PLM Top PLM Requirements, Features and Functionality By Christina George PLM 2 comments Last Reviewed: November 22, 2024 Ever sit back and ask yourself: Why are our PLM workflows mediocre? Or why are we still working with the same outdated PLM software? Sounds like you need a new system with updated PLM requirements. Say no more! We’ve got the full rundown of recommended features, primary benefits and the best PLM evaluation techniques to jumpstart your search. Let’s get started! Get our PLM Software Requirements Template PLM Requirements Checklist Bill of Materials (BOM) Management Maintain consistency by connecting your BOM data to CAD metadata, creating assemble-to-order processes and building a bill of process. Manage multi-level BOM processes, define BOM usage and visualize BOM structures in 3D. Learn more Change Management Set up a change approval process using change management templates and track change-related data using a dashboard and change history. Communicate with your design, engineering and manufacturing teams via change orders, notices and requests. Learn more Compliance Management Keep your ducks in a row with built-in CAPA and NCMR, FDA, REACH and RoHS, conflict materials and WEEE compliance. Meet sustainability standards using carbon footprint analysis and monitoring sustainability metrics. Learn more Design Management Create artwork and VR models that meet engineering, product and ingredient information. Compare 3D models, manage eCAD items, add feedback to CAD drawings using annotations and set up a review process for CAD models. Learn more Document Management Organize your documents using a hierarchical table with clearly defined relationships. Classify, collaborate on, search for and markup documents. Create new documents from built-in templates, from scratch or by dragging and dropping certain elements. Learn more Packaging and Label Management Streamline labeling by creating allergen statements, label sets, ingredient statements and label templates. Standardize your packaging with a consolidated database, approval workflows, detailed packaging components and defined target weights. Learn more Part Management Make it easier to build ingredient statements with a part catalog and part classification and search capabilities. Automate parts numbers, track lots or batches and manage parts. Learn more Platform Capabilities Ensure your overall needs are met with the best of the basics including audit trails, custom fields, multiple currencies and languages, notifications and a UX responsive to any device. Learn more Project Management Build and manage projects using templates and tools like Gantt charts, task management and work breakdown structures, scheduling and planning. Analyze costs, set cost targets and centralize products and processes. Learn more Quality Management Implement quality control measures across the shopfloor using the 8D methodology, Six Sigma and root cause analysis. Access quality issue insights, use APQP and FMEA tools and quality process templates and assign scores for risk scoring. Review product quality actions and processes and use built-in risk mitigation to minimize defects. Learn more Recipe and Formula Management Manage a catalog of recipes efficiently by creating and editing recipe formulas, recipe testing and templates. Ensure consistency even with ingredient substitution. Learn more Reporting Get real-time insights with reports and dashboards that highlight KPIs. Spot trends in production efficiency, inventory and finances to make smarter decisions. Learn more Requirements Management Apply product configurations to requirements, edit requirements concurrently, and analyze and capture requirements from multiple sources. Manage your requirements by planning, tracing, verifying and reusing requirements. Learn more Supplier Management Access approved vendor lists, manage Supplier Corrective Action Requests (SCARs) and view global supply chain data and supplier risk assessments. Add product data, collaborate with suppliers and view their information using the supplier portal. Learn more Here’s what you’ll get from this post: A handy checklist to ensure you don’t miss any essentials. A free PLM software requirements template to get started. Tips from PLM experts to get the most out of your requirements-gathering process. We’ve onboarded over 100,000 users into our software selection platform, and, in the process gained a wealth of insights into their usage patterns based on industry, company size and user persona. By leveraging this data, we’ve identified key features you should consider to minimize the risk of selecting the wrong software. Our goal is to empower you to benefit from the collective experience of your peers who’ve embarked on the same journey before you. You can use this guide as a template for deciding what your business needs from its next system. Create a custom PLM requirements checklist to find the right fit for your business needs. Key Requirements and Features Review our thorough, though not exhaustive, list of must-have PLM requirements. 