Traditional product lifecycle management (PLM) has come a long way—from its genesis as a solution focused on computer-aided design (CAD), offering document management capabilities to its evolution as a SaaS platform that manages the lifecycle of highly complex products.     

PLM software helps in:

• Reducing the time and cost of product development
• Improving collaboration among stakeholders
• Facilitating decision making across the product lifecycle with customized dashboards 

PLM software through the years

PLM is not a new concept. It was introduced in tandem with CAD software to support product development as the early product development solutions were not designed to locate, manage, distribute, and reuse large CAD files.

CAD systems belong to a broader category of unified manufacturing systems called computer-aided technologies (CAx), which also includes computer-aided manufacturing (CAM) and computer-aided engineering (CAE). PLM systems consist of CAx systems combined with product data management (PDM) modules. PDM software aids in the management of product data such as CAD models and manufacturing instructions. It is largely used by manufacturing firms to control product data from conceptual design to production.

  Source: TechnoLads

Years ago, large organizations adopted PLM software for complex product development and it primarily served to launch product varieties in succession. But, in the digital era, data plays a crucial role. Now, using correct product data across the product lifecycle—from the conception to the disposal stage—is imperative for enterprises of all sizes.

Modern PLM software plays a pivotal role in empowering the manufacturing industry with new services and capabilities. 

PLM software supports advancements in manufacturing

With advancements in the manufacturing industry, the demand for PLM software is growing. Digitization and automation are changing the face of traditional manufacturing, leading organizations to replace old legacy systems as products become smarter. As a result, cloud-based PLM software is gaining momentum.

Integration of internet of things (IoT) in the manufacturing industry is on the rise which helps to optimize and streamline the production process. Manufacturing businesses are looking to invest in smart connected products which come with monitoring capabilities, providing the manufacturer usage insights that can help address their customer requirements more efficiently. The increase in the use of smart manufacturing with the adoption of 3D printing and IoT technologies in production processes is expected to drive the uptake of PLM software. 

On G2, reviews for PLM software showcase its utility in streamlining workflows, offering a data repository for product information verification, and meeting compliance standards.

How do manufacturers benefit from PLM software?

While PLM provides a multitude of benefits, the following are critical to manufacturing companies:

• Integrate design and manufacturing processes: Manufacturing processes may utilize various software applications for design and production. PLM software optimizes the production process by:
• Automating product-related data management
• Integrating the data with other business solutions, such as manufacturing execution systems (MES) and enterprise resource planning (ERP)
• Providing a data repository with details that impact product development
• Assist change management: A product in its nascent stage is subject to a lot of changes in product specifications, operating parameters, and more. PLM software helps manage changes by facilitating smooth execution of processes and allowing teams to respond to challenges quickly. It also provides audit trails with inventory, market timing, and production changes. Organizations can record product revisions and alter document versions. 
• Support data warehousing: PLM software is a central repository for product information. It helps store and share accurate data. The software organizes the product’s data, helps organizations keep track of the data, and circulates correct information with project stakeholders.
• Provide a digital twin repository: A digital twin is a computerized representation of a physical asset. The integration of CAD into PLM software helps organizations save costs by testing a product digitally rather than creating physical prototypes. 
• Offer digital thread: Digital thread is a communication framework that allows discoverability and governance of product data throughout its lifecycle across the organization. It links all digital twin functionalities such as the designs, product data, performance data, supply chain data, and software used for creating the product. A digital thread, together with digital twins technology, provides design requirements, records, and all the data needed for product management. PLM helps avert mistakes at the start of the production process and project the cost of future projects. This can be attributed to how PLM utilizes data available in the digital thread. 

All these features can be delivered on-premises, but the cloud-based or SaaS model is slowly becoming the preferred option among software buyers.

Cloud-based PLM solutions gained popularity as the impact of the coronavirus pandemic disrupted global supply chains as many production units suffered due to scarcity of inputs from other businesses. The disruption coerced organizations to undergo digital transformation to access information, reduce cost, and stay connected with suppliers and customers. 

PLM links CAD data with the bill of materials (BOM) which helps manage product data and product development workflows and gets all business stakeholders on a single shared vision.

Cloud PLM is gaining traction

Choosing a PLM solution can be baffling. Manufacturing companies need to weigh the relative benefits against factors such as cost, ease of use, and more. Requirements for a PLM solution may differ based on particular business objectives.

Manufacturers need to choose between an on-premises solution and a cloud-based one. 

An on-premises deployment offers absolute control over the hardware and software and provides flexibility with tailoring and upgrading the software. However, it is typically sold under a perpetual license, thus involving a hefty initial investment. Usually, large enterprises invest in on-premises PLM solutions as they offer the functionality to store and transfer valuable data into their own servers, enabling them to exercise greater control over their project and ensure a high level of security. 

Cloud solutions are gaining popularity, especially among small and medium-sized companies, because of their scalability. Organizations need to buy short-term licenses, which are quicker to obtain. This translates to lesser investment and lower adoption barriers. Cloud PLM connects all the stakeholders to the same online database to utilize the same information, monitor the progress of the project, receive updates, and communicate seamlessly for better product management. 

It provides the staff and suppliers access to the server from their browser without sudden upgrade costs or server expenses. Cloud providers generally run at least one backup server, which makes it less likely for the organization to lose their data. The process of product development can be transformed by leveraging the benefits that a cloud-based solution can offer. 

Road ahead

PLM’s data management and visualization features make it a much sought-after solution. 

Complex manufacturing processes require engineering partners, contract manufacturers, and suppliers to come together and innovate to suit the requirements of complex product development and capitalize on market opportunities. Time constraints and high demand for products drive manufacturers to deliver products faster. 

Supply chains have become more dynamic and volatile than ever. This dynamism will continue to generate greater demand for PLM software in the ever-growing and highly innovative manufacturing industry.