1. Product Lifecycle Management (PLM) Organisational Strategy –Need for structural change –IT tools –Increased integration (rather than “point solutions”) Provide targeted tools for SCM at various stages in the life cycle of products SCM is initially geared for planning / execution with existing products Not sensitive to life cycle Volvo: to enable better global coordination in manufacturing process planning.

2. SAP web site Bring products to market quicker with better designs –Postponement, more resilient etc… Support collaboration between: –Internally: marketing and sales, planning and production, procurement, and maintenance –Externally: partners, suppliers, contract manufacturers, service providers -- even customers Allow the management of new assets, environment, health, and safety requirements Allow integration between mysapERP, mysapSRM, mysapCRM and mysapCRM!

3. Components Specification data sheets Document management –Structured repositories Complex authorization system Partner work areas –Eg: suppliers (for bidding stages) Workflow and status management Connection to backend systems (BOMs, suppliers files, asset registers etc…)

4. PLM Stages Plan Define Build Support …. Imagine this in the context of a portfolio approach –different products at different stages –Different information needs –Different partners / emphasis Imagine the IP problems too.

5. Plan – Innovate and spec. Up to 80% of product costs are determined in the very early stages of life cycle Collaboration tool for multinational projects Bring stakeholders at an earlier stage –Cost saving adjustments –Investigation of variants –Exit strategy –Increase speed of development Reduce unnecessary changes during product life cycle Allow asynchronous work and ensure security of data Support global development teams

6. Define – Develop and Validate Computer aided design Common repository of customer requirements Real time validation / compliance Simulation of performance –Enormous reduction in cost in comparison with physical prototyping Computer aided development of production tooling –Optimised routings –Accurate projects of cost per unit

7. Build – Produce and deliver Translation of design of solution into manufacturing execution (traditionally disconnected) Less structured task because more dynamic and diverse –Many competences (quality validation, process improvement, plant design, resource management etc..) Greater continuity, collaboration and cohesion in the on-going improvement of products

8. Support – Service and Sustain Close the loop: Connect front line staff with early planners Communicate new/changed requirements Check if predictions are true Learn for next release / new products Involve all partners in process Manage a complete portfolio of products Knowledge management across sites, competences and across systems (ERP, SCM and CRM)