Product Lifecycle Management Project.

a p r i l .16

Plm product lifecycle management bergsma.borbolla.delhaye.latour.pul.schipper

m.i.d.e.//university of twente

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PRODUCT LIFE CYCLE M A N AG E M E N T

AHREND CONSULTANCY UNIVERSITY OF TWENTE

w w w.utwente.nl

M. BERGSMA - S1217844 // J.BORBOLLA - S1712934 // M.DELHAYE - S1230670 // I.LATOUR - S1239724 // L.SCHIPPER - S0203629 // E. PUL - S1256777

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introduction

mapping the information

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9 problem defnition

12 solution

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28 implementation

conclusion

discussion

references

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INTRODUCTION Product Lifecycle Management (PLM) is the practice of managing product-related information from all stages: commission, production, use, service and disposal. PLM focuses on extracting knowledge from people, data, processes and other systems. The goal of this assignment is to give advice based on a PLM strategy to optimize working at Royal Ahrend. The company Royal Ahrend is an expert in the field of professional work environments. It is a big supplier of office furniture and a market leader. Sustainable, reliable, high quality and profitable are the core values for Ahrend.

The company is divided into various departments with their own specialties and skills. Based on interviews it has become clear that issues concerning communication deserve the main attention. The miscommunication coincides with product flows, therefore both communication and product flows will be the focal points of this advice.

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Mapping the i n fo r mat i o n Research into the company was done and additional information was retrieved from interviews with employees from Ahrend. The main objec tive was to find out more about the current work and communication flows within and between depar tments. A list of questions was set up as preparation for the interviews. The main interests were situated at the exchange of information files and order of produc t development. Then, all retrieved information was put together and mapped out to gain insight into the current situation. A description of every depar tment will be given with points illustrating what goes well and what goes wrong. Also, three ways of produc t development were recognized and identified.

t a l k i n g w i t h d e p a r t m e n t s

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Customer service

Data management

Product development

The customer service employees may deal with the customers directly or they are in touch with the sales account managers. Their main task is to support the account managers, providing the information they need. They also do all back-end tasks related to customer service, i.e. making invoices for small orders. The employees handle the complaints and all other information from the customers digitally, by email or phone calls. It is part of their job to make up invoices.

The data-management departments have two focal points: sales and production.

The necessary information comes from the account managers when they put the desired demands of the customers into BAAN.

The product development is responsible for the construction and technical modeling. They have two ways of working, at one hand they have the standard made products, and on the other hand they have the custom made products.

pros. +

All files are accessible by other customer service employees (and account managers).

cons.

- Information is stored in the employee's heads, which is tricky during an absence or illness.

- Complaints of the customers’ service employees are stored under the project number, but it is hard to identify structural problems, because similar complaints are not communicated between each other.

The data-management employees collect all data from other departments which is used for production. They also produce digital 3D models in Pcon Basket, which is a transformation to more simplified models.

Studio uses those visuals in communication to customers. When all the information is specified it will be put into BAAN for the production of the furniture.

pros.

- The department goes over all the information before production.

cons.

like visuals are loaded from BAAN and that slows down the process noticeably.

pros. +All files are shared within the product development team, so they all have access to the same files.

- Temporary information is stored in Excelfiles.

cons.

- Specification of information from orders in Baan could be incomplete.

+ There is no shared folder with other

- Only once per day a summary of wrong orders - Using Pcon Basket is rather slow, as information

The product development department creates the standard products. Normally, they have a lead-time of a year, which includes buying machinery. When the standard products are finished, they are sent to data management. The custom made products have a short lead-time, because the customers want their products as soon as possible. The information about the custom made products comes from sales. The task of the product development is to make a technical model of the product, so it could be produced. Part of the technical modeling and construction is also putting all manufacturing steps together to determine the cost price.

departments or external producers. Everything is shared by email.

+ Many different product numbers. + In case of the standard products, about 90 different versions are possible, all of them have to be put into ERP, but not all of them will be ever bought. This takes a lot of time.

Production

Studio

Sales

The production department is producing the final products in the factory. Production is using BAAN as their data management program. All information is transferred to BAAN by night. When the different parts don't fit as they should, production makes sure to repair this by hand.

