PLM return on investment

There are a number of reasons that companies have not taken the plunge into PLM software.

Taking on PLM is a large project, not quite as large as an ERP but still large.  If your ERP implementation was difficult [they usually are], you may not be receptive to go through that hassle again.

If you have taken on other large projects that didn’t turn out well, you may not want to try again.

Implementing PLM requires a big commitment.  Realistically, you will not likely ever change vendors.  It is like a marriage – you and your vendor need to get along and for a long time.  Since your company will be making a big commitment, it would be in your best interest to have some upper management involved.

Look on the bright side.  If you do your PLM implementation right the first time [or mostly right], the return on investment can be significant.

  • Studies have shown      that engineers can spend as much as 25% of their time looking for      information.  Even if that number is      high [not realistic], the $ amount can still be significant.
  • Studies have shown      that in a paper based system, it can cost as much as $2,500 per      engineering change request just to manage it.  If your company generates as few as 10      change requests [orders] per month, you are looking at $300,000 per      year.  A PLM software solution can      reduce that cost by an order of magnitude.

You can purchase an ROI spreadsheet from to run the numbers yourself.

Contact me if you would like some help.


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