Plm Is A Key Enabler To Cpg Growth Meat Conference May 2012 Final
1. Product Lifecycle Management is a
Key Enabler to FoodPerry
Chip & Beverage Growth
Food & Beverage CPG Director
Presented at the American Meat Institute
May 2012 Annual Conference
2. Agenda
• Kalypso introduction
• Key F&B business trends
• Product Lifecycle Management defined
• PLM business benefits
• PLM tour – what are all the capabilities?
• At the core is the Product Data Record
• PLM Justification
• Questions
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3. The Kalypso Difference
Kalypso is a consulting firm focused exclusively on innovation.
Our people are leading business professionals who combine experience
in select industries with product and process innovation expertise.
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4. The Innovation Engine
Our services are designed to help companies become more innovative
and provide a systemic view of new product & service development.
Business Innovation Strategy
Front End of Portfolio & Pipeline New Product Value Realization
Innovation Management Development Execution
Business Intelligence & Analytics
PLM Technology
Leadership & Adoption
Intellectual Property Management
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5. The State of F&B in 2012
Simultaneous collaboration and competition
Innovation as a basis for competition and growth
A dearth of big ideas and breakthrough products
Increasing merger and acquisition activity
New laws mean new challenges
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6. What We’re Hearing
― Existing specifications hard to find
Packaging & artwork oversights causing
product launch delays, recalls
No visibility into which products to grow or kill
Compliance teams resource-constrained
Traceability!
Approval for product changes takes too long
Ineffective leveraging our partners
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7. What is PLM?
Product Lifecycle Management (PLM) is comprised
of standard processes, people interactions and
enterprise information systems that enable and
integrate product development capabilities.
PLM enables the efficient management of product-
related data and helps companies address product
compliance, R&D productivity and time to market.
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8. Demand for PLM
PLM matured in the discrete manufacturing industries of
automotive, aerospace and high-tech, the major vendors are
still adapting their solutions for CPG, F&B and Life Sciences
PLM
Maturity
Industrial High Tech Medical CPG, F&B, Personal Life Sciences Services
Device Care, Household
Established Industries Growth Industries Emerging
“Second wave”
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9. How Well Do You Manage
Your Product Development Data?
Critical product data grows exponentially as ideas become
concepts and finished products enter the market
Idea Concept Product Finished
Development Product
= product data clusters
Product
Conceptual Early Development/
Data Design Data Manufacturing Data Production Data
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10. PLM strategies must support
design for value and
collaborative innovation while
protecting consumer safety.
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11. What Market Leaders Do
Invest in strong Collaborative design / communication tools
PLM systems
―Sandboxes‖ for ideation
Incorporate searching capabilities
Amass libraries by function / need
Incorporate ―tribal knowledge‖ into their systems
Transfer technology quickly & effortlessly
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12. PLM Defined for F&B Industry
Manufacturing Data Product Development Data
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13. Portfolio & Pipeline Management
Governance structure & decision making processes that align
business strategy with development investments are known
as Portfolio & Pipeline Management. These processes ensure
a closed loop to increase return on innovation:
fills the pipeline with
promising ideas
links market need to ensures that strategy
front end innovation enables development
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14. Portfolio & Pipeline Management
Manage portfolio and investment allocation
for breakthrough products
Breakthroughs
Breakthroughs
New
Platforms
5% 15% Support
20% Support 35%
40% New
Platforms
Extensions 25%
35% Extensions
25%
Average Company Innovative Company
Example Product Mix Example Product Mix
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15. Packaging Artwork Management
Packaging Artwork Management (PAM) systems are the
people, process, tools and data that design, create and
manage package labeling
The people, knowledge
Processes that deliver People and skill sets that
bring packaging
repeatable results and
ensure a high level of Process innovation to life
quality without
PAM
redundancy and rework
of packaging artwork
Software tools that
Tools support business
Packaging data and Data processes by enabling
the packaging design
digital assets stored in and development process
a centralized location to
ensure global standards
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17. Product Data Record
The single version of truth
for a company’s product
and product-related data
The biggest PLM benefits come
from integrated information
and work processes
• critical information
• logical data model
• well-defined set of relationships between data elements
• traceability back and forward from any lifecycle state
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18. The Role of the Product Record in the
Management of Product Data Lifecycle
Authoring tools and PLM systems are used to build the Product Record.
