The vdR Group is a 27 year old software development organization headquartered in Southern California. A significant portion of vdR’s revenues are generated from the licensing of various integration technologies and solutions for the engineering and manufacturing community. Partners include Aras, Autodesk, and OpenText. Moreover, vdR does not market or sell direct to end users. It is strictly focused on technology innovation, software development and services to support our partners. It’s a simple business model – we build and maintain the technology.

It’s typical for a company to have its engineering groups use PDM systems sold by CAD vendor to facilitate CAD integration and version compatibility. These same companies are likely to deploy PLM at the enterprise level to manage business processes for the entire product lifecycle.

The overall benefit of integrating PDM to PLM is to feed workgroup product and design data from PDM into enterprise PLM workflow, while maximizing the use of existing processes.

A few benefits of integrating the two systems include:

1. Enhancing existing functionality with new capabilities
2. Improving operational efficiencies
3. Streamlining processes while ensuring workgroups and the enterprise are in sync

While the requirements for developing a PDM to PLM integration include:

1. Sharing data at the appropriate times
2. Maintaining existing processes and workflows at workgroup and enterprise levels
3. Implementing safeguards and controls to keep the two systems synchronized

“It’s important to first think through all of the use cases; to understand all of the scenarios for how clients will utilize a PDM to PLM integration,” stated Hiep Tran, Technical Director of The vdR Group. From his viewpoint of over two decades of experience, he stresses that developing an integration requires a collaborative effort. The first requirement is sharing data at the appropriate times. Key tasks for this requirement include mapping information for the timely transfer of data (including multiple file types), creating the triggers for the transfer and defining the system attributes for tracking the transfer of data.

It’s also important to have a register process in PDM so that when data is sent to PLM the data will be transferred accurately and efficiently. The registration process involves creating an associated PLM item for each PDM item (or file). This allows selected PDM items (or files) to participate in the enterprise workflow process which could involve renaming items and metadata to comply with PLM part naming conventions.

In a future blog, we will cover the second and third requirements listed above. As a developer or user of PDM or PLM, what additional requirements do you have when working between the two systems?

The experience developing multi-CAD for ECM is shared by one of The vdR Group’s lead developers, Charles Acton. In September of 2004 he developed the first incarnation of the CAD Manager Batch Processor. The objective was to be able to check-in and check-out multiple AutoCAD (.dwg) files while managing reference and raster file relationships and any associated mapped metadata. All versions to the most recent 5.1 release of the CAD Manager Batch Processor have utilized the Open Design Alliance (ODA) TeighaDwgX (formerly DWGdirectX) ActiveX/COM component. This component was used for its ability to read from and write to various drawing information locations inside AutoCAD documents.

Soon after Charles developed the initial version of the CAD Manager Batch Processor for AutoCAD, he created another version to work with MicroStation (.dgn) CAD drawing files. The problem was that there wasn’t a viable third-party component available to work with .dgn files. As a result, the only immediate way to obtain the needed functionality was to open an instance of MicroStation each time. This solution was less than ideal because it slowed down the process, had error risks, and couldn’t account for complex installations of MicroStation.

Over the years, he continued to eye ODA’s progress in developing specific C++ libraries that work with MicroStation files so that a stand-alone utility could be created. ODA just released their latest Teigha C++ libraries incorporating functionality for both DWG and DGN files.

Shortly thereafter, Charles proposed to management to invest in developing a component to work universally with both AutoCAD and MicroStation files. The development of the CADCom component and its integration to the CAD Manager Batch Processor code was completed last month. The new Batch Processor build allows users to select any number of AutoCAD and MicroStation files in the same list for check-in or check-out; further expanding the functionality of multi-CAD for ECM. As a result, the ability to extract information from CAD files is much faster and more efficient since the native CAD software is no longer required to access content.

As a developer or software OEM, what are your experiences creating new technologies? What are your processes?

The value of enterprise search is absolutely being realized. As a result, its use within corporations is rising rapidly. At the same time, providers of CAD, PDM, PLM, ECM, and ERP business applications are feeling market pressures to further differentiate themselves from the competition. Providing enterprise search as a much needed solution and highly valued capability is clearly a great way to do it.

