Global New Product Commercialization Product Lifecycle Management Implementing Successful Transformational Change

1
Global New Product CommercializationProduct
Lifecycle Management Implementing Successful
Transformational Change
David G. SherburneDirector Global RD
Effectiveness And Engineering IT Director (and
PLM simple license model advocate)
2
Topic Outline- The PLM Journey

• Snapshot of Carestream Health Inc.
• Globalization The forcing function
• Insights for setting up a successful
  transformation
• Case Study

• Take- A Ways
• When to consider an upgrade to a PLM system
• Considerations when forming a PLM Project and
  choosing partners
• Benchmark data for estimation purposes
• Another PLM friend for your network

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

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.

5
Who We Are
A global company with Manufacturing and RD
locations around the world
Rochester, New York
London, United Kingdom
Woodbridge, Connecticut
Oakdale, Minnesota
Berlin, Germany
White City, Oregon
Shanghai, China
Yokneam, Israel
Baltimore, Maryland

Windsor, Colorado
Atlanta, Georgia
Xiamen, China
Raanana, Israel
Guadalajara, Mexico
Paris, France
Toulouse, France
Manufacturing
RD
Both Manufacturing and RD
6
The Business 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
  
• Hurdles to effective globalization
• Legacy systems were outdated and not
  easilyscalable
• Lack of adequate IT investment resulted in
  proliferation of non-integrated point solutions
• Collaboration became more difficult via e-mail,
  uncontrolled data sharing with partners
• IT Infrastructure and networks were performing
  poorly in some parts of the world
• Complexity in the organization increased as
  projects globalized
• Knowledge-workers time was being drained,
  impacting innovation
• Productivity of NPD remained roughly flat

7
Non- Standard Commercialization Process
Innovative people innovate many local processes.
If work flows between sites then the gaps between
blocks represent inefficient manual sharing of
information.
Works alright if sites are focused on product
families and are co-located.
8
Point Solutions lacked proper architecture to
enable global productivity
Enterprise
PDM
Authoring
Confluence
MCAD Tools
MQDS
Part Data
No Integration
Teamcenter
Excel
NX
SAP
No Integration
CAD Files PDFs
MS Project
Pro/E
BOM
Lotus Notes DB
No Integration
SolidWorks
Team Room
Intralinks
Sys 9K
EQDS
CAPA
CAPA
CAPA
RoHS, DoC, MSDS (no home)
AutoCAD
Electrical Part Data, RoHS
SOP
No Integration
File Shares
DA
ECAD Tools
MMR
Mentor DX
CIDx
External Systems
Lotus Domino
EE File Shares,library cache
No Integration
No Integration
Cadence
Standalone Systems
DocManager
OrCAD
ClearQuest
CAD Files PDFs
CQuest
Altium
Problem was caused by an IT Cost Center
mentality and non- coordinated local efforts
Version Control Tools
Information Flow
Defects
No Integration
Software Authoring
Clearcase
Enhancement Requests
Subversion
PVCS
Manual Integration
Desktop Tools (Browser, MSOffice, etc)
StarTeam
Automated Integration
Quality Center
DOORS Requirements Management Tools
9
Demands on Workers are Ever Increasing

• Quality and Compliance must be maintained in our
  business
• Project teams are being split across several
  locations
• Platform development added complexity in software
  and hardware
• Iterative methods required faster information
  transfer
• Daily/Weekly software build cycles are an
  expectation
• Faster cycles are required for prototyping
  hardware
• Design for manufacturability and IP capture is
  key as ties to supplier base become weaker
• Teams must leverage historical data to improve
  planning, compare reliability, and drive
  improvements to the development cycles
• Engineers are required to do deeper analysis to
  ensure product quality while coordinating many
  sources of information
• Requests for metrics are ever increasing and are
  difficult to produce
• Disjointed IT and Non-Standard process
  environment kills collaboration

10
Global Standard Commercialization Process (future)
PLM Initiative processes cut across many
functional areas sites
Eliminates barriers to internal sharing of
resources
Improves enterprise collaboration effectiveness
Enables Metrics and Reporting
Reduces organizational complexity
Sets up foundation for continuous improvements
Knowledge workers can focus on innovation
11
Holistic PLM Approach- Its not just a simple
arrow anymore
Today PLM must improve organizational performance
1990s PLM was technology driven, supporting local
needs
People Change Management Communications
Global Leadership Vision Strategy Awareness Lead
ing multi-Cultural Change
Process Closed Loop Standard Inclusive End to
end integrated
Technology Global Applications Architecture Infras
tructure Master Data

