# PLM (Product Lifecycle Management)

> Source: https://netray.co/glossary/product-lifecycle-management
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Glossary

## Short answer

Product lifecycle management (PLM) is software that manages product definition data from concept through design, release and retirement: CAD models, engineering BOMs, documents, revisions and change approvals, then hands released data to ERP for production.

## Aliases

- PLM
- PLM software
- product data management
- PDM

## Category

manufacturing

## Full Definition

PLM is the engineering system of record. It stores CAD and documents under version control, structures the EBOM, runs the ECR and ECO workflow, and tracks which revision is released. Product data management (PDM) is the narrower file and revision-control subset, often tied to a CAD tool.

ERP is the operational system of record: inventory, orders, planning, cost and finance. The two overlap at the item master and the BOM. The typical pattern is that PLM owns design intent and change history, and ERP owns plant-specific manufacturing data. Released items and BOMs flow from PLM to ERP, and cost, status and supply information may flow back.

Integration is the hard part. Mismatched item numbering, different BOM structures (EBOM vs MBOM), and revision handling cause most failures. Common tools include Siemens Teamcenter, PTC Windchill, Dassault ENOVIA and SOLIDWORKS PDM, each with connectors or APIs to ERPs such as SAP, Infor LN or NetSuite.

PLM is not required for every manufacturer. Small shops with simple products often manage revisions in ERP and a document folder. The need grows with product complexity, regulated change control and multi-site design.

## Why It Matters

- It gives engineering one controlled source for design data instead of scattered files.
- Regulated sectors need evidence of change approval and revision history.
- A clean PLM to ERP release removes manual re-keying of items and BOMs.
- Consolidating design data enables faster reuse and fewer duplicate parts.

## In Practice

An electronics manufacturer releases a new board revision in PLM. An integration creates the new item revision in ERP, loads the MBOM with effectivity by work order, and flags open orders on the previous revision for review. Without the integration, a planner re-keys 80 BOM lines and one is usually wrong.

## Faq

### What is the difference between PLM and ERP?

**Answer:** PLM manages how a product is designed and changed. ERP manages how it is bought, built, stocked, sold and costed.

### Is PDM the same as PLM?

**Answer:** PDM manages design files and revisions. PLM adds BOM management, change workflow and lifecycle processes across departments.

### Do small manufacturers need PLM?

**Answer:** Often not at first. If revisions and BOMs fit in ERP and change volume is low, PLM adds cost without much return.

## Search terms

what is PLM, product lifecycle management, PLM vs ERP, PLM software manufacturing, PDM vs PLM, PLM ERP integration

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