Product Lifecycle Management (PLM)

Product Lifecycle Management (PLM) is a strategic process that holistically manages the entire lifecycle of a product, from the initial concept stage through design, manufacturing, service, and disposal.

PLM integrates all stakeholders, data, processes, and business systems related to the product; this includes components such as bill of materials (BOM), documents, engineering change orders (ECOs), quality and compliance processes. Modern PLM solutions are typically delivered as cloud-based platforms and integrated with Industry 4.0 approaches such as the digital thread and digital twin. This enables physical product data and business data to be unified on a single platform, facilitating the digitalization of product development and supply chain processes.

Core components and functions: PLM systems generally consist of product data management modules. For example, functions such as bill of materials (BOM) management, document management, change management, project management, requirements management, and quality and compliance management are central to PLM. These modules facilitate end-to-end tracking of the product development process, control of revisions, and cross-disciplinary collaboration.

Context of digitalization: Contemporary PLM solutions are integrated with technologies such as the Internet of Things (IoT), artificial intelligence, and big data analytics to create a digital thread. This makes data from every stage of the product lifecycle traceable and enables simulation-based optimization of design and manufacturing processes through digital twins.

Historical Development

The concept of PLM has evolved alongside advancements in technical design and data management. In the 1980s, the widespread adoption of computer-aided design (CAD) systems created a need for product data management (PDM); early PDM solutions focused primarily on managing CAD files and documents. In the 1990s, as globalization and supply chain integration gained importance, PDM systems evolved into the first PLM solutions, incorporating functions such as quality planning, manufacturing processes, cost calculation, and product conformity. This era can be referred to as “PLM 2.0”.

In the 2000s, during the PLM 3.0 phase, solutions emerged that focused on product launches and linked innovation management to the supply chain. Today, under the PLM 4.0 paradigm, cloud-based platforms are used to create a centralized digital product record integrated with IoT and digital twins. According to Oracle, this has increased the pace of innovation, enabled better decision-making, shortened time-to-market, reduced costs, and improved product quality. This evolution has paved the way for PLM systems to integrate across all business processes—from engineering to manufacturing, from supply to service.

Application Areas and Objectives

One of the primary objectives of PLM is to accelerate product development and innovation, enhance efficiency, and reduce costs. PLM systems consolidate all product data on a single platform, facilitating cross-functional collaboration. This enables R&D teams to make design decisions supported by data, manage changes in a controlled manner, and prevent redundancies in the process. For example, according to Oracle, an integrated PLM environment improves the design, production, and supply chain execution of a product.

Another important application area is sustainability and compliance management. PLM solutions enable tracking of requirements throughout the product lifecycle, such as material selection, recycling, and extended producer responsibility (EPR). According to SAP, PLM systems support sustainability and regulatory compliance at every stage of the product lifecycle and optimize material and supply chain processes. In this context, PLM also contributes to reducing the environmental footprint of products.

Overall, PLM encompasses the entire lifecycle—from new product ideas to industrial-scale production—within the framework of digital product management. This allows companies to respond quickly to market demands, coordinate design teams across different geographies, and operate seamlessly with global supply chains. As SAP emphasizes, a digitalized PLM environment aims to increase production speed, profitability, quality, and compliance. Oracle similarly notes that PLM strengthens the innovation pipeline, enabling faster development of more profitable products.

Engineering and Manufacturing Perspective

PLM plays a central role in engineering processes such as product design, R&D, production planning, and quality assurance. Design teams manage CAD data and product structures (EBOM – Engineering Bill of Materials) within the PLM system; these data are then converted into manufacturing bill of materials (MBOM) for use in production and communication with suppliers. Additionally, PLM supports engineering change management (ECO) processes by ensuring proper approvals and revision tracking.

The role of PLM in engineering and manufacturing can be summarized as follows:

• Design and R&D: Idea generation, requirements management, prototyping, and simulations during new product development are coordinated through PLM. PLM ensures version control and multi-disciplinary integration among designers.

• Production Planning: Product structures (EBOM) defined during the design phase are transformed into manufacturing bill of materials (MBOM) via PLM. This ensures engineering data is aligned with production planning and supply chain systems. PLM also supports pre-production processes such as supplier data management and material requirements planning.

• Quality Assurance and Compliance: PLM incorporates quality control testing, certifications, and compliance processes. Materials used in production, engineering changes, and compliance requirements are tracked within PLM to ensure product quality.

As noted by Segal (2019), PLM activities are generally addressed in three main phases: Beginning of Life (new product design and development), Middle of Life (supplier management, warranty tracking, and product information management), and End of Life (strategies for product disposal, scrapping, or recycling). A robust PLM infrastructure integrates end-to-end processes to ensure seamless information flow across all stages of the product lifecycle. Ultimately, PLM strengthens collaboration between engineering and manufacturing departments and enhances product quality.

Industry Applications

PLM solutions are widely used across numerous industries characterized by complex product development processes. Literature highlights PLM applications particularly in heavy industries such as automotive, aerospace/defense, shipbuilding, construction, and energy. For instance, high security and traceability requirements in aerospace and defense, and the necessity to manage large numbers of parts and variants in the automotive sector, are key drivers of PLM adoption. In consumer electronics, white goods, and high-tech products, PLM is used to enable rapid innovation and short time-to-market.

According to an academic study, contemporary PLM systems are applied across a wide range of industries including automotive, maritime (shipbuilding), aerospace, construction, energy, defense, food, agriculture, textiles, and logistics. In these sectors, PLM standardizes product development processes, facilitates collaboration among global teams, and positively impacts cost control and product quality.

PLM Software

Today, many major software companies offer their own PLM solutions. Examples include:

• SAP PLM: SAP’s PLM module operates integrated with SAP’s supply chain and ERP platforms. This solution aims to digitize product development and connect it to the supply chain, thereby increasing innovation speed, profitability, quality, and regulatory compliance. With SAP PLM, a consistent digital record (digital thread) is created for each product throughout its lifecycle, simplifying decision support.

• Oracle Fusion Cloud PLM: Oracle’s cloud-based PLM platform standardizes product data and processes in a collaborative environment. According to Oracle, Fusion Cloud PLM comprehensively manages areas such as product items (parts), component and document management, engineering change orders, and quality workflows to support innovation and accelerate time-to-market. This solution integrates with CAD systems to bridge the gap between R&D and manufacturing functions.

• Dassault Systèmes ENOVIA: ENOVIA, part of Dassault’s 3DEXPERIENCE platform, is a PLM solution that unites all stakeholders, data, and processes related to a product. ENOVIA provides tools for collaboration throughout the product lifecycle, supporting planning and innovation processes. Functions such as product configuration, version control, and workflow automation enable seamless coordination between engineering and manufacturing teams.

Although technical distinctions exist among these solutions, their common goal is to support end-to-end product development processes and ensure data consistency. For example, SAP PLM provides integration in areas such as quality, compliance, and data management, while Oracle PLM focuses on innovation management and supply chain integration. Dassault ENOVIA connects multiple disciplines through its collaborative platform. Other leading PLM solutions such as Siemens (Teamcenter) and PTC (Windchill) are also widely adopted in enterprise environments.