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P&G Knows Best: Inside its New Approach to Global PLM

12/22/2008
In line with its mantra, "innovation is our lifeblood", The Procter & Gamble Company (P&G) currently has 24,000 active patents and invests more than $2 billion per year in research and development. Needless to say, firm control of costs for compounds, containers, fragrances, adhesives, plastics, cardboard and other materials is critical. To control costs, P&G recently established a Corporate Standards System (CSS) to streamline its PLM operations into one global work process.

P&G executives John Planalp, associate director, M&PCS, Steve Moese, material technology entrepreneur, and Mike Telljohann, director, Global Business Services, shared an insider's perspective on Dec. 9, during a live CGT Web seminar, on how P&G uses the Dassault Systemes ENOVIA solution to manage complex data structures and end-to-end work processes to drive speed, productivity and improve savings results.

Here are some highlights revealed during the event:

-- A manual, regionalized approach in handling technical specifications and material purchases created severe limitations. Since much of the work was done with paper-based documents, data was difficult to analyze. Specifications were not consistent across the various regions, even for almost identical products, leading to inefficiencies in purchasing ingredients. The company also had multiple legacy systems, so accessing and sharing information was slow, even for groups working at the same location.

--P&G developed its Corporate Standards System on top of the Dassault Systemes' ENOVIA MatrixOne platform. The project was led internally, tested and expanded across global business units. Presently, the system has 17,000 users managing two million specifications. The new system manages creation, routing, approval and distribution of all technical specifications in data form.

--Planalp revealed the many ways that P&G's product development operations have become more productive and reduced costs. Specs are approved three times faster than before, giving innovators more time to spend on innovating; 95 percent of the specs are right the first time, saving time wasted on re-work; plant/administrative resources save data re-entry efforts; regulatory compliance is reached with less effort; suppliers and contract manufacturers are on the same page, resulting in quality incident reduction; and supply chain transparency results in direct material savings.

--Ray Wodar, director, Industry Strategy, ENOVIA, was also on hand to highlight key benefits of the ENOVIA Consumer Package Goods (CPG) Accelerator for Global Specification Management solutions and the vision of the Dassault Systemes strategy for CPG.

Click here to listen to the Web seminar on demand and hear a detailed, first-hand account of how P&G is transforming its global approach to product development.
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