PLCM Module 1 Dr. S B Malur

STUDY MATERIAL
ON
PRODUCT LIFE CYCLE
MANAGEMENT
MODULE 1: INTRODUCTION TO PLM AND PDM
By
Dr. Shekharappa B Mallur

Professor
Department of Studies in Mechanical Engineering

University BDT College of Engineering
Davanagere- 577004, Karnataka
(A Constituent College of VTU, Belgaum)
Off.: 08192-250716: Fax: 08192-233412 http://www.ubdtce.org
PRODUCT LIFE CYCLE MANAGEMENT (17ME835) BY Dr. S B Mallur, Professor MODULE -01 Page 1
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM
University BDT College of Engineering, Davangere
Mechanical Engineering Department
Sub Name: PRODUCT LIFE CYCLE MANAGEMENT (17ME835)
Dr. S B Mallur, Professor, MED, UBDTCE, Davanagere
Subject Title PRODUCT LIFE CYCLE MANAGEMENT

Subject Code 17ME835 IA Marks 40
No of Lecture Hrs + Tutorials Hrs / Week 03 L Exam Marks 80
Total No of Lecture + Tutorial Hrs Hrs 40 Exam Hours 03
CREDITS 03
FACULTY DETAILS
Name Dr. SHEKHARAPPA B MALLUR
Designation : Professor Experience : : 31 Years
No. of times course taught: 01 Specialization: Production
Management
Total No of Lecture + Tutorial Hrs Hrs 40 Exam Hours 03
1.0 PREREQUISITE SUBJECTS
Sl. No Branch Semester Subject

1 Mechanical Engineering V Management & Entrepreneurship
2.0 COURSE OBJECTIVES

1. Familiarize with various strategies of PLM
2. Understand the concept of product design and simulation.
3. Develop new product development, product structure and supporting systems
4. Interpret the technology forecasting and product innovation and development in business processes.
5. Understand product building and Product Configuration.
3.0 COURSE OUTCOMES
Successfully completed this course, the student will be able to
CO Course Outcome Cognitive POs
Level
CO1 Explain the various strategies of PLM and Product Data L1, L4 PO1,P02,P04,
Management PO6.PO7,PO12
Describe decomposition of product design and model L4 PO1,P02,P04,
CO2 simulation PO7,PO12
CO3 Apply the concept of New Product Development and its L4 PO1,P02,P04,
structuring.
CO4 Analyse the technological forecasting and the tools in the L3 PO1,P02,P04,
innovation. PO6.PO7,PO12
CO5 Apply the virtual product development and model analysis L2,L4 PO1,P02,PO3,
PO6,PO12
Total Hours of instruction 40 Hours
Module No Lecture no Content of lecture
MODULE 1: INTRODUCTION TO PLM AND PDM
1 Introduction to PLM, Need for PLM,
2 Opportunities and benefits of PLM, different views of PLM,
3 Components of PLM, phases of PLM,

01
4 PLM feasibility study.
5 PLM strategies,
6 Strategy elements, its identification,
7 Selection and implementation.
8 Product data management,
9 Implementation of PDM systems
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM
University BDT College of Engineering, Davangere
Mechanical Engineering Department
Sub Name: PRODUCT LIFE CYCLE MANAGEMENT (17ME835)
Dr. S B Mallur, Professor, MED, UBDTCE, Davanagere
MODULE 1:
INTRODUCTION TO PLM AND PDM
Introduction to PLM, Need for PLM, opportunities and benefits of PLM, different views of PLM,
components of PLM, phases of PLM, PLM feasibility study. PLM Strategies, strategy elements, its
identification, selection and implementation. Product Data Management, implementation of PDM
systems. 08 hours
“Empowering the Future of Business”
INTRODUCTION TO PLM
1.0 Introduction:
Life cycle processes in today’s networked world, means bringing new products to market with less
expenditure of time and effort. PLM – Product Life cycle Management and Product Data Management
[PDM] are the useful tools for controlling product-related information as well as the lifecycle of a product.
The two acronyms PDM and PLM are closely associated; the main difference is one of scope and
purpose. Whereas PDM is mainly a set of tools and methods aimed at efficiently managing product data,
PLM is a holistic approach that uses a wide range of different concepts, technologies, and tools, which
extend to groups beyond the functions of a company or even a supply network in order to manage and
control the lifecycle of a product. Product life cycle considers the profitability of the product of during its
life cycle, where traditionally products are evaluated on yearly basis
which will help in decision making. Product life cycle recognizes the
behavior of the products at various stages of its life cycle. Each
product has it own life cycles. Ex, binoculars have very long product
life cycle while Toys have very short product life cycle.
1. Product Life Cycle Shows the stages that products go through

from development to withdrawal from the market
2. A product is the item offered for sale. A product can be a
service or an item.
3. ket, the quality, the marketing and the
segment that is targeted.
Definition of PLM:
In industry, Product Lifecycle Management (PLM) is defined as “the process of managing the entire
lifecycle of a product from its conception, through design and manufacture, to service and disposal.
PLM integrates people, data, processes and business systems and provides a product information
backbone for companies and their extended enterprise”.
A strategic business approach that applies a consistent set of business solutions in support of the
collaborative creation, management, dissemination, and use of product definition information across
the extended enterprise from concept to end of life—integrating people, processes, business systems,
and information.
By increasing an enterprise’s flexibility and agility to respond swiftly to changing market pressures and
competitors,
PLM helps companies:
1. • Deliver more innovative products and services
2. • Reduce costs, improve quality, and shorten time to market, while achieving the targeted return
on investment (ROI)
3. • Establish more comprehensive, collaborative, and improved relationships with their customers,
suppliers, and business partners
Product Lifecycle Management makes it possible to command the whole lifespan of a product and
the information connected with it. Efficient product lifecycle management enables companies to compete
successfully in international and global markets. Also PLM manages the activities of a company’s product
all the way across its life cycle in most effective way and it enables the company to take control of their
product. PLM offers transparency about what is happening over the product life cycle and offers many
ways to solve the problem in the company.
Thus PLM is one of the pillars among
1. Customer Relationship Management [CRM]

2. Supply Chain Management[SCM]
3. Enterprise Resource Management[ERP]
4. System Development Life Cycle [SDLC]
The Modern PLM system capabilities include workflow, program management, and project control
features that standardize, automate, and speed up operations. Web based systems enable companies
easily to connect their globally dispersed facilities with each other and with outside organizations such as
suppliers, partners, and even customers. PLM is a collaborative backbone allowing people throughout
extended enterprises to work together more effectively.
Therefore the core of product lifecycle management is the creation, preservation and storage of
information relating to the company’s products and activities, in order to ensure the fast, easy and
trouble-free finding, refining, distribution and reutilization of the data required for daily operations
Product Lifecycle Management (PLM) orientation

Product lifecycle management is the process of managing product-related design, production and
maintenance information. PLM may also serve as the central repository for secondary information, such
as vendor application notes, catalogs, customer feedback, marketing plans, archived project schedules,
and other information acquired over the product's life.
The PLM process manages:
 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 an item.
 Ancillary documents that are used for training, operation and maintenance of an item
 Electronic computer files that support the product's design, development, production and
subsequent post-production phases
 Material content, including reporting on legally-proscribed or hazardous substances and the
identification of part recycling and disposal methods.
Organizations that adopt PLM report that revenues increase, while per-unit product cost and
administrative overhead is reduced.
1.2. Need for PLM

