Next Generation Plm - an Integrated Approach for the Product Lifecycle

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Proceedings of ICCPR2007:
International Conference on
Comprehensive Product Realization 2007
June 18-20, 2007, Beijing, China
Next Generation PLM - an integrated approach for the Product Lifecycle Management
Julius D. Golovatchev
Oliver Budde
1) Detecon International GmbH, Managing Consultant for Enterprise Effectiveness & PLM, Bonn, Germany 2) Research Institute for Operations Management at RWTH Aachen University, Germany Abstract: Consistent definition, categorization and

operation of products (e.g. extended products, bundles,
etc) delivered to global markets and customized for
different buyer segments is one of the major challenges
for the Lifecycle Management. Each lifecycle
encompasses the processes, information, support systems
and people involved in delivering the related business
functions. It can be argued that process supporting
technologies/solutions like WFMS, PDM-System etc
exist today for the creation of a seamless environment for
accessing, manipulating and reasoning about product
information that is being produced in fragmented and
distributed environment. A holistic approach that is
suitable for aligning the Product Lifecycle Management
(PLM) business requirements (like process flexibility,
shorter time to market etc) to the potentials of new
technology driven concepts in the information
management like SOA is nevertheless still missing. The
authors give reasons why the holistic view on the product
lifecycle management as well as the link between an
inter-company wide information management is critical
for an efficient PLM and present an integrated approach
taking these aspects into account. In this paper four
building blocks of Next Generation PLM are introduced.
The PLM Meta Model makes up the first building block.
It defines the constraints and rules for decomposing the
product functionality into meaningful modules. The PLM
IT-Architecture represents the second part and describes
the IT-components and their interrelation utilized for the
purpose of PLM. A PLM-Process methodology as a basis
for describing the relevant activities is attached in the
third building block. The final building block is
constituted by the Lifecycle Value Management concept
for steering the PLM- process on a strategic level like,
among other things, by considering portfolio effects. The
paper closes with the presentation of a short case study
validating the proposed concept for a company in the
service industry.
Keywords: PLM, product lifecycle management, extended
product, integrative approach, lifecycle value management
1. Motivation
As Shark (2004) postulates, Product Lifecycle
Management (PLM) is the activity of managing a
company’s products across the complete lifecycle, from
the early stages of conception to the final disposal or
recycling of a product. From this definition, a strong
interrelation between the value creation process and the
PLM of the company can be deduced. Taking the current
globally changing business environment into account the
PLM can be considered as a strategic weapon for enabling
the company to provide an additional value to customers
and thereby gain a competitive advantage over their
competitors. Especially in the telecommunication
industry, which experienced a significant change in its
environment during the last five years, PLM is considered
to be essential for facing ever shorter innovation cycles
(Wöhler-Moorhoff et al., 2004).
In the following two sections, we introduce the main
business drivers, which currently have the most impact on
a company’s business model and are expected to do so in
future. For each business driver specific PLM-relevant
challenges can be derived. These challenges will be
pointed out in detail in the last section of this chapter and will serve as motivation for our integrated PLM- approach
in chapter 2. The validation of this approach is the goal of chapter 3 by introducing a case study.
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