PLM (product lifecycle management) has become a major business imperative, offering the opportunity for significant improvements in the way companies do business in the electronic age. Now that ERP (enterprise resource planning) systems have been implemented on an operational and financial level, companies are seeking to extract the business value their significant investments promised. In many instances the key to extracting this value lies in a high level, strategic focus on PLM.

ERP systems have the ability to share data across multiple applications and functions. But, in many cases this ability has not been fully utilised by companies that have been concerned in the first instance with implementation around core financial and operational areas of focus.

Now that the first instance of implementation has been achieved, the need arises to utilise the true 'information power' of ERP systems, through PLM.

What is PLM?

PLM is the management of product data, drawn from disparate sources and applications, through its entire lifecycle. Thus, whether PLM is understood by a company or not, is a definitely a facet of every business.

If simply carried out by a variety of disparate systems or applications, PLM will require high levels of manual input, or will require a multitude of interfaces, designed for the express purpose of cross platform and application communication. In either instance, cost becomes a major factor, both through the inevitable presence of human error and the need for continual system maintenance.

The presence of the ERP system, however, provides a mechanism through which this sharing of data across applications can be achieved at low cost, with a high degree of efficiency. In practice, however, many companies have not yet discovered how to unlock the dormant information management modules within their ERP system that will allow this to happen.

Documents: The heart of PLM

Lifecycle data management lies at the heart of PLM. Here data is managed, from creation to eventual destruction. A core requirement of lifecycle data management is strategically driven document management. Document management is, in turn, the crux of PLM. Without controlled and well-planned management of all company information, which resides within documents, effective, 'value-driven' PLM is not possible. It is very important to note that document management requires a strategic focus on the use and management of the information contained within documents, and not simply of the documents themselves.

Through the ERP system, descriptions of pumps, vessels and component parts in an industrial plant, for instance, can be directly linked to objects in the ERP system. In this way, the automated creation and management of Bills of Materials (BOMs) becomes possible, without any need for manual intervention. Critically, objects can be controlled within the ERP system throughout their lifecycles, while the lifecycle of the product or plant takes its rightful place as a strategic imperative that drives the management and use of all other information.

One information source

Other critical aspects of PLM (including program management, change and configuration management and lifecycle collaboration) combine with lifecycle data management to form the conceptual foundation of PLM; namely a single, protected source for company information, in the form of a comprehensive document management system that is fully integrated into the ERP system.

Information may be viewed by different parties in different ways (management looks at overviews and detail roll ups, while finance looks at costs and expenditure), but the critical point is that everyone is looking at the same data, contained with a single repository.

The benefit of a company using one source of information cannot be over-estimated. It is here that the true collaborative value can be extracted from PLM. Such a single source of information flow increases productivity and efficiency through tightly controlled product and process lifecycles, and lowers costs significantly through error reductions and vastly streamlined administration processes. It also provides new opportunities for effective information collaboration with business partners and clients.

Making it all work

There are two key factors in moving from being a company that uses the ERP system in its basic form, to one that harnesses full value from ERP's ability to drive effective PLM.

* You need an expert

Unlocking dormant PLM and document management ERP modules is not simply a matter of flicking the 'on' switch. In order for effective PLM to become a reality, specialists are needed to help you manage the integration of PLM systems and procedures with the other operations of the company. This is not a simple process, given the volume of data moving through most companies on a daily basis. Specialised strategic planning is a 'must have' if PLM is going to have a positive, cost reducing impact on a business.

* Step by step

Given the immense complexity of implementing a PLM strategy that will integrate across the entire company, it is critical to break a long term PLM plan down into manageable projects with clear objectives that can be achieved within a six month time frame. Each project should obey the dictates of the long term strategy, but should also stand alone in its own right - and be quantifiable in terms of short term deliverables. In this way, the larger PLM plan can become a reality, and not a white elephant project destined to frustrate all concerned and cost a lot of money.

Conclusion

Extracting additional value from ERP systems is the next challenge facing business. Well considered, modular approaches to PLM and all of its component parts, most critically document management, will see potential turned into reality. Conversely, shooting for the moon with a major PLM project that is not backed by the experience of experts is destined to end in costly tears.

For more information on DMS contact Rob Cells, Engineering Informatics, 011 791 1028, rob@ei.co.za, www.ei.co.za

About Engineering Informatics

EI is a specialist company, focused exclusively on the implementation of the SAP enterprise document and record management system (DMS) and related functionality.

EI is the premier SAP Africa Specialist Partner specifically certified to implement and maintain the SAP lifecycle data management (LCDM) functionality in South Africa. This means EI is recognised by SAP as having a significant track record in successfully implementing SAP LCDM solutions for industrial customers. EI has implemented more than 90% of all SAP DMS installations in South Africa during the past five years.