Research overview
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PLM debate

Discussion paper
- PLM in AEC
- PLM definition
Vendor responses:
- Agile
- Arena
-
Baan
- IBM
- IFS
- LMS
- Manugistics
- MatrixOne
- Peoplesoft
- PTC
- SAP
- SolidWorks
- Tecnomatix

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The PLM Debate

As part of our ongoing research programme, Cambashi is running a debate on product lifecycle management (PLM) and how it interfaces with the supply chain. Various IT vendors were invited to respond to a discussion paper : "In 2004, will PLM and SCM still be recognisable TLAs?" (a version of which was first published in the FT)

Manugistics response

Stephen Franks, VP Manufacturing Europe

What is PLM?
Product Lifecycle Management (PLM) is a set of solutions that facilitate more efficient product collaboration between functions within the enterprise (Sales, Marketing, Engineering, Purchasing, Manufacturing, Planning, Forecasting, Service, Customer Support) and external to the enterprise with the companies' suppliers and customers.
PLM streamlines all the activities and data involved with a product throughout it's entire lifecycle, including product concept, design, sourcing, manufacturing, transportation, storage, promotion, sales, support, maintenance, retirement, and even recycling. There is a significant amount of data associated with the product, the programs and projects, and the people and functional areas involved in this set of complex processes.

PLM Background
PLM is the evolution of Product Data Management (PDM) and Collaborative Product Commerce (CPC). PDM started as a way to keep track of all the complex information about a product. Some of the information it encompasses includes: product configurations, data vaulting (check in and out), audit trails of product information changes, document management, workflow, product data publishing, bill of material (BOM) management, engineering change data, parts definitions, specifications, CAD drawings, geometric models & images, manufacturing process plans and routings, and quality management data.

Data
One of the benefits of capturing this information is in providing visibility to the information throughout an organization, giving people consistent data, and also leveraging intellectual capital that may otherwise be lost when a person leaves the company, or that might be lost because of a long product lifecycle. Aerospace & defense manufacturers can take years for an aircraft to go through conceptualization and design to finally being complete. A PDM system does not just keep current product information, but also keeps all historical information about a product. A company many want to manufacture a product again in the future, so they would need to have access to the product specifications and manufacturing data that were used the last time the product was made. In shorter lifecycle industries like Hi-Tech, the rapid pace of development necessitates a strong engineering change management capability, and the PDM system needs to track these changes and store the BOM configuration for each product iteration.

Collaboration
Once all this data was collected and stored and managed within the enterprise, it was a natural evolution to enable customers and suppliers to have access to this information. Several trends also fueled the need to go outside the enterprise: company outsourcing of key business processes such as manufacturing, the Internet's pervasiveness, stronger computing power, and a shortage of qualified design engineers within North America all contributed to the PLM drive toward collaboration with suppliers and customers. This need to share information centered around allowing suppliers and customers input to the design process, and evolved into CPC.

Product Lifecycle Management
Although most vendors in the PLM market space talk about being able to manage data and collaborative processes around the entire product lifecycle, their traditional strength has focused on the product concept and design part of the lifecycle. Some vendors are also stronger in the support of the "support and maintain" part of the lifecycle, in that they can track assets, serial numbers, and other data associated with repair of products. Recently, however, PLM vendors have been extending into the sourcing part of the lifecycle, because there are many synergies between designing a new product (or making a change to an existing product) and being able to both parametrically search for and source components needed for the design. PLM vendors have also added capabilities to their repertoire to manage the programs and projects associated with getting a product (or product change) from concept through to market launch, enabling the people, functional areas, suppliers, and customers involved to collaborate on the complex product data.

Complete Product Lifecycle Optimization
However, PLM companies today don't really manage the broad PLM vision that tells them how to manufacture, store, transport, promote, price, sell or retire a product. They cannot forecast product demand, determine pricing or promotions for the product that is being designed, or plan for where and when product will be sold, determine where and how much product should be manufactured, and how much of each component should be purchased from a supplier. They also cannot deal with forecasting and planning for maintenance and repair needs, or for the reverse logistics which are a requirement today in some industries. This is where there is synergy with Manugistics' capabilities; Manugistics SCM and PRO solutions together with a PLM vendor can together fill in the complete PLM lifecycle and optimally consider supply chain constraints, component inventories, pricing, and other factors in the up-front design process.


You can find out more about Manugistics on their website: www.manugistics.com


If you have any feedback to add to this debate, please email plm@cambashi.com with the subject "PLM debate".


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