What does the abbreviation ‘PLM’ stand for?
What unites the automotive industry, management and sustainable development? PLM! In other words, a strategic approach known as product lifecycle management. At MakoLab, we understand it literally, as the management of a process that begins with an order for a particular product and its subsequent production, moving on first to the sale and delivery stage and then to monitoring the product in use. It also encompasses remarketing, streamlining the process of readying a vehicle for resale and giving it a new lease of life.
The term explained
Product lifecycle management, or PLM, integrates people, processes, data and technologies. It is designed to manage the information and processes connected with a product from the concept phase, via its design and production, to its use and disposal. PLM makes it possible to optimise team collaboration, reduce costs and shorten time to market, while improving quality and taking innovation to new levels.
The evolution of PLM
PLM evolved as a result of the dynamic changes that have occurred in industry and technology since the introduction of CAD software in the nineteen eighties. To begin with, CAD revolutionised design processes by eliminating the need for drafting tables. At the same time, though, it brought new challenges in terms of managing, distributing and reusing CAD files. To deal with these problems, product data management (PDM) was developed. In the nineteen nineties, the initial focus was on managing CAD files and other documents. It then turned to the management of product structure, or bills of materials (BOM) and engineering change processes.
Over the years, faced with globalisation, outsourcing and the pressure to achieve fast times to market, the imperative need to expand the use of PDM became obvious. The nineteen nineties saw the emergence of early PLM solutions, which integrated additional functions for quality, production, regulatory compliance and costing. With time, particularly post-2000, PLM evolved, with capabilities for managing innovations and requirements being added, along with improved connections with production processes and supply chains. Companies began to recognise the need to integrate state-of-the-art technologies like the cloud, the Internet of things (IoT) and Industry 4.0 initiatives. This, in turn, led to the transformation of PLM into product innovation platforms that support digital transformation and cutting-edge approaches to design and production.
The chart below shows the evolution process as PLM shifted from simple product data management to comprehensive support for innovation in design processes as market expectations grow.
The impact of digitalisation on PLM and strategies for its implementation
The digitalisation of business processes has had an enormous impact on the development of PLM. As technology continues to advance and data are collected from a range of sources, PLM has become a crucial tool for enabling organisations to leverage all this information to optimise their processes. Using cloud technologies, advanced analytics and artificial intelligence means that companies are better able to forecast trends. This contributes to more sustainable product development and heightened operational efficiency.
Preparing a company’s systems
To start with, it’s worth looking at a company from the technological viewpoint and answering the question as to whether turning to PLM is doable in terms of software, hardware and the possibility of visualising data for the purposes of not only strategic design, service and production processes, but also of distributing the data.
This initial ‘tech check’ should also include looking into the management and access levels required in the system. Companies that focus on retaining product data throughout the development lifecycle have the capability of saving time and maximising the value of the information held in these strategic systems.
Digital twins
In the context of PLM, a digital twin is an advanced tool for facilitating the accurate virtual mapping of physical products and their processes. Using technologies such as the IoT and real-time data analysis, a digital twin monitors every stage of a product’s lifecycle, from the conceptual and design stage, via production, to use and maintenance. In the automotive industry, for instance, digital twins of components like engines can collect data on the components’ performance, enabling engineers to identify problems immediately and develop improvements. Integrating a digital twin with PLM systems makes it possible to run simulations, providing excellent support for decision-making processes, predicting breakdowns and planning maintenance. This, in turn, leads to increased production efficiency and cost minimisation. It is an approach that means businesses can not only optimise their existing processes, but also develop innovative product creation and management solutions.
Digital thread and PLM. Is integrating them possible?
Digital thread is a concept that refers to the integration of data and information about a product throughout its lifecycle, creating a continuous, coherent and cohesive flow of information between the various stages and teams involved. This is particularly crucial in the context of modern practices connected with PLM.
How does digital thread relate to PLM? Like this:
1. Data integration. Digital thread connects all kinds of data sources, facilitating the smooth access to information from the concept classification stage of a product, via its design and production, to post-sales services. When an organisation deploys PLM, it is better able to manage that flow of information.
