Gap Seen between Manufacturers, Vendors on Value of Digital Manufacturing Technology

Manufacturing Insights survey reveals agreement on ECO reduction, but disconnect on value of configuration management, product data management

Manufacturing Insights survey reveals agreement on ECO reduction, but disconnect on value of configuration management, product data management

Framingham, MA — April 26, 2006 Manufacturers and software companies have different perceptions of the value of digital manufacturing (DM) and product lifecycle management (PLM) solutions, exposing a disconnect that reflects the fragmented nature of this market, according to a recent survey conducted by technology research firm Manufacturing Insights.

Although vendors and manufacturers agree that the most important value of PLM/DM tools is in reducing the number of engineering change orders (ECOs), their perceptions differ regarding other DM components, Manufacturing Insights reported.

Specifically, manufacturers perceive value in components such as configuration management and product data management (CM/PDM), improving reuse, improving supplier collaboration and "design for x" (DFX), whereas vendors cite innovation as a major value function of DM.

The purpose of the study, one in a series of reports describing how to incorporate product life-cycle economics (PLE) and define a successful PLM/DM strategy, is to assess the perspective and the maturity of the market adopting PLM/DM solutions.

"The overall PLM/DM software market continues to grow year over year but is fragmented, and there is still a long way to go for both the vendors and manufacturers," says Joe Barkai, director of product lifecycle strategies for Manufacturing Insights and author of the report. "Manufacturing organizations have yet to reach the appropriate levels of maturity to fully exploit the benefits offered by a complete PLM/DM strategy . Manufacturers and vendors need to work together to define and deliver measurable value. This will, in turn, create a positive return on investment for all involved."

These findings, and recommendations for manufacturing companies as well as PLM/DM tool vendors, are part of Barkai's recently published report entitled "Product Life-Cycle and Digital Manufacturing Software — Industry Maturity Study and Lessons Learned," available online at the Manufacturing Insights Web site.
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