Product LifeCycle Management

The life cycle of a product is the process from the idea stage to its production and from there to the first release to the market and even to the time it is removed from the shelves. Products become more complex in the internet era and the demands for products can change rapidly. With the effect of Industry 4.0 and digitalization, innovation and product development stages have been moved to different dimensions. Therefore, the most important KPI of the product development teams is that the products can be more effective and efficient in this process and that they can keep up with these changes as easily as possible. At this point, we come across PLM, that is, the Product Lifecycle. Towards PLM... Just like people, products have a life and different periods in this life cycle. As you can imagine, this cycle starts with idea, development and production. The produced product is put on the market and another period is passed. Although the demands for this product in the market increase over time, unfortunately this will not be a sustainable increase. As soon as the demands start to decrease, the decline period, which is actually the last period of the Product Life Cycle, starts.

Ürün Yaşam Döngüsü

1. Product Development and Market Introduction

At this stage, which is the beginning of PLM, everything starts with an innovation. Ideas are put forward and researches and analyzes are made after necessary approvals. With the results obtained, the prototype of the product is prepared and presented to the investors. If everything goes well in this process, the product is accepted, produced and entered the market. Uncertainty and cost rates are high in the production and market entry stages. Both the market and the customers are unfamiliar with the product, so it may be necessary to provide training to the users/customers. It may be necessary to determine the threats that may occur beforehand or how to follow a threat when faced with a threat. The costs can be quite high. Situations like these are some of the situations we may encounter in the early phase of the product lifecycle.

2. Market Share Capture and Growth

If the work done in the first stage related to the product has progressed correctly, the product starts to take its place in the market and is accepted by the users. Competition in the market increases, prices decrease and the number of sales increases. At the same time, imitations of the product begin to emerge at this stage. At this point, it is important to follow a creative and quality way in order to control the development of the product in the market.

3. Maturity Period

A recession begins in demand and sales, but this stagnation is not a bad sign (if you have consolidated your position in the market in the first place). The target audience now recognizes the product (Surprise sales are not so much) and prices begin to drop due to competition. Likewise, production costs have reached the lowest level. At this stage, companies that carry out their production and processes optimally can survive and continue, and companies that survive must apply very good marketing strategies to maintain sustainability and they need to prioritize brand awareness.

4. Decline/Regression Period

At this stage, the increase in production no longer means anything because demand has now decreased and sales are not what they used to be. Some of the reasons for this may be that a product has been released that can perform the function of the product more cheaply, a product that performs the function of the product better, or that the marketing strategies of competitors are better than yours. At this stage, you can try to be open to innovations based on observations because if a product is in the decline phase, it will be difficult to stand up, or you can do it if you are lucky and have implemented the necessary strategies. The durations of the periods mentioned above are not the same for every product and brand. For example, Coca-Cola is a successful example that has remained in its maturity period for about 100 years, but let's not forget the Blackberry brand phones, which have a very short maturity period.

Ürün Yaşam Eğrisi

So, What Can We Do With PLM?

Since PLM is a very comprehensive process, we can observe the positive effects of a product in every area from the R&D stage to the sales, from the production stage to the marketing processes. If we list these positive effects;

  • Increased efficiency in production
  • Less time, less cost for marketing
  • Good design of the product portfolio
  • Managing customer feedback
  • Effective collaboration between the supply chain and the product design process
  • Safe management of product data
  • Reduces compliance risk  Preparing an environment for innovative ideas
  • Improving resource management in projects

As PLM is a computer-aided and multi-disciplinary technology, software solutions that can be useful for good management;

  • SAP PLM
  • AutoDesk Fusion Lifecycle
  • TeamCenter
  • Windchill
  • 3DEXPERIENCE ENOVIA
  • Oracle Agile PLM
  • Upchain PLM

PLM software products on the market are generally helpful for the management of the following issues:

  • BOM (Bill of Materials) Management / Bill of Materials Management
  • Design Management
  • Workflows
  • Change Management
  • Cost Tracking
  • Project management
  • Supplier Management
  • File Management
  • CAD Integrations (Catia, Solidworks, AutoCAD..)

References:

  1. https://www.researchgate.net/publication/333863116_Beyond_Product_Life_Cycles
  2. https://www.researchgate.net/publication/235175428_Product_Life_Cycle_Planning?enrichId=rgreq-2cb255b0d0fc267f3d376e15a20944ab-XXX&enrichSource=Y292ZXJQYWdlOzIzNTE3NTQyODtBUzoxNzYxNTM0NzQxMTc2MzJAMTQxOTAwOTY2OTQwMg%3D%3D&el=1_x_2&_esc=publicationCoverPdf
  3. https://muhendisportali.com/urun-yasam-dongusu-yonetimi-plm-nedir/
  4. https://www.youtube.com/watch?v=OBCSTFNRABE

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