Business & Economics

Holistic PLM-Model - Deduction of a Holistic PLM-Model from the General Dimensions of an Integrated Management

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Product Lifecycle Management (PLM) is a widely discussed topic concerning the increase of efficiency of product development in terms of time to market as well as customizing products to the different needs of customers worldwide adequately. Historically PLM focuses the early phases of the product’s lifecycle, namely the product development phase. Therein the roots of PLM are based in supporting the information logistics of product data: Consistent data sets should be available to all stakeholders in the different departments at all times. Due to the increasing product complexity PLM has to be extended in terms of the temporal dimension (not limited to product development phase) and systemic dimension (not limited to the information logistic aspect). In this paper the authors derive a holistic framework for Product Lifecycle Management by analysing existing integrated management approaches. The framework consists of four dimensions: PLM strategy, PLM process, Product structure and PLM IT-Architecture. The sustainability and benefits of the framework is demonstrated by applying the framework to the communication service provider industry(CSP).
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   380  International Conference on Product Lifecycle Management Copyright © 2013 Inderscience Enterprises Ltd. Holistic PLM-model – deduction of a holistic PLM-model from the general dimensions of an integrated management Oliver Budde* Research Institute for Rationalization and Operations Management, RWTH Aachen University, Pontdriesch 14/16, D-52062 Aachen, Germany E-mail: Oliver.Budde@gmail.com *Corresponding author Günther Schuh and Ju-Young Uam Laboratory for Machine Tools and Production Engineering WZL, RWTH Aachen University, Chair of Production Engineering, Steinbachstrasse 19, D-52074 Aachen, Germany E-mail: g.schuh@wzl.rwth-aachen.de1 E-mail: j.uam@wzl.rwth-aachen.de2 Abstract:  Product lifecycle management (PLM) is a widely discussed topic concerning the increase of efficiency of product development in terms of time to market as well as customizing products to the different needs of customers worldwide adequately. Historically PLM focuses the early phases of the  product’s lifecycle, namely the product development phase. Therein the roots of PLM are based in supporting the information logistics of product data: Consistent data sets should be available to all stakeholders in the different departments at all times. Due to the increasing product complexity PLM has to  be extended in terms of the temporal dimension (not limited to product development phase) and systemic dimension (not limited to the information logistic aspect). In this paper the authors derive a holistic framework for  product lifecycle management by analysing existing integrated management approaches. The framework consists of four dimensions: PLM strategy, PLM  process, product structure and PLM IT-architecture. The sustainability and  benefits of the framework is demonstrated by applying the framework to the communication service provider (CSP) industry. Keywords:  holistic PLM-model; product complexity; integrated management. 1 Introduction/goal Today industrial as well as services companies are challenged by a highly dynamic environment, which require them to develop and manage products at a high level of flexibility and quality at minimized costs (Nyhuis et al., 2009; Reinhard and Rashidy, 2008). As numerous authors have shown, the intricacy of product portfolios has been     Holistic PLM-model 381   increased in the last decade. Product lifecycle management (PLM) has become a rather complex topic (Lindemann et al., 2009), which propels the idea of a holistic framework for managing products from the early product idea phase to the market exit of the product on a systemic level. Despite the academic and industrial need, a generally accepted and sound definition of PLM has not been provided so far, covering the various fields of aspects [Eigner and Stelzer, (2009), p.5] (qv. Table 1). Table 1  Summary of definitions for PLM  Authors Description Addressed PLM aspect Saaksvuori and Immonen (2008) PLM is a systematic, controlled concept for managing and developing products and product related information. PLM offers management and control of the  product (product development, productizing and product marketing) process and the order-delivery process, the control of product related data throughout the product life cycle, from the initial idea to the scrap yard. ã   PLM strategy ã   PLM process ã   PLM IT-architecture Miller (2003) A strategic business approach that applies a consistent set of business solutions in support of the collaborative creation, management, dissemination, and use of  product definition information across the extend enterprise from concept to end of life – integrating  people, processes, business systems, and information. ã   Integrated business approach ã   PLM IT-architecture Schuh et al. (2006) The product structure plays a major role in product lifecycle management. It defines the structured relationship among product items and integrates all  product related information. To effectively support lifecycle management implementation, initiatives to define product structuring reference models must consider that the process that best fits a specific project may vary according to the development context ã   Product structure ã   PLM process Fathi et al. (2007) (..) Available PLM methods and tools can be clustered in three groups: ã   Information management (..) ã   Process management (e.g., methods for modeling, structuring, planning, operating and controlling formal or semi-formal