: [email protected]

Abstract

Product Life Cycle Management addresses the full life cycles of products, fromconception until disposal. The creation of the product determines largely what canbe done with the product in the later life cycle phases. From business perspectivethe installed base, all systems that are operational in the field, is an asset thatprovides many opportunities. From technical perspective the operational life ofproducts is quite a challenge, because systems keep evolving to fit in the marketand to benefit from technical capabilities. This creates a variety of operationalconfigurations that have to be served.

Distribution

This article or presentation is written as part of the Gaudí project. The Gaudí projectphilosophy is to improve by obtaining frequent feedback. Frequent feedback is pursued by anopen creation process. This document is published as intermediate or nearly mature versionto get feedback. Further distribution is allowed as long as the document remains completeand unchanged.

June 5, 2018status: preliminarydraftversion: 0.2

R1 SW

R1 HW R1 HW

R2 SW

R2 SW

R2 HW

R3 SW

R3 HW

initial delivery

sw upgrade

initial delivery

sw upgrade

R3 SW

R2 HW

initial delivery

R3 SW

R3 HW

forklift upgrade

How long are new functions compatible with older system configurations?

When to break compatibility?

When does the customer pay for an upgrade? When to retrofit? example

Try to run Windows Vista on your 1GB computer from 2005...

Figure Of ContentsTM

introduction from conception to disposal

product life cycle management process

business the money dimension

heart beat of changes the time dimension

complexity huge number of configurations

conclusion

Product Life Cycle Management2 Gerrit Muller

version: 0.2June 5, 2018

PLMlogo

Introduction: Basic System Life Cycle

introduction from conception to disposal

creation production operation disposal conception

product life cycle management process

business the money dimension

heart beat of changes the time dimension

complexity huge number of configurations

conclusion

Product Life Cycle Management3 Gerrit Muller

version: 0.2June 5, 2018

PLMlogoIntroduction

System Life Cycle after Creation

system

order

using

local

changes, e.g.accounts

procedures

ma

inte

na

nce

up

gra

de

using

orde

ring

com

pone

nts

man

ufac

turin

g

shipping

installatio

n

shipping

installatio

n

refu

rbishing

shipping

secondary

use dis

po

se

ma

inte

na

ncead

d o

ptio

n

sales

Product Life Cycle Management4 Gerrit Muller

version: 0.2June 5, 2018

MALCsystemLifeCycle

Volume of Installed Base versus New deliveries

2008

2005

2000

1995

installed base

decommisioned

initial deliveries

legend

installed base 10..20 times

initial deliveries

this is an entirely fictitious case

Product Life Cycle Management5 Gerrit Muller

version: 0.2June 5, 2018PLMvolume

Case: X-ray Catherization System

Product Life Cycle Management6 Gerrit Muller

version: 0.2June 5, 2018

PLMxraySystemPhoto

Product Related Life Cycles

system

creation

system

productionsystem

sales

service

individual systems

disposalupgrades and options

productionupgrades and options

sales

upgrades and options

creation

Product Life Cycle Management7 Gerrit Muller

version: 0.2June 5, 2018

MALCproductLifeCycle

introduction from conception to disposal

product life cycle management process

business the money dimension

heart beat of changes the time dimension

complexity huge number of configurations

conclusion

Product Life Cycle Management8 Gerrit Muller

version: 0.2June 5, 2018

PLMlogoProcess

Simplified process view

strategyprocess

customer

supplying business

value

product creationprocess

customer oriented (sales,

service, production) process

people, process and technologymanagement process

Product Life Cycle Management9 Gerrit Muller

version: 0.2June 5, 2018

RSPprocessDecomposition

Positioning PLM

strategy process

customer

supplying business

valu

e

product creation process

customer oriented (sales, service, production) process

people, process and technology management process

Product Life Cycle Management

Product Life Cycle Management10 Gerrit Muller

version: 0.2June 5, 2018

PLMprocessPositioning

introduction from conception to disposal

product life cycle management process

business the money dimension

heart beat of changes the time dimension

complexity huge number of configurations

conclusion

Product Life Cycle Management11 Gerrit Muller

version: 0.2June 5, 2018

PLMlogoBusiness

Product Margin = Sales Price - Cost

material

labour

miscellaneous

margin

cost

pri

ce

sale

s p

rice

Cost per product,

excluding fixed costs

Margin per product.

The margin over the sales volume,

must cover the fixed costs, and generate profittransportation, insurance,

royalties per product, ...

purchase price of components may cover

development cost of supplier

retailer margin

and costs

stre

et p

rice

Product Life Cycle Management12 Gerrit Muller

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SFCmargin

Profit as function of sales volume

sales volumein units

$

income

expenses

break even

point

profit

expected

sales volume

fixe

d c

ost

s

variable

Product Life Cycle Management13 Gerrit Muller

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SFCprofitAndSalesVolume

Investments, more than R&D

research and development

NRE: outsourcing, royalties

marketing, sales

training sales&service

financing

including:

staff, training, tools, housing

materials, prototypes

overhead

certification

strategic choice:

NRE or per product

business dependent:

pharmaceutics industry

sales cost >> R&D cost

often a standard staffing rate is used

that covers most costs above:

