Manage Product Lifecycles with PLM

Sample Enterprise Systems:
ERP, CRM, Product Life Cycle Management,
SCM,GL, HRM

PLM (Product Life Cycle Management)

Introduction to PLM
• Product lifecycle management (PLM) refers to the management of data and processes used in the design,
engineering, manufacturing, sales, and service of a product across its entire lifecycle and across the supply chain.
• Product lifecycle management has a long history in the manufacturing space, but as it stands today, the term
generally refers to a software solution and a broader use case beyond just the manufacturing process.

Need of PLM
• Companies that manufacture goods experience a range of issues outside of the scope of design and
manufacturing.
• Product lifecycle management (PLM) mitigates those issues and helps align and integrate key
resources, quickly making product information accessible to teams across the organization.
• PLM was originally designed to help engineers collaborate on the latest product designs and control
information across the lifecycle of a product.
• PLM solutions focused only on internal employees.
• Today, product lifecycle management as a methodology has evolved to include a larger portion of the
organization, including customer service, marketing, sales, suppliers and partner channels.

Cloud based PLM
• Cloud-based product lifecycle management software creates a single source of truth to expedite and
improve product development, and track data and processes – all from the cloud.
• Today's cloud PLM software updates product changes, advancements, and industry compliance as they
happen in real-time, allowing for timely collaboration between all departments in the product
development process regardless of location.

The Product Lifecycle and the PLM Process
• A product’s lifecycle typically begins with an idea.
• Maybe it happens in an office, maybe on your drive home or anywhere.
• When we think of products we assume that once that idea gets legs, it crystallizes into
a design it is later manufactured for the world to see.
• But we can’t forget the steps in between: purchase, service, and repair, and ultimately –
disposal or retirement.

Stages of PLM
• Introduction: Costly and risky, new products that are introduced to the market can mean low sales, as
well as costs from research and development, consumer reaction, and marketing.
• Growth: The product gains popularity and sales and profits grow. Marketing increases to maximize
benefit.
• Maturity: Product popularity dictates more focused marketing as well as future predictions for
product improvements or changes to the production process.
• Decline: An inevitable end, decline in product popularity happens with increased competition, or lack
of customer return. Companies focus on reducing production costs and introduction to less popular
markets.

PLM Software
• Product lifecycle management software combines all organization and readiness tools
mentioned above into one platform to manage and connect data, processes, and
business systems with the people who use them.
• When used correctly, PLM software can increase innovation, improve productivity, get
products to market faster, and reduce unnecessary expenditures on resources and time.

Data Sharing
• PLM provides open information sharing between employees, partners, and customers, which works to:
• Speed up planning and development in the design phase
• Address complex issues in real time
• Manage engineering challenges
• Create a customer and product connection
• Update pricing, product attributes, and sales information during product launch
• Improve product viability with information garnered by sales and marketing
• Enhance products with sales and service input

Introduction to SCM
• Supply chain management is the management of the flow of goods and services and includes all processes
that transform raw materials into final products.
• It involves the active streamlining of a business's supply-side activities to maximize customer value and
gain a competitive advantage in the marketplace.

• By managing the supply chain, companies can cut excess costs and deliver products to the consumer
faster.
• Good supply chain management keeps companies out of the headlines and away from expensive recalls
and lawsuits.
• The five most critical elements of SCM are developing a strategy, sourcing raw materials, production,
distribution, and returns.
• A supply chain manager is tasked with controlling and reducing costs and avoiding supply shortages.
• Supply chain management is the practice of coordinating the various activities necessary to produce
and deliver goods and services to a business’s customers.
• Examples of supply chain activities can include designing, farming, manufacturing, packaging, or
transporting.

How SCM Works?
• Supply chain management (SCM) represents an effort by suppliers to develop and implement supply
chains that are as efficient and economical as possible.
• Supply chains cover everything from production to product development to the information systems
needed to direct these undertakings.
• Typically, SCM attempts to centrally control or link the production, shipment, and distribution of a
product.
• By managing the supply chain, companies can cut excess costs and deliver products to the consumer
faster.
• This is done by keeping tighter control of internal inventories, internal production, distribution, sales, and
the inventories of company vendors.

Stages of SCM
In SCM, the supply chain manager coordinates the logistics of all aspects of the supply chain which
consists of five parts:
• The plan or strategy
• The source (of raw materials or services)
• Manufacturing (focused on productivity and efficiency)
• Delivery and logistics
• The return system (for defective or unwanted products)

Why SCM?
• Supply chain management is important because it can help achieve several business objectives.
• Controlling manufacturing processes can improve product quality, reducing the risk of recalls and
lawsuits while helping to build a strong consumer brand.
• At the same time, controls over shipping procedures can improve customer service by avoiding costly
shortages or periods of inventory oversupply.
• Overall, supply chain management provides several opportunities for companies to improve their profit
margins and is especially important for companies with large and international operations.

