MODULE 1

INTRODUCTION TO PRODUCT LIFE CYCLE MANAGEMENT

1.1 INTRODUCTION
Product lifecycle management makes it possible to command the whole life span of a
product and the information connected with it. Efficient product life management enables
companies to compete successfully in international and global markets.

Today we hear many companies say - Product Lifecycle Management (PLM) is an important
part of their business strategy or PLM has a big role in their corporate strategy. What does
this mean in practice? I can say for sure that without doubt the most difficult issue
regarding business strategy and strategically decisions is the implementation of the
decisions made in the strategy definition. This generalization also applies also PLM.

It might be difficult to find and create a practical business strategy for a company, however
the making it true is more difficult. This is especially true when the implementation of
strategically decisions require large scale transformation – a long lasting, corporate wide
change process - in daily operations. When talking about PLM and business strategy usually
it is all about this, making a huge leap to next level regarding lifecycle management
operations and product management practices. When the first big transformation into well
controlled and IT- system enabled PLM has been made and PLM operations are business as
usual the real life realization of strategically decisions in the PLM area becomes much more
straight forward.

1.2 IMPORTANCE OF PLM:

PLM - is an essential tool for coping with the challenges of more demanding global
Competition and ever- shortening product and component lifecycles. New and better
products must be introduced to markets more quickly, with more profit and less labor, and
the lifecycle of each product must be better controlled, for example from financial and
environmental perspectives. Fierce competition in global markets drives companies to
perform better. In order to perform well financially, companies must be able to make
informed decisions concerning the lifecycle of each product in their portfolio. Winner
products must be introduced to market quickly and poorly performing products must be
removed from the market. To do this well, companies must have a very good command of
the lifecycle of each product. A good command of product and process definitions over a
large product portfolio requires that ways of operation and IT-systems must support each
other flawlessly.
Today’s complex products require the collaboration of large specialist networks. In this
kind of supplier and partner network, product information must be transferred between
companies in electronic form, with a high level of information security. Overall, PLM can
also be considered as a tool for collaboration in the supply network and for managing
product creation and lifecycle processes in today's networked world, Bringing new
products to market with less expenditure of time and effort.

However, the benefits of operational PLM go far beyond incremental savings, yielding
greater bottom line savings and top-line revenue growth not only by implementing tools
and technologies, but also by making necessary, and often tough, changes in processes,
practices and methods and gaining control over product lifecycles and lifecycle processes.
The return on investment for PLM is based on a broader corporate business value,
specifically the greater market share and increased profitability achieved by streamlining
the business processes that help deliver innovative, winning products with high brand
image quickly to market, while being able to make informed lifecycle decisions over the
complete product portfolio during the life cycle of each individual product.

Operational efficiencies are improved with PLM because groups all across the value chain
can work faster through advanced information retrieval, electronic information sharing,
data reuse, and numerous automated capabilities, with greater information traceability and
data security. This allows companies to process engineering change orders and respond to
product support calls more quickly and with less labor. They can also work more
effectively with suppliers in handling bids and quotes, exchange critical product
information more smoothly with manufacturing facilities, and allow service technicians
and spare part sales reps to quickly access required engineering data in the field.

In this way, PLM can result in impressive cost savings, with many companies reporting pay-
off periods of one to two years or less based solely on reduced development costs .PLM also
enables better control over the product lifecycle. This gives opportunities for companies to
boost revenue streams by accelerating the pace at which innovative products are brought
to market. Excellent lifecycle control over products also gives new opportunities to control
product margins more carefully and remove poorly performing products from the markets.
This set of benefits, driving top line revenue growth and bottom line profitability, makes
ROI extremely compelling, with some industry analysts characterizing PLM as a
competitive necessity for manufacturers.

How It Is Understood?
Well, what does all this – the strategically value of PLM and the undisputable benefits of it -
mean for corporate management? It means in practice making a big decision to implement
the defined strategy in practice in order to gain the wanted strategically and operational
benefits.
This decision making is usually the first pitfall of PLM realization. The management
decision is usually to implement an IT system to reach for the benefits promised. The big
question however is, that why an earth if PLM is a strategically issue for a corporation and
large scale transformation procedure it turns out to be an IT-project in the end? Are all
other strategically objectives in a company turned into IT-projects – I would definitely say
no.

