MODULE 1

INTRODUCTION TO PRODUCT LIFE CYCLE MANAGEMENT

1.1 INTRODUCTION
Product lifecycle management makes it possible to command the whole life span of a
product and the information connected with it. Efficient product life management enables
companies to compete successfully in international and global markets.

Today we hear many companies say - Product Lifecycle Management (PLM) is an important
part of their business strategy or PLM has a big role in their corporate strategy. What does this
mean in practice? I can say for sure that without doubt the most difficult issue regarding business
strategy and strategically decisions is the implementation of the decisions made in the strategy
definition. This generalization also applies also PLM.

It might be difficult to find and create a practical business strategy for a company, however
the making it true is more difficult. This is especially true when the implementation of strategically
decisions require large scale transformation – a long lasting, corporate wide change process - in
daily operations. When talking about PLM and business strategy usually it is all about this, making
a huge leap to next level regarding lifecycle management operations and product management
practices. When the first big transformation into well controlled and IT- system enabled PLM has
been made and PLM operations are business as usual the real life realization of strategically
decisions in the PLM area becomes much more straight forward.

1.2 IMPORTANCE OF PLM:

PLM - is an essential tool for coping with the challenges of more demanding global
Competition and ever- shortening product and component lifecycles. New and better products
must be introduced to markets more quickly, with more profit and less labor, and the lifecycle of
each product must be better controlled, for example from financial and environmental
perspectives. Fierce competition in global markets drives companies to perform better. In order to
perform well financially, companies must be able to make informed decisions concerning the
lifecycle of each product in their portfolio. Winner products must be introduced to market quickly
and poorly performing products must be removed from the market. To do this well, companies
must have a very good command of the lifecycle of each product. A good command of product and
process definitions over a large product portfolio requires that ways of operation and IT-systems
must support each other flawlessly.

Today’s complex products require the collaboration of large specialist networks. In this
kind of supplier and partner network, product information must be transferred between
companies in electronic form, with a high level of information security. Overall, PLM can also be
considered as a tool for collaboration in the supply network and for managing product creation
and lifecycle processes in today's networked world, Bringing new products to market with less
expenditure of time and effort.

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 However, the benefits of operational PLM go far beyond incremental savings, yielding
greater bottom line savings and top-line revenue growth not only by implementing tools and
technologies, but also by making necessary, and often tough, changes in processes, practices and
methods and gaining control over product lifecycles and lifecycle processes. The return on
investment for PLM is based on a broader corporate business value, specifically the greater
market share and increased profitability achieved by streamlining the business processes that
help deliver innovative, winning products with high brand image quickly to market, while being
able to make informed lifecycle decisions over the complete product portfolio during the life cycle
of each individual product.

Operational efficiencies are improved with PLM because groups all across the value chain
can work faster through advanced information retrieval, electronic information sharing, data
reuse, and numerous automated capabilities, with greater information traceability and data
security. This allows companies to process engineering change orders and respond to product
support calls more quickly and with less labor. They can also work more effectively with suppliers
in handling bids and quotes, exchange critical product information more smoothly with
manufacturing facilities, and allow service technicians and spare part sales reps to quickly access
required engineering data in the field.

In this way, PLM can result in impressive cost savings, with many companies reporting pay-
off periods of one to two years or less based solely on reduced development costs .PLM also
enables better control over the product lifecycle. This gives opportunities for companies to boost
revenue streams by accelerating the pace at which innovative products are brought to market.
Excellent lifecycle control over products also gives new opportunities to control product margins
more carefully and remove poorly performing products from the markets. This set of benefits,
driving top line revenue growth and bottom line profitability, makes ROI extremely compelling,
with some industry analysts characterizing PLM as a competitive necessity for manufacturers.

How It Is Understood?
Well, what does all this – the strategically value of PLM and the undisputable benefits of it -
mean for corporate management? It means in practice making a big decision to implement the
defined strategy in practice in order to gain the wanted strategically and operational benefits.

This decision making is usually the first pitfall of PLM realization. The management
decision is usually to implement an IT system to reach for the benefits promised. The big question
however is, that why an earth if PLM is a strategically issue for a corporation and large scale
transformation procedure it turns out to be an IT-project in the end? Are all other strategically
objectives in a company turned into IT-projects – I would definitely say no.

