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PRODUCT LIFE CYCLE MANAGEMENT [PLM] SUB CODE: 10ME769

UNIT 1: INTRODUCTION TO PLM

Introduction:
Life cycle processes in todays networked world, means bringing new products to market with less expenditure of time and effort. PLM Product Life cycle Management and Product Data Management [PDM] are the useful tools for

controlling product-related information as well as the lifecycle of a product. The two acronyms PDM and PLM are closely associated; the main difference is one of scope and purpose. Whereas PDM is mainly a set of tools and methods aimed at efficiently managing product data, PLM is a holistic approach that uses a wide range of different concepts, technologies, and tools, which extend to groups beyond the functions of a company or even a supply network in order to manage and control the lifecycle of a product. Product life cycle considers the profitability of the product of during its life cycle, where traditionally products are evaluated on yearly basis which will help in decision making. Product life cycle recognizes the behavior of the products at various stages of its life cycle. Each product has it own life cycles. Ex, binoculars have very long product life cycle while Toys have very short product life cycle. Definition of PLM: In industry, Product Lifecycle Management (PLM) is defined as

the

process of managing the entire

lifecycle of a product from its conception, through design and manufacture, to service and disposal. PLM integrates people, data, processes and business systems and provides a product information backbone for companies and their extended enterprise. Product Lifecycle Management makes it possible to command the whole lifespan of a product and the information connected with it. Efficient product lifecycle management enables companies to compete successfully in international and global markets. Also PLM manages the activities of a companys product all the way across its life cycle in most effective way and it enables the company to take control of their product. PLM offers transparency about what is happening over the product life cycle and offers many ways to solve the problem in the company. Thus PLM is one of the pillars among
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1. Customer Relationship Management [CRM] 2. Supply Chain Management[SCM] 3. Enterprise Resource Management[ERP] 4. System Development Life Cycle [SDLC]

The Modern PLM system capabilities include workflow, program management, and project control features that standardize, automate, and speed up operations. Web based systems enable companies easily to connect their globally dispersed facilities with each other and with outside organizations such as suppliers, partners, and even customers. PLM is a collaborative backbone allowing people throughout extended enterprises to work together more effectively. Therefore the core of product lifecycle management is the creation, preservation and storage of information relating to the companys products and activities, in order to ensure the fast, easy and trouble-free finding, refining, distribution and reutilization of the data required for daily operations

Product Life Cycle Model/ PLM Life Cycle Model

Product life cycle can be defined as "the change in sales volume of a specific product offered by an organization, over the expected life of the product."

Fig: Product Life Cycle graph for a Product The product life cycle describes the sales pattern of a product over time. Generally, the time span begins with product introduction and ends with its obsolescence and replacement. While the form of the life cycle is fairly
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standard, it is subject to variations. The concept underlying the premise of product life cycle is that all products pass through the stages outlined below Basic Stages in the Product Life Cycle The four major stages of the product life cycle are as follows:1) Development/ Introduction Stage
2) 3) 4)

Growth stage Maturity stage Decline stage

Introduction-Stage At this stage the product is new to the market and few potential customers are aware with the existence of product. The price is generally high. The sales of the product are low or may be restricted to early adopters. Profits are often low or losses are being made, this is because of the high advertising cost and repayment of developmental cost. At the introductory stage:

The product is unknown, The price is generally high, The placement is selective, and The promotion is informative and personalized.

Growth-Stage At this stage the product is becoming more widely known and acceptable in the market. Marketing is done to strengthen brand and develop an image for the product. Prices may start to fall as competitors enter the market. With the increase in sales, profit may start to be earned, but advertising cost remains high. At the growth stage:

The product is more widely known and consumed, The sales volume increases, The price begin to decline with the entry of new players, The placement becomes more widely spread, and The promotion is focused on brand development and product image formation.
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Maturity-Stage At this stage the product is competing with alternatives. Sales and profits are at their peak. With the increases in competition the price reaches to its lowest point. Advertising is done to reinforce the product image in the consumer's minds to increase repeat purchases. At maturity stage: The product is competing with alternatives, The sales are at their peak,

The prices reaches to its lowest point, The placement is intense, and The promotion is focused on repeat purchasing.

