Product Lifecycle Management: A Boon for Product Development Companies
Beverland Michael B., Ewing Michael T.,
Matanda Margaret J., from Department of management and marketing, University of
Melbourne and Department of Marketing, Monash University, in their research
published in Sept. 2004 in the Industrial Marketing Management Journal stated
that there are two types of products that are created and brought into the
market: the products that drive the market, and the products that are driven by
the market. Theirs was a case study analysis of new product development
practices with context to the Chinese Business –to-Business Firms. However,
their understanding that the products created either drive the market or are
driven by the market is generic and can be applied to all the companies
universally.
The products that fall into the former
category are usually the “Clutter Breakers” and/or are also known as “Category
Killer” products. These products are unique, novel and highly innovative;
something which the people haven’t seen or imagined before. One of the greatest
examples of “Category Killer” products is Apple iPhone and iPod. Another
classic example could be Sony’s walkman. Radical Innovations like these have
revolutionized the industries and changed the way Markets function.
Once the companies succeed in elevating the
standards of product innovation and quality to such a magnificently high level,
that it becomes very difficult for the competition to catch up with them, then
the company manages to retain and secure a competitive edge for a longer time.
They set the bar so high, that the competition struggles to match up with them.
Innovation, time to market, and cost are the
three crucial determinants of developing a product that drives the market. With
everything else, be it efficient work flow configuration, effective customer
management, incorporating proficient supply chain management models, the
company can surpass the competition for a temporary period as the competition
soon manages to match up with them. But managing to match up with exemplary product
innovation is difficult and that is where the company can win the game and make
competition struggle.
Where does
PLM fit in Product Development cycle:
Companies have to address the four basic and
most critical areas for effective Business Management and Expansion namely:
- Customers: which
the companies manage through Customer Relationship management (CRM) - Suppliers: which
companies address through Suppliers Chain Management (SCM) - Overall
Enterprise Administration and Resource Planning: which companies manage
through ERP Solutions i.e. Enterprise Resource Planning - Systems
planning: which companies achieve through SDLC tools i.e. Systems
Development Life Cycle.
These are the broad areas which any company
irrespective of the domain and industry they operate in, has to address for it
to succeed.
Nonetheless if your product quality is poor,
or is not up to the mark, then none of these tools actually have the strength
and potential to lift the company to success and glory. Customer relationships
and supply chain management will be important only when the company has a
robust product to sell that has generated a huge demand in the market. All
these tools will fall short and will be rendered unsuccessful if your product
does not match or supersede the competition standards.
This is where PLM comes in the picture. PLM
caters to and encompasses all the critical areas of Product design and
development data management. This enables the companies to address the core
area of Robust Product Development without which the company would not be able
to secure a lead position and create a niche or space of themselves in the
market.
PLM typically works within and addresses the
five primary functional areas name:
- Systems
Engineering - Product and
Portfolio Management - Product Design
- Manufacturing
Process management - Product data
management.
What is PLM:
PLM basically helps companies integrate,
configure and manage their design data, processes, and work flows right from
the initial stages of Product Development cycle, i.e. Concept stage to Design,
Simulation and Validation, right through to Manufacturing and releasing the
product to market. It helps companies with the setting up of effective data
management systems, efficient workflow and process configurations, and overall
system validation. PLM also automates the work flows that helps exert a strong
grip on the product development process, and thereby bring more control and
discipline, and streamline the overall development cycle. It helps unite the
entire eco-system of Product Development under one virtual roof and empowers
them to work and act as one. PLM integrates the best and coherent workflows
within the development cycle which are self monitored. for e.g. a design will
not be available for further work unless it has been approved by DFM (Design
for Manufacturing) department. It is a system that links the entire development
cycle in a single thread by joining the loose ends to create a single,
straight, streamlined process of product development.
Benefits of
PLM:
Optimized
Work Flows: Product development today is not restricted
to a single location. The development teams are working at multiple locations.
It is hence critical to integrate all the development teams in a virtual single
environment and have them on the same page. This is not possible without PLM.
Design for Manufacturing, Design for Servicing, Design for assemblies etc. are
all integrated in PLM. PLM also ensures
that the designers are working on the right version of design and also updates
them about the status of design i.e. if the original design has been modified,
or if the design is in use etc. It helps configure and automate the work flows,
which brings in the necessary discipline, accountability and streamlines the
product development process. PLM covers the entire eco-system of product development
including the suppliers and hence helps establish efficient work flows through
latest design status updates, design data storage and retrieval, and data
security.
