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Product lifecycle

A generic lifecycle of products

In industry, product lifecycle management (PLM) is the process of managing the entire lifecycle
of a product from its inception through the engineering, design, and manufacture, as well as the
service and disposal of manufactured products.[1][2] PLM integrates people, data, processes, and
business systems and provides a product information backbone for companies and their extended
enterprises.[3]

History
The inspiration for the burgeoning business process now known as PLM came from American Motors
Corporation (AMC).[4][5] The automaker was looking for a way to speed up its product development
process to compete better against its larger competitors in 1985, according to François Castaing, Vice
President for Product Engineering and Development.[6] AMC focused its R&D efforts on extending
the product lifecycle of its flagship products, particularly Jeeps, because it lacked the "massive
budgets of General Motors, Ford, and foreign competitors."[7] After introducing its compact Jeep
Cherokee (XJ), the vehicle that launched the modern sport utility vehicle (SUV) market, AMC began
development of a new model, that later came out as the Jeep Grand Cherokee. The first part in its
quest for faster product development was computer-aided design (CAD) software system that made
engineers more productive.[6] The second part of this effort was the new communication system that
allowed conflicts to be resolved faster, as well as reducing costly engineering changes because all
drawings and documents were in a central database.[6] The product data management was so effective
that after Chrysler purchased AMC, the system was expanded throughout the enterprise connecting
everyone involved in designing and building products. [6] While an early adopter of PLM technology,
Chrysler was able to become the auto industry's lowest-cost producer, recording development costs
that were half of the industry average by the mid-1990s.[6]

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Forms
PLM systems help organizations cope with the increasing complexity and engineering challenges of
developing new products for the global competitive markets.[8]

Product lifecycle management (PLM) should be distinguished from 'product life-cycle management
(marketing)' (PLCM). PLM describes a product's engineering aspect, from managing its descriptions
and properties through its development and useful life. In contrast, PLCM refers to the commercial
management of a product's life in the business market concerning costs and sales measures.

Product lifecycle management can be considered one of the four cornerstones of a manufacturing
corporation's information technology structure.[9] All companies need to manage communications
and information with their customers (CRM-customer relationship management), their suppliers and
fulfillment (SCM-supply chain management), their resources within the enterprise (ERP-enterprise
resource planning) and their product planning and development (PLM).

One form of PLM is called people-centric PLM. While traditional PLM tools have been deployed only
on or during the release phase, people-centric PLM targets the design phase.

As of 2009, ICT development (EU-funded PROMISE project 2004–2008) has allowed PLM to extend
beyond traditional PLM and integrate sensor data and real-time 'lifecycle event data' into PLM, as
well as allowing this information to be made available to different players in the total lifecycle of an
individual product (closing the information loop). This broader reach has resulted in the extension of
PLM into closed-loop lifecycle management (CL2M).

Benefits
Documented benefits of product lifecycle management include:[10][11]

Reduced time to market

Increase full-price sales
Improved product quality and reliability
Reduced prototyping costs
More accurate and timely requests for quote generation
Ability to quickly identify potential sales opportunities and revenue contributions
Savings through the re-use of original data
A framework for product optimization
Reduced waste
Savings through the complete integration of engineering workflows
Documentation that can assist in proving compliance for RoHS or Title 21 CFR Part 11
Ability to provide contract manufacturers with access to a centralized product record
Seasonal fluctuation management
Improved forecasting to reduce material costs
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Maximize supply chain collaboration

Overview of product lifecycle management

Within PLM there are five primary areas;

1. Systems engineering (SE) is focused on meeting all requirements, primarily meeting customer
needs, and coordinating the systems design process by involving all relevant disciplines. An
important aspect of lifecycle management is a subset within Systems Engineering called
Reliability Engineering.
2. Product and portfolio management2 (PPM) are focused on managing resource allocation, tracking
progress, planning for new product development projects that are in process (or in a holding
status). Portfolio management is a tool that assists management in tracking progress on new
products and making trade-off decisions when allocating scarce resources.
3. Product design (CAx) is the process of creating a new product to be sold by a business to its
customers.
4. Manufacturing process management (MPM) is a collection of technologies and methods used to
define how products are to be manufactured.
5. Product data management (PDM) is focused on capturing and maintaining information on
products and/or services through their development and useful life. Change management is an
important part of PDM/PLM.
Note: While application software is not required for PLM processes, the business complexity and
rate of change requires organizations to execute as rapidly as possible.