The second common mistake usually why PLM misses the targets set for it, is the fact that
companies go straight to implementing an IT-system to meet PLM development needs and solve
problems at hand. Companies seldom recognize the fact that the PLM maturity of the company is
too low to launch a large scale PLM system project for the first time. There simply is not enough
understanding of PLM and its possibilities, but also its impacts to current way of doing things.
Usually the case also is that the processes and practices of a company are not mature enough to be
utilized in PLM context.
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 In this kind of immature development phase, where the decision has been made to start the
PLM implementation project and targets have been set for creating realization for PLM, it means
that IT will lead the way to the targets making all very major essential business / process
definitions, making up business rules, etc. in the PLM area. Well everyone can guess – is this the
right way to do this ?The third big why – why PLM fails to deliver the benefits set for it is because
the PLMIT solution is built as an independent island, a point solution, without lager and deeper
connections to daily business. Again I can be said that IT drives the development of PLM, when all
necessary business drivers has not been recognized, defined or understood.

How It Should Be Realized?

How to tackle these pitfalls then? One good solution is to grow the PLM maturity of the
company by creating a comprehensive PLM business concept first and after that start planning for
a PLM project with high objectives. Building the PLM maturity and creating a PLM business
concept helps companies and organizations in understanding the nature and the scale of the
transformation of the practices; it also builds foundation for new management models in the PLM
area and naturally creates the practices and the process for new ways of executing efficient PLM.
I.e. the benefits of the creation of the PLM business concept are twofold: the PLM maturity will
develop during the definition of the concept while the required PLM business decisions are made
and the rules and practices are developed outside an IT-implementation program by proper
resources of the organization. In the following there is a definition of Saaksvuori PLM Maturity
model that defines five stages of PLM maturity.

Based on exhaustive experience regarding PLM implementations I would claim that a

company about to launch a PLM implementation project must be on level 3 (Saaksvuori PLM
maturity scale) before stating a PLM project. This is absolute necessity in order to enable smooth
implementation of PLM practices as well as an IT system supporting PLM. Being on the level 3
assures that all required and vital PLM related business decisions have been made and a smooth
PLM implementation is enabled. In practice this means that the business definitions referred to in
the Saaksvuori PLM concept are made on one way or the other.

1.3 PLM CONCEPT:

The purpose of a PLM concept – product lifecycle management concept - is to describe the
business framework, the drivers, rules, terms and requirements for product life cycle management
in certain context.

The product lifecycle management concept, at its simplest, is a general plan for practical
product lifecycle management in daily business at the corporate level, in a particular business or
product area. It is a compilation of business rules, methods, processes, and guidelines as well as
instructions on how to apply the rules in practice. Usually, the product lifecycle management
concept covers at least the following areas:

 Terms and abbreviations used in this field: (definition of product, product element,
component, item, document, lifecycle, lifecycle phases, etc.)
 Product information models and product models
 Definition of products and product-related information objects:
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  Definition of product information (What is considered as product information?)
 Items (what is an item, how it is identified?
 Product structures (how a structure is build, how it will behave, what are the rules
attached to it?)
 Configuration rules (what are the relationships is a product structure, how will they
behave? etc.)
 Product-related documents (what is a product document, how it is identified? Etc.)
 Product lifecycle management practices and principles used and applied in the company
(how products are managed throughout their lifecycle, identification of information
management principles such as versioning principles, information statuses, etc.)
 Product management related processes
 Product information management processes
 Instructions on how to apply the concept in everyday business

The PLM concept must be created by experts having through understanding of the PLM
best practices and common methods as well as the current practices within the company. The
creation of the concept must be done with the management of the company, simply because there
are number of high level business decisions to make while creating the concept. It should be notes
as well that the concept must be reviewed closely by the organization utilizing the practices
defined in the concept, this is the only way to bind the personnel into executing the practices
defined in the concept.

The significance of building this kind of product information concept lies in the need to set
common business rules for the entire corporation and its business and product areas. A carefully
specified concept makes it possible to achieve synergies between businesses and between
products. A common product information concept allows for the smooth and speedy
implementation of PLM-related processes and practices because the most crucial areas of
information have been agreed at common and conceptual levels.

