Product Lifecycle Management (PLM): Critical Issues and Challenges in Implementation - Information Technology and Product Development - page 91

One of the more direct connections that the product development process has is
with the supply chain and the manufacturing of the final product.
PLM implementations can tighten the bond between the revenue generating part
of the business (product development) and the operational cost management (supply
chain and manufacturing) processes that have traditionally received more attention.
There is no argument that securing materials, storing, and consuming them can
have a significant impact on a company's financials. But just imagine the benefits a
company could receive if they not only controlled expenses well, but also selected
materials and parts in such a way that the best part for the product at the right price
for a given quantity at the right time was always secured!
5.3.3.1 The Ever Elusive Integrated Process
A properly automated product development process could help create this nirvana -
but make no mistake, driving this kind of efficiency between product development
and the supply chain processes is a huge PLM implementation challenge. Many
companies are aware of the obvious disconnects between the product development
and supply chain process; it is an admittedly difficult area of the business to drive
alignment. Some companies address the chasm by instituting groups into the orga-
nization that specifically focus on things like “product design costs.” This is an
expensive solution to the problem.
A great example of a process ripple is “part management.” Obviously, products
are made from specific parts and even the same product - for example, a computer, a
mixer, or even a guitar - can be differentiated by the quality of the parts in its assem-
bly. Sometimes the same part - say an aluminum 3 / 4 in. Philips head screw with fine
threads - can be used across multiple products even across multiple product fam-
ilies. However, this would require the product development engineer to recognize
the opportunity to reuse such a part, easily find the reusable part, and be able to
review the part specifications to ensure that the specifics for the part (e.g., tolerance
limits, cost, and color) will work properly with the newly designed product. When
this product development process is aligned with the company's supply chain best
practices (for example, approved vendor list, demand planning, and volume pur-
chase discounts), the actual part that the engineer picks is already accounted for in
the supply chain which means the company is already getting the best negotiated
price, the vendor has a successful supply history, and the necessary volumes of the
part are on hand to meet the forecasted demand.
When the different enterprise processes can be integrated, products have a better
chance of being delivered on-time and at an acceptable cost to the customer. The
truth is that one of the primary challenges to closing this revenue and cost manage-
ment chasm with the PLM implementation is team member expertise. PLM experts
that can also understand supply chain issues are not easy to find, and so unfortu-
nately, not many of today's PLM implementation address this issue. This reason
alone drives many well-intentioned PLM projects to focus on “the four walls of the
product development group” ultimately ignoring the potential value that could be
derived from integrated processes.