1. PRODUCT LIFE CYCLE MANAGEMENT
MODULE-1
INTRODUCTION TO PLM AND PDM
Prepared By
Prof.G.M.Swamy
Department of Mechanical Engineering
JSS Academy of Technical Education
Bangalore-560060
Mob:9739125899
E Mail : gmswamyjssateb@gmail.com
2. MODULE – 1
Introduction to PLM and PDM
Introduction to PLM: Production Lifecycle Management,
briefly abbreviated as PLM, emerged in the early 21st
century as a new model for manufacturing companies to
manage their products across their lifecycles, right from the
product design and manufacture, to service and disposal of
the product. PLM is a software enabled strategy that
manages all data relating to the design, functioning,
production, support, and ultimate disposal of the product.
Anybody working or involved with the product can access
the data or information of a single product or all of a
company’s products thereby allowing the user to have a
broader vision about the details of the product/s. PLM helps
in managing the following:
3. Products and parts, including those which are used
for tooling, inspection, calibration, training,
operation and maintenance.
Documents that define the performance, functional
and physical attributes of a part.
Ancillary documents that are used for training,
operation and maintenance of a part/product.
Electronic computer files that support the product’s
design, development, production and subsequent
post-production phases.
Material content, including reporting on legally-
prescribed or hazardous substances and the
identification of part recycling and disposal methods.
4. PLM concepts were first introduced in the automotive,
aerospace, military, nuclear, and medical industries where
safety and control features were given much prominence.
These industries originated the discipline of Configuration
Management (CM), which evolved into Electronic Data
Management Systems (EDMS), which then further
evolved to Product Data Management (PDM).
Over the last ten years, manufactures of instrumentation,
industrial machinery, consumer electronics, packaged
goods and other complex engineered products have
discovered the benefits of PLM solutions and hence are
adopting the concepts of PLM in order to support their
products and services, and maximize the business impact
in global market.
PLM improves productivity, quality, efficiency and revenues
for the organization by controlling all the aspects of the
product throughout its life cycle.
5. HISTORY OF PLM
The inspiration for the strategic business approach of PLM first
came from American Motors Corporation in 1985.
The auto-manufacturer was looking for a way to speed up the
production process in an effort to complete with bigger
competitors.
A new strategy was developed to include all the information
related to design, functional areas, and manufacturing in a central
database that can be accessible to all the organizational people
involved in the analysis and development of the product.
This allowed for issues to be resolved faster and reduced costly
engineering changes.
With new ideas and technological advancements, the concept was
shaped in to a model and today all companies irrespective of their
functional areas have implemented the concept of PLM to
optimize all aspects of their product development processes and
compete in a better way with their counterparts.
6. NEED FOR PLM
To meet the challenges of today’s global business environment,
companies with complex products and processes need to manage data
and information of the product, throughout its life cycle – right from its
conceptual design to service and disposal of the product.
Maintaining a database containing large amount of information and
making this information to be available and accessible to the right
person at the right time is a very complex and tedious task.
Hence it becomes necessary that business processes, engineering,
software development, design, analysis and the other responsibilities that
are a part of an organization’s operation need a better model to support
product development.
Product Life Cycle Management is adopted to serve the purpose.
It is an integrate information drive approach, comprised of people,
process/practices, and technology to all aspects of a product’s life right
from its design and manufacture, to service and disposal of the product.
PLM manages data, people, business processes, manufacturing
processes, and anything else pertaining to a product, thereby facilitating
better communication among these working on/with the product.
7. PRODUCT LIFE CYCLE MODEL
While many people view and define PLM in a different way from others, there
is one common goal, in the concept of PLM. In this regard, PLM is defined as
follows:
Product Life Cycle Management (PLM) is defined as an integrated
information-driven approach, comprised of people, process/practices, and
technology to all aspects of a product’s life, right from its design and
manufacture, to service and disposal of the product. In simple words, is a
systematic approach in managing the series of changes a product goes
through, right from its design and manufacture to its ultimate retirement or
disposal.
To be aware of the entire life of a product, there is a need to understand about
all the aspects involved in the development of the product.
The various aspects include: people, process and practice, and the technology
involved, all the interlinked together for synchronous product development.
To help in the understanding of PLM, visual models have been developed to
understand the broad concepts and the relationships existing between the
various aspects of PLM.
The following diagram represents the product life cycle model in its simplest
form.
8. At the center of the model PLM is the information
core representing the necessary data and information
about the product, right form its conception to
disposal.
Anybody working or involved with the product can
access information and knowledge from the
information core.
Around the core are the functional area that comprise
a product’s life cycle.
These functional areas are based on how the
organization divides up the major categories of a
product’s life, say for example, right from its
conception, design, build, support, and dispose.
The information core is separate from the functional
areas that use it.
10. Phases of PLM:
As shown in the above diagram, there are five phases in a product’s life
cycle model and in each phase the product is in a different state. These
phases as discussed in the following help an organization to develop
and maintain an effective PLM process.
1) Create (Conceive, Plan and Specify):
The first phase starts with the product requirement analysis and
planning.
For example, the functions the product must perform, its features, and
the requirements the product must meet.
This conceptualization of the product is based on the idea or
requirement of a company, customer, market, or regulatory bodies
viewpoint.
In parallel, the initial conceptual design work is performed by defining
the aesthetics of the product together with its main functional aspects.
The requirement analysis may be, for example, a ladder, made of a
certain material and height, must be light in weight and withstand
suitable weight, provide safety and easy to handle and store.
The first phase must ensure that all the components that make up the
product are fully defined accordingly.
11. 2) Design (Define, Test and Validate):
Product design is based on the conceptualization of the product.
It takes into account the details of how the product will perform its
intended function in an efficient, safe, and reliable manner.
The product also needs to be capable of being made economically and
to be attractive to the targeted customers.