Decline-Stage At this stage product popularity is decreasing, People starts moving towards new introduced products as a result sales start to fall fast and product range is reduced. The product faces reduced competition as many players have left the market and it is expected that new competitor will enter the market. At decline stage:

The product faces reduced competition, The sales volume reduces, The price is likely to fall, The placement is selective, and The promotion is focused on reminding.

To calculate or measure at what stage of its life cycle a product is at in the given market, the following parameters needs to be measured and monitored:
a) b) c) d) e) f)

Investment in R&D by year Number of competitors in the market by year Number of competitors that entered the market by year Number of competitors that left the market by year Market growth rate by year Investment in marketing (such as advertising, trade shows, and direct sales forces) by year

Features of PLM
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Typical features of PLM systems include: a) Item management one of the basic functions of a PLM system is the management of items. The system controls the information on the item and the status of the item as well as processes related to the creation and maintenance of items. b) Product structure management and maintenance the PLM system identifies individual information and its connections to other pieces of information with the help of the product structure, which consists of items hierarchically connected together.

c) User privilege management the PLM system is used to define information access and maintenance rights. The PLM system defines the people who can create new information or make, check and accept changes, and those who are allowed only to view the information or documents in the system. d) Maintenance of the state or status of documents and items the system maintains information about the state and version (e.g. sketch, draft, accepted, distributed, obsolete)of each document and item, and about changes made to them: what, when, and by whom. e) Information retrieval one of the main tasks of a PLM system is information retrieval. PLM systems intensify and facilitate the retrieval of information so that: It is possible to utilize existing information better than before when creating new information. All the existing information on a given subject, such as a particular product, can be easily accessed: documents, components, perhaps a design solution of proven quality. It is easy to find out how a given piece of information is related to other information, for example to find out where else a given design solution, part or component is used. (This is very important for change management when implementing changes in this piece of information) f) Change management is a tool with which the latest valid information about changes, such as version changes to a product or component, are recorded in documents or items, which are then made available in the right place and at the right time. g) Configuration management varying the physical properties of similar products and switching interchangeable assemblages or components. Configuration management allows products to be customized according to customer wishes. h) The management of tasks (messages), also known as workflow management, is one of the basic properties of a PLM system. The communication and division of tasks is carried out through graphical illustration of the chain of tasks and by e-mail or a task list. The management of tasks makes possible the radical intensification of communication in the organization, especially in a decentralized even worldwide environment. i) File/document management involves index information on files contained in the system. In other words, it is a question of metadata information about what information is located where.
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j) Information loss during updating is avoided. The PLM system controls the copying of files and ensures that the master copy is preserved until the files have been successfully updated. k) Backup management the system automatically logs backup copies. l) History / System log a database of events which ensures that that all measures such as updating documents or changing component items made within the sphere of PLM management can be tracked, if necessary (Product process traceability).

Opportunities and benefits of PLM: Different ways to show where PLM can help a company to improve effectiveness, efficiency and control throughout the entire product lifecycle, enabling it, for example, to
1. . captures customer requirements better

2. Reduced time to market. 3. Improved Process stability. 4. Improved product quality and reliability.
5. Reduced prototyping costs.

6. More accurate and timely request for quote generation. 7. Ability to quickly identify potential sales opportunities and revenue contributions. 8. Savings through the re-use of original data.
9. A framework for product optimization.

