The EAC Product Development Operating System is a framework that is based on three attributes of the product development system: that it is a competitive system; that its operation requires team-based participation from a broad range of contributors across the organization; and that it changes, evolves or decays, over time.
Many product developers have limited direct contact with their customers or their marketplace and lose sight of the competitive nature of their work. The rows of the PDOS matrix represent the three elements of a competitive system in the context of Product Development. Companies that look to capture the benefit of a competitive advantage from their product development competency cannot do so, without also addressing the needs and requirements of competitive systems.
The concept of teamwork in Product Development is well recognized and valued as a key to effective and efficient operation. Many will immediately think of the cross functional team that executes a project in adherence to an organization’s product development process. But as our model takes a systems view of which the process is a constituent element, our conception of the system team is higher level with the project team just one element of it. Product development system excellence is dependent upon individuals and teams in each hierarchical tier of the organization. These are responsible for supplying input to other subsystem elements of the model essential to these other subsystems’ effective operation. Our model represents this system team element as the columns of the PDOS matrix. These pillars of the system are labeled both with their functional role within the PDOS and with the tier of the organization responsible for that role.
The third attribute of our operating system is that it is dynamic. Without the investment of maintenance or improvement energy, entropy will degrade its structure and operation. On the other hand, a commitment to ongoing improvement will facilitate maturing of the system and carry it through the four levels of our maturity model. Our maturity model includes a system improvement tool that not only accelerates the rate of maturing but also damps the organizational turbulence often characteristic of transitions to a new level of maturity.
The subsystem elements of our model exist in the cells of our matrix. The relative strengths of these elements vary during progress to full maturity; at full maturity the seven elements interact in harmonic balance.
Three elements of a competitive system:
Our most visible competitive systems are sports franchises, and the keys to their success are instructive for business operation:
- Successful teams start with getting on the same page, literally. The team’s knowledge is captured in carefully guarded Playbooks and Game Plans. Everyone understanding the common goal and their role in it is a key to success. Successful, systematic businesses operate with shared goals that are captured in long term strategies, shorter term initiatives, and near term tactical plans.
- Teams invest time and energy in becoming more capable of competing well. The clearest example of this is practice, time spent working on improving the individual and collective skills that are brought to the competition. But the improvement to competence also includes improved infrastructure, equipment, anything that better positions the team to compete. Do businesses generally make this investment in planful improvement to their product development competency with the mind’s eye on the competitive nature of product development?
- And finally there is the competition itself. For teams the competition is head to head, and the metric is clear and clearly displayed on a scoreboard. In product development, the competing occurs in the execution of a program or project. The ultimate metric for product development is its productivity, total value created against the total investment made in creating this value. Execution of a project is the game, execution of the portfolio’s roadmap is the season. The ultimate competitive nature of product development is frequently lost in the common check-box nature of administrative project management.
The rows of the PDOS matrix:
In the EAC Product Development Operating System model, the rows represent the three elements of a competitive system. The Information row establishes the knowledge that must be shared – strategy, initiatives, tactics, process workflows – among all product development team members to create common goals and unify efforts. The Preparation row focuses on the improvement efforts that raise the level of corporate competence. And the Project row is where it all comes together, where we execute the game plan and compete.
Pillars of the System:
The columns of our system represent the pillars of the PDOS. Each pillar has two identifiers; the Product Development sub-team associated with that pillar and the focus of the contributing work done by that sub-team within that pillar.
Knowledge Base:
Knowledge is the Value currency of Product Development, and the PD Knowledge Base supports and glues together the other PD operational subsystems. The PD Information System, beyond housing data and information that serve as the building blocks of PD knowledge, also holds standards, transactional processes’ workflow, and functional tacit knowledge shared between project teammates. PLM has emerged as the critical PDIS tool.
Strategic Planning:
The work that culminates with a successful new product being delivered to market initiates with the development of a Strategic Plan. The compass heading provided by the plan informs decision making throughout the organization, including within the other PDOS subsystems. Critical decisions regarding the investments in the development of core and other competencies, as well as of new products align to the strategy.
Innovation (New Knowledge):
The Innovation subsystem elevates the competitive capability of the organization, its competences. It creates new knowledge in the form of disruptive technologies and novel methods of applying current technologies. It focuses on challenging all existing organizational standards, looking to continuously improve how it operates, and to compete in the marketplace from a position of greater strength and competitive advantage.