Keeping these things in view, the detailed design and development of
the product starts, and all the components that make up the product are
fully defined in a mathematical based model or CAD (Computer
Aided Drafting) specification.
In some cases, prototypes of the model are also designed.
It is important to ensure at this stage that all the components fit
together in an integrated system and that the system is inherently
consistent.
In addition, various simulation tests like CAE (Computer Aided
Analysis), CAQ(Computer Aided Quality for dimensional tolerance
analysis), etc., are carried out to ensure the product really meets the
requirements specified during the conceptualization stage.
In case, if the product does not meet the requirements, the same is
revalidated, optimized, and re-designed accordingly.
12. 3) Build (Procedure, Manufacture, and Assemble):
The third phase involves the method of
manufacturing the product.
The design of the product must be analyzed and the
materials listed in the Bill of Materials (BOM)
must be procured.
Further, the Bill of Process (BOP) must be
developed to specify the various operations and the
sequence of operations that are to be carried out in
order to manufacture the desired part.
Once the components are manufactured, their
geometrical form and size are checked and verified
as per the design specifications.
Individual parts are then assembled in a sequence
to develop the complete product.
13. 4) Support (Promote, Market, and Sell):
o The next phase is the sales and distribution activities.
o The supporting team initially builds awareness of the product among the
potential customers though advertisements, personal demonstrations, or
through any other forms of media.
o The role of supporting team extends to many activities from strategic to
tactical skills to promote, market, and sell the product.
5) Service (Use,Maintain, Service & Disposal)):
The final phase of the lifecycle involves service and support information for
repair and maintenance, as well as waste management/recycling information.
This helps customers to increase the length of the product life cycle.
Further, there is an end-of-life to every product, whether it is disposal or
destruction of material objects or information, which needs to be defined and
strategized accordingly.
If a product reaches end of life sooner than the expected, analysis need to be
done in order to prevent such a short life by considering various factors right
from the product design, manufacturing usage and service of the product.
14. OPPORTUNITIES AND BENEFITS OF PLM
PLM offers many opportunities and benefits to the company as discussed in the
following:
Opportunities of PLM
PLM enables companies to take advantage of the many opportunities available
in the current technological era. A few of them are listed below:
a) PLM enables development and support of new products and services.
b) PLM redefines the technological aspects and processes in developing
smart or intelligent products.
c) With PLM, there is an increase in the number of potential customers. As
the population grows, the need for special and better products also grows.
d) PLM enables the Internet, World Wide Web and Grid to offer
opportunities for new products and services, and new ways to develop,
sell and support products. New product creates new markets, and hence
better opportunities for sales and growth.
e) PLM helps to maximize the business impact in global market.
f) Environmental requirements and the desire for sustainable development
will open up new opportunities, in particular for a product’s end of life.
15. Benefits of PLM
PLM provides benefits throughout the product’s life cycle. A few of them are listed below:
a) PLM provides entire information about the product, right from its conception to
disposal. PLM thus gives an insight into the critical processes.
b) PLM manages data, people, business processes, manufacturing processes, and
anything else pertaining to a product. This leads to better communication among
those working on/with a product.
c) PLM speeds up the production process thereby minimizing quick launce of products.
d) PLM helps the company to improve effectiveness, efficiency, and control, throughout
the entire product life cycle.
e) Better quality, reduced scrap and product related costs, and greater productivity
leading to improved profits.
f) PLM helps to capture customer requirements in a better way, which in turn leads to
development of customer focused products leading to growth in market share.
g) Prevents future product failures through knowledge of past failures leading to greater
efficiency.
h) Provides an ability to quickly identify potential sales opportunities and revenue
contributions.
i) Savings through the complete integration of engineering work flow.
j) The biggest benefit is that, one can stream line the whole process of designing,
developing, manufacturing, marketing & refining the product. Any body involving the
product development can run the entire operation from one place, with out reducing or
changing between programs or providers.
16. Components of PLM:
PLM defines & includes various components that are necessary to transform
ideas into products, apart from satisfying companies objectives, customer
requirements, environmental objectives and also comply with certain
regulations.
The components of PLM are listed are discussed briefly as follows:
Product & Product Data: Define product, Specifications & process.
Organizational structure: To develop & support the product through out
product life span.
Business processes & working methods : Describe activities, tasks &
processes.
Information systems: Identify people & information systems to support
product.
Interfaces & Standards: Interface with other business activities & systems.
17. a) Product & Product data:
• A product may be a single part or number of parts assembled
together in order to perform a certain objective.
• The term product data includes all data and information
related both to the product and the processes that are used to
imagine, design, produce, use, support and dispose the
product.
• The data related to the product may be in the form of technical
specification, specifications for manufacture and development,
Bill of Materials required for building the product, costs
involved in creation and launching the product, service
required for product, details regarding future modifications, or
any other information related to the product.
• The product data is created in a suitable format, especially
making use of computers and related softwares, so that the
data can be used throughout the product life cycle by all
people in the organization who are working on/with the
product.
18. b) Organizational Structure
* Organizational structure refers to the way that an organization
arranges people and jobs(tasks) so that its work can be
performed and its goals can be met.
* Within the organization, the structure might consist of
individual departments with specific names like production
department, quality department, human resource development,
marketing department, etc., and a group of people associated
with each department coming under the guidance of a single
head or decision maker.
* While outside the organization, contractors, sub-contractors,
suppliers, partners, customer suppliers, retailers, etc., may be
created accordingly.
* The structure varies depending on the company and the services
offered.
* However, a clearly established structure helps in grouping
people, information, tasks, and work flow to enable an effective
and efficient way of developing, manufacturing, and supporting
products across its lifecycle.
19. c) Business processes and Working methods:
→Business processes can be imagined as a set of related
activities or tasks, which are designed to take the clearly
defined inputs and transform them into a specific output.
→These inputs are made up of all of the factors which
contribute to the added value of a service or product.
