ERP and PLM integration

The percentage of ERP implementation failure is high which is the ERP solution cannot fits organization objective. The critical reason of failure is organization did not preparing properly before use ERP solution, the information system is weak and preparation of business information data is not accurate and enough. Integration of ERP and PLM is a generation of enterprise systems.

PLM (product lifecycle management)is the process of managing the entire lifecycle of a product from its conception, through design and manufacture, to service and disposal.PLM integrates people, data, processes and business systems and provides a product information backbone for companies and their extended enterprise. PLM can solve problem relate to products development, such as, how to organise products information data, how to generate and control products information data and who is responsible for different part of the products. On the other hand, ERP is more focus on organisation resources management strategy, eliminate resource waste and reduce costs. Therefore, today¡¯s vendors start thinking integrates PLM and ERP to increase the ERP implementation success rate and products quality.

The customers¡¯ needs in today are variable and constantly changing, organisation has to emphasis on production diversity to obtain market share. This business environment requires ERP system has to be able to processing the product information and inventory data to all departments effectively and accurately, in order to help organisation achieve the objectives of low production costs, high quality product and shorter new products launch time. Therefore, I think the PLM can be the base of ERP to achieve these objectives.

In addition, through PLM and ERP integration, organisation can effectively carry though significant innovation, for example R&D new and distinctive products, lower production costs and improve products quality. Integrated PLM and ERP system, provides value of innovation to organisation, at same time, gives organisation ability to control products manufacture. This integration brings organisation huge competitive advantage, because it pushed manufactural development, thus makes organisation capture and response to market opportunities quickly and confidently.

Bibliography:

Charles Møller, (2005),"ERP II: a conceptual framework for next-generation enterprise systems?", Journal of Enterprise Information Management, Vol. 18 Iss: 4 pp. 483 - 497

Jing Zhang : 18 Jun 2012 01:01 |  Tags: Erp Integration Plm |  Comments (0) |  Report a problem