Expert Workforce Development:
In any competitive venue, it is understood that success ultimately relies on having great players. The competitive performance of your players is developed outside of the bounds of the competition itself. The intention of, commitment to and execution of investing in all of your product-development-critical subject matter experts – your assets –not only directly results in a more competitive team, but facilitates the recruitment of additional skilled players.
Investment Strategy:
The actual marketplace competition fulfilled by product development begins with strategic decisions about how to execute the product roadmap and elaborate the product portfolio. The informed decisions that lead to the significant investments incurred by product development create both the range and limits on profitability and corporate growth over the mid-range future. This late maturing subsystem determines the level at which you’ll compete.
Knowledge Based Decision Making:
The Knowledge Based Decision Making subsystem is the Product Development sibling to the executive function’s Fact Based Decision Making. While KBDM permeates successful Product Development organizations, in the actual competitive venue of development projects, the critical decisions that are captured as the product Concept are informed by pre-existing and newly generated knowledge of the marketplace and of corporate capabilities.
Project Execution:
The Project Execution subsystem is the part of the Product Development System that in the most narrow of views is seen as Product Development. The realization of the expanded view of the Product Development System does not diminish the critical importance of execution. Supported by new execution paradigms and product development specific information technology tools, longed for improvements in project predictability and reliability are now being achieved.
Tiers of the Organization:
Each of the three tiers in the organizational hierarchy – the executive, the managerial, and the individual functional specialist tiers – makes critical contributions to the effective functioning of a fully developed product development system.
Functional Roles within the PDOS:
The Product Development System Team comprises members in the executive, managerial, and individual subject matter layers of the organization. Each tier of the organization contributes to the effectivity of the system:
Executives set strategic direction, including the investment strategy for product development.
Directors and managers are guardians of critical product development knowledge and responsible for seeing that the right knowledge is available to the right individuals at the right time.
The functional specialists, subject matter experts generate new knowledge and use this and pre-existing knowledge in the execution of product development projects.
Maturity Model:
The EAC Maturity Model is a four level model that distinguishes the degree of structure and organization in the product development system at different periods in the evolution of the competency. The four maturity levels are:
- Tribal & Heroic
- Silo’ed
- Systematic
- Intelligent (self-managing)
System Improvement Tool:
EAC recognizes the value to both the rate of maturing and the ultimate level of maturity that is provided by a well ingrained root-cause problem solving system. The best of these are based on the PDCA cycle, also known as the Deming Cycle. Developed at Bell Labs in the early 20thcentury, and introduced to Japan in the wake of World War II, PDCA played a significant role in the rapid recovery and rise of Japanese industry. A particular version of PDCA was developed by Allen Ward, modeled on the way PDCA is executed at Toyota, and tailored by Ward to suit the way Americans prefer to work.
There are a lot of things in life we as humans seem to put on autopilot. We seem to do things the same way, around the same time, even sometimes in the same place. Despite our best efforts to be different, we find ourselves thinking, behaving, and feeling the same way we did yesterday and the even days, months, and years before that. It’s time to challenge your ways.
Look at the way you do things for instance.
If you’re anything like me, you have routines for almost everything you do, from the time you wake up to the time you go to work. We often get so accustomed to how we do things, finding the reasons why we do them becomes a challenge. It is easy to overlook our other options if we fail to recognize the benefits of change. It is this very mindset that holds us, and the rest of the world from reaching our full potential.
Aside from personally challenging our ways, we should also be challenging our business processes.
It is my belief that companies, more than individuals, tend to do what they’ve always done. We become comfortable in the systems we know, the methods we have created, and the processes we have established. This is when we fail to recognize opportunity in organizational change.
Although the concept of change can be frightening for some the reality is, success doesn’t originate within our comfort zones.
If we never reevaluate or challenge the way we do things, how would we ever get better? I believe the answer is, we wouldn’t. As the quote often attributed to Albert Einstein states, “insanity is doing the same thing over and over again and expecting different results.”
We must acknowledge our propensity to build repetitive cycles in order to successfully grow our businesses, change and be different. After all, change is the vital element for both success and survival.
With the rapid advancement of technology our world is changing more than ever.
This means our organizations must quickly change, too. It is crucial that we optimize our business practices by looking at our operations and leveraging the resources we use to get things done. In order to grow and prosper, we must recognize our patterns and learn how to change them.
Taking an engineering department for example, your in-house staff may know your business or a particular CAD (Computer Aided Design) package, but are they experts at prototyping, simulation, electronics, and new materials? This is example is where utilizing a fresh perspective could more than benefit your company.
Now look at the systems your company currently depends on.