The final life-cycle state of products in the Product Record feed ERP’s
Master Data.
Ideation/Development Management of Change Production
Creative World Iterative World Transactional World
Formulated Products – Product Lifecycle States
Define Design Evaluate Complete Validate
Search, Commercial
Criteria for Formulate & Select Master Data & Master Data &
Model & Screen Scale
New Formula Prototypes Final Publish Draft Publish Final
Formulas Production
& Ideate Formula Product Spec Product Spec
Authoring Tools
PLM Backbone ERP
Idea Experimental Data Regulated Data Production Data
Samples & Prototypes Finished Product
Experiments
• Entry in Authoring Tools Concept/Design Approval Product Development
• Creation of the data Promotion to Regulated State Promotion to Manufacturing
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19. Product Data Life Cycles
PLM captures and structures the iterative design work which results in
final product specifications, enabling reuse.
Ideation/Development Management of Change Production
Creative World Iterative World Transactional World
Product & Pkg. Dev. Product Record DBOM PBOM
R&D Manufacturing
1. Preliminary Stage 2. Prototype Stage 3. Pilot Stage 4. Production Spec
No change control – Change control – Change control – PLM hands off to ERP –
Iterative work Draft spec Pilot approved spec Production approved spec
Authoring Tools
PLM Backbone ERP
Idea Experimental Data Regulated Data Production Data
Iterative Formulas & Prototypes Finished Product
Packaging Concepts QA QC
Creation of the data Lifecycle Management of Data Production Data
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20. PLM justification is most
effective when focusing on a
benefits case and not a
traditional business case.
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21. F&B Justification for PLM
Consumer Insights Drive insights into product development
Product Data Product specification management
Management
Regulatory Quality, safety, traceability, compliance
Major Efficiency
Packaging, artwork & labeling alignment
Opportunity
Configured
Commercial Solutions
Need for tailored solutions
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22. PLM Justification
Operational Consumer Brand
Efficiency Safety Issues/ Leverage
Risk Management Through Faster NPD
Cycle-time reduction and Ingredients & regulatory- • #2 to market loses
Direct Material savings mandated warnings on the 25% of sales to #1
• NPD cycle time increase • Partnership with retailers
reduction — 40% • 51% mislabeling
• Sourcing savings — • 13% faulty packaging
P&G $45M/yr • 12 % non-compliant
• Time & Cost Savings — ingredient
20-30% • 11% operating
• Packaging, artwork, in-effectiveness
label scrap, rework
reduction $5M/yr
• 100’s–1000’s of
changes/yr
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23. Implementing PLM Technologies
Initiative
Monitor, track and Product
optimize your Packaging
NPD pipeline Process
Manage product
data efficiently
eliminating rework
Collaborate
internally and
externally
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24. Closing Thoughts
PLM is a foundational part of a company’s
innovation strategy and infrastructure
Results achieved have been transformational
Like ERP, poorly planned implementations
have led to well-publicized failures
Think big, start small, build incrementally
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26. PLM Assessment Biggest Gap – No Product
Specification System for Global Food Company
CPG Client “There is much manual work and where there is a human, there is an error.”
Formulation Local Databases/
Manual Applications Manual
transfer transfer
Packaging/Graphics Enterprise
Package Process Resource Planning
Label Text / Nutrition Specs Specs
Quality (Bill of Materials)
Label Text Quality
Process Instructions Specs Specs
CPG Standard
Authoring Tools PLM Specification Enterprise
System Resource Planning
Product Process Product Process
Packaging Packaging Bill of Materials
Quality Label Quality Label
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28. Design for value
Efficient product
development processes
Lean & agile product supply
strategies & resources
How PLM Can Help
Compliance & traceability to
meet increasing regulations
Integration with Social Media
Design-Based competition
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Notas del editor
Collaborative design / communication tools “Sandboxes” for ideation Incorporate searching capabilities Remember the failures (and why) One person’s failure may be the break through for another Amass libraries by function / need (i.e. suppliers, regulatory) Early reads before big spends Incorporate “tribal knowledge” into their systems Transfer technology quickly & effortlessly
PLM can help you Monitor, track and optimize your NPD pipelineManage Ideation, Development, and CommercializationManage product data efficiently eliminating reworkFind existing product data to increase reuseTraceabilityCollaborate internally and externally
The place where associates do work is where data should be housed to eliminate manual data re-entry