Knowledge Base

Differences between PLM and PDM

Manufacturing industry depends on successful product development, and successful product development depends on proper management of data. Product data starts from its design, and culminates in assessment of its sales in the marketplace. Product Data Management (PDM) and Product Lifecycle Management (PLM) are two indispensible tools developed primarily for streamlining product information.

Product Data Management
When CAD became the de-facto standard for engineering drawings way back in the 1980’s, it paved the way for enhanced precision in product manufacturing. With CAD, drawings were not subject to manual errors or interpretation.  While it was a step forward, people soon realized that managing all versions of a drawing, especially at the prototype stage, was still a daunting task.  And while small companies could still manage designs, it was not so easy for bigger teams to manage versions. The challenge compounded especially when different teams started to jointly design products, and needed a way to collaborate on the product design process.The challenges in organizing CAD data grew as products got complicated, and it became a major chore to keep track of all the versions and the data types. Automobile companies, ship building companies, refineries, aerospace, industrial plants, all require intricate designing and many iterations, and it soon became apparent that there was a need to develop software that would keep proper track of the design data.

Product Data Management (or PDM) is the practice of systematically storing, archiving, retrieving and managing product engineering design data. PDM software provides a well organized data repository for CAD designs that allow teams to collaborate, share files, and eliminate overwriting any version of the design accidentally. PDM tools are mostly used by design engineering teams in order to reduce development efforts during the work-in-progress or design phase. With PDM, it is possible to manage many distinct types of design data with a central repository and a single source of truth. A single source of truth (SSOT) is the practice in which all the company data can be found in a single unique reference point. A SSOT creates an accessible information architecture wherein all of the organization's data can be found via a single reference point.

Since all authorized users have access to the latest CAD design files stored in a central depository, it is easy to keep track of iterations and versions. PDM optimizes engineering efficiencies and enables releasing of engineering documentation to downstream participants, including manufacturing, procurement and other departments with all the metadata associated with the product. Good PDM software like Windchill PDM Essentials allows setting up access control in order to improve data security. PDM enables real-time data sharing with authorized personnel including those that are located globally, as well as with suppliers, customers and partners, should such a need for data sharing arise.

Product Lifecycle Management
While PDM was a big step forward towards smart data management, it was still pretty much focused on engineering and CAD Design.As products became more complex and multiple disciplines became involved in the design process, the need arose for a more holistic data management system. This new system involved teams from the whole lifecycle – from its conception to replacement - and supported all disciplines, not just engineering. Product Life Cycle Management (PLM) refers to the process of managing the entire life cycle of a product from its conception, through design and manufacture, service and disposal. A PLM software describes the engineering aspect of a product, from managing descriptions and properties of a product through its development and useful life. It extends beyond the design phase to manage all data and processes that are tied to new product development. PLM encompasses the complete stages of a product development - from its development, growth, maturity, decline,to phasing out of the product. It therefore not only includes design data management, but also extends to analysis of sales and marketing and incorporating their feedback in the next product cycle iteration. It incorporates all the engineering aspects of a product, and integrates people, data, processes and business systems. PLM therefore provides a product information backbone for companies. The salient features of robust PLM software include product design, Product and portfolio management, and Manufacturing process management. Properly implemented PLM improves product quality due to monitored product development process, reduces time to market due to optimized process of product development, and enables companies to build better products as well as reduce new product development costs due to the complete integration of engineering work flows. It also reduces the development time by enhancing documentation, which allows for better compliances.

Difference between PDM and PLM
It should be clear by now that PLM software is used to track lifecycle status for a product from its ideation to its entry into market and its performance in the marketplace. PDM software is more of an engineering tool, kind of a subset of the broader PLM solution. However, its functions can be accessed within a PLM software platform. While PDM systems begin and end with product design data, PLM software is used to manage the gamut of a product’s lifecycle. In this sense, it can be said that PDM is a precursor and vital part of the PLM. PDM has sprung from the computer-aided design (CAD) industry as a way to track CAD drawings and information, while PLM was propounded to tackle increasing complexity of products. While PDM is a standard component of the better class of PLM like Windchill, it is also offered as a dedicated module in many ERP suites.

In a nutshell, here are the additional features PLM provides over PDM:

  • Product data management
  • Change / revision management
  • Resources planning and management
  • Cost and time management
  • Configuring ideal workflows
  • Streamlining development and manufacturing processes

Given these benefits, it would be prudent even for mid-sized companies and SMEs in India to choose PLM over a simple PDM solution. If you a forward thinking, progressive product development company focused on improving your products design, a good PLM software like PTC Windchill may be right up your alley.