Data Driven Design Reuse and Part Rationalization Value Opportunity
In January, Kalypso and Convergence Data announced their partnership in efforts to accelerate digital transformation and the deployment of advanced PLM capabilities such as design reuse, part classification and duplicate part reduction.
This partnership brings a leading provider of parts classification software and services together with a company that offers a comprehensive set of transformational product lifecycle management (PLM) services to capture this significant, but often elusive value opportunity.
Kalypso’s global director of enterprise technology, Rod Walters and Convergence Data’s founder and president, Richard Turner sat down to discuss the dramatic resurgence of investments in PLM to support digital as the physical and digital worlds converge.
“If you look at the lifecycle costs of a part – the material, handling, design and procurement costs – it all adds up over the life cycle. And if you can mitigate that part from being created, you're going to save money right off the bat."Rich Turner
If you're at the start of your PLM journey, design and part reuse represents a hard dollar value opportunity to help justify a PLM transformation effort. But you may also be at a point in your journey where this represents a time to re-energize leadership recognition of the return on investment from part-centric design and improved data quality and data management.
PLM projects should be part of a transformation strategy with a well-defined value roadmap and deployment plan. Achieving the business case should incorporate a heavy dose of organizational leadership and change management to effectively transition the product and sourcing groups to new harmonized global business to new product and part introduction processes. As the business' case for PLM is built, design reuse and part reduction will add both qualitative, and more importantly, quantitative hard dollar savings so critical meet program Return on Investment (ROI) goals.
“We need to help our clients align organizations, define metrics and measures around a new common set of business processes and standards to achieve the returns associated with the vision that for the integrated enterprise.”Rod Walters
As data migration, cleansing and transformation is a key aspect of any PLM program, it is critical to take a global view as you consider the sharing of parts and part data across various operating groups. Working as one company represents a significant value and an opportunity to gain sponsorship and drive consensus from the top down. Having a global product and part data strategy and metrics-driven governance is critical to drive decision making for part data and to effect organizational change. A shared, well-communicated strategy and processes that promote the use of preferred parts through sourcing with long-term supplier agreements will allow you to achieve dramatic cost savings. When everyone is working together, they can simplify the business, improve quality, and reduce product cost.
It oftentimes takes outside influence to help companies steer and implement these changes. Kalypso and Convergence Data bring best practices to large-scale PLM transformations as we migrate organizations onto new systems, enable cost saving processes, and get them working like one unified company.
To attain success in digital transformations requires a careful recognition of all of the elements of your roadmap – from planning for the cleansing of the data to understanding the relationship between stakeholder teams, and from exposing cost opportunities to driving governance through analytics.
Watch the full chat here: