PDF | Product Lifecycle Management (PLM) is an integrated, information-driven strategy that speeds the innovation and launch of successful. Article (PDF Available) in International Journal of Product Lifecycle . management (PLM), starting from its history to its constituent elements. Product Life Cycle Management. 2. URENIO - Urban and Regional Innovation Research Unit aracer.mobi CONTENTS. INTRODUCTION. 3. PART 1.
|Language:||English, Spanish, Arabic|
|Distribution:||Free* [*Registration needed]|
What is Product Lifecycle Management (PLM) In industry, product lifecycle management (PLM) is the process of managing the entire lifecycle of a product from. Clifford D. "Managing the Product Life Cycle", European Business Journal, July On-line: aracer.mobi Product lifecycle management (PLM) today can benefit companies of all sizes and needs. Autodesk PLM , a cloud-based offering, is especially beneficial for.
Concurrent engineering also has the added benefit of providing better and more immediate communication between departments, reducing the chance of costly, late design changes. It adopts a problem prevention method as compared to the problem solving and re-designing method of traditional sequential engineering.
Bottom—up design[ edit ] Bottom—up design CAD-centric occurs where the definition of 3D models of a product starts with the construction of individual components. These are then virtually brought together in sub-assemblies of more than one level until the full product is digitally defined. This is sometimes known as the "review structure" which shows what the product will look like. The BOM contains all of the physical solid components of a product from a CAD system; it may also but not always contain other 'bulk items' required for the final product but which in spite of having definite physical mass and volume are not usually associated with CAD geometry such as paint, glue, oil, adhesive tape and other materials.
Bottom—up design tends to focus on the capabilities of available real-world physical technology, implementing those solutions which this technology is most suited to. When these bottom—up solutions have real-world value, bottom—up design can be much more efficient than top—down design.
The risk of bottom—up design is that it very efficiently provides solutions to low-value problems. The focus of bottom—up design is "what can we most efficiently do with this technology? A top level spec is repeatedly decomposed into lower level structures and specifications, until the physical implementation layer is reached. The risk of a top—down design is that it may not take advantage of more efficient applications of current physical technology, due to excessive layers of lower-level abstraction due to following an abstraction path which does not efficiently fit available components e.
The positive value of top—down design is that it preserves a focus on the optimum solution requirements. A part-centric top—down design may eliminate some of the risks of top—down design.
This starts with a layout model, often a simple 2D sketch defining basic sizes and some major defining parameters, which may include some Industrial design elements. Geometry from this is associatively copied down to the next level, which represents different subsystems of the product.
The geometry in the sub-systems is then used to define more detail in levels below. Depending on the complexity of the product, a number of levels of this assembly are created until the basic definition of components can be identified, such as position and principal dimensions.
This information is then associatively copied to component files. In these files the components are detailed; this is where the classic bottom—up assembly starts.
The top—down assembly is sometime known as a "control structure".
Three operating questions will quickly occur to the alert executive: Given a proposed new product or service, how and to what extent can the shape and duration of each stage be predicted? Given an existing product, how can one determine what stage it is in? Given all this knowledge, how can it be effectively used?
A brief further elaboration of each stage will be useful before dealing with these questions in detail. Development Stage Bringing a new product to market is fraught with unknowns, uncertainties, and frequently unknowable risks. A proved cancer cure would require virtually no market development; it would get immediate massive support. An alleged superior substitute for the lost-wax process of sculpture casting would take lots longer.
While it has been demonstrated time after time that properly customer-oriented new product development is one of the primary conditions of sales and profit growth, what have been demonstrated even more conclusively are the ravaging costs and frequent fatalities associated with launching new products. Nothing seems to take more time, cost more money, involve more pitfalls, cause more anguish, or break more careers than do sincere and well-conceived new product programs.
They have instead from the very outset an infinitely descending curve. They let others take the first bite of the supposedly juicy apple that tantalizes them.
They let others do the pioneering. If the idea works, they quickly follow suit. The second one is good enough. Growth Stage The usual characteristic of a successful new product is a gradual rise in its sales curve during the market development stage. At some point in this rise a marked increase in consumer demand occurs and sales take off.
The boom is on. This is the beginning of Stage 2—the market growth stage. At this point potential competitors who have been watching developments during Stage I jump into the fray. Others make functional and design improvements.
And at this point product and brand differentiation begin to develop. Instead of seeking ways of getting consumers to try the product, the originator now faces the more compelling problem of getting them to prefer his brand. This generally requires important changes in marketing strategies and methods. But the policies and tactics now adopted will be neither freely the sole choice of the originating producer, nor as experimental as they might have been during Stage I.
The presence of competitors both dictates and limits what can easily be tried—such as, for example, testing what is the best price level or the best channel of distribution. As the rate of consumer acceptance accelerates, it generally becomes increasingly easy to open new distribution channels and retail outlets.
This creates an exaggerated impression of profit opportunity which, in turn, attracts more competitors. Some of these will begin to charge lower prices because of later advances in technology, production shortcuts, the need to take lower margins in order to get distribution, and the like.
All this in time inescapably moves the industry to the threshold of a new stage of competition. Maturity Stage This new stage is the market maturity stage. The first sign of its advent is evidence of market saturation. This means that most consumer companies or households that are sales prospects will be owning or using the product. Sales now grow about on a par with population.
No more distribution pipelines need be filled.