2. Increased transparency. Digital thread means that every interested party has access to up-to-date information about the product. This boosts transparency and simplifies the decision-making process in real time.
3. Change management. Digital thread supports change management within a project by enabling teams to track and document every modification and its impact on the product at the various stages of the life cycle.
4. Enhanced effectiveness. The integration of digital thread and PLM heightens operational efficacy, making it possible to identify problems in real time and resolve them more easily. This can lead to faster product development and time to market.
5. Innovation and development. Having a full overview of the data at every stage means that teams can better identify innovation opportunities and introduce new ideas more quickly and effectively.
To summarise, digital thread and PLM are closely linked and integrating them can significantly improve product design, production and lifecycle management processes. This enables companies to adapt better to changing market demands and boost their competitiveness.
Product lifecycle management challenges today
A multitude of challenges lie in wait for PLM in the modern world. They include growing competition, swelling demands for product personalisation and the need to adapt to changing legislation and regulations. These conditions necessitate a PLM structure which is both flexible and versatile. It should be possible to integrate PLM systems with other tools, such as enterprise resource planning (ERP) and customer relationship management (CRM) systems, making it possible to optimise the entire process from concept to production and sales.
The role of PLM in sustainable development
Sustainable development is steadily growing in significance in the context of design and production. PLM plays a critical role in the implementation of sustainable development practices by enabling companies to improve their monitoring of product lifecycles, reduce waste and use resources more effectively. Data analysis allows organisations to make decisions that are more environmentally friendly, which not only affects their reputations, but also meets the requirements of ecologically aware consumers.
Why is it worth investing in PLM?
Implementing PLM brings organisations a range of important benefits that translate into product management effectiveness and innovation. With centralised data and improved collaboration between teams, companies are able to respond more rapidly to the changing needs of the market. PLM also provides better change and documentation management, minimising the risk of product-related errors and costs. In addition, PLM analytics facilitate the identification of market trends and client/customer preferences, supporting the development of new products. Furthermore, in the context of growing regulatory requirements, PLM systems help to ensure that products comply with quality and legal stipulations.
What are the main benefits of implementing PLM?
1. Improved collaboration between engineering, production and marketing teams.
2. Reduced time to market, which increases a company’s competitiveness.
3. Heightened product quality, resulting from better change and version management.
4. Effective cost management, thanks to process and planning optimisation.
5. Support for innovation, which arises from the possibility of analysing market and client/customer preferences.
6. Management of compliance with the law, a vital aspect in regulated sectors.
7. Enhanced product lifecycle management, which facilitates optimisation of operations at every stage.
Conclusions
Implementing PLM properly can bring a company a host of benefits, ranging from heightened effectiveness during project processes to better data management and regulatory compliance. Integration with the digital thread concept further strengthens the position of PLM as a crucial instrument in the state-of-the-art management toolbox. As technology evolves and competition on the market steadily grows, investing in PLM is fast becoming a necessity for any organisation serious about maintaining its competitiveness and adapting to its clients’ or customers’ changing requirements.
Translated from the Polish by Caryl Swift
Bibliography
Grieves, M. (2010). Product Lifecycle Management (PLM): Driving the Next Generation of Lean Thinking. CRC Press.
Nienaber, R. & Nienaber, H. (2018). Product Lifecycle Management: A Guide to New Product Development. Wiley.
https://www.oracle.com/a/ocom/docs/cimdata-ebook-oracle-digitally-connected-plm-12jun2019.pdf
https://kiwi.oden.utexas.edu/papers/Engineering-design-digital-thread-Singh-Willcox.pdf
https://www.ibm.com/think/topics/what-is-a-digital-twin
https://beyondplm.com/2024/03/31/digital-transformation-in-plm-why-and-how/
https://www.ptc.com/en/blogs/plm/what-is-plm-four-strategies-for-digital-transformation
Katarzyna Warmuz
Content Marketing Specialist
