PRODUCT

LIFECYCLE
MANAGEMENT
 CONTENTS
What is PLM?
Stages of PLM
Case study of Dell inspiron 1525
Case study of Phillips
Conclusion
References
 INTRODUCTION
• In industry, product lifecycle management (PLM) is the process of managing the
entire lifecycle of a product from inception, through engineering design and
manufacture, to service and disposal of manufactured products.

• It consists of 4 stages:-
• INTRODUCTION
• GROWTH
• MATURITY
• DECLINE
 iNTRODUCTION STAGE
• It is the 1st stage, wherein the product is launched in the market with full
scale production & marketing programme.

• The product is a new one. It means “A product that opens up an entirely

new market, replaces an existing product or significantly broadens the
market for an existing product.”

• In this stage, sales grow at a very lower rate because it is not an effective
demand.
 Characteristics
 Slow sales growth
 Limited distribution
 Negative or low profits
 Little or no competition
 Awareness creation
 Pricing of a product
Integrating with Product Life Cycle
Management
Five main areas integrate into PLM. Depending on the field that you fall into, PLM can be a regular part of
your workflow, or an unknown entity that you are discovering can help with your current work. These five
areas include: 
•Systems Engineering (SE): SE is the overall view and management of a system from the design through its
use, management, and retirement. SE can include people, hardware, software, and information. This area also
includes reliability engineering that is specifically focused on the reliability within the life cycle of a product.
•Product Portfolio Management (PPM): PPM is the overall management of the portfolio of products, and
ensures that you align your product strategies with your business strategies, and that you allocate your
resources properly based on project progress.
•Product Design (Cax): This uses computer-aided technologies to create new products for your customer
base.
•Manufacturing Process Management (MPM): This defines how you make your products so that you can
develop your production processes to be more agile and efficient.
•Product Data Management (PDM): Mostly within PLM, PDM is the management of product data. Version
control of documents is one function of PDM.
MANFACTURING PROCESS IN PRODUCT LIFE
CYCLE IN MANAGEMENT
 Manufacturing a product and marketing go hand in hand .
 Before manufacturing any product industry generally consider the following
points : engineering requirements, cost targets and price points,
manufacturability etc.
 Prototyping reduces uncertainity and decreases risk at launch.
 The model should function closely to the desired end product as possible.
Manufacturing will use this tested prototype as guide to create working models .
 Rather than producing hundreds or thousands of final products with major flaws,
problems can be identified prior to mass production to help your team iterate
quickly and cost effectively.
 Rather than producing hundreds or thousands of final products
with major flaws, problems can be identified prior to mass
production to help your team iterate quickly and cost
effectively.

Before manufacturing any product in introduction stage manufactures need to

see that which medium/ material is the best? Does it have the necessary
durability to withstand the elements-vibration,salt,pressure, etc ?

 During the manufacturing planning phase,all aspects of production must be

ironed out, including manufacturing suppliers and partners and staffing.

 Manufacturing and engineering, in particular,

may need to be available to fix issues or respond to concerns from early
adopters. 
 GROWTH STAGE
 Once the market has accepted the product, sales begin to rise & product
enter its 2nd stage.

 The product achieves considerable & widespread approval in the

market. The sales & profits increases at an accelerated rate.

 In this effective distribution, advertising & sales promotion continue to

be the key factors
Characteristics

Rapid increase in sales.

Product improvements.
Increase in profits.
Reduction in price.
Strengthening the distribution channel. Time
In growth stage the situation is…
GAP IS
CREATED

DEMAND-
PRODUCTION-

TIME
Here are few approaches that a company adopts in these stage to lessen the gap :-
 Use of buffer stock as primary solution in case of surge.

 Resource allocation:- Resource allocation is the process of assigning and managing assets in a

manner that supports an organization's strategic goals. Resource allocation includes managing tangible
assets such as hardware to make the best use of softer assets such as human capital
For eg:- A company having multiple units across the country can ask factory from Madhya Pradesh to
provide the deficit amount of stock to factory in Maharashtra.

 Increase the production by means of :-

• Using Existing Equipment For More Time (Adding Shifts or Overtime)
• Using Someone Else's Equipment (Outsourcing)
• Accelerating the equipment’s production capacity.
 Import or purchase of the intermediate product at reasonable rates and manufacture the finished product.
 The Bullwhip Effect
DEFINITION-The bullwhip effect on the supply chain occurs when changes
in consumer demand causes the companies in a supply chain to order more goods
to meet the new demand. The bullwhip effect usually flows up the supply chain,
starting with the retailer, wholesaler, distributor, manufacturer and then the raw
materials supplier. This effect can be observed through most supply chains across
several industries; it occurs because the demand for goods is based on demand
forecasts from companies, rather than actual consumer demand.
 Causes of Bullwhip Effect

Demand forecast updating 

Order batching
Price fluctuations
Misuse of base-stock policies
Mis-perceptions of feedback and time delays
 How To Handle Bullwhip Effect

• Improve the inventory planning process

• Improve the raw material planning process
• Collaboration and information sharing between managers
• Optimize the minimum order quantity and offer stable pricing
 MATURITY STAGE
It is the stage where most products after surviving competitive
battles ,winning customers trust, successfully enter in maturity phase from
growth phase and in this stability come in terms of demand , technology,
competition.

