Integratie tussen PLM en ERP. Dirk Mertens Sales Manager Dirk Luwaert Business Consultant Ad Ultima PLM

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1 Integratie tussen PLM en ERP Dirk Mertens Sales Manager Dirk Luwaert Business Consultant Ad Ultima PLM

2 Agenda Ad Ultima Why invest in ERP/PLM Positioning & References Integrate ERP & PLM ERP & PLM are complementary Windchill ERP Connector Integrate Dynamics AX & Windchill Advanced: Top-down & Configurations Process-led deployment Datamodel 2

3 3

4 Who is Ad Ultima? AD ULTIMA 4

5 Who s Ad Ultima? Ad Ultima founded in 1999 is a long term partner in integrated software solutions for growing SME s and divisions of international companies offering tailor-made solutions based on standard products. 5

6 Our team High qualified consultants many years of experience ERP implementations & broad knowledge of IT Solutions on time and within the budget thanks to acquired knowledge Our projects Average implementation time 6 to 12 months A pragmatic and no-nonsense approach Implementationmethodology is used as a tool Projectmanagement and quality control 6

7 Ad Ultima Group 7

8 Resources Team of 115 people of which 64 senior consultants 34 analyst programmers 2 product manager 15 sales & staff 8

9 What is the approach of Ad Ultima WHY INVEST IN ERP/PLM 9

10 Why? Corporate success is not based anymore on production facilities, financial capital and ownership, BUT on invisible and untouchable value-intangible assets : business partners relations, brands, ideas, business processes, culture, know-how and innovation force 10

11 How PLM is Evolving Best of breed PLM s are now enterprise systems Yesterday Today Design Strategy Supplier Strategy CRM PLM ERP Cost & Green Strategy PLM Mfg. Strategy SCM HR Service Strategy ERP Mfg.. CRM HR PTC

12 The introduction of the Value Roadmap Strategize Ensure Strategies are Successful Strategy Initiatives Processes Capabilities Business strategies that enhance business value. Actions taken to create value through changes in people, process or technology. Processes throughout the digital product value chain where initiatives are implemented. A IT platform that must be in place for an initiative to be successful. Value Opportunities Business Initiatives Processes Capabilities Tie Processes and Initiatives to Corporate Objectives Align 12

13 The role of Ad Fluentem Being better prepared Benefit from application overhaul opportunity (Gartner) Standardize (Centralize ERP/PLM processes) Optimize (Continuous improvement) Synergize (Share processes across organizations) visibility, efficiency streamlined processes and better insight improved productivity 13

14 Portfolio POSITIONING 14

15 Application Consultancy Business Intelligence Business Consultancy Portals DMS & ECM ERP PLM CRM WMS & MES SQL IT INFRA ShareP 15

16 Process Business Improvement Productivity WMS & MES IT INFRA 16

17 PTC and Microsoft: A History of Innovation Together, PTC and Microsoft deliver best-in-class product development solutions that can be leveraged broadly across the organization s IT infrastructure. IT Infrastructure Simplified user experience Leverage existing IT investments for lower TCO Open, extensible platform Customer Value PDS Architecture End-to-end solutions for product development Single source of product & process knowledge Full integration with Microsoft 17

18 REFERENCES 18

19 References: Metal & Machinery 19

20 References: Plastics 20

21 Integration is a matter of process optimalisation PROCESSES 21

22 Optimizing Product Development Processes is Critical PRODUCT DEVELOPMENT LIFECYCLE Organization Management Sales & Marketing Engineering Sourcing Manufacturing Service Plan Concept Design Validate Production Support Portfolio Management Program Management Project Management Environmental Performance Management Regulatory Compliance Quality & Reliability Management Change and Configuration Management Proposal Response Requirements Capture and Management Concept Development System Design Detailed Design Verification and Validation Variant Design & Generation Design Outsourcing Early Sourcing Component and Supplier Management Manufacturing Process Management Tooling Design and Manufacture Manufacturing Outsourcing Product Support Analysis & Planning Technical Information Creation & Delivery Performance Analysis & Feedback 22

