In today’s increasingly digital and interconnected manufacturing environment, understanding the relationship and differences between ERP, MRP, and PLM systems is critical. Companies that rely on modern product development and supply chain management must know how these systems fit together to drive innovation, efficiency, and profitability.
This blog explores what ERP / MRP / PLM systems are, how they differ, and why integration between them is essential for business success.
What is ERP (Enterprise Resource Planning)?
ERP stands for Enterprise Resource Planning. It is a business management software that helps organizations automate and integrate core business processes. ERP systems typically handle a wide range of business functions, including finance, human resources, procurement, inventory, order management, and manufacturing execution.
ERP software acts as a centralized system where data flows across departments, allowing for real-time visibility into operations and enabling better decision-making. A well-implemented ERP system improves productivity, reduces costs, and ensures better compliance across departments.
Key ERP functions include:
- Financial management and reporting
- Supply chain and logistics management
- Human resources management
- Order fulfillment and production scheduling
- Procurement and inventory control
What is MRP (Material Requirements Planning)?
MRP, or Material Requirements Planning, is a subsystem often found within ERP platforms. It focuses on production planning, scheduling, and inventory control. MRP ensures that the right materials are available at the right time to support production without overstocking or understocking.
Originally developed as a standalone system, MRP has evolved into MRP II (Manufacturing Resource Planning), which includes broader manufacturing processes like capacity planning and shop floor control. Today, MRP is generally integrated within ERP platforms to offer a comprehensive solution for manufacturing management.
Core functions of MRP systems:
- Inventory management and materials tracking
- Production scheduling and planning
- Demand forecasting
- Order management for raw materials
What is PLM (Product Lifecycle Management)?
PLM stands for Product Lifecycle Management. Unlike ERP and MRP, which are focused on executing and managing business operations and manufacturing, PLM is centered on innovation, product development, and the lifecycle of a product from concept through end-of-life.
PLM system software manages everything related to the product record: engineering data, design documents, CAD models, BOMs (Bills of Materials), change orders, and product configurations. It enables design teams, engineers, and product managers to collaborate efficiently across the entire development lifecycle.
Key PLM capabilities include:
- Centralized management of product data
- Version control and engineering change management
- BOM creation and synchronization
- Collaboration tools for cross-functional teams
- Compliance and quality assurance documentation
ERP vs. PLM: What’s the Difference?
Many companies search for “ERP vs PLM” or ask, “What’s the difference between ERP and PLM?” These systems serve distinct but complementary purposes.
ERP is about executing business processes: ordering materials, producing goods, shipping products, and managing financials. PLM, on the other hand, is about developing the right product: designing it correctly, managing revisions, and collaborating across teams.
Think of PLM as managing the recipe and ERP as executing it. PLM system software creates and maintains the product definition, while ERP uses that information to manufacture and deliver the product.
| Functionality | ERP | PLM |
| Focus | Business execution | Production innovation |
| Primary Users | Operations, finance, logistics | Engineering, R&D, Product Dev |
| Data Managed | Financials, orders, inventory | CAD files, BOMs, Product Data |
| Lifecycle Stage | Production through shipment | Concept through design |
ERP vs. MRP: Understanding the Relationship
MRP is not a competitor to ERP or PLM; rather, it’s a foundational component within many ERP systems. MRP handles the materials and scheduling side of manufacturing, ensuring production has what it needs, when it needs it. ERP uses MRP outputs to coordinate operations and resources across the entire business.
While ERP covers broader business management, MRP narrows in on ensuring supply meets demand efficiently. In other words, MRP supports the production plan, and ERP supports the entire organizational plan.
ERP / MRP / PLM: How They Work Together
When integrated properly, ERP, MRP, and PLM systems create a powerful digital ecosystem. PLM manages the ideation and design process, MRP ensures material and production readiness, and ERP orchestrates the delivery, resource allocation, and financials.
This integration leads to better data accuracy, smoother handoffs between departments, and shorter time-to-market. With a digital thread connecting all systems, companies can eliminate silos, reduce manual errors, and respond faster to market demands.
