What is PLM?

Product lifecycle management (PLM) is a system that manages and controls all data and processes related to the product life cycle, from the design concept stage, production to recycling and end of life. The goal of PLM is to create a common platform that allows departments within the company, from production, sales to after-sales service, to share and access information about all stages of the product life cycle (including design, production, storage, transportation, consumption, after-sales service and recycling).

In addition, the PLM system has the ability to automate product data management and integrate with business management software such as ERP (Enterprise Resource Planning) and MES (Manufacturing Execution System). As a result, PLM has become a comprehensive solution, widely applied in many industries, from electronics, food and beverage, cosmetics and personal care to medical devices, aerospace and defense.

Product Lifecycle Management at the Heart of PLM

Product lifecycle management (PLM) focuses on optimizing the entire product lifecycle across four key stages. Here’s how PLM supports each stage:

1. Conceptualization and Planning

The product lifecycle begins with the generation of ideas and the development of plans for new products. During this stage, PLM helps businesses conduct market research and planning to create products that have the potential to meet consumer needs.

2. Product Design

After defining the idea, businesses move to the design stage, which includes creating models, prototypes, and testing the product. PLM provides a centralized hub for product data and information, allowing businesses to easily track and adjust the design process, ensuring processes are accurate and efficient.

3. Product Manufacturing

Once the design is complete, the product enters the manufacturing phase. PLM helps manage important data such as raw material supply, manufacturing costs, capacity quotas and lead times, helping businesses control the manufacturing process and ensure high-quality products before moving to the next phase.

4. Product Distribution, Maintenance and Recycling

This is the final stage of the product life cycle, including distribution, customer service support and recycling. Before starting a new life cycle for the next product, PLM collects product performance data, helping businesses understand how to improve and develop the product in the future.

The Function of PLM in Product Lifecycle Management

PLM plays a key role in the factory's production process, helping to optimize the process with the following three main functions:

1. Product Data Management

PLM centralizes all product information into a virtual space, helping to manage information in detail, including:

• Product specifications and functions, production plans, reports, bills of materials (BOM), quality documents, product catalogs, and customer support.

• Manage product versions to track each change and ensure traceability of revision history.

• Set up personalized access rights, helping each employee access the right information and data needed.

2. Product Process Management

PLM supports product process management from the engineering revision stage to document control and validation, specifically:

• Monitor and measure project progress by assigning tasks to each team member.

• Empower employees by providing visibility into all information and related tasks, making it easy for them to grasp what needs to be done.

• Enable employees to share information and views on process stages and project-related elements.

3. Software System Integration

PLM integrates with existing systems and software in the enterprise, making it easier to import and export data. Systems that can be integrated include:

• CAD design software, product data management (PDM), enterprise resource planning (ERP), government accountability office (GPAO), and computerized maintenance management system (CMMS).

• This integration function helps businesses consolidate data and synchronize information, improving the ability to manage and control the entire product manufacturing process.

PLM integrated with enterprise management systems

Integrating PLM product lifecycle management systems with enterprise management software brings comprehensive efficiency in production management. This helps businesses optimize processes from planning, production, control, sales to service. Below are the recommended systems to integrate with PLM:

Enterprise resource planning (ERP) systems: Integrating PLM with ERP helps ensure that the production process always receives the latest designs, avoids errors due to using old versions, and minimizes the risk of product recalls.

Engineering design solutions: Integration with design tools such as mechanical CAD (MCAD) and electronic design automation (EDA) software helps synchronize components, ensuring that everything works together as expected, thereby speeding up product development.

Customer Relationship Management (CRM) System: Integrating with CRM allows product development teams to easily access customer feedback and important data, supporting improvements in product quality and customer satisfaction.

Other systems and software: Businesses can also integrate PLM with other systems depending on each stage of the production process to optimize efficiency.

All data and processes are recorded in a central database, allowing departments to access and work on a common platform, ensuring the production process operates efficiently and transparently in real time.

Why do businesses need a PLM system?

In the era of innovation and globalization, market requirements for products are increasingly stringent. Businesses need to cooperate effectively with partners in the supply chain to improve productivity and reduce costs. PLM software addresses the key challenges most manufacturers face, including:

• Implementing advanced technologies such as the Internet of Things-IoT, AI, and robotics.

• Collaborating with distributed teams, suppliers, and contract manufacturers.

• Complying with safety, environmental, and export regulations.

• Ensuring quality and reducing product costs.

• Competing with innovative and cutting-edge products.

Choosing the right PLM software helps businesses support the end-to-end process, including stages from concept, design, manufacturing, to product maintenance and recycling. For PLM to work most effectively, the system needs to seamlessly connect stages in the supply chain to maintain the flow of information and tightly control the manufacturing process.

Benefits of PLM in Product Lifecycle Management

Applying a product lifecycle management (PLM) system brings many practical benefits to manufacturing businesses, including:

• Optimize product lifecycle, maximize resource utilization.

• Improve product quality and minimize costs.

• Shorten new product launch time.

• Enhance quality control at each stage of production.

• Protect the intellectual property of the enterprise.

• Save time in market research.

• Improve customer service through better support processes.

• Analyze historical data to propose future improvement solutions.

• Reduce production costs through integrated engineering workflows.

Differences between ERP and PLM

PLM is often confused or equated with ERP, but essentially, these two systems have different roles:

• ERP (Enterprise Resource Planning): ERP focuses on standardizing product data, supporting order fulfillment, and optimizing supply chains, logistics, and data maintenance.

• PLM (Product Lifecycle Management): PLM supports from idea generation, development, production to marketing and recycling of products. PLM is more flexible, creating space for creativity to develop new products, and is not just a software but a combination of processes and specialized tools.

Therefore, ERP and PLM are two complementary platforms, helping to complete the overall management system of the enterprise.

Comparing PDM and PLM

PDM (Product Data Management) and PLM (Product Lifecycle Management) are two important systems in data management and product lifecycle, but they have different scopes and purposes. Here is a detailed comparison:

PLM is a solution to optimize product lifecycle management, helping to effectively connect manufacturers, suppliers and customers. Understanding the role of PLM will help businesses improve modern and standardized production processes. However, implementing PLM requires a specific plan, choosing a reputable supplier for long-term companionship and ensuring success in the digital transformation process.

• What is inventory turnover?

• uality control process IQC – PQC – OQC