23 The PTC Product Development System Windchill PPMLink Windchill RequirementsLink Mathcad Creo and other MCAD Cadence, Mentor, Zuken Open Source, Rational Program Portfolio Management Requirements Management Engineering Calculations MCAD / CAM / CAE ECAD Embedded Software ERP Financials SCM MRP SAP, Oracle, Dynamics Enterprise Interoperability Document Management Business Reporting Distributed Collaboration Communities of Practice Workflow Change & Config. Mgmt Heterogeneous CAD Data Mgmt Complete BOM Management ECAD Data Management Visualization Product Lifecycle Management Service Information Manufacturing Process Mgmt. Quality, Risk & Reliability Mgt. Product Analytics Supplier Management Component Management Digital Mockup Arbortext Windchill MPMLink Relex InSight Windchill Supplier Management Windchill PartsLink Creo PTC

24 PLM and ERP coexistence challenge Links together the critical up- and down-stream processes and data PLM ERP Requirements Capture and Management Configuration Management System Design Detailed Design Variant Design and Generation Manufacturing Process Management Change Management Production Scheduling Inventory Management Sourcing and Procurement Sales and Order Management Shipping Logistics Accounting and Financial Reporting 24

25 The Reality of Manufacturing Companies Is your PLM really integrated or connected to ERP? Pressures Market Pressures Pain Points / Challenges Reach faster ramp-up, shorter development cycles and quicker time-to-market Manage increased product variability and complexity Improve operational efficiency and excellence Resulting in. Achieve first time quality at reasonable Inefficiencies cost Higher cost Delays Errors Disconnected engineering, manufacturing & production teams Difficulty to find and re-use proven manufacturing processes and resources Struggling to provide accurate manufacturing information to production on-time 25

26 Applications - Range of Processes What How Where and When CAD Product Design Process Design - Bridging the Gap - Production Planning Production Execution Processes Supporting applications PLM Solution? ERP Solution Where? MES MES Solution How do we implement a business process across two value chains? 26

27 Two Different Value Chains Product Development Value Chain Logistic Value Chain? The implementation of a process over the two value chains depends on: Customer business model Engineer to Order, Manufacture to Stock Customer product complexity Key business improvement levers 27

28 Complexity Makes a Difference 28

29 Business Initiatives Make a Difference Where does your organization see key innovation and efficiency opportunities? Development Processes Production Processes 29

30 Drawing the line between PLM and Production Systems? What How Where and When CAD Product Design Process Design - Bridging the Gap - Production Planning Production Execution Highly Collaborative Processes Transactional & Event-based Processes Supporting applications MPM in the Production Systems PLM Production Systems ERP/MES Best Practice is to have MPM in the PLM System PLM Production Systems ERP/MES 30

31 What is the added value of a better integration between product development and production, sales, supply chain,... ERP AND PLM ARE COMPLEMENTARY 31

32 PLM and ERP are Complementary PLM manages the innovation process enabling companies to quickly create right-to-market products and to leverage part and process re-use ERP ensures that a quality product is produced according to customer demand in a timely, cost controlled manner. CIMdata 54% 35% Best in class companies are 1.5 times more likely to have process that span PLM and ERP systems. Best in Class All Others Aberdeen Integrating the PLM Ecosystem 32 32

33 Concurrent Product and Manufacturing Process reduces costs Concept Development Limited opportunity for Manufacturing to influence design and reduce cost System Design Detailed Design Manufacturing Process Management Reduce Cycle time Production Ramp-up Full scale Production Reduce Cost of Change Number of Changes Concurrent MPM Process Reduce MFG Cost Typical MPM Process Product Development Lifecycle 33

