14ME415 PRODUCT LIFE CYCLE MANAGEMENT

Dr. J.S.Senthilkumaar
Professor in Mechanical Engineering
MITS
Email: drsenthiljs@mits.ac.in
Mobile: 9100904918
Unit-1 MOTIVATION AND INTRODUCTION
• The opportunities and benefits of PLM, Different views of PLM, e-
commerce, B to B, B to C forms of business, extended enterprise,
concepts in PDM - product life cycle, business objects, information
flow model in product development, engineering bill of materials and
manufacturing bill of materials.
 PRODUCT LIFE CYCLE MANAGEMENT
PLM is defined as an “encompassing approach to innovation, Introduction of new
product development (NPD), Product information management” . This starts from
ideas to end of life. PLM is the business activity by managing
PLM is divided into three stages:
1. Beginning of life (BOI)
2. Middle of Life (MOL)
3. End of life (EOL)
PLM helps to launch the new product and companies will develop new and
successful products to the market. PLM objective is to increase product revenues,
reduce product related costs, maximize the profit, maximize the value of current and
future products for customers and share holders.
 Paradigm of PLM
1. Marketing department is needed which product is required by
customers or markets.
2. Engineering department designed them.
3. Manufacturing department produce the products
4. After sales and service team support them.
 Opportunities PLM:
Globalisation -More customers in product and services.
New products :Electronics, biotechnology and nanotechnology.
Nanostructures
Designer drugs developed
Further developments: computing, Internet, World Wide Web, Grid, Mobile and database
technology
Intelligent clothes
Direct brain implants of memory and processing power
Sensors implanted in the body will monitor organ performance.
Automatically transmitted and viewable in real-time on personal web-sites.
Heart beats and brain activity
Environmental requirements and sustainable development
 Benefits of PLM
1. Capture customer requirements better
2. Create more innovative ideas
3. Improve the sales process, wherever the customer is located
4. Develop products faster
5. Develop products in an international collaborative development environment
6. Manufacture in-house, or outsource manufacture to low-cost suppliers
7. Deliver the required product at the required time in the required place
8. Provide superb support of product use
9. Prevent future product failures through knowledge of past failures
10. Schedule maintenance effectively based on knowledge of the actual use of the product
11. Reduce spares requirements by better knowledge of use of spares
12. Provide maintenance information on line, with up-to-date documentation and service
bulletins,
13. Provide better product maintenance and service until the product is goes to scrap in an
environmental free.
 Different views of PLM
1. We’re focusing on customers these days, not products. Customer focus is our message.
2. It’s another enterprise-wide mega-project. Everyone knows that kind of project doesn’t work.
3. It’s just another cost. We have to focus on cost-cutting, not look for ways to spend money.
4. The payback period is more than 12 months so we’re not interested.
5. Get Engineering to do its job properly, and you won’t need PLM.
6. Get Marketing to define specifications properly, and you won’t need PLM.
7. Don’t need it. We just put a new product support organisation in place, so it doesn’t interest me.
8. Don’t have the technical and management skills to implement PLM.
9. Why worry about the actual product when it’s so much easier just to change peoples’
perception of it?
10. Management is interested in PLM, but they doesn’t know how to justify its cost, so isn’t
pursuing it.
11. Enterprise-wide technologies such as PLM are difficult to implement and have a high failure
rate. .
12. Don’t want it – it wasn’t invented here, so isn’t worth having.
E-Commerce (ELECTRONIC COMMERCE or EC)

E-commerce is the buying and selling of goods and services, or the

transmitting of funds or data, over an electronic network, primarily
the internet.
These business transactions occur either as business-to-business,
business-to-consumer, consumer-to-consumer or consumer-to-
business.
The terms e-commerce and e-business are often used
interchangeably. The term e-tail is also sometimes used in
reference to transactional processes for online shopping.
Supply Chain Management

Principles of Information Systems, Sixth Edition 9

 History of e-commerce
The beginnings 1960s,
Electronic Data Interchange (EDI)
1979, American National Standards Institute (ANSI) developed ASC X12 as a
universal standard for businesses to share documents through electronic
networks.
The growth and acceptance of credit cards, automated teller machines (ATM)
and telephone banking in the 1980s were also forms of electronic commerce.
Another form of E-Commerce was the airline reservation system, for example
Sabre in the USA and Travicom in the UK.