10. Reduced waste. 11. Maximize supply chain collaboration. 12. Ability to provide contract manufacturers with access to a centralized product record. 13. Seasonal fluctuation management.
14. develop products in an international collaborative development environment AKASH.D.A Asst.Professor Vidyavardhaka College of Engineering Mysore

7 15. provides manufacture in-house, or outsource manufacture to low-cost suppliers 16. Delivers the required product at the required time in the required place 17. Provide maintenance information on line, with up-to-date documentation and service bulletins 18. Provide better product maintenance and service until the product is eventually recycled and disposed of in an environmentally-sensitive manner.

Based on increasing revenues: Another way to understand the benefits of PLM is to focus on the revenue increases it can provide. Examples include: Increase the number of customers by developing and supporting new products

Increase the product price paid by customers. Increasing product quality enables justifiable price increases. New functions and features can justify higher prices. Being first to market enables pricing premiums. Increase the range of products that customers can buy, e.g. by improving product structure management, PLM enables more customer-specific variants. It enables companies to expand the size of their product portfolios. It enables breakthrough products that can create new markets . increase the number of products of a particular type that a customer buys, e.g. by increasing product quality, PLM allows customers to dispense with second sourcing increase the percentage of customers re-ordering, e.g. by increasing product and service quality . increase the frequency with which customers buy, e.g. by getting products to market faster and more frequently . increase the service price paid by customers, e.g. by using PLM to improve the quality of existing services . increase the range of services that customers buy, e.g. by using PLM to develop and support additional services . get customers to pay sooner, e.g. by developing and delivering products faster . increase sales by introducing innovative new products

Based on Cutting costs Another way of understanding the benefits of PLM is to focus on the ways it helps cut costs. Examples include: Reduce direct labor costs across the lifecycle, for example in engineering, manufacturing and the workers waste a lot of time on data retrieval and management activities. PDM systems, which are system components of PLM, can do this work for them, leaving them more time for Value-adding activities. As a result, fewer specialists will be needed.
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Reduce overhead labor costs (administrators, supervisors, clerks, managers, checkers, information managers, data entry clerks, inspectors, documenters, BOM conversion staff, manufacturing clerks, etc.). In an effective, joined-up PLM environment, a lot of the paper-shuffling, data re-entry, data formatting, and administrative work that is currently carried out by many people across the lifecycle will be eliminated. As a result, fewer people will be needed for these tasks. Reduce material and energy consumption costs by use of optimized design, better decisions, more reuse, and better purchasing. In the PLM environment, people will have better information, allowing them to take better decisions that will lead to reduced manufacturing costs. Digitally simulating production facilities and production processes for all the possible configurations of a new product will reduce costs Reduce the cost of purchased designs and parts. The PLM system will provide more accurate and more detailed information, allowing people to negotiate better prices for purchased products and services. reduce the cost of quality (reduce scrap and rework, penalty costs, warranty costs, recall parts, erroneous order and manufacture of parts, obsolete parts, product liability costs). The PLM system will reduce the number of errors made along the marketing/engineering/manufacturing/delivery/service chain.
Reduce costs of storing information (e.g. reduced paper cost). Information will be stored on low-cost, compact media rather than on paper. Reduce costs of communicating information. Information will be transferred quickly and cheaply by electronic means rather than by the slow and expensive transport of paper documents. Reduce costs of product development projects by making their progress clearer Reduce costs by providing a common IS framework to track the performance of activities in each phase of a products lifecycle Reduce costs of customer acquisition Reduce costs of product support, repairs and upgrades Reduce the cost of service visits through knowledge of the exact configuration of the product.

Areas of PLM
Within PLM there are five primary areas; 1. Systems Engineering (SE) 2. Product and Portfolio Management (PPM) 3. Product Design (CAx) 4. Manufacturing Process Management (MPM) 5. Product Data Management (PDM)
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Systems Engineering is focused on meeting all requirements, primary meeting customer needs, and coordinating the systems design process by involving all relevant disciplines. Product and Portfolio Management is focused on managing resource allocation, tracking progress vs. plan for new product development projects that are in process (or in a holding status). Portfolio management is a tool that assists management in tracking progress on new products and making trade-off decisions when allocating scarce resources. Product Design is the process of creating a new product to be sold by a business to its customers.
Manufacturing Process Management is a collection of technologies and methods used to define

how products are to be manufactured. Product Data Management is focused on capturing and maintaining information on products and/or services through their development and useful life.