Introduction to development process

The core of PLM (product lifecycle management) is the creation and central management of all
product data and the technology used to access this information and knowledge. PLM as a discipline
emerged from tools such as CAD, CAM and PDM, but can be viewed as the integration of these tools
with methods, people and the processes through all stages of a product's life.[12][13] It is not just about
software technology but is also a business strategy.[14]

Product lifecycle management

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For simplicity, the stages described are shown in a traditional sequential engineering workflow. The
exact order of events and tasks will vary according to the product and industry in question but the
main processes are:[15]

Conceive
Specification
Concept design
Design
Detailed design
Validation and analysis (simulation)
Tool design
Realise
Plan manufacturing
Manufacture
Build/Assemble
Test (quality control)
Service
Sell and deliver
Use
Maintain and support
Dispose
The major key point events are:

Order
Idea
Kickoff
Design freeze
Launch
The reality is however more complex, people and departments cannot perform their tasks in isolation
and one activity cannot simply finish, and the next activity start. Design is an iterative process, often
designs need to be modified due to manufacturing constraints or conflicting requirements. Whether a
customer order fits into the timeline depends on the industry type and whether the products are, for
example, built to order, engineered to order, or assembled to order.

Phases of product lifecycle and corresponding

technologies
Many software solutions have been developed to organize and integrate the different phases of a
product's lifecycle. PLM should not be considered as a single software product, but as a collection of
software tools and working methods integrated to address single stages of the lifecycle, connect
different tasks, or manage the whole process. Some software providers cover the whole PLM range,

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while others have a single niche application. Some applications can span many fields of PLM with
different modules within the same data model. An overview of the fields within PLM is covered here.
The simple classifications do not always fit exactly; many areas overlap, and many software products
cover more than one area or do not fit easily into one category.

One of the main goals of PLM is to collect knowledge that can be reused for other projects and to
coordinate the simultaneous concurrent development of many products. It is about business
processes, people, and methods as much as software application solutions. Although PLM is mainly
associated with engineering tasks, it also involves marketing activities such as product portfolio
management (PPM), particularly concerning new product development (NPD). Each industry has
several life-cycle models to consider, but most are relatively similar.

Below is one possible life-cycle model; while it emphasizes hardware-oriented products, similar
phases would describe any form of product or service, including non-technical or software-based
products:[16]

Phase 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 something does not
work well in any phase enough to back up into a prior phase – perhaps back to conception or
research. There are many examples to draw from.

The new product development process phase collects and evaluates market and technical risks by
measuring the KPI and scoring model.

Phase 2: Design

Describe, define, develop, test, analyze and validate

This step is where the detailed design and development of the product's form starts, progressing to
prototype testing, from pilot release to full product launch. It can also involve redesign and ramping
to improve existing products and planned obsolescence.[17] CAD is the primary tool used for design
and development. This can be simple 2D drawing/drafting or 3D parametric feature-based
solid/surface modeling. Such software may include Hybrid Modeling, Reverse Engineering, KBE
(knowledge-based engineering), NDT (Nondestructive testing), and Assembly construction.

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This step covers many engineering disciplines, including mechanical, electrical, electronic, software
(embedded), and domain-specific, such as architectural, aerospace, and automotive. Along with
creating geometry, the components and product assemblies are analyzed. Simulation, validation, and
optimization tasks are carried out using CAE (computer-aided engineering) software, either
integrated into 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 sourcing
bought-out components, possibly with the aid of procurement systems.

Phase 3: 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; including the creation of CNC machining instructions for
the product's parts as well as the creation of specific tools to manufacture those parts, using
integrated or separate CAM (computer-aided manufacturing) software. This will also involve analysis
tools for process simulation of 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 (computer-aided production planning) tools
for carrying out factory, plant and facility layout, and production simulation e.g. press-line
simulation, industrial ergonomics, as well as tool selection management.

After 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 takes place. This
could include transferring engineering data (geometry and part list data) to a web-based sales
configurator and other desktop publishing systems.

Phase 4: Service

Use, operate, maintain, support, sustain, phase-out, retire, recycle and disposal
Another phase of the lifecycle involves managing "in-service" information. This can include providing
customers and service engineers with the support and information required for repair and
maintenance, as well as waste management or recycling. This can involve the use of tools such as
Maintenance, Repair, and Overhaul Management (MRO) software.

An effective service consideration begins during and even prior to product design as an integral part
of product lifecycle management. Service Lifecycle Management (SLM) has critical touchpoints at all
phases of the product lifecycle that must be considered. Connecting and enriching a common digital
thread will provide enhanced visibility across functions, improve data quality, and minimize costly
delays and rework.

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There is an end-of-life to every product. Whether it be the disposal or destruction of material objects
or information, this needs to be carefully considered since it may be legislated and hence not free
from ramifications.

Operational upgrades
During the operational phase, a product owner may discover components and consumables which
have reached their individual end of life and for which there are Diminishing Manufacturing Sources
or Material Shortages (DMSMS), or that the existing product can be enhanced for a wider or emerging
user market easier or at less cost than a full redesign. This modernization approach often extends the
product lifecycle and delays end-of-life disposal.

