Product Life Cycle Management by Gerrit Muller Buskerud University College e-mail: [email protected] www.gaudisite.nl

Abstract Product Life Cycle Management addresses the full life cycles of products, from conception until disposal. The creation of the product determines largely what can be done with the product in the later life cycle phases. From business perspective the installed base, all systems that are operational in the field, is an asset that provides many opportunities. From technical perspective the operational life of products is quite a challenge, because systems keep evolving to fit in the market and to benefit from technical capabilities. This creates a variety of operational configurations that have to be served.

Distribution This article or presentation is written as part of the Gaudí project. The Gaudí project philosophy is to improve by obtaining frequent feedback. Frequent feedback is pursued by an open creation process. This document is published as intermediate or nearly mature version to get feedback. Further distribution is allowed as long as the document remains complete and unchanged.

July 4, 2016 status: preliminary draft version: 0.2

initial R1 SW delivery R1 HW

sw upgrade

R2 SW forklift R1 HW upgrade

initial R2 SW delivery R2 HW

example Try to run Windows Vista on your 1GB computer from 2005...

sw upgrade

R3 HW

How long are new functions compatible with older system configurations?

R3 SW

When to break compatibility?

R3 SW

R2 HW

initial R3 SW delivery R3 HW

When does the customer pay for an upgrade? When to retrofit?

Figure Of ContentsTM introduction from conception to disposal product life cycle management process business the money dimension heart beat of changes the time dimension complexity huge number of configurations

conclusion Product Life Cycle Management 2 Gerrit Muller

version: 0.2 July 4, 2016 PLMlogo

Introduction: Basic System Life Cycle introduction from conception to disposal product life cycle management process business the money dimension heart beat of changes the time dimension complexity huge number of configurations

conclusion

conception

creation

Product Life Cycle Management 3 Gerrit Muller

production

operation

version: 0.2

July 4, 2016 PLMlogoIntroduction

disposal

System Life Cycle after Creation

Product Life Cycle Management 4 Gerrit Muller

July 4, 2016 MALCsystemLifeCycle

dispose

re

version: 0.2

secondary use

maintenance

p f sh urb ing i i in ppi shin st ng g al la tio n

accounts procedures

sh

local changes, e.g.

ip

le

s

using sa

maintenance

upgrade

using

add option

or

co de m ri n po g m ne an nt uf sh s a ip c tu in pin ri n st g g al la tio n

system order

Volume of Installed Base versus New deliveries

installed base 10..20 times initial deliveries legend initial deliveries

Product Life Cycle Management 5 Gerrit Muller

2008

2005

2000

1995

installed base decommisioned this is an entirely fictitious case

version: 0.2 July 4, 2016 PLMvolume

Case: X-ray Catherization System

Product Life Cycle Management 6 Gerrit Muller

version: 0.2

July 4, 2016 PLMxraySystemPhoto

Product Related Life Cycles

individual systems service system production system sales system creation

Product Life Cycle Management 7 Gerrit Muller

upgrades and options production upgrades and options sales

upgrades and options creation

version: 0.2

July 4, 2016 MALCproductLifeCycle

disposal

introduction from conception to disposal

product life cycle management process business the money dimension heart beat of changes the time dimension complexity huge number of configurations

conclusion

Product Life Cycle Management 8 Gerrit Muller

version: 0.2

July 4, 2016 PLMlogoProcess

Simplified process view customer supplying business customer oriented (sales,

process

service, production) process

val u

e

strategy

product creation process

people, process and technology management process

Product Life Cycle Management 9 Gerrit Muller

version: 0.2

July 4, 2016 RSPprocessDecomposition

Positioning PLM customer supplying business

process

Lif t c u rod

P

ue

customer oriented (sales, service, production)entprocess em g a n a M e l e Cyc val

strategy

product creation process

people, process and technology management process

Product Life Cycle Management 10 Gerrit Muller

version: 0.2

July 4, 2016 PLMprocessPositioning

introduction from conception to disposal product life cycle management process

business the money dimension heart beat of changes the time dimension complexity huge number of configurations

conclusion

Product Life Cycle Management 11 Gerrit Muller

version: 0.2

July 4, 2016 PLMlogoBusiness

Product Margin = Sales Price - Cost

margin

Margin per product. The margin over the sales volume, must cover the fixed costs, and generate profit transportation, insurance, royalties per product, ...

miscellaneous labour

material

Product Life Cycle Management 12 Gerrit Muller

cost price

sales price

street price

retailer margin and costs

Cost per product, excluding fixed costs purchase price of components may cover development cost of supplier

version: 0.2 July 4, 2016 SFCmargin

Profit as function of sales volume $

me o inc

profit

ses expen

fixed costs

variable

break even point

sales volume in units

expected sales volume

Product Life Cycle Management 13 Gerrit Muller

version: 0.2

July 4, 2016 SFCprofitAndSalesVolume

Investments, more than R&D financing

marketing, sales

business dependent: pharmaceutics industry sales cost >> R&D cost

training sales&service NRE: outsourcing, royalties

research and development

strategic choice: NRE or per product including: staff, training, tools, housing materials, prototypes overhead certification often a standard staffing rate is used that covers most costs above: R&D investment = Effort * rate

