• What is PLM?
• Function of PLM
• Benefits of PLM
• PLM ROI
• Operational Benefits
• Who Uses PLM?
• Why PLM?
• Do You Need PLM?
• PLM vs. PDM
• Elements of PLM
• PLM Models
• PLM Solutions
• PLM Selection
• PLM Implementation
• PLM Cost
• Implementation Process
• PLM Best Practices
• PLM Resources
• PLM Terminology
• Standards & Compliance
• PLM White Papers
• PLM Blogs & Websites

Product Life Cycle Management

| What is PLM?

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Return on Investment (ROI)

Your organization can benefit from PLM in many ways. Among these are improved quality, streamlined operations, greater efficiency, and financial return on investment (ROI). According to AMR/Gartner, ROI can be broken down into three categories, each occuring at different time intervals - immediately, within the 1st year, and well into the future.

• Now: Infastructure savings — Accrue immediately after go-live. Often the result of improved collaboration and better IT efficiency.
• Next Year: Improvement in established operating metrics — Accrue 6-12 months after go-live. Based on widely used and genereally well-benchmarked operating metrics.
• +5 years: Strategic competitiveness impacts — Accrue 3-5 years after go-live. Includes savings on internal programs and process as well as improved strategic position.

Source:  AMR/Gartner

Here are some examples of infastructure-related savings as a result of PLM implementation in various industries.

Costs	Infrastructure Impact	Industry
IT Infrastructure Costs	Reduced total number of product development applications from 1,500 to 500; reduced 150 separate portals to 1 (eviz.net); reduced per user IT seat cost from $200K in 1995 to $15-$18K today	Automotive
	Eliminated 18 separate legacy PDM systems, each with 2 FT DBAs; dramatic reduction in number of components; system combines in one place component system, parts list, document management, ECM	Process Industry Automation
	Reduced total number of systems required for product data. "Significant reduction in TCO for PLM"	Semiconductors
	Saved $1.1M in first 6 months with system decomissioning, document handling savings	Semiconductor Equipment
	Potentially a savings. Multiple existing commercial packages in place (47)—possible to reduce TCO	Pharmaceuticals
	Replace 30 year-old configuration management system with apeture card data entry; print room shut down, staff reallocated; plan to replace COPICS service parts system	Transport Temperature Control
	Eliminated Access DB and old Project Management tool	Auto Supplier
Other Infrastructure Costs	Offset project and software costs in first year with document printing and shipping	Industrial Equipment
	20% cost savings in document and communications costs with manufacturing partners	Specialty Chemicals
	$30K saved in first three months with document printing and shipping	Electronic Manufacturing Services
	Direct savings in print room expenses	Electro Mechanical Machinery
	Document delivery 90% improvement in cost and time	Semiconductors
	Eliminated 4 of 7 ECO coordinator positions at $70K per year each	Electronics
	Eliminated card cataglog and admin, costs to maintain	Storage Devices
	Eliminated hard copy document handling expenses—print, courier—and network charges	Bearings and Motion Control
	Print room, courier, network charges	Electrical Gear

The PLM Value Framework

Aras breaks down the benefits of PLM, examining Revenue, Costs, Capital and Risks.

View PLM Value Presentation