Benefits of Integration:
- Real-time synchronization of product changes across departments
- Streamlined collaboration between engineering, production, and procurement
- Greater visibility into product costs and timelines
- Easier compliance with industry standards and audits
- Improved change accuracy
- Faster production updates
- Reduced engineering-to-manufacturing delays
- Better compliance documentation
What is PLM ERP Integration and why does it matter?
While PLM and ERP serve different purposes, their true value is realized when they work together. PLM ERP integration connects product definition data with operational execution systems, ensuring that engineering decisions flow seamlessly into manufacturing and business processes.
At a high level:
- PLM manages product definition and change. It governs engineering data, bills of materials (BOMs), specifications, revisions, and change processes across the product lifecycle.
- ERP manages production execution and financials. It controls procurement, inventory, production planning, order management, and cost tracking.
When these systems operate in isolation, organizations often face data silos, manual re-entry of information, and inconsistencies between engineering and manufacturing. PLM ERP integration eliminates those gaps.
Choosing the Right Systems for Your Business
Selecting ERP, MRP, and PLM solutions should be based on your company’s size, industry, product complexity, and operational needs. Some companies may need robust PLM features for complex product development, while others prioritize ERP for financial and operational efficiency.
Modern platforms increasingly offer pre-integrated solutions or connectors to ensure seamless data flow. Look for systems that support scalability, open architecture, and proven integration frameworks.
Questions to Ask When Evaluating Solutions:
- Can the system handle our current and future product complexity?
- How easily does it integrate with our existing tools?
- Does it support our compliance and traceability needs?
- Is the user interface intuitive for different teams?
ERP, MRP, and PLM: Next Steps
Understanding ERP, MRP, and PLM is key to building a streamlined, responsive, and competitive organization. While each system serves a different purpose, together they support the full journey of a product, from concept to customer delivery. Whether you’re modernizing legacy systems or building a digital infrastructure from the ground up, the integration of ERP / MRP / PLM platforms should be at the core of your strategy.
By aligning people, processes, and technology, businesses can accelerate innovation, improve efficiency, and deliver products that meet market and regulatory demands.
At EAC, we work alongside manufacturers to fix the broken parts of product development by connecting systems, people, and processes. We help organizations implement and optimize technologies like PLM so their teams can move from fragmented workflows to clear, connected product development. We also create resources that help product leaders evaluate their options and make confident strategic decisions.
Looking to learn more about best practices around PLM systems? Explore our asset.
In today’s fast-paced manufacturing landscape, the new norm is to constantly seek ways to optimize your operations, increase productivity, and reduce costs. The integration of Enterprise Resource Planning (ERP) and Product Lifecycle Management (PLM) systems is a proven strategy for achieving these goals. By aligning these two critical systems, you can unlock a world of opportunities to streamline processes, enhance collaboration, and drive success throughout the entire product lifecycle.
In this blog, you will uncover the benefits of integrating ERP and PLM systems. We’ll also provide you with a detailed breakdown of the ABCs of integration – which data should be integrated, where and how that data should be integrated, and when it’s best to start the integration process.
ERP vs PLM
Before diving into the integration process, it’s important to understand the functions and purposes of ERP and PLM systems.
Enterprise Resource Planning
ERP systems are designed to manage physical assets, encompassing activities such as financials, purchasing, HR, demand and order management, forecasting, production planning, inventory management, and logistics. These systems such as SAP, Oracle, and Microsoft Dynamics ensure that products are produced according to demand, within schedule, and controlling costs.
As many have come to understand, the key to achieving success within your production process lies in adequately planning for the use of enterprise resources to meet customer demand and report financial results.
That’s why an ERP suite is designed with this goal in mind. It empowers your business with the tools and capabilities to effectively manage traditionally back-office resources, ensuring that operations align seamlessly with customer demand.
By harnessing the power of an ERP suite, you can optimize your planning processes, enhance operational efficiency, and deliver superior financial results to your constituents.
Product Lifecycle Management
On the other hand, PLM systems such as Arena, Agile, Teamcenter, Windchill and Autodesk are focused on managing the digital product definition. They are purpose-built to manage the digital product definition, encompassing anything that defines the form, fit, and function of a part, system, or vehicle.