34 PLM s Impact on ROI PLM Decision made here can Impact ~ up to 80% of product cost ERP Decisions made here can Impact ~20% of product cost ebom Intellectual assets Integrate Physical assets MCAD ECAD EMB SW Process Plans mbom Resources Services BOM Partners (design & mfg) Compliance & analysis Inventory tracking Inventory tracking Materials handling Forecasting Cost of change to the product here = X Cost of change to the product here = 100X, 1000X, + 34 MA-V1

35 PLM-ERP Connection Delivers Real Value Higher Quality Reduce errors in BOM information by 75% 1 Reduced Cost 8% to 15% reduction in rework and/or scrap due to out-of-date BOM information 1,4 15% reduction in inventory costs through improved reuse 4 75% reduction in time spent on synchronizing systems 4 Reduced cost of creating and maintaining custom integration software by 50% or more 2 Shorter Time-to-Market Up to 40% reduction in cycle time by reducing the number of data errors 1 Note: (1) GIGA, (2) BearingPoint, (3) PTC, (4) CIMData 35

36 Windchill (standard) integration component ERP CONNECTOR 36

37 Windchill Enterprise Systems Integration Integral Module of Windchill PDMLink Low Upgrade Costs Ensures information synchronization with downstream manufacturing systems such as ERP Flexible configuration allows release of all pertinent business objects Bi-directional framework Reliable closed-loop transaction management Built on powerful, reliable middleware technology Open, standards-based architecture for use with other EAI vendors 37

38 Distribution targets Available Properties Controlled via Type Manager. Each Distribution Target Type has a Corresponding Soft Type All Publication Options Controlled on Per- Target Basis 38

39 ERP-Specific Adapter 2 ERP Connector ERP-Specific Adapter 1 Windchill Native Multi-ERP Architecture Windchill Process Engine 1 Suite Process Definitions (PTC s ESI Business Logic) ERP 1 Q Q Q Q JMS T T T T PE 1 PE 2 Adp1 Adp2 Multi-ERP OOTB Different configurations per plant and ERP instance , FTP, File, SOAP, JMS, etc Process Engine 2 Suite Process Definitions (PTC s ESI Business Logic) ERP PTC 2008 PTC 39

40 Enterprise transaction logging Now also finds transactions in which the object wasn t the Release Object Finds individual objects in search results New Common Table No waiting for complete result sets to start browsing Sort and group by any column Select columns to display, including soft attributes Expandable tree structure better shows multitransaction history 40

41 Manufacturing phantom In SAP, the allocation from phantom is recorded Allocation from children of phantom sub-assembly is allowed 41

42 Companies having Dynamics AX and Windchill can really benefit from an integration of both business applications INTEGRATE DYNAMICS AX AND WINDCHILL 42

43 Windchill - Dynamics AX Architecture Microsoft SharePoint Windchill Web Parts for SharePoint Roletailored UI on SharePoint Windchill ERP Connector Dynamics AX SQL Server Windows Server 43

44 Benefits of Integrating Windchill and Dynamics AX Integrating PTC s Windchill and Microsoft Dynamics AX: Improves Product Development Effectiveness Lowers Product Development Costs Increases Data Visibility Across the Enterprise 44

45 Improves Effectiveness Automatic publishing of BOMs and revisions from Windchill to Dynamics AX: Automatically updates, keeping manufacturing up-to-date, when change notices are approved or items are released Reduces resource costs, rework, and scrap caused by out-ofdate BOMs 45

46 Lowers Development Costs Windchill-stored BOM and CAD data viewed from Dynamics AX: Allows manufacturing users to access CAD viewables and drawings, ensuring consistency between engineering and manufacturing Dynamics AX-stored cost and inventory data viewed from Windchill: Allows engineers to chose lower-price product components for a lower total product cost, resulting in competitive product pricing to the market 46

47 Increases Data Visibility Product Development data can be accessed through multiple systems: Cross-functional users can access data from both systems through SharePoint 47