1980-1990 individual users sharing electronic documents with each other -the
rise of eBay.
Example: AMAZON and flipkart revolutionized the e-commerce industry. Consumers can
now purchase endless amounts of items online, both from typical brick and mortar stores
with e-commerce capabilities and one another.
E- Commerce

Email, online catalogs and shopping carts,

business-to-business activities : email for unsolicited ads to consumers and other business prospects, as well
as to send out e-newsletters to subscribers. More companies now try to entice consumers directly online,
using tools such as digital coupons, social media marketing and targeted advertisements.
• The benefits of e-commerce : around-the-clock availability, the speed of access, the wide availability of
goods and services for the consumer, easy accessibility, and international reach.
• E-commerce downsides: limited customer service, consumers not being able to see or touch a product
prior to purchase, and the necessitated wait time for product shipping.
• The e-commerce market continues to grow: Online sales accounted for more than a third of total U.S.
retail sales growth in 2015, according to data from the U.S. Commerce Department. Web sales totaled
$341.7 billion in 2015, a 14.6% increase over 2014. E-commerce conducted using mobile devices and
social media is on the rise as well: Internet Retailer reported that mobile accounted for 30% of all U.S. e-
commerce activities in 2015. And according to Invesp, 5% of all online spending was via social
commerce in 2015, with Facebook, Pinterest and Twitter providing the most referrals.
 E- Commerce applications
1. Retail and wholesale
• Electronic retailing
• Cybermalls
• Wholesale e-commerce: B2B
2. Manufacturing
3. Marketing
• Market segmentation
• Technology-enabled relationship management
4. Investment and Finance
 Types of E-Commerce
B2B (Business-to-Business)
B2C (Business-to-Consumer)
C2B (Consumer-to-Business)
C2C (Consumer-to-Consumer)
 B TO B Business:
Business to business, also called B to B or B2B
Transaction that exists between businesses -> manufacturer and wholesaler, or a
wholesaler and a retailer.
Business to business refers to business between companies, rather than between a
company and individual consumers.
Business to business stands in contrast to business to consumer (B2C) and business
to government (B2G) transactions.

Read more: Business To Business - B To B

https://www.investopedia.com/terms/b/btob.asp#ixzz50XxweXRd
 B TO B Business:
Example:
supply chain involves multiple business to business transactions,
-purchase components and products such as other raw materials for use
in the manufacturing processes.
Finished products can then be sold to individuals via business to
consumer transactions.
In the context of communication, business to business refers to methods
by which employees from different companies can connect with one
another, such as through social media.
This type of communication between the employees of two or more
companies is called B2B communication.
 B2B E-Commerce
Internet provides a robust environment -products and services
Groundwork for future business to business transactions
Company websites allow interested parties to learn about a business's
products and services and initiate contact.
Online product and supply exchange websites allow businesses to search
for products and services and initiate procurement through e-
procurement interfaces.
Specialized online directories providing information about particular
industries, companies and the products and services they provide also
facilitate business to business transactions.
 Extended Enterprise:
Extended enterprise is the concept that a company does not operate in isolation because its
success is dependent upon a network of partner relationships.
The necessity for a collaborative relationship between supply chain members
and focus attention on the competitive advantages the company felt could be
gained when suppliers become partners.
Information technology (IT) plays an important role in an extended
enterprise, facilitating communication and relationship-building and
providing each member of the supply chain with a common view of data in
real or near-real time.
Concept of Product Data Management (PDM)
Product data management (PDM)
Product data management (PDM) is a tool to manage all the product data
and also product development process. PDM systems handle the masses of
data and information required to design, manufacture and/or assembly
products and then support and maintains them.
PDM is the business function often within product lifecycle
management (PLM) that is responsible for the management and publication
of product data.
• use of software or other tools to track and control data related to a particular product.
• Tracked data usually technical specifications of the product,
• specifications for manufacture and development, and the types of materials that will be required to produce goods.
• a company to track the various costs associated with the creation and launch of a product.
• product lifecycle management and configuration management, and is primarily used by
engineers.
Concept of Product Data Management (PDM)
− Product configurations
− Part definitions and other design data
− Specifications
− CAD drawings
− Geometric models
− Images (scanned drawings, photographs, etc.)
− Engineering analysis models and results
− Manufacturing process plans and routes
− NC-programs
− Software components of products
− Electronically stored documents, notes and correspondence
− Audio and live video annotations
− Hardcopy (paper-based and microform) documents (by reference)
− Project plans
− Price catalogues
− Purchase orders
− Bill of materials
PDM System
PDM is useful for companies in every industry segment that
design and manufacture products.
• − Aerospace
• − Automotive: assembly and components
• − General mechanical manufacturing
• − Electrical and electronic products
• − Computer manufacturing
• − Defence industries
• − Oil and gas exploration and production
• − Chemical and process engineering
• − Food and drinks industries
• − Pharmaceuticals
• − Power generation
• − Construction companies
• − Transport operators; road, rail, sea, air
• − Utilities: electricity, water, telecommunications
• − Design and management consultants
• − Central and local government.
Concept of Product Data Management (PDM) …
Advantages:
01.Track and manage all
changes to product related data
02.Spend less time organizing
and tracking design data
03.Improve productivity
through reuse of product design
data
04.Enhance collaboration
05.Helps using visual
management
 Benefits of PDM
• Enhanced co-operation: -PDM system enables people, who are often left out of early project phases,
possibility to contribute to product design and development. The results are faster work, fewer errors, less
redundancy, greater cooperation, and smoother work flow. This leads to bottom-line cost savings and time
reductions. The PDM system provides a platform through which geographically remote teams can work
together.
• Integration tool: it makes product data available throughout the enterprise, right information to right
person at right time and in right form. This can form a basis for organizations to restructure their product-
development processes and implement initiatives such as concurrent engineering and collaborative product
development.
• Faster Processes: − As data is available whole time, there is no loss of time for waiting the right document
to reach right person. Also time spent for searching correct document is reduced.
• Improved Productivity: Users of PDM don’t need to reinvent wheel, as they easily find out if it is already
invented. This increases productivity of designer.
• Improved Control: PDM systems ensures that the current data is available, so that the problems of working
with old data are avoided. PDM system ensures that the only right persons can access the data and change
it. Also it makes easier to handle large products where the amount of product data can be immense.

