PLM_for_New_Normal_KK_Pres_May15

Siemens PLM Connection 2015
Dallas, TX
May 18-21
www.siemensplmconnection.org
#PLMCONX
PLM for New Normal by
Krish Krishnamurthy
Session Number 15279
Business Process Improvement, Organizational Change Mgmt. Track
21st May 2015 – 3:45 PM - Conference Room: Dallas A3

Unrestricted © Siemens AG 2015
2015_AprPage 2 Siemens PLM Software
1. What is New Normal?
• Experiences if any?

#PLMCONX | www.siemensplmconnection.org
Smart Innovations transforming business landscape

Agenda
Definition
Industry Experiences
Solution Approach
Takeaways

Transformational technologies + Integrated Value Chain = maximum results
Company-wide challenges require Holistic Solutions
12 3 54
Product design
Production planning
Production engineering
Production execution ServicesBusiness
Processes
Others
IOT, Cloud
& other
Technologies
Mfg. Technologies
3D Printing,
Robotics, ..
Knowledge
Automation

Example Factors
Economy
• (ultra) Low Interest rates
• Tighter bank lending policies
• On-Shoring
• 90 day results focus
Raw Materials
• Price of Energy sources
• Rare earth supplies
• US Starts exporting oil
Technology
• Mobility
• Big Data
• IOT
• 3D Printing
Society
• Crowd sourcing
• Social Media
• Mindfulness
• Home office work
Applied Technologies
• Drone Applications
• Greening of everything
• Reuse of Rocket Boosters
• New materials – Composites,
Recyclables
• Industry 4.0
Environment / Nature
• Global warming
• Changing weather patterns –
• draught, floods, hurricanes,
• Quakes, Tsunamis, ..
Government
• No Federal budget for 3 years
• Grid Locked Washington
• Fluctuating Global Economies
Long Product Development Cycle
• 2 to 4 Year development cycle are
over
• Minimum viable product
• Hackathon

Response Approaches
• Treat this situation as any other event (do the same thing as before)
• React feverishly
• Be prepared, execute the plan and leapfrog

Doing the same thing
Source: MAPI

Company Cycle Monitoring
Source: MAPI

The New Normal
World-wide Managing Partner McKinsey Quarterly

Solution Approaches
Business
1. Know your customer
• Business, Products, their customers, their key variables…create a look
for constant expectation check in, their measures for success, their
pain points
2. Look at newer solutions
• Selling products vs. offer Hours of Operation at SLA (Service Level),
Turnkey solution (Assess needs, build/support/maintain necessary
solutions)
3. Set all metrics based on TCO pricing/metrics (Internal and external) have
meaningful metrics that take both external and internal voice into
consideration
4. Identify Mega trends & their Interactions
Example

Solution approaches continued ….
Organizational
1. Leverage Changing environment vs. Adapt / surviving the change
• Build flexibility to organize/re-organize rapidly
• Reward systems structure
o Set personnel expectation - that they are self starting and constantly
building a diverse skill set
o Encourage managed risk
2. Extend the eco system – partners for Technologies, deployment, …
3. Laser focus on competencies and business objectives
• don't forget your customer view of you
Technical
1. Digitalization of the process
2. Adapt evolving value-add technologies quickly - mobility, big data, IOT, .....
3. Learn from the bottom of the pyramid (developing countries experiences)
emulate 'best practices, “don't blindly plug and play”.
OrgnExample
DigtlznExample

2015_MayPage 13 Siemens PLM Software
Energy Summary
• Business
o Connecting, understanding, integrating & Digitalization of the Supply chain
o Delivering “Functions” demanded by the end user vs. the
product/subsystem
o Establishing metrics – Internal and external leveraging the digitalized flow
• Organizational
o Connected / Digitalized operational environment
o Protecting the IP …
• Technical
o Incorporate evolving technologies into product
o Leverage new applications
 Ex: Big Data, Mobility, Analytics to predict/address evolving situations

Readiness Assessment/Audit
1. Describe your Top 3 (potential) business Disruptions
2. Explain how your organization will react to each of them?
3. Describe the ideal response to each of the disruption?
4. What is preventing you from implementing them?
5. How would you quantify the impact of the new environment
6. When was the last Organizational readiness audit performed?
7. How do you integrate your acquisitions…

Where does your company stand in achieving the Next Level
Are you ready for the New Normal
Source: P Bachman, SPLM
New normal readiness scorecard

Maturity Level Characteristics

Questions?
A&DExample

Thank You!
Don’t Forget!
Fill out session Survey via the PLM World Mobile Event
App.
>Go to the session in the App
>Click Take Survey at the bottom

Innovations have led to the exploitation of new and more recoverable reservoirs
Mega-trends in oil & gas industry
Only 60 Years
Known Supply
100+ Years
Supply and
Growing
Implications
Supply outpaced demand
Significant downward price
pressure
US onshore market the
industry’s new ‘swing’
producer
Easy oil era has ended
Companies evaluating their
asset and technology
portfolio; M&A ramping up
2000 2015

