Overcoming PLM Implementation Challenges with Windchill

Blog • PLM & PDM

Nidec Corporation and its subsidiary, Nidec Global Appliance, prioritize delivering a diverse portfolio that upholds high-quality standards, promotes competitiveness, and enhances energy efficiency. Their innovation drives solutions that stay ahead of appliance industry trends.

Headquartered in Japan, Nidec Corporation is one of the world’s largest motor manufacturers. In 2019, it expanded its reach by acquiring Embraco, a Brazilian company renowned for its innovation in refrigeration solutions. The Embraco brand has led advancements in variable-speed compressors and natural refrigerants, which are key in reducing energy consumption and promoting sustainability.

The International Institute of Refrigeration (IIR) reports that refrigeration and air conditioning consume 17% of the world’s electricity. Embraco addresses this challenge with innovative solutions that enhance quality of life while reducing environmental impact. For instance, its variable speed compressor technology achieves an average energy savings of 35%. By adjusting the speed of refrigeration systems, this technology meets the world’s most stringent energy efficiency standards.

Nidec Global Appliance serves the home and commercial appliance markets with an impressive annual production capacity of 60 million units, including motors and compressors. The company operates across eight countries with eleven manufacturing plants, over 50 research and development laboratories, three sales offices, and a global business support center.

Nidec Global Appliance has embraced digital transformation to increase the launch of new product families and customer-specific variants. Backed by strong leadership, IT and Engineering teams have joined forces to achieve more with fewer resources. This collaboration has increased project capacity, shortened time-to-market, reduced costs, and enhanced product quality.

Products are Evolving. The EU climate and energy framework aims to reduce energy consumption by 40% between 2020 and 2030 compared to 1990 levels, posing significant challenges for companies like Nidec Global Appliance. These regulations will introduce stricter energy efficiency standards, requiring the relabeling of household and commercial appliances, such as dishwashers and refrigeration systems. Many current product designs will no longer meet these requirements, with what is now rated AAA potentially dropping to an F under the updated standards.

Global Competition is Heating Up. Competitors from China and Japan are rapidly innovating and closing the gap. Energy efficiency directly impacts pricing, and while Nidec Global Appliance has a strong history of being first to market, the global market now faces excess capacity. To stay ahead, Nidec must accelerate product development or risk significant price erosion on its products.

Supply Chains Are Facing Disruptions. As innovation accelerates, Nidec must swiftly certify both new and existing supplier parts to avoid costly delays in time to market.

This study focused on key performance indicators (KPIs) to evaluate the impact of PLM Implementation Challenges and the results achieved through Nidec Global Appliance’s PLM Implementation Strategy. The outcomes were impressive:

• Number of Large Projects: Increased by 284%
• Time-to-Market: Reduced by 48%
• Resources: Reduced by 22%
• Quality: Cost of non-quality decreased by 40%

Without a single source of truth, employees struggled to locate the documentation and history needed for accurate product variant design. This led to duplicate testing for minor changes, delaying new variants. Large and mid-sized projects faced rising costs due to avoidable rejects, rework, scrap, extra labor, and longer cycle times.

Engineering changes posed major challenges for Nidec, especially during PLM implementation. Developers had to duplicate efforts by entering data separately into Windchill and SAP, increasing workloads and the risk of errors. Discrepancies between the two systems created confusion—leaving teams uncertain about the true source of information.

Although individual project teams managed to function, the system fell short at the enterprise level. A lack of process control, supplier oversight, and inspection governance led to delays in bringing products to market. Transitioning designs from development to production became challenging due to inconsistent BOMs and work instructions. For instance, a single part might have multiple insertion points, or one assembly step could require two different parts.

“There were real or perceived reasons for differences in process based on specific scenarios. Independent R&D teams did not understand why they had to standardize on a process that was different from what was already working for them. No one wanted to work differently,” said Thalita Begliomini, Global IT Manager for Governance, Risk, and Compliance. “We had to convince our teams that IT could support them even better with standardized processes. Now everyone understands what we can do together.”

