1. Introduction. 2
2. Key Business Values of SIEMENS. 3
2.1 Energy Management 3
2.2 Digital Factory. 3
2.3 Building Technologies. 3
3. Defining ERP and PLM Roles. 4
4. What is Bill of Material. 5
5. Bill OF Material Management in SIEMENS. 6
5.1 Types of BOM in SIEMEN.. 6
5.1.1 E.BOM… 6
5.1.2 M.BOM… 6
5.2. Need of BOM across PLM… 7
5.3 Process Involvement in Company. 7
5.4. Empowerment. 8
6. IT Investment Outline and Cost Dealing with PLM… 8
7. Single Source Management. 9
8. Summary and Opinion. 9
9. Recommendations. 10
9.1 Utilize PLM and ERP. 10
9.2 Clearly identify roles. 10
9.3 Make a clear integration capability decision. 10
9.4 Don’t sacrifice your real needs. 10
9.5 Integrate. 10
10. References. 11
Siemens is a global powerhouse focusing on the areas of electrification, automation and digitalization. One of the world’s largest producers of energy-efficient, resource-saving technologies, Siemens is a leading supplier of systems for power generation and transmission as well as medical diagnosis. In infrastructure and industry solutions the company plays a pioneering role
Head office location
Bavaria State Munich /Berlin
1847 (170 years ago)
Manufacture and sale of inverters for railway vehicles, information communication equipment, Power Generation technology, Water Treatment Systems, Fire Alarm, PLM software etc.
Peter Loscher (Chairman and CEO)
31,530 Million Euro
amount of sales
73,515 Million Euro
9,242 Million Euro
6,321 Million Euro
104,243 Million Euro
number of employees
2. Key Business Values of SIEMENS
Improving innovation performance provides strategic benefits resulting in profitable growth. To improve performance, business has to be done differently. Enterprise software is an enabler used to implement and sustain process changes that lead to better performance. In other words, new systems help to support new ways of doing things. Product innovation is a “team sport.” To accelerate and improve product development, companies are approaching innovation with more parallel activities, involving multiple departments earlier in design, working with experts scattered in disperse networks, and including input from suppliers, customers, and other third parties. To accomplish this, companies must have strong data management, collaboration, project control, and communication capabilities. Product innovation improvement comes from better information and improved coordination. Enterprise applications are providing the support for improved innovation performance.
2.1 Energy Management
Energy Management Division is one of the leading global suppliers of products, Systems, solutions and services for the economical, reliable, and intelligent transmission and distribution of electrical power.
2.2 Digital Factory
The Digital Factory Division offers a comprehensive portfolio of seamlessly integrated hardware, software and technology – based services in order to support manufacturing companies.
2.3 Building Technologies
Building technologies is the world market leader for safe energy efficient and environmentally friendly building and infrastructure.
3. Defining ERP and PLM Roles.
Not all companies have the same product innovation needs. Functional tradeoffs may be different based on industry, geography, and even corporate strategy elements. Not surprisingly, companies are using the different software suites in varying ways and amounts. There is no “one answer” to the way ERP and PLM are being deployed, meaning that companies have had to define the roles that ERP and PLM will play and how they will complement each other accordingly. Many companies struggle with unclear and ineffective roles between ERP and PLM. Confusion over terminology causes a lot of the trouble. There is no single definition of PLM and current PLM suites differ in scope from each other, which is typical in an immature market. Adding to the confusion, some ERP vendors list PLM as a module of their offerings.
Avoiding the acronyms, manufacturers must look for ways to improve product innovation, product development and engineering and then select the appropriate systems to support them. They need to be changed their products from other competitors’ products. Understanding real business needs helps to define the right role for each. Companies must determine the right support from PLM and ERP for their own businesses by educating themselves on the needs and benefits of improving their product innovation processes.
There is clearly room for improvement in the clarity and the effectiveness of the roles. Only one-quarter of respondents said their enterprise systems’ roles are “very clear,” and almost half of respondents said that the roles are not effective (Figure 1 and 2). Manufacturers must continue to educate themselves on PLM process and software capabilities and continue to refine the roles of their enterprise applications to meet their needs.
Effectiveness and clarity of ERP and PLM roles and Innovation
4. What is Bill of Material.
A Bill of materials (BOM) is an all-encompassing list of parts, modules and assemblies required to build, produce or repair a product or service. A bill of materials typically seems in a hierarchical setup, with the peak level indicating the finished product and the bottom level showing individual components and materials.
There are many types of bills of materials specific to engineering used in the design process and precise to manufacturing used in the assembling process. A BOM is a unified foundation of information use to manufacture a product or service. Generally, bill of materials comprises with the product code, part name, part number, description, specifications or features of the product, unit of measurements, quantity, etc.
5. Bill OF Material Management in SIEMENS.
5.1 Types of BOM in SIEMEN
With the comparing bill of material in company SIEMEN the company profile already fulfilled with two kinds of BOM mechanism.