→These factors are categorized into management processes,
operational processes, and supporting processes.
→Management processes govern the operation of a particular
organization’s system of operation.
→Operational processes constitute the core business.
→Supporting processes such as human resources and
accounting are put in place to support the core processes.
→The manner in which the business processes are organized
determines the success of an organization.
20. →Business Process Management (BPM) is a
management discipline aimed at describing and
managing the business processes in an organization.
→The goal of Business Process Management is to
achieve the organization’s objectives by aligning the
business processes with the objectives and to
continually improve these processes for an overall
organizational improvement.
→Working methods describe regarding the specific
instructions on how to safely perform a work related
task, or operate a piece of plant or equipment.
→Application of continuous improvement principles in
companies leads to the use of a set of methods and
tools in order to maximize levels of productivity
efficiency, product quality and cost reduction.
21. d) Information Systems:
Information systems are made up three distinct elements: people, processes, and
technology as discussed briefly in the following:
People: PLM requires the participation of many people of various skills from
throughout an extended enterprise, each required the ability to access and
operate on the inputs and output of other participants. People may include
outside the company or within the company, however all of them have a role to
manage a product across its life cycle. Some people have limited capabilities,
while some equipped with robust capabilities capable of accomplishing
complex tasks and, under uncertain circumstances. Irrespective of their
capabilities, it is the part of the organization to educate, train and support the
people so as to engage them in efficient goal achievement process.
Processes: A process refers to a procedure, or a particular course of action
intended to achieve a result. In each phase of the product lifecycle there are
processes which may be specific to a product or project, or to an organization.
They could include alliance management, contract preparation and review,
delivery, design control, disposal, document control, engineering change
management, handling inspection, new product development, packaging
process control, product identification, product modification, production,
project management, purchasing quality assurance, quality control, recycling,
service provision, servicing storage, test, traceability and training processes.
PLM enables all the product –related processes to be carried out in a coherent
way.
22. Technology: Technology refers to the collection of techniques, skills, methods and processes used in the
production of goods or services, or in the accomplishment of certain objectives, such as scientific
investigation. The information technology in PLM includes the data or information from manual paper
cards and records to sophisticated computer and software applications and systems, which enables
people with in the organization to perform their processes and practices in a much more efficient manner.
The different types of information included in PLM are: analytic modes, as-designed, as-built, as-
ordered, as-delivered, as-installed and as-maintained configurations; assembly drawings, bills of
materials, CAD geometry, estimating and costing data, customer requirements, design specifications,
engineering drawings, existing product designs, factory layouts, field failure reports, flowcharts,
machine libraries, maintenance information, machining related programs, purchasing information;
quality assurance data, test data files; test results; tool and fixture designs; user guides; user manuals, etc.
e) Organizational Structure
Since many systems are available to improve the activities of the product workflow, and also many
applications systems being used, there is a need for interfaces to enable these systems to work together
.
The PLM product interface allows access to documents, design data, and other information in a
controlled manner thereby allowing a better communication with respect to all aspects of product
development.
Product Lifecycle Management solutions support a wide range of critical standards issued by
government regulatory bodies, professional engineering, manufacturing, quality, and environmental
societies.
For example, the geometric dimensioning and tolerance (GD&T) standards need to be adopted during
the design stage, the process planning and bill of materials standards for manufacturing, the ISO 9000
set of standards for quality management and quality assurance, etc.
These standards provide guidance and tools for companies and organizations who want to ensure that
their products and services consistently meet customer’s requirements, and that quality is consistently
improved.
23. DIFFERENT VIEWS OF PLM
An organization can have many different people, across many different titles and levels. It is a
natural tendency that people have different views because they have different sets of
information or knowledge about a particular topic or subject when viewed. This is true with
respect to PLM also, because numerous activities are involved in the lifecycle of a product
from cradle to grave, including the involvement of different people with multiple
levels/departments across the organization. The different views of some common people in
an organization with respect to PLM are briefed as follows:
1) Chief Executive Officer (CEO): CEO holds the highest ranking and ultimately
responsible for taking managerial decisions. PLM initiative should be led by the CEO,
because all managers will be supportive to the CEO’s leadership. However owing to his
many other responsibilities like setting the company’s directions, objectives, strategies,
organizational structures, plans and budgets, etc., he finds little time available for the
PLM initiative and hence he intends to focus his precious time on activities where the
CEO adds most value. The successful use and speed at which the organization can obtain
the potential benefits from PLM has not been fully understood by the CEO.
2) Business planning manager: Business planning managers are involved in maintaining
business operational and financial objectives like tracking down numerical figures
resulting from company costs, sales, market share, tax rates, and the like. Since full
implementation of PLM takes many years and affects many functions and people, the
related expenses need to be included in company budgets and investment plans. Business
managers think that instead of investing money and expecting paybacks after a long
duration, it is better to focus on cutting costs, build customer and marketing strategies for
better product sales and revenues resulting from short periods. In most cases, PLM is
considered as an investment, however it is not so: PLM is the transformation of product
development. People fail to understand the concepts and benefits of PLM.
24. 3) Functional manager: Managers running a functional department such as
engineering or manufacturing live in the real world and expect to produce
instant results. As a result, they show little interest in benefits of PLM that
may appear in two or three year’s time. Their primary concern is to solve the
day-to-day problems related to manufacturing and set the objectives of
reducing costs through scrap and rework, and improving productivity. They
are least bothered about how these targets can be effectively met by PLM.
4) Marketing manager: Marketing managers typically get involved in their
routine work process of planning and executing the conception, pricing,
promotion, and distribution of products. They believe that their targets can be
best achieved by engineers who create the products and as such they claim
that PLM should be the responsibility of design engineers. They tend to
prioritize on marketing strategies rather than analyzing the benefits of PLM in
marketing.
