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Project Lifecycle Management Implies Long Term Value; Forget the Total Cost of Ownership Fuss
Michael Bittner - September 28, 2005

Background

Product lifecycle management (PLM) software vendors are consistent in their belief that PLM applications software is well worth the investment because the life cycle costs of new product design and initiation (NPDI) are inherently weighted at the front end. Therefore the better job a company does in managing an efficient process toward NPDI will imply considerable cost savings over time. After a product launch, there are additional and significant gains that can be achieved by properly and efficiently managing the product life cycle through product retirement, but the real nugget for most manufacturers lies in the front-end of the product design and development cycle where an average (over multiple long NPDI industries) of over 80 percent of the costs resides...


 
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