Studio is using simplified models to visualize the designs for the customer. They also make the architectural design for offices and buildings.

Sometimes they get their information from customer services, but they prefer talking to the customers themselves.

The sales department is split up into two groups.

The researchers focus on the market and try to act upon it, because moving companies could be potential clients in (a latent) need of new Ahrend furniture (Leads/prospects). The account managers deal with the customers and work in the field. They try to find out what the customers want and take up the role of advisor. Making up neat invoices is part of their job, but can also be outsourced to a customer service employee. The information needed for the next phase is put into BAAN.

pros.

+ All the data is in one system. + Order Description is quick and can be finished fast. + MANCO system notifies if stock is empty.

cons.

- Changes in production or stock are processed in batches every half an hour, so this is not always up to date.

- Making changes in an ongoing process is difficult.

- Changes in production are not noted clearly, so parts can be of different versions and not fit anymore.

-Stock isn't always correct in the system. this takes a lot of time.

pros. + All standard products are in the modeling program of studio and can be used.

+ Changes in standard products can be made easily.

+ Information is accessible for everyone. + Architects and designers work together.

cons.

- Customs made products are not stored, and need to be made again every time.

- There is no further communication about custom made products with product development or other departments.

- Biggest problem is the communication - Information screens in the factory aren't clear, hard to tell about missing parts or making changes.

- At the assembly site it's not clear if the parts are produced already to start assembling.

pros.

between the multiple departments.

- Storing the files in one big drive. Hard to find the document afterwards. There is a standard for storing, but this is not always used.

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Desk research provides information for the account managers

cons.

- The account managers don’t fully specify what the customer wants and fill in a “yet to be determined.”

- The account managers can’t find all their contacts in BAAN. - The projects are stored under separate files numbers/names.

- Mutual processes are not transparent.

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All information is in BAAN, but isn't shown correctly.

- If something is not known (in BAAN) production cannot start.

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Simple standard sale The first way of selling a product is when a customer reaches Ahrend online, either the sales department or customer service, and they order few products from the standard line; for this they do not need the work of studio because it doesn’t involve any interior design but just a purchase of their products.

Scheme explanation step by step.

1. When the customer has some questions about the standard list of products first customer service is being reached. If the customer is already sure of what is wanted, sales department is reached then.

2. The previous contact between the customer and the company (any of the aforementioned departments) leads to simple product purchase.

3. Any of the departments sends this order to BAAN. 4. When it reaches BAAN, production takes it in order to start working on it.

5. After production is done, the products are delivered to the customer.

fig. 1 simple standard sale flow chart Cohen, & Bailey.

(1997).

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Standard development of products Scheme explanation step by step.

1. Product development will research and plan what the best way is to produce the products and puts all the information into BAAN. 2. Data-management employees will make sure all the information is correct and specified.

3. Studio will make a visual model of the layout.

4. The visual layouts and ordered furniture details are discussed with the client directly or through the sales account managers as a mediator.

5. The customer gives his approval.

6. Account manager confirms order and proceeds with finalization.

7. The production initiates production of the desired standard products.

FIG. 2 STANDARD DEVELOP. OF PRODUCTS FLOWCHART.

CUSTOM MADE ORDERS Scheme explanation step by step.

1. Customer and sales have contact about a new order and negotiate with invoices.

2. Studio provides customers with visuals for the new order, supporting sales.

3. The customer is approving or adjusting the order.

4. Sales department completes the order by finalizing the invoice and making an order for the other departments.

5. Product development adjusts existing products according to the order.

6. Product Development puts the specifications into BAAN. 7. Data management converts the high quality models of product development and puts the data into BAAN. 8. Sales uses the information in BAAN which is about: prices, and visuals from PCon etc.

9. Data Management uses the specifications from the order to put into BAAN. And puts through an order, to set the rest of the process in motion.

10. When the order is put though, then the production (etc.) side is managed from BAAN. 11. Production uses information from Baan to know what to produce. They get a pricelist that they should produce.

12. In BAAN is registered what the progress of production is.

13. Customer service does all the after sales tasks.

14. Customer service gets information from Baan to inform the customers or support the account managers. They also fix appointments for delivering and putting together the furniture.

15. Production makes sure the order is complete and packed.

fig. 3 custom made orders flowchart.