5) Workers: Workers take the orders and instructions from their superiors and
try to complete the assigned job within the stipulated time. In many cases, the
management or superiors ignore their suggestions for better systems or
processes, and as such they feel that their skill and talents are not utilized in a
proper way. They think that PLM has nothing to do with their job or career.
At the beginning of PLM initiative, it is common for people to have different
views and opinions. However, as a first step, it is important for an
organization to get alignment of all the people to have a common view of
PLM so that the benefits and values necessary to push the organization to a
new competitive level are identified. Otherwise, the invested time, efforts,
and money will be wasted.
25. PLM FEASIBILITY STUDY
Feasibility study is usually conducted in the initial conceptual or idea stage
of a product development. The purpose of feasibility study is to
identify the potential problems and to determine whether the idea
related in developing or modifying a product will work or not. The
feasibility study should be concluded in the form of a report so as to
provide evidence for a project’s effectiveness and to give supportive
reasons for undertaking the project for developing or modifying a
product. The conclusions will also discuss methods on how a proposed
idea can succeed. A PLM feasibility study typically consists of the
following areas:
1) Business/ Product description: The study mainly focuses on the
objectives of organization, methodology, facilities and equipments
available, business process, people, purpose of the product, its features
and life cycle, product delivery, legal issues related to product, etc.
Studies related to the product will be based on the forecast of the
existing and future demand or usage of the product.
2) Market feasibility: The study mainly focuses on the current and
future market potential, product demand, competition from other
companies, sales estimations and prospective buyers. Market analysis
is critical to the success of a product and the organization.
26. 3) Technical Feasibility: The study focuses on the technology
needed for the product development, resources available to
the organization, materials and labors required, software
and hardware requirements, outsourcing details, etc.
4) Organization feasibility: The study focuses on the
professional background of the people in the organization,
their capabilities and skills for accomplishing the tasks,
organization’s legal structure, support required, etc.
5) Financial/Economical feasibility: The study focuses on
the break-up and total estimated cost involved in product
development, amount of funding or start-up capital needed,
available sources of revenues, return on investment or
positive economic benefits to the organization, investment
for marketing products, and sensitivity in the repayment
capability to factors like time delays, increase in
materials/labor costs, adverse economic conditions, etc.
27. INTRODUCTION TO PLM STRATEGY
Strategy refers to a high level plan in order to achieve one or more goals with the
available resources. For example, in the military environment, strategies include
control of the seas, control of the air, and control of the land region, attacking
with speed or strength, cutting down the enemy’s communication lines or supply
lines and so on. PLM is a strategic business approach that enables companies to
achieve greater profitability form their products. PLM success starts with PLM
strategy, i.e., a plan that can help the organization attain its business objectives,
and then establishing the governance and the continual executive leadership
needed to facilitate success over the long term. The company can be made to
follow a path with the greatest chance of success, as measured by revenue growth
and meeting the challenges presented by the business environment, including the
competitors. A good, well-defined and well-communicated PLM strategy is
important for the following reasons:
1) Show how to achieve PLM vision and objectives
2) Show how PLM resources will be organized, managed and used
3) Describe policies governing use and management of PLM resources
4) Make sure everybody knows about the happenings, and
5) Make sure all resources are aligned in the right direction
The typical resources addressed by a PLM strategy include: Products, Product data,
IT applications, Processes, Methods, People, and Equipment.
28. IMPACT OF PLM STRATEGY
• The question of the impact of PLM strategy has been
examined by PLM research firms in order to attempt to
quantify the effect of developing a PLM strategy.
• The following diagram illustrates the different areas that
can cost organizations huge amounts of money that would
be impacted by a coherent areas that can PLM strategy
executed across the organization.
• Also shown in the following diagram, the three levels of
impact on the PLM playback schedule.
• PLM pay back schedules vary both in magnitude and in
time frame depending on the scope of PLM initiatives.
• Short term PLM projects have a 1-for-1 pay payback, mid-
term projects have 10-for-1 payback, and long term
projects have 100-for-1 payback.
30. • Short-term PLM returns are obtained by
implementing applications, primarily within
functional areas, while mid-term returns are obtained
by implementing systems that cross two-functional
areas, and long term higher payback is generated by
developing and implementing an overall strategy for
PLM.
• One of the reasons for substantial payback to
strategy is that, developing strategy does not require
a huge consumption of resources.
• Every company, how ever big, have limited
resources, but with a well defined strategy, these
resources can be organized, managed, and used
efficiently and effectively for profitability of the
organization.
31. ELEMENTS OF PLM STRATEGY
Discussed below are the four elements that are part
of a strategic plan for PLM.
1) A vision of tomorrow
2) A realistic assessment of today
3) Plan for bridging the gap between the reality of
today and vision of tomorrow
4) Required capabilities and resources to carry out
plans
32. 1) A vision of tomorrow: The most important component of strategic plan is a vision of
tomorrow, which provides people to think about the organization’s purpose and
aspirations of the future. It provides a plan and direction in accomplishing anything new
in the future. PLM benefits from an approach like this, because it is only when we take a
new and discontinuous look at the future that we might perceive novel and creative uses
of information that are most simply extrapolations of what has been done in the past.
2) A realistic assessment of today: In order to plan a vision for tomorrow, there needs to be
a realistic assessment of today. Being unrealistic and delusional about our current
situation and capabilities may give a faulty starting point towards the company’s vision of
tomorrow. The strategy is to develop and maintain all the necessary information about the
people , product, customers, competitors, market, and government’s initiatives, in order to
make informed decisions for the changing environment.
3) Bridging gap between today and vision of tomorrow: The plan for bridging the gap
between the reality of today and vision of tomorrow is to include three aspects as listed
below:
People
Processes and Practices, &
Technology
All the three elements have to come together in a coordinated plan for an organization to get from where it is
today to where its vision is for tomorrow. All of these elements are required if an organization is to
make this transition. Either one of the elements is not addressed, the entire plan suffers.
