The Potential Impact of Cloud-based PLM on Small Supplier Quality Processes

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The Potential

Impact of

Cloud-based

PLM on Small

Supplier Quality

Processes

John Loo

VMH International, LLC

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Global Product Data Interoperability Summit | 2013

Our Perspective

• VMHI is a CAD/CAM/PLM software VAR, focused on

SMB

• This presentation is based on the potential and interest

we see in working with our aerospace and automotive

supplier clients

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Global Product Data Interoperability Summit | 2013

Importance of Small Suppliers

• Faster response, less overhead, more flexibility on

pricing

• Often challenged by capital/cash flow constraints,

capacity constraints, infrastructure challenges

• By some estimates, represent a large area for potential

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Global Product Data Interoperability Summit | 2013

How to Control Affordability?

• Quality is one key aspect of controlling affordability

• A simple definition of “Quality”:

“Consistently meeting or exceeding

requirements”

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Global Product Data Interoperability Summit | 2013

Some Outsourcing Challenges that Can Affect Quality

Requirements

Challenge

Product

Features

Product

Perform-ance

Cost

Delivery

Schedule

Mfg.

Capacity

Mfg. Yield

Clear

communications

Process controls

Finding information

Reuse

Leveraging

technology

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Global Product Data Interoperability Summit | 2013

The Role of Product Lifecycle Management Software

• Properly done, PLM can address many of these

challenges

• While common in large companies, much less so in

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Global Product Data Interoperability Summit | 2013

Barriers to PLM Adoption

• Implementation costs

• Cultural / organizational issues

• Managing the implementation process

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Global Product Data Interoperability Summit | 2013

How can Cloud Computing Help PLM adoption?

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Global Product Data Interoperability Summit | 2013

Cloud Concepts – Service Delivery Models

• IAAS – Infrastructure As A Service

• Virtual Machine / Network

• PAAS – Platform As A Service

• IAAS + Platform Services

• SAAS – Software As A Service

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Global Product Data Interoperability Summit | 2013

Cloud Concepts – Deployment Models

• Public Cloud

• Private Cloud

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Global Product Data Interoperability Summit | 2013

What is “Cloud-based PLM”?

• PLM software running in a cloud environment

• May be IAAS, PAAS, SAAS

• Of particular interest to small suppliers - Public Cloud

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Global Product Data Interoperability Summit | 2013

Examples of Cloud-based PLM Products

Vendor / Product

IAAS

PAAS

SAAS

Aras Spectrum

Arena Solutions

Autodesk PLM 360

Dassault 3D Enovia

PTC Windchill

Siemens Teamcenter

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Global Product Data Interoperability Summit | 2013

What Does Cloud-based PLM Offer Small Suppliers?

• Lowers infrastructure implementation costs

• Expense not capital

• Minimal impact on existing Data Center (if there is one)

• Ease of setup

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Global Product Data Interoperability Summit | 2013

What Does Cloud-based PLM Offer Small Suppliers?

• Operational Cost Management

• Pay for what you use, when you use it

• Costs tracked at a granular level

• Staffing and facility cost relief

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Global Product Data Interoperability Summit | 2013

Typical PLM Feature/Functionality

• Collaboration tools

• Organization of information & advanced search

• Version control

• Process management and workflows

• Integration with other applications (CAD/CAM/CAE,

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Global Product Data Interoperability Summit | 2013

Cloud Concerns - Security

• ISO 27001, ITAR, FISMA compliance

• SSAE 16 Audits

• IAAS and PAAS require more from the customer

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Global Product Data Interoperability Summit | 2013

Cloud Concerns - Performance

• Bandwidth is better than ever, but is it enough?

• Application architecture and evolving network

technologies have had a tremendous impact

• Most document file types can be easily accommodated

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Global Product Data Interoperability Summit | 2013

Cloud Concerns - Reliability, Availability, Service

• IAAS cloud providers have Service Level Agreements

in place (99.95 – 99.999% availability)

• PAAS and SAAS RAS/SLAs should to also be

considered

• Internet service bottlenecks, hack attacks are not

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Global Product Data Interoperability Summit | 2013

Understanding Costs

• Depending on vendor and type of delivery model,

could be fixed or variable

• Flat monthly fees - more typical of SAAS

• Size-, Service, and Activity-based – more typical of

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Global Product Data Interoperability Summit | 2013

VMHI as an Example

Teamcenter

Intuit

eBility

Desktop Firewall Laptop Proxy Server Customer Pilot License Server Tablet CAD Workstation Tablet Directory Services Firewall Training Demo Server Firewall Firewall Backup License Server Desktop Firewall CAD Workstation Tablet Test

Salesforce

Office 365

Desktop CAD Workstation Tablet Directory Services

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Global Product Data Interoperability Summit | 2013

Basic Architecture

• Teamcenter 9.1, 10.1, and Teamcenter Rapidstart 10.1

• Running on Windows Server/SQL Server 2008 and

2012

• IAAS provided by “A Major Player”

• HTTP and HTTPS through direct connect and proxy

servers

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Global Product Data Interoperability Summit | 2013

Client platforms

• Browser-based and thick clients

• Integrations with:

• Siemens CAD (NX 8, 8.5; SolidEdge ST5)

• Teamcenter Visualization tools

• Microsoft Office

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Global Product Data Interoperability Summit | 2013

Applications

• Core Teamcenter:

• Part Management

• BOM Management

• Workflows

• Part Classifications

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Global Product Data Interoperability Summit | 2013

Results

• Reliability has been excellent

• VM performance is excellent

• Network performance has also been very good, all

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Global Product Data Interoperability Summit | 2013

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Global Product Data Interoperability Summit | 2013

What about Costs?

• Typical TC Server configuration

• 4 processors

• 8 GB RAM

• 375 GB disk

• “Always On”

• Averaging about $475/month for moderate-use server

• As low as $250/month for lightly-used small machine

• WARNING: YOUR MILEAGE MAY VARY! Price

schedules seem to change constantly, but fortunately,

usually downward

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Global Product Data Interoperability Summit | 2013

Concluding Thoughts

• Cloud computing provides small businesses the option

of implementing PLM at a reduced cost

• As vendors continue to become more comfortable with

pricing and operational models, expect more SAAS

offerings, and reduced pricing due to competition and

technology advances

• Cloud-based PLM is not a panacea. Successful PLM

implementations still require careful planning,

allocation of sufficient resources, and management

support!

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Global Product Data Interoperability Summit | 2013

Thanks!