Product Life Cycle

Assessment
Product Life Cycle
Product Lifecycle Phases
 Product Lifecycle Phases
• Towards continuous innovation process and implementing
new technologies effectively.
• To respond quickly to changing market conditions and
shorten the duration of time-to-market.
• To improve cycle times.
• To optimize product lifecycle processes.
• To lower scrap and rework costs.
• Towards closer contact with all departments, including
customers and suppliers.
• To improve company performance and profitability
 Strategies of each product life cycle phase
Development Introduction Growth Maturity Decline
Phase Phase Phase Phase Phase

Strategic Make your Acquire a Maintain Defend Take out all

Goal product strong your market remaining
known and market market position from profits from
establish a test position position competitors product
period and and improve
build on it your product

Competition Almost not Early entry Price and Establishment Some

there of distribution of competitors
aggressive channel competitive are already
competitors pressure environment Withdrawing
into the from market
market
 Strategies of each product life cycle phase
Development Introduction Growth Maturity Decline
Phase Phase Phase Phase Phase

Product Limited Introduction Improvement Price Variations

number of of product – upgrade of decrease and
variations variations product models that
and are not
Models profitable are
withdrawn
Price Goal High sales to Aggressive Re- Defensive Maintain
middle price policy estimation price policy price
(decrease) of price level for
for sales policy small
increase profit
Promotion Creation of Reinforceme Reinforceme Maintain Gradual
Goal public – nt nt loyal decrease
market of product of middle to middle
product awareness men men
awareness and
preference
 Strategies of each product life cycle phase
Development Introduction Growth Maturity Decline
Phase Phase Phase Phase Phase

Distribution Exclusive and General and General and General and Withdrawal
Goal selective reinforced reinforced reinforced from most
distribution distribution distribution distribution channels of
through through all with good with good distribution
certain distribution supply to the supply to except those
distribution channels middle men the used in the
channels and available but with low middle men development
creation of margins of but with low phase
high profit profit for margins of
margins for them profit for
middle men them
 PRODUCT LIFE CYCLE PHASES
INTRODUCTION PHASE
PRICE High, customers willing to pay premium for new product.
Early adopters.
PROMOTION Limited. Highly targeted promotional efforts aimed at
specific customers
DISTRIBUTION Direct (factory to customer) or limited distribution through
specific strategic partners.
SALES Small team of highly skilled salesmen with good knowledge
of the market.
DEVELOPMENT Focus on time to market and uniqueness
MANUFACTURING High expenditure for new production capacity.
SERVICE High level of service for targeted customers.
SUPPORT Direct factory support. Engineering involvement is required.
TRAINING Focused on new product features, benefits, differentiation,
pricing and functionality.
TECHNOLOGY New and innovative.
COMPETITION Limited. May be offering different solution for the same
problem or application.
MARKET SHARE Low overall.
 PRODUCT LIFE CYCLE PHASES
GROWTH PHASE
PRICE 10% of market level. – 10% if the brand name is weak and
competition is severe, + 10% if sales are good and
competition does not have similar product to offer
PROMOTION Heavy. Targeted promotions, trade shows, direct mail, sales
seminars, articles and press releases.
DISTRIBUTION Highly skilled. Focused channels with strong technical skills
if needed, complementary products and services.
SALES Everywhere possible. Retail shops, telephone, internet.
DEVELOPMENT Complete development. Market penetration is sustained with
variations and improvements of the product.
MANUFACTURING Addition of capacity and automation.
SERVICE Local and regional, fully staffed
SUPPORT Phone support.
TRAINING Transition to newer version of product
TECHNOLOGY Newer and leading edge.
COMPETITION New appearing worldwide.
MARKET SHARE High growth. All out market warfare with competitors.
 PRODUCT LIFE CYCLE PHASES
MATURITY PHASE
PRICE Stable.

PROMOTION Focused on reliability, quality, predictability, new

enhancements
DISTRIBUTION Many distributors, alternative channels, offshore sales.

SALES Direct sales focused on hi-volume, high profit.

DEVELOPMENT Focused on cost reductions.