The methods by which you currently transfer documents, communicate through departments, and transmit information. These are the systems we ultimately forget to challenge. As we become comfortable in our ways, we forget our competitors might be challenging theirs. You might think to yourself.., ‘So what if our department communication may not be the most efficient process’ , but what if speeding up communication would bring your cost down by up to 10 percent! What if your communication systems boosted your competitive advantage, and ultimately accelerated your time to market? These everyday, repetitive processes are what I am challenging you to re-think.
Organizations benefit from change.
A change within an organization results in new ways of looking at customer needs, new ways of delivering customer service, new ways of strengthening customer interactions and new products that might attract new markets. But what many fail to realize is that many of these are driven from internal practices.
If you can imagine the kind of businesses that will all be able to help you improve the products you’re making, then you can see a world where people are able to find a lot more success.
Change is what allows us to explore new opportunities, learn new skills and exercise our creativity.
If nothing else, I challenge you to be fearless in the pursuit of what sets you and your solutions apart. I challenge you to re-think your ways and become the best you can be.
First things first, lets address the elephant in the room. Any engineer or designer reading this article, at some level, is having the same thought.. “Why would I hire an engineering design firm to assist with an engineering project? I don’t want to replace myself.”
To that I say – no one is trying to replace you. Or your job. Let’s look at it from another angle.
Engineering and design firms want to help the client in whatever capacity they need. They’re here to assist existing engineering teams, not replace them.
If you’ve been overwhelmed with the tasks on your to-do list, then it’s probably crossed your mind that you could use the help but are afraid to ask. You are already getting s#*t done but don’t want to fall behind just because you’re in your busy season and there’s a billion things to do. By convincing your boss to get assistance with an engineering project, you can free up your time to focus on major projects that you and your team have already began while giving the projects that you have put on the back burner to another team that can help you get it done in time.
Many engineering service providers want to help you. Convincing upper management to take on the task of hiring outside engineering services may be easier than you think. You just have to find the right strategy to go about it. Here are some tips to help you get what you want.
Do Your Homework
Prioritizing which projects you plan on executing in-house and which ones you want to outsource is a good place to start. You should be researching what your options are for outsourcing – most likely your company has already partnered with an engineering services team in the past that will work with you to get your projects done. If not, then you should be prepared to do a little research on who you plan on outsourcing to.
Your team is already doing an awesome job by hitting your goals and overall getting things done day to day – an engineering services provider is just an additional team to help out while your team is in a bind for time. You should always be able to have some convincing material to help you answer this question: “How is my proposal going to help my boss achieve his or her goals?”
Just remember that you’re trying to make less work for your team with your proposal – so make sure that you’re pointing out exactly how outsourcing will work for your engineering project and for your team. Your boss will be more likely to listen to you if you’ve done your homework and are willing to give him or her a few solid options.
Highlight the Benefits
Most likely your team already knows the benefits of outsourcing, especially if you’ve worked with an outsourced engineering team before. Highlighting the benefits of outsourcing is even more essential if you’ve had an outsourced project go sour in the past. Make sure you have 2-3 major advantages in mind when bringing up the proposal to management. Examples of advantages should include the cost savings that would incur (the number one factor why companies choose to outsource even when they already have an engineering team) and always make sure to focus on how outsourcing the engineering project would benefit the consumer.
To be more persuasive, make sure you bring up anticipated disadvantages as well. You wouldn’t want to leave your boss with any surprises, would you? If there ends up being any focus or major concerns about these disadvantages, then bring up preemptive solutions. A back up for your back up plan, if you will. For example, if you expose the possible risk of leaked confidential data while outsourcing, then you should also have a plan to mitigate the risk. This should help you to be more convincing in the fact that you thought this through with realistic expectations.
Propose an Un-committed Commitment
You don’t have to make it seem like it’s a die-hard commitment if you know there will be hesitance in the proposal. If you know your boss is precarious to situations that involve a little risk, then you can explain that outsourcing this project can act as an experiment going forward. You can reassure management that your team will analyze the results of outsourcing to a third party so that you can weigh out the advantages and disadvantages of working with that specific engineering team in the future. Ensuring your boss that he or she is still in control of the outcome will put their mind at ease.
The other important take-away of hiring an engineering services provider is that it can be on an as-needed project basis. If you present your proposal to your boss and emphasize the fact that it is not a permanent arrangement, then you will have more elbow room for your other points. Your boss cares about getting things done and keeping costs down – remind him or her that hiring an engineering services provider would add capabilities to your team during a busy season without adding permanent overhead. Remember you are adding the services as an extension of your team, not having the provider take over completely.
