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Teamcenter for SystemsEngineering White PaperA holistic approach to understanding complex products andreducing business and engineering riskTeamcenter systems engineering solutions enable companies toaccount for a product and its related lifecycle processes frommultiple business and engineering perspectives. This “whole”product understanding allows organizations to synthesize/analyzeinterdependent product relationships and manage the product’srelated engineering and business risk.Issued by: Siemens PLM Software. 2011. Siemens Product Lifecycle Management Software Inc. All rights reserved.

White Paper Teamcenter for Systems EngineeringContentsExecutive summary .3 Multiple levels of business risk .5 Multiple improvement initiatives .6 Role of systems engineering.7 Real-world use cases.9 Summarizing Teamcenter’s systems engineering solutions .10 Systems architecture definition .11 Requirements management .13 References.16 Issued by: Siemens PLM Software. 2011. Siemens Product Lifecycle Management Software Inc. All rights reserved.2

White Paper Teamcenter for Systems Engineering3Executive summaryIf you understand a product in its entirety as well asthe processes used to plan, develop, manufacture andsustain it – and if you can monitor and measure therelationships between these processes – you cansystematically mitigate program risk and materiallyimprove a product’s chance for achieving marketplacesuccess.Product complexity and business risk Complexproducts raise the stakes for today’s product makers.It is safe to say that the more complex a product, thehigher the risk associated with planning, developing,manufacturing, marketing, selling and sustaining thatproduct in a highly competitive global marketplace. If a product fails to meet customer expectations,its marketplace acceptance will be dubious at best. If a product fails to conform to establishedregulatory requirements, product makers face thepotential of heavy non-compliance penalties. If early concept design stages are not coordinatedwith the downstream stages in the productlifecycle, start-overs, redesign and rework canresult in a runaway project. If engineering changes are not properly alignedwith requirements, a program’s strategic objectivescan be lost in the shuffle. If bad design decisions are not caught upfront or iftheir impact is misunderstood, rampant redesigncan result in unnecessary development cost, aswell as in one unsatisfactory workaround afteranother.This level of complexity is compounded by the needfor today’s product makers to implement improvement initiatives for new product development, valueCustomerneedschain synchronization, enterprise data management,commonization and re-use, knowledge and intellectual property management, regulatory complianceand production efficiency.Managing complexity through systemsengineering Siemens PLM Software believes that theway to comprehensively address this level of complexity is to apply systems engineering techniqueswhen implementing each of your improvementinitiatives – as well as when accounting for the gapsbetween these initiatives.Teamcenter – Siemens PLM Software’s comprehensive portfolio of digital lifecycle managementsolutions – provides systems engineering capabilitiesthat enable product makers to assess the effectiveness of their product initiatives from multipleengineering and business perspectives. By allowingcompanies to understand the whole product and allof its related lifecycle processes in terms of established business/engineering metrics, Teamcenter’ssystems engineering solutions allow system andsubsystem level elements to permeate and drivedecisions throughout the product lifecycle.Why systems engineering matters The goal is toenable every stakeholder in a product program torecognize that their decisions impact everyone elsewho participates in the product lifecycle. Equallyimportant, Teamcenter’s systems engineeringsolutions facilitate impact analysis and tradeoffdecisions. The result is optimized products thatbalance the effect of multiple business and engineering considerations, including market appeal, productcost, performance, manufacturability, safety,disposability, regulatory compliance, usability,maintainability and total quality.State theproblemInvestigatealternativesModelthe systemIntegrateLaunchthe aluateRe-evaluateRe-evaluateRe-evaluateThe systems engineering process.Issued by: Siemens PLM Software. 2011. Siemens Product Lifecycle Management Software Inc. All rights reserved.Outputs

White Paper Teamcenter for Systems EngineeringSiemens PLM Software solutions Our companyprovides the following kinds of solutions to addressthe eight phases of the systems engineering processdefined by the International Council on Systems1Engineering (INCOSE) fellows. Systems architecture definition provides totalprogram visibility so that systems engineers candefine the problem statement and decision makerscan leverage systems-level metrics to makeoptimized tradeoff decisions. Requirements management enables product teamsto capture and define all of the program’s market,regulatory and design requirements and relatethese requirements to fine-grain design elementsand performance targets that can be tracked andupdated throughout the product lifecycle. Systems level engineering enables developmentteams to model the system from the “top down”and integrate its subsystems and components“upfront” so that every discipline can fully4understand the impact of their product decisions.This level of derivation enables developers to breakthe product system into different configurationswith different assemblies and different versionsthat represent all of the variations that arise,including product variants, options and add-onsthat can be developed to extend the profitability ofthe program. Systems investigation, simulation, verification andvalidation enable product developers to validatesystem design, investigate alternative conceptsand assess product performance at different stagesin the product lifecycle.This white paper concentrates on Siemens PLMSoftware’s capabilities for systems architecturedefinition and requirements management.Other publications address our solutions for systemslevel engineering and systems investigation, simulation, verification and validation.Issued by: Siemens PLM Software. 2011. Siemens Product Lifecycle Management Software Inc. All rights reserved.