Elements of SCM
1. Planning
2. Sourcing raw materials
3. Manufacturing
4. Delivery
5. Returns.
The planning phase refers to developing an overall strategy for the supply chain, while the other four
elements specialize in the key requirements for executing that plan.

Ethics and SCM
• Ethics has become an increasingly important aspect of supply chain management, so much so that a set
of principles called supply chain ethics was born.
• Consumers and investors are invested in how companies produce their products, treat their workforce,
and protect the environment.
• As a result, companies respond by instituting measures to reduce waste, improve working conditions,
and lessen the impact on the environment.

General Ledger (GL) Systems
• The General Ledger (GL) is the primary accounting record for a business.
• The General Ledger (GL) module is the heart of finance package of an ERP system.
• It tracks all financial transactions and is used to generate the company’s financial statements, including
the Income Statement and Balance Sheet.
• The GL summarizes the organization’s various financial accounts and transactions, such as accounts
receivable, accounts payable, fixed assets, and inventory.
• General Ledger maintains the charts of accounts and controls financial periods, ledgers, allocations, assets
and liabilities, and more.

Components of GL
1. GL master data set up.
2. GL integration set up with logistics modules.
3. Period and year closing.

1. GL Master Data Setup
• It is the setting up chart of Accounts, which is a complete structure of ledger accounts used by the
organization.
• Chart of Accounts can be flexibly structured both at a parent and individual company level.
• Chart of Account may also be defined separately for statutory purpose as well as well as for the purpose
of reporting to management.
• Another important parameter of GL is transaction type which identifies different categories of
transactions such as journal voucher, sales invoice, cash, and corrections.
• Other important parameters of GL are i) parent company and company parameters (this will contain
accounts for profit and loss, currency fluctuations etc. ii) Periods (Fiscal and Tax), iii) Tax code by
countries

2. GL integration set up with logistics modules
Integration mapping scheme needs to be defined for posting of logistics transactions into finance.
Examples of logistics transactions (for different transaction origins) that result in a corresponding financial transaction and for which corresponding
chart of accounts are needed to be defined, are given below:
Purchases –
i) Making and releasing of a purchase order
ii) receiving materials against the purchase order
iii) inspection and approvals of the received materials
iv) registration of the supplier invoice in logistics.
Sales –
i) Making of a sale order
ii) releasing of the same to warehousing
iii) issuing material against the resultant warehouse order
iv) release the issue order to invoicing.

Inter Depot Transfers –
i) Making of an inter-depot transfer manually or transfer the same from planning
ii) issue materials from the issuing warehouse
iii) receiving materials in the receiving warehouse.
Issues for subcontract orders –
i) Making of a production order
ii) making subcontract purchase order based on the production order
iii) initiate inventory issue to the subcontractor,
iv) issue of inventory
v) receive subcontracted item
vi) completion the production order
vii) closing the production order.

3. Period and Year Closing
• If a period or year is past its end date, it needed to be closed and the result is to be posted in next period/
year.
• Before closing any period it is necessary to check the status of the period.
• Next, auditing, reconciliation, passing of final correction entries and rebuilding of ledger history is
carried out.
• In the last part of this process, closing of the periods, final closing of the periods and closing the year
and and archiving of data is done.

Human
Resource
Management
Systems (HRM)

HRM
• The process of acquiring, training, appraising, and compensating employees, and of
attending to their labor relations, health and safety, and fairness concerns.
Organization
• People with formally assigned roles who work together to achieve the organization’s
goals.
Manager
• The person responsible for accomplishing the organization’s goals, and who does so by
managing the efforts of the organization’s people.

1–27
The Management Process
Planning
Organizing
Leading Staffing
Controlling

Copyright © 2011 Pearson Education, Inc.
publishing as Prentice Hall
1–28
Human Resource Management Processes
Acquisition
Training
Appraisal
Compensation
Labor Relations
Health and Safety
Fairness
Human
Resource
Management
(HRM)

Tasks of HR Manager
• Conducting job analyses
• Planning labor needs and recruiting job candidates
• Selecting job candidates
• Orienting and training new employees
• Managing wages and salaries
• Providing incentives and benefits
• Appraising performance
• Communicating
• Training and developing managers
• Building employee commitment

Mistakes
• Hire the wrong person for the job
• Experience high turnover
• Have your people not doing their best
• Waste time with useless interviews
• Have your firm in court because of discriminatory actions
• Have some employees think their salaries are unfair and inequitable relative to others in the
organization
• Allow a lack of training to undermine your department’s effectiveness
• Commit any unfair labor practices

Basic HR Concepts
• The bottom line of managing:
Getting results
• HR creates value by engaging in activities that produce the employee behaviors
that the organization needs to achieve its strategic goals.
• Looking ahead: Using evidence-based HRM to measure the value of HR
activities in achieving those goals.

