agile plm implementation and systems integration at sun microsystems

Innovation Execution - Agile PLM Implementation at Sun

David Burton, Director, PLM & PIMOracle Applications Development IT

Presentation given at PLM Conference at CERN, September 2011

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Agenda• Introduction• Sun PDM to Oracle PLM

Business Challenges & Drivers

• Oracle/Sun PLM Program Highlights

• Lessons learned

Innovation ExecutionInnovation is not just ‘new’ or ‘creative’…

“We like to think of an organization's capacity for innovation as creativity

multiplied by execution”

Vijay Govindarajan,Harvard Business Review

Innovation has an implied element of Innovation has an implied element of execution: execution: to truly innovate you have to take a new idea to truly innovate you have to take a new idea andand

implement itimplement it

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Innovation in High Tech CompaniesInnovative solutions are usually a combination of ideascombined with tools/systems and business processes

• Changes are often significant and enterprise-wide

• They need to be implemented jointly with the various business groups and IT

• Not “the business’s” full time job, so there is a limit to how much innovation/change can be consumed at one time…

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Challenges of Innovation

• Making significant changes affects many stakeholders – the bigger the change, the more stakeholders

• Different opinions about the need, solution, timing, etc.

• The newer, more innovative the solution, the harder it is to gain support

• Easy to overlook that change requires effort from end users to uptake

• Humans naturally resist change…

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Sun PDM to Oracle PLMIn the Beginning: Business Challenges

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Sun Business Challenges

Legacy systems were Product Data Management only• Not getting any benefits of PLM• Unsupported PDM systems caused

many offline, manual processes• Managed product data in Engineering

only:• Many manual processes and

workarounds• Limited or no functionality for anything

other than core PDM

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Data flowed mostly downstream into multiple hierarchieswith no Master Data System

• Lack of leverage of “Product Record” since no PLM tools deployed (Cost, Governance, Quality, Collaboration)

• Most information flowed downstream and was not pushed back• Engineering, Marketing, Configurator, Field Service worked in silos with manual

updates • Duplication of parts – 5+ parts for a single item

• 2 PDM systems (Servers and StorageTek) fed highly custom 10.7 EBS with many point-to-point interfaces (see legacy state slide)

Engineering Part Manufacturing Parts(Engineering part +

attributes)Marketing Part

RemanufacturedWall(Manual BoM

load) Service Part

CAD, PDM EBS 10.7

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Lack of standardization on PartNumbers and other schemesacross legacy departments• Design re-use and standardization of

components was difficult because of different part numbers between Sun Servers & StorageTek

• 2 legacy PDM systems systems with different versions

• 2 mCAD implementations were configured differently so couldn’t share/re-use all data

• 2 eCAD systems – can’t share parts• Aging internal systems – many systems

were 15 - 20+ years old

Where we wanted to go:Oracle Hardware Manufacturing PLM Business Drivers

• Consolidated, single source of truth and related processes

• Accelerate innovation and drive revenues

• Speed time to market and volume production

• Contain costs and focus resources

• Improve quality and raise customer satisfaction

• Leverage and protect critical intellectual property

• Streamline handoffs between definition & execution teams

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Reduce product costs throughout the product lifecycleReduce product costs throughout the product lifecycle

Our approach at Oracle

Support Innovation with Agile PLM

• Wanted to adopt standard industry business best practices

• Wanted to use the software as designed, avoid extensive customizations

• Wanted to implement in phases – start with core PLM then add functionality

• Realized we couldn’t swallow the whole elephant!

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Phased PLM Implementation Sequence Step-by-Step Rollout Mitigates Risks and Maximizes Returns

Step 1: • Replace legacy

systems• Add single

repository for product data

• New ECO process

Step 2: • Pass data to EBS

R12Steps 4:

Transformational EPLM

Steps 3: Getting to the

Yellow Curve

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Sun PDM to Oracle PLM:Phased Program Highlights

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Supply ChainManufacturing

FinanceEtc.

Legacy eBusinessSuite 10.7

Oracle/Sun Starting Point

StorageTek

SunExchange

InfoHWY

(PDM1)Sun PDM1MatrixOneSun Classic

mCA

Cad Data Mgr

mCADeCAD

OracleMFG

Integ-Ration(PDM2)

mCA

Cad Data Mgr

mCADeCAD

Sun PDM2MatrixOne

Supplier Data

AVLToolWW

AVL dbCSMi2

Supplier Data

Parts, Docs, Changes

BoMs, Files


BoMs, Files

AVL, BoM, Datasheets,

RoHS, Symbols

Parts, BoMs, ECOs,AVL (manual),

Metadata, RoHS

Total PNs: Unknown# PNs/yr: UnknownTotal Docs/yr: 37000Total ECOs: UnknownECOs/yr: ~1200 (2009)ECO cycle time: 20 days avgMCOs/yr: UnknownTotal Users: 2497 (both sys)

Total PNs: 60500# PNs/yr: 3300Total Docs/yr: 12500Total ECOs: 2490ECOs/yr: ~480 (2009)ECO cycle time: 30 days avgMCOs/yr: UnknownTotal Users: 2497 (both sys)

Plus:- Many P2P interfaces- Customizations- Manual work/interfaces…- Several external apps (Quality, Field service, configurator, etc.)