The global Energy System
Mtoe = Million tonnes of oil equivalent
Source: IEA World Energy Outlook Inputs 12.5 Btoe
Useful: 8.7 Btoe
Efficiency: 69%

Example
1. Equipment efficiencies improvement program
• Monitoring & gathering equipment performance data
• Extracting “appropriate data” & taking actions
2. “Rotation/Compression Power” by the hour?
• “On-site” Power as a service (Equipment, Maintenance, Support, ..)
• Service level agreement (SLA) based
3. Drill bit repair/Replacement
• Monitoring of tool performance and status
• Remote/On-Site repair services
• Use of Remote machining/3D Printing techniques
Return

Organizational Changes – Evolution over time
Tech.
Provider
Regulatory
Agencies
Customer
Company
Supplier
R&D
Functional
teams
Business
IPT
• Pgm Mgmt.
• Mech. Eng.
• Elect. Eng.
• Software
• Procurement
Prod Dev
Pgm
Mgmt.
Mech.
Eng
Elec.
Eng
Procur
ement
Return

PUMA Project
(Pressure Ulcer Measurement & Animation)
• Solution for Pressure Ulcers (Bedsores)
• Sensors based detection, phone controlled
• Impact: Over 15Billion Euros ($18B+)
• Partners
• QIMOVA – Holland – Coordinator
• BerkelBile – Netherland
• SensigTex – Spain
• Institute for Innovation Research – Estonia
• CENTEXBELL - Belgian Centre for Research Textile
• Natl. Paraplegics Hospital – Spain – Patients
• Fundosa Accessibility ILUNION
Source: Puma.ibv.org

Mechanical Measurements
• Techniques for desired
measurements
Source: Smart Sensors by Randy Franks & Machine Design
Return

Key capital project trends over the last 15 year
Projects have regularly exceed budgets and deadlines Implications
Completion costs 59%
higher than initial estimates
(incremental US$500b)
Loss of shareholder
confidence and an
increase in cost of capital
Projects’ net asset values
(NAVs) reduced between
12% and 65%
Loss of revenue due to
missed production dates
Source: EY research and analysis
2000 2015+28%
50%  Upstream  78%

Total Installed cost
Equipment vs Procurement

Lowering Total Cost of Ownership with Product Lifecycle Management
PLM as a IT Strategic Platform in the Energy & Utilities Industry
Owners & Operators
How do I operate, evaluate and
modernize my assets to leverage
them beyond their designed life?
Construction & Maintenance
How do I handle the increase in
product complexity and regulatory
standards?
Equipment & Services
How do I make products and
services more efficient and
reliable?
Engineering &
Manufacturing
(CAD, CAE, CAM, Eng Process
Mgmt, Digital Mfg)
Project Execution
(Enterprise Data Mgmt, Plant
Visualization, Change & Config
Mgmt, Scheduling, Risk Mgmt,
Workflow, Mobility)
Operations &
Maintenance
(Data & Doc Mgmt, Workflow,
Service Planning & Execution)
Product
Lifecycle
Management

Energy Project Lifecycle
And where we should be going to market 2014/2015
Engineer
Procure
Construct
Owner
Operator
Equipment
Manufacturer
/ Supplier
Owner
Operator
Design
Simulate
Manufacture
Service
Plant Design
Award
FEED
Permitting
Bidding
Decom-
mission
Construct
Commission
Operate
Maintain
Engineer
Procure
Construct
* Teamcenter components for equipment suppliers, including: MRO,
Polarion, ElectricCloud
*
Change Management
Asset Configuration PLM Open
Collaboration
PLM Enterprise Data Management
for Capital Project Management
DEAP/PDI

The Digitalization Challenge
Manage, Find, Share
Data Managed as a Unit
Tag/Part Number
CAD Model /
BOM
Customer
Specification
Vendor
Data
Datasheet
Analysis
Drawing
Construction
Plan
Return

A&D
• Minimize Bells and whistles
• TCO
• Lean
• Suppliers
• Stay or get_out
• Partner/collaborate
• ….
30th March 2015

Factors impacting business
Airplane
Airline
• Traffic/Demographics
• Total cost of ownership - ($/Passenger Mile)
• Price of Fuel, Operating efficiency
Airframe Mfr.
• Product Development costs
• Prod./Performance improvement Pgm.
• New Technologies, New tools
Subsystem supplier
• Performance targets
• Cost targets
• Incorporate New Technologies & Digitalization
Regulatory Agencies
• Certification/Compliance costs
Space
Space Agency
• Budget decisions
• Total cost of ownership
• Cost of operation ($/Pound Launched)
Spaceship Builder
• Overall ship Development cost
• Improvement/Innovation Programs
Supplier
• Performance targets
• Cost targets
• Digitalization
Return

PLM_for_New_Normal_KK_Pres_May15

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