Productive investment

But how can we get the most from such an investment and what are the potential rewards for getting it right? CXO brings together three leading experts in the field to find some answers.

With:
Amir Mobayen, Senior VP EMEA Operations, MSC Software
Chris Williams, CEO, Seemage
Ulrich Mahle, VP Worldwide Marketing and R&D, CoCreate

CXO. What factors are driving more companies to consider tools such as PLM?

CW. While CAD, ERP and PLM all attempt to address the same fundamental problem for enterprises seeking better product information, they do it with differing levels of required commitment – and therefore implementation pain – from companies implementing these solutions.

What’s clear, however, is that among the three, 3D CAD has achieved the most traction and is the most widely deployed. Today, the challenge is to unlock quickly, effectively and immediately the value of the intellectual property stored in 3D CAD models. In other words, what value can 3D product definition have beyond just the engineers who create it? PLM is an ambitious, but amorphous, technology objective – just try to get three standard definitions of what it actually is. But everyone can agree that 3D CAD models can be used throughout the enterprise, if only they could be securely and easily available in a standards-based way to users. Still, the challenge is to make that information available to people in ways that make sense to them throughout the organisation and beyond just the originators.

AM. Working worldwide within a wide spectrum of manufacturing industries, we see a variety of commercial and technology influences. However, the two common denominators driving lifecycle technology, and in particular our own markets for simulation and process management, are intensified competition and increased globalisation. Competitive pressure is continually driving faster product delivery, with higher quality and innovative content, but of course with lower production costs. The emergence of truly global 24/7 production adds an extra dimension, introducing new challenges in coordination and communication between remote locations, departments and suppliers.

UM. There are several issues involved. First, because product complexity increases constantly, engineers in every discipline need to work more intelligently than ever. Second, processes continue to grow in complexity, so much so according to recent studies, that companies’ ability to manage that complexity, in house and throughout the value chain, will determine their success. A third driving factor is the emerging markets. Manufacturers should maintain a local presence in any market in which they are a player; this means they must collaborate globally.

Ultimately, all businesses need to develop innovative products quickly in order to compete in today’s markets. Manufacturers do this by leveraging existing knowledge effectively, by making informed decisions, and by incorporating new insight in a digital 3D representation of the design. That kind of sophistication demands those PLM, CAD, and ERP tools.

CXO. What limitations currently exist in the way that organisations can share product-related information and concepts – how is this holding them back?

UM. The big problem is tool incompatibility, as everybody involved in the process might use a different CAD or data management solution, or collaboration software. Think of the nightmare those engineers encounter when they have to add something to a model created by a supplier or colleague who used a different CAD tool. Often, they end up modeling the item from scratch.

Another challenge arises in trying to communicate design challenges with remote team members. It’s easiest to wait for meetings to discuss, even if the project loses significant time and momentum.

Then there are data and process management challenges across the team, such as IP security, access rights to up-to-date data for suppliers and partners, and driving multi-team projects in a controlled rather than chaotic way.

CW. Put simply, every CAD vendor’s future is bound up in its proprietary file format. XML, of course, represents the antithesis of proprietary, and that’s why you see so many ‘variants’ of XML promoted by each vendor. Everyone wants to ‘extend’ XML in a way that protects the underlying file format. 3DXML is a specific example – promoted by Dassault Systems and heavily protected by licensing restrictions and therefore the antithesis of true XML.

Peter Lewis of XYPE, a UK-based consulting company works on the Airbus PLM deployment and maintenance and can attest to the value of XML. He said: “The open format XML provides, allows the seemingly disparate systems of today’s engineering organisations to be quickly and robustly integrated. This in turn frees the customer from the constraints of having to choose their most critical part of the design chain and compromise on others through the vendor protectionism to a position where they can now buy the best in class of every component and integrate them together as they choose, not as they are told.” But just as MP3 has become universal for digital audio, truly open XML schemas will inevitably define shared 3D CAD models. Today, vendors who encourage open XML data sharing are removing the limitations users face when trying to access product-related information.

AM. One limitation is scale. Software advances and high performance computing availability have led to dramatic cost reductions and a rapid expansion in the number and complexity of simulations performed. Today’s models are significantly larger, with more variants and include increasingly complex multi-disciplinary representations of physical processes.

