12
Aug
2011

A Flow Graph of PLM, CRM, SCM and ERP during Product Life

Written by Steve Ammann   

go_with_the_flow A Flow Graph of PLM, CRM, SCM and ERP during a Product's Life.

Importance/value on one axis and product life on the other.

Oleg Shilovitsky recently published an article in his blog, Beyond PLM, titled "ERP vs. PLM: More Competition in The Future?"

The article poses good questions and several comments are worth reading. The below graph shows the major Enterprise systems for manufacturing companies in a use/importance FLOW perspective, something like reality, versus the typical, over the wall integration graph shown by many vendors. Oleg asked me to publish it and I hope it adds clarity to the discussion.

The graph is not something ZWS created, I don’t know the author, but I give him/her all credit.

importance_of_plm1

 

 

Comments  

 
+1 #1 Chuck Reynolds 2011-08-13 12:27
Where's the test/validation lifecycle management(TLM) in the diagram?
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+1 #2 Jim Lake 2011-08-16 13:35
I have been using this model for years to communicate and market with business stakeholders the interrelationsh ips between these four key business systems. All primary PLM suppliers should have their own version of this graph.

Chuck,
TLM, in most cases, is seen as a sub-component of the PLM system area in the shared graph. Do you see TLM fitting entirely within the PLM area? If no, does it deserve its won separate area in the shared graph or do you see it being primarily in the PLM area but with its own separate nodes extending into other non-PLM areas? If so, I would be interested in hearing your opinion.

I have lead/participated in integration efforts dealing with these four key business systems for over 20 years. My experience has been that TLM, although very important to consider, can not be treated at the same high business strategic level as PLM, ERP, SCM and CRM.

When time allows, I will try to publish another graph that adds additional visual understanding regarding key touch points between PLM, ERP, SCM and CRM.
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0 #3 Steve Ammann 2011-08-16 13:52
Hi Chuck, Thanks for your input. I would agree with Jim that TLM is a sub component of PLM, but I too would like your input on this. I think this graph could be used in a few different ways and also it would be really interesting if a company tracked their own usage of these Enterprise systems and reported back to us! I am not sure what the right tracking criteria would be, but I am open to all input from readers. Thanks again for commenting Chuck, and adding to the discussion. Steve Ammann
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0 #4 Steve Ammann 2011-08-16 13:56
Hi Jim - That's quite an endorsement for the graph. It made sense to me when I first saw it as I have been guilty of the " hand off" slide deck - PLM to ERP as well, which perhaps is appropriate for the integration points in detail, but it does not give the big picture to the stakeholders. Please publish the key touch points you have figured out from your experience, I think all parties would benefit! Thanks Jim for commenting and adding to the discussion - Steve Ammann
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0 #5 john dorn 2011-08-18 08:34
Guys I shared the graph with a couple of my co-workers here and one of them asked why MES was not included. Any ideas?
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0 #6 Jim Lake 2011-08-18 13:53
Hi John,
I see MES (assuming you mean Manufacturing Execution System) being contained mostly within the ERP system. It would be similar to, but not exactly the same as, how TLM would be a sub-system within PLM (see my comment #2 above). MES would reside mostly within the ERP part of the model with some offshoots extending outside of ERP. This differs from my mental model for PLM-TLM where TLM would be entirely contained with the PLM area of the model. How do you think the ERP-MES relationship should be shown in the model? If there should be off-shoot(s), what do you feel they are? Where do these off-shoots go in the model, i.e. sandwiched between the 4 key business systems?
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0 #7 john dorn 2011-08-18 14:03
Including MES within ERP was my very thought as well. However we are an Electronic Manufacturing Service company so our model may be a bit different than an OEM, for which the graph was originally created for. If I had to pick and area, it would be in the middle “Production” and at the end Maintenance & Customer Service (CRG/Service Work) with a small finger going into the Design area for Product setup.
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0 #8 Jim Lake 2011-08-18 14:15
John, I think you nailed it.
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0 #9 yoann Maingon 2011-09-10 16:20
Hi,

Nice Chart, I would just say that ERP is used since the very beginning as it is usually the place where budget is engaged for such product lifecycle launch. And through product development it will manage all the Research man hours cost. Lots of financial controlling there.

Best Regards,

Yoann
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0 #10 Steve Ammann 2011-09-13 09:19
HI Yoann,
ERP can definitely be used up front and is by many companies.Many PLM systems are implemented with a product cost attribute. I think the product cost and obviously man hours and other financial controlling info should be in ERP ( as the master data) but product cost should be shared with PLM. One of the integration points that should be set up, as well as others.
Thanks for contributing to the blog,
Steve Ammann
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