The question is, how do they do it? How do application providers tackle the challenge of incorporate enterprise search as a value add? It can be a tough question to answer. Some dip their toe in, while others make large time and money investments to develop enterprise search capabilities – many of which are only able to find data that originated from their own applications. There is a different and much more effective way for enterprise software developers to provide their customers with;

• find, sort, categorize, display and access to all relevant data quickly and efficiently in any database or repository no matter where it originated
• the ability to keep all of their data where it is and avoid costly, time consuming data migrations
• the capability to search deep within the content of their data to include title block info, labels, x-refs, pmi, and more
• a single login to access multiple data locations and find previously “unsearchable” data
• virtual profile cards to understand ‘where used’ and ‘composed of’ details about parts and components
• the ability to promote design reuse within their company to greatly reduce redundant replication
• annotation, mark-up, and viewing of CAD models without needing the native CAD license
• secure data, audit trails and ITAR compliance

All of the above and more can be achieved by embedding existing and proven enterprise search capabilities into the core of a provider’s software offering. By embedding a solution like Alcove9, software providers can increase the value of their solutions to their clients and widen the gap of benefits vs. cost of ownership. Unified Information Access (UIA) also makes their app a customer’s company-wide go to search standard – no matter what the data is or where it originated from; even if it was developed in a competitive offering to that of the app provider.

What business applications do you feel could be of greater benefit to customers by having enterprise search?

Even when many of these questions are answered favorably, the implementation can still fail. I’ve seen them fail in large part due to lack of cultural acceptance by the company. New software typically means new processes, which translates to change. Most people fear change, especially when it affects how they conduct their work for 40 to 50 hours a week. Additionally, the new app might have been a good and much needed solution for one group, but was it implemented at the detriment of other groups? Are these other groups now being forced to use an app and process that’s perceived to hinder productivity rather than improve it? This is something that I’ve experienced. My take away is that overlooking cross-functional value, as well as, the cultural acceptance of applications can doom even the best of intentions.

It’s easy to get caught up in the functions and features of PDM, PLM, ECM, and ERP; yet at the end of the day it’s about people and processes. I don’t envy the group that has to evaluate new technology that, by in large, affects the entire company. These groups need to be part technology expert, part business professional, part psychologist, and part politician. There are several moving parts and personalities to consider. Success may very well be achieved by developing and executing an effective application adoption plan.

How does your company evaluate new applications? How important are application integrations to your company in providing cross-functional value?

The masses would agree that an implementation done right provides measureable returns. The Aberdeen Group states that companies that deploy PLM-related technologies have recognized the following benefits:

• an on average increase of 19% product revenue
• an on average decrease of 15% product cost
• an on average reduction of 16% development cost

As for integrations, CIMdata cites that integrated business systems can:

• reduce BOM error costs by 75%
• decrease the time, cost, and errors of re-entering data by 75%
• reduce inventory costs by 15% as a result of improved design re-use

The value of enterprise application implementations and integrations are eye opening. While implementations aim to provide an enterprise solution, the focus of integrations is process improvements. Integrations augment the value of implementations by providing efficient interoperability of business systems through connectivity, user-interface enhancements, and by extending functionality.

It’s true that a business system must be implemented before it can be integrated – that’s just the natural order. I would, however, state that integrations are of equal importance to implementations since without them critical business systems run the risk of becoming silos of disconnected information. If they aren’t connected, then they could be contributing to the complexity of the problem rather than providing a solution for it. The integration needs for manufacturers is trending up. They seem well aware of the need to integrate their applications in order to improve processes, promote collaboration, and to bring products to market quicker at lower costs.

Do you agree that integrations are of equal importance to implementations? What integration trends have you experienced, and in what industries?

A phased approach allows you to mitigate risk across the enterprise by using a crawl, walk, run methodology. It enables select departments or groups to utilize the solution, work through the new processes, and address concerns before rolling it our corporate-wide. These groups can also perform their own value assessments and champion the deployment to others when the time is right.

Additionally, as new technology is implemented, its integration to other key enterprise applications is of high importance. Integrations provide the benefit of timely and efficient access to data across multiple applications, and multiple departments. A phased approach to integration ultimately contributes to new process definitions and improves the ROI of early value assessments.

What value have you experienced, or heard about, from taking a phased approach to integrations or implementations?

Change management is a critical step to the engineering, manufacturing, and procurement processes. Integrating your PDM to PLM and/or ERP allows purchasing and manufacturing to manage critical changes sooner, and more efficiently. Having these details puts these teams in a state of proactive preparedness rather than reactive uncertainty.