There are so many reasons why PLM is needed, that it is difficult to know which are the most
important. And as the reasons will be different for companies operating in different industries and
in different countries, it’s probably impossible to prioritize them. So here’s a list of very briefly
described reasons, in no particular order:
1) Outsourcing has led to long design and supply chains with the result that product development,
manufacturing and support activities are spread out over different organizations, often over
different continents. Managing them when they were in one company in one location was difficult
enough, managing them across an extended enterprise is many times more difficult.
2) The functionality of products goes on increasing, complicating their development and support.
3) .Deregulation has led to the break-up of large organizations with well-defined
4) Responsibilities and their replacement by numerous companies, contractors and subcontractors
with unclear relationships.
5) Competitive pressures result in less time being available for product development.
6) .Many companies now offer complete solutions, rather than individual products.
7) This adds a new layer of challenges. Solutions are more complex to develop and support than
single products.
8) Many more services are offered along with a product. Sometimes, it seems as if the services are
more important than the product. Developing and supporting these services may require
additional skills.
9) Consumers want customized products – which are much more difficult to develop and support
than standard products.
10) Consumers want more services – not easy for organizations that only used to sell products.
11) Population trends, such as ageing in Western countries, lead to the need for new types of
products.
12) Globalization has led to the availability of hundreds of millions of workers in Asia with wages far
below US levels. New approaches are needed to manage their efforts.
13) Increased environmental awareness leads to calls for reduced pollution from manufacturing and
logistics.
14) The rapid emergence of new technologies provides many opportunities – but also the difficulties
of industrializing them and ensuring their safe use.
15) Sustainable development is needed to ensure resources are available for future generations –
which mean companies have to take good care of existing resources.
16) Regulations, such as Directive 2002/96/EC of the European Parliament, which has, as a first
priority, the prevention of waste electrical and electronic equipment (WEEE), can lead to major
changes in business rules and models.
17) A Stock Exchange mentality, with managers more interested in quarterly results than in the long-
term well-being of their products and services.
18) Changes in management responsibilities resulting from the Sarbanes-Oxley Act.
19) The lifetime of some products is now so short, that the development of a future generation has to
start before the development of the previous generation has been finished.
20) Geopolitical developments – such as the appearance of China as a major exporter of
manufactured goods, India as a leading producer of software and software developers, and Russia
as a leading producer of oil and gas – lead to many changes.
1.3. Opportunities and benefits of PLM:
Different ways to show where PLM can help a company to improve effectiveness, efficiency and control
throughout the entire product lifecycle, enabling it, for example, to
1. . captures customer requirements better

2. Reduced time to market.
3. Improved Process stability.
4. Improved product quality and reliability.
5. Reduced prototyping costs.
6. More accurate and timely request for quote generation.
7. Ability to quickly identify potential sales opportunities and revenue contributions.
8. Savings through the re-use of original data.
9. A framework for product optimization.
10. Reduced waste.
11. Maximize supply chain collaboration.
12. Ability to provide contract manufacturers with access to a centralized product record.
13. Seasonal fluctuation management.
14. develop products in an international collaborative development environment
15. provides manufacture in-house, or outsource manufacture to low-cost suppliers
16. Deliver’s the required product at the required time in the required place
17. Provide maintenance information on line, with up-to-date documentation and service bulletins
18. Provide better product maintenance and service until the product is eventually recycled and
disposed of in an environmentally-sensitive manner.
These benefits can be categorized as
1. Increase sales revenue

2. Reduce product unit costs
3. Reduce administrative and clerical overhead
1. Increase sales revenue / Based on increasing revenues:
Another way to understand the benefits of PLM is to focus on the revenue increases
it can provide. Examples include:
 Increase the number of customers by developing and supporting new products

 Increase the product price paid by customers. Increasing product quality enables justifiable price
increases. New functions and features can justify higher prices. Being first to market enables
pricing premiums.
 Increase the range of products that customers can buy, e.g. by improving product structure
management, PLM enables more customer-specific variants. It enables companies to expand the
size of their product portfolios. It enables breakthrough products that can create new markets
 . increase the number of products of a particular type that a customer buys, e.g. by increasing
product quality, PLM allows customers to dispense with second sourcing
 increase the percentage of customers re-ordering, e.g. by increasing product and service quality
 . increase the frequency with which customers buy, e.g. by getting products to market faster and
more frequently
 . increase the service price paid by customers, e.g. by using PLM to improve the quality of existing
services
 . increase the range of services that customers buy, e.g. by using PLM to develop and support
additional services
 . get customers to pay sooner, e.g. by developing and delivering products faster
 . increase sales by introducing innovative new products
2. Reduce product unit costs / based on Cutting costs
Another way of understanding the benefits of PLM is to focus on the ways it helps cut costs. Examples
include:
 Reduce direct labor costs across the lifecycle, for example in engineering, manufacturing and the
workers waste a lot of time on data retrieval and management activities. PDM systems, which are
system components of PLM, can do this work for them, leaving them more time for Value-adding
activities. As a result, fewer specialists will be needed.
 Reduce overhead labor costs (administrators, supervisors, clerks, managers, checkers, information
managers, data entry clerks, inspectors, documenters, BOM conversion staff, manufacturing
clerks, etc.). In an effective,” joined-up” PLM environment, a lot of the paper-shuffling, data re-
entry, data formatting, and administrative work that is currently carried out by many people
across the lifecycle will be eliminated. As a result, fewer people will be needed for these tasks.
 Reduce material and energy consumption costs by use of optimized design, better decisions, more
reuse, and better purchasing. In the PLM environment, people will have better information,
allowing them to take better decisions that will lead to reduced manufacturing costs. Digitally
simulating production facilities and production processes for all the possible configurations of a
new product will reduce costs
 Reduce the cost of purchased designs and parts. The PLM system will provide more accurate and
more detailed information, allowing people to negotiate better prices for purchased products and
services.
 reduce the cost of quality (reduce scrap and rework, penalty costs, warranty costs, recall parts,
erroneous order and manufacture of parts, obsolete parts, product liability costs). The PLM system
will reduce the number of errors made along the
marketing/engineering/manufacturing/delivery/service chain.
 Reduce costs of storing information (e.g. reduced paper cost). Information will be stored on low-
cost, compact media rather than on paper.
 Reduce costs of communicating information. Information will be transferred quickly and cheaply
by electronic means rather than by the slow and expensive transport of paper documents.
 Reduce costs of product development projects by making their progress clearer
 Reduce costs by providing a common IS framework to track the performance of activities in each
phase of a product’s lifecycle
 Reduce costs of customer acquisition
 Reduce costs of product support, repairs and upgrades
 Reduce the cost of service visits through knowledge of the exact configuration of the product.
3. Reduce administrative and clerical overhead / 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.
1.4. The Evolution of PLM

The term “product lifecycle management” emerged after nearly twenty years of market and technological
evolution. In the mid 1980’s to early 1990’s, there was confusion as to what to call product-related
information, particularly engineering information. As the data came to be referred to generically as
product data, the term product data management (PDM) emerged. CIM data heavily promoted both the
term and the nascent industry through publications and educational events. Both users and solution
providers embraced PDM and used the term for many years. In fact, PDM remains a foundation
component of PLM. Over the last several years, more acronyms created confusion in the market, as
people began to consider the product lifecycle and collaboration—PDM, cPDm, CPC. These terms overlap
and carry multiple meanings. PLM has emerged as the term used to describe a business approach for the
creation, management, and use of product-associated intellectual capital and information throughout the
lifecycle.
PLM has evolved in much more than terminology. There has been a continuous evolution of what PLM
represents, as illustrated in the figure below. Fifteen years ago, custom implementations focused on
precise applications wrapped around primarily engineering design data. In the late 1980’s, the major
emphasis was on how to manage engineering drawings, with limited solutions primarily sold to managers
in engineering departments.
Custom implementations evolved to tool kits and generic applications that automated some typical
functions. As the solution providers gained experience implementing their tools in different industries,
their offerings evolved into delivering focused business applications. These applications provided
standard data models, predefined workflow templates, and other functions necessary to solve some
business problems. Today, the focus is on complete business solutions that address top and bottom line
issues. These solutions incorporate best practices to allow organizations to migrate their business
processes toward de facto industry standards. This evolution has changed not only the level of managers
that buy these solutions; it has changed the issues that are driving these investments and, more
importantly, it has changed the manner in which these solutions are acquired and implemented.
As part of this evolution, the view or definition of the “product lifecycle” has also changed. Fifteen years
ago, the “lifecycle” focused on the design engineering activity, as the tools concentrated on CAD data
management. In the late 1980’s, that perspective began to expand to include workflow and processes
across the product lifecycle, i.e., to share information and processes between different design activities.
In recent years, when organizations invested in PDM and early PLM, the buyers were typically mid-level
managers, or occasionally, some high-level managers in IT, engineering, manufacturing, or other
functional groups. Because of its expanding scope and impact on the extended enterprise, today’s PLM
solutions are viewed as enterprise solutions, strategic to improved business performance. Strategic
business investment decisions, regardless of size, are being reviewed and approved by C-level
management, by—CIOs, CTOs, CFOs, and even CEOs. Other senior executives, such as senior vice
presidents of major business units or functional groups (e.g., engineering and manufacturing) may also be
involved. For senior managers, their investments must be focused on solving specific business problems,
leveraging other opportunities, and taking advantage of previous investments within their organizations.
Now that PLM has emerged as an enterprise solution, it is important to understand how PLM fits with
other enterprise solutions that manage product information and operations. The next section describes
this relationship in more detail.
1.4. Different views of PLM

