White Paper

Part 2: Defining PLM – Critical “must have” capabilities

THE KEY CAPABILITIES OF A PRODUCT LIFECYCLE MANAGEMENT NEEDED FOR A BEST-IN-CLASS SOLUTION

Abstract

Over the past ten years, more and more discrete manufacturers have deployed
Product Lifecycle Management (PLM) solutions to optimize product development
and enhance bottom-line performance. Paradoxically, however, there is still wide-
spread confusion and disagreement concerning the essential capabilities and func-
tionality of PLM. Ultimately, PLM’s potential as a game-changing technology will
never be fully realized until a single, comprehensive definition of PLM is formu-
lated and universally accepted. The fact is, manufacturers will be able to experi-
ence the complete range of PLM’s benefits – and choose the best PLM solution –
only when they fully and implicitly understand what PLM is, and what it can (and
should) do for them.

In this second of a three-part series of papers, PTC provides a definition of the

seven “must-have” capability components of PLM and the related benefits that can
be achieved by implementing them.

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The seven “must-have” capabilities of PLM

Although the definition of PLM may still be somewhat murky pected results. Any PLM software that lacks even one of these
ten years after the term was first coined, today there’s no capabilities should immediately be questioned as a viable
doubt about the exact components that make up a successful alternative. The table that follows identifies the seven “must-
PLM solution. Without exception, there are seven capabilities have” capabilities as well as the “extended-capability” compo-
that are mandatory if a PLM implementation is to deliver ex- nents covered in more detail in part three paper of this series.

PLM SOLUTION CAPABILITIES Must-have capability Extended capability

Document Management •
Embedded Visualization •
Workflow •
Distributed Collaboration •
Multi-CAD data management •
Complete BOM management (i.e., combined MCAD,
ECAD software content in a single product structure) •
Change and Configuration Management •
Manufacturing Process Management (MPM) •
Requirements Management •
Program Portfolio Management (PPM) •
Quality Lifecycle Management (QLM) •
Product Analytics •
Component and Supplier Management (CSM) •
Service Information •
Communities of Practice •
Table 1. Each of the seven highlighted “must-have” capabilities will be discussed
in more detail in this paper.

A note on definition “validation”

The PLM market is currently in a state of transition – one in which the capabilities and characteristics
considered essential in a PLM solution are being reevaluated, yielding some results that are already
apparent. For example, two major PLM vendors – recognizing the importance of database consolida-
tion and a single architecture platform – are evolving their offerings accordingly. Developments like
these seemingly serve as third-party validation of PTC’s PLM definition.

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PLM capability #1: Document Management this happen, PLM solutions must provide generous visualiza-
tion capabilities that enable collaboration on a multitude of
Information is the lifeblood of manufacturing. Internal and centrally organized product information types (e.g., CAD files,
external stakeholders rely on accurate information to achieve PDFs, and MS Office® documents) across both mechanical
everything from design integrity and regulatory compliance to and electrical disciplines.
global product availability and sustained customer satisfaction.
As such, effective Document Management – including the abil- Embedded Visualization capabilities must allow all stakehold-
ity to manage complex information relationships, track data ers to easily access digital product content – without requiring
changes, and ensure documentation quality – is critical. the native authoring application. An underlying, web-based,
scalable environment must support a range of customer
As a “must-have” PLM component, Document Management needs, spanning simple desktop viewing of single CAD mod-
provides the capabilities to store, track, control, and share els to interactive evaluation of massive digital mockups. In ad-
information – whether represented as drawings, graphics, or dition, visualization capabilities must enable stakeholders to
text – and deliver it as final documentation in any format, such mark up the content and collaborate on it in real time, as well
as downloadable designs and manufacturing specifications, as accurately measure, section and compare 3D models, and
printed product guides, web-based training manuals, and in- assemble parts and complex product structures.
teractive service information.
By sharing visual information throughout the enterprise and
Document Management technology within a PLM solution en- leveraging it in these ways, stakeholders can gain insights that
ables stakeholders to: foster earlier, more effective decision-making – for improved
organizational productivity and reduced process cycle times.
• Quickly and easily search/retrieve critical, up-to-date
product information electronically via a centrally located A comprehensive PLM solution must include embedded visual-
data repository; by applying multiple taxonomies or ization software capabilities that allow you to:
categorizations, information can be stored in a single
instance and referenced in a multitude of ways • Provide product information-access to all team members –
in an accurate, high-performance, ultra-scalable format
• Achieve better control of document distribution;
information-profiling enables automatic notification when • View a myriad of product data (e.g., MCAD/ECAD files,
desired information is located, and provides access to PDF documents) without requiring the viewer to install the
authorized users only native authoring application that created the data

