PLM and ERP Integration Business Efficiency and Value “ A CIMdata Report”

1. PLM and ERP IntegrationBusiness Efficiency and Value“A CIMdata Report” Presented To: Dr. Dina Rateb MOIS 549 Class Presented By: Karim Aguib

2. AGENDA • Introduction • What is PLM • What is ERP • Paper Scope • Why Integrate • Implementation Considerations • Approaches to Development • Conclusion

3. 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

4. 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

5. 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

6. Paper Scope • Discuss business motivations for integrating PLM and ERP • Factors to consider for the integration • Various approaches and methods for the integration

7. Why Integrate • Key figures for integration benefits: • 75% reduction in time, cost and errors associated with re-entering 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. QUESTIONS