Unfortunately for those wanting to implement PLM, there are many people who will not understand why
it is necessary. Among those who won’t understand will be many whose support is essential to the
success of a long-term, cross-functional initiative that will have significant effects on company
performance and organisation. From their position in the company, PLM may seem to have a low priority,
or even be unnecessary.
Those who may have difficulty in understanding the need for PLM could include the CEO, top managers,
product development managers, product support managers, engineering managers, quality managers,
human resource managers and IS professionals. Their reactions to talk of PLM may include:
1. ● We’re focusing on customers these days, not products. Customer focus is our message.
2. ● It’s another enterprise-wide mega-project. Everyone knows that kind of project doesn’t work.
3. ● It’s just another cost.We have to focus on cost-cutting, not look for ways to spend money.
4. ● The payback period is more than 12 months so we’re not interested.
5. ● Get Engineering to do its job properly, and you won’t need PLM.
6. ● Get Marketing to define specifications properly, and you won’t need PLM.
7. ● We don’t need it.We just put a new product support organisation in place.
8. ● We’ve done it.We have a product knowledge database.
9. ● We’ve done it.We already have a PLM system.
10. ● Talk about it with the CAD Manager. It’s his responsibility – not ours.
11. ● We don’t believe in Three Letter Acronyms (TLAs).No more acronym soup here.
12. ● It’s early days for PLM. Come back in 5 years.
13. ● We’ve had enough of enterprise systems.We’re trying to simplify before automating.
14. ● PLM is just a new name invented by system vendors because PDM didn’t sell. Like PDM, it
won’t work. Real PLM isn’t a system issue, it’s cultural.You can’t buy it. Shrink-wrapped or
otherwise.
15. ● I understand the need for PLM, but there’s no support from top management, so it doesn’t
interest me.
16. ● We don’t have the technical and management skills to implement PLM.
17. ● Why worry about the actual product when it’s so much easier just to change peoples’
perception of it?
18. ● I know my boss is interested in PLM, but he doesn’t know how to justify its cost, so isn’t
pursuing it.
19. ● Enterprise-wide technologies such as PLM are difficult to implement and have a high failure
rate. I don’t want that risk.
20. ● We have one guy who manages all our technical computing. There’s no way he can do PLM
alone.
21. ● NIH.We don’t want it – it wasn’t invented here, so isn’t worth having.
PLM is beneficial and necessary, but most people will initially fail to understand this simple message, will
not react to it in the right way, and will slow down the speed at which the company can obtain the
potential benefits.Many of the people whose support is necessary, and who control the resources needed
for success, just won’t understand. Their level of understanding will be low and it will take a long, long
time to get it to a level where they will become supportive.Yet it’s not possible to implement PLM without
support throughout the company. It’s not possible to go it alone. PLM is holistic and cross-functional. It is
as much an organizational approach as a technological approach, and it needs positive involvement from
people at many levels in many functions.
Sometimes, a local, go-it-alone approach in one function may generate savings, but without a clear target
it can just generate extra costs without providing the hoped-for benefits. The best approach that will
succeed in the long-term is to fully understand the issues and convert the sceptics, and then implement
across all functions. As a first step, it may be possible for one department to implement a prototype
addressing one specific PLM issue, but this should only be seen as a local, short-term demonstration of
potential capability, and not the full monty.
1.5 COMPONENTS OF PLM
Increasing numbers of manufacturers are utilising PLM solutions, to optimise all aspects of their product
development processes. Nevertheless, it can be hard to offer a precise definition of PLM. Yet, to know
exactly how PLM can benefit business, it is essential to know what PLM solutions have to offer. Regardless
of how PLM is defined, there are the ‘must have’ components, which are vital for any PLM solution to be
effective. We’ve put together an overview of the 7 essential components of PLM solutions.
1 DOCUMENT MANAGEMENT
This is vital for being able to store, track and manage all the data associated with your product
development processes. It includes everything from graphics and text right through to engineering
calculations. Comprehensive document management makes it easier to track any data changes and
monitor access to documents by creating a single, central data store.
2 EMBEDDED VISUALISATION
Embedded visualisation allows for collaboration, between mechanical and electrical areas, using
centralised digital product information. It also makes it possible to view any product data, without
needing authentication from the native tool.
3 WORKFLOW
This component of a PLM solution makes it possible to define product development processes fully,
through a standardised method. It also ensures that all process and procedures are adhered to and all
necessary related tasks taken.
4 DISTRIBUTED COLLABORATION
Companies increasingly operate across multiple locations, with internal and external partners. Distributed
collaboration means both individuals and larger teams can work concurrently on a project, with all data
securely protected, regardless of location.
5 MULTI-CAD DATA MANAGEMENT
This enables complete control over all CAD data, from across different CAD tools. It offers a central point
for all CAD data, while also managing the dependant CAD relationships during product development.
6 COMPLETE BOM MANAGEMENT
Manage and track all the different aspects of product development and definition. Complete BOM
management covers the entire process, across all disciplines. It gives better control and offers engineers
more insights into the potential impact of any changes.
7 CHANGE AND CONFIGURATION MANAGEMENT
Good communication is essential, which is where change and configuration management comes in. It
makes sure that everyone is aware of each process, from designing right through to servicing, throughout
the entire product lifecycle.
Main Components and Figures of PLM The Main Components: Data management: It enables appropriate stage for
management. It provides information about product features, bills of material, data distribution, project structure.
Program and project management: It’s about the process of developing a product. It gives information on planning,
management and checking. Cooperation: It supports project management and it relies on WEB standards which are
based on XML(Extensible Markup Language) Quality management: It provides an integrated quality management
for each sector. Management of corporate assets: It directs equipment and physical assets
1.6. PLM PHASES
Product lifecycle management is the process of managing the entire lifecycle of a product from its
conception, through design and manufacture, to service and disposal. All products and services have
certain life cycles. The life cycle of the product refers to the period from the beginning of life to the end of
life and its split up into five major steps in a product’s lifecycle. The product’s life cycle period usually
consists of five major steps or phases Imagine, Define, Realize, Use/Support, and finally Retire/Dispose as
shown in figure 1
Fig: 1 PLM Phases