A good PLM-concept is never static; it keeps evolving in tune with the business and its Requirements.

Definition of PLM:
"Product lifecycle management is the process of managing the entire lifecycle of a product
from its conception, through design and manufacture, to service, and disposal."

OR

"PLM is a systematic concept for the integrated management of all product related
information and processes across the extended enterprise through the entire lifecycle, from
concept and design, to production, distribution, maintenance, and retirement"

PLM integrates people, data, processes, and business systems and provides a product
information backbone for companies and their extended enterprise.

OR

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Product Lifecycle Management PLM is integrated, information driven approach to all aspects
of a product’s life, from its design through manufacture, deployment and maintenance –
culminating in the product’s removal from service and final disposal. By trading product
information for wasted time, energy, and material across the entire organization and into the
supply chain, PLM drives the next generation of lean thinking.

PLM software suites enable accessing, updating, manipulating, and reasoning about
product information that is being produced in a fragmented and distributed environment. Another
definition of PLM is the integration of business system to manage a product’s life cycle.

1.4 PLM LIFECYCLE MODEL:

At the center of the model is an information core. This core representation all the product
data and information about the product throughout the product’s life .The information core is
separate from the function or stages that use it .the product information does not belongs to any
one functional area, but is available to all functional areas. Around the information core are the
functional areas that comprise a product’s life cycle.

Figure shows that representation of the PLM model

Product life cycle management classified into four major functional area they are as
follows:

1.4.1 CONCEIVE: Imagine, specify, plan, innovate

The first stage is the definition of the product requirements based on customer, company,
market and regulatory bodies’ viewpoints. From this specification, the product's major technical
parameters can be defined. In parallel, the initial concept design work is performed defining the
aesthetics of the product together with its main functional aspects. Many different media are used
for these processes, from pencil and paper to clay models to 3D CAID computer-aided industrial
design software.

In some concepts, the investment of resources into research or analysis-of-options may be

included in the conception phase – e.g. bringing the technology to a level of maturity sufficient to
move to the next phase. However, life-cycle engineering is iterative. It is always possible that

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something doesn't work well in any phase enough to back up into a prior phase – perhaps all the
way back to conception or research.

1.4.2 DESIGN: Describe, define, develop, test, analyze and validate

This is where the detailed design and development of the products form starts, progressing
to prototype testing, through pilot release to full product launch. It can also involve redesign and
ramp for improvement to existing products as well as planned obsolescence. The main tool used
for design and development is CAD. This can be simple 2D drawing / drafting or 3D parametric
feature based solid/surface modeling. Such software includes technology such as Hybrid
Modeling, Reverse Engineering, KBE (knowledge-based engineering), NDT (Nondestructive
testing), and Assembly construction.

This step covers many engineering disciplines including: mechanical, electrical, electronic,
software (embedded), and domain-specific, such as architectural, aerospace, automotive, Along
with the actual creation of geometry there is the analysis of the components and product
assemblies. Simulation, validation and optimization tasks are carried out using CAE (computer-
aided engineering) software either integrated in the CAD package or stand-alone. These are
used to perform tasks such as Stress analysis, FEA (finite element analysis);
kinematics; computational fluid dynamics (CFD); and mechanical event simulation (MES). CAQ
(computer-aided quality) is used for tasks such as Dimensional tolerance (engineering) analysis.
Another task performed at this stage is the sourcing of bought out components, possibly with the
aid of procurement system REALIZE: Manufacture, make, build, procure, produce, sell and deliver

Once the design of the product’s components is complete the method of manufacturing is
defined. This includes CAD tasks such as tool design; creation of CNC Machining instructions for
the product’s parts as well as tools to manufacture those parts, using integrated or separate CAM
(computer-aided manufacturing) software. This will also involve analysis tools for process
simulation for operations such as casting, molding, and die press forming. Once the manufacturing
method has been identified CPM comes into play. This involves CAPE (computer- aided production
engineering) or CAP/CAPP – (production planning) tools for carrying out factory, plant and facility
layout and production simulation.