PLM systems deliver comprehensive and robust data management capabilities, standardize and automate your product development business processes, and enable flexible and efficient collaboration with global teams across multiple departments and organizations.
As you can see, both of these systems have important functions for a smooth running production process, but they can often be disparate within a company. Understanding how to integrate these systems is the key to advancing the way you do business.
Integrating PLM and ERP
When it comes to integrating your ERP and PLM systems, understanding how to do that can feel overwhelming. There are three different levels of integration: one-way file push, API call, and a third-party integration platform. Understanding which level fits the needs of your company is vital for a successful integration. Let’s explore some key advantages:
Streamlined Workflows
Integration allows you to experience seamless data flow and improved collaboration between departments, eliminating redundant data entry and ensuring data accuracy. This streamlined workflow minimizes errors and delays, optimizing your productivity and reducing cycle times throughout the product lifecycle. You no longer have to manually enter BoM data into an ERP system and ensure that the data is correct in both systems.
Enhanced Data Visibility
By integrating ERP and PLM systems, you gain a holistic view of your product information. This integrated approach eliminates data silos and provides real-time visibility into critical data points, enabling you to make informed decisions and eliminating guesswork from your operations.
Improved Product Quality
This process empowers capture and link quality-related data at every stage of your product lifecycle. This comprehensive view of product quality enables you to detect issues early on and streamline processes for corrective actions, ultimately leading to improved product quality and increased customer satisfaction.
Cost Efficiency
Integrating ERP and PLM systems eliminates the need for you to duplicate data entry and automates data exchange between systems. This saves you time, reduces errors, and minimizes your operational costs. Additionally, with better inventory management and production planning capabilities, you can optimize your resource allocation, minimizing wastage, and improving your cost efficiency.
Accelerated Time to Market
When you connect your engineering, manufacturing, and supply chain processes, your teams can seamlessly collaborate in real-time, enabling efficient communication and shortening your product development cycles. This collaborative approach gives your business a distinct competitive edge in the market, helping you achieve success.
Levels of Integration
When it comes to integrating your ERP and PLM systems, understanding how to do that can feel overwhelming. In the case you don’t know what level of integration would be best for your company’s needs, let’s explore the different levels below:
One-Way File Push
The first level is a simple one-way push. This means that your PLM system has the ability to create a data distribution packet (ex. BoM in a CVS, part file or PDF file format) that is released to the ERP system and then the info is stored in both systems.
This type of push can be set up to be done either direction to maximize data sharing and a smooth process. This level of integration will log everything, but not provide error or checking feedback. This is a great level for companies looking to minimize issues of mismatched data.
API Call
The second level of integration is connecting your PLM system directly with other systems – Microstoft dynamics or other systems. This means that there is a rest service API call from the PLM system to release data directly into another system.
That being said, you will get error checking and logging from this level of integration, unlike the first level. A company might opt to do this level due to a need for logging and checking or because their ERP system doesn’t support importing data through files like the initial level would require.
Third Party Integration Platform
The third integration level piggy backs off of level two. Not only does it have logging and checking, but it performs a push and pull between the systems seamlessly. This level of integration works well for large companies with multiple systems to push and pull from. There are are third party integration tools like Tibco that integrate systems such as SAP and Oracle.
Ultimately, understanding the basics of ERP and PLM integration levels and the influencing factors such as cost, error checking, number of systems, company size and many more, is vital to understanding which level fits the needs of your company.
So, what are the next steps to finding that right integration and beginning your journey?
Next Steps of Integration
Integrating your ERP and PLM systems is a game-changer for your manufacturing business. By streamlining workflows, enhancing data visibility, improving product quality, optimizing costs, and accelerating time to market, this integration unlocks a world of opportunities for success.
While you may be hesitant to begin an integration like this because of data clean up still needed, EAC is here to provide services to clean up data to make sure the integration runs smoothly.
Finding a trustworthy partner to help with implementation can be difficult and daunting. Lucky for you, EAC has years of deep expertise in manufacturing processes to ensure a smooth integration journey. We work collaboratively with you to assess your requirements, design a tailored integration strategy, and seamlessly implement the solution that meets your specific business goals.