In each of the five phases the product is in a different phase and is associated with changes in the
marketing situation. During the imagination phase, the product is just an idea in people’s mind. This idea
may feasible or not feasible but during the definition phase this idea is being converted into a detailed
design. By the end of the realization phase the idea converted into physical product, this final product
now ready to use by customer. During the use/support phase, the product is with the customer who is
using it. Eventually the product gets to a phase in which product is no longer useful and retired by the
company, and product disposed by the customer. The product must be managed in all these phases to
make sure that everything works well, and that the product makes good money for the company that
means managing the product throughout its lifecycle.
Phase 1: Conceive
Imagine, Specify, Plan, Innovate
The first stage in idea is the definition of its requirements based on customer, company, market and
regulatory bodies’ viewpoints. From this a specification of the products major technical parameters can
be defined. Parallel to the requirements specification the initial concept design work is carried out
defining the visual aesthetics of the product together with its main functional aspects. For the Industrial
Design, Styling, work many different media are used from pencil and paper, clay models to 3D CAID
Computer-aided industrial design software.
Phase 2: Design
Describe, Define, Develop, Test, Analyze and Validate
This is where the detailed design and development of the products form starts, progressing to prototype
testing, through pilot release to full product launch. It can also involve redesign and ramp for
improvement to existing products as well as planned obsolescence. The main tool used for design and
development is CAD Computer-aided design. This can be simple 2D Drawing / Drafting or 3D Parametric
Feature Based Solid/Surface Modeling. Such software includes technology such as Hybrid Modeling,
Reverse Engineering, KBE (Knowledge-Based Engineering), NDT (Nondestructive testing), and Assembly
construction.
This step covers many engineering disciplines including: Mechanical, Electrical, Electronic, Software
(embedded), and domain-specific, such as Architectural, Aerospace, Automotive ... Along with the actual
creation of geometry there is the analysis of the components and product assemblies. Simulation,
validation and optimization tasks are carried out using CAE (Computer-aided engineering) software either
integrated in the CAD package or stand-alone. These are used to perform tasks such as:- Stress analysis,
FEA (Finite Element Analysis); Kinematics; Computational fluid dynamics (CFD); and mechanical event
simulation (MES). CAQ (Computer-aided quality) is used for tasks such as Dimensional Tolerance
(engineering) Analysis. Another task performed at this stage is the sourcing of bought out components,
possibly with the aid of Procurement systems.
Phase 3: Realize
Manufacture, Make, Build, Procure, Produce, Sell and Deliver
Once the design of the product’s components is complete the method of manufacturing is defined. This
includes CAD tasks such as tool design; creation of CNC Machining instructions for the product’s parts as
well as tools to manufacture those parts, using integrated or separate CAM Computer-aided
manufacturing software. This will also involve analysis tools for process simulation for operations such as
casting, molding, and die press forming. Once the manufacturing method has been identified CPM comes
into play. This involves CAPE (Computer-aided Production Engineering) or CAP/CAPP – (Production
Planning) tools for carrying out Factory, Plant and Facility Layout and Production Simulation. For example:
Press-Line Simulation; and Industrial Ergonomics; as well as tool selection management. Once
components are manufactured their geometrical form and size can be checked against the original CAD
data with the use of Computer Aided Inspection equipment and software. Parallel to the engineering
tasks, sales product configuration and marketing documentation work will be taking place. This could
include transferring engineering data (geometry and part list data) to a web based sales configuration and
other Desktop Publishing systems.
Phase 4: Service
Use, Operate, Maintain, Support, Sustain, Phase-out, Retire, Recycle and Disposal
The final phase of the lifecycle involves managing of in service information. Providing customers and
service engineers with support information for repair and maintenance, as well as waste
management/recycling information. This involves using such tools as Maintenance, Repair and Operations
Management (MRO) software.
1.7 PLM Strategies
SINCE PLM is an enterprise wide issue, strategies at varying levels and over varying time
frames need to be developed and coordinated.
WHAT IS A STRATEGY?
Strategy is a plan with the goals and objectives that we are seeking to accomplish.
PLM is a part of the strategy to reach some goal or objective. PLM is an enabler of the goals
of the organization, but is not an end goal in itself.
THE ELEMENTS THAT ARE THE PART OF THE STRATEGIC PLAN FOR PLM:
1. A vision of the future
2. A realistic assessment of where we are today
3. A plan of action for bridging the gap between the reality of today and the vision of
tomorrow
4. The capabilities and resources necessary to carry out that plan.
1.7.1. A VISION OF TOMORROW:

2. The most important component of the strategic plan is a vision of tomorrow. If there
is no perception of what we think tomorrow will look like, then there really is no need
to produce a strategic plan.
3. Visions of tomorrow for organisations almost always include the organisations being
larger and more profitable. From the IT value map PLM translates into increased
revenues and lower costs. This impact across the entire organization, PLM is a logical
part of a strategy to increase revenues and lower costs.
4. PLM decreases costs through:
o LEAN THINKING,
o TRADE OFF INFORMATION FOR WASTED TIME, ENERGY AND MATERIAL.
resources freed up can derive an increase in product
o VARITEY
o QUANTITY
o FUNCTIONALITY
o QUALITY
One technique in use to develop a vision of tomorrow is to bring the senior leadership
together and ask them to imagine themselves, say, five years in the future, then look
around and describe what they see.
There is one very common vision of tomorrow that drives many PLM initiatives. This
vision is of “One Company”. This phrase with the specific company’s name following
“One” (Eg: One General Motors) is a commonly used rationalization for embracing
PLM.
There are two major benefits if the organization gets into “One Company” concept.
 First. The costs will be reduced by saving the time, energy and material that is being
spent for duplication and coordination efforts.
 Second. The Mangement will be able to increase revenues by increasing the
functionality and quality of their product with those resources that are freed up
under the “One Company” initiative.
PLM is compatible with this “One Company” vision. It also means to implement it by
building their functions.
PLM can also implement common processes and practices. PLM technology helps to
structure this “One Company” view.
PLM is an attempt to use the technology to reduce the costs and inefficiencies of
coordination efforts among areas of specialization.
1.7.2. A REALISTIC ASSESSMENT OF TODAY:

 In order to get to the vision of tomorrow there needs to be a realistic assessment of
today. If we do not know where we really are, it will be difficult to go where we want
to go.
 If we are unrealistic about our current situation then we will be starting towards our
vision of tomorrow from a faulty position. The normal tendency is to overestimate our
situation and capabilities of the resources and requirements that we will need to
reach our vision of tomorrow will be grossly underestimated.

 We perform the realistic assessment of where the organization is. But this is only
one of the two pieces. The other piece is an assessment of where the environment is.
 The environment made up of customers, competitors and government. We need to
assess each of them in turn in order to understand how we obtain our vision of
tomorrow.
 Regulation plays a big part in determining organization activities. Complying with
regulation is not a voluntary activity. Complying with regulations is not a voluntary
activity. Companies either decide that they will comply with them or they will not be
in business. As a result they have to factor the change of regulations into their plans.
 Irrespective of what these changes are, organisations will continue to need to Think
Lean (waste) as they use information to trade off for wasted time, energy and
material.
 What we do not know is that if we do not develop and maintain the information
about our product we will not be able to make informed decisions when the
environment changes.
 Information is our only defence against uncertainty. With information we can at least
plot our possible courses of actions and understand their impact.
 If we do not have that information, we are at the mercy of the changing environment.
1.7.3. PLAN FOR BRIDGING THE GAP:

 The plan for bridging the gap has to include three aspects :
People
Process and Practices
Technology
 All the three of these elements have to come together in a coordinated plan for an
organization to get from where it is today to where its vision if for tomorrow.
 All of these elements are required if an organization is to make this transition. If one
of these elements are not addressed, the whole plan suffers.
 Ex: If right software is acquired but people are not trained to use that software then
people will not use the software effectively.

If leadership, employee perception and project scope and urgency were all negative, the
project then the “project needs to be killed” or if they are positive it is called a “BIG
BANG approach”.
So the final conclusion is that if leadership were positive then that could be the driving
force for even an incremental approach to the project implementation. But if the
leadership is negative then it required somebody in the organization to step up in order
to be enable to champion or negotiate with the rest of the employees to drive at least
parts of the project to a successful completion.
1.7.4 IMPACT OF STRATEGY
Here we discuss the impact on the organization of developing a strategy for PLM.
Individual PLM projects can and should be justified on the basis of their own Return
on Asset (ROA’s) or Return on Investment (ROIs).
There are major differences in the sizes of the ROA and ROI returns when they are
coordinated within an overall strategy.
Individual PLM projects can be incompatible and the ensuring selection of different
technologies will require expending time and additional resources at some point in time to
Standardize software
Repurchase Software
Write off old software
Retain people
Re-evaluate process and practice
Any time there is “anything” in the sentence it means resources are wasted.
PLM payback schedules vary both in magnitude and in time frame.
The purpose of PLM payback schedule is :
Short Term PLM returns are obtained by implementing Applications.
Mid Term returns are obtained by implementing Systems.
Long Term returns are obtained by implementing Overall Strategy for PLM.
Developing Strategy does not require a huge consumption of resources.
Lean thinking requires that the leadership make the best use of its resources. It does this
by planning and executing a strategy that drives it in a clear direction to it’s vision of the
future.
1.8. IMPLEMENTING A PLM STRATEGY

