Compiled with input from QR_ PDM professionals Daniel Garratt, Evgenios Efthymiou, Dave Slawson, Andrew Houghton, and William Smith. This is the third and final BoM-themed instalment in the "QR_ essentials" series.
With product development increasing in complexity, the ability for automotive firms to effectively manage their data complexity is becoming significantly more important. Without it, firms will struggle to maintain market positioning and competitive advantage.
Central to a firm's product data management is the system used for their Bill of Materials. These systems represent a significant investment — both up front and in terms of engineers' time spent within the system. The burning question for automotive firms is whether to implement an off-the-shelf system or build a bespoke system to secure the best results.
Through synergistic collaboration with 128 automotive OEMs and suppliers over the last 17 years, QR_ has gained unique insights and over two million hours of PDM experience. This study was initiated by talking to subject-matter experts and PDM leaders at world-leading automotive firms about what they thought of their BoM system — and through performance testing against a distinct set of criteria. The manufacturers surveyed ranged in size, target markets, and approach: some had implemented off-the-shelf software packages; others had designed their own bespoke system.
Three key findings:
1. Larger companies tend to lean toward bespoke systems because of their complex data management needs
Larger companies generally have larger product portfolios — and therefore a larger amount of data that needs to be maintained to make it valuable to the end user. Off-the-shelf software is certainly robust enough to maintain very large and complex data sets. But large companies also have diverse, complex needs combined with significant budget and in-house development teams, which means a bespoke system often presents itself as the best option.
Comparing off-the-shelf packages to bespoke systems implemented at global, volume vehicle manufacturers, bespoke systems scored better in complexity visualisation.
2. Different OEMs have different priorities — which influences the type of system they choose
Even between automotive manufacturers of similar size and market positioning, there are often different priorities when evaluating a BoM system. That's often attributable to a company's culture or its historic strength in a particular area. Every firm has its own priorities and agenda. Some may value an incredibly robust BoM system security structure; others may prioritise an accessible user experience for their engineers.
Overall, bespoke systems scored higher in traceability and security, while off-the-shelf systems scored higher in user interface and experience.
3. There is no such thing as better or worse in BoM system comparison
Organisations have different cultures and business needs, and each user of a system brings innate skills and preferences for different aspects of large, complex systems. In today's climate, a lot of the off-the-shelf systems are robust and can be partially tailored to customers' needs — it's easy to see why many automotive firms would initially turn to them. Off-the-shelf systems also benefit from constant back-end development, delivering new features and functionality.
Conversely, it's clear from talking to our subject-matter experts that in some firms, building a solution in-house is the most cost-effective solution in the long term — given licensing costs from off-the-shelf vendors — and affords the ability to fully align with internal processes and culture.
One thing applied universally: the impact of human nature on how users perceived a system, regardless of whether it was in-house or off-the-shelf. When a system is used for a prolonged period and integrated properly within an organisation, users become aligned with how it works, and its processes and idiosyncrasies become natural. At that point, users may become resistant to change. But in an increasingly complex world, it may be in the organisation's interest to review whether the existing solution is still suitable for their needs.
Originally published on Medium: medium.com/@quickrelease_/off-the-shelf-vs-bespoke-bom