Example Cases

Proctor and Gamble (P&G)

Product Life Cycle Management success story

To take advantage of economies of scale Procter & Gamble (P&G) , a US brand manufacturer, initiated a Product Life Cycle Management initiative in 2003. Focusing on raw materials purchasing, the company set up over 700,000 specifications in its system, and, using a mix of tools it developed along with PLM software, P&G positioned the stored information to feed into development of new applications. PLM has saved the company millions of dollars on supplies such as packaging materials and colorants. [13]

Ministry of Transportation-Ontario Canada

Value Engineering saves $1 million

The Canadian Ministry of Transportation found that Value Engineering (VE) had broad application from planning through to the production stages for all sizes of project. Value engineering was used to provide purchasers with an item that satisfied the basic function required at the best value for the money spent. An example project was a building purchased for conversion into a church having space for 1500 seats, plus offices, kitchen and classrooms. The VE study was used to verify initial estimates of $1 million which had escalated to $3 million. The VE study and subsequent follow up with client refined the user needs, developed a functional analysis, and developed cost/worth analysis which resulted in a maximum value for the client along with a $1 million reduction in costs. The project proceeded successfully on time and within the adjusted budget. [14]

US Department of Energy

Life Cycle Analysis improves DOE decisions

The U.S. Department of Energy (DOE) used Life Cycle Analysis (LCA) to identify and to assess the benefits and costs resulting from a course of action over the entire period of time affected by that action. The benefits and costs were considered on three levels:

• Direct financial costs over the life of the system

• Quantifiable external effects e.g. environmental, health and safety, indirect economic effects

• Non-quantifiable effects and considerations e.g. socio-institutional impacts.

Various LCA methodologies from the LCA “toolbox” were used by the DOE to meet specific requirements and the level of LCA carried out was commensurate with the potential benefits gained for a particular case. For example LCA was used to investigate potential materials to use as New Generation Vehicle (NGV) components. Results indicate that DOE has made improved decisions since implementing the principles of LCA. [12]

IBM Corp.

LCM reinvigorates company growth

IBM's mainframe technology had reached market stagnation, and competitors’ products were drawing away valuable customers. In this extremely serious situation IBM needed a new business model to keep afloat. Fundamental issues were addressed, e.g. market segmentation, user needs, equipment designs, branding strategies, and the organisation of product development. IBM designed new flexible computer systems and a technology roadmap for its ongoing development. A carefully planned business strategy was drafted concerning the continuing development of solutions for customers. IBM took a radical new direction in regard to the provision of software and used a third party operating system which was widely promoted even by competitors. These changes restored IBM's dominant position and facilitated new growth. Very powerful new computing platforms were developed and by the skilful management of product life cycles IBM's business was reinvigorated. [15]