International Conference on Technology and Business Management

March 26-28. 2012

Data Management among PLM-ERP Application [An Integrated PLM ERP Technique]
Lalsingh D. N. Raut Bodake.lalsingh@mahindra.com dnraut@vjti.org.in Veermata Jijabai Technological Institute (VJTI), Mumbai
Product Lifecycle Management & Enterprise Resource Planning are both required in order to adequately fulfill the IT needs of most modern design, development & manufacturing enterprises. This integration significantly improves productivity, effectiveness of users & organizations working with product & plant. This software provides the collaborative link with ERP extending Teamcenters PLM from design through production. This maintains single source of product, process data throughout entire lifecycle eliminating errors and accelerating time to customer vale. It provides the seamless integration of world class technology allowing a best practices approach for establishing benchmark for high quality products in record time.

1. Introduction
The purpose of this paper is to discuss the business motivations for integrating PLM and ERP. The main fundamental objectives of the PLM and ERP are as follows: Concept of PLM PLM system mainly handles information about the properties, form and functions of the product. Examples are design, calculations and specification. The definition of the product is controlled from idea/requirement to concept/prototype to a fully designed product. The system also controls how changes are to be made to the product. In other words, a PLM system handles information on what a product is and how the product has become. Concept of ERP ERP shows the cost of the product and how it is produced. It mainly handles financial and logistics-related information as well as information about the physical product. Examples of the former are production expenses, purchasing expenses, prices and margins. Examples of the latter are stock and logistics. Processing or the physical product is controlled from receiving the raw materials/components, via production/manufacturing to delivery to the customer. In other words, the ERP system handles information on values and costs for manufacturing of the product. Teamcenter Gateway for SAP Teamcenter Gateway for SAP breaks down the walls between PLM and ERP by allowing you to interact with common PLM information regardless of which environment you work in. The bi-directional Interface allows transferring product and planning data between SAP business suite and Teamcenter for both engineering and manufacturing data, allowing organization to make better decision with less risk. Tight integration ensures that both engineering development and production processes such as planning, budgeting and forecasting can be worked on collaboratively with most accurate, up-to-date information available.

2. Problem Definition
As PLM has delivered more complete solutions for design and engineering users within an enterprise, the management ownership of product related information is changing. For example, ownership of product structure and bill of materials (BOMs) is shifting from engineering to manufacturing. However, BOM information must still be supported and accessible from within ERP applications. Both of the systems manage product information. Accordingly, it is important that they interact well with each other. This interaction applies primarily to articles and product structure. The product structure is usually created by the design department to identify the components of the product. This information is then used for production planning and logistics in ERP. Many companies have to manually enter the product structure two or three times in different systems due to a lack of cooperating solutions. This represents an unnecessary use of time and a potential source of error that should be eliminated. 407

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This increases the importance of integrating PLM and ERP to ensure consistency of BOM, product change, and other related information used throughout the enterprise.

3. Methodology of PLM-ERP Process

Understanding the System There are several factors to consider when integrating PLM and ERP. These factors cover many different areas including corporate cultures and organizational structures, business practices, and technology. A key decision is defining the level of integration needed for the company. Integration between PLM and ERP can vary in complexity from a simple one-way transfer of BOM information from engineering to manufacturing, to an immersive bi-directional environment in which users access information in both domains from within the user interface of their primary applications. The product structure is conceived in the development phase and is subsequently transferred to other systems. This can take place automatically via the PLM system which automatically transfers the structures. To do this, an agreement must be reached on the rules for how the structure is to be built up in the PLM system so that it can be used directly in the ERP system for planning and logistics. For details refer the Fig 1 which shows how the design data flows from PLM to ERP system by integrating them.

Figure 1 Flow of Data from Teamcenter to SAP

PLM and ERP integration enables the effective synchronization between the engineering bill of materials (EBOM) and the manufacturing bill of materials (M-BOM) and can significantly streamline the engineering change order process. The PLM and ERP integration supports the creation of both a new manufacturing BOM, from the PLM engineering BOM, and also an incremental update, given a set of changes on the PLM side. The integrations are usually based on the BOM Compare function, only the changes to a BOM are sent to the ERP system for implementation. The goal is that the MBOM is modified to meet the requirements of the E-BOM. Fig. 2 shows the details of the PLM and the ERP BOM from which we can know what exact difference between the E-BOM and the M-BOM.