• Improve security and disaster-recovery operations; • Accurately measure, section, and compare 3D models,
central-system storage with backup and archiving and assemble parts and complex product structures
functionality protects information from inappropriate user
access or disaster-induced damage • Create and deploy interactive assembly and disassembly
sequences
• Enhance regulatory compliance; security controls, audit
trails, archiving functionality, and disaster-recovery • Create and deploy interactive animations, perform
operations ensure that the authenticity of stored rapid interface-checking, create kinematic mechanisms,
information can be verified and validated to meet compute motion envelopes, and output movies
government- and industry-based requirements
• Methodically step through changes made either between
PLM capability #2: Embedded Visualization ECAD designs or across ECAD and MCAD designs

Effective management and evolution of a product’s BOM • Conduct real-time design collaboration, analysis and
throughout its lifecycle requires that design-related content al- simulation, regardless of location
ways be readily accessible. Since cost and time-to-market are
• Improve productivity and reduce cycle time by allowing
largely determined relatively early in the product development
users – across the enterprise – to share visual information,
process, it’s vital that digital product representations and data
gain insight, and make better decisions faster
be reviewed and approved by all stakeholders before com-
mitting to prototype development or manufacturing. To make

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PLM capability #3: Workflow PLM capability #4: Distributed Collaboration

According to the Workflow Management Coalition (WfMC), If you’re like many of today’s manufacturers, not only are your
workflow, by definition, is the computerized facilitation or customers and competitors located worldwide, but so, too, are
automation of a business process in whole or in part. Used your employees, suppliers, contractors and partners. While
to manage both manual and automated tasks – as well as to the emergence of such widely dispersed product stakeholders
drive and maintain content through its lifecycle – workflow sys- naturally raises a host of communication- and process-related
tems determine and prescribe who does what task and when. concerns, the phenomenon, in fact, creates far more opportu-
nities than challenges.
With a tightly managed workflow, organizations can experi-
ence: For instance, by successfully executing a Global Product De-
velopment (GPD) strategy – the foundation of which is Dis-
• Increased productivity and reduced time-to-market, by tributed Collaboration – manufacturers are able to accelerate
incorporating standardized work practices – a prerequisite time-to-market, while reducing product development costs,
to process automation – and minimizing efforts associated enhancing product quality, driving innovation, easing entry
with work distribution into new markets, and streamlining business operations.

• Decreased costs, by eliminating routing expenses; by Accordingly, the ideal PLM software will enable geographically
optimizing workload distribution among resources; by distributed individuals and groups to work collaboratively on
minimizing the need for management supervision; and by the same products and product development processes. Such
reducing the demands on project leaders distributed collaboration must include the capabilities to:

• Improved quality, by ensuring all required task-related • Enable concurrent work on separate design elements and
steps are taken; by eliminating “rush project” orientation synchronize those collective efforts through appropriate
and practices that compromise product integrity; and product architecting
by incorporating process monitoring for closed-loop
feedback that captures metrics, identifies bottlenecks, and • Ensure that information flows smoothly to all design
fixes problems stakeholders through a seamless, integrated data-sharing
source
As a mandatory component of a complete PLM software solu-
tion, workflow technology provides a web-based automation • Ensure that the security of proprietary information is
platform that helps manufacturers to: preserved through intellectual property (IP) protection
controls
• Optimize task assignment and delegation in ways
conducive to product excellence and streamlined task • Improve visibility into program status through standardiza-
completion tion of program management processes and establish-
ment of key performance metrics
• Minimize labor-related inefficiencies, and eliminate
errors by synchronizing the commencement of tasks with • Ensure all changes are shared expeditiously with affected
workflow status, such as conducting the final review of a stakeholders through a standardized, automated change
service manual only when “triggered” to do so by a part process
release “event”
• Enable fast, global access to the most current product
• Manage changes to existing content and publish updates data through a distributed server network
that incorporate those changes
PLM capability #5: Multi-CAD data management
• Automate evaluation and commercialization of new ideas
The ultimate goal of product development is to manage all
• Ensure compliance with approval processes and quality- CAD data, so the design team can generate a single, accurate
control standards product definition – a single source of truth – that can be con-
fidently released to manufacturing. However, today’s product
• Automate both publishing of content and its routing to all
relevant decision-makers for review and approval