1–32
Line and Staff Aspects of HRM
• Line Manager
• Is authorized (has line authority) to direct the work of subordinates
and is responsible for accomplishing the organization’s tasks.
• Staff Manager
• Assists and advises line managers.
• Has functional authority to coordinate personnel activities and
enforce organization policies.

1–33
Line Managers’ HRM Responsibilities
 Placing the right person on the right job
 Starting new employees in the organization (orientation)
 Training employees for jobs that are new to them
 Improving the job performance of each person
 Gaining creative cooperation and developing smooth working relationships
 Interpreting the firm’s policies and procedures
 Controlling labor costs
 Developing the abilities of each person
 Creating and maintaining department morale
 Protecting employees’ health and physical condition

1–34
Human Resource Managers’ Duties
Line Function
Line Authority
Implied Authority
Staff Functions
Staff Authority
Innovator/Advocacy
Functions of
HR Managers
Coordinative
Function
Functional Authority

1–35
Human Resource Specialties
Recruiter
EEO coordinator
Labor relations
specialist
Training specialist Job analyst
Compensation
manager
Human
Resource
Specialties

1–36
New Approaches to Organizing HR
Transactional HR
group
Corporate
HR group
Embedded
HR unit
New HR Services Groups
Centers of
Expertise

1–37
Trends Shaping Human Resource
Management
Globalization
and Competition
Trends
Technological
Trends
Indebtedness
(“Leverage”) and
Deregulation
Trends in the
Nature of Work
Workforce and
Demographic
Trends
Economic
Challenges and
Trends
Trends in HR
Management

1–38
FIGURE 1–4 Trends Shaping Human Resource Management

1–39
Important Trends in HRM
The New HR
Managers
High-Performance
Work Systems
Strategic
HRM
Evidence-Based
HRM
Managing
Ethics
HR
Certification
Human
Resource
Management
Trends

1–40
Meeting Today’s HRM Challenges
Focus more on
“big picture”
(strategic) issues
Find new ways to
provide
transactional
services
The New Human Resource
Managers
Acquire broader
business
knowledge and
new HRM
proficiencies

1–41
TABLE 1–2 Some Technological Applications to Support HR
Technology How Used by HR
Application service providers
(ASPs) and technology
outsourcing
ASPs provide software application, for instance, for processing
employment applications. The ASPs host and manage the services
for the employer from their own remote computers
Web portals Employers use these, for instance, to enable employees to sign up
for and manage their own benefits packages and to update their
personal information
Streaming desktop video Used, for instance, to facilitate distance learning and training or to
provide corporate information to employees quickly and
inexpensively
Internet- and network-
monitoring software
Used to track employees’ Internet and e-mail activities or to monitor
their performance
Electronic signatures Legally valid e-signatures that employers use to more expeditiously
obtain signatures for applications and record keeping
Electronic bill presentment
and payment
Used, for instance, to eliminate paper checks and to facilitate
payments to employees and suppliers
Data warehouses and
computerized analytical
programs
Help HR managers monitor their HR systems. For example, they
make it easier to assess things like cost per hire, and to compare
current employees’ skills with the firm’s projected strategic needs

1–42
High-Performance Work Systems
• Increase productivity and performance by:
• Recruiting, screening and hiring more effectively
• Providing more and better training
• Paying higher wages
• Providing a safer work environment
• Linking pay to performance

1–43
Evidence-Based HRM
Actual
measurements
Existing
data
Providing Evidence for
HRM Decision Making
Research
studies

1–44
Managing Ethics
• Ethics
• Standards that someone uses to decide what his or her conduct
should be
• HRM-related Ethical Issues
• Workplace safety
• Security of employee records
• Employee theft
• Affirmative action
• Comparable work
• Employee privacy rights

1–45
HR Certification
• HR is becoming more professionalized.
• Society for Human Resource Management (SHRM)
• SHRM’s Human Resource Certification Institute (HRCI)
• SPHR (Senior Professional in HR) certificate
• GPHR (Global Professional in HR) certificate
• PHR (Professional in HR) certificate

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