Looking slightly wider, we see significant limitations in the storage, retrieval and, particularly, mobilisation of lifecycle information. Typically we see island environments comprising multiple but largely disconnected in-house or commercial tools. Many activities involve high degrees of reinvention, non-standard processes, difficulties in locating or sharing data, and without an overall cohesive insight into the inherent intellectual property.

At an enterprise scale the difficulties are magnified with offshore sites and suppliers becoming additional information silos. Performing simulation and managing the data and processes is no longer a trivial or manual task.

CXO. So how can organisations optimise on their investment and achieve greater collaboration?

CW. The most effective collaboration isn’t ‘forced’ by workflow or by software, but instead guided by people who have access to the information they need to do their jobs. Increasingly, that data is digital. ‘Heavy’ collaborative systems include large elements of workflow, in which much of the work to be done is pre-determined. With digital data, especially 3D design data, ‘lighter’ collaboration is more desirable. This means knowledge workers in sales, marketing, customer service and product support collaborate in ad hoc ways to achieve a constantly changing set of tasks. 3D design data is an integral part of this type of collaboration, and we believe that easy-to-use tools which deliver access to 3D design data in the knowledge workers’ contexts delivers rapid returns on investment.

AM. We refer to it as ‘shifting the product development paradigm’. For several years, MSC has pioneered the evolution from isolated point CAE solutions to fully integrated, enterprise-wide simulation environments. This is the basis of the SimEnterprise strategy, which we announced last year, and the foundation for four new simulation solutions, which interact with each other, sharing services, models and data. This enables connectivity between designers, analysts and other product development stakeholders, regardless of their particular function, expertise or location.

Our customers tell us optimising investment is equally about providing innovative functionality and scalability. The components of the SimEnterprise environment, for example, allow customers to easily scale from desktop and designer solutions to expert analysis and fully enterprise enabled configurations. The future is also important, as customers increasingly demand a close strategic supplier relationship, which protects their investment heritage and builds continued value over the long term. Evolutionary scalability – helping customers to move forwards along this path – is therefore a major consideration.

UM. It’s important to integrate existing tools, data vaults and workflow rather than requiring all involved to use one big PLM system. Forcing a ‘one-size fits all’ solution on teams that might reside all over the world will simply cripple flexibility and responsiveness.

Organisations should also look to invest in 3D CAD technology that can deal with imported foreign CAD formats and with late changes. This is where CoCreate’s dynamic modeling specialises compared to history-based systems. A big part of our business comes from solving these two challenges.

Lastly, I’d advise supporting your communications with online collaboration tools – ensuring they are extremely easy to deploy, across disciplines, tools and company boundaries.

CXO. Specifically, how can PLM improve an organisation’s relationship with its customer base, suppliers and partners?

UM. A functional PLM system effectively ties manufacturers to customers, suppliers or partners. It makes temporary project data available, adds good communication tools and offers flexible permissions for outsiders. This means you can ask customers to check prototypes to see if you’re adequately meeting expectations, while partners/suppliers can ensure their work is compatible. In short, PLM makes a project transparent to everybody involved, which leads to significantly less frustration and ensures effective results all the way around.

Speaking of frustration, I’d like to challenge some assumptions about PLM. Traditionally, we think of it as expensive, monolithic systems. If that were the case, it would be difficult to use PLM to unite external teams. Often, these groups have their own, well-proven processes to successfully deliver their services. Therefore, CoCreate aims for a loose-coupled system that doesn’t reinvent existing processes, but rather fills in gaps and makes sure those existing systems play well together.

CW. Anything that increases communications between and among a supply chain is a good thing. But because supply chains are constantly being set up, broken down and re-constituted, open standards are the only way collaboration can occur with any level of productivity. In that respect, we agree that PLM as a concept is an excellent idea.

However, when PLM is productised into a closed, proprietary file-format-based product, we believe the promise of PLM is lost. Instead, we expect lighter, end-user focused systems such as Seemage to deliver on the real promise of the PLM concept – enabling users to access design information when, where and how they need it. And they can do so without the cost or complexity of implementing heavy workflow or proprietary file formats.

