Case Study

Teamcenter accelerates growth of electronics giant

LG Electronics Inc.

LG Electronics relies on the Teamcenter product lifecycle management solution to help it become one of the top three global electronics/telecommunications companies by 2010
  • LG Electronics aims for nothing less than leadership positions in market share, products and people in its efforts to become a global digital leader.

Fast growth, fast innovation

LG Electronics Inc. (LGE) has mapped out a clear plan for reaching its goal of “Global Top 3 by 2010.” The company’s strategy for gaining market share is two-fold: fast innovation and fast growth. This is supported by its core competencies of product leadership, market leadership and people leadership. The Telecommunication & Handset Company is one of three companies within LGE. This company makes highly popular mobile phones – the Code-Division Multiple Access (CDMA) and Global System for Mobile Communications (GSM) models – as well as corded and cordless telephones.

To align with LGE’s overall growth initiatives, the Telecommunication & Handset Company has been revising its product development process to drive innovation and growth. One effort for boosting innovation has been to increase research activities outside Korea. To support growth, the company has been looking for ways to accelerate the development of new products.

To achieve LGE’s goals, it was evident that better access to product information was a critical requirement – and a product lifecycle management (PLM) system would provide the essential infrastructure that LGE needed. Management wanted to create a secure information infrastructure that would take advantage of the web while providing immediate access to product information throughout the company, including overseas branches. In addition to allowing people to work more efficiently, this type of infrastructure would: 1) permit the sharing of best practices and failure cases throughout the development team; 2) increase the re-usability of the company’s knowledge; and 3) permit real-time acquisition and analysis of test data. There was one additional requirement for the new PLM system: it had to leverage the information in the company’s existing product data management (PDM) system.

Fully integrated product development process

The Telecommunication & Handset Company selected Teamcenter® software to realize these aims. Teamcenter’s integrated portfolio of PLM solutions, built on its open PLM foundation, was ideal for uniting all aspects of the product development process and linking each person on the development team to the vast store of information involved in creating a company product such as a mobile phone. All product information, including CAD data from a variety of authoring applications such as Pro/Engineer and AutoCAD, is organized by product structure and part. With Teamcenter, any item related to a product – such as a product request form, system model or component diagram, an engineering change order, test result and so on – is immediately available. Teamcenter also manages workflows, such as the engineering change order (ECO) process.

Today, LGE’s implementation of Teamcenter extends beyond the traditional engineering function. Teamcenter users include people across the company, including from portfolio and requirements planning, product and concept development, manufacturing and factory planning, production test and quality, and maintenance and repair operations. Teamcenter’s web-based information sharing makes it possible for people at overseas operations to be as closely involved in development operations as people working at the company’s Korean facilities. Interfaces to the Oracle-based ERP System, the Quality Information Network System (QUINS) and the Knowledge Management System (KMS) extend the reach of product information to other applications, reducing data re-entry and the possibility for error. In addition, Teamcenter is integrated with the company’s e-mail system, allowing PLM workflows to automatically send e-mail messages to team members.

Many strong benefits

The use of Teamcenter has produced tangible results for LGE’s Telecommunication & Handset Company.One of these advantages ties in nicely with the company’s goal of people leadership. With Teamcenter, individuals spend much less time on non-value added activities such as searching for information. As a result, they are much more efficient.On average, document search time has decreased from 60 seconds with the previous product data management system to 10 seconds today, an 83 percent reduction. Another significant time savings comes in reviewing documents for approval. Teamcenter notifies the correct people via e-mail when a document needs to be reviewed and approved. The e-mail contains a link that takes these documents directly to the appropriate Teamcenter location. What used to take two minutes (locating a document that needed reviewing) is now accomplished in 20 seconds.

With Teamcenter facilitating the ECO process, the automatic notification and delivery of documents has reduced lead time from 1.6 days to one-half day, a 68 percent improvement. All these efficiencies have made it possible for the Telecommunication & Handset Company to focus on what it does best – creating great products.

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