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development environments often involve multiple CAD appli- To deliver maximum benefit in a multi-CAD environment, PLM
cations, spanning both electrical and mechanical design dis- software should, from a single system, enable:
cipline tools. This multi-CAD phenomenon is due to a variety
of factors, such as design outsourcing, companies acquiring • A complete digital product definition to be developed
legacy CAD systems through mergers and acquisitions, or de- using multiple CAD systems
signers insisting on maintaining preferred tools for specific el-
• Easy search, retrieval, assembly and delivery of
ements of a product structure (e.g., one preferred design tool
heterogeneous data to design teams throughout the
for an automotive chassis and a different preferred tool for
lifecycle
the power train assembly).
• Engineers to collaborate seamlessly with familiar
“Otis needed a PLM system that would give all development tools, using the correct version of data to
our product stakeholders the ability to access, accelerate the overall product definition
work on and share the most updated informa-
• Secure, scalable, collaborative visualization of multi-CAD
tion on our extensive product lines. Windchill product data for continuous feedback to enable efficient
provides the flexibility and broad capabilities we design review preparation, execution and follow up
need to manage heterogeneous CAD data, im-
• Dynamic access to – as well as reuse and synchronization
prove concurrent engineering worldwide, and
of – cross-discipline design data across CAD systems to
streamline data delivery to our manufacturing efficiently and accurately advance the overall design
sites in a global development environment.”
• Automated synchronization across MCAD systems, so
– Tom Saxe, Vice President Worldwide Engineering,
source information in one CAD system can be easily
Otis Elevator Company
reused in another
Managing such multi-CAD environments can be difficult – par-
• A data management and collaboration environment for
ticularly when distributed work groups are designing complex
the exchange of incremental design changes between
products. What’s more, attempting to resolve these challeng-
electrical and mechanical domains
es, using methods like manual synchronization of disparate
CAD applications, often adversely affects data integrity and PLM capability #6: complete BOM management
cycle times.
Products being manufactured today incorporate more ad-
To prevent such occurrences, PLM solutions must provide ca- vanced electronics and software technology – in more complex
pabilities for easy Multi-CAD Data Management. Ideally, man- and smaller mechanical packages – than ever before. Conse-
ufacturers need a unified database framework for accessing, quently, facilitating electromechanical product development
loading and designing with heterogeneous CAD content, so requires that manufacturers successfully manage and inte-
dependent relationships can be accurately managed in the grate their electrical, mechanical and software design devel-
evolution of an integrated BOM. This framework would also opment data and teams – an environment known in certain
facilitate synchronization of ongoing design changes across industries as mechatronics.
varying CAD systems – thereby maximizing a manufacturer’s
investment in disparate or legacy CAD tools. In its most ef- This process can be a complex undertaking, however, as more
ficient form, a multi-CAD data environment would enable de- and more manufacturers are now managing geographically
signers to identify and use components from one CAD tool to dispersed team members working across different languages
provide contextual design in another CAD tool. and cultures and using a myriad of tools and applications.
What’s more, traditional technologies do not facilitate effec-
In short, heterogeneous CAD data management can ensure tive collaboration across the electrical and mechanical en-
high-quality, single-product definitions, faster collaborative gineering silos. Failure to resolve these issues can result in a
development, and fewer data management errors. host of difficult issues, including lengthy review cycles, ram-
pant miscommunication, productivity-sapping rework, delayed
product launches, and expensive product recalls.

