Zero Wait-State has been involved in data management and product lifecycle management(PLM) applications since their advent. We have worked with clients like Cisco, Harris, John Deere, Dell, Raytheon and many other to resolve challenging data management and product lifecycle issues. Zero Wait-State has worked with a number of solutions in the PLM space and have developed criteria to determine good matches for our clients needs. We will attempt to distill some of this knowledge into general rules of thumb when it comes to identifying and implementing a PLM solution.

1. Plan for the future- PLM solutions become a integral part of a company’s infrastructure. It is not a trivial task to move to another PLM once you have determined you have outgrown a PLM application. Try to think out three years minimum and envision your company’s size and business requirements from this perspective. Features and modules that seem unnecessary today can become critical requirements in the future and render a PLM application obsolete. Specifically, make sure you have the capability to manage all types of data including computer aided design (CAD) files, you have the ability to connect with external applications like client relationship management (CRM) and enterprise resource planning (ERP) solutions. It is also critical that the PLM solution be able to provide seamless and secure connectivity to external sites. Avoid pared down applications specifically for small companies. These applications are usually loss leaders designed to pull companies in and then offer minimal functionality with expensive upgrade paths. The investment that vendors put into these solutions usually pale in comparison to their flagship products and the division of research and development dollars can dilute the quality and sophistication of the company’s products.
2. Identify solutions that can be implemented in stages. PLM applications can address a broad spectrum of functionality and it can be overwhelming to try and address it all at once. Identify critical issues in your company’s product development process and prioritize based on the impact of the issue and how quickly it can be addressed with the PLM solution. PLM applications that are modular are much easier to implement in this manner. Some offer modules like program management that can stand alone and be implemented separately or in parallel with core applications. The key is to be realistic and avoid prolonged implementation times. These can be prohibitively expensive and the longer an implementation project takes the more likely it will fail. As a general rule of thumb six week increments are ideal particularly for smaller companies.
3. Beware of customization- While most PLM applications can be tailored to a company’s specific business requirements there is a difference between configuration and customization. Some vendors will try and address functionality shortcomings by indicating the application can be customized to address certain key functionality requirements. Sometimes this is unavoidable because of complex business issues but it should be the exception not the norm. A customized application will be difficult to support particularly when new versions are released. Some applications offer automation capabilities that can be leveraged by companies themselves and do not create too much additional overhead. The key is to avoid customization that would make you overly dependent upon a vendor.
4. Usability is critical- PLM solutions at first blush have a tendency to look very similar. Most PLM applications use a Web client that ties into some sort of backend database. Given that browser functionality provides a consistent look and feel it can be difficult to discern subtle differences between applications. Ideally, having users with firsthand experience is the best way to identify the capabilities and ease of use of a PLM application but if this is not the case spending significant time on the interface is critical. It is not unreasonable to have the vendor leverage company supplied information to closely mimic how the application would function in your company’s environment so that you can closely follow how the application flows. Difficult to use or limited PLM solutions can limit adoption and impair productivity so this is a key element in making a good decision about a PLM application. One other key tip is to engage all levels of users in the assessment. Typically, high level IT or Engineering resources are involved in the decision making process and their familiarity with sophisticated software applications can skew the evaluation of “ease of use”.
5. Demand references- The best measure of determining how capable a PLM solution is looking at comparable companies and the results they are achieving. Vendors have a tendency to oversimplify certain aspects of utilizing and implementing PLM. Real world examples can help you better understand what is really in store. If a company is ready to stand up and recommend a solution and spend time with you to help you better understand the application it speaks volumes about the quality of the product and the relationship that the company has with the vendor. It is can also be very informative and useful. Learning from someone else’s mistakes is always the best approach. The key tip in checking references is to prepare for the interview. If you allow the reference or the vendor to control the meeting they can gloss over key issues so it is critical to make sure your specific concerns are written down and presented prior to the meeting so the vendor can find the appropriate reference and you can benefit as much as possible from the meeting.
6. Measure everything- The true value of PLM is the impact it has on process. It is difficult to quantify this impact unless you have a good understanding of your current process and the time and effort it takes to complete tasks. Before you embark on purchasing a PLM you should engage with internal or external resources to document your current product development process and identify bottlenecks and areas that are hindering your company’s ability to deliver quality products to market at expected margins. A successful PLM implementation should allow a company to increase the number of products they deliver, minimize the amount of late stage change, allow for design for manufacturability and cost while improving quality. If you do not have a baseline established it will be impossible to determine if any improvements are being made. Management will be skeptical about investing further in a solution that does not provide tangible value. Once you have established baselines and priorities you should require that your vendor build in metrics gathering into the implementation process. It will benefit both parties. By attaining promised return on investment the vendor will be able to validate their solution with you and other companies in the future and you will be able to justify further investments in process improvement. It will also allow you to ensure the application is properly implemented and addressing the issues you have determined are most critical for your company’s success.
7. Don’t procrastinate- There is a temptation when a company is small or finances are tight to put off a infrastructure improvement like PLM. Companies find ways to get by with various manual and semi-automated solutions to develop and manufacture products. The “best in class” companies in any industry do not take this approach. They leverage any and all means to become as productive and efficient as they can. PLM is a crucial building block to any product development company’s foundation. PLM takes the guess work out of product development and facilitates communication throughout an organization. Getting by with manual processes or point solutions just ensures that you are spending more time and money developing your product than your competitors and puts you at a serious disadvantage. Additionally the longer you wait to put a PLM solution in place the more complicated it becomes. You generate legacy information that has to be populated into the system and create process that may not lend itself to being incorporated into a PLM. It may be challenging or seem expensive but most studies by industry research groups validate the impact PLM has for most companies if done correctly.

Thanks for reading Zero Wait-State’s tips on selecting and implementing PLM. If you have any thoughts or questions please feel free to comment.

[Edit: Repost from 2009]

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