In short in this stage sales grow at very fast rate and gradually begin to
stabilize. At this stage many changes occur like software advancement,
machine design changes, technology advancements, new trained staff is there
etc.
 Characteristics
• Sales are in their peak level.
• Profits are in the high level.
• Maximize profit while defending profit share.
• Build more intensive distribution.
• It diversify brand and models .
• To match best competitors.

Time
 DECLINE STAGE
• It is the stage where product sales starts decline the reasons for this is
that because of the lower demand , new products enter in the market.

• It is demonstrated by the fall in both sales and profit, in this time

some market strategy are used to reduce the loss are there may be
chances for the company to continue sell their products at a profit if
they are able to reduce their cost .
Characteristics
• Sales starts decline .
• Low cost per customer
Time
• This stage is result of increasing competition
• Profits starts to decline
• Reduce to level needed to retain hard – core loyal customer.
• Distribution go selective ,phase out unprofitable outlets.
What happens to the material after decline
stage?
o If the company is going to shut down then the materials are send
for recycling otherwise the materials are reused to
manufacture some other product in the same company and
there are again some circumstances in which the company is
bought by some other company so in this case the company
proceed with same material only name of the company is changed.
o These are some posibilites occur after decline stage .
CASE STUDY OF DELL INSPIRON 1525
 Introduction Stage (Jan.11.2008-Apr.21.2008)

• The Inspiron 1525 is the part of the series of 'Dell Inspiron’.

• This laptop was first released in January, 11, 2008.
• The cost of the laptop was approximately $500 USD.
• Comparing to the former versions of Inspiron series , its design became smaller, but
the overall quality enhanced within similar price.
 Growth (Apr.22.2008-Jul.17.2008)

• Inspiron 1525 started to increase their sales by about 150% from

introduction stage.
• This date can be stated as 'Growth' stage because people started to be
aware of the product, proven by the increment of the sales.
• The credit for early success is of the marketing team which promoted the
product on large scale through different marketing strategies, since they
are the one who made people to recognize the presence of the product.
 Maturity (Jul.18.2008-Jan.14.2009)
• Toward to the end of 2008, Inspiron started to reach their sales to the
peak.
• Customers were highly satisfied with long-battery life, and its sturdy
design.
• However, in the beginning of 2009, the sales began to diminish.
• The major reason to this issue was when Macintosh, created by Apple,
started to reach its peak and monopolize laptop market. Since Apple's
design and qualities were superior to Inspiron 1525.
 Decline (Jan.15.2009-Feb.26.2009)
• As the time flows to 2009, Inspiron 1525's sales were immensely decreased
that customers do not notice its existence.
• The rise of new laptops and mini-laptops such as iPad influenced the
product to decline.
• Therefore, Dell decided to discontinue making Inspiron 1525 on
February, 26th, 2009.
COMPARATIVE STUDY OF MACBOOK AND DELL INSPIRON

MacBook

Dell inspiron
PRODUCT LIFE CYCLE MANAGEMENT OF PHILLIPS –
THE ‘GOLDEN TAIL’ APPROACH
 Falling LED prices are rapidly accelerating the transition from conventional lamps to
LED lamps. While Philips Lighting is a leader in the transition to LEDs,but in recent
times its products are facing falling demand.
 To address this, the business put together a dedicated team to create a fact-based
product life cycle strategy aimed at having a profitable end game, a so-called ‘golden
tail’.
 Contrary to common belief in end-of-life product management, the team did not just
cut products out of the range but also made intelligent investments.
 The result was increased profitability for a range of products near the end of their
lifecycles.
 CONCLUSIONS
Lifespan of product depends basically depends on marketing strategies
Roadmaps are needed to plan and manage the recycling and reuse of component
of materials.

Adequate feedback mechanism and customer review is necessary for

development of product.

More and more PLM requires lean supply chains in which

suppliers ,manufactures and distributors work together as a seamless entity to
produce innovative customer-focused product in a sustainable manner.
 Introduction Growth Maturity Decline
Characteristics

Sales Low sales Rapidly rising sales peak sales Declimg sales

Costs High cost per customer Average cost per customers Low cost per consumer Low cost per customers

Productiom capacity Low High Very high low

Profits negative Rising profits High profit Declining profits

Customers innovators Early adopters Moddle majority Laggards

Competitors few Growing Stable number beginning to decline Declining number

number

Marketing objective Create product awareness and trial Maximize market share Maximize profit while defending Reduce expenditure and
market share milk the brand

product Offer a basic product Offer product extension, service, warranty Diversify brands and items model Phase out weak product

price Charge cost-plus Price to penetrate market Price to match Cut price

distribution Build selective distribution Build intensive distribution Build more intensive distribution Go selective phase out

sales promotion Use heavy sales promotion to entice Reduce to take adventage of heavy Increase to encourage brand switching Reduce to minimum level
trials consumer demand

Advertising Build product awareness among early Build awareness and interest in the mass Stress brand differences and benefits Reduce to level needed to
adopters and dealers market retain hard-core loyals
Thank You..