Presented To: Dr. Dina RatebMOIS 549 Class

Presented By: Karim Aguib

AGENDAIntroductionWhat is PLMWhat is ERPPaper ScopeWhy IntegrateImplementation ConsiderationsApproaches to DevelopmentConclusion

IntroductionERP is the beginning not the endBeing 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 PLMProduct Lifecycle Management (PLM)Manages the innovation process – The

Intellectual Domain of the firmFocuses on the digital content of the

innovation processManages definition lifecycle and the

relationships between product related information and processes

What is ERPEnterprise 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 ScopeDiscuss business motivations for integrating

PLM and ERPFactors to consider for the integrationVarious approaches and methods for the

integration

Why IntegrateKey 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 cost15% reduction in inventory costs8% 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 ConsiderationsLevel of integration – One way transfer all

the way to an immersive bi-directional environment where users have access to both domains

Organizational and Cultural FactorsUsers are from different campsDetermine which domain owns and controls

informationBusiness Practice Factors

Understand how a specific business operates

Implementation ConsiderationsTechnology factors

Type of information to be integratedProcesses to be supportedType and complexity of integration requiredTools and methods to be used to create and

maintain the integrationIntegration levels:

Product structure and BOM Supplier details, inventory, manufacturing

processes and routings

Approaches to DevelopmentEncapsulation

Creating a data package and transferring to ERP system

Can’t manage data inside the fileInterface

Exchange data automaticallyPLM functions to be provided via ERP means

IntegrationFull automatic exchange of all types of product

data and meta-data between the two domains

Approaches to DevelopmentDifferent approaches for integration include:

Information portalsPoint-to-point integrationEnterprise Application Integration (EAI) tool

setsSupplier-provided out-of-the-box integrationCustom implementations

ConclusionIntegration process enhances productivity of

users of both domainsTo realize the benefits, there has to be efficient

flow of information between both domainsData and process ownershipDefining master source of informationLevel of integration requiredHow processes will be managed that cover the

two domainsIntegration requires significant amount of

custom services

QUESTIONS