PLM Interest Group

 
       
 

Home

Discover

Excellence

 

Financial

Governance

Support

 

Store

Map

Contact

 
       
 
 
 

Financial Competence in PLM

 

It is not true that PLM is somehow "unquantifiable".  You can calibrate PLM in detailed financial terms, and integrate PLM with the financial performance of your business.

   

 

This process of financial management begins with project justification, creating proposals that can be approved on purely financial grounds.

 

It extendeds via metrics and integrated accounting to show PLM benefits that appear in the published Annual Report.

 

The PLMIG can provide the toolsets and the guidance to enable you to reach this level of financial control. A corporate PLM spend can run into millions of dollars. Everyone will gain if it can clearly be shown that the spend is worthwhile.

 
 
 
 

 

Tools and Methods

 

Once the general principles are understood, the rest comes down to determination, because doing the calculations requires effort; and discipline, to keep following the methodology.

The PLMIG provides 3 main tools to guide you through the process:-

 
PLM Justification Handbook
A complete methodology to evaluate and quantify the current and future benefits of PLM; to build these into proposals for new PLM projects; and to establish metrics to show that targets have been achieved.
 
PLM Delivery Handbook
Enables you to scope out and quantify the aims and KPIs of PLM projects, and partner with vendors and service providers to prove that they have been delivered.
 
Accountancy Overview
A simple but comprehensive textbook that provides PLM Managers with a basic grounding in Accountancy, enabling them to work credibly and effectively with their Finance Department colleagues.
 
 
 
 

 

PLM Justification

 

The PLM Justification Handbook contains a standard, neutral methodology to quantifiy the costs, benefits and commercial value of implementing PLM.

White Paper  

The Handbook and its supporting toolset contain a neutral methodology to quantify the costs, benefits and commercial value of PLM in purely financial terms.

The complete toolset enables you to prove to the Board that PLM is worth doing for purely financial reasons.  It includes all of the instruction documents and templates that are needed to produce the final submission.

 

This makes it possible to identify real financial metrics that will support your next PLM project or capex submission.  The techniques are logical, thorough, and work in every PLM situation.  The methodology can be can be applied equally well by users and vendors.

Take the "leap of faith" out of proposals for PLM enhancements by quantifying the full benefits and rate of return.

Read the full story >>>

 
 
 
 
 

 

PLM Delivery

 

The PLM Delivery Handbook enables users and their suppliers (vendors, systems integrators or consultancies) to work together to define target benefits for PLM adoption.

This takes Justification to a new level, enabling vendors and advisors to collaborate in the process and commit to achieving the results.

Survey  

The Handbook adds a collaborative 'front end' to the PLM Justification methodology, and enables the user and vendor to participate not only in the ideation and discovery, but also in the detailed calculation process.

 

The 7-Step PLM Delivery methodology enhances the vendors' own 'discovery' processes, and makes their time spent on site more productive. From the outset it avoids wasted effort by ensuring that all the pre-requisites are in place before detailed discussions start.

 

This enhances vendor involvement and reinforces the drive to achieve targets.

The fact that both user and vendor have calculated the target benefits, and feel confident to endorse them in writing, is a major boost to gaining approval.

Read the full story >>>

 
 
 
 
 

 

Financial Understanding

 

If you want to produce a solid financial justification for your PLM projects then you will need to work with the accountants in the Finance Department.  Only they know the figures that you need for the calculations.

Survey  

With a minumum of effort, PLM Managers can learn enough to debate with their Finance Department colleagues on equal terms.

 

 

The Accountancy Overview explains the accountancy principles used even by the largest corporations, with easy-to-follow examples.  It enables the PLM Manager to work constructively and knowledgeably with Finance Department colleagues.

When you can talk to them on this level, and involve them in the process of quantifying the financial effects of the PLM benefits, they take on ownership of the figures and are motivated to support them.  For the first time, your Finance Department colleagues will no longer be "obstacles to be persuaded", but will be on board and supporting you.

Read the full story >>>

 
 
 
 

 

Monetizing PLM

 

Whether you prefer 'Monetize' or 'Monetise', the effect is the same - to gain such complete control of your PLM financial benefits that the Board asks for more PLM projects to help achieve the company's business aims.

It just takes the will to move PLM up to a more advanced level, following the methodology.  By developing the depth of PLM financial management, and integrating with the ongoing accounts of the business, PLM targets and results become visible. PLM is no longer a "hidden asset", but part of mainstream business management.

This enables you to look at PLM in purely strategic terms, not just for product management but from a pure, high-level business point of view.  The Board looks at how the corporation is structured; how the various divisions relate to each other and to the market; the future position the business is aiming for; and what needs to be done to enable this.  When you have monetized your PLM, you can reshape it to meet the Board's vision of the business future.

 
 
 
 
 

Related Pages
 

 

Getting Started

 

Thinking about PLM in purely financial terms requires a completely new mindset.  The initial drivers to implement PLM are obviously related to the product and the lifecycle, but focusing on financial outturns provides new insights and opportunities.

Applying these toolsets will enable you to reorient your implementation onto a proper financial footing, and take advantage of the performance benefits that this brings.  This is the level of financial management and control that every implementation should achieve.

The toolsets can be purchased directly from the Store.  The toolsets are also part of the full set of PLMIG material provided by PLMIG Membership.

When you have reached this level, you can then go on to Monetize Your PLM.

 

Find Out More

 

For more information contact .




© Copyright 2024 PLM Interest Group

 
     

[Back]   [Top]

  <<< Return Home