R&D investment = Effort * rate

Product Life Cycle Management14 Gerrit Muller

version: 0.2June 5, 2018

SFCinvestments

Income, more than product sales only

products

options,

accessories

other recurring

income

services

sales priceoption * volumeoption

sales priceproduct * volume product

incomeservice

options

services

content, portal

updates

maintenance

license fees

pay per movie

Product Life Cycle Management15 Gerrit Muller

version: 0.2June 5, 2018SFCincome

introduction from conception to disposal

product life cycle management process

business the money dimension

heart beat of changes the time dimension

complexity huge number of configurations

conclusion

Product Life Cycle Management16 Gerrit Muller

version: 0.2June 5, 2018

PLMlogoTime

Example: Evolution of X-ray Systems

1980 1985 1990 1995 2000 2005

catherization lab

k V m A

interfaces

catherization lab

kV m A monitorin

g

ultra sound

tip positionin

g

PC's Cardiology Radiology

Hospital Information System

PACS

MR scanner

CT scanner

k V m A

electro-mechanical components

autonomous subsystems

synergy cardio/vascular

kV m A

vascular

kV m A

system control

system of systems

Product Life Cycle Management17 Gerrit Muller

version: 0.2June 5, 2018

FAIxrayTimeline

Creation Chain

aligned

strategy, processes,

tools, repository

independent

strategy, processes,

tools, repository

shared

strategy, processes,

tools, repository

product

creator &

integrator

component

creator

component

creator

off the shelf

component

supplier

component

creatorpartner

product

competitor

complementor

in house

customer

privileged

customer

direct

customer

customer

via reseller

Product Life Cycle Management18 Gerrit Muller

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PEVOCcreationChain

Example: X-ray Catherization System

catherization lab

kV mA

monitoring

ultra sound

tip positioning

PC's Cardiology Radiology

Hospital Information System

PACS

MR scanner

CT scanner

X-ray catherization environment anno 2005

fast changing PC technology

partners

slow changing Xray and

mechanical technology

medium changing electronics

slow changing infrastructure

Product Life Cycle Management19 Gerrit Muller

version: 0.2June 5, 2018

PLMxraySystem

Example of Time Scale Model for Changes

1 year

commodity

hardware

and

software

new generation of

magnets

gradients

detectors

major SW

release

minor SW

release

workstation

useful life

MR

scanner

useful life

10 years

procedural

change

legislation

change

clinical

prototype

problem

response

3 months

Product Life Cycle Management20 Gerrit Muller

version: 0.2June 5, 2018

HMPAlifecycles

introduction from conception to disposal

product life cycle management process

business the money dimension

heart beat of changes the time dimension

complexity huge number of configurations

conclusion

Product Life Cycle Management21 Gerrit Muller

version: 0.2June 5, 2018

PLMlogoVariation

Product Configurations Evolve Continuously

D

A B C

F G H

D

A B

F G

product 1

product 2

J

I

D

A' B C

F' G' H

K

L

D

B

J

I

F' G'

A' K

L

product 1'

product 2'

R1, 1995 R2, 1996

A' B C

F'' G''

K

L'

D'

M

A' B I

F'' G''

K

L'

D'

J'

R3, 1997

et cetera

Product Life Cycle Management22 Gerrit Muller

version: 0.2June 5, 2018

PLMevolutionConfigurations

Regression of Configuration

A' B C

F'' G''

K

L'

D'

M

initial delivery R3, 1997

mandatory changes recommended changes

upgrades options repairs

good service poor service

time pressure pragmatics availability

? ? ?

? ?

?

?

D'.?

?

Product Life Cycle Management23 Gerrit Muller

version: 0.2June 5, 2018

PLMregressionConfiguration

Compatibility and Upgrading

R1 SW

R1 HW R1 HW

R2 SW

R2 SW

R2 HW

R3 SW

R3 HW

initial delivery

sw upgrade

initial delivery

sw upgrade

R3 SW

R2 HW

initial delivery

R3 SW

R3 HW

forklift upgrade

How long are new functions compatible with older system configurations?

When to break compatibility?

When does the customer pay for an upgrade? When to retrofit? example

Try to run Windows Vista on your 1GB computer from 2005...

Product Life Cycle Management24 Gerrit Muller

version: 0.2June 5, 2018

PLMupgradingCompatibility

introduction from conception to disposal

product life cycle management process

business the money dimension

heart beat of changes the time dimension

complexity huge number of configurations

conclusion

Product Life Cycle Management25 Gerrit Muller

version: 0.2June 5, 2018

PLMlogoConclusion

Systems Engineering and PLM

system creation

system production

system sales

service

individual systems

disposal upgrades and options

production upgrades and options

sales

upgrades and options creation

future needs

Systems Engineering: anticipation of future needs when creating new systems and features

Product Life Cycle Management26 Gerrit Muller

version: 0.2June 5, 2018

PLMsystemsEngineering

Basic System Life Cycle

creation production operation disposal conception

Product Life Cycle Management27 Gerrit Muller

version: 0.2June 5, 2018

PLMbasicLifeCycle