Tuesday, May 20, 2014

TCO of PLM – Impressions from the ProSTEP-iViP Symposium 2014

TCO of PLM – Impressions from the ProSTEP-iViP Symposium 2014

On May 13-14, 2014, my favorite PLM conference in Germany took place in the Berlin Congress Center at the Alexanderplatz. 

I’ve been attending this conference for the last 20 years and represent NTT DATA in the ProSTEP-iViP association. This year was another success, with more than 500 participants. Dassault and Brose were the main sponsors, NTT DATA actively contributed with a booth and a presentation.

Total cost of ownership of PLM
In a joint presentation with Airbus, we reported on a project to create a TCO model for PLM. Following the motto “you can’t manage what you can’t measure”, the Airbus PLM TCO model was created in order to steer changes of the PLM architecture by understanding the TCO impact of alternatives. In order to create detailed cost models for PROJECT mode, but more importantly for RUN mode, we reviewed algorithmic estimation models based on COCOMO, e.g. COSYSMO (systems engineering) and COCOTS (COTS commercial-off-the-shelf). These models provide insight into the significant differences between custom-developed PLM solutions vs. COTS. The concept of “technical debt” was presented as a major factor in TCO and obsolescence control. Early investments into PLM software quality as well as preventive and perfective maintenance activities are the main levers to manage technical debt.

ProSTEP-iViP goes global
Although the ProSTEP-iViP asscociation was founded as a German entity, the mission of enabling global collaboration and standardization requires global reach. In 2014, the ramp-up of relationships with Japan is the first priority. A meeting with Toyota on topics such as the JT neutral, lightweight geometry format and the code of PLM openness (CPO) confirmed this priority. As NTT DATA, we are looking into opportunities to support this mission with our Japanese colleagues.

PS: this is a cross-posting from the original post in the NTT DATA blog 

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