• Easier access and use: PDM system can provide interface, where users can see for example 3D model
without having to use the right CAD program and review it.
• Improved Searching and Retrieving Information: Using meta-data in search criteria means that search and
retrieval of data can be much focused.
PRODUCT LIFE CYCLE
Firm seeks to build product awareness and develop a market for the product.

i. Product branding and quality level established and intellectual

property protection such as patents and trademarks are obtained.
ii. Pricing will low to build market share rapidly, or high skim pricing to
recover development costs.
iii. Distribution is selective until consumers show acceptance of the
product.
iv. Promotion is aimed at innovators and early adopters. Marketing
communications seeks to build product awareness and to educate
potential consumers about the product.
 PRODUCT LIFE CYCLE
PRODUCT LIFE CYCLE: There are four elements in product life cycle.
PRODUCT LIFE CYCLE STAGES
PRODUCT LIFE CYCLE
Growth stage:
In the growth stage, the firm seeks to build brand preference and increase
market share.
i. Product quality is maintained and additional features and support services
may be added.
ii. Pricing is maintained as the firm enjoys increasing demand with little
competition.
iii. Distribution channels are added as demand increases and customers accept
the product.
iv. Promotion is aimed at a broader audience.
PRODUCT LIFE CYCLE
Maturity stage:
Sales growth slow at maturity. Competition may appear with similar products. The
primary objective at this point is to defend market share while maximizing profit.
i. Product features may be enhanced to differentiate the product from that of
competitors.
ii. Pricing may be lower because of the new competition.
iii. Distribution becomes more intensive and incentives may be offered to encourage
preference over competing products.
iv. Promotion emphasizes product differentiation.
PRODUCT LIFE CYCLE
Decline stage:
As sales decline, the firm has several options:

i. Sales are slow.