1. Bill of Materials (BOM) Management Having a common source of information across your company is incredibly important during product development. That’s why a bill of materials (BOM) is vital to include in your list of PLM requirements. At the very least, your system should provide a single definition of a particular product and its components. More advanced options include features specifically designed for designers, engineers and other professionals who frequently collaborate. Mark Fong, a manufacturing expert and CEO of Siltoll, said BOMs help in “avoiding errors, streamlining processes, and maintaining consistency throughout the product lifecycle.” A preview of Fusion Lifecycle’s BOM tool. Vladimir Terekhov, CEO of Attract Group, said practical BOM management tools “are crucial because they ensure all materials required for production are available when needed, reducing downtime and preventing costly delays.” Assemble-To-Order Auto-Generate BOM Automatic BOM Linking to CAD Metadata Bill of Process BOM Visualization Configure-To-Order Define BOM Usage EBOM and MBOM Change Synchronization Engineer-To-Order (ETO) Multi-Level BOM Management Plant-Specific Attributes on MBOM Transform EBOM To MBOM 2. Change Management Determining project phases, delegating milestones, setting approval processes and monitoring changes keep projects on track. Some systems have a dashboard that allows users to see all pending and implemented changes and all items that endure the subsequent effects. Use configurable workflow templates to smooth out transitions for changes in processes and send out engineering change notices, orders and requests for clear communication. Fong said this PLM tool “ensures transparency, helps understand the impact of changes, and maintains documentation for compliance purposes.” A preview of change management tools. Source Terekhov said a change management tool can “maintain the integrity of the product, ensure all modifications are recorded, and help in the smooth transition of product versions or iterations.” Your PLM system can identify risks within your portfolio, enabling you to deal with them before they become more significant. Capture Deviations Change Approval Process Change Management Dashboard Change Management Template Engineering Change Notice Engineering Change Orders Engineering Change Requests Impact Analysis Manufacturing Change Order Track Changes Get our PLM Software Requirements Template 3. Compliance Management Keep all your i’s dotted and t’s crossed with PLM-powered audit management, where you can hold external and internal audits that meet specific standards. Close the door on pesky fines (or worse) with CAPA and NCMR, FDA, REACH and RoHS, and WEEE compliance. Make your ESG auditor’s life much easier with an analysis of greenhouse gas emissions for each product and trackable sustainability metrics. Assess Product Carbon Footprint Audit Management CAPA and NCMR Compliance Conflict Minerals Compliance FDA Compliance ISO Standards REACH and RoHS Compliance Track Sustainability Metrics WEEE Compliance 4. Design Management At the intersection of innovation and creation lie numerous design tools, such as electrical CAD management, design variation comparisons, and CAD drawing annotating tools for easy team sharing and collaboration. Review 3D CAD renderings, create digital twins, and design and simulate virtual models. An example of electrical CAD management tools. Source Mark Haas, food and beverage product expert and founder of REGULATE PLM software, stated, “designing a great product is good and designing a product the market demands is great. PLM systems excel at collaborating at the intersection of product market fit.” Fong mentioned that vital design management tools enhance design team collaboration, version controls, and efficient document sharing, resulting in “a more streamlined and organized product design process, reducing errors and enhancing creativity.” Artwork Design and Proofing Compare Design Variation Findings DFMA Digital Twin Electrical CAD Management Mark Up CAD Drawings Using Annotations Multi-CAD Mechanical Design Management Review and Approve Changes To CAD Models Share Marked-Up CAD Files Simulation Management View 3D CAD Renderings Virtual Modeling 5. Document Management Copy, edit or create new document versions. Group similar files into categories for more straightforward navigation. Search for files with filters like type, version, part, user, status and more. A preview of a PLM document dashboard. Source Terekhov explained that this PLM requirement is “key for streamlining access to critical information, enhancing collaboration, and ensuring that everyone is working from the most current set of documents.” Create Documents Document Classification Document Collaboration and Markup Document Locking and Unlocking Document References Document Search Document Structure Document Templates 6. Packaging and Label Management Production doesn’t end when a product leaves the shopfloor. You’ve still got to wrap it up in a pretty package (and make sure it’s labeled accurately). Add allergen statements, proof the graphics and artwork, create label sets and generate label ingredient statements. Proof artwork and set approval workflows. Source Allergen Statements Artwork Proofing Create Label Sets Generate Labels in Multiple Languages Label Ingredient Statements Label Templates Packaging Approval Workflow