Risk Management in PLM

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Lionel Freeman
7 years ago
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1 Risk Management in PLM Abstract The management of a project or a portfoio of projects aso brings aong with it the ooming threat of risks that coud cause an impediment to the smooth roing out of the projects and the product ifecyce as we. Risks, if not identified at the eary stages of the project itsef, can ead to significant oss of time, resources and aso deter the origina objectives of the project. Project Managers and corporates are, as a resut, having to chart out a pan to identify, anayse, and mitigate the probabe risks before they threaten to sow down the ifecyce of the product/project. They aso need a systematic pan to manage risks using a stored procedure or a process mode (Mensing), which is not ony transparent and easiy accessibe for the sake of enterprise-wide usabiity, but can aso be easiy reused and can be scaed up to meet an requirements. This paper expores how PLM can give project management that added support to identify, anayse, and mitigate risks at an eary stage as we give a ceary drafted process fow that can be reused whenever necessary.

2 Contents Abstract 1 Introduction 3 What is Risk Management? 3 Why do Organizations Need to Think about Managing Risk? 4 How can PLM hep in Risk Management? 4 Concusion 5 References 6 About the Company 7

3 Introduction When we are reckon with risk or compiance at an enterprise/organization eve, we think of the SOX 1, but when it comes to managing the project or product ifecyce, managers need to have the capabiity to measure, cacuate and eventuay mitigate the changes/risks that coud make them stray from the initia pan. Previousy, managers used techniques ike the GPM 2 that coud measure the performance of a schedued activity using foat anaysis techniques to study the CPM3s strategies and shortcomings (Leon, 2010). Managers depoyed eight different foat anaysis techniques to gather the data and anayse for the changes that they needed to work with. But PLM has changed the name of the game and brought the entire management of the product ifecyce iteray under one roof, right from conception, design, manufacturing to end-of-ife. It can seamessy integrate with coud and on-site business systems in the organisation. It can identify risks eary on and hep create a process that can be easiy depoyed to mitigate the risk at every stage. What is Risk Management? In the word of business, risk management can be defined as the forecasting and evauation of risk factors throughout the ifecyce of a product/project, together with the identification of procedures to avoid or minimize their impact (Risk management), as we as be in adherence to a the compiance requirements at a times. It is a continuous process of risk identification and mitigation and is cosey inked to a the processes in the organization. Figure 1 : Risk Management 1. Sarbanes Oxey Act for Compiance 2. Graphica Path Method 3. Critica Path Method

4 Risk, if propery managed can be proactive rather than reactive and can hep the organization stay in contro of a impied future turn of events as we (Staneigh). If propery managed, risk can not ony predict a possibe future events but aso hep in their soft anding, i.e., reduce the magnitude of their impact. Why do Organizations Need to Think about Managing Risk? For an organization to pan the ifecyce of their product, there needs to be a cear pan right from conceptuaization, to design, to manufacturing, to after saes, to end-of-ife. Severa factors coud hamper the reaization of the objectives at every stage an utimatey transate into a oss of time, resources, compromise on quaity parameters, and, of course, investment. For a product/project to have a we-oied management, it is essentia that every organization creates a pan for capturing, measuring, evauating, and mitigating the risk and the earier it is done the better. Conceptuaization and Design Stage Manufacturing Stage Saes, Aftersaes, End-of-ife Stage Figure 2 : Product Lifecyce Management How can PLM hep in Risk Management? Organizations aready have a ot on their pate with governance and compiance reguations becoming increasingy stringent. Not ony do these factors add on to the pressures on their operations and financia management, but they aso have the added burden of managing

5 severa risk factors that coud drive them off track from their objectives. A organizations procaim to have a risk management pan but they often manage risks in sios, which often eads to ineffective, untimey and poory managed risk responsiveness. The best approach to manage risk is to perceive it as a ifecyce, where one step is a ogica by-product of the other (The key stages of Risk Management Lifecyce, 2014). Some of the advantages that PLM can infuse into the process of Risk management are (Expanding PLMs Purview - Quaity and Risk Management, 2009): A comprehensive and structured pan that works on identifying, assessing, appropriatey treating, monitoring, and reporting any possibe risk factors that coud impede the deiverabes Correction of probems before they surface using techniques ike FMEA 4 or DFMEA5 Tying back of actua quaity issues to the eary phases in the ifecyce using processes ike CAPA6 Added QLM 7 capabiities that hep cose the oop from product design to the rest of the ifecyce Integration of PTC Windchi soutions that can aso incude criticaity (FMECA 8) into FMEA among other added features and benefits Automatic tracking of compiance of governance reguations for the parts and processes Use of risk trackers, which are easy-to-use interfaces, to maintain contro of the risk anaysis process Engagement of cross-functiona and coaborative buy-in into the risk management process Concusion PLM can be viewed as a singe source of truth, or in other words, a singe source of information that can be easiy accessed across the organization irrespective of disparate geographies, systems or teams. PLM Risk Management soutions can hep the organization stay on schedue of its deiverabes, and track the progress through miestones and hep in easy achievement of the expected outcomes and ROI. It can be seamessy integrated into a the on-site and off-site systems of the organization and maintain an issue tracker that keeps track of the actua progress of the project in accordance with the proposed pan. It proactivey identifies, measures, evauates, and formuates a pan to mitigate the risks before they actuay occur, which heps the project to stay on track with their pan. 4. Faiure Mode and Effects Anaysis 5. Speciay Designed FMEA 6. Corrective and Preventive Action 7. Quaity Lifecyce Management 8. Faiure Mode, Effects and Criticaity Anaysis 9. Return On Investment

6 References Expanding PLMs Purview - Quaity and Risk Management. (2009, August 24). Retrieved from tech-carity.com: Leon, G. P. (2010). GPM and Forensic Tota Foat. Retrieved from PMI.org: Mensing, A. (n.d.). Contract Software. Retrieved from Contract-software.com: Risk management. (n.d.). Retrieved from The Economic Times: Staneigh, M. (n.d.). Risk management...the what, why, and how. Retrieved from bia.ca: The key stages of Risk Management Lifecyce. (2014, August 20). Retrieved from Covaentsoftware.com:

7 About PROLIM: PROLIM is a eading provider PLM Software Services to industries ike Automotive, Aerospace, Manufacturing Suppier and Life Sciences. Providing these services has heped the cients to enhance efficiency and top-ine growth As one of the fastest growing private Companies in America recognized by Inc 500, PROLIM being customer focused rather than product focused, the company envisions harnessing customer requisites by adding more sateite offices over the next few years in major metropoitan centers PROLIM envisages reaching customers beyond borders to deiver effective services in the west and east coasts of the US Canada and Europe and Asia. US OFFICE DALLAS PROLIM Goba Corporation 2805 N. Daas Parkway, Suite 610 Pano, TX Phone: US OFFICE DETROIT PROLIM Goba Corporation Northwestern Hwy, Suite 380 Farmington His, MI Phone: CANADA OFFICE PROLIM Canada Inc 4611 Rosebush Road, Mississauga L5M 5H2, Canada Phone: INDIA OFFICE PROLIM Soutions Pvt. Ltd. Word Trade Center 20th Foor, Maeswaram, Bangaore Phone:

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