PLM is not just another module of the ERP system. At the risk of simplifying things too much, PLM enables innovation and relies on flexibility and loosely structured information while ERP enables control and relies on discipline and structure.
Without getting into a philosophical debate, let's examine what that means in practical terms by looking at an example. During the process of developing a new product, companies typically go through multiple iterations of the design. The designers may procure or produce component materials to use in the product and go through many different sets of specifications before delivering the final design. In addition to the product design, information about internal design reviews, market analysis, customer preferences, supplier input, pricing and other documentation is generated. Many finished designs will never see production, however, let alone the components, ingredients, or specifications.
ERP applications supply the discipline to control these materials on a large scale from an inventory, costing and regulatory view. This level of control, which is required to plan and execute a global supply chain, may not be appropriate for the product innovation environment. In addition to avoiding too much "ERP overhead" in the design process, we also don't want to pollute the ERP system with a lot of experimental material definitions and documentation that may never be used again.
Without getting into a philosophical debate, let's examine what that means in practical terms by looking at an example. During the process of developing a new product, companies typically go through multiple iterations of the design. The designers may procure or produce component materials to use in the product and go through many different sets of specifications before delivering the final design. In addition to the product design, information about internal design reviews, market analysis, customer preferences, supplier input, pricing and other documentation is generated. Many finished designs will never see production, however, let alone the components, ingredients, or specifications.
ERP applications supply the discipline to control these materials on a large scale from an inventory, costing and regulatory view. This level of control, which is required to plan and execute a global supply chain, may not be appropriate for the product innovation environment. In addition to avoiding too much "ERP overhead" in the design process, we also don't want to pollute the ERP system with a lot of experimental material definitions and documentation that may never be used again.
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