4) Capabilities and Resources required to carry out plans: Resources are needed to
enable the plan for PLM, while capabilities are required to execute the plan for PLM.
Organizations need to have assessment of their internal capabilities and a realistic view of
what their competitors, customers, and governments are doing. If they do not have the
resources and capabilities to carry out the plan, there is a little possibility of their realizing
their vision of the future.
33. Developing a PLM Strategy:
Developing a PLM strategy to achieve the PLM vision is a five step
process as discussed in the following:
1) Collecting information: In the first step, the information with which
the strategy will be developed is collected and assembled. A PLM
strategy can be developed by understanding fully the activities and
resources in the product lifecycle. This understanding must be based
on factual information rather on guesses and opinions. As the PLM
vision already contains information about the future, most of the
information to be collected must address the current situation as listed
below:
the associated targets, customer and innovation objectives, strategies,
details of resources, revenue sources, capabilities, strengths and
weaknesses
the environment in the company, in the industry, and in the market
key factors for success, trends, opportunities and threats.
2) Identifying possible strategies: In the second step, potential
strategies are identified, formulated, and described in terms of
resources, and the organization and policies to be applied to the
resources. The strategies chosen for PLM have to meet the objectives
of the company and at the same time be clear and simple to avoid
being complex and confusing for its implementation, thereby leading
to its failure.
34. 3) Selecting a strategy: In the third step, potential strategies are
evaluated and tested, and the most appropriate strategy is selected and
documented. This is ascertained by conducting SWOT (strength,
weakness, opportunities and threats) analysis. It is important that the
analysis be carried out on the basis of facts and opinions, rather on
guesses and theoretical assumptions.es and threats.
4) Communicating the selected strategy: A strategy becomes useless,
unless the people who are going to be involved are fully aware of it,
can understand and implement it. The fourth step involves
communicating the chosen strategy to the people who will be affected
or involved, viz., product developers, field engineers, customers,
company management, suppliers, regulatory organizations and so on.
5) Planning the PLM strategy: The fifth step involves detailed planning
followed by PLM implementation. The PLM strategy report must
contain a plan showing how the strategy will be implemented over the
length of the total duration for implementation. The structure of the
plan should follow that for the PLM framework, making it easier for
managers and other people to see how all the issues are linked and
will be addressed. The plan will also show the details of the
participating people and the manner in which the activities are
managed by them.
35. IDENTIFYING PLM STRATEGIES
• While developing a PLM strategy, several potential strategies are identified, formulated,
and described in terms of resources, and the organization and policies to be applied to
the resources.
• Some candidate strategies for PLM will be apparent from the organization’s current and
previous strategies, from those of competitor’s and other market players, and from
reading about military and business strategies.
• Sometimes a new strategy will be developed.
• In some cases a candidate strategy will be closely linked to the company’s business
strategy, like cost-leadership, follower low-cost variety, fast response time, partnering,
and process based strategies.
• For example, a cost-leader will be more interested in reducing manufacturing costs than
developing market-leading functionally for its products. Further , a strategy might be
based on customer-focus.
• In many cases, a candidate strategy will be developed by a pick & mix approach to
strategies found by above method.
• Whatsoever may be underlying focus, the strategies chosen for PLM have to meet the
objectives of the company and at the same time be clear and simple to avoid being
complex and confusing for his implementation, thereby leading to its failure.
• By identifying a PLM strategy, a company can be made to follow a path with the
greatest chance of success, as measured by revenue growth and meeting the challenges
presented by the business environment, including the competitions.
36. SELECTING PLM STRATEGY
• Of all the potential strategies formulated, the most appropriate strategy that
suits the present organization’s business activities need to be selected and
documented.
• However, selecting the appropriate strategy is based on an in-depth
understanding and testing of all the possible strategies.
• This is ascertained by conducting SWOT (strength, weakness, opportunities
and threats) analysis.
• Different authorities on strategy development use the SWOT analysis in
different ways.
• More often, the strengths and weakness apply to the organization for which the
strategy is being developed, or it may be defined for competitors also; while
the opportunities and threats are those of the current and future environment.
• Strengths and weaknesses are considered internal factors of the organization
that are not affected by outside interventions.
• The organization can easily act upon the characteristics of strength and
weaknesses.
• Conversely, opportunities and threats are considered external factors that
could have an impact on the business, project or product, and the organization
do not have any control over them.
• The SWOT analysis depends on asking questions and finding answers related
to each factor as listed in the following:
37. 1) Strengths: refer to the positive factors within our control and allow to have an
advantage over others.
What are the advantages of the product/service ?
What are the product advantages over similar competitors in market?
What strength points do people see in the product/service ?
What are the product’s unique selling factors ?
2) Weakness: refer to the negative factors within our control and that can put us at a
disadvantage over others.
What weakness could be improved in the design ?
What issues should be avoided ?
What are the factors that reduce product sales ?
Does the production process have limited resources ?
3) Opportunities: refer to the positive factors that are out of our control and that could
have an effect on us.
What are the opportunities for the new product ?
What are the technological trends to take advantage of ?
How can we turn strengths into opportunities ?
Are there any changes in the market or government which can lead to opportunities ?
Is there any gap in the market that is not being covered, leading to an opportunity for the
business?
4) Threats: refer to the negative factors that are outside of our control and that could
have an effect on us.
Who are the existing or potential competitors ?
What are the factors that can put business into risk ?
What issues can threaten the product on the market ?
Will there be any shifts in consumer behavior, government or market that can affect the product
success ?
38. The analysis should be as complete as possible
looking into all areas of relevance to the
organization.
A complete list would include information about
customers, competitors, suppliers, technology,
products, costs, cycle times, quality, information,
computer systems, management of change, human
resources, etc.
It is important that the analysis be carried out on
the basis of facts and opinions, rather on guesses
and theoretical assumptions.
