mySAP PLM

Driving Product and Process Innovation through

Product Lifecycle Management

GBU PLM
SAP AG
 Agenda

What Matters ...

The mySAP PLM solution

Benefits of mySAP PLM

 SAP AG 2001, A Business View of mySAP PLM / 2

 Corporate Success has Three Pillars
The Business Value Disciplines*
Focus on relationship
benefits and long term
Still True in the customer value
New, New Economy: Customer
Intimacy
Successful businesses clearly (CRM)
excelled in one of the disciplines
and had to be at least industry
standard or better in the other
two disciplines.

Customer expectations are

constantly evolving – they now
expect excellence along all three Product Operational
Leadership Excellence
dimensions.
(PLM) (SCM)
Focus on providing leading Focus on production
edge products tailored to and efficient
customer needs at lowest management of the
costs extended supply chain
* Treacy and Wiersema, 1995
 SAP AG 2001, A Business View of mySAP PLM / 3
 What Matters

Innovation

Innovative companies are more
successful

Technology plus market innovation
counts

Focus on their strengths

Work in global virtual teams

Market

Successful companies have closer
contact to the market and to their
customers

Market leaders bring new products faster
to market

Fast market presence is driven by rapid
production ramp-up and fast product
positioning

 SAP AG 2001, A Business View of mySAP PLM / 4

 What Does This Mean for mySAP PLM

Integrated processes drive innovation and fast market positioning

mySAP Product Lifecycle Management Provides a Complete Solution

Design Production, Distribution Aftermarket

Service

Customer Relationship
Management

Supply Chain
Management

Product Lifecycle Management

First idea Start of End of Obsolescence
production production of product/part

 SAP AG 2001, A Business View of mySAP PLM / 5

 Agenda

What Matters ...

The mySAP PLM solution

Benefits of mySAP PLM

 SAP AG 2001, A Business View of mySAP PLM / 6

 What Does This Mean for mySAP PLM

Global virtual teams for new product development and innovation are based
on project management, knowledge management, and collaboration

mySAP PLM web-centric portfolio

management, development projects,
and collaboration folders

 SAP AG 2001, A Business View of mySAP PLM / 7

 What Does This Mean for mySAP PLM

Open, people-centric integration with mySAP PLM portals for

engineers, project managers, and asset operators

 SAP AG 2001, A Business View of mySAP PLM / 8

 What Does This Mean for mySAP PLM

Global teams need consistent master data in a heterogeneous environment

iPPE – integrated product and process engineering

Feature
Feature and
and Concept
Concept and
and
Functional
Functional Product
Product
Requirement
Requirement Design
Design
Structure
Structure Structure
Structure
Structure
Structure Structure
Structure

First Start of
Product Production
Idea

 SAP AG 2001, A Business View of mySAP PLM / 9

 What Does This Mean for mySAP PLM

Global teamsmaster
Consistent need consistent
data in amaster data in a heterogeneous
heterogenous environment environment

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Enterprise

R/3
R/3
R/3 Enterprise
Enterprise
R/3
4.0B mySAP PLM data replication
4.0B--4.6C
4.6C

 SAP AG 2001, A Business View of mySAP PLM / 10

 mySAP Product Lifecycle Management

PLM Solution Map, Edition 2002

Life-Cycle Data Product Structure Change & Configuration

Document Management Integration
Management Management Management

Asset Life-Cycle Technical Assets

Preventive Maintenance Work Clearance Management Work Order Cycle
Management Management

Program & Project

Strategic Program Management Life-Cycle Profitability Analysis Project Management
Management

Collaborative
Life-Cycle Design Quality MRO Supplier Enterprise Portal
Project PLM Analytics
Collaboration Collaboration Collaboration Collaboration Content
Management

Quality Management Audit Management Quality Control Quality Improvement

Product Safety /
Environment, Health Dangerous Goods Industrial Hygiene &
Hazardous Substance Waste Management Occupational Health
& Safety Management Safety
Management

 SAP AG 2001, A Business View of mySAP PLM / 11

 Agenda

What Matters ...

