APICS - The Performance Advantage
August 1997 • Volume 7 • Number 8

PDM and ERP Continuing to Converge

An ever-growing interest in Product Data Management (PDM) and Enterprise Resource Planning (ERP) forms the major theme at this year's three-day CIMdata Conference in Los Angeles.

By Richard W. Bourke, CPIM


What do the developments in this software sector have to do with the typical APICS reader? This reasonable question can be answered quite simply. When PDM and ERP are effectively integrated — or interfaced — the manufacturing user should, to paraphrase an old maxim about "rights," should "get the right product information at the right time, the right place, and in the right amount." Sound familiar? Furthermore, as supply chain management techniques continue to move material at an increasing velocity, so must PDM be used to more effectively move information to meet the "rights" of the user.


Integration
Many of the PDM/ERP-oriented presentations, including case studies, substantiated the opening remarks of Ed Miller, president of CIMdata. Here's what he had to say: "The greatest single issue facing the PDM industry is resolving overlaps and conflicts with ERP, particularly in the sensitive issue of who owns the bill of material. Those outside engineering and manufacturing may wonder about all the fuss over simple acronyms. But users and vendors in PDM are wrestling with integrating their technology with ERP, because the outcome will dictate the future of both of these industries.

"When integrating PDM and ERP, there is no one correct answer, rather companies must take the time to examine their operations and carefully determine how PDM and ERP can best work together for them."

Although there is no single correct answer for integrating PDM and ERP, the technical difficulties are being overcome; but the cultural barriers are still being breached. The PDM interfaces to the larger ERP software systems are usually two-way, with alternative methods for updating and a wide range of supporting technologies. In most instances, the interface on the lower-end PDM package is simpler.

The concept of "enterprisewide" PDM permeates much of the thinking of the PDM community, which means focusing on one of the key integration points between PDM and ERP systems — the bill of material. In several conference sessions, ownership of the bill of material was a key issue. A general consensus does seem to be taking shape in that respect: PDM should own the bill in the design and development phases of the product life cycle, ERP after release to manufacturing.

More and more PDM vendors are announcing interfaces with ERP systems. Not surprisingly, most interface activity is taking place with the R/3 system of SAP. There are about a dozen certified PDM interfaces now available, or under development. Also not surprising, SAP initiated its long expected entry by announcing their R/3 PDM product at the show — the first ERP vendor to be an exhibitor at a CIMdata conference.

Baan, was indirectly represented by B. A. Intelligence Networks and its MANTA package, both acquired by Baan earlier in the year. In the future, the MANTA software will be fully integrated with the Baan ERP software to provide a one-stop solution for the combined needs of PDM and ERP.

Oracle, temporarily at least, seems a bit behind the power curve as its only available product is the two-way integration software with Sherpa. A planned product with Metaphase (now a part of SDRC) is in the future, perhaps later this year.


Implementation
Any reader who has been involved with an ERP implementation should be able to quickly relate to the implementation challenges heard and discussed at the conference: Management commitment, adequate education, team staffing and the scope of the project, to cite just a few challenges. Sound familiar?

The "scope" of a PDM project — the concern that being too ambitious will lessen the chances for success — is a valid concern among users. However, enterprisewide PDM is the refrain of many of the PDM vendors as they seek to widen their product offerings to meet customer needs and gain market share. While attractive from a vision standpoint, the reality of such ambitious undertakings causes PDM implementations to grow in budget needs and time to implement. As Miller clearly stated: "Focused solutions often get quicker acceptance and success."


Component supplier management
One form of focused solution pertinent to the typical reader's interest is the availability of a subset of PDM software called component supplier management (CSM). The capabilities of CSM software include storage of massive amounts of part data with the means to quickly retrieve needed information, including visuals, by numerous search criteria. The promise of CSM is to reduce design-to-manufacturing time and the number of new parts in the database. Many ERP implementors can attest to the frustrating conditions using a parts database containing duplicates, and the inability to search for common characteristics for a parts standardization effort. A CSM package may offer the ability to cleanse legacy data from a company's system. For instance, Tektronics reported a 20 percent reduction in its parts database through the use of CSM software.

The capabilities of these CSM third-party solutions for classification activity are definitely a cut above most ERP software capabilities. CSM vendors exhibiting included: Aspect Development, Mountain View, Calif.; CADIS, Boulder, Colo.; and International CompuTex, Huntersville, N.C.


Internet
A bright spot in the growth and acceptance of PDM is the burgeoning use of the Web to deliver product information to "the right user at the right time." Almost all exhibiting vendors demonstrated some level of Web browsing capability — or indicated immediate planned development — aimed at providing lower-cost access to product information than is often possible with exclusively in-house PDM systems. (Note: For a list of the PDM vendors, visit CIMdata's Web site at http://www.CIMdata.com)

The Web approach makes simple viewing and browsing of product information more affordable for the "casual" user who does not need the strength of the "power" user. The clear benefit of using the Web may well be to gain faster acceptance of PDM value. Again, thinking in terms of PDM vis-à-vis supply chain management, the use of the Web will undoubtedly accelerate the communication with suppliers and further reduce the information flow time in the pipeline.


A final thought
Since first attending a CIMdata conference in 1992, and three since then, I have witnessed steadily increasing interest in the relationship between PDM and ERP systems. Overlap of functionality of PDM/ERP systems may be a cause of conflict. Nevertheless, the manufacturing community gains the choices of even more options to tighten and smooth the flow of product information in the company — a true competitive advantage.

What is CIMdata?

CIMdata is an international consulting and market research firm that provides services for end-users and suppliers. The firm focuses on the areas of PDM, CAD and CAM, and offers Buyer's Guides, numerous related research reports, consulting, and two major conferences per year — one in the U.S. in the spring and one in Europe in the fall. Headquartered in Ann Arbor, Mich., the firm can be reached at (313) 668-9922.

What is PDM?

According to CIMdata: "Product data management" is a tool that helps people manage both product data and the product development process. In the simplest terms, PDM systems track the masses of data needed to design, manufacture, support and maintain products.

Also, "PDM is a general extension of techniques commonly known as engineering data management (EDM), document management and other similar names. PDM provides a common term, encompassing all systems that are to manage product data."


Richard W. Bourke, CPIM, is a consultant based in Pasadena, Calif., with extensive experience in all phases of systems planning and implementation. He has been reporting on the status of PDM for APICS since 1991. He can be reached at webmaster@lionhrtpub.com