16. The mechanic delivers and sets up all the furniture at the customer’s place.

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Pr o b l e m defnition

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fter talking to the different departments at Ahrend, all retrieved information was gathered and graphical flows were made. It was clear that there was no big problem at the standard product production and order flow. However when the orders for specials are investigated in detail the flows show that there is a complex, unclear path in which orders take place between departments.

The focus of the solution should be on the specials, by optimizing the information and communication flows within this process. In the end, Ahrend could work more efficient overall, as well at the special orders as at the standard product orders.

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solution It has been thought to approach the problem from two perspectives: short term and long-term solutions for the production of specials at Ahrend. Short-term guidelines would help as soon as they are implemented, which should be possible within a year, and longerterm solution should be implemented within five years.

Furthermore, it creates more awareness within the relevant departments of certain communication demands. A long-term solution should be considered due to the fact that this might represent a more efficient way to switch the focus of the company from standard production to specials production; the latter represents most of the revenues that the company makes nowadays.

Short term solutions Within Ahrend, the specials are passing multiple departments. Nowadays, it lacks in communication between these departments about different projects, which can resolve in unclear situations. In the end there isn’t a person responsible for the total project, but different people have different know-how within each department.

For every project it is useful to create a multidisciplinary team, because research has shown that group cohesiveness is positively related to performance. (Cohen & Bailey, 1997) This team consists of a responsible person from every relevant department. Some projects can be determined as a large project, because of its costs, lead-time, new customers, and projects with high impact or complexity. Therefore, it is useful to have a responsible project manager at these large projects. By assigning a project manager to larger projects, one person is the contact point for all questions related to the project and at least one person has the complete overview of

the project. Making one person responsible can also avoid mistakes during the process.

For smaller projects the multi-disciplinary team is needed to create a feeling of shared responsibility and faster communication within the departments, in which it is a multi-disciplinary team by name. This is because smaller projects have no need for project meetings.

The difference between smaller and larger projects for the teams is the scheduled project meetings.

Large projects will have regular meetings. At least one meeting should take place just after the design phase, before the design is presented to the customer. This way possible problems in the design can be discussed and feasibility problems can be avoided. The project manager can estimate if extra project meetings are necessary. If so, extra meetings can be planned.

fig. 4. standard- personalized inf. flowchart.

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c h p r

e c k l i s t o t o c o l

When developing and producing the orders of specials many iterations are made, in the current situation the information flow is inadequate and miscommunication appears. Therefore, it is good to organize all information that is dealt with within those projects. Providing Ahrend with a checklist tool to structure projects makes the process more efficient.

The checklist is a representation of project progress.

This can be done as a file, for example a .pdf form, as a website (portal) or as a full graphical interface program. The best solution should support working with multiple users simultaneously, e.g. Google Docs. Departments can view the progress of all the other departments, without disturbing them. The checklist can be ‘smart’, in a way that it can allow or not allow certain actions if it is incomplete or requires a file if a checkbox is checked. These ‘rules’ should be chosen to allow iteration, but also coerces right documentation.

Every department can link and access their files through the checklist. Every point of action, and related file, can be checked off when it is complete.

That makes it possible to give other departments a notification when all information that they need

is available and they can start on the project. The checklist creates a general workflow for every project.

However, it is possible that changes and iterations are made. The checklist will then be adjusted, some ticks will be removed. This adjustment can be recognized and the departments that are influenced by it will get a notification, so they can reconsider their input.

Some comment boxes are needed to add comments on the projects or on what has been changed.

For one customer there could be multiple project checklists, these can be stored digitally in the customer file folder in the database, sorted on date.

Every checklist is connected to one project folder.

In every project folder there are folders for every department. In this way there is some oversight in the folder structure. When documents are opened through the checklist, saving should automatically occur in the right folder. The folder structure is only for easy working within projects. However, when something should be looked up, then a search engine can do it. This will search in a database with all files ordered in a non-hierarchical network structure.

c h ec k l i s t p r oto co l

NOTE: CHECKLIST DOCUMENT available in the previously shared folder.