ONCE THE DECISION IS MADE TO APPROVE AND INITIATE PLM PROJECT THEN THE QUESTION IS “HOW
CAN PLM BE SUCCESSFULLY BE IMPLEMENTED”
PLM is an unique undertaking.
In the past the companies have engaged in cross functional systems, so we have to
study one of these systems to learn from their implementation. One such system is ERP
(ENTERPRISE RESOURCE PLANNING).
THE FACTORS THAT DIFFERENTIATED FROM SUCCESSFUL ERP IMPLEMENTATION FROM
UNSUCCESSFUL ONE ARE LISTED BELOW:
1. TOP MANAGEMENT IS ENGAGED, NOT JUST INVOLVED
2. PROJECT LEADERS ARE VETERANS (LONG EXPERIENCED) AND TEAM MEMBERS ARE DECISION
MAKERS.
3. THIRD PARTIES FILL GAPS IN EXPERTISE AND TRANSFER KNOWLEDGE
4. CHANGE MANAGEMENT GOES HAND IN HAND WITH PROJECT MANAGEMENT
5. A SATISFICING MINDSET PREVAILS.
1.8.1. TOP MANAGEMENT IS ENGAGED, NOT JUST INVOLVED :
1. Engagement and involvement are two different things.
2. There are a numerous committees that senior management, directors, vice president
and even CEO’s govern within their organizations.
3. In most of the situations this top management is on these committees to give a
legitimacy to the initiative and not actually be involved with it. The top management
does not attend any of the meetings of the committee but sends its delegates.
4. But for PLM initiatives real decisions about the cross functional allocation of
resources and responsibilities have to be made. There can be a substantial waste of
time, energy and material when looked at from the perspective of the entire
organization.
5. The issues of cross functional allocation have to be resolved at the top of the
organization where the functional areas meet, because resource allocation takes
place at this level and not lower down within the organization.
6. The final decision on how to reallocate resources so that a minimal amount of
resources is expended for the task from the perspective of the entire organization will
have to be made by top management.
7. If top management is not engaged in making these decisions, what generally happens
is that the status quo prevails and no change occurs.
8. In the absence of the top management’s engagement in these decisions, the natural
tendency will be to make a decision that favors the resource use for the department
or individual function itself, as opposed to benefiting some other department.
9. The expert advice on all the corporate initiative is that top management needs to be
engaged and not involved. Internal controls, human resources, customer resource
management – all of these initiatives have as one of their main principles that the
engagement of top management is a necessity.
10.The two arguments that could be used to compare the position of PLM versus
all these other initiatives are :
11.First, PLM is about creating a valuable asset of the organization, namely intellectual
property concerning the products of the organization.
12.Second argument is that, given that information can be more beneficial to the overall
organization that it may be to one department, decisions about allocating resources
to create information where it is the most logical and efficient to be created need to
be made by top management.
13.The purpose of the top management involvement is to ensure that execution of
the plan is proceeding, as opposed to deciding where resources need to be
expended for cross-functional purposes.
1.8.2. PROJECT LEADERS ARE VETERANS (LONG EXPERIENCED) AND TEAM

MEMBERS ARE DECISION MAKERS:
2. The project committees, the committees themselves are stocked with junior members
of the department, with people who have time on their hands, or with individuals
who are dispensable with their specific department or function.
3. In PLM it is critical that the members of the team have both deep knowledge and
understanding of their department and functions and the ability to make decisions
for their organization without have to go back and seek permission from other
managers.
4. The issue of deep knowledge is important one. Experienced members of the various
functional areas will also have an awareness of aspects and issues of other
departments and functions and not be solely focused on their own issues.
5. There are always cross functional issues and the more experienced an individual is
within his or her department or function the more likely it is that he or she will have
been exposed to these issues.
6. As a result, more experienced individuals will recognize the value of performing some
additional work in their area that will benefit another area.
7. Veterans of the organization will understand those issues and be more amenable
(having a desire or inclination) to allocating resources to solve them once and for all.
8. The veteran manager also will not be as susceptible to falling into trap of agreeing to
what appears to be a small change that has major ramifications for their area.
9. PLM is not a matter of implementing status quo. It requires fundamental changes in
how the orgasnisation views its processes and practices.
10.If team members are not decision makers, valuable time and effort will be lost
because team members will have to go back to their respective organization and
attempt to explain why reallocation of resources are necessary.
11.For PLM to be successful within the organization, the team members must work out
the right allocation of resources, make the decisions within the committee room, and
then be able to execute on those decisions and implement them.
1.8.3. THIRD PARTIES FILL THE GAPS IN EXPERTISE AND TRANSFER KNOWLEDGE:
1. Executives’ first reaction to this success factor is often to think that it is an
endorsement for consultants to come into their organsiation and run up large
invoices. But that really is not the intent of this success factor.
2. It simply recognizes the that in large enterprise projects such as ERP and also PLM,
experience and expertise from having seen and addressed planning issues and
implementation problems are critical in an initiative that performs well.
3. Since this is not a one-time event, but a change in the way an organization operates,
the transfer of knowledge to the people within the organization is
4. Since PLM is a new endeavor (try hard to do or achieve something) chances are that
an organization that is undertaking PLM would not have veterans who are
experienced in PLM. Therefore seeking the expertise of a third party is an example of
Lean Thinking.
5. Filling the gaps through the third parties will also improve the efficiency of the
initiative because mistakes that might be made in developing and implementing a
PLM project may have been experienced and solved by these third parties.
6. Since the software and other technology that enables PLM is so specialized the third
party resources for PLM might very well be the solution provider who provides the
software.
7. There are a number of organisations in the aerospace and automotive business that
engage the solution providers, consultants and third party process consultants in
order to implement their PLM projects.
8. It is equally important that implanting organizations bring their own people up to
speed and have that knowledge transferred to them.

9. Bringing in a third party to implement PLM and then allowing him or her to leave
without transferring his or her knowledge regarding PLM is a sure recipe for
degenerating back to the old way of doing things.
1.8.4. CHANGE MANAGEMENT GOES HAND IN HAND WITH PROJECT MANAGEMENT:
1. The importance of project management is not to be under estimated and there is no
lack of material regarding project management for the implementers of PLM.
2. PLM is a different way of doing things, especially as it pertains to cross functional
boundaries. The change management of the new processes and practies that an
organization requires needs to be closely interlinked with the project management.
3. The reality is that PLM is a different way not only of viewing the organization’s
intellectual property in the form of product information, but also of managing that
information. Therefore the processes and practices of the organization need to be
reexamined and modified in light of this cross functional capability.
4. The organization needs to be looked at from this overall perspective. Rather than
simply implementing the processes and the re evaluation of the practices that have
evolved in order to support those processes at the practices that have evolved in
order to support those processes need to be assessed and the appropriate changes
made.
5. In order to make the change happen, the status quo has to be taken off the table and
people need to be prevented from regressing back the way they have done things in
the past.
1.8.5. A FINAL SUCCESS FACTOR IS THAT A SATISFICING MIDSET PREVAILS:

1. SATISFICING (MEANING SATISFYING MINIMUM REQUIREMNETS TO REACH THE
GOAL) IS A REAL WORLD, ALTHOUGTH NOT USED MUCH OUTSIDE THE WORLD OF
ECONOMISTS.
2. When it comes to human activities especially complex activities, satisfcing, not
optimising, better describes what we do. In most human endeavours diminishing
marginal returns are in effect and the effort we spend to attempt to optimize at the
end of a project could be more productively spent on the projects next phase.
3. It is not only the issue of resources but that of time which cannot be recaptured. In
the productive use of time and resources, we need to look at getting it “pretty good”
and moving on.