48 Working with CAD and Product Structures TOP DOWN FOR FASTER RFM 48

49 Defining a New Product Concept Iterative process of developing complex products in a concurrent fashion by going from concept product architecture to a defined set of design deliverables Detailed Product Definition Concept Product Architecture Top Level A B C Top Level A a b B c Develop Top-Down Top Level A Create CAD a b B c A.asm A-Skel a.prt b.asm 1.prt Top Level A a b B c d 1 A.asm A-Skel a.prt b.asm 1.prt B c d C C C D D D.asm 001 D-Skel.prt E prt E.asm 002.prt 003.prt 49

50 Release to production systems Releasing BoM to downstream process Exporting BoM reports Available for MPM Publishing to ERP other downstream systems Manufacturing Engineer 50

51 Extended integration CONFIGURATIONS 51

52 Number of Products in an Order Many Business Strategies to Sell Products Assemble-To-Stock Products fully designed with identified options ERP plans productions of pre-defined options Identified product combinations manufactured based on forecast Industries: Consumer Products, Hi-Tech NO Involvement by Engineering in Individual Orders Assemble-To-Order Products fully designed with identified options Orders configured and processed by ERP Industries: Automotive OEMs, Hi-Tech, Industrial Configure-To-Order Products fully designed with rules that allow creation of custom parts Each order configured & validated by PLM using rules established by Engineering Industries: Hi-Tech, Industrial Engineer-To-Order Significant custom engineering added to generic product Each order validated by Engineering and PLM Industries: Industrial OEMs, Auto Suppliers, Aero Contract Product Designed and produced to meet customer or contract specific requirements. Each order designed and validated by PLM and Engineering Industries: Defense, Prototypes, Custom Tooling One Low Amount of Order-Specific Custom Engineering High 52

53 Core Concepts Design (owned by Development) What the product can do Technical Capabilities List (owned by Development) What the product can do Master Feature List (owned by Sales) What can be sold Price List (owned by Sales) What a customer can buy Engineering Structure Feature 1 Feature 2 Feature 3 Premium Model Deluxe Model Mapping Mapping Feature 4 Feature 5 Mapping Value Model Feature 6 Option Towing Option Audio Overloaded - All product designs for all product variations Technical Dependencies or constraints Sales Dependencies or constraints Sales and Packaging Dependencies or constraints 53

54 Order Inputs Strategy for Managing Product Configurations in the Enterprise Sales Order System PLM System ERP Execution System With increasing product complexity, for some business processes and selling strategies, this approach will help companies improve their enterprise processes 54

55 How to make the project a succes? PROCESS-LED DEPLOYMENT 55

56 Finding More Information PRODUCT DEVELOPMENT LIFECYCLE Organization Management Sales & Marketing Engineering Sourcing Manufacturing Service Plan Concept Design Validate Production Support Portfolio Management Program Management Project Management Environmental Performance Management Regulatory Compliance Quality & Reliability Management Change and Configuration Management Proposal Response Requirements Capture and Management Concept Development System Design Detailed Design Verification and Validation Variant Design & Generation Design Outsourcing Early Sourcing Component and Supplier Management Manufacturing Process Management Tooling Design and Manufacture Manufacturing Outsourcing Product Support Analysis & Planning Technical Information Creation & Delivery Performance Analysis & Feedback 56

57 Current Process Maturity Example: Change and Configuration management Product configuration-sharing to enterprise Problem with late replacements. Product configuration lifecycle management Change dashboards No application is currently managing as-built, as-maintained, ERP is missing revision history No current business need but can be used as project management tool Integrated product issue management No integration in general change process and no control on effective implementation Partner Change Integration Current business need? Integrated, cross-discipline change management Change information related to drawing and not to article so tracebility from within ERP very difficult. Limited record of revision information for assemblies. Standardized, automated change process Procedures exists and pro-active communication ( , telephone) keeps process under control