For example: press-line simulation; and industrial ergonomics; as well as tool selection
management.

Once components are manufactured their geometrical form and size can be checked against
the original CAD data with the use of computer-aided inspection equipment and software. Parallel
to the engineering tasks, sales product configuration and marketing documentation work take
place. This could include transferring engineering data (geometry and part list data) to a web
based sales configuration.

1.4.3 SERVICE: Use, operate, maintain, support, sustain, phase-out, retire, recycle and disposal

The final phase of the lifecycle involves managing of in service information. Providing
customers and service engineers with support information for repair and maintenance, as well as

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waste management & recycling information. This involves using tools such as Maintenance, Repair
and Operations Management (MRO) software.

There is an end-of-life to every product. Whether it is disposal or destruction of material

objects or information, this needs to be considered since it may not be free from ramifications.

1.5 THREADS OF PLM:

If we take a close look at PLM, we can discern some of the conceptual and technological
threads that have gone into forming PLM. Much like a fabric woven from threads, PLM is more
than the sum of these threads, and it is how they are woven together that makes PLM such a
powerful enabler for the next wave of productivity. The threads we will examine are:

 Computer Aided Design (CAD)

 Engineering Data Management (EDM)
 Product Data Management (PDM)
 Computer Integrated Manufacturing (CIM)

1.5.1 Computer Aided Design:

CAD is the use of computer programs to create two- or three-dimensional (2D or 3D)
graphical representations of physical objects. CAD software may be specialized for specific
applications. CAD is widely used for computer animation and special effects in movies, advertising,
and other applications where the graphic design itself is the finished product. CAD is also used to
design physical products in a wide range of industries, where the software performs calculations
for determining an optimum shape and size for a variety of product and industrial design
applications.

In product and industrial design, CAD is used mainly for the creation of detailed 3D solid or
surface models, or 2D vector-based drawings of physical components. However, CAD is also used
throughout the engineering process from conceptual design and layout of products, through
strength and dynamic analysis of assemblies, to the definition of manufacturing methods. This
allows an engineer to both interactively and automatically analyze design variants, to find the
optimal design for manufacturing while minimizing the use of physical prototypes.

CAD application are major feats of software engineering.CAD system take a rule of physical
structures, line, vectors, surface, etc. and attempt to mimic them within the memory space of a
computer system. As the richest description of product information, CAD representations are at
the heart of PLM.

While private networks have connected CAD systems for many years, the availability of the
internet over the past decades has made the sharing of the math-base product descriptions
available on a much wider basis, not only within an organization but throughout the supply chain.
As available bandwidths have continued to increase, the using and sharing of this data have
accelerated.

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 The benefits of CAD include lower product development costs, increased productivity,
improved product quality and faster time-to-market.

 Better visualization of the final product, sub-assemblies and constituent parts in a CAD
system speeds the design process.
 CAD software offers greater accuracy, so errors are reduced.
 A CAD system provides easier, more robust documentation of the design, including
geometries and dimensions, bills of materials, etc.
 CAD software offers easy re-use of design data and best practices.

1.5.2 Engineering Data Management:

Engineering Data Management is simply the organizing and control of the information
created to design, sell, manufacture, and maintain a product. And it continues over the entire
lifetime of the product.

The starting with the conceptual design, digital engineering information about a product is
generated by marketers, designers, and engineers. This information is an important asset of the
company, but too often it is simply left on the hard drive of the author, where no one else in the
organization can use it. Usually, there is little or no control over changes or sharing of the data
until the product is released and the information is manually entered into a MRP OR ERP system
and manufacturing information is added. Then any changes in the engineering department have to
be coordinated with the manufacturing information in the MRP OR ERP system.

1.5.3 Product Data Management:

The Product data management is the use of software or other tools to track and control
data related to a particular product. The data tracked usually involves the technical specifications
of the product, specifications for manufacture and development, and the types of materials that
will be required to produce goods.

The use of product data management allows a company to track the various costs
associated with the creation and launch of a product. Product data management is part of product
lifecycle management and configuration management, and is primarily used by engineers. Within
PDM the focus is on managing and tracking the creation, change and archive of all information
related to a product. The information being stored and managed (on one or more file servers) will
include engineering data such as computer-aided design (CAD) models, drawings and their
associated documents.