Need for PLM

There are so many reasons why PLM is needed, that it is difficult to know which are the most important. And as the reasons will be different for companies operating in different industries and in different countries, its probably impossible to prioritize them. So heres a list of very briefly described reasons, in no particular order: 1) Outsourcing has led to long design and supply chains with the result that product development, manufacturing and support activities are spread out over different organizations, often over different continents. Managing them when they were in one company in one location was difficult enough, managing them across an extended enterprise is many times more difficult. 2) The functionality of products goes on increasing, complicating their development and support. 3) .Deregulation has led to the break-up of large organizations with well-defined 4) Responsibilities and their replacement by numerous companies, contractors and subcontractors with unclear relationships. 5) Competitive pressures result in less time being available for product development. 6) .Many companies now offer complete solutions, rather than individual products.
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7) This adds a new layer of challenges. Solutions are more complex to develop and support than single products. 8) Many more services are offered along with a product. Sometimes, it seems as if the services are more important than the product. Developing and supporting these services may require additional skills. 9) Consumers want customized products which are much more difficult to develop and support than standard products. 10) Consumers want more services not easy for organizations that only used to sell products. 11) Population trends, such as ageing in Western countries, lead to the need for new types of products. 12) Globalization has led to the availability of hundreds of millions of workers in Asia with wages far below US levels. New approaches are needed to manage their efforts. 13) Increased environmental awareness leads to calls for reduced pollution from manufacturing and logistics. 14) The rapid emergence of new technologies provides many opportunities but also the difficulties of industrializing them and ensuring their safe use. 15) Sustainable development is needed to ensure resources are available for future generations which mean companies have to take good care of existing resources. 16) Regulations, such as Directive 2002/96/EC of the European Parliament, which has, as a first priority, the prevention of waste electrical and electronic equipment (WEEE), can lead to major changes in business rules and models. 17) A Stock Exchange mentality, with managers more interested in quarterly results than in the long-term well-being of their products and services. 18) Changes in management responsibilities resulting from the Sarbanes-Oxley Act. 19) The lifetime of some products is now so short, that the development of a future generation has to start before the development of the previous generation has been finished.

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20) Geopolitical developments such as the appearance of China as a major exporter of manufactured goods, India as a leading producer of software and software developers, and Russia as a leading producer of oil and gas lead to many changes.

Phases of PLM
Phase 1: Conceive Imagine, Specify, Plan, Innovate The first stage in idea is the definition of its requirements based on customer, company, market and regulatory bodies viewpoints. From this a specification of the products major technical parameters can be defined. Parallel to the requirements specification the initial concept design work is carried out defining the visual aesthetics of the product together with its main functional aspects. For the Industrial Design, Styling, work many different media are used from pencil and paper, clay models to 3D CAID Computer-aided industrial design software. Phase 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 Computer-aided design. 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
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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 systems. Phase 3: Realize Manufacture, Make, Build, Procure, Produce, Sell and Deliver Once the design of the products components is complete the method of manufacturing is defined. This includes CAD tasks such as tool design; creation of CNC Machining instructions for the products 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 will be taking place. This could include transferring engineering data (geometry and part list data) to a web based sales configuration and other Desktop Publishing systems. Phase 4: 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 such tools as Maintenance, Repair and Operations Management (MRO) software Components of PLM Some of the components of PLM are: a) Product data & Product b) Customers c) Product life cycle activities d)Organizational Structure e) Human resource in product life cycle f) methods, techniques and methodologies g) Processes f) components in life cycle
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13 a) Product data & Product: Product data is one of the components of PLM, but the product is the main focus of

PLM.without product the company doesnt exist and wont have any customers. b) Customers

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