With EAC by your side, you can confidently embark on this transformative journey, knowing that our collaborative and solution-oriented approach will help you navigate the complexities and achieve your future state. Get in touch with EAC today and let us drive your success through integrated ERP and PLM systems.
I’m sure at least once in your life you’ve heard the saying, ‘Work smarter, not harder.’ But what a cliche, right?! Well, for those of you managing your Bill of Materials (BOMs) in Excel, it’s time to step away from the cell block prison (pun intended).
In this article, we’re going to break down what it actually means to revitalize your BOM strategy with the Digital Thread to start seeing the results you want.
What Is The Digital Thread?
First of all, let’s start with the basics. The Digital Thread is a term used to describe the seamless flow of information throughout the manufacturing process. From design and engineering to production and after-sales support. It provides a way to connect all the data and information generated at different stages and from systems of the product lifecycle.
Generally, the Digital Thread provides value by enabling better visibility and control of any processes that require or produce product data. It enables manufacturers to collaborate more effectively, automate and optimize workflows, and quickly respond to changes. All while adjusting quickly to customer needs.
Bill of Materials (BOM)
Next, let’s break down the concept of a Bill of Materials. A complete Bill of Materials (BoM) list usually contains all of the parts and components needed to create or manufacture an end product. You might think of a BoM as a recipe ingredient list. The information about each part can include details such as part names, part numbers, quantity required, and cost per unit. Not to mention, BoMs contain other relevant part details such as material type, color, or size if applicable; supplier information; serial numbers, etc.
By consolidating and organizing all the pertinent information product information, the BoM becomes a centralized resource. A critical resource that facilitates the manufacturing processes of specified products.
Ultimately, the goal of the BoM is to help track inventory and verify missing parts during assembly. Equally as important, BoMs are critical to support a healthy supply chain, as well as help with purchasing decisions and more.
The Digital Thread and Bill of Materials Working Together
Balancing a plethora of product information – it’s no surprise, the best BoM management strategy used within the industry does not leverage solely Microsoft Excel. Nor does it rely upon one Enterprise resource planning (ERP) system. Instead it works to unite data from multiple systems into a single source of truth.
Sounds great doesn’t it? But, if you’re like most – your product data lives all over the place in different systems from different departments. This situation tends to create data siloes resulting in time-consuming manual tasks using outdated operational processes. Generally, these are some of the biggest problems that inhibit manufacturers from achieving their business initiatives.
Oftentimes, during our EAC Assessments, we hear multiple teams across the enterprise and different management levels are frustrated by broken processes. In short, there is a lack of key information employees need to do their jobs right, at the time they need it most.
Meanwhile, the digital thread uses advanced technology (such as product lifecycle management systems as well as the Internet of Things) to connect critical disparate processes. This, in turn, helps minimize manual tasks, and breaks down data siloes. Implementing the digital thread to your BoM strategy creates a major impact for all stakeholders involved. For instance, design teams, engineers, manufacturing, assembly, operations, finance, purchasing, and even marketing.
How The Digital Thread Supports Engineering
Furthermore, the Digital Thread plays a crucial role in supporting engineering and bill of materials (BOM) management by providing seamless connectivity and accessibility to relevant data throughout the product lifecycle. Here’s how the digital thread benefits these areas:
1. Engineering Collaboration
Firstly, the digital thread allows engineers to collaborate effectively by providing a centralized platform for sharing and accessing engineering data. This facilitates cross-functional collaboration, enables real-time communication, and reduces errors or miscommunications during the design and development process.
2. Design Consistency
Secondly, the digital thread ensures design consistency by maintaining a single source of truth for engineering data. Changes made in the design phase are automatically propagated throughout the digital thread, ensuring that all related documents, models, and specifications remain synchronized.
3. BOM Accuracy and Visibility
The digital thread integrates BOM management, configuration management, and BoM transformation capabilities. This enables accurate and up-to-date BOMs, as the data will automatically reflect changes. Additionally, it provides real-time visibility into the BoM status, including component availability, sourcing information, and cost implications.
