Presented To: Dr. Dina Rateb MOIS 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