MANUFACTURING Focused on increasing yield and productivity.

SERVICE Distributors take over the service efforts.
SUPPORT Local channels lead support.
TRAINING Competition differentiation.
TECHNOLOGY Aging
COMPETITION Well established.
MARKET SHARE Predictable market share every year. Limited opportunities
for quick gains.
 PRODUCT LIFE CYCLE PHASES
DECLINE PHASE
PRICE High compared to the demand.

PROMOTION Limited – no promotion or advertising efforts.

DISTRIBUTION Use of existing channels.

SALES Maintenance and repair orientated for high-tech products.

DEVELOPMENT Focused on cost reduction.

MANUFACTURING No capital expenditures, outsourcing.

SERVICE High prices on spare parts.
SUPPORT Phone support.
TRAINING None
TECHNOLOGY Old and outdated.
COMPETITION Limited.
MARKET SHARE Shrinking fast.
 What is PLM?
• “The process of managing the entire lifecycle
of a product from its conception, through
design and manufacture, to service and
disposal.”

• “PLM integrates people, data, processes, and

business systems and provides a product
information backbone for companies and their
extended enterprise.”
Product Lifecycle Management (PLM)
!= Product Life Cycle Management
(PLCM)
• “PLM describes the engineering aspect of a
product, from managing description and
properties of a product through its
development and useful life.”
• “PLCM refers to the commercial management
of a product in the business market with
respect to costs and sales measures.”
 Product Life Cycle Assessment
• Powerful tool for product design and lifecycle
engineering.
• LCA is a technique for assessing the
environmental aspects and potential impacts.
• Life Cycle Assessment is a process to evaluate
the environmental burdens.
• Important role in public and private
environmental management in relation to
products.
 Significance of PLCA
• Supports decision-making and highlights
opportunities along with a value chain.
• Optimization of industrial systems.
• Comparing products or services that deliver
the same functional unit.
• Benchmarking one organization’s processes.
Product Life Cycle Assessment
 The aim of PLM
• PLM always tries to reduce loss of energy,
materials, work force.
• PLM brings together very professional
engineering disciplines. Because of that
different groups, these losses can be
optimized and also PLM contributes to a new
generation of lean thinking.
• PLM use two strategies to make a real result.
These are efficiency and innovation.
 The Five Primary Areas of PLM
1. Systems Engineering (SE) – meets all requirements,
primary meets customers needs, and coordinates the
Systems Design process by involving all relevant
disciplines
2. Product and Portfolio Management (PPM) –
manages resource allocation, tracks progress vs. plan for
projects in the new product development projects that
are in process (or in a holding status)
3. Product Design (PD)
4. Manufacturing Process Management (MPM)
5. Product Data Management (PDM) – captures and
maintains information on products and/or services
through their development and useful life
Main Components and Figures of PLM
• Data management: It enables appropriate stage for
management. It provides information about product
features, bills of material, data distribution, project
structure.
• Program and project management: It’s about the
process of developing a product. It gives information on
planning, management and checking.
• Cooperation: It supports project management and it relies
on WEB standards which are based on XML(Extensible
Markup Language)
• Quality management: It provides an integrated quality
management for each sector.
• Management of corporate assets: It directs equipment
and physical assets
Which factors have an impact on PLM?

