PLM Case Study of Carestream Health using Aras for Global Product Development

1. Global New Product Development
Implementing Successful
Transformational Change
David G. Sherburne
Director
Global R&D Effectiveness
David G. Sherburne Carestream Health Inc. Page 1

2. Topic Outline
Snapshot of Carestream Health Inc.
Globalization –The forcing function
Insights for setting up a successful transformation
Learnings Summary
An overview of the Carestream Health project will be
presented later in the conference.
David G. Sherburne Carestream Health Inc. Page 2

3. Carestream Health – Who We Are
An independent company with a proven
track record and $2.5 billion in revenue
A world leader in:
• Medical imaging … digital and film
• Healthcare information solutions
• Dental imaging and dental practice
management software
• Molecular imaging
• Non-destructive testing
David G. Sherburne Carestream Health Inc. Page 3

4. Who We Are
Approximately 7,300 employees
serve customers in more than
150 countries worldwide
We hold more than 1,000
patents for technology and
intellectual property
Our products are at work
in 90 percent of hospitals
worldwide
David G. Sherburne Carestream Health Inc. Page 4

5. Who We Are
A global company with Manufacturing and R&D locations around
the world
Rochester,
New York
Woodbridge, London,
Oakdale, Connecticut United Kingdom
Minnesota
Berlin, Germany
White City, Shanghai, China
Yokneam, Israel
Oregon
Baltimore,
Maryland
Windsor,
Atlanta,
Colorado Xiamen,
Georgia
China
Ra’anana, Israel
j ,
Guadalajara,
Mexico
Paris, France
Toulouse, France
Manufacturing
R&D
Both Manufacturing and R&D
David G. Sherburne Carestream Health Inc. Page 5

6. The Globalization Challenge
Globalization was required to meet the business needs of our company
• Needed a balanced cost structure
• Desired access to global talent pools
• Required deeper understanding of emerging markets
Business Challenges
• Legacy Systems were outdated and not easily scalable
• Lack of adequate IT investment resulted in non integrated point solutions
• Collaboration became more difficult via e-mail, uncontrolled data with partners
• IT Infrastructure and networks were performing poorly in some parts of the
world
• Complexity in the organization increased as projects decentralized
• Knowledge workers time was being drained communicating globally
• Productivity of NPD remained roughly flat
David G. Sherburne Carestream Health Inc. Page 6

7. Legacy-Point Solutions lacking proper architecture and investment
Authoring PDM Enterprise
No Confluence
MCAD Tools CAPA Part MQDS
CAPA Integration
Teamcenter Data
Excel
NX No SAP
CAD Files PDF’s Integration MS
Pro/E Project
BOM
No Integration Lotus Notes DB Team
SolidWorks Pro/Intralink Room
EQDS CAPA Sys 9K RoHS,
CAPA
CAPA
AutoCAD Electrical P t
El t i l Part
DoC,,
No SOP MSDS
ME File Data, RoHS Integration (no
Shares, DA home)
ECAD Tools MMR
Mentor DX EE File External
CIDx Lotus Domino
No Systems
Cadence Integratio
Shares,
Shares No Integration
N I i
n library Standalone
OrCAD cache DocManager Systems
CAD Files PDFs CQuest
Altium
Version Control Tools Information
No
Software Integration Defects Flow
Clearcase ClearQuest
Authoring
PVCS Subversion Enhancement
Caused by Manual
Desktop Tools Requests “Cost Center” Integration
(Browser, StarTeam
MSOffice, t )
MSOffi etc) mentality
Automated
Quality Center DOORS Requirements
Integration
Management Tools
David G. Sherburne Carestream Health Inc. Page 7

8. Demands on NPD Workers Are Increasing
• P j t teams are split across several locations
Project t lit ll ti
• Platform development is adding complexity in software and hardware
• Iterative methods are desired for software and require fast information
q
transfer
• Daily builds are a common expectation for software
• Fast cycles are required for prototyping hardware
• Design for manufacturability is critical as ties to supplier base become
weaker
• Teams must leverage historical data to improve planning, compare
reliability, and drive improvements
• Engineers are p
g pushed to do deeper analysis to ensure p
p y product q
quality
y
while coordinating many sources of information
• Requests for metrics and historical data comparisons are ever
increasing and are taking longer to produce
David G. Sherburne Carestream Health Inc. Page 8