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OMMUNICATIOIN GUIDELINES // COMMUNICATIO

+St a r t i n g a p r o j ec t :

a. At the first (documented) meeting with the customer, the account

manager starts a project. The right folder structure and the checklist are generated on the database. The account manager directly fills the checklist so far.

b.

When the checklist is available, a customer service employee should establish a project team. This department is already in direct contact with the other departments, acting as a sort of internal commercial service.

+ E xecu t ion of projec t:

a. Fill in the checklist completely. b. Link every file that is generated to the checklist. c. Update progress directly in the checklist. d. Follow the standard filename-structure. e. Data-management checks if everything is complete

order to production.

f.

After the evaluation the checklist is finished.

and sends the

/ COMMUNICATION GUIDELINES // COMMUNICA

TION guidelines // communication guide C The checklist covers the largest part of the projects. However, next to the checklist additional guidance is needed for parts that are not covered by the checklist. Therefore, guidelines are formulated to guide working with the checklist. They support starting and finishing the projects and help to make sure all necessary steps are taken.

N GUIDELINES // COMMUNICATION GUIDELINES /

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L o n g - t e r m s o l u t i o n Most problems at Ahrend nowadays occur at the specials, and special products that may have been made before but are handled as new specials. To solve these problems Ahrend should start providing their specials at a different way.

As a long-term solution for Ahrend, a generator should be created. An online generator which consists of ‘standard’ products and small changes could be made and an internal generator, that can only be used by an Ahrend employee, where even more possibilities are shown. Additionally, a database could be created from the generators, to store the products and to retrieve information later on.

GENERATOR

T

here is thought of two generators that are able to create products at Ahrend. There will be an online generator visible for customers with all standard options and an internal generator for Ahrend employees with a lot more options and possibilities to create specials.

be used by Ahrend employees. Changes like adding holes and changing sizes are part of the great amount of possibilities. By giving a this amount of possible changes almost any special product would be able to make within this generator. Still, the created specials are all technically possible and no non-feasible products will be designed, as all options are checked

First, the online generator that is an online before they are placed in the generator. visual display of the standard products. This generator could be used by customers on the Last, it could still occur in exceptional website of Ahrend. Some customizable options like situations that there is demand for products that colors, some materials and personalized stickers are cannot be created by using the extended generator. shown and could be changed by the customer for an At this point, a tailor made product will be designed additional charge (Grenci & Todd, 2002). and produced. The process that is used nowadays, to produce specials will be started. Ideally, these

Standard products are sold within the tailor made products should be avoided as much as standard pricing criteria. Moreover, Ahrend would possible, because a lot of problems can occur within give the option to the customer, by implementing this process. For this reason, tailor made will be the this online generator, to personalize the order, which last option to use, if nothing else is possible. is not outside the standard production capabilities, but gives the customer the feeling of a special order.

The extended Ahrend generator will get more However, from Ahrend’s perspective these are actually options later on. The longer the generator is used, the standard products, because the possible options at more specials are possible and the less tailor made the online generator are selected beforehand by products will be made. In the most ideal situation, Ahrend. Customers will pay for the idea of customized the generator would be adequate and tailor made products, while in reality there is just a broader line of products will not exist anymore, but this will be the standard products that are offered to the customer. future.

In the end, the online generator could list estimated prices to give the clients a rough picture. However, Concluded, Ahrend products will be able to there will not be any online shopping cart but just split up in three different categories. First, there are a preorder option, Ahrend will always get in contact the standard products (with some personalization with the customer before the actual product(s) can options), when extra options are needed specials be ordered. could be made and the final option are the tailor made products.

Second, customers will still have the possibility to create ‘special’ products and room or space designs, The standard and special products both make including extra changes, which would nowadays be use of a generator. In general they work the same referred to as specials. Therefore, the customers and way, but the ‘specials’ generator is only accessible for Ahrend should have a meeting with each other. Within Ahrend employees and has way more options as the Ahrend, random changes will not be made anymore, online, ‘standard’ generator. This standard generator but also a generator is used and the changes are can be used online by the customers, but there based on the various options that are provided by will always be personal contact with Ahrend and the generator database. the customer before the order is placed. This way the personal approach of Ahrend isn't left out and

This internal generator is a way more extensive its involvement with their customers and customer generator than the online generator and could only service is kept unharmed.