4. Change Management
Next, the digital thread streamlines change management processes. By automating change notifications, approvals, and tracking. Essentially, it ensures that engineering changes are effectively communicated, documented, and implemented across the relevant stages of the product lifecycle, minimizing errors and delays.
5. Manufacturing Process Optimization
By connecting engineering data with manufacturing process management, the digital thread enables better coordination and optimization of production processes. By in large, system and data integration allows for improved manufacturing planning, efficient resource allocation, and reduced lead times.
6. Enhanced Visualization and Analysis
Another example includes leveraging augmented reality (AR) design sharing to provide visual representations of designs. In detail, enabling stakeholders to view and analyze products in a virtual environment. It’s recommended to use AR to enhance design reviews, simplify communication, and facilitate better decision-making.
Overall, the digital thread improves engineering and BoM management. Markedly, by streamlining processes, enhancing collaboration, ensuring data consistency, and providing visibility across the product lifecycle. It promotes efficiency, accuracy, and agility in engineering and BoM-related activities. Leading to improved product quality and faster time to market in the long run.
How A Digital Thread BoM Strategy Streamlines Manufacturing
Simultaneously, the digital thread plays a significant role in enhancing the bill of materials (BoM) management for manufacturing, assembly, and quality control processes. In sum, here’s how the digital thread benefits these areas:
1. Manufacturing and Assembly Planning
The digital thread enables seamless integration between the BoM and manufacturing planning systems. It provides real-time visibility into the BoM, ensuring accurate and up-to-date information for manufacturing and assembly operations. This allows for efficient production planning, optimized resource allocation, and improved scheduling in all.
2. Supply Chain Integration
By connecting the BoM with supply chain management systems, the digital thread enhances supply chain visibility and collaboration. It enables better coordination with suppliers, accurate tracking of component availability, and improved procurement processes. As a result, it minimizes the risk of production delays and ensures timely delivery of materials.
3. Work Instructions and Assembly Guidance
Thirdly, the digital thread facilitates the creation and dissemination of detailed work instructions and assembly guidance based on the BoM data. This ensures that assembly operators have access to accurate and step-by-step instructions, reducing errors and improving productivity on the shop floor.
4. Quality Control and Traceability
The digital thread enables better quality control and traceability throughout the manufacturing process. By integrating the BoM with quality management systems, it ensures that quality requirements and specifications are adhered to during production. It also enables traceability of components and materials, making it easier to identify and address any quality issues or recalls.
5. Continuous Improvement and Feedback Loop
Additionally, the digital thread supports continuous improvement initiatives by capturing data and feedback from manufacturing and quality control processes. It enables the analysis of production data, identifies areas for improvement, and facilitates data-driven decision-making to enhance manufacturing efficiency and product quality.
6. Post-Market Monitoring
Finally, the digital thread extends beyond the manufacturing phase to support post-market monitoring and quality assurance. Integrating BoM data with field service management systems and customer feedback enables organizations to identify and address product issues, initiate product improvements, and provide timely support and maintenance.
All in all, the digital thread enhances BoM management for manufacturing and assembly processes by ensuring accurate and up-to-date information, facilitating supply chain integration, enabling effective work instructions, improving quality control, supporting continuous improvement efforts, and enabling post-market monitoring. Concurrently, it streamlines operations, improves product quality, and enhances customer satisfaction.
The Polaris Story
Polaris utilized PTC Windchill, an advanced product lifecycle management system, to transform their Bill of Materials into a reliable new business model backbone. As a result, it allowed them to create a connected enterprise.
Windchill PLM combines the digital thread framework with a maximized BoM and change management strategy. This powerful product lifecycle management platform organizes all information associated with the development of its products, allowing every stakeholder to access the latest up-to-date information in a dynamic format.
Once it was clear to Polaris that they had outgrown certain tools and processes, they coordinated and synchronized a digital thread of data throughout the enterprise by leveraging PTC Windchill.
As of today, Polaris’ Windchill PLM system enables them to manage and organize the bill of materials (BoM) and implemented configuration management practices. This helped transform their BoMs as needed, effectively managing changes, overseeing manufacturing processes, and utilizing augmented reality (AR) design-sharing capabilities.