Packaging Database Packaging Specification Regulatory Compliance for Labels Target Weight Get our PLM Software Requirements Template 7. Part Management Finished products are made up of a whole lotta parts. The right PLM tool will help you keep those parts organized by numbering them automatically, tracing lots and building a parts catalog. Manage your part database by creating parts, classifying and searching for attributes, and deleting the whole part or some versions of a part. Automated Parts Numbering Auto Part-Name Generation Part Creation Lot or Batch Traceability Part Classification and Search Capability Part Deletion Part Quality Part Catalog 8. Platform Capabilities Like a well-put-together wardrobe, your new PLM solution should have all the basics. That means you need audit trails for transactions, custom fields, multiple currencies and languages, notifications and device-optimized views. Audit Trails Custom Fields Multiple Currencies Multiple Languages Notifications Responsive Design 9. Project Management Use equipped templates, stage gates, milestones and other project management tools to streamline workflows. Track real-time deliverables. A preview of a project management’s interface. Haas described consolidating project details into one hub as critical. [Recipe management tools] ensure consistency in product formulations, compliance with regulatory standards and efficient management of ingredients, reducing the risk of errors and ensuring product quality. Vladimir TerekhovCEO, Attract Group Cost Management Program Management Project Management Templates Project Management Tools (i.e., Stage and Phase-Gate Organizations, Gantt Charts and More) Project Planning Project Schedules Real-Time Project Deliverable Tracking 10. Quality Management Failing to follow regulation and compliance standards is one of the quickest ways to earn your business a bad reputation. But having the right tools built into your PLM system can make hitting your quality metrics much more comfortable than it would be otherwise. A preview of quality management software. Source Maintain compliance for Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), Restriction of Hazardous Substances (RoHS), FDA, ISO, Sarbanes Oxley, and more. Fong declared that quality and compliance management tools “provide insights for continuous improvement, reducing the risk of defects and enhancing overall operational efficiency.” 8D Methodology Quality Issue Insights Quality Planning Quality Process Template Quality Risk Scoring Records Product Quality Action Review Quality Processes Risk Mitigation Root Cause Analysis Six Sigma Get our PLM Software Requirements Template 11. Recipe Management Enhance your PLM evaluation with recipe management tools that develop label sets, manage specific recipe tests and construct variations. Manage material databases and catalogs in one place. An example of recipe management tools. Source Fong said recipe management features are ideal for the food and beverage and pharmaceutical industries. [Recipe management tools] ensure consistency in product formulations, compliance with regulatory standards and efficient management of ingredients, reducing the risk of errors and ensuring product quality. Mark FongCEO, Siltoll Allergen Management Create and Edit Product Recipe Formulas Create Different Recipe Versions Ingredient or Formula Templates Manage Recipe Trials Recipe Object Search Update and Substitute Ingredients 12. Reporting Develop BOM, requirements, and custom reports in one centralized system. Share reports with internal and external stakeholders. A preview of reporting tools. Terekhov said reporting tools can gather valuable insights “for performance tracking, trend analysis, and informed decision-making, which are crucial for continuous improvement.” Fond stated that this tool creates reports for “project progress, change history, BOMs, compliance status and more. These reports provide actionable insights for overall project management.” BOM Report Custom Dashboard Custom Report Export Reports Quality Dashboard Quality Report Requirements Report Report Scheduling Share Report 13. Requirements Management Capture vital information from documents, spreadsheets, PDFs and other formats. Obtain requirement data, statuses and product team changes. An example of requirement management tools. Source Fong explained how this tool diminishes risks. Requirement management tools ensure product development aligns with customer needs and project objectives. They facilitate traceability, change management and efficient communication of requirements across teams, reducing the risk of misunderstandings or deviations. Mark FongCEO, Siltoll Apply Product Configurations to Requirements Capture Requirements Concurrent Requirement Editing Use Multiple File Formats for Requirements Capturing Link Design Inputs With Design Outputs Product Variant Management Requirement Analysis Requirement Planning Requirement Traceability Requirement Verification and Validation Reuse Requirements Types of Requirement Management 14. Supplier Management Ever wanted to go back in time and vet your suppliers before you had an inventory emergency or substandard materials delivered? That’s why supplier management is a