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Product Lifecycle Management |
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Page 5 of 7
Measure and Evaluate Product Lifecycle Management
In order to fully evaluate the impact of Product Lifecycle Management (PLM) initiatives it is necessary to undertake, where possible, a quantitative assessment of their impact and assign calculable values. The following provide some simple ideas on how PLM can be assessed:
- Supplier - Performance, in new product introduction (Quality) i.e. the difference between promised and actual level of quality in new product introduction A measure of the difference between the suppliers promised quality and the supplier’s actual level of quality provided. This can be used to assess the performance of the supplier for producing new products at an expected level of quality.
- Supplier - Performance, in new product introduction (Cost) i.e. the difference between promised and actual cost of new product introduction. A measure of the difference between the suppliers quoted costs and the supplier’s actual final costs. This can be used to assess the performance of the supplier for producing new products at an agreed cost .
- First Year Sales of New Products i.e., number of sales of new product in first year after launch.
- Product/Service Maturity sales i.e., number of sales or rate of change of number of sales per the 4 stages of product/service maturity. This can be used in verification studies of maturity stage analysis.
- Sales or Market Penetration of New Product or Service i.e. the turnover generated from new products or services in a given period, or
- % of sales turnover that is generated from new products or services in a given time period or,
- % of orders that are generated from new products or services in a given time period or,
- Sales turnover generated from new products or services as a percentage of total market sales value (Market Share)
- New product / service introduction rate i.e. the total number of new products or services launched over a given period or,
- New product or service introduction rate vs. competition or,
- New product or service introduction rate vs. industry standard.
This measure captures information on the rate at which a company is introducing new products or services.
- New product / service quality - Fitness for purpose i.e
- % of New Products or Services that are 100% 'Fit for Purpose' or,
- % of New Products delivered to the customer that are defect free or,
- % deviations of technical parameters from design specifications or,
- % deviations of marketability parameters from launch programme.
- New Product or Service Quality measures the extent to which the new product or service launched is fit for its intended purpose
- New product or service cost of quality i.e. the total cost of quality conformance (COC) in a given period or, the total cost of non-conformance to quality requirements (CONC) in a given period. The measure of New Product / Service Cost of Quality provides an indication of how well products and processes are designed in order to produce high quality products, and does so using common units of cost to allow comparability of data.
- Innovation - New product reliance i.e. the number of improved or new products in period as a % of total no. of products (product range) over period, or % total sales deriving from products launched in last n no. of years. This measure indicates the importance or reliance on new products as opposed to unchanged established products; it is also useful in the assessment of the effectiveness/performance of the product/service development process. The relevance of this measure will of course be influenced by the nature of the product and/or targeted market.
- Innovation - New product profitability i.e. the profit gained by new product in a given period as a % of the cost to produce them in a given period. This is a measure that provides an input to the assessment of the effectiveness/performance of the product/service development process and or the organisation's innovation strategies.
- Product – Life i.e. the length of usable life of product. This measure indicates the life of a product, as well as being a factor of customer satisfaction it can be used in predicting planning future production and also in new product launch strategies.
- Total Product/Service Lifecycle Cost i.e. the cost of the product from design to disposal.
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