ERP and PLM integration

Introduction

Enterprise Resource Planning (ERP) and Product Lifecycle Management (PLM) are two vital components of every successful modern manufacturing company. Still, up until recently, both systems have mostly led separate lives within organizations. Fueled by the common gap between product development and business planning, departments used these systems independently, rarely sharing relevant data.

What is ERP?

Enterprise resource planning (ERP) is a business system used to manage financials and reporting around activities such as accounting, sales forecasting, manufacturing planning and execution, customer care and support and shipping logistics.

What is PLM?

Product lifecycle management (PLM) is a business system that provides control of the product record across all development stages—from concept to design to production. With a PLM system in place, a company can manage product data including items, bill of materials (BOMs), approved manufacturer lists (AML) and product files. A PLM system also enables a company to track any changes to product information and communicate revisions to the supply chain.

So, what are the benefits from ERP & PLM integration?

1.Investment

ERP and PLM are amongst the most critical IT investments of a modern manufacturing company. The stakes are high, and so are the costs. With so many resources involved, it only makes sense to connect the dots and create a true end-to-end manufacturing platform. By integrating ERP with PLM you get the best result possible from both systems, allowing you to improve operations vastly.

2.Resources planing

The more you know about the products you aim to produce, the more accurately you can manage time and resources—the critical task of your ERP-system. By integrating PLM with ERP you have instant access to all relevant product details, meaning you can better source materials, plan capacity, and forecast output.           

3.Departments aligning

A disconnect between engineers working in PLM and operational teams in ERP not only creates productivity challenges; it also creates a siloed mindset that is holding back many companies today. How are you to collaborate on a greater goal if your systems cannot even communicate properly? By integrating ERP and PLM you streamline some of the critical processes behind true product innovation.

4.Ensuring of product quality

A full ERP-PLM integration prevents products from being manufactured based on incorrect specifications, which could have a severe effect on revenue further down the line. Unclear procurement instructions could compromise product quality causing unmarketable products, or worse, liability claims from customers receiving items that do not match their specifications.

5.Save time for syncing data

Without ERP and PLM integration, users spend much time on syncing data, whether manually or in batch. This is fatal for plant productivity and can cause serious errors.

6.Decision making improving

In our fast-paced economy, swift decision making is essential. But to do so, your management team needs constant access to accurate and complete information. Without ERP and PLM alignment this information is siloed and not easily accessible, increasing the risk of poor decision-making.