The mySAP PLM solution

Benefits of mySAP PLM

 SAP AG 2001, A Business View of mySAP PLM / 12

 Turning New Ideas into New Revenues
mySAP PLM Helps to Increase Revenues

Increased revenues

Develop more innovative products and explore new market

opportunities by exchanging ideas quicker

Capture higher market share by reducing time to market and

time to volume along with a close integration to supply chain
management and procurement

Keine fehlplanung,

Make the right decisions by sharing up-to-date information

with all people involved in product development,
procurement, production, and maintenance

 SAP AG 2001, A Business View of mySAP PLM / 13

 ROI for collaboration

ROI – 95% Decrease in unproductive ROI – 5% Additional available capacity

time due to meetings for orders
Meeting hours per year (30 engineers x 2 hours per Projects shipped per year 200
week) 3120 hours Average selling price per project $1.8m
Cost of unproductive meeting time (3120 x $90 Average profit margin per project 20%
per hour) $280,800 Increased revenue (200 x 5%) x ($1.8m x 20%)
Increased profit ($280,800x95%) $3,600,000
$266,760

ROI – 80 % decrease in engineering Total Collaboration ROI

errors due to miscommunication Decrease in meetings $ 266,760
material cost/error $500 Less errors due to improved
communication $ 998,400
4 hours assembly labor/error $300
Elimination of hardcopy
Total cost/year engineering errors
drawings $ 46,800
$1,248,000 Increased capacity due to
Total cost savings/increased profit faster time to market $ 3,600,000
($1,248,000x80%)$998,400 Total $ 4,911,960

 SAP AG 2001, A Business View of mySAP PLM / 14

 mySAP PLM Positively Effects Your Bottom Line
mySAP PLM Decreases the Cost Baseline

Reduced costs

Achieve lower cost-to-market by managing the cost of changes and

evaluating the progress of projects across product lines

Reduce maintenance costs and increase equipment availability by

providing up-to-date as-built and as-maintained information to
maintenance and service

Reduce total-cost-of-ownership through open infrastructure that

provides integration into CAD, SCM, SRM, CRM, and ERP

 SAP AG 2001, A Business View of mySAP PLM / 15

 Customer Value of Document Management

50% reduced costs for administration of archives

80% reduced costs for paper-based reproduction

80% reduced time for document search and access

50% reduced time for approval and change processes

Source: Siemens Medical Equipment

90% reduced time for (complex) document search and access

70% reduced time for approval and change processes

Source: Beiersdorf

 SAP AG 2001, A Business View of mySAP PLM / 16

 Every Company Needs mySAP PLM
Business Needs Call for Product Lifecycle Management (PLM)

Drive inter- and intracompany collaboration

Schindler: Distributes product information globally

“ Inemployees
our highly variable production environment, it's essential that our
be able to smoothly transfer engineering and customer
order updates across the entire enterprise.
(Source: Schindler, Switzerland)

Osram: Several divisions, one product

“ With mySAP PLM we now have the opportunity to leverage advanced

product development capabilities that allow for collaborative
engineering across different divisions within the company.
(Source: Osram, Germany)

 SAP AG 2001, A Business View of mySAP PLM / 17

 mySAP PLM is a Must Not a Nice to Have
Business Needs Call for Product Lifecycle Management (PLM)

Keep projects on budget and on time

Brose: Monitors projects from kick off to production

“ mySAP PLM […] enables Brose to control all expenditures and

activities involved in getting a series product to the start of
production (SOP) stage.
(Source: Brose, Germany)

Ensure legal compliance

Ashland: Manages environment, health and safety

“ SAP EH&S is a flexible, user-friendly and reliable product that

facilitates compliance with the regulations and legal requirements
that govern our day-to-day operations.
(Source: Ashland, United States)

 SAP AG 2001, A Business View of mySAP PLM / 18

 PLM Serves Many Industries
Business Needs Call for Product Life Cycle Management (PLM)

Easy access for occasional users

BASF: Better serve our users
“ mySAP PLM provides us with the ability to combine strong
asset life-cycle management capabilities with a state-of-the-art
enterprise portal. The combination of business content and
enterprise portal technology provides an ease of use that allows us
to broaden the user community of our mySAP PLM soluton to better
serve occasional users.
(Source: BASF, Germany)

Allow for asset and maintenance management

Securit: Excel at maintenance operations

“ We achieved a reduction in asset downtimes from 5.0% to 3.1% in 5

months - a reduction in malfunction time of 40%. This helped to
increase production levels by 10%.
(Source: Securit Saint Gobain, France)

 SAP AG 2001, A Business View of mySAP PLM / 19

 Differentiators That Matter to Customers

Reasons Why Companies Pick mySAP PLM

Fosters value networks

Collaboration platform

SCM, CRM, SRM, and ERP integration

Holistic, end-to-end process view

Product development

Production ramp-up and
product change management

Maintenance management

Merges technical and business worlds

Independent of CAD system

Information distribution to
manufacturing

Supports decision making

PLM analytics

Enterprise portals

 SAP AG 2001, A Business View of mySAP PLM / 20

 mySAP
mySAP PLM enables
your company to get
the right product to
market at the right
time,
time, at the right cost -
resulting in increased
profitability and
competitive advantage.

 SAP AG 2001, A Business View of 

mySAP
SAP AG
PLM2002,
/ 21 Marty Homlish 21
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