1. E.BOM (Engineering Bill of Material)
2. M.BOM (Manufacturing Bill of Material).
Targeting complexity and Diversity of product development of the SIEMEN’s product engineering data joined together to organize and structure that data.
The E. Bom represents design engineering’s definition of product into well-defined and ordered hierarchy of objects. Each product sub-system, such as electrical, hydraulic, and other mechanical may require specific fields of information and their own data models and product structure. Even when company need more challenging, the E. Bom ‘s hierarchical BOM structure may need to change better fit the needs of manufacturing and assembly process.
The M. Bom reveals that results of complex data joining between objects and their realization in production. The combination of these potentially conflicting approaches between E.Bom and M.Bom must be supported in coherent overall production process in SIEMENS .
5.2. Need of BOM across PLM
Bill of materials (BOM) management over product lifecycle management (PLM) systems have a lot of paybacks, such as assisting compliance or decreasing the degree of scrap, defeat their competition to market, growing productivity, improve profitability, cost reduction, saving time, increase efficiency etc. Managing BOMs with the wrong strategies may cause product errors, delays and compliance failures. BOM management aids upturn the productivity in different ways, but four areas are particularly achievable for any organization; automation, collaboration, flexibility, and hierarchy. That is exact of all four of these types of BOM management over the PLM system does not force any one methodology on the product development lifecycle. It merely empowers organizations to use them if they so choose. Using PLM to enable a centralized BOM will already upsurge a company’s productivity, but inquiring into the degrees of a PLM system’s features, mainly in the beginning of the product development lifecycle, will parallel to productivity gains are surefire to be game-changing.
Erroneousness in a BOM management lead to problems such as If the wrong parts or wrong quantities of parts are ordered, a company will not be able to build enough product or any product at all. This leaves the company with unusable components that need to be returned or extra parts that tie up money in inventory. For manufacturing and operations departments that are already running lean, cleaning up these mistakes is a hassle that wastes time and money. Depending on the size of the original mistake, the amount of money lost could be large enough to impact the company’s bottom line.
5.3 Process Involvement in Company.
Contributing E.Bom and M. Bom data for multiple product configurations supports the foundation for product developers to interact with their processes. Whether that process contributes to iterating the definitions of the product design between model designers and CAE simulation analysis to optimize the solution, or it relates to designers and manufacturing process planers in validating manufacturability.
Because of Strong BOM management solution relates to its ability to empower new product development process and launch. The product data Structure and content together with a suite of BOM management tool functions for visualization, comparison and control., all contribute to enhanced decision making. Enabling timely decisions based on accurate information moves a new product launch forward meet expected product release schedule.
6. IT Investment Outline and Cost Dealing with PLM
Considering Nowadays Most of the product development companies face in growing challenge to their cost structure. Because of un affordable cost in company due to reduce their profit and causes to pulldown their market stability in un expectedly. So however,
Margins are shrinking due to increased raw material costs and rising transportation expenses.
Product development Leaders should be having great deal of idea regarding understand that a major E. Bom best practice is to explicitly record the composition of multiple product configurations as a single source data structure and work with it to define and manage dependencies, requirements and effects of change. In this context ” Single Source” does not imply only one physical file or even one location of all data. The Product changes are in Single Source if any one product configuration ”Knows” of existence of all other configurations and can access those variations when anyone who want to need to know without human intervention. This deals with traditional practices of using spreadsheets to structure product configurations.
Or Defining all configuration options overlapping each other in a single database, where human intervention is required to define and separate the pieces of one valid configuration from another.
7. Single Source Management.
Without proper technical tools to record and manage the definitions of the product configurations, numerous troubles can arise not only in engineering itself, but further downstream in manufacturing and product support.
For the highly complex products in SIEMENS company (aerospace and automotive transportation), the design and manufacture of product often outsourced to multi-tiered supply chain patterns. The control of differences in product configurations is left to human involvement.
There is an increased potential for errors to be introduced, leading to confusion downstream and lost productivity. Manufacturing Engineers may find disturbances and interferences between components that arise between configuration between untracked information, adding to corrective time delay.
8. Summary and Opinion.
The proper BOM management tools enables PLM across the enterprise. Each of the three most recognized best practices for dealing with product variants single source, process interaction and empowerment decision making. Rely on Strong foundation of BOM management mechanism enables capture visualization, and manipulation of product data needed during the development cycle for multiple configuration products, and is vital to assessing a product’s “Manufacturability and predictability”
9.1 Utilize PLM and ERP
Manufacturers looking to improve profitability and grow in the current, challenging innovation environment should investigate using PLM solutions in combination with ERP solutions.
9.2 Clearly identify roles
Identify which business processes will be supported by PLM and ERP, and define complementary roles that leverage the strength of each solution.
9.3 Make a clear integration capability decision
When deciding on whether to use PLM solutions, recognize the value of integration, including lower risk and integration expense.
9.4 Don’t sacrifice your real needs
When defining roles, understand the importance of the capabilities that each solution can offer and don’t sacrifice innovation for integration.
Integrate product innovation and execution processes and systems, including formal promotion and change management processes.
02Collaborative product Development Association 2010