All phases: product lifecycle

Communicate, manage and collaborate

None of the above phases should be considered as isolated. In reality, a project does not run
sequentially or separated from other product development projects, with information flowing between
different people and systems. A major part of PLM is the coordination and management of product
definition data. This includes managing engineering changes and release status of components;
configuration product variations; document management; planning project resources as well as
timescale and risk assessment.

For these tasks data of a graphical, textual, and meta nature – such as product bills of materials
(BOMs) – needs to be managed. At the engineering departments level, this is the domain of Product
Data Management (PDM) software, or at the corporate level Enterprise Data Management (EDM)
software; such rigid level distinctions may not be consistently used, however, it is typical to see two or
more data management systems within an organization. These systems may also be linked to other
corporate systems such as SCM, CRM, and ERP. Associated with these systems are project
management systems for project/program planning.

This central role is covered by numerous collaborative product development tools that run throughout
the whole lifecycle and across organizations. This requires many technology tools in the areas of
conferencing, data sharing, and data translation. This specialized field is referred to as product
visualization which includes technologies such as DMU (digital mock-up), immersive virtual digital
prototyping (virtual reality), and photo-realistic imaging.

User skills
The broad array of solutions that make up the tools used within a PLM solution-set (e.g., CAD, CAM,
CAx...) were initially used by dedicated practitioners who invested time and effort to gain the required
skills. Designers and engineers produced excellent results with CAD systems, manufacturing
engineers became highly skilled CAM users, while analysts, administrators, and managers fully
mastered their support technologies. However, achieving the full advantages of PLM requires the
participation of many people of various skills from throughout an extended enterprise, each requiring
the ability to access and operate on the inputs and output of other participants.

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Despite the increased ease of use of PLM tools, cross-training all personnel on the entire PLM tool-set
has not proven to be practical. Now, however, advances are being made to address ease of use for all
participants within the PLM arena. One such advance is the availability of "role" specific user
interfaces. Through tailorable user interfaces (UIs), the commands that are presented to users are
appropriate to their function and expertise.

These techniques include:

Concurrent engineering workflow

Industrial design
Bottom–up design
Top–down design
Both-ends-against-the-middle design
Front-loading design workflow
Design in context
Modular design
NPD new product development
DFSS design for Six Sigma
DFMA design for manufacture / assembly
Digital simulation engineering
Requirement-driven design
Specification-managed validation
Configuration management

Concurrent engineering workflow

Concurrent engineering (British English: simultaneous engineering) is a workflow that,
instead of working sequentially through stages, carries out a number of tasks in parallel. For example:
starting tool design as soon as the detailed design has started, and before the detailed designs of the
product are finished; or starting on detailed design solid models before the concept design surfaces
models are complete. Although this does not necessarily reduce the amount of manpower required for
a project, as more changes are required due to incomplete and changing information, it does
drastically reduce lead times and thus time to market.[18]

Feature-based CAD systems have allowed simultaneous work on the 3D solid model and the 2D
drawing by means of two separate files, with the drawing looking at the data in the model; when the
model changes the drawing will associatively update. Some CAD packages also allow associative
copying of geometry between files. This allows, for example, the copying of a part design into the files
used by the tooling designer. The manufacturing engineer can then start work on tools before the final
design freeze; when a design changes size or shape the tool geometry will then update.

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.

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Bottom–up design
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 to which this technology is most suited. 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?"
rather than the focus of top–down which is "What is the most valuable thing to do?"

Top–down design
Top–down design is focused on high-level functional requirements, with relatively less focus on
existing implementation 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 that
does not efficiently fit available components e.g. separately specifying sensing, processing, and
wireless communications elements even though a suitable component that combines these may be
available. 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 the 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 sometimes known as a "control structure". If a single file is used to define
the layout and parameters for the review structure it is often known as a skeleton file.

Defense engineering traditionally develops the product structure from the top down. The system
engineering process[19] prescribes a functional decomposition of requirements and then the physical
allocation of product structure to the functions. This top down approach would normally have lower
levels of the product structure developed from CAD data as a bottom–up structure or design.
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Both-ends-against-the-middle design
Both-ends-against-the-middle (BEATM) design is a design process that endeavors to combine the
best features of top–down design, and bottom–up design into one process. A BEATM design process
flow may begin with an emergent technology that suggests solutions that may have value, or it may
begin with a top–down view of an important problem that needs a solution. In either case, the key
attribute of BEATM design methodology is to immediately focus on both ends of the design process
flow: a top–down view of the solution requirements, and a bottom–up view of the available
technology which may offer the promise of an efficient solution. The BEATM design process proceeds
from both ends in search of an optimum merging somewhere between the top–down requirements,
and bottom–up efficient implementation. In this fashion, BEATM has been shown to genuinely offer
the best of both methodologies. Indeed, some of the best success stories from either top–down or
bottom–up have been successful because of an intuitive, yet unconscious use of the BEATM
methodology. When employed consciously, BEATM offers even more powerful advantages.