• People were Co-located and Focused

Global and Distributed Environment
12
What Our future Success Required

• A Leadership Organization stepping up to create
  awareness, develop strategy, provide governance,
  and drive change
• Solid partner selection process and deep
  understanding of the business needs that would
  provide a ROI
• Architectural awareness and maturity- Process,
  Data, and Tools
• Structure to set the stage for communicating the
  transformation

13
Leadership Governance
CIO Office
CTO Office

• Alignment with IT
• Ensured scalability
• Architectural focus and alignment
• Improved on-going services
• Leveraged strengths of both groups

• Alignment with RD and Manufacturing
• Allowed focus on business knowledge and needs
• Focused time to support initiative
• Home for continuous improvement

Director RD Effectiveness David Sherburne

• Vertical Business Structure
• Stakeholders
• Subject Matter Experts
• Middle Managers
• Finance

14
Approach to Partner Selection

• Examined our business objectives and the
  capabilities we were lacking
• Examined market options for both the application
  platform and implementation services
• Started evaluation process early to learn
  partners depth and long-term approach
• Emphasized building relationships fully
  disclosing our approach and stages of elimination
• Contracted the leading implementation partner to
  help make the final application selection
• Used a rigorous evaluation process against the
  high-level functional AND businesses requirements
  

15
Partner Selection Model Give Yourself Time

• Look for a strategic relationship
• Share in risk
• Offer flexible terms in line with business ROI
• Remain a partner during implementation
• Keep costs in line with benefits

• Business Objectives

ID Capabilities Missing
Write Key Use Cases
ROI of New Capabilities
Business Requirements
Strategies to Obtain Capabilities
Final Selection of Partners
Request for Information
Request for Quote
Time 9 months 1½ FTEs
16
License Models Proposed

• Many License Models
• Discourage access to data
• Are costly to pilot functionality
• Front load cost and risk
• Complex and difficult to predict total capital
  costs
• Place crazy price tags on document management and
  simple workflow
• Tanked the ROI
• Cause crazy behaviors
• Are the gifts that keep on giving

• Models Proposed
• Named User
• Module Based
• Business User or Engineering User
• Geographic Location Based
• Enterprise Based on Revenue
• Subscription Based on Total Users ?
• Open Source
• No Concurrent User Models Offered

Right People Right Information Right System
Right Time
17
Partner Selection Process Give Yourself Time
2009
2010
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
High-Level Requirements Development RFP Issued
and Refined RFP Review First-Cut Decision ROI
Analysis Application Supplier Capability
Analysis Second-Cut Decision RFQ Issued
RFQ
Analysis Supplier Selection Project Start
Made short list
Request for Proposal (RFP) issued to five (5)
application suppliers and three (3) independent
implementers

• Current Relationship
• Uniqueness in Industry
• Quadrant
• PDM History
• Current Assets

Application suppliers reduced to three
(3) Independent implementers reduced to two (2)
Paid leading independent implementer to aid ROI
and application evaluations
Application supplier selected
Application suppliers reduced to two
(2) Independent implementer reduced to one
(1) Request for Quote (RFQ) issued
Implementerselected
18
Partner Selection Process Benefits

• Allowed us to refine the requested information
  and expectations over a period of three cycles
  with suppliers
• Drove understanding, maturity of estimates, and
  costs through the first two cycles giving
  credibility to the project with senior managers
• Eliminated suppliers fairly and in stages and
  maximized the understanding, along the way, of
  the finalists
• Determined that third-party implementers offered
  a broader view of options available and were our
  best consultants
• Candidates left in the last cycle deeply
  understood our functional requirements, business
  drivers, and expectations
• Process obtained the best balance of
  functionality, risk, and cost to our company

19
Key Elements of an Enterprise Transformation
Initiative

• Complete view of New Product Development
  building blocks
• Appreciation of the complexity in the
  Architecture Layers
• Business Process Focus and Balance
• Application Architectural orientation and
  familiarity with industry technology
• Training developed in the context of standard
  process
• Complete teams designed and supported for success