4. The PLM fall into the category of very complex undertakings where, if we attempt to
try for an optimal solution we will never get there. We can get to 80% efficiency with
human efforts. So we need to get the project over a hurdle rate of efficiency, but need
not look to optimize it.
5. In PLM we need to take a larger and a longer view of the situation and look to attack
as many areas as possible that can improve the overall organization rather than try
to optimize only one aspect of it.
1.9. PLM INITIATIVES TO SUPPORT CORPORATE OBJECTIVES:

Since most organisations have as their objectives to grow the organisation and to reduce
costs, it is not hard to align PLM projects with corporate objectives.
1. From the IT value Map we can see that the drivers of revenue growth are increasing
functionality, quality and quantity of product sold. The Parts reuse and start parts
and smart parts all allow areas to do more with the same amount resources.
2. If additional resources are not available to increase the quality or functionality of
products, PLM applications enable areas or departments to free up the needed
resources by utilizing existing resources more efficiently.
3. In the cost side, better visibility and control of product information allows the
reduction of material time. PLM applications that track and control math based
designs allow departments to avoid wasting time working with old and outdated
versions.
4. Process reuse in manufacturing allows departments to reduce the amount of worker-
hours required to produce product routings. Simulation of those routings decrease
ramp-up time required to produce products at their most efficient level.
The four important PLM initiatives to support corporate objectives:
1.9.1. SEE BEYOND FUNCTIONAL BARRIERS

1. An effective PLM strategy will require this larger view and while there may be short
term benefits in a parochial view, eventually the organization will be less competitive
than organizations that do have a PLM view and our own area will eventually suffer.
2. It is far better to try and develop this larger view of product information sooner rather
than latter. We can develop this view even if we do it informally by establishing ties to
areas that are adjacent to ours, such as engineering to manufacturing or
manufacturing to service.
3. These are areas that develop information that we use or areas that we develop
information for. We may not have the authority to establish cross-functional teams,
we can develop informal communications and consultations with these other areas.
4. For organisations that are highly specialized in a specific function so that electrical,
mechanical and hydraulic engineering are separate and distinct specialties, working
on cooperative efforts within the same function area is a reasonable goal. In this
such situations the PLM can serve as common focus to coordinate and consolidate
product information that all these subspecialties can share and use in one place.
1.9.2. WATCH FOR OPTIMAL DECISIONS THAT ARE SUBOPTIMAL

1. We can usually try to optimize the use of resources, the first candidates for
elimination are resources that support cross functional information flow.
2. We can usually try to optimize the use of resources in an area even if that
optimization causes a suboptimal use of resources across the entire organization.
Making these resource decisions improves our own area and the derivative negative
impacts to us from other affected areas are minimal or negligible.
3. Managers of areas facing this type of decisions should resist this opportunity,
because these easy decisions go against the spirit and practice of PLM. Instead they
should look for resource usage that is wasteful and only affects their area.
4. By showing the cost of cost of recreating this lost information in many times the cost
of the resource in the area creating it, there may be other alternatives to eliminating
the resource creating it.
5. At the operational level : there may be “BUDGET TRADING” between the creating and
using departments. With visibility at higher levels, there may be budget relief granted
to the creating department. At some level of the organization, there is responsibility
for the aggregated budget.
6. Managers need to find that level and demonstrate that PLM information should not
be sacrificed at the departmental level at a cost to the entire organization.
1.9.3. STRETCH CHANGE MUSCLE

1. This is counter intuitive to most manager’s instincts.
2. What all mangers think they want to strive for is a smooth running organization
where each day mirrors the day before.
3. Even if that was possible in the past, the global environment of today means that at
some time change will be visited on the organization, whether it like it or not. It is far
better to be proactive with change.
4. Organizations that embrace change are more likely to see and adapt to change as it
occurs and in fact and view change as a competitive advantage.
5. PLM with its new approach to products will allow managers to begin stretching the
change muscle of their areas and departments.
6. Getting their people used to and better still, anxious for change will allow them to
adapt to larger change that comes about when PLM becomes a corporate initiative.

7. People who have exercised their change muscle will be better prepared to embrace
the digital way of doing things and replace the paper they have always used.
1.9.4. THINK “ONE ORGANIZATION”

1. Since PLM is an “ approach”, one of the most important things any employee can do
to act as like CXO is to embrace the “One Organization” theme.
2. The issues with organizational dysfunction usually arise when individual areas think
they are benefiting the organization by optimizing their operation.
3. Making decisions about how people deal with product information within a certain
functional area, what processes and practices are employed and what technologies
are acquired to support these activities without taking into consideration the entire
organization is counterproductive.
4. Everyone in the company are responsible for using that vision of “one company” to
guide their decisions. Everyone is capable of internalizing the vision of “One
Company ” as they ask themselves what is the best way for my organization to get
the most value out of product information.
5. PLM has the most impact for the organization if it is a corporate initiative defined by
a comprehensive strategic plan that supports the goals and objectives of the entire
organization.
1.10. INFRASTRUCTURE ASSESSMENT
PLM is a major shift in perspective for most organisations that have an orientation to
traditional functional perspectives. In PLM, there are issues of culture, process, practice
and even power that will affect the success of PLM within the organization.
Assessing an organization’s readiness for product lifecycle management requires an
assessment of all the elements of PLM: technology, infrastructure, people, processes and
practices. This assessment needs to be done using a systematic and understandable
framework that compares we are with where we determine we need to be.
1. Technology more specifically software are key components of and enablers for PLM.
2. PLM initiatives are not feasible without PLM software applications. These PLM
software applications require a computer / communications infrastructure on which
to run. The assessment of the computer / communications infra-structure is an
important aspect of any readiness assessment.
3. Having excess capacity of computer / communication infrastructure does not add
anything to the PLM initiative but having less capacity than required can cause the
PLM initiative to flounder and possibly fail.
4. So in assessing the computer / communication infrastructure it is important not
only to assess what is required under the current initiative but also to look out over
the future and project what will happen to this infrastructure if PLM becomes
successful initiative.
WITH RESPECT TO THIS COMPUTER /COMMUNICATION INFRASTRUCTURE THERE ARE 4 THINGS
THAT WE NEED TO LOOK AT :
1. ADEQUATENESS OF THE CURRENT TECHNOLOGY
2. SCALABILITY OF THE TECHNOLOGY
3. MODULARITY OF THE TECHNOLOGY
4. OPENNESS OF THE TECHNOLOGY
1.11. ASSESSMENT OF CURRENT SYSTEMS AND APPLICATIONS

It is important to assess the current systems and applications that are in place within an
organization. The easy analysis is to assess the formal systems that are in use. Information
technology groups or IS staff have this information available. The systems are well
documented and a map of the information flows within the systems and from systems to
systems is readily available for analysis.
1. PEOPLE ASSESMENT
2. PROCESS / PRACTICE ASSESSMENT
3. CAPABILITY MATURITY MODEL ASSESSMENT
4. ASSESSMENT CAUTIONS.
1.12. Product Life Cycle Model/ PLM Life Cycle Model
Product life cycle can be defined as "the change in sales volume of a specific product offered by an
organization, over the expected life of the product."
Fig: Product Life Cycle graph for a Product
The product life cycle describes the sales pattern of a product over time. Generally, the time span begins
with product introduction and ends with its obsolescence and replacement. While the form of the life
cycle is fairly standard, it is subject to variations. The concept underlying the premise of product life cycle
is that all products pass through the stages outlined below
Basic Stages in the Product Life Cycle
The four major stages of the product life cycle are as follows:-
1) Development/ Introduction Stage

2) Growth stage
3) Maturity stage
4) Decline stage
1.12.1 Introduction-Stage
At this stage the product is new to the market and few potential customers are aware with the existence
of product. The price is generally high. The sales of the product are low or may be restricted to early
adopters. Profits are often low or losses are being made, this is because of the high advertising cost and
repayment of developmental cost.
At the introductory stage:-
 The product is unknown,

 The price is generally high,
 The placement is selective, and
 The promotion is informative and personalized.
1.12.2. Growth-Stage
At this stage the product is becoming more widely known and acceptable in the market. Marketing is
done to strengthen brand and develop an image for the product. Prices may start to fall as competitors
enter the market. With the increase in sales, profit may start to be earned, but advertising cost remains
high.
At the growth stage:-
 The product is more widely known and consumed,

 The sales volume increases,
 The price begin to decline with the entry of new players,
 The placement becomes more widely spread, and
 The promotion is focused on brand development and product image formation.
1.12.3. Maturity-Stage
At this stage the product is competing with alternatives. Sales and profits are at their peak. With the
increases in competition the price reaches to its lowest point. Advertising is done to reinforce the product
image in the consumer's minds to increase repeat purchases.
At maturity stage:-
 The product is competing with alternatives,