Time to
Market: Time to market is a key factor making a
significant contribution to the success of the company. The company will
succeed only if they manage to launch the right product at the right time and
at the right price. Delay in time-to-market can result in company losing the
competitive edge in the market.
It is said that the designer spends 20% of
his time in searching, locating and accessing the previous or relevant design
data. PLM facilitates the companies to organize the data so systematically that
it can be retrieved in a click of the button.
The designers, if they are unable to locate
the desired data, prefer to design the component/part right from the scratch.
Though the component/part may look similar to the other parts in the same
batch, but when watched closely, the expert will definitely understand that
though it may look similar it is not the replicate or is not exact to the
original part. This is where company may fail to create standardized parts.
However, with PLM, searching the required
design data is so simple and less time consuming, that the designers can easily
locate the original design and can create a exact new replica of it. This thus
helps companies to achieve standardization and maintain the quality of the
product irrespective of the quantity of products to be developed.
Because PLM helps companies integrate the
most potent and optimized configuration of work flows, the product development
cycle is faster, more effective and unduplicated which results in entering the
market early.
Data storage
and Archival: there is a fear that when a designer working
on a critical design project leaves the company, all the knowledge is lost with
him. This may cost the company additional time and cost to re-develop the
product/component/part design. This problem would cease to exist if company
implements PLM in their systems. One of the greatest advantages of PLM is that
it saves and stores all the earlier versions of design, in the repository,
which can be easily archived and utilized as a foundation to build and develop
the new design. Hence it saves lot of time as the companies do not have to
invest additional time in designing right from the scratch. PLM enables storage
of all the data related to product development in an Integrated Way. The data
is not only restricted to design data but covers all types of data like
suppliers, costing, Material properties, analysis results, delivery lead time
as well as the history of development. This can be easily archived at any time
in future. This saves lot of repetition of part development. This saves
considerable cost and time. In addition all the acquired knowledge of the
earlier product development phases is available through all this stored data.
This ensures that acquired knowledge is retained for future use and is not lost
when people leave.
Centralization
of data: data management is easy because all the data
and knowledge is securely stored in a central, single location. This is
especially useful when multiple teams comprising of 8-10 designers are working
on developing the components or parts of a single product from diverse
geographical location. OEMs and other big companies have several suppliers
working and assisting them by developing individual components or parts that
when assembled together build a complete product. At such times, the entire
process may go hay wire and cause chaos and complications if there isn’t enough
coordination within and between these teams. With PLM effectively incorporated
and implemented in their systems, this problem could be very easily tackled.
The data is centrally located and the design status is automatically updated
due to which the teams have an access to the required information to build the
parts/components and PLM also ensures the team is working on the right version
of the design. PLM thus facilitates better co-ordination amongst and between
the teams and aids effective concurrent engineering.
Data
Security: PLM helps secure the data with proper
back-up facilities and prevents data loss in case of hardware failure or any
contingency that may arise. The companies can breathe a sigh of relief as their
critical data is not lost.
Waste
Management: as PLM aims at configuring efficient
management systems through integration and optimization of workflows,
processes, and data, it results in generation of minimum waste in terms of
time, money, efforts and materials.
Adhering to
the codes and standards: PLM technology enables
companies to meet and adhere to the various international standards and
environmental compliances such as RoHS (Restriction of Hazardous
Substance Directive). It also helps
companies attain Six Sigma compliance standards through reducing waste and
optimizing the use of men, money and materials.
Data Management: the centralization of all the Product data facilitates
the companies to easily share and retrieve the required data. The companies can
easily share the data with contract manufacturers who assist them in building
the product and machinery.
Conclusion:
PLM is rightly known as a People Centric
Technology as it addresses the whole eco-system of Business Administration and
Product Design and Development Management of the company.
PLM software is scalable, and could also be
highly customized to integrate the distinct processes and workflows of the
companies to address the specific needs as per their requirement.
PLM hence could serve as the very backbone of
the company and helps companies attain all their Product, Processes, and
Management objectives in the most effective, Economical, and Efficient manner.
The Smart and performance driven companies
should establish and incorporate the system that empowers the company to
improvise, inspire and innovate to create exemplary products through proficient
processes at lucrative costs in surprisingly low time span.
Innovation does not singularly depend on what
you do, but also largely is inspired by ‘how you do”. Unique approaches and
processes further fuel up innovation that results in developing an ‘Never
before made product’.
Distinct thinking
leads to creating distinguished products. And a well managed company ultimately
ends up being a well recognized company.