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To be capable of combining ECAD, MCAD and software do- PLM capability #7: Change and Configuration
mains in a single product structure – as well as synchronizing Management
the concurrent development of the associated designs, so that
there is successful management and evolution of the entire Just as change is inevitable in the product development pro-
product definition (i.e., the product’s BOM) across all disci- cess – whether driven by evolving customer requirements, new
plines, manufacturers require Complete BOM Management market opportunities, technological innovation, cost-saving
capabilities. PLM software, therefore, must have all these ca- measures, or updated compliance regulations – so, too, is the
pabilities in order to improve electromechanical design re- need to manage it. Given the serious consequences of poor
use, identify potential problems early, minimize downstream change management practices, including everything from sky-
changes, reduce product costs, enhance product quality, and rocketing redesign costs to impaired product quality – as well
accelerate time-to-market. as such sobering analyst observations as “An efficient change
process can cut up to 33% off of the typical product develop-
“Rather than being dependent on the PCB de- ment cycle time”5 – the vital importance of change and config-
uration management is readily apparent.
signers to locate components and nets, electri-
cal engineers and others can now easily find any The goal of Change and Configuration Management is to
item. This means that they can complete much provide a well-defined, orderly process that controls how in-
of the review process on their own, leaving the formal and formal changes to product configurations are
proposed, analyzed, planned, implemented and released. By
more critical and complicated jobs for the review
ensuring that changes are effectively communicated, tracked
meeting. The time required for review of a new and documented from product conception through retire-
layout has been reduced from several days to a ment – and thereby enabling stakeholders to instantly access
few hours.” all necessary data and assess impacts of proposed changes –
such a process minimizes repetition of mistakes, synchroniz-
– Kathleen Walsh, Powertrain Core Electronics Design,
es engineering and manufacturing BOMs, and coordinates
Visteon Corp.
multi-disciplinary content. Ultimately, typical benefits include
greater “purity” of product definitions, improved decision-
As a critical component of PLM software, complete BOM man-
making, heightened innovation, and significantly enhanced
agement helps manufacturing organizations:
productivity.
• Streamline electromechanical design collaboration pro-
cesses, thus reducing time-to-market and decreasing cost “An efficient change process can cut up to 33% of
the typical product development cycle time.“4
• Give mechanical engineers better insight into the potential
impact of changes on electrical designs and software It’s imperative that your PLM software provides change and
code – before the changes are proposed configuration management capabilities that enable manufac-
turers to:
• Track and manage what versions of the software are
associated with what versions of the product • Capture digital data content in a single, secure
environment – in effect, creating a “single source of
• Provide a consistent communication methodology of truth” for all product information – so that any updates,
changes across disciplines – enabling mechanical, elec- upgrades, or milestones in a product’s configuration (i.e.,
trical and software engineers to communicate more any evolution of the complete product definition) can be
frequently, with less disruption systematically managed and traced over time
• Save cycle time by enabling concurrent development of • Structure a standardized, repeatable and automated
the mBOM while the eBOM is being developed in the process that facilitates rapid and accurate communication
design phase of changes – regardless of their level of complexity
• Enhance traceability of the design IP and software
configuration for knowledge capture and reuse

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• Make evolving product configurations and data For more on the definitions and benefits of the capabilities
seamlessly accessible to internal stakeholders across all that make up a complete PLM solution, we invite you to read:
disciplines, so that changes can be tightly synchronized
and accurately captured in an integrated BOM, for rapid Part 1: Defining PLM–Executive overview and
dissemination throughout the enterprise Part 3: Defining PLM–Extended capabilities

• Engage external parties, including suppliers, partners Visit PTC.com/solutions/product-lifecycle-management to

and customers, such that they can interact with updated learn more about the promise of PLM.
product information – and seamlessly communicate © 2010, Parametric Technology Corporation (PTC). All rights reserved. Information described
changes – in strict accordance with accessibility herein is furnished for informational use only and is subject to change without notice. The
parameters dictated by the level of their relationship (e.g., only warranties for PTC products and services are set forth in the express warranty statements
accompanying such products and services and nothing herein should be construed as con-
a strategic partner versus a one-time parts supplier) stituting an additional warranty. References to customer successes are based upon a single
user experience and such customer’s testimonial. Analyst or other forward-looking statements
• Tightly align manufacturing process planning with about PTC products and services or the markets in which PTC participates are those of the
engineering design changes, for earlier involvement – and analysts themselves and PTC makes no representations as to the basis or accuracy thereof.
PTC, the PTC Logo, Creo, Elements/Direct, Elements/Pro, Elements/View, Unlock Potential,
greater integration – of manufacturing stakeholders in the Think. Create. Believe. and all PTC product names and logos are trademarks or registered
change process, as well as more synchronized eBOM / trademarks of PTC and/or its subsidiaries in the United States and in other countries. All other
mBOM development product or company names are property of their respective owners. The timing of any prod-
uct release, including any features or functionality, is subject to change at PTC’s discretion.

Conclusion 5896B-Defining PLM: Part 2-WP-EN-1110

To date, PLM has delivered significant inroads in the discrete

manufacturing industry. Numerous manufacturers have al-
ready experienced some of the ways PLM can enhance prod-
uct development processes – and scores of others are seeking
a better appreciation of the technology to discover how they,
too, can benefit.

However, if manufacturers are to tap the full potential of PLM,

they first need to explicitly understand its value proposition. Af-
ter all, manufacturers can’t know what to expect – and what to
demand – from PLM unless they know what’s possible.

This paper is part two of a three-part series where we explore

PLM. In this paper we sought to provide insight and a clear
explanation of the seven critical capabilities that are required
within best-in-class PLM software. Armed with this knowledge,
manufacturers will be better prepared to make purchase deci-
sions that maximize their returns on PLM investments, increase
their process efficiencies, and ultimately enhance their bot-
tom-line results.

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