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FinanceEtc.


Phase 1 Scope – Consolidate the core

StorageTek

SunExchange

InfoHWY

(PDM1)Sun PDM1MatrixOneSun Classic

mCA

Cad Data Mgr

mCADeCAD

OracleMFG

Integ-ration

mCA

Cad Data Mgr

mCADeCAD

Sun PDM2MatrixOne

Supplier Data

AVLToolWW

AVL dbCSMi2

Supplier Data


BoMs, Files


BoMs, Files


RoHS, Symbols

Parts, BoMs, ECOs,AVL (manual),

Metadata, RoHS

Phase 1 replace2 MatrixOne PDMWith 1 Agile PLM

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FinanceEtc.


Agile PDX + Sun Exchange

FTP

PLM Phase 1 Topology

10.7Integ-rationAgile PLM

9.3

Supplier Data Parts, Docs,

ChangesBoMs, Files,

RoHS (self declare)AML (limited)

Third-party interim integration

CAD FilesEng BoMMetadata

* Red indicates new

EC Client

mCADeCAD

AVLTool

CSMi2


Symbols

Parts, BoMs, ECOs,AML, Metadata,

RoHS

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QualityField Service

MarketingFinance

Etc.

eBusiness Suite 12.1.3

PLM Phase 2 Topology – Interface to EBS

Agile PDX + Sun Exchange

FTP

AIA

D2R PIPAgile PLM 9.3

PC, PG&C


ChangesBoMs, Files,

RoHS (self declare)

AVLTool

CSMi2


Symbols* Red indicates new


RoHS

PIMEC Client

mCADeCAD

• Oracle AIA Design to release PIP (SOA Suite)

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MarketingFinance

Etc.


PLM Phase 3 Topology – Add Functionality

Agile PDXSun Exch or

other

AIA

D2R PIP


ChangesBoMs, Files,

RoHS (self declare)

• Replace Supplier portal• Add PCM• Add functionality & attribution


RoHS

PIMEC Client

mCADeCAD

AVLTool

CSMi2


Symbols

Agile PLM 9.3

PC, PG&C, PCM

PCM - Product Cost Management for standard cost early in Engineering

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MarketingFinance

Etc.


Oracle ePLM – Phase 4: End State

AIA

D2R PIPEC Client Agile PLM

9.3


ChangesBoMs, Files, AML

RoHS, Datasheets, Symbols

Parts, BoMs, ECOs,AML, Metadata, RoHS, Cost data

CAD FilesEng BoMMetadata

mCADeCAD

PIM

PQM – Product Quality Management for tracking Product Service Requests

PPM - Product Portfolio Management for managing product releases & projects

Agile BI – Business intelligence and analytics, dashboards

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20CONFIDENTIAL – ORACLE HIGHLY RESTRICTED

Program Timeline

DesignConfigure

Test

TransitionData Migration

Training/ Bus Support

Go-Live Phase 1

EBS 12.1.3 Integration Go-Live Phase 2

Phase 3 – PCM, PG&C Phase 4 – PQM, PPM

Mar2010

May2010

Jul2010

Sept2010

Nov2010

Jan2010

Jan2011

Mar2011

May2011

Jul2011

Sept2011

Nov2011

Jan2012

Mar2012

Clean CAD Data

UAT

Key Dates

CRP1 3 months

CRP2 4 months

CRP3 5 ½ months

UAT 8 months

Go-LivePhase 1

9 months

Go-LivePhase 2

12 months

Business Improvements (so far):

• Decreased avg. change cycle time ~25% from 25 to 18 days

• 38% higher number of Production ECOs:• 2009: ~ 1600• 2010: est. 2200 (1150

already since October Go-live)

• Since go-live, ~1400 distinct users on the system

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IT Improvements (so far):• Replaced 15+ year old systems on

unsupported platforms & consolidated onto Oracle technology

• Centralized access to product data across all HW platforms – “single source of truth”

• Standardized processes across all HW platforms

• Eliminated manual entry of CAD BOMs & manual dual entry of ECO data into ERP

• Phase 1 duration: 9 months, under budget

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Sun PDM to Oracle PLM:Lessons Learned

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Suggested Best PracticesDefine and execute to an

accepted roadmap• We use Agile PLM’s Advanced Benefit

Calculator:• 72 standard, recognized industry drivers

for PLM• Clearly ties business benefit to Agile

functionality

Manage your “System BOM”• All documentation checked in and

managed in Agile• Change Control Board (CCB) for all

requested system changes• Allows review and triage of all system

issues, enhancements and requirements• Ensures you are on top of all system

changes

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Critical Success Factors

Proven HeritageBuilt for collaboration across enterprise & product network since inception

Industry best practices– don’t reinvent the wheel

Start simple – add functionality in phases

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Clear mandate – Larry Ellison directive to accept changeClear mandate – Larry Ellison directive to accept change

Clear governance – Steering Committee with empowered Clear governance – Steering Committee with empowered representativesrepresentatives

Controlled scopeControlled scope – phased and frozen – phased and frozen

Industry best practices Industry best practices –– don’t reinvent the wheel don’t reinvent the wheel

Start simple – add functionality in stagesStart simple – add functionality in stages

Avoid customizations, point to point interfacesAvoid customizations, point to point interfaces