20
Complete View Understanding the Building Blocks
Portfolio Dashboards, Metrics, Web Channels
ideas
Service Delivery, Pubs,Training
PLM Product Life Cycle Management Platform
SUPPORTABLE PRODUCTS
Manufacture and Sustain
Quality Data Management
Product Planning Definition
PDM Data Management for Hardware
ALM Data Management for Software
Project Management - PCP
ideas
Portfolio Management
ideas
ideas
Hardware Design Authoring CAD-ME,EE
Software Design Authoring IDE
ideas
Integration of Applications and Master Data
Strategy
Core
BOLD Industry Term
21
Appreciated the Complexity in Each Architectural
Block
Presentation Layer Web Channels internal and
external Social, Dashboards, Business
Intelligence
Increasing Architectural Maturity
Business Process Maturity IT Maturity
Business Process Layer Standard Workflow and
Responsibilities (Engineering Change Control,
Production Release Process, Supplier Quote
Process, Defect Management Process)

• Application Layer
• Aras Innovator, Teamcenter, Doors, Clearquest,
  and Clearcase

Data Layer System of Record for Master Data,
Attributes, Field Mapping to Metrics, Clean-Up
IT Infrastructure Layer Networks, Servers,
Databases, Storage, Back-Up, Archive
Increase Organizational Maturity Architectural
Awareness Success
22
Business Process Focus Low-Level Architecture ?
Swim Lanes
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 are organization
independent Focuses training development on
process not button clicks Focuses test plans for
validation on key workflow performance
23
Understand Process Balance Increase Productivity
Manage for fast idea cycles
Manage for repeatability and consistency
Structure
Research and Development
Manufacturing and Regulatory
Carefully Architected Business Process
24
Architectural Orientation and Strategic Planning
Ability
Enterprise Systems
Knowledge Sharing, Social Nets, and Webchannel
PDM
Desktop

• PLM Aras Innovator
• Closed Loop Engineering Change Management (HW/SW)
• Event Tracking and Defect Mgmt
• CAPA Management
• Audit Management
• Supplier Access/ DFM Input
• Supplier Quote
• ECAD, MCAD PDM Integrations
• EBOM, MBOM Management
• Costing
• Commercial Parts Library
• RoHAS
• Requirements Change Control
• ISDE Integration for SW events

Office, Project
HW
Webchannel/ Social Development
Dashboards Metrics
MCAD Tools
PDM Upgrade
Supplier 1
KM Platform
LN DBs
Supplier 2
Supplier 3
RQMTS
Manufacturing Transfer
New Modeling
New Platform
Raw Material Master
SAP
Authoring Systems
ECAD Tools
Purchase Portals ECoutlook Smart source-Ebid
ECAD 1
Integrated As Built Master Data
Testing
ECAD 2
Quality Platform (HPQC)
Established Standard
ECAD 3
Emerging Standard
Integrated SW Development Environment- SW
Environment)
SW Authoring
SW Project Management, Dashboards (Rally)
ISDE Core
2012 Proposal
Build Tools and Services Test Scripting Build
Configuration Management
MS Visual Studio
Some Integration
SW CM SVN
No Standard
XCODE, Other Key IDEs
End of Life
25
Process-Based Training

• Technology and process are complex skimping on
  training leads to inefficiency and slow adoption
• Training helps change the culture
• Train in the context of standard business process
  not technology button clicks
• Carefully identify the roles that require
  training and target information
• Evaluate self-paced training,its the hardest to
  deliver, but its most flexible for users

26
Complete Teams Successful PLM Results
Trained in Leading Change
Iterative Project Management
Technology Partners Application Architecture
Business Process and Metrics Development
Careful Communications
Strategic Vision
IT Architecture, Master Data Cleaning and
Migration
Coding and Configuration Skills for
implementation
All skills are critical and equal for success
27
Carestream Case Study

• Final Selection of Partners
• Open Source and Aras Innovator Platform
• Scope and Scale of Phase One
• Benchmark with Industry Expert
• Findings Summary

28
Final Partner Selection and Solution

• Aras Innovator Determined to be our best choice
  for the application.
• Tight partnership right sized for Carestream
• Scalable subscription-based business model that
  did not penalize ubiquitous access
• Provided cost predictability by eliminating
  complex license schemes that depend on deployment
  sequence of modules and location of the user base
• Unique application that provided the flexibility
  and scalability needed for our business
• Ability to trade ideas with the Aras Community
• Wipro Technologies Determined to be our best
  implementer choice.
• Tight partnership while working through
  technology options and implementation models
• Deep knowledge of many tools used across our
  business and how to integrate them
• Good neutral consultant for evaluation and
  discussion
• Agile approach to development, allowing us to
  have flexibility as we deploy