PLM requirement — stopping vendor-related catastrophes before they happen, so you don’t need a time machine. Access approved vendor lists, view supplier material declarations and view supplier quality processes. Improve communication with Supplier Corrective Action Request (SCAR) management and a supplier portal. Approved Vendor Lists SCAR Management Supplier Collaboration Supplier Material Declaration Supplier Portal Supplier Quality Processes Get our PLM Software Requirements Template How To Conduct an Effective PLM Evaluation Choosing a new system is like choosing a new car. There are so many models and accessories available that it becomes overwhelming. Thankfully, SelectHub has a straightforward approach to picking your new software: Lean Selection, a nine-step methodology. Establish: Understand why you need a new PLM system. Take time to determine what’s stopping you from reaching your goals or causing bottlenecks. Collaborate: It’s easy to take on this journey solo, but you need a committee of executives, department leaders, and business partners to create a practical features and requirements list. After all, ten or more heads are better than one. Define: Set a solid features and requirements list — a wishlist of the most-requested features, functions and capabilities you need this program to do — to gauge various solutions and vendors. Distribute: Craft a shortlist of vendors and review how they best meet your requirements list. Justify: This stage permits you to review your vendor shortlist and determine one of three possibilities: Do you want a brand-new solution? Do you want add-on modules for your current system? Do you want to stick with your existing software and end your quest here? Prove: You’re scheduling demos, requesting proofs-of-concept (POCs) or reviewing use cases to see how a vendor can back up their requirements score. If the vendor doesn’t offer these methods, it’s clear to move on to the next supplier. Rank: After scoring demos, rank providers based on the demos, requirements score, and total cost of ownership (TCO). You may also remove unnecessary suppliers from your list. Negotiate: Now, you should have two to three vendors to choose from for implementation. Sit with one of your choices and review their agreements. If the contract seems sketchy or awry, take it to a lawyer or law firm for review. If you like the terms, go ahead and sign. If not, repeat this step with your other two choices. Sign: When you reach a suitable agreement, you can sign with the vendor and initiate a proper implementation plan. This process ensures an organized ebb and flow so you choose the perfect program the first time. What the Experts Have To Say Before sharing our evaluation criteria on the World Wide Web, we did some due diligence. As with anything you see on the internet, we don’t expect you to just take our word for it. We reached out to PLM experts for their insights on the criteria they use to grade PLM tools. Here’s what they had to say. Danielle Lambert, a Product Development and Sourcing Management Specialist at SMART IN PLANNING, looks for a consistent tool that can grow with the business and is simple to use. She said: The right tool should synchronize with other systems within the business and current tools being used with integration add-ons available to support scale as a smaller business grows, and requires a more comprehensive approach. It should be simple to use and train new employees that are on-boarded and contain all relevant data points. Additionally, there should be no integral changes to the system that may make it obsolete or more expensive in a short period of time, hindering upgrades, or making it more difficult to recruit people who would already be familiar with a system (ie. the ability to ‘import’ required skills for growth). Ideally, a PLM tool should be flexible, with options to add more modules as required and have some ability to align custom fields to business needs or terminology, without requiring actual customization. Danielle LambertProduct Development and Sourcing Management Specialist, SMART IN PLANNING Haas mentioned some other vital requirements to pick and choose from in the PLM evaluation process. When choosing a PLM system, prioritize features like project budgeting and return on investment, which are crucial for steering projects toward profitability. Effective governance and decision-making capabilities are key to keeping projects on track. Ensure the PLM offers seamless API integration to enable smooth data exchange with your financial systems or ERP. Mark HaasFounder and CEO of the AI-powered PLM system, REGULATE And when searching for a new PLM system, Fong said, “prioritize scalability, ease of integration, user-friendliness, vendor support and alignment with industry-specific needs. Consider a phased implementation approach [and] involve key stakeholders.” Get our PLM Software Requirements Template FAQs What are some PLM requirements? Some PLM requirements include: BOM management Change management Program planning and project management Reporting And more! What does PLM mean? PLM stands for product lifecycle management. What are the three main elements of PLM? Three main elements of PLM are: People Processes Technology