Tata Technologies PLM Analytics Maturity Assessment Program
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1 Tata Technologies PLM Analytics Maturity Assessment Program October 2014 CIMdata, Inc Research Park Drive Ann Arbor, MI
2 Tata Technologies PLM Analytics Maturity Assessment Program Tata Technologies has developed a tiered PLM Analytics maturity assessment program designed to provide insight and guidance to customers about the state of PLM within their enterprise. This three-component approach enables a company to start with a quick, no-cost overview assessment that will identify issues and potential directional priorities for their PLM program. With each successive tier, they obtain more extensive knowledge about their current situation, leading to a detailed execution roadmap to guide them. Using the results of the PLM Analytics methodology helps companies close their PLM value gap. Introduction to PLM CIMdata defines PLM as a strategic business approach that applies a consistent set of business solutions to support the collaborative creation, management, dissemination, and use of product definition information across the extended enterprise. PLM spans from product concept to end of life: integrating people, processes, business systems, and information. PLM forms the product information backbone for a company and its extended enterprise. It is enabled by a set of foundation technologies, core functions, applications, and business solutions that incorporate best practices, methods, and processes. CIMdata uses the term product in a broad context. A product can be a physical item, a system, and/or service as it is defined, delivered, and supported. This definition includes discrete products such as automobiles, toys, medical devices, and airplanes as well as formulated products such as food, chemicals, pahramaceuticals, and petroleum. CIMdata s definition for product also includes infrastructure such as plants, oil rigs, petrochemical facilities, airports, roadways, and telecommunication grids. Maturity Assessment Background Maturity assessments examine multiple characteristics (processes, standards, data usage, etc.) of a particular discipline (e.g., PDM, CAD, systems engineering). This paper describes a maturity assessment methodology for PLM, however, the concepts are applicable to other areas as well. Maturity assessments investigate issues related to best practices of the discipline being measured at a number of maturity levels. When their maturity is evaluated and measured, these provide current capability levels and can be used to identify PLM maturity assessments help companies understand how well they are supporting a PLM strategy. Copyright 2014 by CIMdata, Inc. 1
3 potential improvements and goals for a company to improve how they support the discipline being measured. When a maturity model is applied to and shared by a number of organizations in a particular industry then it can provide an industry-specific benchmark against which to evaluate an organization s maturity with respect to others in the same industry. This PLM methodology for maturity assessments is based on work originally done to support Capability Maturity Model Integration (CMMI ) 1 and Readiness Assessment for Concurrent Engineering (RACE) 2, but highly modified and refined by CIMdata to address PLM and related strategies. CIMdata s PLM maturity assessment has been applied at dozens of companies across many industries. The maturity assessment methodology provides a relative assessment against best practices characteristics built into the model. It does not provide an absolute measure of maturity. Gaps against best practices identify the organization s maturity position which can be easily seen in charts and tables. That is, if the organization is at a low maturity for an element, then the gap from best practice is large, if they are at a high maturity for any element, then the gap is small. The model defines a set of levels of maturity (typically 3 or 5) depending on the area being measured, the higher the level, the more mature the organization. These higher levels represent best practices by definition. The maturity assessment suggests areas of improvements to pursue, but it does not automatically provide a project plan for specific improvement actions. Additional knowledge of both the discipline being measured and the organization and how it functions is required to understand how to define appropriate improveents. In general, an organization will not attempt to meet the highest level of maturity for all of the elements measured in the assessment. Achieving the highest maturity may be extremely costly and attaining the highest level of maturity in every category may not be required for business success or produce significant business benefits. Three areas of maturity are assessed for PLM: PLM Organization: Examines how well the organization is structured, trained, operated, and managed to apply a PLM strategy and to work with PLM processes and tools. PLM Processes: Explores the processes used to support PLM including communication, change control, collaboration both inside and outside of the organization, use of defined product development processes, management disciplines, etc. PLM Technology: Determines the level of IT infrastructure and solution deployment available to support a PLM strategy including consistency of tool use, how data is maintained, maturity of tools, tool and information integration, etc. Maturity assessments provide suggestions for areas in which the PLM strategy can be improved. 1 Carnegie Mellon University 2 Concurrent Engineering Research Center West Virginia University Copyright 2014 by CIMdata, Inc. 2