White Paper Teamcenter for Systems Engineering5Multiple levels of business riskProduct development complexity carries the potentialfor substantial financial and marketplace impact. Catching design problems on the factory floorcosts 10 to 100 times more than catching themduring the design process. Between 50 to 70 percent of all new product ideas2that make it to market will fail , usually becausethe new product did not meet customer needs, orits quality was too low, or the product was late3to market. The cost of regulatory compliance is increasingexponentially, as evidenced by the fact that U.S.companies planned on spending 15.5 billondollars on regulatory compliance in 2005 and 804billion between 2005 and 2009. Industrial design has become a key differentiatorfor all product categories – and a discipline thatis capable of generating organic growth, newrevenues and wider profit margins. Ignoring thisreality can severely impact company performancein the battle for market share. Failure to capture, understand and keep up withproject requirements results in runawaydevelopment costs 70 percent of the time. Many companies have invested millions of dollarsimplementing Six Sigma quality objectives only todiscover that they have hit the 4-Sigma quality wall.Failing to deliver that last 2-Sigma improvementinhibits companies from reducing the cost of qualityby as much as 25 percent of product sales. Studies indicate that the dispersal of design,engineering, manufacturing, marketing, sales andservice activities around the world have producedan environment where “a clear majority of.valuechains lack the capabilities to effectively generate5new products.”Issued by: Siemens PLM Software. 2011. Siemens Product Lifecycle Management Software Inc. All rights reserved.

White Paper Teamcenter for Systems Engineering6Multiple improvement initiativesToday’s product makers face a complex set ofchallenges in delivering and sustaining their productofferings. These challenges test the mettle ofmultiple value-chain participants. Each set ofparticipants is expected to master a disciplined bodyof knowledge. Each discipline (e.g., industrial design,engineering, simulation, tooling and machining)champions a particular series of business initiatives.Each business initiative is empowered by a specializedset of applications.Today’s product makers are particularly concernedwith business initiatives that offer enormous potential for revenue generation, innovation, quality andproductivity improvement, including:New product development, where companiesintegrate the voice-of-the-customer, metrics-drivenrequirements, project management techniques andR&D planning methodologies into their productdevelopment processes to improve product innovation.Value chain synchronization, where companiesattempt to lower their operational costs, accessspecialized centers of excellence and improvelocalization by adopting a distributed productdevelopment strategy that enables globally dispersedvalue chains to collaborate effectively and align theirdaily work processes.Enterprise data management, where distributedvalue chains that operate under different businessrules exchange and share their product informationwhile securing these assets and retaining theirorganizational autonomy.Commonization and re-use, where product development organizations re-use common platforms, provenparts, equipment and automated processes to createcost efficiency and implement best practices.Knowledge and intellectual property management,where information captured from multiple application systems is created and maintained at its sourcewhile being made available to multiple programs andtheir entitled users for continuous product andprocess innovation.Production efficiency, where companies enable theirproduct development and manufacturing organizations to share information and interact collaborativelyto facilitate total quality, Six Sigma and Design for SixSigma objectives.Regulatory compliance, where product developersvalidate product compliance with multiple regulationsin a single environment that captures regulatoryrequirements and material/substance data frommultiple sources.Issued by: Siemens PLM Software. 2011. Siemens Product Lifecycle Management Software Inc. All rights reserved.

White Paper Teamcenter for Systems Engineering7Role of systems engineeringAs effective as these improvement initiatives areindividually, they do not provide product makers witha holistic approach that accounts for the gaps andinter-relationships between each initiative – nor dothey account for other business and engineeringissues that influence marketplace success or mitigateprogram risk.Siemens PLM Software believes that systems engineering provides a metrics-based methodology thatcompanies can use to assess their products frommultiple engineering and business perspectives. Byunderstanding a whole product and all of its relatedprocesses, companies can address an inclusive rangeof strategic issues as they plan and execute theirproduct programs.The Institute for Systems Research has establishedeight criteria for defining systems engineering’sdistinguishing characteristics, including the6ability to: Account for cross-discipline considerations Leverage high-level metrics Represent hierarchical structures Facilitate global and local optimization Reflect the role of heterogeneous influences Accommodate dynamic behavior Apply process and product lifecycle methodologies Consider the impact of non-technicalcomponents/metricsSiemens PLM Software provides a variety of solutionsthat meet all of these systems engineering imperatives and, most importantly, provide the “glue” forbringing these imperatives together. Our understanding of the role of systems engineering and theimplementation of its capabilities starts with thefollowing definition:Systems engineering is comprised of a broad set ofprocesses and methods that model and analyze theinteractions between a product’s requirements,subsystems, constraints and components.As this definition indicates, it is crucial to applysystems engineering at the front end of the productlifecycle (where decisions are made about what isbeing built), as well as throughout the lifecycle andinto each of the disciplines involved in realizing andsustaining the product. In essence, companies needto apply the concepts of systems engineering from atop-level definition of the systems architecture to afine-grain level of design – thereby providing a“neural network” for facilitating systems engineeredproducts.Siemens PLM Software’s Teamcenter solutionsintegrate systems thinking with systems engineeringacross the entire product lifecycle by enablingorganizations to capture and deliver a systems-levelperspective to everyone engaged in the productdevelopment process. The idea here is to recognizethat every product decision has implications foreveryone who participates in the product