By orchestrating these elements, the digital thread ensured seamless connectivity and flow of information across different stages and departments within Polaris. This enabled improved collaboration, streamlined workflows, effective change control, and enhanced manufacturing processes. On top of giving the ability to share and visualize designs using AR technology.
Conclusion
To sum it up, it’s time to put Excel away and start working smarter, not harder. Successful BoM management derives from a single source of truth throughout the enterprise in regard to all the data contained in the Bill of Materials. The Digital Thread allows for the seamless automated flow of the BoM information to create a truly connected enterprise, working in sync along every step of the manufacturing process.
Not sure where to get started? We created our assessments to help. Click here to learn more or have a conversation with our experts.
Communicating product data across an organization is complex. Let’s talk about how to make it easier.
Different departments gather product data from a variety of systems including Product Lifecycle Management (PLM) Systems, Enterprise Resource Planning (ERP) Systems, Manufacturing Execution systems (MES), and Quality Management Systems (QMS) and more, how do we know our organizations are making the most out of all this information?
Just think about it for a second. Our systems speak different languages, AND our departments often aim for different goals.
With an estimated 90% of the world’s data created in the last two years alone (Conner, n.d.), it’s no wonder that companies are having a hard time using it all. The IDC estimates that just 0.5% of the data companies produce is ever used. It’s time to change that.
Here are 9 Ways Your Business Will Benefit From Connecting Your Data systems.
1. Increased Usability
Data experts believe that if Fortune 1,000 companies increased the amount of data they used by just 10%, they could realize over $65 million in additional net income (Marr, 2015). Not only are these numbers huge, they also help make my case about the critical importance of data usability.
The truth is – any one specialized system is often too complex for many non-specialized roles to navigate, find, and transfer the right information. This often leaves separate departments accountable for storing and sharing uncontrolled, out of date versions of product data. It’s not because they don’t WANT to use the right information. It’s because system complexity and interdepartmental gates make it hard to consistently get the right information.
So how do we make product data more usable?
A) Consolidating product data from disparate sources into one single system.
B) Give users a way to access the system using simplified role-specific dashboards.
2. Better Data Access
The most important reason your product data shouldn’t (internally anyway) be kept secret is because product data is your company’s most valuable asset.
Not everyone who needs access to specific product information hosted in your PLM system is from your engineering department, so don’t force them to go through the same vigorous Product Lifecycle system training. Don’t make them navigate an engineer’s world one click at a time.
In order to effectively use data, our departments must have ready access to it. We must make rich product information easy to accessible for a broad set of roles.
By creating an organized system that connects all of our product data, your organization will make information easily accessible to users beyond those who have created it.
Just think of the possibilities that come from connecting multiple systems and delivering information to all departments through a single window.
3. Complete Data
Imagine an entire enterprise with access to real data, at the right time, when it’s needed.
By connecting your product lifecycle management systems with your other enterprise systems, every stakeholder within your organization can impact the value flow of product data through your organization. It also equips team members to consistently drive critical decisions with the latest, most accurate information.
4. Better Insights
Better access to data = Better insights.
Your business teams can and should demand a lot of your PLM processes and solution.
This is one of the reasons why your organization should consider integration technologies and custom front-end solutions – Such as PLM applications.
A data-driven enterprise with insights into how current products and processes can be optimized can drastically improve productivity. Doing this requires teams to have access to up-to-date, accurate product data.
5. Better Decisions
Ready access to information is especially important to any company developing products.
Users without access to the system of record resort to error-prone workarounds that can result in inaccuracies, quality problems, and waste.
Decisions made from out- of- date inaccurate data threaten product quality and delay time to market.
Providing everyone in your organization with broad visibility into the system of record will drive better, more accurate decisions. This will ultimately improve quality, reduce waste, scrap, rework, and help you meet your time to market goals.
The analytical possibilities that come with connecting your data will help users across your organization make accurate product decisions throughout the entire development process.
6. Better Products
Who doesn’t want to create better products faster?
Providing your organization with universal data access will allow your company to drastically accelerate product development.
How so?
By connecting disparate systems, you will have access to real-time data allowing you to make better product decisions.
