Product Lifecycle Management (PLM): A Quick Guide

Product Lifecycle Management (PLM): A Quick Guide

Product lifecycle management (PLM) is the process that makes a product happen. It involves managing the various phases of a product's development, from inception to decline, and includes every stage of the process, from development to manufacturing and marketing. Benefits include shortening product development times, knowing when to ramp up or slow down production and how to focus marketing efforts. PLM is one of the four cornerstones of manufacturing with customer relationship management (CRM), supply chain management (SCM) and enterprise resource planning (ERP). Successful product lifecycle management must integrate different departments within the organization, its various teams and even outside companies to streamline their activities and create a product that outshines its competitors in the marketplace.

In 1985, American Motors Corporation (AMC) focused on the product lifecycle of its prime products, such as Jeeps, and introduced the compact Jeep Cherokee. This process was advanced by the creation of computer-aided design (CAD) software and better communication systems. When AMC was purchased by Chrysler, it used PLM to become the lowest-cost producer in the automotive market by the mid-1990s. PLM phases help with decision-making, strategic development and creating the correct messaging when marketing each phase.