Presented To: Dr. Dina Rateb
MOIS 549 Class
Presented By: Karim Aguib
AGENDA
 Introduction
 What is PLM
 What is ERP
 Paper Scope
 Why Integrate
 Implementation Considerations
 Approaches to Development
 Conclusion
Introduction
 ERP is the beginning not the end
 Being able to manage resources of the enterprise,
empowers the innovation process if they can
communicate
 Marriage between ERP and PLM is the logical step for
companies to gain competitive edge in shorter product
to market cycles
What is PLM
 Product Lifecycle Management (PLM)
 Manages the innovation process – The Intellectual
Domain of the firm
 Focuses on the digital content of the innovation
process
 Manages definition lifecycle and the relationships
between product related information and processes
What is ERP
 Enterprise Resource Planning (ERP)
 Focuses on the physical transaction-oriented business
processes and deliverable assets – The deliverables
Domain of the firm
 Addresses production planning, scheduling, inventory
management, cost and other physical aspects of
product production
Paper Scope
 Discuss business motivations for integrating PLM and
ERP
 Factors to consider for the integration
 Various approaches and methods for the integration
Why Integrate
 Key figures for integration benefits:
 75% reduction in time, cost and errors associated with reentering data from one system to the other
 75% reduction in BOM error cost
 15% reduction in inventory costs
 8% reduction in scrap of materials
 Ensures consistency of BOM, product change and other
related information used throughout the enterprise
 Large enterprises integrate PLM and ERP to work
downward along their supply value chain
 Small to medium enterprises (SMEs) integrate to enable
them be more responsive and accurate towards requests
from upstream partners
Implementation Considerations
 Level of integration – One way transfer all the way to
an immersive bi-directional environment where users
have access to both domains
 Organizational and Cultural Factors
 Users are from different camps
 Determine which domain owns and controls
information
 Business Practice Factors
 Understand how a specific business operates
Implementation Considerations
 Technology factors
 Type of information to be integrated
 Processes to be supported
 Type and complexity of integration required
 Tools and methods to be used to create and maintain
the integration
 Integration levels:


Product structure and BOM
Supplier details, inventory, manufacturing processes and
routings
Approaches to Development
 Encapsulation
 Creating a data package and transferring to ERP system
 Can’t manage data inside the file
 Interface
 Exchange data automatically
 PLM functions to be provided via ERP means
 Integration
 Full automatic exchange of all types of product data and
meta-data between the two domains
Approaches to Development
 Different approaches for integration include:
 Information portals
 Point-to-point integration
 Enterprise Application Integration (EAI) tool sets
 Supplier-provided out-of-the-box integration
 Custom implementations
Conclusion
 Integration process enhances productivity of users of
both domains
 To realize the benefits, there has to be efficient flow of
information between both domains
 Data and process ownership
 Defining master source of information
 Level of integration required
 How processes will be managed that cover the two
domains
 Integration requires significant amount of custom
services
QUESTIONS