Product data management (PDM) serves as a central knowledge repository for process and
product history, and promotes integration and data exchange among all business users who
interact with products — including project managers, engineers, sales people, buyers, and quality
assurance teams.

The central database will also manage metadata such as owner of a file and release status
of the components. The package will: control check-in and check-out of the product data to multi-
user; carry out engineering change management and release control on all versions/issues of
components in a product; build and manipulate the product structure bill of materials (BOM) for
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assemblies; and assist in configurations management of product variants. This enables automatic
reports on product costs, etc. Furthermore, PDM enables companies producing complex products
to spread product data into the entire PLM launch-process. This significantly enhances the
effectiveness of the launch process.

PDM Advantages:
 Track and manage all changes to product related data
 Accelerate return on investment with easy setup
 Spend less time organizing and tracking design data
 Improve productivity through reuse of product design data
 Enhance collaboration

1.5.4 Computer Integrated Manufacturing:

CIM is the manufacturing approach of using computers to control the entire production
process. This integration allows individual processes to exchange information with each other and
initiate actions. Through the integration of computers, manufacturing can be faster and less error-
prone, although the main advantage is the ability to create automated manufacturing processes.
Typically CIM relies on closed-loop control processes, based on real-time input from sensors. It is
also known as flexible design and manufacturing.

The term "computer-integrated manufacturing" is both a method of manufacturing and the

name of a computer-automated system in which individual engineering, production, marketing,
and support functions of a manufacturing enterprise are organized. In a CIM system functional
areas such as design, analysis, planning, purchasing, cost accounting, inventory control, and
distribution are linked through the computer with factory floor functions such as materials
handling and management, providing direct control and monitoring of all the operations. As a
method of manufacturing, three components distinguish CIM from other manufacturing
methodologies:

 Means for data storage, retrieval, manipulation and presentation.

 Mechanisms for sensing state and modifying processes.
 Algorithms for uniting the data processing component with the sensor/modification
component.

CIM is an example of the implementation of information and communication technologies

(ICTs) in manufacturing. CIM implies that there are at least two computers exchanging
information, e.g. the controller of an arm robot and a micro-controller of a CNC machine. Some
factors involved when considering a CIM implementation are the production volume, the
experience of the company or personnel to make the integration, the level of the integration into
the product itself and the integration of the production processes. CIM is most useful where a high
level of ICT is used in the company or facility, such as CAD/CAM systems, the availability of
process planning and its data.

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1.6 THE NEED FOR PLM:
There are so many reasons why PLM is needed ,that is difficult to know which are the most
important and as the reasons will be different for companies operating in different industries and
different countries, probably impossible to priorities them.so here a list of very briefly described
reasons.

 Outsourcing has led to long design and supply chains with the results that product
development, manufacturing and supports activities are spread out over different
organizations ,often over different continents ,managing them when they were in one
location was difficult enough, managing them across an extended enterprise in many times
more difficult.
 The functionality of the product goes on increasing, complicating their development and
support.
 Competitive pressure results in less time being available for product development.
 Many companies now offer complete solutions, rather than individual products .This adds
a new layer challenges .solutions are more complex to develop and support than single
products .
 Many more services are offered along with product. Sometimes, it seems as if the services
are more important than the product. Developing and supporting these services may
require additional skills.
 Consumers want customized products – which are much more difficult to develop and
supports than standard products.
 Population trends, such as ageing in Western countries, lead to the need for new types of
product.
 Increased environmental awareness leads to calls for reduced pollution from
manufacturing and logistics.
 The rapid emergence of new technologies provides many opportunities –but also the
difficulties of industrializing them and ensuring their safe use.
 The life time of some product is now so short that development of a future generation has
to starts before the development of the previous generation has been finished.
 Geopolitical developments-such as the appearance of china as a major exporter of the
manufactured goods, India as a leading producer of software and software developers and
Russia as a leading producer of oil and gas- leads to many changes.

