What is PLM?

What exactly is PLM?

Dear folks, we keep hearing about this word PLM from most of the IT companies, looking for people with PLM expertise, looking for people who are working in PLM products like Enovia, TeamCenter, Windchill, etc.

So, let us analyze what is this word PLM really mean, is it a domain? Is it a product? Is it a solution? Is it a tool? or Is it a methodology? Is PLM a new born baby in this decade?

PLM for your Cake Shop

Requirements Gathering:

Let us say that you want to become an entrepreneur from tomorrow. And you want to start a Cake Shop business at a happening place of Bangalore. So, how do you start? First, you make the infrastructure ready and then decide on what kind of cakes people would like, right? You go to the market and analyze what is the current trend in the cake industry, what kind of flavours people like, what are varities of cake that are selling fast. This is what is called as Requirements Phase of PLM.

In the requirements phase, you go to the market and gather the Voice Of the Customer (VOC). The gathered VOCs may not be directly mapping to your product categories. VOCs are general voices or requirements of the customer.

Product Lining:

Now, based on the overall VOCs gathered you need to decide on what are the kind of cakes you are going to sell in your shop. You need to decide on your product categories and their proportions of your total business. Lets assume you have an running capital investment of Rs. 10,000 per week, how do you split this money for making various varities of the cakes that are needed by your targetted customers?

For example, you may decide to produce Birthday Cakes for Rs.2000, Wedding Cakes for Rs.2000, Cartoon Cakes for Rs.1000, Eggless Cakes for Rs. 2000 and Mini Cakes & Pastries for Rs. 3000. Now, this becomes your Product Portfolio.

So, you have five product lines in your cake shop:

      1. Birthday Cakes

      2. Wedding Cakes

      3. Cartoon Cakes

      4. Eggless Cakes

      5. Mini Cakes & Pastries

Once the product lines are finalized, now its time to decide on the Models. How many models of cakes you are going to make under each product line? Models are nothing but varieties. How many varieties of cakes under each  product line you are going to sell in your shop? The more varities (Models) of cakes you display, the more business you get.

Product Design:

Now, its time to decide how are we going to produce these cakes? How are we going to design them first? How do we split our team? It looks like we need a dedicated team only to design the cakes for making them attractive in this competetive cake business, is it not? So, we hire two or three cake designers and give them computers with Photoshop in it..:). Their fulltime job is to generate beautiful cake designs under each Model of every Product Line.

Design Review/Release Process:

Whatever the cake designs produced by the design team must be internally reviewed first and then it has to be reviewed by the Manufacturing (Baking) team, Quality Control team and then the top management (you). At the review process the feedbacks must be captured and incorporated on the design. Once all the design feedbacks are incorporated the Design is Approved and Released for Production. That means the Manufacturing (Baking) team can start making the cakes based on the approved design. The design is ready up to that level.

Bill of Materials

Now lets take one model of the cake and its design. From the design sheet are we able to directly tell what are all the components of it? In other words, what are the components required to make this cake? If you list down the materials required to make that cake, that list is called as "Bill of Materials" or BOM. In engineering industry, it is know as "Engineering Bill of Materials" or EBOM.