Introductory Chapter: Product Lifecycle Management - Terminology

Abstract

The enterprise business information technology (IT) domains include four main management approaches [1, 2]: product lifecycle management (PLM), enterprise resource planning (ERP), customer relationship management (CRM), and supply chain management (SCM). The ERP goal is achieving the best enterprise resource utilization. This system enables companies to plan their manufacturing processes and control all aspects of manufacturing including inventory, purchasing, process planning, warehousing and delivery, human resources, finance, etc. SCM system is focused on the supply chain, having the main goals the design, planning, execution, control, and monitoring of all aspects related to storage and distribution. Customer relationship management (CRM) is an approach to manage a company’s interaction with current and potential customers [3]. PLM is a business strategy for managing the entire life cycle of products. This strategy includes the management of conception, design, design validation and simulation, prototyping, manufacturing, quality control, use, maintenance, and disposal of products, having integrated people, methods, CAx (computer-aided technologies) tools, processes, documentation, and data management solutions. PLM is a digital paradigm, products being managed with digital computers, digital information, and digital communication [4]. The main benefits of a PLM system implementation in companies are faster time to market, improved productivity and collaboration, better product quality, decreased cost of new product introduction, reduced prototyping costs, improved design review and approval processes, identify potential sale opportunities and revenue contributions, maximize supply chain collaboration, and reduce environmental impacts at the end of product life.