Once the SWOT analysis has been carried out, the
next step is to select the best strategy and fully
document it.
39. IMPLEMENTING PLM STRATEGY
PLM is not something that can be implemented
overnight and as result, what is defined today may
not be appropriate tomorrow. The present section
deals with how PLM strategies should be defined
and implemented in a sustainable manner; one
that naturally addresses change.
Enterprise resource planning (ERP) is a part of PLM
and implemented in many organizations for its
successful operation. Thus we can look into this
system to see what separated successful
implementation from unsuccessful ones.
40. There are five success factors that are isolated from
companies that were successful in ERP project
against those that were not successful. These
include:
1) Top management is engaged, not just involved.
2) Project leaders are veterans and team members
are decision makers.
3) Third parties fills gap in expertise and transfer
knowledge.
4) Change managements goes hand in hand with
project management.
5) A satisfying mindset prevails.
41. Top Management is Engaged, not Just Involved
Engagement and involvement are two different things.
Top management involving director, senior management, vice president,
CEO, etc., should engage themselves in taking initiatives about cross-
functions, allocation of resources, decision about expanding resources
and responsibilities.
In many cases, top management never attend any of the meetings of the
committee.
In order to implement PLM initiatives real decisions about cross-
functional allocation of resources and responsibilities have to be made
effectively.
From the perspective of entire organization, final decision on how to
reallocate resources so that a minimal amount of resources spent for the
task will have to be made by the top management.
If the top management is not engaged in making these decision, status
quo prevails and no changes occurs.
Top management should take initiatives to boost revenue opportunities
and in cost saving decision making for success of any organization
engagement of top management is rather than just involvement.
42. Project leaders are Veterans and Team Member are Decision Makers
Before starting any project the project committee meeting will be held between the project
leader of different department and junior members of the department.
Project leaders should have deep knowledge and understanding of their departments and
functions and the ability to make decision for their organization.
Project leaders and experienced members of the various cross functional area should have
an awareness of aspects and issue that may rise during project work.
In any project, there will be cross functional issues.
Veterans of the organization should understand those issues and be more careful in
allocating resources to solve the issues once and for all.
Veterans of the organization should involve the junior team members in decision making
because team members can give lot of input or minimal changes required in the project
that may leads to saving time and effort.
Most of the organizations do not have the practice of involving junior team members in
taking decision.
By doing so, valuable time and effort will be lost.
For PLM to be successful within the organization, the team members should workout the
right allocation of resources, make the decision within the committee room, and then be
able to execute on those decisions and implement them.
If the committee members of the different departments have any issues, they process may
fail.
To implement PLM successfully in any organization project leader and team members of
all functional areas work together as a team in decision making in their organization.
43. Third Parties Fill Gaps in Expertise and Transfer Knowledge
Organizations who want to implement PLM would not have veterans or
expert persons in the field of PLM.
Therefore, seeking the expertise of a third party will definitely fill the
missing gap thereby improving efficiency and reducing the mistakes.
Most of the mistakes take place during development and implementation
stages of PLM project.
Since the software and other technology that enables PLM is so
specialized, the third party resource for PLM might very well be the
solution provider who provides the software.
The third part expertise will provide solution with ease to these problems
that may come across during different stages of the project.
Organizations before engaging the third part process consultant to
implement their PLM projects must make sure about the knowledge and
previous experience in implementing valuable projects.
Organizations should ensure that the third party not only help in
implementing PLM, not also transfer his knowledge regarding PLM.
44. Change Management Goes Hand-in-Hand with Project Management
PLM is a different way of doing things, especially as it
pertains to crossing functional boundaries.
Hence, the change management of the new processes and
practices that an organization requires needs to be closely
interlinked with the project management.
Once the organization have made mind to implement PLM,
the process and practices of the organization need to be re-
examined and modified in order to make the system work
smoothly without any bottlenecks.
The organization should look into all perspectives like
development of new process, re-evaluation of practice,
assessing people working with new system and support.
This change management should go hand-in-hand for any
organization to be successful.
45. A Satisfying Mindset Prevails
The final goal is to improve the overall organizational
activities by using different resources.
There are so many aspects of PLM that if one focus
on optimizing one aspects of it, we are letting out
other tremendous opportunities those we simple do
not have attention or resources to attack it.
With PLM projects, we need to set goals and attack as
many functional areas as possible that can return with
improved efficiency.
By linking all the functional areas in PLM and
effectively utilizing all the resources, we can increase
the efficiency and improve overall activities of the
organization.
46. INTRODUCTION TO PDM SYSTEMS
Product Data Management, briefly abbreviated as
PDM appeared as a response to the CAD (Computer
Aided Design) system users’ demands. A large
popularity and mass utilization of CAD tools in the
process of product development caused the
generation of huge amounts of data (2D drawing, 3D
models, analyses, specifications, etc.) describing a
product. Accessing these data, searching, updating,
forming archives, and exchange of the data presented
large problems to the people involved in product
development. This difficulty was overcome with the
use of PDM systems.
47. PDM system is the use of software to provide a structured way to orderly
and efficiently store, integrate, manage, and control both product data
and process related information in a single, centralized system and
make the data and information to be available to all the people in the
organization at any time and in the right format. Typical information
managed in the PDM system include, Computer Aided Design (CAD)
data, models, parts information, construction and manufacturing details,
material data sheets, cost comparisons, and other product notes and
documentation. PDM thus serves as a central knowledge location for
process and product history, and promotes integration and data
exchange among all people and business users who interact with
products, including project managers, engineers, sales people, buyers,
and quality assurance teams. Such a system minimizes the time in
tracking data and information related to the product, apart from
enhancing productivity and collaboration within the organization.
PDM can thus be defined as the function within the PLM that is
responsible for creation, management and publication of the product
data. Alternatively, PDM can also be defined as the discipline for
controlling information at the right time in the right format during the
entire PLM.