processes like engineering release processes, review processes, change process or notification processes ã   Application integration ã   PLM process ã   PLM IT-architecture ã   Application integration ã   Information mgnt. Feldhusen and Gebhardt (2008) PLM is a knowledge based corporate strategy for all  processes and their methods in respect to product development from the early product idea to the recycling. Feldhusen and Gebhardt (2008, p.34): A successful PLM strategy includes the building blocks products,  processes and organisation. ã   Integrated management approach ã   Product structure ã   PLM process ã   PLM IT-architecture Taking the five definitions for PLM from the above-named authors, it can be concluded that a mere consideration of the IT-aspect (in terms of improving the information logistics) has to be extended with the consideration of the PLM process, PLM strategy, linked with the corporate strategy, and the product structuring aspect. This argumentation   382 O. Budde et al. is in conjunction with Fathi et al. (2007, p.246), who also identifies the main weakness of existing PLM solutions being the poor support of product lifecycle activities outside the  product development phase. Due to the variety of definitions for PLM and therefore different interpretations, this  paper will harmonize the PLM perception and provide a holistic framework for PLM, which will be derived from existing concepts of an integrated management. Taking a generalization of these integrated management concepts as a guideline, the general areas of PLM will be derived and being detailed by a descriptive model and finally applied to the communication service provider (CSP) industry. The structure of the paper is shown in Figure 1. Figure 1  Structure of the paper Dimensions of anintegrated Management (Chapter 2) Dimensions of an integrated PLM (Chapter 3) Industry specific PLM (Chapter 4) StrategyStructureStaffSystems PLM-StrategyPLM-ProcessProduct Structuring    E  n  v   i  o  r  n  m  e  n   t      P   L   M    I   T -  A  r  c   h   i   t  e  c   t  u  r  e PLM-StrategyProduct Structure    P   L   M    I   T   A  r  c   h   i   t  e  c   t  u  r  e PLM Process DeductionSpecialization   2 Integrated management as an analysis raster PLM is part of a company’s corporate management. Managing is a systematic, purposive, well planned and controlled activity to run a social system. Thus, management has the objective to design, guide and develop those social systems (Bleicher and Pümpin, 1996). According to Abramovici and Schulte (2004), PLM is a strategic management approach. Strategic management has a long tradition. In the 1980s for example the market-based view emerged and suggests companies to establish market barriers to keep competitors away from home markets. Every management approach should follow a certain pattern, because they all have the same objective: to design, guide and develop social systems. To reveal the pattern the authors have conducted a literature review of today’s common integrated management approaches and analyzed the different management approaches with respect to similarities and differences. The next paragraph will show the results of this analysis.     Holistic PLM-model 383   2.1 Literature review Having analyzed the current literature of integrated management six major approaches can be identified, that have contributed in the evaluation of an integrated management (qv. Table 2). For the purpose of this paper, each approach and its dimension was examined in respect to similarities and differences (intersections). As a result the approaches can be harmonized into following five dimensions: strategy, structure, systems, staff and culture. Each of these dimensions should be considered from a corporate perspective in order to gain competitive advantages. Table 2  Results from the literature review  Peters and Waterman (1982)  Meffert and Bruhn (2009)  Rüegg-Stürm (2005)  Backhaus (2003) Strategy Strategy/systems /shared values Controlling and monitoring Strategy – definition of product portfolio - Structure Structure (organisational structure) Organisational structure and process organization Structure (organisational structure and process organization) Structure Systems --- Information-systems --- Management systems Staff Staff/skills --- --- Staff management Culture Style (management culture, leadership) Company-culture as well as individual one Company culture, ethical value Culture  Bleicher (2004) Leavitt (1973) Batenburg et al. (2006) Strategy Grouping of modules on a strategic layer in the dimension structure behaviour, activities -- Strategy and  policy/monitoring and control Structure Dimension structure with modules on normative, strategic and operational layer Structure task Organisation and process Systems Modules for management systems and disposition systems Technology Information technology Staff In the broader sense behaviour People People Culture Module for company culture --- Culture Since Staff and Culture form a close union in many publications, the authors integrate Culture into Staff to focus the analysis raster on more relevant PLM aspects. The remaining four dimensions, strategy, structure, systems and staff, are regarded as being a general guideline for an integrated management. Therefore we assume in the following course of the paper that these general dimensions can serve as an analysis raster, which can be applied to identify the general framework elements for an integrated PLM. 2.2 Operationalization of the analysis raster In order to develop the holistic PLM framework from the dimensions of an integrated management, each dimension will be described. The meaning of each dimension will serve as an anchor to finally derive the elements of the holistic framework.
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