1.7 OPPORTUNITIES OF PLM:

 At the beginning of the 21th century there are huge opportunities for manufacturing
companies.
 Globalizations has increased the no of potential customers for their product and services
 The world head count continues to grow by more than 1, 00,000 per day, promising even more
customer in the future.
 Electronics, Biotechnology and Nanotechnology provides the basis for new product.
Nanostructure will be assembled by sticking the atoms and molecules together

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 Designer drugs will be developed to match an individual particular genetic make-up, further
development in computing; the internet, the World Wide Web, the grid mobile telephony and
data base technology will create and meet need that had not been thought of before.
 Wrist top computers and finger ring computers will be common. Intelligent clothes will
changes performance as the weather changes and the wearer’s mood changes.
 Direct brains implants of memory and processing power will increase human performance.
People will have their individual web address.
 Sensor implanted in the body will monitor organ performance. Results will be automatically
transmitted and viewable in real time on personal web sites .Initially; uses will be passive for
example showing heart beats and brain activity.
 Later cyborg behavior will be controlled directly by changing parameters on a web form or
from a mobile device. RFID offers numerous opportunities to get better understanding of the
way product behave over their life cycle.
 Many products will have their own web address, with performance data and feedback being
available online.
 Environmental requirements and the desire for sustainable development will open up new
opportunities, in particular for a product’s end of life. Business models will change, with more
and more services being offered around product. PLM will enable the development and
supports of new products and services

1.8 BENEFITS OF PLM:

To convince people of the need for PLM its usually necessary to explain and quantify, the
benefits for them, this is rarely easy .they may not understand how or why a benefits arises. Often,
a benefits will not occur in that part of the company where the efforts to achieve it is made
sometimes, the benefits will come later in the life cycle, sometimes earlier. Often, another
improvement activity could lead to the same benefits .the same benefits can be expressed in
different terms of time, cost and equality. Often benefits will overlap. To make things even more
complicated, there are different ways to classify benefits and different ways to present them .one
way is to show where PLM can help a company to improve effectiveness, efficiency and control
throughout the entire product life cycle, enabling it for example:

 Develop product faster

 Develop product in an international collaborative development environment
 Manufacture in-house, or outsource manufacture to low cost suppliers
 Deliver the required product at the required time in the required place
 Provide superb support of product use
 Prevent future product failures through knowledge of the past failures
 Provide maintenance information on line ,with up to date documentation and service
bulletins
 Provide better product maintenance and service until the product is eventually recycled
and disposed of in an environmentally –sensitive manner
 Capture customer requirement better
 PLM helps reduce the cost of a product.

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  PLM helps bring better products to market faster, and enables better support of customers'
use of products.
 PLM enables the value of a product to be maximized over its lifecycle.
 PLM provides transparency about what is happening over the product lifecycle.
 Create more innovative ideas
 Improve the sales process, wherever the customer is located.

1.9 PHASES OF PLM:

The product life cycle - period usually consists of five major steps or phases:
1. Product development phase
2. Introduction phase
3. Growth phase
4. Maturity phase
5. Decline phase

These phases exist and are applicable to all products or services from a certain make of
automobile to a multimillion-dollar lithography tool to a one-cent capacitor. These phases can be
split up into smaller ones depending on the product and must be considered when a new product
is to be introduced into a market since they dictate the product’s sales performance.

Product Life Cycle Graph

1.9.1 Product Development Phase:

 Product development phase begins when a company finds and develops a new product
idea.
 This involves translating various pieces of information and incorporating them into a new
product.
 A product is usually undergoing several changes involving a lot of money and time
during development, before it is exposed to target customers via test markets.
 Those products that survive the test market are then introduced into a real marketplace
and the introduction phase of the product begins.
 During the product development phase, sales are zero and revenues are negative. It is the
time of spending with absolute no return.
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1.9.2 Introduction Phase:
The introduction Stage of the product life cycle occurs when a product is first introduced to its
intended target market.

