For manufacturers and companies that need to source, design, produce, and sell products across the world, having a single source where data and processes are managed is important. You can achieve this by having a life cycle management system as the single source of truth for managing all aspects of products from the initial development to product retirement. What are the advantages of having life cycle management? The following are some of the important benefits.
Shorter Time to Market
When you centralize control over data, product development can be completed quickly. That is because design teams can work quickly and accelerate the transfer of design data and models to production. In areas where moving fast is critical, fast product development and a short time to market are necessary to remain competitive.
Reduced Compliance Risks
Another important benefit of life cycle management is the ability to manage a version of truth for all product data. That is necessary to eliminate compliance risks. In this case, the main advantage is cost prevention as businesses realize that the expense of product recalls, legal fees, and lost productivity if compliance is not an issue.
Decrease Costs
By utilizing the potential of collaborative design, you open the opportunity to reduce both production costs and material. That is because the up to 70% of the product is decided at the design stage. With life cycle management, there is a decrease in scrap costs and prototyping because of the single source of data. Also, it reduces retooling expenses that depend on the extent of product reuse.
Increase Productivity
For businesses that do not currently utilize life cycle management, implementing one can eradicate time-consuming activities. For instance, replicating data across a wide range of systems, checking information for irregularities, and searching for missing data can easily be done. Also, any person working in operations or product development, they are likely to come across processing errors and associated rework that is caused by the use of out-dated information.
Accelerate Revenue Growth
Life cycle management has come to a point where its return on investment is providing real business benefit. As you know, the major ways of increasing earnings are through cost reductions and revenue growth. You should note that revenue growth is more influential than cost reductions as far as profit contribution is concerned. Remember that you are in business to make a profit, and that explains why you should implement life cycle management.