Product Lifecycle Management Systems follow an integrated approach for using and controlling critical information, so products and processes are sourced and built correctly, at optimal costs. This standard of PLM system is applicable from conception and development to supply chain. When planned and implemented appropriately, PLM can enhance effectiveness quite remarkably for large global businesses. This is all the more essential when the ecosystem of product development partners is growing large; this is because supply chains are extended to the far corners of the globe and regulatory compliance challenges keep increasing.
Need to Embrace PLM
Several product development industries across the globe face consistent challenges throughout the production lifecycle. Although, some challenges can be unique to the nature, size and scale of the industry, there are several challenges that are typical to a production lifecycle. These include, but are not limited to, design complexities, massive scale of competition, their impact on price and innovation, customization challenges, economic uncertainty, stringent industrial regulations, and discord amongst supply chain partners. Research shows that almost 50 percent of development resources are wasted and about 20 percent of projects exceed their budget and time schedules. This is where a steadfast PLM system policy gains greater importance.
What can PLM do?
A well executed PLM system unifies all partners and processes in the production lifecycle by offering a single, strategic approach in the development, management, and supply chain of a product. The concept is not new to large global enterprises, but it has evolved to match volatility of the market, customer demographics, and global competition standards. PLM is not just a product of technology. It introduces process effectiveness, fast innovation, better quality control, risk elimination, and cost-efficiency.
Large enterprises that develop and implement a relevant PLM system can more often derive benefits from the initiative that include:
1. Faster Time to Market: As data centralization is enabled, production time frames are significantly reduced. Different teams can work faster with quick and timely access to data, helping to eliminate time gaps.
2. Increased Productivity and Reduced Costs: Productivity is largely enhanced because several non-value-add activities, such as replication, inconsistency, and loss of data, as well as manual checking can be eliminated. Processing errors from outdated data and re-work that results from such oversights can also be avoided. As a result, material and production costs are greatly optimized.
3. Better Product Quality: Large enterprises can focus on improvising procedures and resources that can better product quality, leading to greater customer satisfaction. This becomes an important need, especially when organizations are spread across the globe.
As organizations expand into competitive global markets, adoption of Product Lifecycle Management helps to overcome both engineering challenges and increased complexity of the market. PLM also helps facilitate automation in production and management, boosting efficiency and also eliminating wastage.
In addition to the benefits mentioned above, an efficient PLM System also ensures easier regulatory compliance, better management of processes, efficient reporting and analytics, and lower costs of new product introduction.
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