AM. Applying lifecycle management enables companies to better create, manage and communicate their most critical intellectual property – the data and intelligence inherent in their organisations and products. While MSC has a unique focus on the management of process and data specific to the simulation environment, the principles are the same. SimManager provides a solution which enterprise enables each level of the MSC simulation offering. Think of this as a PLM environment specifically designed around the unique requirements of simulation – providing a managed, consistent and traceable simulation environment for the company, its suppliers, partners and customer. This technology is highly complementary to existing PLM environments. In fact an established PLM implementation is often a good indicator of a potentially fertile managed simulation environment.

Managing the data is just the start. The real benefits come from using technology such as simulation portals to capture and mobilise the process and knowledge itself. Automation of repetitive operations, authoring and sharing of best practices, and provision of audit trail pedigree are just some of the benefits which customers experience. As a fully web-enabled environment, the information can of course extend throughout the enterprise providing real-time connectivity between locations, suppliers and consumers, creating a globally collaborative ecosystem – removing the silos, connecting the islands.

CXO. Just how important is 3d modelling and design to manufacturers today and how have the capabilities of the software advanced in recent years?

UM. A 3D model is now the master document for the whole product lifecycle. These models form the basis for digital prototyping, documentation and communication to others, as well as for a full digital representation of parts and very large assemblies, which go on to become simulations and virtual prototypes.

In CAD capabilities, we’ve seen a progressive departure from traditional history-based modellers. Two distinct roads for CAD have emerged, so manufacturers have two real choices in how they approach CAD. We call our approach, where you manipulate the geometry directly, ‘dynamic modelling’. We’re a good choice for industries with short development cycles and multi-disciplinary engineering teams, such as high-tech electronics and machinery. Users can change a model dramatically without worrying about its origin, explore alternatives – a principle of lean product development – and can import models from other sources and further evolve them.

AM. 3D modelling, inclusive of form, fit and function, is extremely widespread today across a huge variety of manufacturing disciplines. Detailed models that simulate, verify and optimise every aspect of a new design are highly accessible, infinitely repeatable and proven as cost-effective. CAD embedded and desktop solutions also increasingly bring simulation to the forefront of the design process, reducing late changes and significantly compressing the overall development process – in reported cases by up to 70 percent. Simulation is no longer a luxury, but a mission critical component in the product development process.
Probably the most significant development in 3D modelling technology has been the evolution of true multi-disciplinary simulation. Last year, MSC introduced a step change by combining the most common but traditionally unconnected disciplines into a single solution – MD Nastran. Analysts can now routinely perform complex multi-discipline simulations for linear, nonlinear, dynamic, thermal and fluid flow applications. The single data model eliminates the need for multiple tools and associated translation errors, while the fully coupled solver ensures a fast and accurate representation of the complex physics involved.

However, overwhelmingly our customers tell us that ‘integration is the new functionality’, and we’ve seen a growing requirement for greater interoperability within a significantly rationalised suite of solutions. This may be between CAD and simulation models, between data models for different analysis disciplines, or at a large scale integrating the simulation data and processes into the overall PLM environment. Functionality is great but without doubt harmonisation is where the major benefits are found today.

CW. 3D modeling is the ‘opening ante’ in the global manufacturing game. Everyone today can afford it and is using it more or less completely. However, the importance of 3D is not the question. The real question is whether 3D can deliver on the promise of becoming more than just a CAD phenomenon – can it revolutionise the way manufacturers sell, market, support and service products? And can it make a difference in the work products and the quality of those products from people outside the engineering department? We believe it can, easily. And of course, we think this is also inevitable.

CXO. How is this providing ROI for companies today – in what ways can they now present and share product specifications and designs in ways that were not previously possible?

UM. An excellent question – after all, none of this would be worth doing if companies couldn’t measure significant ROI from this current generation of software. First, we cut the number of physical prototypes, which clearly impacts costs greatly. We also reduced the amount of repetitive work and the costs involved every time an engineer leverages designs modelled in other CAD formats.

Somewhat more difficult to measure, but probably most important, is avoiding misunderstandings and frustration. Digital prototypes shared over distances, access to most up-to-date data, early involvement of manufacturing or purchasing all reduces costs. Furthermore, you save training expenses as engineers don’t have to learn all about history trees, and so on.

