Benefits of Product Lifecycle Management (PLM)

PLM software can help people improve their understanding of how products are designed, built and serviced. Most users appreciate centralized access to all product-related information; they feel more productive and efficient. But the benefits are quite concrete and easy to demonstrate.

These benefits can be categorized as

Increase revenue 

It's fairly intuitive that shorter design times and faster change cycles yield earlier product introductions and optimized products, resulting in earlier revenue and longer product life.

Reduce design time

PLM avoids wasted design effort through

• immediate, managed access to all design data
• concurrent reviews by affected data consumers without distracting designers
• elimination of lost or damaged files
• consistent, data-rich bills of materials with real-time cost roll-ups
• reapplication of existing items in new designs

Accelerate release and change cycles

Some PLM systems allow tasks to be attached directly to an document or part, keeping both designers and project managers in the loop.

Perhaps the most remarkable impact of PLM is the substantial efficiency gained when processing product releases and changes. A non-automated process usually requires extensive document collection and copying efforts, repetitive and error-prone change order creation, and relying on time-consuming interoffice mail or on an engineer or change analyst walking the package from office to office. Involving supply chain partners may require express parcels, insecure or lost mail, irrelevant or incorrect file attachments, and a host of other time-wasters.

By design, a PLM system contains all product information in a secure central location; allows multiple users simultaneous access to the data; provides templates for change types, including pre-defined review workflows, approving departments and interested observers; identifies all dispositioning tasks and rolls up cost impacts automatically; and utilizes email so there is no lag between one person's approval and the next person's notification. Changes can typically be pulled back, reworked, and resubmitted without leaving your desk to chase down a physical package.

Reduce product cost

Conduct more comprehensive, less intrusive collaboration

Real-time visibility into evolving designs encourages early and frequent design checks; these permit sourcing, production, quality and service specialists, as well as supply chain partners, to provide timely feedback. Include all aspects of the product plans, drawings and procedures for production, inspection, service, repair and disposal. This information is available in a single location, without having to distract designers with on-going requests for in-process data. 

Purchase fewer parts in larger volumes

Part re-use is difficult in larger organizations with significant numbers of parts. Relying on designers' memory or searching through the ERP system is a hit-or-miss affair, resulting in almost-identical parts being sourced. PLM encourages item exploration, which avoids sourcing new parts that are functionally similar to items already in inventory.

Increase production experience

Earlier product introductions ensure longer production runs; increased production experience results in more rapid, on-going cost reductions.

Reduce production rework and scrap

Changes are reviewed by all affected parties; on-line review and approval is faster and more comprehensive than paper-based change process; bills of materials are consistent and can include documentation on production and inspection processes.

Reduce overhead

Simplify regulatory and contractual compliance

If your development or production process is subject to audit by a third party, a PLM product can simplify review and acceptance. It's far easier to document your process when it's based on commercial-grade documentation and system configuration reports, particularly if the PLM vendor is sensitive to regulatory issues, and has experience designing compliant products.

Mitigate and, if required, report on a product's environmental impact

Government regulations both restrict the types of materials contained in products and specify more stringent environmental-impact reporting.

Europe's Waste Electrical and Electronic Equipment ("WEEE") and Restriction of Hazardous Substances in Electrical and Electronic Equipment ("RoHS") directives address product environmental impact and require material tracking and, in some cases, data reporting. The US Environmental Agency also prohibits or restricts the use of certain hazardous materials, and your company may be required to track and report on certain compositions.

New efforts are underway, particularly in the electronics and automotive industries, to increase the use of environmentally-friendly materials, and supply chain partners often require detailed materials reporting via a Materials Declaration.

Manual calculations, particularly for hazardous substances that are measured in parts per million (ppm) or parts per billion (ppb), can be time-consuming, imprecise and error-prone. PLM systems that can automatically calculate and report product material composition across a bill of materials radically simplify the task.

Reduce process administrative and clerical costs

Depending on your industry, for every 8 to 12 engineers and designers a manual document control and change management process may require a change analyst, administrator, document checker, or clerk. Implementing a PLM system may allow you to cut that ratio to 20:1 or better.

Courtesy - www.product-lifcycle-managment.com