This is part 1 of a 5-part series called Turning Data Into Insights. This blog series explores best practices relating to the product lifecycle management approach, and how these best practices will help drive Industry 4.0.
Industrial revolutions mark the convergence of many groundbreaking innovations. They lead to new methods of product development and manufacturing, disruptive technologies, and optimized business processes. The fourth industrial revolution is culminating into what thought leaders refer to as Industry 4.0. Technologies in both the physical and digital worlds are converging most critically in the manufacturing sector, including:
- The Internet of Things (IoT)
- Artificial Intelligence (AI)
- New cloud technologies
- Big data
Even with the right technology in place, a lack of digital culture and skills within an organization may prove to be a significant roadblock for experiencing Industry 4.0 benefits.
With the help of these technologies, organizations have the ability to add real-time product intelligence and proactive approaches to traditionally reactive processes. Industry 4.0 is a movement that will lead to entirely new operating models that will slash development costs, emphasize digital prototyping, and allow for unprecedented product customization (Schwab, 2016).
The Bright Future of Product Development in Manufacturing
Ultimately, Industry 4.0 thought leaders predict that “smart factories” will emerge as a result of this technology convergence. Smart factories will provide organizations in-the-moment insights, allowing for greater collaboration and analysis during product design, manufacturing, and lifecycle management (Burke, 2017). Even with the right technology in place, a lack of digital culture and skills within an organization may prove to be a significant roadblock for experiencing Industry 4.0 benefits.
Many people consider PLM to be a software tool. However, PLM is actually a business approach, defined as a holistic product strategy starting from ideation until end of the lifecycle.
A key component in overcoming this challenge is leveraging the product lifecycle management (PLM) approach. Many people consider PLM to be a software tool. However, PLM is actually a business approach, defined as a holistic product strategy starting from ideation until end of the lifecycle (PLM Technology Guide, 2008).
The PLM approach impacts an entire enterprise. Already, the Industry 4.0 movement is feeding into PLM, affecting how companies are developing and maintaining their products. For example, products and devices share data through IoT to help companies optimize future designs.
A Deep Dive into PLM
Fundamentally, every organization leverages the PLM approach on some level. This philosophy is built on a tangible technology layer, with successive layers becoming more abstract (moving through applications, functionality, and application integration). Oleg Schilovitsky, an expert in PLM, provides a helpful graphic in understanding product management functions in Figure 1 below:
Figure 1. A PLM framework overview, including technological elements and management functions (Schilovitsky 2009)
The diagram presents a general overview of the PLM framework. The horizontal layers at the bottom represent the technological elements, and the vertical layers represent the management functions. These are all placed equally in the diagram to demonstrate their importance and the management cross-communication in a PLM process. That being said, the likelihood of an organization implementing these management functions within a PLM software decreases from left to right. In other words – almost all companies implement “Document Management,” but almost none implement “Sourcing & Supply Chain Management” through their PLM software.
Purdue University’s Product Lifecycle Management Center of Excellence demonstrates the entirety of the PLM approach in Figure 2 below:
Figure 2. The entire PLM software tool (Purdue 2016).
The level of integration greatly varies depending on the organization’s processes and workflows. In fact, many organizations continue to invest in multiple technologies to support the PLM approach despite having a dedicated PLM software tool.
Enterprise PLM Software
Enterprise PLM software allows users to document, track, and organize all elements related to the development of a product, collating various data sources into a central repository. This centralization enables greater awareness and collaboration among licensed users in the PLM platform. The number of vertical management layers integrated in the diagram above into the PLM software depends on the scope of the PLM software integration. To reiterate, the integration often requires customization.
The Path Toward Industry 4.0
Over the next several weeks, I will be exploring the critical importance of PLM and how the approach will help shape and ultimately deliver Industry 4.0 in sweeping strokes. Once companies start leveraging the PLM approach in a more robust way, they will experience significant improvements in their business processes. Throughout this blog series, I will:
- Demonstrate that PLM software provides accessibility and consistency to product information
- Discuss how viewing PLM as simply software holds companies back from Industry 4.0
- Explore the first steps toward smart manufacturing
- Predict what the future will hold for Industry 4.0, smart manufacturing, and PLM
Burke, R., Mussomelli, A., Laaper, S., Hartigan, M., Sniderman, B. (2017, August 31). The smart factory. (L. Collins, Ed.) Retrieved March 5, 2018, from Deloitte. Insights.: https://www2.deloitte.com/insights/us/en/focus/industry-4-0/smart-factory-connected-manufacturing.html
Purdue University, Product Lifecycle Management Center of Excellence. (2016). What is PLM? Retrieved from: https://polytechnic.purdue.edu/product-lifecycle-management/what-plm
PLM Technology Guide. (2008). Retrieved from: http://plmtechnologyguide.com/site/
Schilovitsky, O. (2009). PLM, Non-PLM, PDM… Where is difference? Retrieved from: http://beyondplm.com/2009/08/04/plm-prompt-plm-non-plm-pdm-where-is-difference/
Schwab, K. (2016). The Fourth Industrial Revolution. Geneva: World Economic Forum.