48. A few common benefits of PDM are listed as follows:
• Flexibility in operations throughout the organization.
• Enhances collaboration within the organization.
• Improves engineering workflow.
• Reduces overall costs. PDM implementation leads to
profitability.
• Increased management information.
• Reduced order lead time.
• Increased customer satisfaction.
• Reduced time-to-market.
• Increased production and product quality.
• Better use of people and processes.
• Meeting the increasing external requirements.
• Lifts corporate image in the global scenario.
49. MAJOR COMPONENTS OF PDM SYSTEMS
A PDM system mainly consists of the following
components:
1) Electronic vaults or data repositories
2) A set of user functions
3) A set of utility functions
4) Interfaces
5) Workflow management system
6) System Administration functionality
50. Electronic vaults or data repositories
PDM system uses an electronic vault as repository to
store and control all the data related to the product.
Some of the data is stored within the vault and some
of it can be externally generated. In both cases users
need not know the physical location of data, instead
they can use PDM to access the product information
through password protection. There are two types of
data stored in the repository. They are briefed as
follows:
1) Product Data: Product data is produced by various
applications as CAD, CAE etc. Examples of this
data are 3D-models, drawings, specifications and
maintenance records.
51. 2) Meta-Data: Meta data is “the data about data”. In PDM systems meta-data
is the data relating to PDM controlled information. Meta-data stores
information about data and documents related to the product, recording all
changes, releases on specific levels and their circulation in the company,
thereby allowing for easy data tracking and working with specific data. In
addition to data and document files, metadata is used for images, videos,
spreadsheets and web pages. Meta-data are usually saved in a PDM system
database, often called meta-data registry or meta-data repository. A few
examples of meta-data are listed as follows:
The meta-data of a CAD drawing file includes the following information:
drawing file number, title, date of creation, date of modification, date of
approval, standards and scale adopted, file size, location on a computer network
where the data was created, etc.
A text document’s metadata may contain information about how long the
document is, who the author is, when the document was written, a short summary
of the document, etc.
A digital image may include metadata that describes how large the picture is, the
color depth, the image resolution, when the image was created, and other data.
Meta-data can be created manually, or by automated information processing using
computers. Manual creation tends to be more accurate, allowing the user to input
any information they feel is relevant or needed to help describe the file.
Automated meta-data creation can be much more elementary, usually displaying
only information such as file size, file extension, when the file was created who
created the file, etc.
52. A Set of User Fuctions
User functions are divided into the following categories:
1) Document management: Document management together with
electronic data vault ensures that the product data is correct and up to
date, protected by simultaneous modifications by several users, and
retrievable at any time. The data stored in a particular file can be
retrieved for any modifications by using a check-out function in the
PDM system, and the user can store the modified file back into the
data base by using a check-in function. During the course of data
modification, the user can lock the particular file so as to prevent any
other users from modifying the same data; however the data can be
used for viewing in read-only-mode. Document management
maintains the recent data to be available to the user at any time.
2) Process and Workflow management: Process management defines,
and manages product configurations, part definitions, relationships
between data and data versions. It also controls review and approval
process of product data. This enables PDM to record every step in
process. While workflow management is used to control business
workflow or processes.
53. 3) Product structure management: Product structure
management facilitates the creation and management of
product configurations, part definitions, part relationship
attributes, bill of materials and ability to associate
product definition data to parts.
4) Classification management: Classification of parts
according to their attributes provides tools for searching
and retrieving standard parts and existing product data.
This is more efficient than looking parts from manuals
and catalogues. It also helps designers and engineers not
to “re-invent wheel” repeatedly.
5) Project/Program management: Project management
provides work breakdown structures and schedules, and
resources assignment and control.
54. Utility Functions
Utility functions support the user functions mentioned above and
also simplify the use of system for users. The various included
utility functions are briefed as follows:
1) Communication and notification: Communication and
notification function handles communications within PDM
system and also provides interfaces to external e-mail
systems. The automated on-line notification of critical
changes/events to all the concerned people helps to keep
everyone informed about the stat of the project.
2) Data transport: Data transport provides tools for moving data
between systems and to/and from other products.
3) Data translation: Data translation provides access to tools that
translate data between applications (PDM, CAD/CAM, etc.)
and formulas for various display and output devices.
4) Image services: Image services provide “viewing” capability
for reviewing and mark-up capabilities that will enable wider
audience than before to participate project easily.
55. 5) System administration: PDM system provides
system administrator tools to monitor, customize
and manage the system effectively. These
functions typically include:
o Access and change permission
o Authorizations
o Approval procedures
o Data back-up and security
o Data archive
o User interface layout
o Adding new functionality
o Integrating third-part applications
o Application integration
A brief introduction to application integration is provided
for better understanding of the utility function listed
above.
56. Application integration
• Integration with other application is an important feature of utility
function.
• Integration with authoring, visualization and other collaborative tools
are important to establish a single source of product data where
information is created once and used throughout the product
development process, and to electronically co-locate geographically
dispersed authors and consumer.
• There are integrations ranging from less complex integrations with text
editors to tight integrations with CAD/CAM and ERP systems.
• To integrate the text editor, for example, Word, Frame maker, includes
adding functions such as check-in and check-out of documents to the
text editor.
• This will support the user automatic transfer of documents without
manually work and less knowledge about the PDM system.
• Integrating CAD/CAM system is more difficult since a CAD/CAM
system manages various relationships between the parts, parts structures
and system specific relationships, a network of interrelated files.
• Integration with ERP systems includes transfer of parts structures with
attributes.
• Part data is critical for the manufacturing process.
57. Interfaces
Interface is the connection of data and information between
different working systems.
PDM applications need to share and exchange product data
such as part numbers, version numbers, product costs, etc.,
with other applications in the company.