4 Why Companies Should Assess Their PLM Maturity For the three PLM areas it measures the current state of an organization s ability to perform in the area and areas where an organization can improve compared to best practices are identified. The benefit of this is that companies can narrow the PLM value gap. That gap has been found to be substantial. Figure 1 illustrated the value gap as measured for the aerospace and defense industry. The PLM value gap shows the lag between what PLM capability has been implemented vs. what could be implemented. Figure 1 PLM Value Achieved vs. Potential for A&D Industry (Results of CIMdata Survey) Ultimately, a PLM maturity assessment can guide companies to a PLM roadmap that will enable them to deploy an environment in which they can implement technologies, processes, and organizational changes that enhance the overall product development process from early concept through product end of life. This in turn leads to improved bottom-line and top-line benefits. Tata Technologies PLM Analytics Program s Value to a Customer Tata Technologies has developed PLM Analytics to provide insight and guidance to customers about the state of PLM within their enterprise, the maturity (ability to adopt and deploy) of PLM, and the creation of a detailed PLM roadmap that will support their business strategy and objectives. Each component builds on and complements the previous tier but they can be implemented independently. However, following the three-tier process delivers maximum value for the customer. The complete multi-component program delivers an analysis of a company s PLM business environment; identifies business drivers, strategies, and currentstate conditions with associated key performance metrics likely to be improved by PLM; compares the company s As-Is state with industry averages; and finally provides recommendations for a PLM deployment roadmap. Tata Technologies tiered PLM Analytics program provides increasingly high levels of detail on the maturity of a company s PLM Copyright 2014 by CIMdata, Inc. 3
5 The three components of PLM Analytics are: A PLM Benchmark A PLM Health Check A PLM Roadmap Figure 2 depicts the three components of Tata Technologies PLM Analytics. Figure 2 The Three Components of Tata Technologies PLM Analytics Program (Courtesy of Tata Technologies) It is important to note that the first two components of the PLM Analytics process are technology agnostic. They do not depend on a customer s current or proposed PLM supporting technology solutions. However, the third component often contains technology elements, as this component specifies the pragamtic steps for improving the use of PLM in the organization. PLM Benchmark Assessment The first component of PLM Analytics (PLM Benchmark) is a single senior executive s opinion of the current state and future PLM requirements for his or her business. It focuses on the following 17 key PLM elements: Portfolio Management Quality/Compliance Management Requirements Management Supplier Collaboration Project/Resource Management Manufacturing Process Workflow/Process Management MRO Configuration/BOM Management Reporting & Analytics Classification Management Collaboration Component Management CAX Integration Document Management Visualization Change Management The first component is a free high-level analysis based on an individual s input. In addition, some basic business information is captured. Copyright 2014 by CIMdata, Inc. 4
6 PLM Benchmark is conducted with the help of a Tata Technologies PLM sales person or consultant. The objective of this Component is to help a company get an early understanding of the maturity within their PLM processes, a high-level look at how they compare to others in PLM, and how they might invest the opportunities afforded by PLM into their business. Persons taking the PLM Benchmark are guided through 17 questions, each addressing a PLM functional component area (listed above). For each question they are asked to select one of five possible answers. For example, in the category of Quality/Compliance Management the possible answers are: 1. Based on individual responsibility 2. Controlled only on final products 3. Quality/compliance controlled on the fly per site or department 4. Quality/compliance managed by a group at corporate level 5. Regulation managed by a dedicated department (FDA ) At the end of the assessment a high level benefit is calculated based on the business information provided. The executive taking the PLM Benchmark is invited to spend this benefit in value areas within the business. The areas identified are improving time to market, increasing the portfolio of the company, and improving product quality. A report is automatically generated that includes: Estimated top- and bottom-line benefits A chart which provides a ranking of their estimated maturity in each of the 17 categories against others in their industry A chart that shows the gap between their current "As Is" state of PLM Maturity against a possible future or "To Be" state PLM Health Check Assessment PLM Health Check is a web-based survey developed jointly by Tata Technologies and CIMdata, Inc., that is designed to determine the current state of an organization s product lifecycle on the dimensions of organization, process, and technology. It identifies the primary characteristics that must be considered when assessing each of the process, technology and organizational elements and it establishes the mapping between the key criteria for a given organization, process, and technology element and its maturity. The objectives of the assessment are to determine the maturity of the organization in the following areas: PLM Organization: Examines how well the organization is structured, trained, and managed to apply a PLM strategy and work with PLM processes and tools. PLM Processes: Explores the processes used to support PLM including change control, collaboration both inside and outside of the organization, use of defined product development processes, management disciplines, etc. The second component evaluates the current state of an organization s PLM on the dimensions of organization, process, and technology. Copyright 2014 by CIMdata, Inc. 5