9. Our future success required
• A Leadership organization stepping up to create awareness, develop
strategy and drive change to improve operations
• Architectural awareness and maturity in design of enterprise systems
y g p y
• Careful integration strategies between applications- PLM-ERP-ALM
• A master-data strategy - removal of duplicate data sources and multiple
manual data entry points
• Closed-loop processes with traceability across the process space
• Product/HW systems optimized for access and collaboration
y p
• SW systems optimized for fast cycles and traceability
• Retention of all forms of Intellectual Property, internal and external, to
retain “business flexibility”
business flexibility
• Tight integration and traceability across requirements, project
management and engineering change control to meet regulatory
requirements
David G. Sherburne Carestream Health Inc. Page 9

10. Hitting the target- Its not just a simple arrow anymore
Technology Performance People
Driven Driven Change
Management
Communications
Global
Process Leadership
Closed Loop Strategy
Technology
Standard Awareness
Global
Inclusive Leading
Applications
End to end multi-
Architecture Cultural
Infrastructure Change
Master Data
Co-located and Global and
Focused Distributed
David G. Sherburne Carestream Health Inc. Page 10

11. Considerations required for Enterprise Transformation
• Complete view of New Product Development
“building blocks”
•A
Appreciation of th complexity i th “l
i ti f the l it in the “layers”
”
• Architectural orientation and familiarity with industry
technology
• Process understanding and balance
• Training
• Reporting structure and governance
• Ubiquitous platforms
• Complete teams designed for success
David G. Sherburne Carestream Health Inc. Page 11

12. Complete View – Understanding the Building Blocks
ideas Portfolio – Dashboards, Metrics, Web Channels
PLM – Product Life Cycle Management Platform
SUPPORTA
SUPPORTA
S
S
Service D
ideas PDM – Data ALM – Data
Portfo Manag
Management
Product Planni
Management
Proje Manag
Qua Data Managem
Ma
ideas for Hardware for Software
anufacture and Susta
olio
ality
Delivery, P
ABLE PR
ABLE PR
ect
ideas
RODUCTS
RODUCTS
gement
Pubs,Train
gement -P
ing Definition
Hardware Software
ideas g
Design
ment
Design –
PCP
S
S
ning
ain
Authoring – Authoring IDE
CAD-ME,EE
Integration of Applications
Core and Master Data Strategy
BOLD=Industry Term
David G. Sherburne Carestream Health Inc. Page 12

13. Appreciate the Complexity in each “Block”
Busine Proces Maturity
Presentation Layer
ess
Web Channels internal and external Social Dashboards BI
Social, Dashboards,
Increasin Architec
Business Process Layer - Standard Workflow and Responsibilities
(Engineering Change Control, Production Release Process,
ng
ss
Supplier Quote Process, Defect Management Process)
Application Layer
ctural Matu
y
Aras Innovator, Teamcenter, Doors, Clearquest and Clearcase
Data Layer
IT M
System of Record for Master Data Attributes Field Mapping to Metrics clean up
Data, Attributes, Metrics, clean-up
urity
Maturity
IT Infrastructure Layer
Networks, Servers, Databases, Storage, Back up,
Networks Servers Databases Storage Back-up Archive
Increase Organizational Maturity + Architectural Awareness = Success
David G. Sherburne Carestream Health Inc. Page 13

14. Architectural Orientation and Strategic Planning Ability
PDM Enterprise Systems Knowledge Sharing, Social Nets
Desktop
Office, HW PLM A Innovator
Aras I
and Webchannel
Project Webchannel/
Closed Loop Engineering Change Dashboards-
Social
Management (HW/SW) Metrics
MCAD Tools Development
Aras Event Tracking and Defect Mgmt
Supplier 1
CAPA Management
g KM
LN DBs
Supplier 2 Audit Management Platform
Supplier Access/ DFM Input
Supplier 3 Supplier Quote
stems
RQMTS
ECAD, MCAD PDM Integrations Manufacturing Transfer
New
New EBOM,
EBOM MBOM M Management
Authoring Sys
Modeling Raw Material Master SAP
Platform Costing
ECAD Tools Commercial Parts Library
Purchase
ECAD 1 RoHAS Portals – Integrated As Built
Testing Requirements Change Control
q g ECoutlook Master D t
M t Data
A
ECAD 2 ISDE Integration for SW events Smart source-Ebid
Quality
Platform Established
ECAD 3 Standard
Emerging
g g
Integrated SW Development Environment SW Environment)
Environment-
SW Authoring
Standard
ISDE 2012
MS Visual Studio Core SW Project Management, Build Tools and Services. Proposal
Dashboards Test Scripting
Some No
CM-STD Build Configuration
XCODE,
XCODE Other Integration Standard
St d d
Management
Key IDEs
End of
Life
David G. Sherburne Carestream Health Inc. Page 14