58 PLM-ERP Integration Approach Overview System Requirements constraints Security, Performance Complexity, Standards Cost Business processes What data elements Where in which system(s) persisted or not When triggering events Part, BOM, Document, Change, PLM, ERP Release, Batch, How Transport (FTP, JMS, ) Data format (CSV, XML, ) Technology (ESI, ERP Connector, ESI Open API, customization) Solution Requirements Solution Design 58

59 Steps in the definition of the interface DATAMODEL 59

60 Solution Requirements Overview Solution requirements management should follow the phases illustrated below System Identification Triggering Events Data Elements Data Mapping Data Persistence 60

61 Solution Requirements System Identification ERP has consolidated: PLM is consolidating: Financials Accounting Human resources Procurement Manufacturing resource planning Supply chain management Supplier relationship management Customer relationship management Project costing and accounting ERP PLM CAD data management Document management and workflow Distributed collaboration Visualization and markup Product data and configuration management Change management Program Portfolio management Component management Supplier management Product data and configuration management Manufacturing process management Service Information Analysis Quality management Requirements Management 61

62 Solution Requirements Triggering Events Describe the user or system events that drive the exchanges between the systems, and their related elements User events The system shall publish the following objects when the user sets the lifecycle state of a part to [ ]: Part, BOM, [ ] The system shall provide the user with the ability to select a part, and view its current inventory levels per plant System events The system shall publish the following objects whenever a Change Notice reaches the lifecycle state [ ]: Change Notice, all resulting Parts, BOMs, [ ] 62

63 Solution Requirements Data Elements Identify the data elements (objects, relationships) exchanged between the two systems Primarily identify data elements and shared fields that need to be represented in more than one system This is based both on business process analysis and system requirements Material Part Change Master Number Description Reason for change Status Change Notice Number Name Description BOM (Header) Number Usage Plant(s) BOM (Header) Number Version View Target Plant(s) BOM (Components ) Component Line Number Quantity Quantity Unit BOM (Usage Links) Component Part Number Line Number Quantity Quantity Unit Number Industry Sector Material Type Description Unit of measure Version Plant(s) Number Type End Item Name Default Unit Version Target Plant(s) 63

64 Solution Requirements Data Elements Secondarily identify data elements that could be represented in more than one system to improve business process or user productivity Document Document Material Part Number Number... Type Name Internal Comment Creator Part Type Description Version Version Part Material Inventory Quantity Inventory Level Cost Standard Cost 64

65 Solution Requirements Data Elements Some objects must have more detailed requirements BOM Describe which BOM configuration needs to be published: latest, latest at Released state, according to baselines, etc. Describe how many BOM levels must be published when a triggering event occurs Describe any validations that should occur, i.e. component parts must be at a given level of maturity before parent is published Effectivity Describe which types of effectivity are valid and must be published Revision control Describe if revision control is required on ERP objects (i.e. SAP Material) Plants Describe whether ERP plants/organizations need to be represented in Windchill and which objects they are associated to 65

66 Solution Requirements Data Mapping Combine the data element tables to create mapping tables Table is indexed according to the target system fields to which are mapped source fields Transferred as is Translated according to a lookup table Complex: multiple field combination, condition, etc. Default values Material Number Industry Sector Material Type Description Unit of measure Version Plant(s) Internal Comment Procurement Type Cost Part Number Default to XYZ (Conditional) If End Item, Finished Product, else Lookup(Type, Type table) Name Lookup(Default Unit, Unit table) Version Target Plant(s) Creator Lookup(Source, ) Standard Cost Source Separable Inseparable Component Source Each As needed Target Semi-finished product Semi-finished product Raw Material Target Each Without Unit of measure 66