Front loading design and workflow

Front loading is taking top–down design to the next stage. The complete control structure and review
structure, as well as downstream data such as drawings, tooling development, and CAM models, are
constructed before the product has been defined or a project kick-off has been authorized. These
assemblies of files constitute a template from which a family of products can be constructed. When
the decision has been made to go with a new product, the parameters of the product are entered into
the template model, and all the associated data is updated. Obviously, predefined associative models
will not be able to predict all possibilities and will require additional work. The main principle is that
a lot of the experimental/investigative work has already been completed. A lot of knowledge is built
into these templates to be reused on new products. This does require additional resources "up front"
but can drastically reduce the time between project kick-off and launch. Such methods do however
require organizational changes, as considerable engineering efforts are moved into "offline"
development departments. It can be seen as an analogy to creating a concept car to test new
technology for future products, but in this case, the work is directly used for the next product
generation.

Design in context
Individual components cannot be constructed in isolation. CAD and CAID models of components are
created within the context of some or all of the other components within the product being developed.
This is achieved using assembly modelling techniques. The geometry of other components can be seen
and referenced within the CAD tool being used. The other referenced components may or may not
have been created using the same CAD tool, with their geometry being translated from other
collaborative product development (CPD) formats. Some assembly checking such as DMU is also
carried out using product visualization software.

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Product and process lifecycle management (PPLM)

Product and process lifecycle management (PPLM) is an alternate genre of PLM in which the process
by which the product is made is just as important as the product itself. Typically, this is the life
sciences and advanced specialty chemicals markets. The process behind the manufacture of a given
compound is a key element of the regulatory filing for a new drug application. As such, PPLM seeks to
manage information around the development of the process in a similar fashion that baseline PLM
talks about managing information around the development of the product.

One variant of PPLM implementations are Process Development Execution Systems (PDES). They
typically implement the whole development cycle of high-tech manufacturing technology
developments, from initial conception, through development, and into manufacture. PDES integrates
people with different backgrounds from potentially different legal entities, data, information and
knowledge, and business processes.

Market size
After the Great Recession, PLM investments from 2010 onwards showed a higher growth rate than
most general IT spending.[20]

Total spending on PLM software and services was estimated in 2020 to be $26 billion a year, with an
estimated compound annual growth rate of 7.2% from 2021 to 2028.[21] This was expected to be
driven by a demand for software solutions for management functions, such as change, cost,
compliance, data, and governance management.[21]

Pyramid of production systems

Pyramid of Production Systems

According to Malakooti (2013),[22] there are five long-term objectives that should be considered in
production systems:

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Cost: Which can be measured in terms of monetary units and usually consists of fixed and
variable costs.
Productivity: Which can be measured in terms of the number of products produced during a
period of time.
Quality: Which can be measured in terms of customer satisfaction levels for example.
Flexibility: Which can be considered the ability of the system to produce a variety of products for
example.
Sustainability: Which can be measured in terms of ecological soundness i.e. biological and
environmental impacts of a production system.
The relation between these five objects can be presented as a pyramid with its tip associated with the
lowest Cost, highest Productivity, highest Quality, most Flexibility, and greatest Sustainability. The
points inside of this pyramid are associated with different combinations of five criteria. The tip of the
pyramid represents an ideal (but likely highly unfeasible) system whereas the base of the pyramid
represents the worst system possible.

See also
Application lifecycle management Life cycle thinking
Building lifecycle management Life-cycle assessment
Cradle-to-cradle design Product data record
Durable good Product management
Hype cycle Sustainable materials management
ISO 10303 – Standard for the Exchange of System lifecycle
Product model data Technology roadmap
Kondratiev wave User-centered design

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Further reading
Bergsjö, Dag (2009). Product Lifecycle Management – Architectural and Organisational
Perspectives (http://publications.lib.chalmers.se/records/fulltext/92570/92570.pdf) (PDF).
Chalmers University of Technology. ISBN 9789173852579.
Grieves, Michael (2005). Product Lifecycle Management: Driving the Next Generation of Lean
Thinking. McGraw-Hill. ISBN 9780071452304.
Saaksvuori, Antti (2008). Product Lifecycle Management. Springer. ISBN 9783540781738.

External links
Media related to Product lifecycle management at Wikimedia Commons

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