Because your decisions and actions are now driven by up-to-date information, you will achieve a higher product quality.
7. Increased Productivity
Why waste time manually reading, entering and analyzing data? It could be automatically collected, filtered, and combined.
By collecting your product data in one system and providing a simplified role-based interface, any user within your organization can access contextual, up-to-date, real-time product information anytime they need.
I guarantee your productivity will grow when your organization is able to plan earlier with manufacturing, order materials sooner with purchasing all while your engineering team is spending less time pulling reports.
8. Increased collaboration
Using a system that provides role-based data access to stakeholders throughout your organization provides every role with an ability to quickly understand the status of a part number and how the parts fit together in a design.
This will not only help mobilize and inform the work of teams throughout the organization, but it will also help maximize the success of your product development.
Giving your team the ability to extend and connect your PLM data into the rest of your enterprise will rapidly increase the overall effectiveness of your organization.
9. Real Results
The ultimate benefit your organization will achieve by connecting your data systems stems from your ability to acquire real results.
What does that mean?
Positive results have a tendency to snowball into more and more success. Results give your organization the confidence it needs to quickly deliver value. Providing access to the right information empowers a team, department, company to reach their true potential. We want to help your company thrive.
Why is it important to manage your product Bill of Materials (BoM) in a PLM (Product Lifecycle Management)? This is a tough question to answer across the board for every company, but this article breaks down what you need to know.
The level of BoM management in PLM can be dependent on your companies’ products, downstream systems, and product development processes.
With that in mind, here are some general benefits and reasons to manage the creation of your product BoM in PLM.
The benefit of bill of materials management in PLM
PLM in nature is meant to be a tool to help engineering manage their production date while allowing dynamic collaboration and change control throughout the product development cycle.
The data managed in a product lifecycle management system includes CAD and BoM information, as well as additional supporting product information and documentation.
PLM functionality typically allows an organization to store any and all product information in a structured manner. The structured manner is what properly represents the product within all stages of the product’s development.
This includes everything from initial design requirements, to manufacturing requirements and process plans, to quality assurance documents- all linked to a single product structure.
This gives you the ability to graphically see a truly complete representation of any and all products managed within the PLM system.
In addition, many of the top PLM systems (such as PTC Windchill) give you the ability to manage different views of a single bill of material.
For instance, you could see the design or engineering view of the structure and all design information needed for that BoM product structure.
You would also have the ability to look at a manufacturing view that has the structure defined in a way to support the best possible manufacturing process, while it also links to any supporting information and work instructions.
Additionally, you could see a service BoM that represents exactly what is on-site or on the hands of a customer, with linked product information specifically related to service or support (such as a service repair or product manual).
These systems focus on tracking and managing all cost and profit throughout the process.
Because of this, changes are tightly controlled and require significant steps to ensure proper applications across the system.
There are also few systems that allow for full product representation inside of ERP or MES as outlined above. Nor do they fully support many different views of the same BoM.
ERP tends to only manage what is required to properly manufacture or sell a product, which does not always represent the full product design or its full breadth of supporting information and documentation.
There many impacts on these fundamental differences.
When to use PLM for BoM Management
Here are some general concepts as to when to use PLM for BoM management.
When your product development is in the dynamic phases that require many changes and updates at each phase gate, your bill of materials should be primarily managed in PLM.
If your product requires specific requirements management, detailed manufacturing, quality work instructions, or an intensive manufacturing process, it’s in your best interest to use product lifecycle management for your BoM.
At the very least, all of your product information should also be managed, or linked to your product lifecycle management system to ensure full accountability to all information updates required in the instance of change.
Integrating ERP and PLM
At a minimum, if you have an ERP system it’s important to integrate your system together with PLM.
It’s essential to establish key integration points between your enterprise systems that send needed information back and forth to your enterprise resource planning solution. This will help you properly execute new product releases and changes.
By integrating your systems, your ERP processes will ensure all proper tasks and functions are executed in your ERP or MES systems.
From there, your ERP to PLM system integration would send information back to your PLM system to close the loop.
These are our best practices to help you get ahead and to take product data further.