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Fig. 5 product categorization, long - term solution.

fig. 6 generator preview, long - term solution

d ata b a s e When using the online and internal generators a database could be created to store the products. All files are saved with a standard filename, which is automatically generated by the system and at least consists of a project number, with the possibility to manually add information. This is to prevent that files are lost or placed within wrong folders.

efficient. By using this notification system, the number of information flows is reduced, which creates transparent and efficient processes.

Ideally a multi-level network system (non-hierarchical network structure) would be used in combination with a database in which all project are saved for future information, to make projects The products should be stored in a easily retrievable and more efficient. database with the purpose of retrieving information and products that were As mentioned before, using the created by Ahrend, later in time. In notification system will reduce the the most ideal situation, this database number of information flows. Information would be implemented in the network is checked less via intermediate steps, system that uses tags to make the track as each department is able to see all the of information more efficient and easier relevant and up to date information in the database. It can be seen in which to find for the database user. step a project is. The project manager The generator automatically sends is supervising this process and this will confirmed updates to relevant result in an efficient and structured departments via notifications within process, which are both beneficial for the generator. Assuming that all Royal Ahrend as for the customer. departments have access to this generator, this would be much more

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Implementation As said before, the short-term solution should be ready for implementation within 1 year. During this year, all departments need to adjust to the new way of working. It might be useful to implement the solution into phases, for example by starting with project teams for the bigger projects. Especially, in the starting phase the guidelines and its visuals will be of great use. After this first year, all employees should be used to working the new way and no extra action is needed anymore.

During the implementation of the short-term solution, the longterm solution should be started as well. A longer lead-time is needed to create the extended generator with a lot of designs.

We estimate that in approximately 5 years, the long-term solution could be into place and usable. However, when the solution is integrated into the working environment it is not yet complete. The generator should be updated and extended with new products and possibilities for every year afterwards. The longer the longterm solution is in use, the better it will function and the less tailor made products will be produced.

Conclusion During an evaluation of the current communication and PLM processes within Ahrend, some general problems are identified. Structural problems seem to be present within the communication within departments or can be related to the special made products.

To improve the PLM policy within Ahrend, it is attempted to solve these main problems. The solution can be split up into two phases. A short-term solution and a long-term solution.

The short-term solution can be implemented within a year time, and focuses mainly on the communication by implementing project teams, a checklist and communication guidelines. The long-term solution mainly focuses on the specials and consists of a generator and database to create a more general flow within the specials and completely changes the process of the design and orders. By changing the whole process, some longer lead-time is needed, so the long-term solution should be implemented within 5 years.

When the proposed solutions are evaluated, a change in the information and communication flows is visible. When comparing the flows of the before and after situation, a way less complex way of working can be seen.

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Discussion The solutions for Ahrend have been designed based on the identified problems, however, the workflow needs a change, which could be hard to adapt to. A great amount of change is asked from the employees, so to make these solutions work, the complete company should be supporting the ideas.

At the same time, Ahrend has to be willing to invest time as well as expenses into the restructuring of the PLM system in the first few years, to profit from it in the future.

Despite all efforts, employees might not follow the communication guidelines and checklist protocol. This could be due to laziness, over complexity and lack of commitment.

The advice solutions have not been tested in practice and therefore might not work as well as in theory. The new way of working could clash with the employee’s habits.

fig 8. new specials flow chart FIG. 7 old specials FLOWCHART.

REFERENCES. REFERENCES. REFERE

Cohen, & Bailey. (1997). What Makes Teams Work: Group Effectiveness Research From the Shop Floor to the Executive Suite. Journal of Management, 259-282.

Grenci, & Todd. (2002). Solutions-driven marketing. Communications of the ACM Robots: intelligence, versatility, adaptivity, Volume 45 Issue 3, 64-71.

Veldhuijzen, W., Ram, P.M., Van der Weijden, T., Niemantsverdriet, S., Van der Vleuten, C.P.M. (2007). Characteristics of communication guidelines that facilitate or impede guideline use: a focus group study. BMC Family Practice 2007, 8:31.

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PRODUCT LIFE CYCLE M A N AG E M E N T

M.I.D.e.

UNIVERSITY OF TWENTE

w w w.u t we n te.nl