Product Life Cycle Management 14 Gerrit Muller

version: 0.2

July 4, 2016 SFCinvestments

Income, more than product sales only other recurring income

license fees pay per movie

services

content, portal updates maintenance

incomeservice services

options, accessories

sales priceoption * volumeoption options

products

Product Life Cycle Management 15 Gerrit Muller

sales priceproduct * volume product

version: 0.2 July 4, 2016 SFCincome

introduction from conception to disposal product life cycle management process business the money dimension

heart beat of changes the time dimension complexity huge number of configurations

conclusion

Product Life Cycle Management 16 Gerrit Muller

version: 0.2 July 4, 2016 PLMlogoTime

Example: Evolution of X-ray Systems 1980

1985

k V m A

1990

1995

2000

2005

electro-mechanical components

autonomous subsystems

vascular kV m A

cardio/vascular

synergy

kV m A

interfaces catherization lab

system control

k V m A

MR scanner

CT scanner

Cardiology Radiology Hospital

PACS

PC's

Information System

catherization lab

system of systems Product Life Cycle Management 17 Gerrit Muller

version: 0.2

July 4, 2016 FAIxrayTimeline

kV m A

tip positionin g ultra sound monitorin g

Creation Chain shared strategy, processes, tools, repository

aligned strategy, processes, tools, repository

component creator

component creator

component creator

independent strategy, processes, tools, repository

Product Life Cycle Management 18 Gerrit Muller

off the shelf component supplier

product creator & integrator

in house customer

partner product

priviliged customer

complementor

competitor

version: 0.2

July 4, 2016 PEVOCcreationChain

direct customer

customer via reseller

Example: X-ray Catherization System slow changing infrastructure

MR scanner

slow changing CT scanner Xray and mechanical technology

Cardiology Radiology Hospital

PACS

PC's

Information System

catherization lab

fast changing PC technology tip positioning ultra sound

kV mA

medium changing electronics X-ray catherization environment anno 2005 Product Life Cycle Management 19 Gerrit Muller

version: 0.2

July 4, 2016 PLMxraySystem

monitoring

partners

Example of Time Scale Model for Changes problem response

workstation useful life

clinical prototype

3 months

procedural change

legislation change

10 years

1 year

commodity hardware and software

MR scanner useful life

new generation of magnets gradients detectors minor SW release

Product Life Cycle Management 20 Gerrit Muller

major SW release

version: 0.2 July 4, 2016 HMPAlifecycles

introduction from conception to disposal product life cycle management process business the money dimension heart beat of changes the time dimension

complexity huge number of configurations conclusion

Product Life Cycle Management 21 Gerrit Muller

version: 0.2

July 4, 2016 PLMlogoVariation

Product Configurations Evolve Continuously F

G

H

F'

G'

D A

B

G

C

A'

B

F''

G''

J

B

M

L'

C

K

D' C

K

A'

B

product 1' F'

G'

D A

L

D

product 1 F

H

J

et cetera L

F''

G''

D I

A'

B

L'

I

K

D' I

product 2

product 2'

R1, 1995

R2, 1996

Product Life Cycle Management 22 Gerrit Muller

J'

K

A'

B

R3, 1997 version: 0.2

July 4, 2016 PLMevolutionConfigurations

Regression of Configuration

mandatory changes recommended changes upgrades options repairs F''

G''

M

L'

?

D' A'

B

?

?

D'.? C

K

?

?

?

initial delivery R3, 1997 good service poor service time pressure pragmatics availability

Product Life Cycle Management 23 Gerrit Muller

?

version: 0.2

July 4, 2016 PLMregressionConfiguration

?

Compatibility and Upgrading

initial R1 SW delivery R1 HW

sw upgrade

R2 SW forklift R1 HW upgrade

initial R2 SW delivery R2 HW

example Try to run Windows Vista on your 1GB computer from 2005...

Product Life Cycle Management 24 Gerrit Muller

sw upgrade

R3 HW

How long are new functions compatible with older system configurations?

R3 SW

When to break compatibility?

R3 SW

R2 HW

initial R3 SW delivery R3 HW

When does the customer pay for an upgrade? When to retrofit?

version: 0.2

July 4, 2016 PLMupgradingCompatibility

introduction from conception to disposal product life cycle management process business the money dimension heart beat of changes the time dimension complexity huge number of configurations

conclusion Product Life Cycle Management 25 Gerrit Muller

version: 0.2

July 4, 2016 PLMlogoConclusion

Systems Engineering and PLM future needs individual systems service system production system sales

system creation

upgrades and options production upgrades and options sales

disposal

upgrades and options creation

Systems Engineering: anticipation of future needs when creating new systems and features Product Life Cycle Management 26 Gerrit Muller

version: 0.2

July 4, 2016 PLMsystemsEngineering

Basic System Life Cycle

conception

creation

Product Life Cycle Management 27 Gerrit Muller

production

operation

version: 0.2

July 4, 2016 PLMbasicLifeCycle

disposal