7 PLM Technology: Determines the level of solution deployment to support a PLM strategy including consistency of tool use, how data is maintained, maturity of tools, tool and information integration, etc. Of particular interest is the Organization survey as it is often the maturity of a company s organization that most affects the success criteria for any PLM improvement plan. The assessment is driven by surveying a number of people across the organization with various roles in product realization (not limited to product development). PLM Health Check identifies maturity levels across key areas of PLM (typically either 3 or 5). The higher the level, the more mature. Gaps are identified between the respondents measured level and the higher levels, based on general industry-wide best practices, defined in the model. Areas for improvement and processes to be implement to improve maturity are suggested. The assessment results are presented in an assessment report that includes a series of spider/radar charts such as those shown in the following Figure 3. Figure 3 Examples of the Three Assessment Area Elements in Spider Charts The assessment report also provides charts of the company s maturity level versus its overall process efficiency and effectiveness for each of the three areas and how efficiency could be improved by increasing their maturity levels. The methodology provides a relative assessment of the gaps against the best practices characteristics built into the maturity assessment model and identifies the respondents maturity position presented in the spider charts. The opportunity assessment model cannot suggest to a company how to narrow its gaps, but it does identify areas of improvement or processes to implement. The results of PLM Health Check can then be used to guide the work in the third component of PLM Analytics and help develop a roadmap for PLM deployment to achieve the most effective return on a company s PLM investments. PLM Roadmap Assessment The PLM Roadmap assessment is a high-value digital maturity assessment that benchmarks current processes and capabilities critical to realizing PLM value resulting in prioritized improvement opportunities. Representative personnel at Copyright 2014 by CIMdata, Inc. 6 The third component is a deeper dive facilitated by consultants that develops a roadmap to direct expansion of a PLM strategy.
8 senior management, middle management, and end user levels are selected from key business areas of the business (e.g., product development, manufacturing, services, etc.) to participate in face-to-face interviews where specific business processes and technologies are discussed and specific Solution Elements of a PLM improvement plan are defined and agreed. The results of the PLM Roadmap assessment is a report containing a clear and actionable PLM improvement roadmap including PLM tool selection, tailoring and customization, a benefits realization plan, the business case for PLM, and other factors. Required actors within the organization, who will be responsible for delivering on the roadmap, are identified to ensure a smooth and receptive implementation. As part of PLM Roadmap, key performance indicators (KPIs) are identified and a reporting mechanism defined to ensure that benefits are measured and reported back to senior management so that the value of PLM is achieved and recognized. Tata Technologies PLM Competency Tata Technologies is a global, full-service provider of Product Lifecycle Management (PLM) and product development consulting and services with a focus on aerospace, automotive, industrial machinery, heavy equipment, and construction industries. They have developed significant domain expertise in each of these (and other) industries that they apply to their client s requirements. That domain expertise includes industry specific functional requirements, standards, regulatory issues, and the product development and manufacturing processes of those industries. Tata Technologies has long-term established partnerships with many of the leading PLM technology suppliers. While agnostic in reviewing a client s requirements, they have the knowledge to recommend solutions that can most effectively meet individual client s needs and then have the in depth knowledge to tailor and implement the selected solutions. One of the key factors in Tata Technologies PLM competency is that they use the PLM products and solutions they recommend to their clients. What that means is that they understand those products through real-world use. This gives them a deep understanding of how the various PLM solutions must be implemented and used to help keep Tata Technologies competitive in the global market. They can then translate that experience and knowledge to their client s businesses. Case Studies Tata Technologies has extensive experience with all aspects of PLM maturity assessments. In one case, Tata Technologies conducted a complete end-to-end assessment for a major European energy products company. The assessment supported a transformation initiative and identified over 70 opportunities for Tata Technologies has broad PLM-related consulting experience. Tata Technologies has helped its customers improve their product development operations through the use of PLM. Copyright 2014 by CIMdata, Inc. 7
