In a world where innovation is the highest value and time is a critical variable, effective product lifecycle management (PLM) is not only an advantage, but a necessity. Companies, from small start-ups to industry giants, are well aware that each stage requires precision, coordination and access to accurate and up-to-date data. This is why PLM systems are gaining in importance. They are becoming the basis for streamlined production processes.
Product lifecycle management is a strategic process that covers the entire process of product creation and life cycle, from initial concept, through development, production, servicing, to final disposal. In other words, PLM is the integration of product-related information, processes and people. It enables companies to collaborate more effectively, avoid costly mistakes, accelerate product launches and reduce overall operating costs. In short, PLM is a digital thread that connects all the necessary information and activities, systematising them and making them available in a unified form.
The evolution of PLM systems: from CAD to Industry 4.0
To understand what PLM has become, it is a good idea to start by recalling what CAD software is. In short, it uses computer programs to create, modify, analyse and document designs. Over time, CAD began to replace traditional technical drawings, enabling precise modelling of parts, machines and buildings, which significantly accelerated work and reduced costs.
Early product development solutions were useful, but they faced a serious problem: how to manage, distribute, search and reuse large CAD files. In the 20th century, computers did not have the capacity they have today to store these large files, let alone share them. To solve this problem, product data management (PDM) was introduced. Before 1990, PDM or PLM 1.0 solutions were CAD-centric and focused almost exclusively on CAD files or document management.
In the 1990s, globalisation, outsourcing and the pressure to bring products to market quickly forced companies to expand their PDM implementations.
After 2000, a new generation of PLM 3.0 software emerged. It focused on product launch and included more functions throughout the lifecycle, including innovation and requirements management. In addition, it improved the connection to manufacturing, supply chain and commercialisation processes. In many cases, these features were adopted and integrated into older generation tools. Although companies could leverage this new functionality, the older generation approach was complex and still required many complicated and time-consuming operations.
Meanwhile, the pressure was mounting. Companies were demanding solutions that would meet their requirements for product and process innovation, as well as the latest initiatives in digital, business and Industry 4.0 transformation.
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How does PLM solve common business problems?
Many companies are familiar with the problems of decentralised data management. One team stores files on a shared drive, another sends attachments by email, and a third uses a completely different, unconnected system. PLM consolidates all product data on a single platform, eliminating silos and ensuring consistency of information for everyone. How often does it happen that an employee sends the ‘final’ version of a file, only to find out a moment later that it is no longer the final version? The PLM system tracks every change, ensuring that the entire team is always working on the latest, authorised version of the project, eliminating mistakes and delays.
Endless email chains, status clarification meetings and manual document handoffs are also commonplace and slow down work. PLM enables real-time collaboration, automates and simplifies workflows, ensuring smooth and rapid project progress. Costly mistakes? Mistakes such as sending the wrong part to production or missing a critical design update happen when data is disorganised. PLM helps detect these issues early in the lifecycle, saving time, money and minimising frustration.
Imagine designing a new coffee machine. Without PLM, the designer uses one tool, the engineer uses another, and the supply chain team relies on spreadsheets. The information is inconsistent. The designer may make a last-minute change, and the engineer or purchasing department will only find out about it at a meeting or, worse, during prototype assembly.
Who uses PLM? From designers to executives
PLM is a universal tool, essential for anyone involved in the product creation process. It is used by designers who can create, modify and collaborate on projects (often using integrated CAD software) without losing control of their work and with the confidence that they are working on the correct specifications.
Engineers gain instant access to centralised data, allowing them to reduce errors, optimise engineering processes and streamline workflows. Project managers gain insight into every stage of the product lifecycle, monitor schedules, budgets and resource allocation, allowing them to keep projects on track. In turn, executives using PLM make better, more informed decisions with insight into costs, schedules and resources. PLM also links the work of many departments, giving the Production and Supply Chain departments, for example, access to up-to-date bills of materials and specifications, which minimises production errors and speeds up material procurement.
From theory to practice. How PLM modernises companies
There are many examples of PLM system implementation. One of them is Hino Motor, a Japanese truck manufacturer, which was the first to present a fully electric-powered transport unit. The company supplies its products to buyers in 80 countries.
