Product Lifecycle Management (Volume 4): The Case Studies by Unknown
Author:Unknown
Language: eng
Format: epub
ISBN: 9783030161347
Publisher: Springer International Publishing
7 Results and Benefits Achieved
One of the unanticipated results of the PLM system was the evolution of our engineering change processes. When we started, we functioned as several engineering departments. Within a year or so, we had basically standardized our engineering change processes regardless of the division. Through working together, we developed and implemented best practices across the organization, which yielded a robust process that can be used by all divisions. Today, Viking Engineering uses the PLM system to schedule engineering resources as well as manage engineering projects. The system allows project team members to track the status of the processes related to their projects.
In 2009, the Viking Range PLM implementation was audited by an external organization. At the time of the audit, the implementation was about four years old and users were very comfortable with the new PLM processes. There had been several upgrade projects, several improvement projects as well as the implementation of some custom scripting to improve efficiency. As the implementation evolved over time, it was easy to lose sight of the total savings realized for the implementation. The audit attempted to retroactively baseline our implementation through old reports, interviews, and other artifacts. The results of the audit yielded $34,578,000 in savings through avoided costs either through new efficiency gained, or through projected savings in scrap reduction. The internal ROI for our implementation was determined to be about 7 years. Granted, it is very difficult to quantify cost savings on events that did not occur, but we do believe that the implementation has yielded many process efficiencies and capabilities which were not possible before the implementation.
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