Product lifecycle management refers to the management of a product as it travels through the traditional stages of its life: development and launch, growth, maturity/stability, and decline. Producing and distributing the product are included in this process of treating it. Businesses must understand the product life cycle to decide on price, promotion, and expansion or cost-cutting.
Recognizing the Product Lifecycle Management
To produce a product that outperforms its competition is highly profitable and lasts as long as consumer preferences and technological capabilities allow; effective product life cycle management brings together the several companies, departments, and employees involved in the product's production.
A bill of materials is only the beginning of the process. Product lifecycle management solutions assist companies in dealing with the rising complexity and engineering problems of producing new products. How a product is marketed can be determined by its stage in the life cycle. An explanation is needed to describe a new product, whereas differentiation is needed for a more established product.
Benefits of PLM
Many advantages come from good product lifecycle management, such as speeding up the time to market, enhancing the quality of the final product, increasing the number of sales possibilities, and minimizing mistakes and waste. As a result, PLM may be supported by specialized computer software, including document storage, design integration, and process management.
Products' Lifecycle Management: A Brief History
As early as 1931, the idea of a product's life cycle was introduced. An employee of the advertising agency Booz Allen Hamilton proposed a five-stage life cycle for commodities in 1957, starting with the introduction phase and progressing through stages of development and maturity until reaching saturation and declining. In 1985, American Motors Corporation (AMC) was one of the first companies to use contemporary PLM.
While missing the resources of its larger competitors in 1985, AMC sought a strategy to speed up its product development process by focusing on enhancing the product lifetime of its essential products. AMC developed the Jeep Grand Cherokee in response to the Jeep Cherokee's success as the car that kicked off the current sport utility vehicle (SUV) industry.
Why Is PLM Essential for Businesses?
Businesses are concerned about the complexity. Product design, supply chain management, distribution, and consumer feedback are only increasing in complexity. Even while prices are falling due to increased global competition and ever-evolving laws, a profitable firm requires items that can be delivered quickly to market without sacrificing quality.
Managing a product's lifetime is a complex process that must consider each stage along the route and the technology needed to support each. A well-executed product lifecycle management system fosters and supports cooperation, allowing for a faster time to market and reducing the risk of product failure.
The Constituent Parts of Contemporary PLM
Product lifecycle management methods use information gleaned from the market to enhance existing goods and launch new ones. The product life cycle is one of the most significant aspects of product lifecycle management (PLM). Is there a five-step process for a product's lifespan? Improving product innovation and commercialization through ICT, mapping processes, controlling production techniques, and managing production methods.
Information And Communication Technology
There is a wide range of ICT components that are required for PLM. As a first step, you must break down data silos so that all relevant information about your goods - including design and supply chain details and marketing and sales efforts - is accessible in one central area.
Creating a flowchart
Your goods' whole lifespan should be mapped out in detail. At each stage of the route, identify the skillsets required. Make a list of the most important parties involved. PLM is more successful when it is shared with all parties engaged in creating a new product and can clear up any potential misunderstandings.
Producing methods
Manage product development data and procedures to speed up time to market while keeping costs, quality, and regulatory compliance under check.
Increasing product innovation
Gather as many ideas as possible and turn them into valuable products.
Rapid commercialization
Locate and focus on bottlenecks in developing new goods to shorten the time it takes to market. There are advantages to standardizing components and procedures. Creating connections with suppliers of materials and components can also be beneficial.
Product Lifecycle Management Challenges
Disconnected systems, procedures, and departments, as well as challenges with data quality and frequent engineering change orders, are standard in firms striving to handle more complicated product development. Inefficiencies and a lack of product commercialization might lead to higher expenses if many software systems are used.
A complete ERP system with modules for supply chain, manufacturing, and other teams is the best way to handle these and other issues. To reduce the number of handoffs between teams, you may also use tools like establishing enterprise-wide KPIs and targets and appointing end-to-end process owners.
