The Value of Value

January 23, 2009

Implementing PLM solution components should not only focus on the transition of As-Is processes to To-Bo. Many companies forget that the real improvement drivers should be ‘Business Value’. In converting As-Is processes, Business Value must be the key driver. Too many we times we observe companies that embark on a journey of which there is no end. The project just lacks focus on business value and without this focus you end up with ‘improved’ processes that help you do the same things faster (or faster wrong). It is my experience that an initiative without a value focus will at some point in time become a discussion what this new PLM technology and its implementation effort actually brought.

To overcome this sub-optimal start, companies should really do an assessment to discover drivers and motives to implementing different PLM solution components. I would call this a kind of Solution Value Discovery (SVD). This SVD basically is the discovery of motives and goals for…. for example PLM. Working with companies you discover many areas of improvement potential. A category of areas may not benefit from PLM per se, because it is concerned with doing the right things right. Let me give an example.

A Company we worked with had a series of ‘Stove Pipe’ processes. Its operational goal concerned a better integration of these processes as it would reduce the risk of program slippage. A single source of information for all key disciplines would enable a more lean process and at the same time an increased  ‘group’ effectiveness. Also better management of schedules was identified a key benefit. A single PLM solution component on its own would not solve process silo challenges. Our recommendation was also the installation of a corporate ‘processes owner’ and for this official to define the ideal ‘To-Be’ starting point and from that point onward start to plan for specific PLM solution components to driving the operational goal….. ‘Reduce Program slippage risk’.

The About page has a form to contact us should you like to know more about these concepts and how this may apply to your operations.

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