CW. Today, if you want or need any product-derived deliverable, you have the ability to digitally create everything you need to produce that deliverable. The solution is simple, just allow the individual contributors outside of engineering to author the content they need; all the tools needed to accomplish this exist today and do not require a complex PLM deployment. These tools can be used the same way CAD was deployed, one user at a time creating value.

The next value opportunity is realised simply by allowing downstream users to have access to the CAD file. That said, it is very important to understand that the solution should not be dictated by the originators of the CAD files. When this happens – and our customers experience the benefit right away – it opens up new ways of accessing product information they had never before thought possible.

Pete Lewis of XYPE comments: “Our customers realise that on one hand they have a priceless commodity in their CAD files, but also that beyond the engineering design process this asset is under utilised. By providing open access to this data in downstream departments such as those responsible for product documentation, service information and indeed the assembly shop itself, you are able to extract great value and competitive advantage from an existing resource. They key is providing the right tools to the right guy.”

AM. Our customers make investment decisions based on long-term strategic goals, and at this level although the investments can be large the returns are equally compelling. The technology benefits are perhaps the easiest to quantify. Manufacturers now manage fewer, but better integrated software solutions, and develop joint product development strategies with selected long-term strategic solution providers.

Commercially speaking, probably the best ROI justifications come from customers themselves. Automotive suppliers TI Automotive, implemented a simulation management environment, reducing development time by 25 percent, achieving reduced prototypes, labour and testing, and resulting in a significant competitive advantage within a 24 month payback period. B/E Aerospace Inc. now performs just a single FAA airworthiness physical prototype, with a 100 percent pass record, saving over US$35,000 per previous test. Most recently, leading consumer appliance manufacturers Whirlpool Corporation announced a global standardisation on SimEnterprise reporting their anticipation of dramatic improvements in product innovation, performance and quality over a long-term program. All of this enables more effective virtual production and bottom line benefits in the speed, quality and cost of new product creation.

CXO. So what plans or strategies do you have to take this technology to the next level? What untapped potential do you see for the technology and in what sectors is this potential greatest?

AM. Although last year saw the completion of the four major components in our enterprise solution, in many respects this is just the beginning. In the near future we will see additional inclusions in the multi-disciplinary capabilities of the core solver technology, and further knowledge capture developments in aspects such as template based analysis. Additional CAD-embedded and desktop options will also be added to strengthen the solution breadth and to enhance scalability. It seems clear that while CAD and PLM trends in many areas are towards stabilisation, simulation remains an investment focus. In particular we see a marked acceleration in the enterprise wide mobilisation of simulation information, both within traditional aerospace and automotive markets but increasingly in other manufacturing industries.

However, again, technology is not the only consideration. MSC has a rich history of customer and partner alliance. Our global partnership with IBM is already bringing a new scale of benefit to our enterprise customers through On-Demand and MSC/IBM Blue-Stack ready solutions. Similarly our alliance with Microsoft introduces new levels of Windows Vista interoperability between our respective technologies. Organisations looking for rationalised supply, from leading providers, offering integrated best-in-class technology can only benefit.

UM. Our strategy clearly is to extend our third generation PLM (3G PLM) approach, one important cornerstone of which is dynamic modelling. Then the richness of our models; instead of relying on a data-heavy PLM umbrella, we believe design information needs to be captured as part of the model. Third is our modular software architecture, which allows manufacturers to fit it into their existing IT infrastructures. We clearly acknowledge the ERP system as the master of records and provide flexible interfaces between ERP and engineering. A fourth cornerstone is collaboration; external partners take advantage of engineering-focused collaboration tools that also offer high performance application sharing.

To make all of this happen, we are closely aligned with Microsoft, which is emerging as the dominant player in data aggregation, team collaboration and information dissemination. CoCreate has the expertise to build engineering applications on top of those standards – which leads to a highly attractive 3G PLM solution for companies in high-tech electronics and machinery.

CW. We intend to continue to revolutionise manufacturing with our product information everyware strategy. This strategy means not only accessibility of 3D design data when needed, but also in any form it’s needed (the ‘any software’ part of our concept). With product information everyware, the entire manufacturing industry can take advantage of the intellectual property being generated and stored in 3D CAD design data while reducing overall cost and improving quality.