Present Proof of Success
How has success been measured with the outsourced engineering team in the past? Which types of projects does the company have the most experience in? Don’t think that your boss won’t ask these questions. Simply, point out who outsourced what and how it worked out for that company. Consider finding an outsourcing example with the company that is similar to your own project that you’d like to outsource.
If you’re looking for ideas you could show to upper management, you could show them a case study on faster time to market or a case study on keeping up with client demand.
It may even be a good idea to get a free project scope if the company offers one before you bring the proposal to your boss. If you’re confident with your proposal, then you’re ready to talk to your boss.
Of course, there are times where you think your team can take on the world no problem because well, you’re that good. But most of the time it is about much more than handling multiple projects at once. It’s about making sure the job gets done without compromising quality and the reputation of your brand.
Have you ever over-committed and realized at a certain point that it was too much for your team to take on? Without finding a solution would mean under-achieving on tasks just so that you and your team could get everything done. Let’s face it – the working memory of human brain has a limited capacity. In fact, only 2% of the population is actually proficient at multi-tasking.
So why waste your time trying to beat the odds? Here are 3 reasons why you need to stop taking on too many projects.
1. It’s a Sign that You’re Not Delegating your Tasks Appropriately
Stop doing everything yourself and let others help you. Delegating your tasks to those that have the time and expertise to do so will help you eliminate the risks of under-performing on projects.
It’s important for us to realize that we can seek help when it is needed. We can’t always do everything ourselves. It is better for you to let someone take over some of your tasks so you can focus on your most important tasks. Instead of wasting your time trying to figure something out yourself, let the experts help you.
Manufacturing and Product Development departments are turning to Engineering Services offered through small to medium sized companies and handing off projects to engineers outside of their own business to meet time-sensitive deadlines.
2. It’s Intensifying Your Time Management Problem
If you’re already past the point of planning ahead, then you can still manage the time you have left by dividing your remaining tasks into manageable goals. The plan is to increase productivity in the long run by finding ways to save and manage the time you currently have. Finding a long term solution for time management will result in working smarter, not harder.
Time management is not something that everyone is great at all the time. The important thing is to recognize when you are having a hard time and seek out the appropriate solution.
3. It Means that You’re Not Prioritizing your Projects
Determine what the optimal number of projects is that you should be managing to ensure appropriate planning and strong execution and control. You should be spending 75% of your time and effort on the projects within your team that are top priority. The other 25% of projects should be assigned to those that can take on the project with minimal interjection on your part.
Eliminate a chaotic work environment by handing off the lowest priority tasks to others and gaining back control of your highest priorities.
Why you should turn to EAC’s Engineering Services Team
Our Engineering Services Team at EAC Product Development Solutions – coined the Extensioneering Services — work with manufacturers, academic institutions, and engineering and design organizations throughout North America. Our engineering experts are located in Burnsville, Minnesota and are working around the clock to ensure they deliver engineering solutions that exceed our customer’s expectations.
Delivering quality work is a critical part of maintaining the trust of your customers. Our engineers leverage years of experience and deep knowledge of engineering disciplines to provide you with fast, high quality, and innovative design services. EAC has completed more than 400 projects over the last 20 years. We take pride in our ability to adapt to the ever-changing technology landscape to provide innovative solutions to our customer’s problems.
If you’re leading a team that could use some help, fill out this form to receive a free project scope.
Managing a new enterprise system can be a daunting task. It can test your staff’s knowledge bases and affect the top and bottom line of your business. That being said, many companies have invested in some sort of PLM or PDM tool (learn more about what ERP, MRP, PLM, and PDM are in this post). This post is for everyone that has invested in a PLM/PDM tool and wants to make sure they’re getting the most out of the investment.
Here are five signs it is time to invest in PLM consulting.
1. You use your PLM /PDM system solely for data management
Many people purchase PLM (Product Lifecycle Management) systems and struggle to use them to their full potential.
They relegate these amazing systems to simple file vaults.
But, they paid for so much more.
If you’re implementing a PLM tool and use it as a data vault, you’ve essentially taken on 100% of the investment to recognize 20% of the benefit.
Without full understanding and utilization of your PLM system, you’re missing the opportunity to capture the main benefits of these investments.
When fully implemented and adopted, these systems integrate people, data, processes and much more.
2. You don’t fully understand your PLM system
I hope none of you that relate to this point think I’m calling you dumb.
PLM is just…a lot.
A good analogy is a car.
We all understand the basics; four wheels, seats, steering wheel, engine.