15. Business Process Development- Low Level Architecture Swim
Lanes PLI Initiative
Key Points
Drives deeper “use
case” discussions
Refines functional
requirement
understanding
Concentrates people on
future state and
consistency vs current
state, holding on to
today
Swim Lanes
Organization
Independent
Focuses training
development on p
p process
not button clicks
Focuses test plans for
validation on key
workflow performance
p
David G. Sherburne Carestream Health Inc. Page 15

16. Process Balance Yin-Yang
Suppliers and Partners
Defects
Research Concept Retirement
Product Lifecycle Management
Enterprise Resource Planning
Product
Application
Requirement Data
Lifecycle
Management Management
Management
Balanced representation from
p
Subject Matter Experts on both
ends of the process spectrum
David G. Sherburne Carestream Health Inc. Page 16

17. Training
• Technology and Process are complex, skimping on training
leads to inefficiency and slow adoption
• T i i th context of business process not Technology
Train in the t t fb i tT h l
“button clicks”
• Carefully identify the roles that require training and target
information
• Evaluate self paced training, it’s the hardest to deliver but
most flexible for users
David G. Sherburne Carestream Health Inc. Page 17

18. Reporting Structure and Governance
CTO Office CIO Office
Alignment with IT
• Ensures Scalability
Director R&D
Effectiveness • Architectural focus and alignment
David Sherburne • Improved on-going services
• Leverages strengths of both groups
Business Structure
• Sponsors
• Subject Matter Experts
• Middle Managers
• Finance
David G. Sherburne Carestream Health Inc. Page 18

19. Choose “Ubiquitous” Platforms and “Real” Partners
• Platforms must scale globally
• Provide a cost model in line with business benefit
• Allow web access with solid security
• Enable flexible configuration and integration
• Deliver user performance globally
• Allow for growth over time
• “Real” partners provide a strategic relationship
Share in risk
Offer fl ibl terms i li with b i
Off flexible t in line ith business needs
d
Partner during implementation
Keep costs in line with benefits
David G. Sherburne Carestream Health Inc. Page 19

20. Aras “Attitude” and Advantages
• Cost model allowed global scale
• Flexible architecture enabled rapid development
50% easier th other platforms
i than th l tf
• Web based, scalable cost model…
key to ubiquitous access
• Ties to MS Sharepoint, which is being evaluated
for the enterprise
• Good Technical Partnership – Anti-virus performance,
E-Signature help
• Some risk but balanced with High Value
• Community concept, that we hope to better leverage
David G. Sherburne Carestream Health Inc. Page 20

21. Complete Teams = Successful Results
Technology
Partners
Business Process &
and Application
Metrics Development Architecture
Leading Change
IT Architecture,
A hit t
Coding and Master Data
Configuration Cleaning and
Skills for Migration
ga o
implementation
All skills are
critical and
equal for
success
David G. Sherburne Carestream Health Inc. Page 21

22. Learnings to Date
• Mindfully consider the elements required for success…
• Carefully craft your team, leadership awareness, project management, and
communications skills
• Set project governance and decision rights formally
• Determine your internal critical mass and match with implementation partner
development speed
• Ensure business-process work leads and requirements follow
• Work in parallel with master data modeling and migration tests
• Train in context of the business process not in context of the tool
• Get involvement of Subject Matter Experts early and often. Cover all disciplines
and phases of the lifecycle…. Balance….
• Turn user interface prototypes early, fast and review the implementation
early
approach taken carefully
• Prioritize architecture and code reviews highly; easily skipped
• Verify and Validate functionality using business process diagrams as basis
business-process
David G. Sherburne Carestream Health Inc. Page 22

23. Global New Product Development
Implementing Successful
Transformational Change
David G. Sherburne
Director
Global R&D Effectiveness
David G. Sherburne Carestream Health Inc. Page 23