The second common mistake usually why PLM misses the targets set for it, is the fact that
companies go straight to implementing an IT-system to meet PLM development needs and
solve problems at hand. Companies seldom recognize the fact that the PLM maturity of the
company is too low to launch a large scale PLM system project for the first time. There
simply is not enough understanding of PLM and its possibilities, but also its impacts to
current way of doing things. Usually the case also is that the processes and practices of a
company are not mature enough to be utilized in PLM context.

In this kind of immature development phase, where the decision has been made to start the
PLM implementation project and targets have been set for creating realization for PLM, it
means that IT will lead the way to the targets making all very major essential business /
process definitions, making up business rules, etc. in the PLM area. Well everyone can
guess – is this the right way to do this ?The third big why – why PLM fails to deliver the
benefits set for it is because the PLMIT solution is built as an independent island, a point
solution, without lager and deeper connections to daily business. Again I can be said that IT
drives the development of PLM, when all necessary business drivers has not been
recognized, defined or understood.

How It Should Be Realized?

How to tackle these pitfalls then? One good solution is to grow the PLM maturity of the
company by creating a comprehensive PLM business concept first and after that start
planning for a PLM project with high objectives. Building the PLM maturity and creating a
PLM business concept helps companies and organizations in understanding the nature and
the scale of the transformation of the practices; it also builds foundation for new
management models in the PLM area and naturally creates the practices and the process
for new ways of executing efficient PLM. I.e. the benefits of the creation of the PLM business
concept are twofold: the PLM maturity will develop during the definition of the concept
while the required PLM business decisions are made and the rules and practices are
developed outside an IT-implementation program by proper resources of the organization.
In the following there is a definition of Saaksvuori PLM Maturity model that defines five
stages of PLM maturity.

Based on exhaustive experience regarding PLM implementations I would claim that a

company about to launch a PLM implementation project must be on level 3 (Saaksvuori
PLM maturity scale) before stating a PLM project. This is absolute necessity in order to
enable smooth implementation of PLM practices as well as an IT system supporting PLM.
Being on the level 3 assures that all required and vital PLM related business decisions have
been made and a smooth PLM implementation is enabled. In practice this means that the
business definitions referred to in the Saaksvuori PLM concept are made on one way or the
other.

1.3 PLM CONCEPT:

The purpose of a PLM concept – product lifecycle management concept - is to describe the
business framework, the drivers, rules, terms and requirements for product life cycle
management in certain context.

The product lifecycle management concept, at its simplest, is a general plan for practical
product lifecycle management in daily business at the corporate level, in a particular
business or product area. It is a compilation of business rules, methods, processes, and
guidelines as well as instructions on how to apply the rules in practice. Usually, the product
lifecycle management concept covers at least the following areas:

 Terms and abbreviations used in this field: (definition of product, product element,
component, item, document, lifecycle, lifecycle phases, etc.)
 Product information models and product models
 Definition of products and product-related information objects:
 Definition of product information (What is considered as product information?)
 Items (what is an item, how it is identified?
 Product structures (how a structure is build, how it will behave, what are the rules
attached to it?)
 Configuration rules (what are the relationships is a product structure, how will they
behave? etc.)
 Product-related documents (what is a product document, how it is identified? Etc.)
 Product lifecycle management practices and principles used and applied in the
company (how products are managed throughout their lifecycle, identification of
information management principles such as versioning principles, information
statuses, etc.)
 Product management related processes
 Product information management processes
 Instructions on how to apply the concept in everyday business

The PLM concept must be created by experts having through understanding of the PLM
best practices and common methods as well as the current practices within the company.
The creation of the concept must be done with the management of the company, simply
because there are number of high level business decisions to make while creating the
concept. It should be notes as well that the concept must be reviewed closely by the
organization utilizing the practices defined in the concept, this is the only way to bind the
personnel into executing the practices defined in the concept.

The significance of building this kind of product information concept lies in the need to set
common business rules for the entire corporation and its business and product areas. A
carefully specified concept makes it possible to achieve synergies between businesses and
between products. A common product information concept allows for the smooth and
speedy implementation of PLM-related processes and practices because the most crucial
areas of information have been agreed at common and conceptual levels.