Longer lead time parts can now be purchased sooner, and without the cost and stress of paying a premium to expedite them. In addition, manufacturing can plan their production line runs further in advance – allowing them to even plan for equipment maintenance if required, all while remaining on schedule to deliver finished product. Order errors can also be reduced by having a streamlined process and timely access to changes.

If, for instance -

• A company’s annual revenues are $50M
• The cost of goods sold (COGS) are 40%, or $20M
• The integration and implementation of PDM to the corporate PLM or ERP system will cost $70K
• Implicit costs such as training time and more are estimated at $50K
• As a result, order errors can be reduced by 2%, or $400K per year

ROI = ($400K – $120K)/$120K = 233%

That’s a solid amount of value, and this example only factors in the conservative 2% I’ve used for order errors. When calculating the on time delivery schedule of manufacturing, and removing the cost of component expedite fees charged by suppliers then the ROI improves.

What benefits have you and your company experienced in purchasing, manufacturing, or engineering as a result of application integrations?

Aras has literally enabled its user community to find value in nearly every aspect of product lifecycle management. How? By being different – by providing core open source capabilities to capture best practices, to improve or create an enterprise change process, to bring much needed visibility to the product development process, team collaboration – and much more. Aras is making a noticeable impact to the user community. Just ask those that presented at this year’s event; Lear, Insitu (The Boeing Company), Ceradyne, Maxion Wheels, and Getrag. Aras’ open source model allows users to deploy as much or as little of the core functionality as they need depending on their requirements or readiness level.

Aras Innovator is a flexible and intuitive solution that can augment your existing environment, be the de facto standard for your PLM needs, or something in between. In some cases it’s being implemented in phases, or is a driving force for a company’s evolutionary approach (to use core functionality and custom develop on top of it to provide company specific capability).

Whatever the case may be, it’s clear that Aras Innovator is a value enabler. It is a delivery mechanism for corporate-wide process improvement. The future is bright for Aras; its partner and user communities are contributing insightful technology to complement existing Aras Innovator capabilities. The highlights included the availability of multiple CAD connectors, reporting tools, CMM inspection technology, AML to XML programming capabilities, integrations to Excel, Word, and Outlook, EPDM for EPLM, and Alcove9’s deep enterprise search embedded within Aras Innovator.

As reflected in their product name, Aras is an innovator. They are leading the way for a paradigm shift in PLM. Not only by being open source, but by incorporating their clients’ input into future product releases.

Next up for Aras is:

• Configurable multi-CAD
• Improved file conversion
• Requirements document management (with its own lifecycle states)
• Multi-browser capability
• A drag and drop interface builder
• Tighter integration to tools like Microsoft Word
• Application lifecycle management (ALM)
• Manufacturing process planning
• BOM comparison tools
• PLM mobility for smartphones
• Aras Spectrum (cloud based PLM!)
• Social PLM for company-wide consolidation of social content related to product development projects.

As an Aras partner, I look forward to contributing to the paradigm shift and seeing how the community will continue to benefit from the openness and flexibility of Aras Innovator as a robust PLM solution.

As companies and their products evolve to address new market opportunities and global pressures, their business systems inevitably need to evolve as well, or at least work together. To become, or remain competitive the information accumulated in CAD, PDM, PLM, ECM, ERP/MRP can no longer exist as islands of data. Bridges need to be built to connect these islands of data for the sake of time efficiency, cutting costs, and improving product development times – just to name a few. Enterprise application integrations (EAI) improving product development times has a direct correlation to speeding up the availability of new products to the market.

If, for instance -

• A company’s annual profits are expected to be $50M
• The introduction of a new product will account for 5% of annual profits
• A bi-direction integration of PDM to the corporate ERP system will cost $40,000
• The EAI will provide timely access to data improving new product to market by 2 weeks

($50M * 5%) * (2/52) = $97,500; ROI = ($97,500-40,000)/$40,000 = 144%

Over the course of the first full year the ROI is calculated at 144%. That’s solid value. When factoring in the value the EAI has on other new and existing products then the ROI can improve exponentially. Timely access to critical information is a key element to corporate success and continued growth. It’s clear that EAI plays an enormous role and it seems it will play an increasingly larger role in the years to come.

Has your company integrated its business applications? If not, is EAI in the plan for the next 3-5 year? If so, what value have you experienced from it?