Nidec Global Appliance lacked a standardized process for communicating product changes to OEM customers. This created confusion about what updates to share and how to deliver them. OEMs faced risks like line failures without a defined engineering change notice (ECN) process or traceable documentation and certifications. These issues wasted time and resources for Nidec and harmed its reputation.

Without standardized requirements, the supply chain faced setbacks. Inconsistent certification procedures and fragmented supplier databases across regions caused delays in supplier approvals. For example, if a compressor failed in a customer’s refrigerator, the quality team struggled to trace development, supplier, and manufacturing data, hindering root cause analysis and corrective action.

This allowed R&D teams to access product data effortlessly, regardless of their location, team, or the product variant being designed. Hours of rework and redundant testing were eliminated. Change and configuration management ensured that development change requests were linked to relevant documents and automatically archived with proper approvals and considerations.

Product structures were synchronized to prevent data loss between Windchill and SAP. When a BOM is approved in Windchill, SAP updates automatically, if an issue arises on the production line, a deviation can be opened in Windchill, enabling swift actions, approvals, and testing.

New processes introduced greater efficiencies. For instance, during project planning, employees were assigned specific roles to minimize rework. Using the same individual for testing at the start and finish ensured consistent quality.

When customers face PLM implementation challenges, a well-structured Engineering Change Notice (ECN) process becomes essential. This process allows changes to be analyzed and discussed thoroughly, supported by documented tests and certifications.

Suppliers gain from a stronger certification process. The integrated documentation system improves visibility and supports the delivery of higher-quality products.

“The main R&D processes are globally digitized leveraging the use of trusted data based in a robust process managed by Windchill, enabling the company to drive the business based on data and start a journey using artificial intelligence,” said Luiz Gustavo de Oliveira, Head of Technology and Analytics.

To stay competitive and a leader in energy-efficient refrigeration solutions, Nidec Corporation gave Nidec Global Appliance the tools needed to transform its enterprise. By implementing a digital PLM strategy and integrating disparate systems like Windchill and SAP, Nidec Global Appliance redefined quality practices throughout its products’ lifecycles.

“With each new generation, we have delivered a 5% improvement in energy efficiency,” said Gerson Heusy, R&D Senior Manager. “Innovation is present through innovative tools.”

These innovative tools have drastically changed the timelines of Nidec’s products, with time-to-market decreasing by 48% and a 284% increase in the number of large projects. They are accomplishing this with 78% of the resources they had prior to PLM. With enhanced governance and traceability, as well as other enterprise quality initiatives, the cost of non-quality was also reduced by 40%.

Currently, 900 employees are using Windchill to create PLM Strategies, with another 300 using it every day globally, 24/7. IT has become a partner in creating a PLM Strategy, which has led to success and ensured that it meets the needs of the enterprise.

“The IT team learned with R&D to embrace together a more agile approach,” said Thalita Begliomini, Global IT Manager for Governance, Risk, and Compliance. “Our teamwork, methodology, and tools evolved over time based on a continuous improvement philosophy.”

Source: PTC Nidec Case Study

Nidec Corporation has empowered Nidec Global Appliance’s IT team with greater trust in R&D. Energized by this progress, the next step is a digital transformation in operations, extending the digital thread into factory processes. The focus will be on measuring efficiency by analyzing production line parameters and implementing a PLM strategy that reduces operational costs, increases factory output, and improves asset utilization. As part of this journey, Nidec Global Appliance will integrate quality into every aspect of its digital thread.

Links to Other Pages

• PLM Implementation: Discover effective strategies for PLM implementation, streamlining processes, and enhancing collaboration across your organization.
• PDM Software – Windchill PLM: Explore how Windchill PLM optimizes PDM software by improving product data management and cross-functional team collaboration.
• AI in Architecture: Revolutionizing Design and Construction: Learn how AI is revolutionizing design and construction in architecture, driving innovation and improving project outcomes.
• Benefits of Digital Thread: Understand the benefits of digital thread, connecting data across the entire product lifecycle to enhance visibility and decision-making.

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