ii. Maintain the product, hoping that competitor will stop their
production.
iii. Increase profit by reduction product costs
iv. Stop production and start new goods.
 PLM Business Objectives
1 Shorter time to market
• Data centralizing control
• product development can be completed more quickly
• Design teams can work faster (transfer of design data to production). Faster product development and a
shorter time to market are essential to remain competitive.
2 Reduced compliance risks
• to manage a single version of truth for all product data.
• cost prevention, -expense of product recalls, legal fees, and lost productivity etc.
• 3 Decrease costs
• to reduce both material and production costs, as up to 70% of a product’s cost is decided through the design
stage.
• First -decrease in prototyping and scrap costs -as the single source of authority.
• Secondly, reduced retooling expenses, which depend on the extent of total product reuse.
4 Increase productivity
• eradicate time-consuming activities, -double checking data for any irregularities, and having to search for
missing data.
• Minimized processing errors and rework caused by using out-dated information.
 PLM Business Objectives
5 Accelerate revenue growth
• two ways to increase earnings- revenue growth and cost reductions.
• revenue growth is four times more influential compared to cost reductions,
• Unlike ERP, to manage cost control and cost reductions, as well as supporting
revenue growth
6 Drive innovation
• to increase their innovation, without having to compromise on their flexibility or
agility.
• can protect their intellectual property
7 Enhance product quality
• Make it easy to manage and control -overall product quality.
• to implement all the necessary processes to maintain product quality and customer
satisfaction.
 Information Flow Model Product Development

At first glance, it may appear that a key objective in a product development project is to get
the information about the new product to flow smoothly from the idea, to the design, to
production.

Information flow from product idea to realisation

At second glance, it’s apparent that it would be better if information flowed
smoothly all the way down the product lifecycle.

Information flow from product cradle to grave

 Information Flow Model Product Development
But the flow of information isn’t enough, there must also be a flow of material

Information and material flow from product cradle to grave

After further thought, it will be realised that the picture is nowhere near so simple. The product’s lifecycle
begins with the imagine phase. Usually information from the definition, realisation, use, support and
retirement phases of similar products will be needed in this phase. And material from existing products may
also be examined. Before the information for the new product flows from the imagine phase to the define
phase, there has usually been a flow in the opposite direction.
In the next phase, it will be the same. Previous definitions will be re-used.
Information about previous realisations will be reviewed. Existing products may be reviewed. Information
about the use of products will be used. Thought will be given to the way the product will be disposed of. And
so it goes on, getting more and more complex as each phase is examined, and the relationships with the other
phases brought to light.
Bill of Materials (BOM):
A bill of material is a formally structured list for an object (semi-finished or
finished product) which lists all the component parts of the object with the
name, reference number, quantity, and unit of measure of each component. A
bill of material can only refer to a quantity greater than or equal to one of an
object. It is a product data structure, which captures the end products, its
assemblies, their quantities and relationships.
(OR)
A bill of materials or product structure (sometimes bill of material, BOM or
associated list) is a list of the raw materials, sub-assemblies, intermediate
assemblies, sub-components, parts and the quantities of each needed to
manufacture an end product.
BOM:
There are usually two kinds of bills of materials needed for a product: engineering and
manufacturing BOM.
1. Engineering BOM
2. Manufacturing BOM
Engineering BOM (EBOM):
An engineering bill of materials (EBOM) is a type of bill of materials (BOM) reflecting
the product as designed by engineering, referred to as the "as-designed" bill of materials.
The engineering bill of materials focuses on parts as they exist in the design sense, and
typically lists items from the engineering perspective, for example, on an assembly
drawing. It does not include things like packaging, shipping containers and other
components needed for a shippable product, or specify how parts should be grouped at
each stage or production. Such items are instead typically included in the manufacturing
bill of materials (MBOM).An accurate engineering bill of materials is critical since the
manufacturing bill of materials is based on the EBOM. Inaccuracy or incompleteness can
mean incorrect product costs, inventory levels, and accounting; production problems and
delays; unnecessary revision cycles; and other issues. The right level of detail gives
manufacturing information it needs to plan for new tools and testing, enables better part-
purchasing decisions and prevents unnecessary changes.
Manufacturing BOM (MBOM):
The manufacturing bill of materials, also referred to as the manufacturing BOM, contains
all the parts and assemblies required to build a complete and shippable product. This
includes all the packaging materials required to ship the finished product to the customer.
The bill of materials will also include any processes that need to be performed on the item
before it is completed. The manufacturing bill of materials stores all the information
required for manufacturing activities. (When MRP is run the bill of materials are exploded
for the finished products that have been ordered by customers. The MRP process takes the
details from the manufacturing bill of materials and calculates, based on the suggested
delivery date to the customer, whether materials are need to be purchased and when the
manufacturing order needs to be started).