It is obvious why I want a car, the benefits are clear to me.
That doesn’t mean I know how to troubleshoot, install, and maintain an ignition system.
It is not uncommon to have the wrong idea of PLM system complexity.
They do a lot: data management, process management, lifecycle change, and much more.
This could be why 70 percent of PLM investments are failing to meet manager expectations.
When PLM systems are implemented correctly, they allow your company to further maximize productivity.
3. You Find Yourself Re-Inventing the Wheel
Product lifecycle management solutions are enterprise level systems.
When you attempt to utilize optional configurations, they become complex quickly.
Due to this, many companies find themselves reinventing the wheel around correct PLM configurations.
When this happens, you are only taking more steps backward.
This can easily be avoided with the help of a knowledgeable PLM consultant who is familiar with your situation and has the ability to direct you down the right path.
4. You have multiple issues with PLM system stability
With so many companies investing large amounts of money into PLM enterprise systems, it is important for them to be working correctly.
If your PLM system is continually going down or needs to be restarted, this is another sign you should look into PLM consulting.
A product lifecycle management consultant with experience could locate and diagnose the root cause of your PLM system’s problems, allowing your company to avoid them in the future.
5. Your users complain about general PLM system usability
If your team is constantly complaining about the general performance and interaction on of your PLM interface, odds are that your system hasn’t been properly configured.
Complaints are one thing, but an inability to address the cause and improve user’s situation— that can have a dramatic impact on employee satisfaction and productivity.
User complaints are typically symptoms of larger PLM issues.
An experienced PLM admin can typically decode user feedback and develop a plan to dramatically improve productivity and UX.
The need for ongoing product lifecycle management system administration and maintenance is often overlooked by many companies.
For PLM systems to properly evolve, it is important to partner with system experts who can help your business succeed.
Let’s talk about Windchill System administration services and why they could be crucial to your business’s success.
When it comes to engineering centric products, technology can become a very complicated matter.
Due to the complexity of product data management systems, many things can go wrong if they’re not properly managed.
Here is a list of the common problems you could face if you choose to manage your engineering data management and PLM systems in-house.
1. System downtime
One of the worst problems you may face is extended sessions of Windchill downtime due to technology failures.
For example, it is common to be unaware when your Windchill system is running out of disk space. When this happens, a Windchill system can and will go down.
In many cases, these system instances are easily overlooked without the help of a dedicated Windchill support team.
The reality is, if at anytime your product data management system is not functioning, your company will end up losing money.
Aside from preventing your business from making profits, a Windchill system downtime could lead you to lose access to core systems.
This includes servers and back-end processors, ultimately, preventing you from doing your job. According to a study done by USA Today, 80 percent of managers reported product data management system downtime costs exceeding $50,000 per hour.
2. Windchill System Performance Problems
More than 70 percent of our customers do not perform routine Windchill maintenance.
Without utilizing a Windchill managed services team, you could be missing an opportunity to prevent, find and fix system problems prior to a technology failure.
How are you supposed to know if your PDM system needs more RAM, if you should allocate more resources, or if your Windchill server has been performing slow?
When you have regular performance check-ups, you will be able to improve the overall performance of your business.
Regular Windchill system performance check-ups also help avoid system downtime as you are provided with early warnings of any possible malfunctions that may occur. If a disaster strikes, you can rest easier knowing your business won’t lose any valuable data.
3. Productivity loss
Not only can technology failures prevent your business from making a profit, it can also cripple the productivity of your employees.
I mean nobody wants to hand out free money to those who are just sitting around simply because they are unable to do their job, am I right?
Many times, your IT department may have to work overtime to recover lost data. If the customer perception is affected, a costly marketing campaign may be the only thing to win back customers.
Bottomline, the impact of a Windchill system complication may be worse than you realize and your company could lose the ability for anyone to do work.
4. High-Security risks
Your Windchill system could appear to be running properly, but if it is not protected, your business could experience a security breach. If this happens, it will put your sensitive data at risk.
To help with this, it is important to have multiple layers of security measures in place. If your system is being closely monitored by an Windchill administration team, you will be aware of any inconsistencies.
When you have someone you trust monitoring your Windchill system, you’ll have less to worry about. I truly believe it is better to be safe than sorry when it comes to your company’s data.
By using a Windchill system administration service, you can rest easy knowing you are being taken care of. Plus- while your system is being properly maintained, you will be able to free up your IT department and focus on more important business initiatives.
Want to learn the current health of your Windchill System? With no obligations or any cost – sign up for a Windchill system check-up to have our experts look at your system!