9 improvement with a total of approximately $80 million potential savings and incremental profit. In addition, a clear blueprint for future projects was provided. In another engagement, Tata Technologies worked with a global automotive OEM, headquarterd in the US. The customer had multiple legacy systems and multiple vendors and service providers using their own data formats and standards. An ownership change triggered a major data and tool migration. Tata Technologies executed a quick 2-week scan to assess requirements and build a transition plan. This then was executed over a period of two years to enable a seamless shift of over 4,000 users from one CAD authoring platform to another. In a third example, Tata Technologies worked with an Aerospace company that manufacturers military and commercial helicoptors. The challenge facing the OEM was to improve supply chain connectivity. The assesment model was used to identify the best method of achieving this along with potential roadblocks. A consolidation project resulted in unifying the client s disparate systems and implementing a common set of supplier data exchange methods. Conclusions A PLM maturity assessment provides a relative assessment for a company against best practices characteristics built into the assessment model. When the maturity is evaluated and measured, the results can be used to identify potential improvements and goals for a company to help them narrow the PLM value gap (see Figure 1) and achieve a more effective PLM environment. PLM Analytics provides insight and guidance to customers about the state of PLM within their enterprise. This three-pronged approach enables a company to start with a quick, no-cost overview assessment that will identify issues and potential directional priorities for their PLM program. In each component, they obtain more extensive knowledge about their current situation, leading to a detailed execution roadmap to follow. Using the recommendations that result from each component of PLM Analytics, companies can work to close their PLM value gap. This suite of services provides advice in accessible steps from high-level to very detailed actions. CIMdata believes that using this set of maturity assessments is an effective and valuable method for companies to obtain a good understanding of their As-Is situation and develop a practical, executable roadmap for going forward. Tata Technologies has applied their significant PLM expertise to create the PLM Analytics program so that it is cost effective for a company to undertake and delivers actionable results with each assessment. The three-tiered PLM Analytics Maturity Model Assessment program provides companies with the guidance they need to improve their product development programs. About Tata Technologies Tata Technologies is a leading provider of engineering services and product development IT for the global manufacturing industry. The company applies cutting-edge technology and engineering know-how to provide a competitive advantage to customers in the manufacturing sector. Tata Technologies is a Copyright 2014 by CIMdata, Inc. 8
10 strategic partner for developing complete vehicles, engineering subsystems and components, managing the NPI process and collaborative engineering engagements, and tying together information created and used throughout the extended manufacturing enterprise. Corporate headquarters are in Singapore, with regional headquarter offices in the United States (Novi, Michigan), India (Pune), and the UK (Coventry). Founded in 1989, the company has a combined global work force of more than 7,000 employees serving clients worldwide from facilities in North America, Europe, and the Asia-Pacific region. Tata Technologies PLM services focus on helping companies build better products, define better processes, and reduce costs along the way. Tata Technologies leverages more than two decades of PLM domain expertise, industry-leading software partners, and innovative training services to optimize PLM investments and help manufacturers better respond to ever-evolving market conditions. Learn more about Tata Technologies at: About CIMdata CIMdata, an independent worldwide firm, provides strategic management consulting to maximize an enterprise s ability to design and deliver innovative products and services through the application of Product Lifecycle Management (PLM). CIMdata provides world-class knowledge, expertise, and best-practice methods on PLM. CIMdata also offers research, subscription services, publications, and education through international conferences. To learn more about CIMdata s services, visit our website at or contact CIMdata at: 3909 Research Park Drive, Ann Arbor, MI 48108, USA. Tel: Fax: ; or at Oogststraat 20, 6004 CV Weert, The Netherlands. Tel: +31 (0) This document is copyright 2014 by CIMdata, Inc. and is protected by U.S. and international copyright laws and conventions. This document may not be copied, reproduced, stored in a retrieval system, transmitted in any form, posted on a public or private website or bulletin board, or sublicensed to a third party without the written consent of CIMdata. No copyright may be obscured or removed from the paper. CIMdata is a Registered Trademark of CIMdata, Inc. All trademarks and registered marks of products and companies referred to in this paper are protected. This document was developed on the basis of information and sources believed to be reliable. This document is to be used as is. CIMdata makes no guarantees or representations regarding, and shall have no liability for the accuracy of, data, subject matter, quality, or timeliness of the content. Copyright 2014 by CIMdata, Inc. 9
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