Some interfaces may be provided by the vendor as part of the
PDM application, while others may be developed with the
Application Programming Interface (API) provided with most
PDM applications.
The user interface in PDM provides a standard, but tailor
made connection for users in order to share and communicate
with the data and information related to product development.
It supports user queries, menu-driven and forms-driven input,
and report generation.
The system interface in PDM interfaces for programs such as
CAD and ERP (Enterprise Resource Planning).
58. Workflow management system
Workflow management is a strategy for automating
business workflow processes, by means of a
software system. The aim of workflow
management is to streamline the components of
various office systems by eliminating unnecessary
tasks and the costs associated with the performance
of those tasks, and automating the remaining tasks
in a process.
System administration functionality
System administration functionality is used to set up
and maintain the configuration of the system and to
assign and modify access rights. The functionality
ensures that the uptime, performance, resources,
and security of the computers meet the needs of the
people related to the product development.
59. REASONS FOR IMPLEMENTING PDM SYSTEMS
The reasons to purpose for implementing a
product data management system is
threefold:
1) to ensure data integrity
2) to streamline process workflows, and
3) to facilitate configuration management
60. PDM ensures data integrity
Implementing an effective PDM system is critical because of any
new product yields enormous amount of product information which
must be documented, edited, reviewed, and approved.
Automating this documentation process with electronic product data
management system software allows people in the organization to
more proactively capture and manage critical product information,
and ensure that they receive the critical data throughout the product
lifecycle from a single system source.
PDM acts as integration tool connecting many different areas thereby
serving as a central knowledge location for process and product
history, and promotes integration and data exchange among all
people and business users who interact with products.
The right information is available to the right person at the right time
and in the right form.
This can form a basis for organizations to restructure their product
development processes and implement initiatives such as concurrent
engineering and collaboration product development.
61. PDM streamlines process workflow
PDM system can interact with people both internally and globally
working with product data according to the predefined processes of an
enterprise to achieve corporate objectives.
Repetitive workflows and processes can be programmed as part of a
PDM system to route data and work packages automatically, to control
and monitor processes, and to provide management reporting.
The PDM system also controls the process and procedures that manage
how changes are proposed, reviewed, and approved and incorporated
into a product and its associated data items.
For example, making copies of data, sending faxes, transporting
changes form one person, department, or office to the next, mailing
documents and packages overseas, etc., could be very difficulty with a
manual product data system.
Automating these processes with the help of PDM software can help
people improve and more easily manage essential PDM system
functions such as document identification revision control, supplier
source records, part attribute records, bill of materials, and engineering
change control with workflow.
62. PDM facilitates configuration management
Product data management system helps facilitate Configuration
Management (CM) and customer satisfaction.
Configuration management is a key driver of quality assurance
throughout the product lifecycle.
It is an important component of any product data management system.
Configuration Management is comprised of five key areas: planning
(deciding what to design/build), identification (what is actually being
designed/built), control (how baseline changes are being controlled),
status accounting (part numbers, serial numbers, and methods for
documenting items), and audits (verification methods used to ensure
compliance).
Product data management software provides the traceability (from
product design to product creation) that is necessary to satisfy the ISO
standards on the use of configuration management in industry.
As stated before, configuration management is directly related to quality,
and like quality, it must be built into the design and manufacturing
processes, as well as the product itself.
This is easily achieved with a robust product data management software
solution.
63. Financial Justification of PDM Implementation
In addition to investing time and money in developing
new products and improving productivity, working
conditions, corporate image, etc., there requires a
huge investment in implementing a PDM system
also. A frequent question arising from the top level
management is regarding the return time and money
for implementing a PDM system, and the typical
advantages that the organization can gain with PDM
system implementation. Hence there arises a need
to justify the implementation of PDM to be
profitable.
There are two major areas of PDM cost-justification to
describe. These include: revenues, and benefits.
64. Cost justification with respect to revenues
1) Reduction in labor costs due to the reduction in
the number of working staff.
2) Reduction in cost of materials used in products
and energy consumption in the process.
3) Reduction in cost arising form scraps, wastage,
storing or holding products during reworking,
repair, and returns.
4) Reduction in documentation and data transferring
costs, and
5) Reduction in penalty and warranty costs.
65. Cost justification with respect to benefits
1) Increase in the number of customers. PDM allows in
developing products for new customers. More customers
implies more profits.
2) Increase the product price paid by customers, for example,
by increasing product quality. PDM enables customers to
be charged increased prices.
3) Increase the range of products that customers can but, for
example, by improving product structure management.
PDM enables more customer specific variants.
4) Increase in the service price paid by customers, for
example, by using PDM to support additional services.
5) Increase the range of services that customers buy, for
example, by using PDM to support additional services.
6) Get customers to pay sooner. PDM enables developing
and delivering products faster.
66. PDM - AN ESSENTIAL ENABLER FOR PLM
• Product Data Management (PDM) evolved with the introduction of CAD (Computer
Aided Design) systems that required a database to store huge amounts of data resulting
form 2D drawings, 3D models, analysis, specifications, etc., describing a product.
• PDM is a design-focused technology that increases efficiencies within existing product
development processes by improving the management of product design data.
• PLM, on the other hand, is a strategic, process-centered approach that leverages PDM
and other technologies, along with consulting services to manage product lifecycles,
remake processes, and increase output.
• All PLM systems use some form of PDM system as the underlying data foundation on
which they operate.
• PDM updates all modifications related to data, people, and processes and enables the
right information to be available to the right person at the right time and in the right
form.
• Such a database in PDM system minimizes time, energy, and money, which otherwise
would not have been possible with the manual database system PDM implementation
leads to profitability, productivity, and quality.
• PDM can form a basis for organizations to restructure their product development
processes and implement initiatives such as concurrent engineering and collaborative
product development.
• The success of any product during its lifecycle development totally depends on the
PDM system.
• At the end, one can conclude that PDM is an essential enables for PLM.