Figure 2 Details of PLM and ERP BOM

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To perform all above activities after integreating the ERP and PLM we needs a source so that data can flow within these systems smoothly and accuratly in lesser time. Practically to achive these requirements after integreating the PLM and ERP we used Teamcenter Gate Way For Sap as a third party software to integrate the Teamcenter and SAP. We decided to use the Teamcenter Gate Way For Sap because of following key engineering and manufacturing use cases: Part and Assembly Handling: Create and update product data in SAP applications. Document Handling: Fill in drawing title block with SAP material ID, status and other information. Change Management: Create or update engineering change notices (ECNs) in SAP applications to update product information in SAP applications. Classification: Create or change classification information for materials, process plans, documents and change masters stored in SAP. Status Synchronization: Propagate status changes between Teamcenter and SAP software. Preserve Relations: Create object links in SAP applications based on existing relations in. Part and Assembly Process Planning: Create full process plans in Teamcenter and send them to SAP ERP for manufacturing execution and cost / quality rollup. Production Resource Tools: Synchronize information about work areas and other manufacturing equipment between Teamcenter and SAP ERP. The practical use of the Teamcenter gateway for SAP is as shown.

4. Practical Use of Teamcenter Gateway for SAP

Lets see the procedure of how a SAP BOM can be updated directly from a Teamcenter GUI itself if a part is replaced from a BOM of Teamcenter. Go to Teamcenter GUI select any BOM line and select the item which you want to replace. (Refer. Fig 3)

Figure 3

Now, Go to Edit-Replace (Refer. Fig 4).

Figure 4

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In replace dialog box Item id 9524 is replaced by Item id 9784. (Refer. Fig 5)

Figure 5

Then click on confermation button and on confermation dialog box click OK. (Refer. Fig 6)

Figure 6

Now, Go to (Refer. Fig 7), T4S Gateway-Bill of material-BOM Change Direct. This replaces the old item of SAP BOM by new one directly.

Figure 7

Fig 8 shows the how the old item id 9524 of a SAP BOM is replaced by 9784 directly. (Refer. Fig 8)

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March 26-28. 2012

Figure 8

From above description it is clear that by using Teamcenter Gateway for SAP we replace/change the old item of SAP BOM from the Teamcenter GUI itself directly.

5. Benefits due to integrating PLM and ERP

Reduction in the time, cost and errors associated with re-keying data entry from one system to the other. Reduction in BOM error cost as BOMs are created once and then managed consistently in both PLM and ERP. Reduction in inventory costs as the result of designers and engineers knowing what parts are already on hand and incorporating them into new versions or products improving part reuse. Interface to SAP system from within Teamcenter to exchange information interactively. Information exchange is bi-directional to keep systems in sync by exchanging information wherever there are changes in either of the systems. Teamcenter Gateway or SAP ensures consistent data across functional divisions, avoiding timeconsuming, ensuring excellent quality right from the start.

6. Conclusions
PLM and ERP are addressing different needs but their integration is mandatory if processes are to be streamlined. The Teamcenter Gateway for SAP makes sure that data is available at the right time, wherever it is needed across the PLM and ERP landscape. Having a bi-directional flow of information between PLM and ERP enables every user to understand all aspects of a products design and manufacture earlier in its lifecycle and to provide input to ensure the final product meets or exceeds customer expectations. Automating and managing the processes used to design and manufacture a product across both PLM and ERP ensures that users know what they need to do, when they need to do it, and are provided the correct, up-to-date information needed to perform their tasks.

7. Acknowledgement
This paper is outcome of the inspiration through Mr. Ashok Rathore (Sr. Manager) Mahindra Vehicle Manufacturers Ltd. who inspired me to go for practical problem solution in industry and Mr. Suhas Kore 411

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(deputy manager) Mahindra Vehicle Manufacturers Ltd. has given me all motive support for completion of the paper. Last but not the least; I want to give my sincere thanks to my academic guide Mr. D. N. Raut (H.O.D., Production Dept., VJTI, Mumbai) for their valuable guidance and support. I give my sincere regards towards all the dignitaries.

8. References
1. 2. White Paper The Complementary Roles of ERP and PLM http://techclarity.com/documents/Complementary_Roles_of_ERP_and_PLM.pdf. Arena Solutions whitepaper Next Generation Bill of Materials Management http://www.arenasolutions.com/resources/whitepapers/dl/bill-of-materials.html. www.arenasolutions.com. Teamcenter Gateway for SAP, Fact Sheet [http://www.plm.automation.siemens.com]. Teamcenter Gateway for SAP (T4S), T4S Downloads (T4S, T4S Product Overview, Demo Video, T4s Links etc.)[http://plmware.tesis.de/index.php?page=1043]. Teamcenter Interoperability with SAP, Stefano Mongio, [http://www.plm.automation.siemens.com//PLM20%20Wave%2008_tcm1023-88027.pdf]. PLM and ERP Integration: Business Efficiency and Value, PLM & ERP Integration A CIM data Report. [http://www.cimdata.com]. Teamcenter Gateway for SAP Configuration Guide Version 8.0.0.

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