A good PLM-concept is never static; it keeps evolving in tune with the business and its
Requirements.

Definition of PLM:
"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."

OR

"PLM is a systematic concept for the integrated management of all product related
information and processes across the extended enterprise through the entire lifecycle,
from concept and design, to production, distribution, maintenance, and retirement"

PLM integrates people, data, processes, and business systems and provides a product
information backbone for companies and their extended enterprise.

OR

Product Lifecycle Management PLM is integrated, information driven approach to all

aspects of a product’s life, from its design through manufacture, deployment and
maintenance – culminating in the product’s removal from service and final disposal. By
trading product information for wasted time, energy, and material across the entire
organization and into the supply chain, PLM drives the next generation of lean
thinking.

PLM software suites enable accessing, updating, manipulating, and reasoning about
product information that is being produced in a fragmented and distributed environment.
Another definition of PLM is the integration of business system to manage a product’s life
cycle.
1.4 PLM LIFECYCLE MODEL:
At the center of the model is an information core. This core representation all the product
data and information about the product throughout the product’s life .The information
core is separate from the function or stages that use it .the product information does not
belongs to any one functional area, but is available to all functional areas. Around the
information core are the functional areas that comprise a product’s life cycle.

Figure shows that representation of the PLM model

Product life cycle management classified into four major functional area they are
as follows:

1.4.1 CONCEIVE: Imagine, specify, plan, innovate

The first stage is the definition of the product requirements based on customer, company,
market and regulatory bodies’ viewpoints. From this specification, the product's major
technical parameters can be defined. In parallel, the initial concept design work is
performed defining the aesthetics of the product together with its main functional aspects.
Many different media are used for these processes, from pencil and paper to clay models to
3D CAID computer-aided industrial design software.

In some concepts, the investment of resources into research or analysis-of-options may be

included in the conception phase – e.g. bringing the technology to a level of maturity
sufficient to move to the next phase. However, life-cycle engineering is iterative. It is always
possible that something doesn't work well in any phase enough to back up into a prior
phase – perhaps all the way back to conception or research.
1.4.2 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. 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 system 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 take place. This could include transferring engineering data (geometry and part list
data) to a web based sales configuration.
1.4.3 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 tools such as
Maintenance, Repair and Operations Management (MRO) software.

There is an end-of-life to every product. Whether it is disposal or destruction of material

objects or information, this needs to be considered since it may not be free from
ramifications.

1.5 THREADS OF PLM:

If we take a close look at PLM, we can discern some of the conceptual and technological
threads that have gone into forming PLM. Much like a fabric woven from threads, PLM is
more than the sum of these threads, and it is how they are woven together that makes PLM
such a powerful enabler for the next wave of productivity. The threads we will examine
are:

 Computer Aided Design (CAD)

 Engineering Data Management (EDM)
 Product Data Management (PDM)
 Computer Integrated Manufacturing (CIM)

1.5.1 Computer Aided Design:

CAD is the use of computer programs to create two- or three-dimensional (2D or 3D)
graphical representations of physical objects. CAD software may be specialized for specific
applications. CAD is widely used for computer animation and special effects in movies,
advertising, and other applications where the graphic design itself is the finished product.
CAD is also used to design physical products in a wide range of industries, where the
software performs calculations for determining an optimum shape and size for a variety of
product and industrial design applications.

In product and industrial design, CAD is used mainly for the creation of detailed 3D solid or
surface models, or 2D vector-based drawings of physical components. However, CAD is also
used throughout the engineering process from conceptual design and layout of products,
through strength and dynamic analysis of assemblies, to the definition of manufacturing
methods. This allows an engineer to both interactively and automatically analyze design
variants, to find the optimal design for manufacturing while minimizing the use of physical
prototypes.
CAD application are major feats of software engineering.CAD system take a rule of physical
structures, line, vectors, surface, etc. and attempt to mimic them within the memory space
of a computer system. As the richest description of product information, CAD
representations are at the heart of PLM.

While private networks have connected CAD systems for many years, the availability of the
internet over the past decades has made the sharing of the math-base product descriptions
available on a much wider basis, not only within an organization but throughout the supply
chain. As available bandwidths have continued to increase, the using and sharing of this
data have accelerated.

