PLM adoption in SMEs context

Abstract

A Product Lifecycle Management (PLM) system is considered as a set of tools and methodologies to manage the evolution of product-related information and processes during a product's life cycle from the initial stage of conception to the last stage of product disposal. On the other hand, previous research [1] has provided different definitions for PLM, including that it is a business strategy to enhance the integration and collaboration activities during definition, sharing and usage of engineering data, i.e., wherever information is needed throughout the product life cycle. PLM as a business strategy is not only a key consideration for large companies, but is also becoming a must for small to medium sized enterprises (SMEs), who consider product development as a core competency [2].Due to competition and globalisation in the marketplace, working in supply chain networks has become essential for enterprises to have access to optimal information and communication technologies in order to enhance their performance. However, inspite of SMEs also being interested in the same technologies, problems in structuring prevent them from having good exchanges of information [3].When a company is planning to develop or implementing a PLM system, a key consideration for those responsible, is to complete a maturity assessment. Through the use of a maturity model, the company will be able to measure the level of implementation of PLM or the methods required to extend it [4]. In the authors' previous study [5], the maturity levels relating to collaboration between SMEs and Original Equipment Manufacturers (OEMs) was analysed. This maturity exercise, which had five levels, depicted the situation of collaboration from initial level to the optimal point. Based on the proposed PLM axes of Strategy, Organisation, Processes and Tools, it was possible to classify the activities of each level; this method of classification was important from the point of view of identifying the domain and personal responsibilities by activity.Given the situation that all SMEs, in following certain maturity level, are not the same, it is believed that maturity levels in themselves, are not sufficient to determine levels of collaboration and may need further adoption indicators of PLM to determine more precisely their correct level. The role of the 'Adoption' indicator of PLM in SMEs will be considered further in the next section and the effectiveness of these indicators, through the employment of probability methods, will be measured.The Proposed Methodology:

A PLM Vision for Circular Economy

“…In recent years, light and low cost PLM solutions have started to appear in the market for SMEs [12]. However, according to studies carried out by several authors [9], SMEs continue to consider PLM solutions complex, with high cost and high dependence on software services, which constitutes a barrier to the adoption of this technology. In this context, one of the biggest challenges in PLM is the reduction of costs related to IT technology and infrastructure investment, as well as the development of easy-to-use, intuitive software with features that are very oriented to the real needs of organizations, with the objective of enabling their adoption by SMEs, which represent 99% of the European Union's manufacturers [13].…”

“…Some companies are already adopting circular economy practices to create durable products that are easy to reuse or recycle and profitable, by devising a highly collaborative product development process that helps determining sourcing requirements, production methods, marketing, sales and other aspects of how products are created and managed at the end of their lives. However, these aspects are far from being a reality in PLM solutions designed for SMEs, and even in PLM solutions overall [8] [9]. The rest of the paper is organized as follows: sections 2, 3 and 4 cover a brief literature review regarding PLM and its main aspects: data and information management and collaboration; section 5 provides a vision for the support of Circular Economy in PLM; the paper concludes with final remarks on the contributions of this study, and interesting fields for further research.…”

PLM Adoption Model for SMEs

“…The first initiative of this work was conducted during the INTERREG project called "BENEFITS" where different adoption KPI's was identified [ 11]. On the basis of an analysis of the various studies carried out with several companies, it is possible to collect different indicators.…”

“…These indicators have been classified according to 4 axes identified through PLM definitions analysis. The 4-axis structure (Strategy, Organisation, Process and Tools) seemed clear and gave a good visibility to the impact of the indicators on the different levels of enterprise [ 11].…”

“…Based on this, organisation makes the decision to purchase and use this new technology [ 14]. Based on work done in [ 11] we developed the questionnaire according to adoption factors (Table 1.).…”