67 Solution Requirements Data Mapping BOM Mapping: Depending on which BOMs are managed in Windchill, the BOM (header) mapping will differ Most frequent scenarios Only ebom in Windchill; mbom only in ERP Changes must be manually propagated mbom in Windchill, transferred to ERP Other Enables ebom-mbom associativity Often one view per plant Single/common BOM Both ebom and mbom published to ERP Windchill ebom Publish ebom mbom mbom BOM Publish ebom mbom mbom ebom Publish Publish ERP mbom mbom mbom mbom BOM mbom ebom mbom 67

68 Solution Requirements Data Persistence Using the following guidelines, determine data persistence requirements: Only persist elements and fields that need to be persisted Consider persisting fields that are very frequently used in that system Avoid persisting fields that change frequently or that would increase triggered events unnecessarily Extend the mapping tables to include C/R/U and persistence Material Operations Persisted Number R X Industry Sector CR X Material Type R X Description R X Unit of measure R X Version R X Plant(s) R X Internal Comment R X Procurement Type RU X Cost CRU X Part Operations Persisted Number CR X End Item CRU X Type CRU X Name CRU X Default Unit CRU X Version CRU X Target Plant(s) CRU X Creator CRU X Source CR X Standard Cost R 68

69 Solution Requirements Data Persistence System of Record One frequent discussion item is which system is the system of record, or the master There is very likely not a single, or simple answer to that The answer depends on whose point of view is taken In many cases, for a given element, no system contains all fields Elements and fields can be categorized as being created, updated or read* by a system Created is where the element/field is first authored Updated is where the element/field can be modified Read is when the system can display the element/field (either persisted or on demand) * Delete (from CRUD) is considered a marginal use case and not covered here 69

70 Solution Requirements Data Persistence How to determine System of Record If the field is only stored in one system, obviously that is the SoR For those fields that are persisted in more than one system (intersecting region on the diagram), the system with Update is the SoR Typically it is the source ( upstream or from ) system In those cases where a field can be updated in more than one system, once again the upstream system should be the system of record Although this is bad practice and should be avoided whenever possible Windchill Data evolves with versions Determine SoR for these ERP Data evolves with time Aggregate Enterprise Level Object 70

71 Solution Requirements Data Persistence Based on the previous guidelines, extend the mapping table with SoR Material Operations Persisted Number R X Industry Sector CR X Material Type R X Description R X Unit of measure R X Version R X Plant(s) R X Internal Comment R X Procurement Type RU X Cost CRU X Effectivity (Actual) RU X Part Operations Persisted Number CR X End Item CRU X Type CRU X Name CRU X Default Unit CRU X Version CRU X Target Plant(s) CRU X Creator CRU X Source CRU X Standard Cost R Effectivity (Planned) CRU X System of Record PLM ERP ERP PLM PLM PLM PLM PLM PLM PLM ERP ERP ERP Some known exceptions to the SoR rules are acceptable Source (make/buy): the next Windchill version should be updated with the correct value Effectivity: Windchill is the source, but ERP the SoR 71

72 System Requirements Describe the requirements that are related to how the system itself should work System performance requirements Publication should be an asynchronous (background) task which does not affect user interaction Transactional requirements For any interaction that requires a delta to be published, results must be returned to Windchill The system should have a closed loop for failure handling and retries If data validations need to occur, they should be before or during the triggering events Describe he sequence of events that occur in the case of failures (demote, etc.) Security requirements Publication of the data should never expose it to unauthorized users Technological constraints Legacy systems (flat file, ) Use of specific tools (customer middleware, ) 72

73 More information?

74 Why Ad Ultima PLM Approach PLM as a business application: Different approach than most of the implementers in the PLM market, where their main experience is related to engineering-only processes (and even often MCAD application usage only) Long-term experience with implementations in medium size companies in an international context Business integration: In-house knowledge and experience related to the process of integrating ERP and PLM Ad Ultima Axapta and Ad Ultima PLM and AdFluentem Partner of To-Increase (Microsoft ISV) in the development of their PLM integration (and more in particular the Windchill integration) 74

75 75

76 QUESTIONS? 76

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