 The sales are at their peak,
 The prices reaches to its lowest point,
 The placement is intense, and
 The promotion is focused on repeat purchasing.
1.12.4. Decline-Stage
At this stage product popularity is decreasing, People starts moving towards new introduced products as
a result sales start to fall fast and product range is reduced. The product faces reduced competition as
many players have left the market and it is expected that new competitor will enter the market.
At decline stage:-
 The product faces reduced competition,

 The sales volume reduces,
 The price is likely to fall,
 The placement is selective, and
 The promotion is focused on reminding.
To calculate or measure at what stage of its life cycle a product is at in the given market, the following
parameters needs to be measured and monitored:
a) Investment in R&D by year

b) Number of competitors in the market by year
c) Number of competitors that entered the market by year
d) Number of competitors that left the market by year
e) Market growth rate by year
f) Investment in marketing (such as advertising, trade shows, and direct sales forces) by year
1.13. Features of PLM
Typical features of PLM systems include:
a) Item management – one of the basic functions of a PLM system is the management of items. The
system controls the information on the item and the status of the item as well as processes
related to the creation and maintenance of items.
b) Product structure management and maintenance – the PLM system identifies individual
information and its connections to other pieces of information with the help of the product
structure, which consists of items hierarchically connected together.
c) User privilege management – the PLM system is used to define information access and
maintenance rights. The PLM system defines the people who can create new information or make,
check and accept changes, and those who are allowed only to view the information or documents
in the system.
d) Maintenance of the state or status of documents and items– the system maintains information
about the state and version (e.g. sketch, draft, accepted, distributed, obsolete)of each document
and item, and about changes made to them: what, when, and by whom.
e) Information retrieval – one of the main tasks of a PLM system is information retrieval. PLM
systems intensify and facilitate the retrieval of information so that:
f) It is possible to utilize existing information better than before when creating new information. All
the existing information on a given subject, such as a particular product, can be easily accessed:
documents, components, perhaps a design solution of proven quality.
g) It is easy to find out how a given piece of information is related to other information, for example
to find out where else a given design solution, part or component is used. (This is very important
for change management – when implementing changes in this piece of information)
h) Change management is a tool with which the latest valid information about changes, such as
version changes to a product or component, are recorded in documents or items, which are then
made available in the right place and at the right time.
i) Configuration management – varying the physical properties of similar products and switching
interchangeable assemblages or components. Configuration management allows products to be
customized according to customer wishes.
j) The management of tasks (messages), also known as workflow management, is one of the basic
properties of a PLM system. The communication and division of tasks is carried out through
graphical illustration of the chain of tasks and by e-mail or a task list. The management of tasks
makes possible the radical intensification of communication in the organization, especially in a
decentralized –even worldwide – environment.
k) File/document management involves index information on files contained in the system. In other
words, it is a question of metadata – information about what information is located where.
l) Information loss during updating is avoided. The PLM system controls the copying of files and
ensures that the master copy is preserved until the files have been successfully updated.
m) Backup management – the system automatically logs backup copies.
n) History / System log – a database of events which ensures that that all measures – such as
updating documents or changing component items – made within the sphere of PLM management
can be tracked, if necessary (Product process traceability).
1.14. Areas of PLM

Within PLM there are five primary areas;
1. Systems Engineering (SE)
2. Product and Portfolio Management (PPM)
3. Product Design (CAx)
4. Manufacturing Process Management (MPM)
5. Product Data Management (PDM)
 Systems Engineering is focused on meeting all requirements, primary meeting customer
needs, and coordinating the systems design process by involving all relevant disciplines.
 Product and Portfolio Management is focused on managing resource allocation, tracking
progress vs. plan for new product development projects that are in process (or in a holding
status). Portfolio management is a tool that assists management in tracking progress on
new products and making trade-off decisions when allocating scarce resources.
 Product Design is the process of creating a new product to be sold by a business to its
customers.
 Manufacturing Process Management is a collection of technologies and methods used to
define how products are to be manufactured.
 Product Data Management is focused on capturing and maintaining information on
products and/or services through their development and useful life.
1.15. PRODUCT DATA MANAGEMENT
Product data management (PDM) is the business function often within product lifecycle management
that is responsible for the creation, management and publication of product data.
Introduction
Product data management (PDM) is the use of software or other tools to track and control data related to
a particular product. The data tracked usually involves the technical specifications of the product,
specifications for manufacture and development, and the types of materials that will be required to
produce good. The use of product data management allows a company to track the various costs
associated with the creation and launch of a product. Product data management is part of product life
cycle management, and is primarily used by engineers.
Within PDM the focus is on managing and tracking the creation, change and archive of all information
related to a product. The information being stored and managed (on one or more file servers) will include
engineering data such as Computer-aided design (CAD) models, drawings and their associated
documents. Product data management (PDM) serves as a central knowledge repository for process and
product history, and promotes integration and data exchange among all business users who interact with
products — including project managers, engineers, sales people, buyers, and quality assurance teams.
The central database will also manage metadata such as owner of a file and release status of the
components. The package will: control check-in and check-out of the product data to multi-user; carry out
engineering change management and release control on all versions/issues of components in a product;
build and manipulate the product structure bill of materials (BOM) for assemblies; and assist in
configurations management of product variants.
This enables automatic reports on product costs, etc. Furthermore, PDM enables companies producing
complex products to spread product data into the entire PLM launch-process. This significantly enhances
the effectiveness of the launch process. Product data management is focused on capturing and
maintaining information on products and/or services through its development and useful life. Typical
information managed in the PDM module include
Part number
Part description
Supplier/vendor
Vendor part number and description
Unit of measure
Cost/price
Schematic or CAD drawing
Material data sheets
PDM Advantages:
Track and manage all changes to product related data
Accelerate return on investment with easy setup;
Spend less time organizing and tracking design data;
Improve productivity through reuse of product design data;
Enhance collaboration.
History of PDM
PDM stems from traditional engineering design activities that created product drawings and schematics
on paper and using CAD tools to create parts lists (Bills of Material structures - BOM). The PDM and BOM
data is used in enterprise resource planning (ERP) systems to plan and coordinate all transactional
operations of a company (sales order management, purchasing, cost accounting, logistics, etc.)
PDM is a subset of a larger concept of product lifecycle management (PLM). PLM encompasses the
processes needed to launch new products (NPI), manage changes to existing products (ECN/ECO) and
retire products at the end of their life (End of Life).
Capabilities
PDM systems vary in their functionality, but some of their common capabilities are described below.
Access control
Access control to each element in the product definition data base can be specified. Read only access can
be given to personnel not directly involved with the design, development and planning process. Creation
and maintenance access can be given to the individuals responsible for product and process design. As
Product Data Management systems evolve towards Collaborative Product Commerce (CPC) systems
which are used across multiple enterprises in a supply chain, access control becomes more critical and
requires control to limit access to specific projects, products or parts for a specific supplier or customer
Component / Material Classification