What is requirement management in PLM? Requirement management, as our SMEs mentioned, ensures products meet client needs and company objectives. Why is PLM needed? PLM is needed to create and manage a product’s lifecycle effectively from beginning to end. PLM software can ensure effective collaboration, designs, simulation and more. Some PLM benefits include: Increasing productivity Boosting revenue Improving product quality Reducing costs Does PLM include CRM? Most PLM systems don’t include CRM, but you can find CRM tools that integrate with PLM software for effective centralization. What is PLM documentation? PLM software offers document management and reporting tools to create and arrange files by different filters. You can create BOM, requirement or custom reports and share them with colleagues, stakeholders and more. What is the basic architecture of PLM? PLM software acts as a consolidated database that hosts multiple modules, such as recipe management, reporting, BOM, quality and compliance management, and more. What's the difference between PLM and PDM? Product data management (PDM) software gathers and centralizes product data. PLM focuses on every product lifecycle stage. This system also includes manufacturing, engineering and design tools. What are some benefits of using PLM tools? We turned to our experts to find out why companies should use PLM tools. Fong said PLM software “accelerates time-to-market, improves regulatory compliance, enhances risk management and supports sustainable practices by optimizing the entire product lifecycle.” Terekhov added that PLM software can also “foster innovation by managing intellectual property in a structured way.” PLM tools can also help your business in the following ways: Increase Productivity: Think of this program as an extra set of eyes. It monitors every phase in a product’s lifecycle, enables you to input changes quickly and refreshes data in real-time to keep everyone on the same page, which boosts productivity and diminishes bottlenecks. Boost Revenue: When you surge productivity, you get products out to your clients sooner. This expedited market time increases revenue and boosts customer satisfaction sky-high. Improve Product Quality: Several quality-based modules help gauge every product’s worth and permit you to align with local and standard compliances. The better your product quality is, the more loyal clients you’ll gain. Reduce Costs: A centralized solution like this saves plenty of overhead expenses, material and prototype fees, and more. You also save time because you can automate tasks and input real-time data. Enhance Supplier/Company Collaborations: If a product is on recall or you need to make additional revisions to a product before allocation, you can immediately alert suppliers, internal and external stakeholders, manufacturers and executives, and apply the necessary changes across the board. Get our PLM Software Requirements Template Next Steps Finding the best PLM requirements to meet your product development needs is paramount to your company’s success. PLM software offers many must-have features, including BOM management, reporting, recipe management and more. Ready to take the next step? Review our free requirements template to create a shortlist of your much-need PLM tools according to company size, industry, number of employees and more. Which PLM requirements have streamlined your operations? What are your essential PLM software tools? Let us know in the comments! SME Contributors Vladimir Terekhov is the CEO of Attract Group, a company specializing in custom software development, including ERP and PLM systems. Terekhov is an experienced IT entrepreneur specializing in digital transformation and managing software development teams. He earned master’s degrees in computer systems and networks and innovations management from Donetsk National University. Mark Fong, CEO of Siltoll, is a professional manufacturer of lighting fixtures and an advocate in the lighting industry with an education from Hunan Industrial Vocational and Technical College. Fong ensures compliance with ETL, UL, CE, RoHS, PSE and other certifications. He engages in deep, strategic collaborations with major global brands and offers expert guidance on global lighting market trends and business expansion. Mark Haas, founder and CEO of the AI-powered PLM system REGULATE, has nearly 30 years of food and beverage CPG under his belt. Haas has held executive positions for Hain Celestial, Kashi, Kellogg’s, Annie’s and Thomas Keller Restaurant Group. He created REGULATE because he believes in PLM management and how the concepts can apply to other industries outside of food and beverage, such as apparel, shoes, pharmaceuticals and more. Danielle Lambert is the Product Development and Sourcing Management Specialist at SMART IN PLANNING, a boutique merchandise planning and inventory management consultancy. She has over 30 years of experience in the fashion and consumer products industry, where she’s made her mark by focusing on delivering results through targeted brand strategy, product management, and business development within retail and wholesale businesses. Christina GeorgeTop PLM Requirements, Features and Functionality08.15.2024