External Factors:
 Scale: Companies want to grow continuously.
 Complexity: The diversity of product increases because of
product and the process of production.
 Time of cycle: It’s important for competition.
 Lean production: It’s about using less energy and material.
 Global competition: The competition has increased
significantly.
 The arrangements made by governments and
international agreements: It’s about environmental
degradation, work and arrangement of job security.
Which factors have an impact on PLM?
 Need of PLM
• Reduced time to market
• Improved product quality
• Reduced prototyping costs
• More accurate and timely Request For Quote
generation
• Ability to quickly identify potential sales
opportunities and revenue contributions
• Savings through the reuse of original data
• A framework for product optimization
 PLM Best Practices
• Develop iteratively
Although it is always best to know all the requirements in
advance, this is often an unrealistic goal. Therefore, do not
spend an inordinate amount of time upfront on requirements
and design without user validation.
• Manage Requirements
Always keep in mind the requirements set by the users.
• Model Visually
Utilize diagrams and mock ups as models. Create visual
prototypes and get user validation before developing any
method code. Don't spend a significant amount of time
developing specs without prototyping the solution.
• Use Components
Breaking down large projects into manageable pieces. Look
for "Small Wins" that provide business value.
 PLM Best Practices
• Verify Quality
Always make testing a major component of the project.
• Control Change
Ensure that changes are synchronized and verified constantly.
• Milestone lifecycle
different milestones in the development of the product.
Different gateways are required and evaluated during the
product development.
PLM – Speed to market
Business Drivers for PLM
 PLM Paradigm
• A paradigm is a generally agreed and shared
conceptual structure that people use to work
with a complex subject. It’s a simple picture
that helps them think about, describe, analyze
and communicate about the subject.
• A paradigm is a model, a way of thinking, a
mindset. It's a simple picture that helps them
think about, describe, analyze and
communicate about the subject.
 Principles of PLM Paradigm
• Start with a good concept, not necessarily a
good design. (Let the optimizer do the work of
searching for good designs.)
• Optimize early and often. (Not just at the end of
the design cycle or after all other means have
been exhausted.)
• Define the design problem you need to
solve. (Not the one that can be solved by a
certain optimization strategy.)
• Optimize the system interactions. (Not the
components.)
 Principles of PLM Paradigm
• Let the optimization algorithm figure out how to
search the design space. (There’s often no way to
guess ahead of time which search method and
tuning parameters will work best.)
• Be an engaged participant in the optimization
search. (Leverage your knowledge and intuition
during a collaborative search process.)
• Care about the sensitivities of your final
design. (Not those of your initial guess, which
often have no bearing on the final design.)
PLM Business Process Map
PLM LCA
PLM Of all Data
Various Stakeholders of PLM Data
PLM Data Views
PDM Vs. PLM
PDM the subset of PLM
PLM Corner Stones
PLM Change
Before PLM
PLM after Joining the gap
Without PLM: Disadvantages
Problems Without PLM
PLM : Compulsion to Survive
 PLM Strategy
• The potential value of PLM is huge, and continues to
grow as the scope of PLM expands.
• To maximize value for your company, it’s important to
have well‐defined goals that are tied to your business
strategy.
• Successful companies approach PLM implementation
as a business transformation as opposed to a
technology installation, recognizing the need to change
behavior and business processes in addition to
providing new software.
• Think of PLM as a platform for driving change within a
multi‐phase program structure.
 PLM Strategy
1. Define the business problem in strategic terms
2. Identify the business objectives of the program
3. Create a clear multi-faceted business case and strategic
imperative
4. Architect a simple, integrated, platform-independent
PLM vision
5. Select a PLM platform and complementary software
providers
6. Align the organization on the goals and objectives of
the program
7. Develop a phased implementation roadmap
PLM Capabilities Framework which Helps Companies
Prioritize Needs and Develop a Strategy
 Developing PLM Strategies
• Organizations need to define and implement
sustainable PLM Strategy
• Sustainable PLM Strategy Requires
- Vision
- Patience
- Flexibility
-Willingness to change
• Sustainable PLM Strategy always linked to strategic
business objectives of the company
• Success = Vision+ Organization + Process + Providers
+ Approach + Environment
PLM : Major Business Domain
 PLM Spans product life
PLM touches all phases of a product’s life and the entire Value chain
Defining Product Innovation Platform
Key Success Factors
Key to successful Implementations
 Developing and implementing a
sustainable PLM Strategy is important
 MAINTAINING SUCCESSFUL PRODUCT LIFE
CYCLE MANAGEMENT

• Step 1: Create an enterprise wide framework

to define PLM capabilities
• Step 2: Link PLM framework’s capabilities to
key corporate and product priorities
• Step 3: Use the prioritized PLM framework as
an investment planning tool
• Step 4: Establish a group to own and update
the PLM framework and corporate roadmap