 Sales grow slowly

 Profit is minimal due to large investment costs in product development
 The marketing objective for the company is to create customer awareness and Stimulate
trial.
 Companies often spend heavily on advertising and other promotion tools to build product
awareness.
 Primary demand - the desire for the product class rather than for a specific Brand
 As more competitors introduce their products a firm focuses on creating selective demand,
preference for a specific brand.
 Other marketing mix variables are important at this stage.
 Gaining distribution can be a challenge because channel intermediaries may be hesitant to
carry a new product.
 During introduction pricing can be either high or low. A high price or skimming strategy is
used to help the company recover the costs of development as well as capitalize on the
price insensitivity of early buyers.
 Since high prices tend to attract competitors because they see the opportunity for profit, a
company can price low, referred to penetration pricing, to build unit volume.

1.9.3 Growth Phase:

The growth stage of the product life cycle is characterized by rapid increases in sales and when
competitors appear.

 Profit usually peaks during growth stage because of more competitors and more aggressive
pricing.
 Advertising shifts to stimulating selective demand, in which product benefits are compared
with those of competitor’s offerings to gain market share.
 Product sales grow at an increasing rate because new people try or use the product and a
growing proportion become repeat purchasers - people who tried the product, were
satisfied and bought again.
 Failure to achieve substantial repeat purchasers usually means an early death for a
product.
 It is important to gain as much distribution for the product as possible.

1.9.4 Maturity Phase:

The maturity stage is characterized by a slowing of total industry sales for the product class.

 Weaker competitors begin to leave the market

 Most consumers who would buy the product are either repeat purchasers of the item or
have tried and abandoned it.

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  Sales increase at a decreasing rate as fewer buyers enter the market
 Profits decline because there is fierce competition
 Marketing attention is directed toward holding market share through further product
differentiation and finding new buyers.

1.9.5 Decline Phase:

The decline stage occurs when sales and profits begin to drop due to changes in the marketing
environment.

 Technological innovation often precedes the decline stage as newer technologies replace
older ones.
 Product deletion - dropping a product from the company’s product line
 Harvesting - when a company continues to offer the product but reduces marketing costs.
 When sales begin to drop off, a product or service is considered to be in its decline stage.
 Many competitors have already left the scene.
 It is at this point that the company must decide whether to abandon the product entirely or
modify it to meet new demands in the market.
 Modification would move the product or service to a different stage in the life cycle.

1.10 PLM FEASIBILITY STUDY:

The feasibility study is carried out to find out what type of approach and what level of response is
appropriate for the challenges that the company faces.

 May be an enterprise wide initiative targeting new market leading products and control
over the entire life cycle is needed? In which case it would be useful to develop a PLM
vision, a PLM strategy and a PLM plan
 May be the main benefits can be achieved by implementing new life cycle processes across
several function?
 May be there are benefits to be had by targeting some very precisely defined improvement
areas?

The feasibility study should lead to a report of the form and contents as show in below

Title: feasibility study to develop and assess options for our PLM activity.
Table of contents
1. Executive summary and Recommendations
2. Introduction
2.1 Background to the study
2.2 The PLM activity- ours and theirs
3. The options
3.1 Option A
3.2 Option B
3.3 Option C
4 SWOT analysis
5 Conclusion
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Appendices
A.1 Glossary
A.2 Industry contacts and References

1.11 PLM VISIONING:

1. PLM Awareness Workshops to analyze a company’s processes and assess the need for PLM.
2. PLM Academy that provides training to clients to increase awareness of PLM processes and
products in the Marketplace
3. Making PLM software's to work at faster rates.
4. Visioning to reduce the time of work while accessing the information about the product.

The most important component of the strategic plan is a vision of tomorrow. If there is no
perception of what we think tomorrow will look like, then there really is no need to produce a
strategic plan. Even if our vision of tomorrow is a duplicate of today, meaning that we are simply
continuing status quo, which is a legitimate vision of tomorrow. Our plan then to accomplish
anything new, but maintaining the status quo is not only a legitimate endeavor for us to
undertake, it is an extremely common goal for any number of organization. Vision of tomorrow for
organization almost always includes the organization’s being larger and more profitable. As we
saw from value Map, this translates into increased revenues and lower costs. Because of its impact
across the entire organization, PLM is a logical part of a strategy to increase revenues and lower
costs. PLM decreases costs through lean thinking, trading off information for wasted time, energy,
material. The resources freed up can drive an increase in product variety, quantity, functionality,
and quality.

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