Before using PLM systems, engineers used traditional software in their work. Documentation was managed using files or folders and a dedicated CAD documentation management system for only one of the two technologies. This created confusion in the flow and exchange of data between the two design departments. The company offers many versions of the same truck, differing, for example, in the location of the fuel tank. In reality, achieving these variants involves thousands of design changes. Engineers who design equipment such as batteries and fuel tanks must collaborate with other designers to maintain the compatibility of the entire assembly. If the position of the fuel tank changes, it means that parts in more than 100 models of the same truck must be changed at the same time. That is why it is so important that this unified information is properly managed.
When the company began exporting its products to foreign markets, another factor defining the final design of the assembly emerged: local conditions.
The parts that are currently being designed are used in other projects, so if something changes in them, it must be known, says Toshiaki Miyashita, deputy general manager of Hino Motors CAD.
In such a complex design process, it is difficult to imagine working without a system to manage such a large amount of information.
Before implementing the PLM system, 73% of designers reported serious problems with documentation. The biggest challenge was gaining access to the current version of the model they were working on. They also had problems sharing it.
After implementing the software, the company noticed a significant increase in designer productivity. Previously, it took a week and two engineers to make changes to 10 designs. After implementation, each of these two engineers is able to apply corrections to 60 machines. This results in a 12-fold increase in productivity.
Another example is the Adidas Group. Its new products are constantly being developed and launched to meet the needs of the most demanding professional athletes, teams and consumers. However, the company was faced with the need to implement PLM, which would enable collaboration within a customer-oriented organisation offering multiple brands and products.
Read more: It all begins with design. How the future of product development will look like
The challenges included, among others: millions of pieces of information in unique systems that made it difficult to easily share data between groups, leading to high costs. Some older technologies made it difficult for factories to collaborate and exchange product information. In addition, the lack of a single repository for managing materials caused problems with integrity and duplication of data entry.
Furthermore, when Adidas acquired Reebok in 2006, the company also acquired its solution for the retail, footwear and apparel industries. The PLM platform successfully connected globally dispersed teams with a simple yet comprehensive user interface. More specifically, it provided production line planning, cost calculation, specification management, merchandising and many other functions.
Easy collaboration, a single repository of product information and support for multiple business models by the brand are key, but extremely difficult for a company of our size and vast number of products, says Peter Burrows, retired Chief Information Officer, Adidas Group.
By implementing PLM as a base platform, Adidas now has a single database containing all product information and a single repository for material management. This has increased design and development efficiency.
PLM has also made it possible to collaborate easily with external partners in different locations around the world and has shortened cycle times. In addition, it has enabled the support of multiple business models and product calendars with flexible workflows. Adidas can apply the same implementation method across all brands and focus on ready-made features.
PLM and the digital twin
In this context, it is worth mentioning another important aspect of PLM: the Digital Twin. It is a virtual replica of a physical product, process or system. It bridges the gap between the physical and digital worlds. It uses data collected in real time from sensors installed on the physical counterpart. This allows engineers and managers to analyse performance, monitor status, simulate ‘what if’ scenarios, and predict failures before they occur in the real world.
The Digital Twin enables the optimisation of design, production, and even servicing and disposal processes, leading to faster innovation and significant reductions in operating costs.
Read more: Will digital twin revolutionize the aerospace and defense sector? [REPORT]
PLM eliminates confusion, bottlenecks and costly surprises
Today’s modern PLM 4.0 software is supply chain and customer-oriented. It is built on a software-as-a-service (SaaS) model, so companies no longer need to employ an entire IT department to manage it.
Access to a million pieces of information in the cloud, from anywhere and at any time, closely links previously dispersed business processes. As a result, modern PLM accelerates innovation, improves product quality, shortens time to market and reduces costs.
With PLM, everyone uses the same system: the designer uploads their 3D prototype to the central PLM repository, the engineer adds technical specifications, compliance standards and creates precise BOMs directly in the system, The Supply Chain team can see exactly what parts are needed and when they need to be ordered, based on the current BOM. Changes are automatically updated for everyone involved, and every modification is tracked. This eliminates confusion, bottlenecks and costly surprises, ensuring a smooth and efficient product development cycle.
