KI Realizes ROI with a PLM Cloud Deployment




KI is a contract furniture manufacturer based in Green Bay, Wisconsin. The parent company of subsidiaries across the globe, KI’s portfolio includes furniture for schools, universities, businesses, government agencies, and healthcare facilities. KI’s “Market of One” manufacturing philosophy ensures that the specific needs of each customer are met. To continue delivering on this philosophy, KI turned to PTC for a PLM cloud deployment to ensure its product development process was smooth.

The Challenge

Before investing in Cloud PLM, KI was managing its data through a couple of disconnected legacy systems. These systems were siloed in the organization, making it difficult for stakeholders to find and use information stored in these systems. 

In addition, KI’s legacy systems didn’t offer the organization cascading changes – meaning changes made to a design weren’t automatically being communicated downstream. This resulted in a lot of unnecessary, redundant work, delayed production time, and drained employee productivity. 

The PLM Cloud Deployment

KI was already a customer of PTC so hosting PLM in the PTC Cloud was a smoother transition for the company than introducing a new product. PLM in the PTC Cloud consolidated all product data into a unified database. This greatly affected product search time, as various stakeholders were able to easily access and store information through the same platform. PTC’s change management capabilities ensured system-wide visibility and notifications of updates, assuring users that they are using the most up-to-date information. With easier access to the (right) information, KI experienced a faster time to market.

DISCOVER SOME BEST PRACTICES IN PLM CLOUD DEPLOYMENT FROM KI

In addition, KI was able to lower costs such as that associated with scrap and rework and part reuse. By deploying in the cloud, specifically, KI was able to avoid the additional costs associated with supporting and maintaining a PLM system on-premise. 

Calculating KI’s ROI for Deploying PLM in the Cloud

To calculate the ROI that KI was receiving from PLM cloud deployment, research firm, Nucleus Research, quantified the initial and ongoing costs of software subscription feeds, implementation and consulting costs, personnel costs for deployment and support, and employee lost time for training.

In less than 6 months, KI achieved 84% ROI with a payback period estimated at 2.3 years. Nucleus Research estimated that the average annual benefit of deploying PLM in the PTC Cloud was almost $1.4 million.

Read the full ROI case study here to learn more about the full costs and benefits KI experienced by deploying Cloud PLM. Interested in how much moving to the cloud can save your organization? Download the whitepaper, “How Much is the Sky?” to learn about the financial benefits of a cloud solution and which one is right for you.