29
Aras Innovator Attitude Advantages

• Cost model allowed global scale thats not tied
  to modules, geographic locations, or named users
  key to ubiquitous internal and external access
• Flexible architecture enabled rapid development
  50 easier than other platforms to configure
• Upgrades Guaranteed
• Open access to ALL data elements
• Good Technical Partnership Anti-virus
  performance, e-Signature Help, Visualization
  strategy
• Some risk (early adopter) but balanced with
  higher value
• Community development concept, which we are
  beginning to leverage
• Single company provides the Aras Core its not
  traditional Open Source

30
Case Study Goal, Phase 1 Implement a Global PLM
that delivers
Global Standard Business Processes Defect
Management Overall Engineering Change-Mgmt-Closed
Loop Engineering Change Request (ECR) Engineering
Change Notice (ECN) Deviation Authorization Engin
eering Change Implementation (ECI, MBOM) Design
Parts Release MBOM/EBOM Mgmt
Package Parts Mgmt. Commercial Parts Mgmt. CAPA
Mgmt. Audit Mgmt Supplier Collaboration Product/Te
am Mgmt. Feature Function Request Mgmt.
Dropped from Phase 1
Across 4 Major Sites Rochester (DCS,
HCIS) Oakdale (DO) Woodbridge (CMI) Shanghai
(DCS, DO, CMI, Rayco) 11 additional Global
Sites for CAPA AMS
Uniting Many Point Solutions Closed loop
Engineering Change (One Example) Defects
ClearQuest (1300 users) ECR Spreadsheet,
Manual ECN EQDS Retired (450 users) ECI
Spreadsheet Manual, SAP Integrated

Requiring Involvement of 75 Subject Matter
Experts
PLI Provides the Foundation for Future Process
Standardization
31
Baseline Comparisons

• Key Points
• User Core engineering process worker that
  contributes to Part Creations, BOM management,
  Engineering Change
• Solutions for medical device companies take
  longer that average to implement, as more effort
  is required to meet regulatory requirements for
  Part 11 verification and validation.
• Most PLM solutions typically require
  configuration/customization, as the OOB solutions
  do not fully meet the business needs
• Aras architecture is impressive, flexible and
  modular, which is more cost effective and
  scalable, but will take more effort to implement

Industry Expert (Typical PLM) Carestream PLI- ARAS
Schedule (Implement Deploy) 18-24 months 19 months deliver features 24 months stabilized deploy
Implementation Cost 4000/user 3300/user
Maintenance Cost 360/user 300gt165gt75
Functionality for a Phase 1 Engineering Change Configuration/Revision Control BOM Management Supplier Collaboration Product/Portfolio Management Closed-Loop Engineering Change Configuration/Revision Control BOM Management Deviation Authorization Product Defect Management Audit Management SAP Integration
of Sites for Deployment 3 4 Development Sites
Internal Resources to coordinate (in addition to implementation) 5.5 FTE 5.5 FTE
Subject Matter Involvement 60 75
When suppliers access the system gt75/user
32
Strategic Take Away

• Globalization of work without Standardization of
  applications and processes will lead to reduced
  innovation time and productivity in New Product
  Development
• Cost center IT mentality delivers local
  proliferation of point solutions with little
  enterprise architecture
• PLM Implementations require a holistic approach
  that includes
• Global Leadership Leadership Organization
• People and Change Management
• Standard Processes Development
• Standard Applications and Technology

33
Practical Take Away

• Carefully craft a balanced team, technical
  development skills, leadership awareness, project
  management, process development, and
  communications skills
• Set project governance, know key decisions and
  set decision rights formally
• Know your critical mass (how much work your team
  can handle) and match that carefully with
  implementation partners speed and capacity
• Ensure business-process work leads and functional
  requirements follow
• Take work in small chunks (AGILE development
  methods work well here)
• Turn user interface prototypes early, fast, and
  review the implementation approach
• Work process in parallel with master data
  modeling and data migration
• Train in context of the business process not in
  the context of the tool
• Get involvement of SMEs early and often. Cover
  all disciplines and phases of the lifecycle
• Balance cowboy innovation with regulatory and
  manufacturing structure
• Prioritize architecture and code reviews
• Verify and validate functionality using
  business-process diagrams as the basis

34
Willing to talk more about PLM?

• PLM is a complex journey that requires discussion
• Strategic Approach
• Architectures
• Benchmarking
• Implementation
• Process

35
Contact Information

• David G. Sherburne Director of Global RD
  Effectiveness
• Linked in
• http//www.linkedin.com/in/davidsherburne
• Email
• me_at_davidgsherburne.com
• david.g.sherburne_at_carestream.com
• Twitter
• _at_dgsherburne