How Small & Medium Sized Engineering Can Use PDM to Unlock Growth

Many small and medium sized enterprises (SME) often feel left out of the Product Data Management (PDM) conversation because there are too many barriers. They often do not have the time-tested procedures for implementing an enterprise-wide software, they have less capital, less IT personnel, and less time. Given the right PDM solution and a good approach, engineering SMEs can use PDM to work more efficiently and unlock growth.

Barriers to PDM for engineering SMEs

There are many unique characteristics of an SME. Some result in barriers to using a PDM. SMEs typically have less built out procedures, less capital, less time, and less IT personnel.

Procedures

SMEs are inherently different than large enterprises. Large enterprises have typically been around for a while and have refined their systems for higher productivity. A McKinsey study states that there is a productivity gap between SMEs and large companies in some cases between 26-45% depending on the country. SMEs might not have time-tested procedures in place for implementing a PDM. This could result in more time spent up front organizing the PDM integration.

Capital

Implementing a PDM can require a sizeable capital investment. Many SMEs have smaller balance sheets. This makes it harder for SMEs to be able to invest in a PDM.

Time

Implementing a PDM can take time. SMEs might not have as many resources to delegate a person to lead an implementation process. It can also take time to get everyone up to speed and learn the new software.

IT personnel

It might take specific IT knowledge to analyze the hardware set up and integration for a PDM. SMEs might not have enough, or the right inhouse IT personnel needed for a PDM integration.

These barriers to PDM can lead engineering SMEs to choosing a workflow path that results in many inefficiencies.

Everyday Workflow Challenges

What are some of the common challenges that typical engineering SMEs face with their current system? Engineers spend about 32% of their time on non-value added work. Most of those non-value added tasks revolve around managing data.

Sharing files through email or shared drives

Many engineering SMEs store and share files through email or shared drives. Engineers typically work with Computer-Aided Design (CAD) files daily to design products. CAD files are often referencing other files as parts in an assembly or references in a building drawing. Since these files are all connected and different people are working on different parts, it can be hard to maintain the correct versions through email or shared drives.

It can also be difficult/slow to find files in the typical network drive set up. Professionals such as Engineers spend about 20% of their time looking for information.

In a network drive set up you are typically still using the default file storage app. The default file storage app does not usually have efficient file searching. It often takes forever to find a file using the search box. It can take especially long if you are looking for a file in a large number of folders. It does increase in speed if you narrow your folder search, but that defeats the purpose of searching for your files in the first place – if you don’t know which folder your file is in.

If you are using this set up, then you could be wasting 20% of your time looking for files because you are not able to use efficient searching methods such as those in a PDM.

Spending too much time with Rework and Repair

Most Engineers spend over 4 hours a week fixing design data. This can be caused by having the wrong format or just miscommunication. A consultant could email a CAD file that is in the wrong version because they have a different CAD software version. Two engineers could be working separately on two parts and cause overlapping changes. Both scenarios would cause the engineer to spend time repairing files.

Maintaining IT

Another challenge related to having network drives and storing data is maintaining IT. Maintaining IT and the costs that come with it can take away from focusing on the core engineering business. It can be a distraction and the process can be done better by someone else.

These challenges are particularly a pain for engineering SMEs where IT costs do not scale as well as they do for larger enterprises.

PDM - The Solution

These challenges can be partially solved by investing in a PDM. For an engineering SME, not just any PDM will do. Engineering SMEs should look for several features when looking at PDM solutions. Having a PDM solution that is flexible, affordable, with minimal IT investment, and minimal implementation time are ideal for engineering SMEs.

Flexible

A PDM should be flexible and configurable so that it can grow as the systems and processes of an engineering SME get more refined and built out.

Affordable

The PDM solution shouldn’t have to break the bank. Some PDMs include many features that an engineering SME might not need or use in reality. Large enterprises have many diverse needs because the solution is for many people. Engineering SMEs don’t need to pay for features that they won’t end up needing. Typically, more features leads to more time to train staff in using the software.

Minimal IT

The PDM system should also take minimal IT resources to maintain. SMEs especially don’t have the resources to maintain a PDM system. Keeping resource needs small will ensure that there are no hidden costs.

Minimal Time

Engineering SMEs are especially short on time.

Having a clear implementation plan can help minimize time. Starting with a small test group initially is important to make sure any difficulties are ironed out beforehand. Be sure to include a diverse test group. People might have different needs and use the software differently.

Time can also be minimized if the solution is more configurable. This would require less customization. Customization takes time to develop, test, and implement.

Sorting through investment options

There are many investment options for an engineering SME, so why invest in PDM? How do you choose the right PDM for you? 

Spend money over time

Why invest? Often SMEs spend time over money. They spend time finding a work around to save money on new software and tools. This usually comes in the form of an inhouse software application.

While these might be a short-term fix, they are not sustainable. Ultimately, someone is going to leave or retire and take with them knowledge needed to maintain the inhouse solution. In most cases, the inhouse solution falls apart as the company grows and needs grow. You can get more money but there are only 24 hours in a day.

Choosing how to spend your resources

As an engineering SME, it can be hard to choose what to invest. You can invest in a CRM, an ERP, Finance & Accounting tool, Project Management software, or hiring more employees. There are several ways to help identify if investing in a PDM is the right choice right now.

ROI

Think about Return on Investment (ROI) and the group that the software serves. Calculating the investment cost is relatively straightforward since you can use the cost of the PDM software. Here is a simplified equation for PDM Return:

PDM Return = (# of people) x ($/Hour) x (Hours Saved)

• (# of people) - Number of people using the software.
• ($/Hour) – The average hourly rate of the group of users.
• (Hours Saved) – Average hours saved per user per time period. Time period (Hours/Month, Hours/Year, etc.) can be adjusted to calculate the horizon of the return.

Most people use a PDM in an engineering SME. Engineers usually have a pretty high average $/hour rate. Since most people use a PDM on a daily basis, even marginal time savings can result in large returns for engineering SMEs.

It is especially hard to find good engineers. Saving time for engineering staff can lead to needing to hire less engineers.

Choose the real pain points

There are several methods that a company can use to identify investments that could bring the most value.

First is identifying the bottlenecks. Look at the process of products throughout the company. Some questions that you can ask yourself to identify symptoms of bottlenecks might include:

• Which teams have the most backlog?
• Which teams have the most overtime?
• At what stage does the flow of products slow down?

Second, identify the 80/20 issues. The 80/20 rule is a popular rule in the consulting world. Often 80% of the problems are caused by only 20% of tasks. So, when choosing what to invest in, identify the 20% tasks that are causing 80% of the problems. Do the 20% tasks include engineers searching for files, doing re-work, and miscommunication about the right files and versions? If so, then PDM is a solution to those problems. Solving theses core challenges might result in an outsized benefit.

You should also consider which features you are looking for in a PDM by identifying the 20% items. That way you can maximize the return on investment by solving the core issues.

SMEs Unlocking Growth with PDM

Engineering SMEs are different that large enterprises. They have different limitations, challenges, and workflows. Many PDM solutions can be too complicated and featureful for an engineering SME. Choosing a PDM that is flexible and has minimal resource constraints is important for engineering SMEs. Identify core issues that could have outsized effects. PDM could be the solution to your bottleneck and unlocking growth.