The benefits of CAD include lower product development costs, increased productivity,
improved product quality and faster time-to-market.

 Better visualization of the final product, sub-assemblies and constituent parts in a

CAD system speeds the design process.
 CAD software offers greater accuracy, so errors are reduced.
 A CAD system provides easier, more robust documentation of the design, including
geometries and dimensions, bills of materials, etc.
 CAD software offers easy re-use of design data and best practices.

1.5.2 Engineering Data Management:

Engineering Data Management is simply the organizing and control of the information
created to design, sell, manufacture, and maintain a product. And it continues over the
entire lifetime of the product.

The starting with the conceptual design, digital engineering information about a product is
generated by marketers, designers, and engineers. This information is an important asset
of the company, but too often it is simply left on the hard drive of the author, where no one
else in the organization can use it. Usually, there is little or no control over changes or
sharing of the data until the product is released and the information is manually entered
into a MRP OR ERP system and manufacturing information is added. Then any changes in
the engineering department have to be coordinated with the manufacturing information in
the MRP OR ERP system.

1.5.3 Product Data Management:

The Product data management 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 goods.
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 lifecycle management and configuration 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.

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

1.5.4 Computer Integrated Manufacturing:

CIM is the manufacturing approach of using computers to control the entire production
process. This integration allows individual processes to exchange information with each
other and initiate actions. Through the integration of computers, manufacturing can be
faster and less error-prone, although the main advantage is the ability to create automated
manufacturing processes. Typically CIM relies on closed-loop control processes, based on
real-time input from sensors. It is also known as flexible design and manufacturing.

The term "computer-integrated manufacturing" is both a method of manufacturing and the

name of a computer-automated system in which individual engineering, production,
marketing, and support functions of a manufacturing enterprise are organized. In a CIM
system functional areas such as design, analysis, planning, purchasing, cost accounting,
inventory control, and distribution are linked through the computer with factory floor
functions such as materials handling and management, providing direct control and
monitoring of all the operations. As a method of manufacturing, three components
distinguish CIM from other manufacturing methodologies:

 Means for data storage, retrieval, manipulation and presentation.

 Mechanisms for sensing state and modifying processes.
 Algorithms for uniting the data processing component with the sensor/modification
component.

CIM is an example of the implementation of information and communication technologies

(ICTs) in manufacturing. CIM implies that there are at least two computers exchanging
information, e.g. the controller of an arm robot and a micro-controller of a CNC machine.
Some factors involved when considering a CIM implementation are the production volume,
the experience of the company or personnel to make the integration, the level of the
integration into the product itself and the integration of the production processes. CIM is
most useful where a high level of ICT is used in the company or facility, such as CAD/CAM
systems, the availability of process planning and its data.

1.6 THE NEED FOR PLM:

There are so many reasons why PLM is needed ,that is difficult to know which are the most
important and as the reasons will be different for companies operating in different
industries and different countries, probably impossible to priorities them.so here a list of
very briefly described reasons.

 Outsourcing has led to long design and supply chains with the results that
product development, manufacturing and supports activities are spread out over
different organizations ,often over different continents ,managing them when they
were in one location was difficult enough, managing them across an extended
enterprise in many times more difficult.
 The functionality of the product goes on increasing, complicating their development
and support.
 Competitive pressure results in less time being available for product development.
 Many companies now offer complete solutions, rather than individual products
.This adds a new layer challenges .solutions are more complex to develop and
support than single products .
 Many more services are offered along with product. Sometimes, it seems as if the
services are more important than the product. Developing and supporting these
services may require additional skills.
  Consumers want customized products – which are much more difficult to develop
and supports than standard products.
 Population trends, such as ageing in Western countries, lead to the need for new
types of product.
 Increased environmental awareness leads to calls for reduced pollution from
manufacturing and logistics.
 The rapid emergence of new technologies provides many opportunities –but also
the difficulties of industrializing them and ensuring their safe use.
 The life time of some product is now so short that development of a future
generation has to starts before the development of the previous generation has been
finished.
 Geopolitical developments-such as the appearance of china as a major exporter of
the manufactured goods, India as a leading producer of software and software
developers and Russia as a leading producer of oil and gas- leads to many changes.