Components and materials can be classified and organized and attributes assigned. This supports
standardization by identifying similar components/materials, eliminating redundancy, and establishing a
preferred parts list. Establishing classes and subclasses with attributes allows a designer to search and
select a needed material, component or assembly with minimal effort thereby avoiding having to re-
specifying an existing or similar component or material
Product Structure
Since the relationship of a product's parts is a logical one maintained by the information system rather
than a fixed physical relationship as represented on a drawing, it is possible to readily maintain more than
one relationship. This will allow different views of part relationships in assemblies to correspond to the
various departmental needs (e.g., engineering and manufacturing product structures), while maintaining
rigor and consistency of the product's definition through this single data base. Thus, this one logical data
base can support product and process design requirements as well as maintain part relationships to serve
as a manufacturing bill of materials for MRP II/ERP. In other words, PDM provides the ability to hold not
just the physical relationships between parts in an assembly but also other kinds of structures; for
instance, manufacturing,
financial, maintenance or document relationships. So, it is possible for specialist team members to see
the product structured from their point of view. Product data can be accessed via this complete Bill of
Materials. This access includes assemblies, parts and related documents.An integrated approach to
developing, organizing and maintaining part and product definition data facilitates the design process,
makes design data more readily usable and enhances integration with process requirements
Engineering Changes
Engineering changes can be facilitated with this configuration management and administrative control
embedded within the system. CAE/ CAD tools will enable engineering changes to be more thoroughly
developed and analyzed to better define change impact. Once a design has been created, it can be
checked-out electronically to a workstation for engineering changes. When the changes have been made,
it can be returned to the central database and placed in a queue or an email notification sent for approval
by designated parties. In this manner, a Change Control Board (CCB) can even "convene" and provide
individual member's input electronically. In addition to supporting engineering analysis, information
related to procurement, inventory, manufacturing and cost is available for members of the CCB to
evaluate, designate the effectivity of the change and determine the disposition of existing items.
Process Management and Workflow
PDM systems support process management by defining process steps related to the development,
distribution and use of product data. The process is defined in the form of specified process steps and
release or promotion levels that the data must achieve. The manner in which the process is defined varies
with every PDM system. Within a project, responsibilities are defined for the process steps - who needs to
approve the data or work on the data before it moves to the next release or promotion level. While, the
current process is defined in a company's configuration management or engineering change procedures
and in its new product development process, often changes have to be made to take advantage of the
communication and coordination capabilities of the PDM system. This new data is moved to the next
person's "in basket" within PDM or an email notification is sent.
Collaboration
Collaboration can be supported in several ways. First, a PDM system may be the gateway that a team uses
to access the information under discussion avoiding the need to copy and distribute a series of paper
documents. Second, the PDM system may provide a synchronous or asynchronous collaboration
environment for team members to access, present, review and product feedback on product and process
information. Further, this collaboration tool may incorporate a view and mark-up capability and the
provide the ability to store marked-up files or documents by collaborator. Third, what are now described
as collaborative product commerce systems (CPC), provide extended PDM functionality and access
control outside the enterprise for customers, suppliers and interested third parties (e.g., regulatory
agencies). This speeds the distribution of information, enhances coordination, and speeds the capture of
feedback.
Storage and retrieval of product information
Product structure modeling and management
o Bills of material
o Product configurations
o Product variations
o Product versions
Project tracking and Resource planning
1.16. The essential elements of PLM are:
PLM can be thought of as both (a) a repository for all information that affects a product, and (b) a
communication process between product stakeholders: principally marketing, engineering,
manufacturing and field service. The PLM system is the first place where all product information from
marketing and design comes together, and where it leaves in a form suitable for production and support.
A few analysts use "PLM" as an umbrella term that includes engineering CAD (for "information
authoring"). But product-related authoring tools can include word processors; spreadsheet and graphics
programs; and even requirements analysis and market assessment tools. PLM systems, on the other
hand, are necessarily broad to encompass the entire reach of a product lifecycle, and therefore are
primarily focused on data management, rather than data authoring.
The essential elements of PLM are:
 Management of design and process documents
 Product structure (bill of material) management
 Central data vault (electronic file repository)
 Part and document classification and metadata ("attribute") management
 Materials content identification for environmental compliance
 Product-focused project task assignment
 Workflow and process management for approving changes
 Multi-user secured access, including "electronic signature"
 Data export for loading downstream ERP systems
1.17. Differences between PLM and PDM
PLM manages product information within a database

PLM specifies and controls the complete, approved engineering design: requirements, specifications,
procedures, configurations. It defines the current product structures and planned changes, as well as
maintains the history of all previous design decisions.
PLM data is usually created and managed by engineering in cooperation with other product managers in
purchasing, production, quality, service and sales. It's the container for how to buy, fabricate, assemble,
test, calibrate, inspect, install, repair and even sell the end product. PLM is a cross-department
information storehouse, and its data is often exported to manufacturing systems and supply chain
partners.
PLM manages objects – parts, documents, change forms, and supporting data – within a database. These
objects have:
 Descriptive attributes like owning organization, identifying number, name/title, revision (technical
content) and lifecycle (business rules for what can be done with that content), weight and unit of
measure. CAD files (and any other files) can be attached to database records to further describe
the object.
 Relationships to other objects: parts have requirements, specifications, inspection procedures,
etc.; assemblies have components with quantities; purchased parts have approved sources;
designed parts have design drawings.
These attributes and relationships are created, reviewed and approved using system rules and change
workflows.
PDM manages CAD files within a computer file system

CAD drawings are files, and reside principally in a computer's file system or on a network share. A CAD file
often represents a single part, but several files may represent one part or one file can represent multiple
parts.
Product data management ("PDM") is a specialized file system manager, somewhat like a CAD-oriented
Windows Explorer. PDM's primary job is to manage mechanical CAD files, and the linkages between
related files. These related files (the "model") are usually in a proprietary format defined by the CAD
vendor.
PDM assists in organizing the mechanical aspects of a product, but it's the CAD model (or its derivative
drawings), and not PDM itself, that has utility to downstream users.
Assignment questions
Module 1. Introduction to PLM and PDM
1. Define PLM
2. Explain briefly the life cycle model.
3. List the threads of PLM and explain in brief.
4. Discuss the need of PLM.
5. What are the benefits of PLM?
6. Explain the components of PLM
7. List the applications of PLM.
8. Write a note on PLM feasibility study
9. Explain the characteristics of PLM.
10. Write a short note on external drivers of PLM.
11. Explain briefly the following internal drivers of PLM
a) Productivity b) Innovation c) Collaboration d) Quality
12. What are the elements of PLM? Explain

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STUDY MATERIAL

Dr. Shekharappa B Mallur

Department of Studies in Mechanical Engineering

Subject Title PRODUCT LIFE CYCLE MANAGEMENT

Sl. No Branch Semester Subject

2.0 COURSE OBJECTIVES

MODULE 1: INTRODUCTION TO PLM AND PDM

1 Introduction to PLM, Need for PLM,

2 Opportunities and benefits of PLM, different views of PLM,

3 Components of PLM, phases of PLM,

6 Strategy elements, its identification,

7 Selection and implementation.

8 Product data management,

9 Implementation of PDM systems

1. Product Life Cycle Shows the stages that products go through

Thus PLM is one of the pillars among

1. Customer Relationship Management [CRM]

Product Lifecycle Management (PLM) orientation

1.2. Need for PLM

1. . captures customer requirements better

1. Increase sales revenue

1. Increase sales revenue / Based on increasing revenues:

it can provide. Examples include:

 Increase the number of customers by developing and supporting new products

2. Reduce product unit costs / based on Cutting costs

 Reduce costs of product development projects by making their progress clearer

 Reduce costs of customer acquisition

 Reduce costs of product support, repairs and upgrades

3. Reduce administrative and clerical overhead / Reduce overhead

Simplify regulatory and contractual compliance

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

Reduce process administrative and clerical costs

1.4. The Evolution of PLM

1.4. Different views of PLM

Fig: 1 PLM Phases

1.7.1. A VISION OF TOMORROW:

1.7.2. A REALISTIC ASSESSMENT OF TODAY:

1.7.3. PLAN FOR BRIDGING THE GAP:

1.7.4 IMPACT OF STRATEGY

1.8. IMPLEMENTING A PLM STRATEGY

1.8.2. PROJECT LEADERS ARE VETERANS (LONG EXPERIENCED) AND TEAM

1.8.5. A FINAL SUCCESS FACTOR IS THAT A SATISFICING MIDSET PREVAILS:

1.9. PLM INITIATIVES TO SUPPORT CORPORATE OBJECTIVES:

The four important PLM initiatives to support corporate objectives:

1.9.1. SEE BEYOND FUNCTIONAL BARRIERS

1.9.2. WATCH FOR OPTIMAL DECISIONS THAT ARE SUBOPTIMAL

1.9.3. STRETCH CHANGE MUSCLE

1.9.4. THINK “ONE ORGANIZATION”

1.11. ASSESSMENT OF CURRENT SYSTEMS AND APPLICATIONS

Fig: Product Life Cycle graph for a Product

Basic Stages in the Product Life Cycle

1) Development/ Introduction Stage

 The product is unknown,

 The product is more widely known and consumed,

 The product is competing with alternatives,

 The product faces reduced competition,

a) Investment in R&D by year

1.13. Features of PLM

Typical features of PLM systems include:

1.14. Areas of PLM

Component / Material Classification

1.17. Differences between PLM and PDM

PLM manages product information within a database