UsingSupplyChain-EnabledPlatformLifeCycle

ManagementtoBoostMarginGrowth

Ted Stank, Bruce Chair of Excellence in Business, University of TennesseeMike Burnette, Director Global Supply Chain Institute, University of Tennessee

Lance Saunders, Assistant Professor of SCM, University of Tennessee

1. Brief introduction of PLCM and its

potential impact

2. Implementing PLCM across

the organization

3. Case study

4. Panel discussion and open question

and answer period

1MANAGING RISK IN THE GLOBAL SUPPLY CHAIN

PLATFORM LIFE CYCLE MANAGEMENTBEST PRACTICES BUILDING PROFITS THROUGH SIMPLIFICATION, STANDARDIZATION, SPEED, AND SCALE

A WHITE PAPER BY THE UNIVERSITY OF TENNESSEE’S HASLAM COLLEGE OF BUSINESS SUPPLY CHAIN MANAGEMENT FACULTY

DECEMBER 2015

Sponsored byGLOBAL SUPPLY CHAIN INSTITUTE

NUMBER ONE IN THE SERIES INNOVATIONS IN SUPPLY CHAIN

Introduction to PLCM Across the Organization

Introduction to PLCM:Drivers of Complexity in Supply Chains…

Introduction to PLCM:Platforms and Platform Management

Platform – the integrated system required to design, develop and supply a family of products, including

• consumer needs, product/service design, materials, packaging, process, equipment and operations

Platform Life Cycle Management (PLCM) – managing the platform system from a life cycle standpoint, including

• Platform development• Platform management and

improvement• End-of-life management

Introduction to PLCM:Potential Impact

• 30 percent improvement in ideation-to-launch cycle time for new-product development

• 30–50 percent reduction in capital and working assets needed to launch new products

• 10–15 percent reduction in overall supply chain cost

Implementing PLCM Across the Organization

Implementing PLCM Across the Organization:Develop a PLCM Culture

Develop the corporate leadership culture, structure, and metrics needed to ensure a focus on engaging the supply chain to create and launch platform-based products and services at a profit

Implementing PLCM Across the Organization:Create Shared Supply Chain Knowledge

Build cross-functional linkages within the companyand inter-organizational linkages with suppliers and customersto create knowledge regarding integrated, end-to-endsupply chain operations

Implementing PLCM Across the Organization:Establish Priorities for Resource Allocation

Establish priorities based upon shared knowledge todetermine and direct where—and where not—to allocatestrategic resources

Implementing PLCM Across the Organization:Empower Platform Decision Making

Empower tactical and operational supply chaindecision making that maximizes overall platform valuecreation

Implementing PLCM Across the Organization:Create Scale and Speed in Operations

Implementing PLCM Across the Organization:Create Scale and Speed in Operations

Simplify and standardize supply chain processes toattain improved scale that meets demand at lower cost and increases the speed with which product innovationsgrow revenue.

PLCM Case Study

PLCM Case Study

Processes/SC

Standard Process

Supply System

Product Design

Winning Products

Competitive Advantage

Formula, Package Menus

Equipment

Standard Equipment

Materials

Materials Specs

Sourcing Scale

Strategic Materials

New Material/Supplier Development

Business Continuity Plan

Change Management/ Regulatory

Operations

Operational Standards

Commercial Team

Technology Team

Operations Team

Materials/Supply System Team

Technology Team

Consumer

Business Plan and Strategy

Consumer Direction

Consumer Needs

Competitive Benchmarks

TEAM LEADING

Figure 4.1

PLATFORM TEAMS AND WORK PROCESSESEXAMPLES

Panel Discussion and Open Q/A

1. How many corporations and supply chains are utilizing PLCM as a strategy? Why?

2. When was the concept of PLCM formed and why are companies using it today?

3. How is PLCM linked to S&OP (IBP)? 4. Doesn’t standardization limit the creativity of people/team? 5. Do you have an example of using external scale to save money?6. What metrics should you use to measure the impact of PLCM?7. Questions from the audience?

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“I shall participate, I shall contribute, andin doing so, I will be the gainer.”

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