1.7 OPPORTUNITIES OF PLM:

 At the beginning of the 21th century there are huge opportunities for
manufacturing companies.

 Globalizations has increased the no of potential customers for their product and
services
 The world head count continues to grow by more than 1, 00,000 per day, promising
even more customer in the future.
 Electronics, Biotechnology and Nanotechnology provides the basis for new product.
Nanostructure will be assembled by sticking the atoms and molecules together
 Designer drugs will be developed to match an individual particular genetic make-up,
further development in computing; the internet, the World Wide Web, the grid mobile
telephony and data base technology will create and meet need that had not been
thought of before.
 Wrist top computers and finger ring computers will be common. Intelligent clothes will
changes performance as the weather changes and the wearer’s mood changes.
 Direct brains implants of memory and processing power will increase human
performance. People will have their individual web address.
 Sensor implanted in the body will monitor organ performance. Results will be
automatically transmitted and viewable in real time on personal web sites .Initially;
uses will be passive for example showing heart beats and brain activity.
 Later cyborg behavior will be controlled directly by changing parameters on a web form
or from a mobile device. RFID offers numerous opportunities to get better
understanding of the way product behave over their life cycle.
 Many products will have their own web address, with performance data and feedback
being available online.
 Environmental requirements and the desire for sustainable development will open up
new opportunities, in particular for a product’s end of life. Business models will change,
with more and more services being offered around product. PLM will enable the
development and supports of new products and services

1.8 BENEFITS OF PLM:

To convince people of the need for PLM its usually necessary to explain and quantify, the
benefits for them, this is rarely easy .they may not understand how or why a benefits arises.
Often, a benefits will not occur in that part of the company where the efforts to achieve it is
made sometimes, the benefits will come later in the life cycle, sometimes earlier. Often,
another improvement activity could lead to the same benefits .the same benefits can be
expressed in different terms of time, cost and equality. Often benefits will overlap. To make
things even more complicated, there are different ways to classify benefits and different
ways to present them .one way is to show where PLM can help a company to improve
effectiveness, efficiency and control throughout the entire product life cycle, enabling it for
example:

 Develop product faster

 Develop product in an international collaborative development environment
 Manufacture in-house, or outsource manufacture to low cost suppliers
 Deliver the required product at the required time in the required place
 Provide superb support of product use
 Prevent future product failures through knowledge of the past failures
 Provide maintenance information on line ,with up to date documentation and
service bulletins
 Provide better product maintenance and service until the product is eventually
recycled and disposed of in an environmentally –sensitive manner
 Capture customer requirement better
 PLM helps reduce the cost of a product.
 PLM helps bring better products to market faster, and enables better support of
customers' use of products.
 PLM enables the value of a product to be maximized over its lifecycle.
 PLM provides transparency about what is happening over the product lifecycle.
 Create more innovative ideas
 Improve the sales process, wherever the customer is located.
1.9 PHASES OF PLM:
The product life cycle - period usually consists of five major steps or phases:
1. Product development phase
2. Introduction phase
3. Growth phase
4. Maturity phase
5. Decline phase

These phases exist and are applicable to all products or services from a certain make of
automobile to a multimillion-dollar lithography tool to a one-cent capacitor. These phases
can be split up into smaller ones depending on the product and must be considered when a
new product is to be introduced into a market since they dictate the product’s sales
performance.

Product Life Cycle Graph

1.9.1 Product Development Phase:

 Product development phase begins when a company finds and develops a new
product idea.
 This involves translating various pieces of information and incorporating them into
a new product.
 A product is usually undergoing several changes involving a lot of money and
time during development, before it is exposed to target customers via test markets.
 Those products that survive the test market are then introduced into a real
marketplace and the introduction phase of the product begins.
 During the product development phase, sales are zero and revenues are negative. It
is the time of spending with absolute no return.
1.9.2 Introduction Phase:
The introduction Stage of the product life cycle occurs when a product is first introduced to
its intended target market.

