This practically also pays big dividends for manufacturers as they continue to strive to keep their Energy STAR Compliance ratings on products, leading to lower costs for power supply, electrical system integration and less product wear due to more efficient use of energy. Studies also indicate that Energy STAR compliance, when designed in as part of the DfE initiatives in a PLM system, can have an exceptionally high accumulative impact as well (Preston, 2001).
Integrating DfE into PLM frameworks then not only alleviates the unnecessary and often high costs of noncompliance to federal and global mandates, this integration has also been shown to reduce the net amount of new product components necessary, further creating higher levels of reliability in products over time (Mascle, Zhao, 2008).
There are many additional benefits to integrating DfE product development practices into the broader PLM frameworks manufacturers use for designing, launching, managing and discontinuing products. The first is that the accumulated knowledge of product-level and component-level compliance can be captured and included in enterprise-wide quality management programs as well. These Enterprise Compliance and Quality Management (ECQM) programs not only alleviate the unnecessary costs of compliance they also can monetize or cost out the costs of components that are not meeting quality standards. Instantly manufacturers can now know which suppliers are causing their products to not measure up to quality standards and also those that are. Of the many high tech manufacturers doing this including Cisco, the use of ECQM systems to determine which components are best for recycling due to their higher quality is saving the network products manufacturer (Mascle, Zhao, 2008). Cisco also uses the ECQM system as part of their PLM framework to complete failure analysis and lifetime costs of each component in their most popular product configurations. This has given Cisco the opportunity to recycle entire motherboards and main circuit boards which are very expensive to produce in manufacturing operations. The net effect has been an increase in corporate-wide profitability. Another benefit all manufacturers strive for by including DfE and reverse logistics into their PLM frameworks is reduction in packaging costs by designing in biodegradability and reverse logistics processes (Mascle, Zhao, 2008). This is now an integral part of the HP PLM framework, and has been responsible for saving approximately seven million print cartridges over programs put into place (Bulik, 2007). HP claims to have saved $500M by integrating DfE, reverse logistics and biodegradability into their PLM framework (Mascle, Zhao, 2008).
The Contributions of DfE and the new Product Development Phase of PLM
As the benefits shown in Table 1: DfE Benefits and Impact Analysis from PLM Integration have become the metrics of performance that matter most to electronics and electrical products manufacturers, the development of methodologies for the first phase of the product lifecycle are key to ensure their attainment. This is certainly the case at Cisco and HP who have created benchmarks to measure the contribution of PLM strategies to compliance initiatives (Mascle, Zhao, 2008). While manufacturers are finding that they can attain these benchmarks during any phase of the PLM process, it is far more effective and less costly to plan for them during the initial product development cycles of a product. These decisions on new product development and product introduction also are much more precisely synchronized to channel partners during the initial stages of new product development than any other phase of the PLM framework and cycle (Chaudhri, 2006).
Manufacturers who are attaining best practices in this area including Cisco and HP (Mascle, Zhao, 2008) are doing so through the use of DfE Benefits and Impact Analysis prior to any product actually being mass produced and sold. The focus of this strategy is evaluating each subsystem of the proposed products' design and extrapolates the potential impacts on compliance, minimizing the costs of non-compliance over the long-term and minimizes the costs of potential non-compliance. The implications for supply chain partners is better managed at the initial stages of the PLM cycle than in the middle, and suppliers can then also be given their own levels of metrics they must attain as part of the supply chain for DfE-compliant products.
Summary
The many benefits of integrating DfE-based product development methodologies and practices into a PLM framework and strategic plan are evident from the best practices analyzed throughout this paper. The fundamental strategic value of PLM is in its ability to serve as a learning ecosystem (Abramovici, 2007) for manufacturers who are interested in gaining greater customer alignment, cost, and time-to-market advantages in their internal development and production processes. The many compliance initiates of RoHs (Smock, 2004), WEEE (Kunert, 2005), and EPA-mandated programs (Telle, 2009) are having an immediate and significant effect on the structure and execution of PLM strategies. The need...
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