Price competition now becomes intense. Competitive attempts to achieve and hold brand preference now involve making finer and finer differentiations in the product, in customer services, and in the promotional practices and claims made for the product. Typically, the market maturity stage forces the producer to concentrate on holding his distribution outlets, retaining his shelf space, and, in the end, trying to secure even more intensive distribution.
Whereas during the market development stage the originator depended heavily on the positive efforts of his retailers and distributors to help sell his product, retailers and distributors will now frequently have been reduced largely to being merchandise-displayers and order-takers.
In the case of branded products in particular, the originator must now, more than ever, communicate directly with the consumer. The market maturity stage typically calls for a new kind of emphasis on competing more effectively. The originator is increasingly forced to appeal to the consumer on the basis of price, marginal product differences, or both. Depending on the product, services and deals offered in connection with it are often the clearest and most effective forms of differentiation.
Beyond these, there will be attempts to create and promote fine product distinctions through packaging and advertising, and to appeal to special market segments. Or maturity can persist, but in a state of gradual but steady per capita decline, as in the case of beer and steel. Decline Stage When market maturity tapers off and consequently comes to an end, the product enters Stage 4—market decline. In all cases of maturity and decline the industry is transformed. Few companies are able to weather the competitive storm.
As demand declines, the overcapacity that was already apparent during the period of maturity now becomes endemic. Some producers see the handwriting implacably on the wall but feel that with proper management and cunning they will be one of the survivors after the industry-wide deluge they so clearly foresee. A few companies do indeed weather the storm, sustaining life through the constant descent that now clearly characterizes the industry. Production gets concentrated into fewer hands.
Prices and margins get depressed. Consumers get bored. The only cases where there is any relief from this boredom and gradual euthanasia are where styling and fashion play some constantly revivifying role. Preplanning Importance Knowing that the lives of successful products and services are generally characterized by something like the pattern illustrated in Exhibit I can become the basis for important life-giving policies and practices.
One of the greatest values of the life cycle concept is for managers about to launch a new product. Indeed, it is precisely because so little specific day-to-day guidance is possible in anything, and because no checklist has ever by itself been very useful to anybody for very long, that business management will probably never be a science—always an art—and will pay exceptional rewards to managers with rare talent, enormous energy, iron nerve, great capacity for assuming responsibility and bearing accountability.
Time spent in attempting this kind of foresight not only helps assure that a more rational approach is brought to product planning and merchandising; also, as will be shown later, it can help create valuable lead time for important strategic and tactical moves after the product is brought to market.
Specifically, it can be a great help in developing an orderly series of competitive moves, in expanding or stretching out the life of a product, in maintaining a clean product line, and in purposely phasing out dying and costly old products.
The more unique or distinctive the newness of the product, the longer it generally takes to get it successfully off the ground. The world does not automatically beat a path to the man with the better mousetrap. This makes life particularly difficult for the innovator. He will have more than the usual difficulties of identifying those characteristics of his product and those supporting communications themes or devices which imply value to the consumer.
As a consequence, the more distinctive the newness, the greater the risk of failure resulting either from insufficient working capital to sustain a long and frustrating period of creating enough solvent customers to make the proposition pay, or from the inability to convince investors and bankers that they should put up more money.
In any particular situation the more people who will be involved in making a single downloading decision for a new product, the more drawn out Stage I will be. Thus in the highly fragmented construction materials industry, for example, success takes an exceptionally long time to catch hold; and having once caught hold, it tends to hold tenaciously for a long time—often too long.
On the other hand, fashion items clearly catch on fastest and last shortest. But because fashion is so powerful, recently some companies in what often seem the least fashion influenced of industries machine tools, for example have shortened the market development stage by introducing elements of design and packaging fashion to their products. What factors tend to prolong the market development stage and therefore raise the risk of failure? Success Chances But problems also create opportunities to control the forces arrayed against new product success.
For example, the newer the product, the more important it becomes for the customers to have a favorable first experience with it. Newness creates a certain special visibility for the product, with a certain number of people standing on the sidelines to see how the first customers get on with it. But a favorable first experience or application will, for the same reason, get a lot of disproportionately favorable publicity.
The possibility of exaggerated disillusionment with a poor first experience can raise vital questions regarding the appropriate channels of distribution for a new product.
On the other hand, channels that provide this kind of help such as small neighborhood appliance stores in the case of washing machines during the market development stage may not be the ones best able to merchandise the product most successfully later when help in creating and personally reassuring customers is less important than wide product distribution.
In entering the market development stage, pricing decisions are often particularly hard for the producer to make. Should he set an initially high price to recoup his investment quickly—i. The decision that is finally made may affect not just the rate at which the product catches on at the beginning, but even the duration of its total life.
Thus some products that are priced too low at the outset particularly fashion goods, such as the chemise, or sack, a few years ago may catch on so quickly that they become short-lived fads. A slower rate of consumer acceptance might often extend their life cycles and raise the total profits they yield. The actual slope, or rate of the growth stage, depends on some of the same things as does success or failure in Stage I.
But the extent to which patent exclusiveness can play a critical role is sometimes inexplicably forgotten. Maturity Stage — During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.
This shrinkage could be due to the market becoming saturated i. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.
Here is the example of watching recorded television and the various stages of each method:. However, the key to successful manufacturing is not just understanding this life cycle, but also proactively managing products throughout their lifetime, applying the appropriate resources and sales and marketing strategies, depending on what stage products are at in the cycle.
New product development process explained, step by step. Older, long-established products eventually … [Read More Just about all manufactured products have a limited life, and during this life they will pass through four product life cycle stages; Introduction, … [Read More