 Sales grow slowly

 Profit is minimal due to large investment costs in product development
 The marketing objective for the company is to create customer awareness and
Stimulate trial.
 Companies often spend heavily on advertising and other promotion tools to build
product awareness.
 Primary demand - the desire for the product class rather than for a specific Brand
 As more competitors introduce their products a firm focuses on creating selective
demand, preference for a specific brand.
 Other marketing mix variables are important at this stage.
 Gaining distribution can be a challenge because channel intermediaries may be
hesitant to carry a new product.
 During introduction pricing can be either high or low. A high price or skimming
strategy is used to help the company recover the costs of development as well as
capitalize on the price insensitivity of early buyers.
 Since high prices tend to attract competitors because they see the opportunity for
profit, a company can price low, referred to penetration pricing, to build unit
volume.

1.9.3 Growth Phase:

The growth stage of the product life cycle is characterized by rapid increases in sales and
when competitors appear.

 Profit usually peaks during growth stage because of more competitors and more
aggressive pricing.
 Advertising shifts to stimulating selective demand, in which product benefits are
compared with those of competitor’s offerings to gain market share.
 Product sales grow at an increasing rate because new people try or use the product
and a growing proportion become repeat purchasers - people who tried the product,
were satisfied and bought again.
 Failure to achieve substantial repeat purchasers usually means an early death for a
product.
 It is important to gain as much distribution for the product as possible.
1.9.4 Maturity Phase:

The maturity stage is characterized by a slowing of total industry sales for the product
class.

 Weaker competitors begin to leave the market

 Most consumers who would buy the product are either repeat purchasers of the
item or have tried and abandoned it.
 Sales increase at a decreasing rate as fewer buyers enter the market
 Profits decline because there is fierce competition
 Marketing attention is directed toward holding market share through further
product differentiation and finding new buyers.

1.9.5 Decline Phase:

The decline stage occurs when sales and profits begin to drop due to changes in the
marketing environment.

 Technological innovation often precedes the decline stage as newer technologies

replace older ones.
 Product deletion - dropping a product from the company’s product line
 Harvesting - when a company continues to offer the product but reduces marketing
costs.
 When sales begin to drop off, a product or service is considered to be in its decline
stage.
 Many competitors have already left the scene.
 It is at this point that the company must decide whether to abandon the product
entirely or modify it to meet new demands in the market.
 Modification would move the product or service to a different stage in the life cycle.

1.10 PLM FEASIBILITY STUDY:

The feasibility study is carried out to find out what type of approach and what level of
response is appropriate for the challenges that the company faces.

 May be an enterprise wide initiative targeting new market leading products and
control over the entire life cycle is needed? In which case it would be useful to
develop a PLM vision, a PLM strategy and a PLM plan
 May be the main benefits can be achieved by implementing new life cycle processes
across several function?
 May be there are benefits to be had by targeting some very precisely defined
improvement areas?
The feasibility study should lead to a report of the form and contents as show in below

Title: feasibility study to develop and assess options for our PLM activity.
Table of contents
1. Executive summary and Recommendations
2. Introduction
2.1 Background to the study
2.2 The PLM activity- ours and theirs
3. The options
3.1 Option A
3.2 Option B
3.3 Option C
4 SWOT analysis
5 Conclusion
Appendices
A.1 Glossary
A.2 Industry contacts and References

1.11 PLM VISIONING:

1. PLM Awareness Workshops to analyze a company’s processes and assess the need
for PLM.
2. PLM Academy that provides training to clients to increase awareness of PLM
processes and products in the Marketplace
3. Making PLM software's to work at faster rates.
4. Visioning to reduce the time of work while accessing the information about the
product.

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. Even if our vision of tomorrow is a duplicate of today, meaning
that we are simply continuing status quo, which is a legitimate vision of tomorrow. Our
plan then to accomplish anything new, but maintaining the status quo is not only a
legitimate endeavor for us to undertake, it is an extremely common goal for any number of
organization. Vision of tomorrow for organization almost always includes the
organization’s being larger and more profitable. As we saw from value Map, this translates
into increased revenues and lower costs. Because of its impact across the entire
organization, PLM is a logical part of a strategy to increase revenues and lower costs. PLM
decreases costs through lean thinking, trading off information for wasted time, energy,
material. The resources freed up can drive an increase in product variety, quantity,
functionality, and quality.