SAP PLM – the Key to Efficient Manufacturing and Production


Uninterrupted and errorless cycles of production, automated quality and validity checks, 24/7 tracking of production lines, instant reports, and bug identifiers – that’s what manufacturers crave when having to deal with yet-another-issue in the factory.

Every business involved in manufacturing is aware of sudden disruptions and disparities in production, which lead to chaos in the product cycle and financial losses. It creates the need for solutions that help to organize the production cycle, anticipate and avert risk, and streamline the entire production cycle.

One such tool is SAP PLM, a globally implemented software that brings efficiency and resilience to every business involved, thus improving its manufacturing and financial performance on a global scale. Let’s learn how it works.

What is SAP PLM?

SAP is a set of business-dedicated modules capable of handling all aspects of business functioning – from finance and HR to warehouse and inventory management. Due to its module-based nature, SAP allows businesses to build their digital structure step-by-step, adding every other module once there is a demand.

SAP Product Lifecycle Management (SAP PLM) is one of the functional SAP modules that transforms and optimizes the manufacturing process bringing in automation, centralized data sharing, and a streamlined chain of activities within the product life cycle. SAP PLM is a comprehensible toolset to be used for discrete and process industries, benefiting the performance of both.

Why Does the Manufacturing Industry Need SAP PLM?

The manufacturing process is always a challenge as it involves numerous stages of production, and requires an unparalleled level of focus and attention. Considering the competitive nature of the commercial world, errors in production are inadmissible, as they cost money and what’s worse is the reputation.

PLM software is the only tool that can help manage multiple facets of production across cross-functional teams, and address all the aspects of product portfolio. Put simply, SAP PLM is the tool that arranges an end-to-end manufacturing process and speeds up the time-to-market. Such a level of coordination increases the company’s productivity and elevates its revenue.

The beneficial sides of SAP PLM are adjusted according to the company’s needs and are always arranged with the SAP integrators.

What Are the Benefits of SAP PLM for Manufacturers?

1.   Coordinated network of production

Manufacturing, like no other industry, requires an absolute level of organization and communication between all the points and stages of production. Since the majority of manufacturers (especially discrete) feature diffused locations, streamlined cooperation between them is one of the major challenges for management.

SAP PLM introduces a new approach to coordination – ‘single system-multiple controls’.

SAP PLM is a unified system that brings together all the manufacturing assets and lets them coordinate with each other through a single platform. It is a time- and production-efficient approach, as it allows direct communication and full visibility into the process without the need to spend time on countless intermediaries in data sharing.

2.   Streamlined production

Every product before reaching the customer, goes through numerous stages of formation; every detail matters and complements the finalized product.

When the process is mainly based on manual control, it is prone to inefficiencies, however attentive the employees are; it is important to introduce automation and full visibility into the production line, to keep track of all the actions.

SAP PLM offers an end-to-end visibility of the manufacturing process, which enables businesses with 24/7 control, and lets them anticipate and resolve the issues in the earliest stages of production before the whole line of products gets defects or worse, reaches the clients.

3.   Minimized level of flawed products

As every production cycle is streamlined and easily traceable, all the minor inefficiencies can be instantly noticed and addressed, thus, minimizing the level of defective production, and increasing the overall quality of the finalized goods. Moreover, in the case of a defective batch, it can be tracked down and called out to avoid customer dissatisfaction.

4.   Cost management

Cost management is one of the vital parts of production

SAP PLM offers the team a holistic approach towards price formation. Due to the usage of a unified database, the manufacturer can analyze the available inventory and make appropriate changes to the BOM for the next cycles of production, avoiding over- or under-buying the raw materials and thus, regulating the levels of inventory.

5.   Data-driven decision

The manufacturing industry is dependent on timely decisions and instant issue-solving. However, if all the information is shared through tons of documents and reports, not to mention the oral exchange of information, it significantly decreases the manufacturing potential, and lowers its speed, efficiency, and quality.

Instead, in the era of booming technologies, there is a better solution – AI algorithms.

SAP PLM, propelled by AI-based algorithms, provides businesses with timely reports into production speeding up the decision-making time and thus, improving the overall functioning of the production line. SAP PLM introduces the era of informed decision-making and maximized output of manufacturing.

6.   Scalability and extension

SAP PLM is an excellent solution for any kind of manufacturing, regardless of the size, as it can be adjusted and extended according to the current demands. In the case of production growth and extension, SAP PLM allows adding new lines and stages of production and control, thus, forming a modernized manufacturing process.

However, the scalability doesn’t stop there. SAP PLM is a part of a big ‘family’ of SAP modules. While it can be used as a stand-alone solution, it can also become a part of a unified SAP S/4HANA  system, and form a completely digitized structure of a company.

Such a comprehensive approach and system can be introduced to the company with the help of a professional team of SAP integrators from LeverX.

LeverX is an international company with vast expertise in SAP consulting and implementation, which empowers companies’ digital transformation and provides a full range of high-quality services, from SAP consulting and implementation to support.

The Final Thoughts

SAP PLM is the basic need for every manufacturing company that aims to establish its presence in the commercial world. It provides a holistic approach to the product production cycle, right from its idealizing to reaching the clients.

SAP PLM isn’t just about the efficiency of production, but it is the only way to survive in the highly competitive environment, and a chance to build an impeccable production system.

Don’t hesitate to contact Leverx, SAP implementation professionals, for further assistance and advice. Their proficiency will introduce a new level of efficiency to manufacturing cycles, and the entire functioning of the company.