Product life cycle management, or PLM for short, is the process of overseeing a product through each of its four phases. By taking into consideration and managing the cross-functional work that must be done at every stage, PLM is a strategic approach that guarantees a product’s success. Find out how to become a product manager and about PLM, covering the main duties associated with this career path. Next, develop strategic communication, problem-solving skills, and stakeholder management through a Product Management Training Course at Oxford Training Centre, enhancing the valuable abilities you will use as a product manager. Product life cycle management (PLM) is a strategy that helps manage the introduction, growth, maturity, and decline of a product’s life cycle.  At every phase, particular tasks have to be completed in one way or another by various teams, which also implies a high level of organization, thoroughness, and knowledge of business and technologies.

History of PLM

As early as 1931, the idea that a product has stages of life and that it is necessary to control them was developed. An employee of the advertising firm Booz Allen Hamilton proposed a five-step life cycle theory for products around 1957. It starts with the introduction phase, progresses through growth and maturity, and ends with saturation and decline. 

In 1985, American Motors Corporation (AMC) was one of the first organizations to use contemporary PLM. In 1985, it sought to find a method to expedite its product development process to better compete with its bigger rivals. AMC chose to prioritize strengthening the product lifetime of its flagship vehicles, especially Jeeps, despite not having greater resources. 

In keeping with that plan, AMC started working on a new model that finally made its debut as the Jeep Grand Cherokee after launching its compact Jeep Cherokee, the car that started the current sport utility vehicle (SUV) category.

The introduction of computer-aided design (CAD) software tools, which increased engineers’ productivity, was the first step in its pursuit of quicker product creation. The second component of this endeavor was the new communication system, which, by centralizing all drawings and documentation in a database, facilitated quicker dispute resolution and decreased expensive engineering revisions.

What is product lifecycle management?

The management of a product as it progresses through the normal phases of its life, development and launch, growth, maturity/stability, and decline, is known as product lifecycle management, or PLM. Both the product’s manufacture and marketing are included in this handling. From pricing and promotion to growth or cost reduction, the idea of the product life cycle informs business decisions. A company’s approach to the several stages of a product’s development up until its eventual decline is handled by product lifecycle management, or PLM.

Product lifecycle management encompasses every phase of a product’s creation and production, as well as marketing and consumer segmentation.

Shortening product development durations, determining whether to increase or decrease production activities, and determining how to concentrate marketing efforts are the primary advantages of project lifecycle management. Product development management, supply chain management, and sales/marketing strategies are all linked to product lifecycle management.

Innovations related to enhanced communications, environmental sustainability, and technology breakthroughs will permeate product lifecycle management in the future.

Why is PLM important?

With the ultimate goal of creating a product that outperforms its competitors, is extremely profitable, and lasts as long as consumer demand and technological advancements allow, effective product life cycle management unites the numerous businesses, departments, and workers involved in the product’s production to streamline their operations. It is much more than simply creating a bill of materials (BOM).

PLM systems assist businesses in meeting the engineering hurdles and growing complexity of creating new products. Together with the administration of client communications, supplier relationships, and internal resources, they can be seen as one of the four pillars of a manufacturing organization’s information technology framework. How a product is marketed depends on which stage of its life cycle it is in. For instance, a mature product must be differentiated, but a new product (one that is in the introduction stage) must be described.

How to become a PLM?

You should take these crucial actions and acquire these necessary abilities to work as a product life cycle manager (PLM):

• Obtain a baccalaureate degree in an acceptable course, e.g., economics, computer science, marketing, business management, or electrical engineering.
• To enhance your knowledge of product life cycle, consider taking higher degrees or certification in information technology, technical product development, or product management.
• Certifications that offer structured learning pathways and can improve your CV include the IBM Product Manager Professional Certificate and the Google Project Management Professional Certificate.
• To fully comprehend the product development process, gain expertise in data science, testing, development, or product management.
• Examples of entry-level job categories that would be terrific options to acquire transferable skills are junior project manager, business analyst, marketing, finance, UX design, and content strategy.
• Most of the latest developments in the field, technology, and evolving methodologies can be followed by reading trade journals, attending webinars, and taking appropriate courses.
• Be flexible and committed to lifelong learning to stay ahead of the competition and to efficiently handle products during their life cycle.

Steps of a PLM

Every stage of a product may be categorized differently by businesses. But generally speaking, practically every product goes through a number of unique stages during its existence.

The preliminary planning and concepts for a new product are included in the concept stage. This covers market research, figuring out what customers need, and assessing the product’s viability. This stage, which is where ideas are developed, starts the product lifecycle and is frequently driven by the research and development departments.

1. Phase of design

The design phase envisions, designs, and tests the product. These consist of the creation of an item prototype, refinement of the design, and ensuring that it meets all the safety and law requirements. Again, because no one has ever made and tested the same thing before, there is a need to build and test it; therefore, businesses many times need to waste money on research and development at this stage of the design.

2. Stage of production

The product moves on to the production stage if the business is confident in it and believes there is a market for it. During this phase, the product is manufactured, including the procurement of raw materials, component assembly, and final product testing. The business shouldn’t be constantly adjusting the design at this stage; instead, the product should be fully developed.

3. Stage of sales

The product is now in the sales phase once it has been manufactured. Selling and promoting the product to consumers is the focus of this phase. This covers pricing plans, sales promotions, and advertising. Since a business must attempt to predict how many sales will occur (and hence need to be created), the sales stage and the production stage frequently take place simultaneously.

4. Stage of support

After a customer purchases a product, the support stage entails continuing to assist them. This covers repairs, warranties, and customer service. To improve their user experience, new owners may also receive continuous training or services.

5. Stage of retirement

The product’s lifecycle ends when it is retired, regardless of whether rivals have produced a superior product or the market has simply stopped wanting it. This phase covers the product’s end of life, including recycling, disposal, and repurposing. Successful products are frequently just improved with subsequent iterations.

Benefits of product lifecycle management

Faster product launch, higher-quality product launch, enhanced product safety, more sales opportunities, and fewer mistakes and waste are just a few advantages of effective product lifecycle management. PLM can be aided by specialized computer software that performs tasks like process management, design integration, and document management. The goal of product lifecycle management is to increase the dependability and quality of products. A more structured approach to planning and innovation may require businesses to spend less on prototyping. Requests for quotations (RFQs) may become more precise and timely as a result.