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Quantitative and Qualitative Benefits of PLM

Business Level Benefits

The following benefits can be expected as a result of implementing a PLM system. These results were determined in user surveys and show actual improvements attained (Source: VDI 2219 Guideline).

Benefit Area Improvement
Time-to-Market ~ 30% Reduction
Cost of Quality ~ 20% Reduction
Product Development Costs ~ 24% Reduction
Product Costs Up to 20% Reduction
Change Management Costs Up to 40% Reduction

Task Level Benefits

The following benefits have been determined empirically. Generally not all listed benefits will be achieved cumulatively, and some may be redundant.

Task Avg Time
w/o PLM
Avg Time
with PLM
Typical Improvement
Searching and retrieving information (data, documents, drawings, emails, etc) 2 hours/day Minutes…… ~ 90%
Gathering the complete history of a product or document (such as the DHF) 4 hours 15 Minutes > 90%
Where used analysis Up to 8 hours Minutes > 90%
New part setup (get new part number, find and enter associated data) 1 hour 10 Minutes ~ 80%
BOM creation Up to 4 hours Up to 1 hour Up to 90%, depending on complexity of BOM
Change order creation and processing 8 Hours 1 hour ~ 90%
Data re-entry into various forms and business systems 1 hour/day 0 100%
Handling of paper documents (copying, printing, distributing, vaulting, etc) 1/2 hour/day 0 100%
Recreation of lost information (data, documents, drawings, etc) 1/2 hour/day 0 100%

After determining the specific benefits an organization can achieve they have to be converted in monetary savings to create a business case and to calculate the ROI/NPV that can be achieved through the use of PLM.

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