PLM keeps manufacturer on right sideof the law
By Staff -- Manufacturing Business Technology, 9/1/2006 12:00:00 AM
The cost of "component traceability"—i.e., tracking every component and every input from every source in a product sold—can range from 2 percent to 8 percent of revenue. "That's the profit margin," says Eric Karofsky, senior analyst with Boston-based AMR Research and author of the report, Full PLM Assault is Needed for Compliance.
The cost of not complying can be steeper, ranging from fines to jail time. That's why Dot Hill Systems, a Carlsbad, Calif.-based network storage supplier, adopted a product governance and compliance (PG&C) solution from product life-cycle management (PLM) vendor Agile Software. The PC&G module contains all the laws, regulations, and standards that apply to the user's products, components, and manufacturing processes.
The software also tracks supplier input and compares suppliers' statements against regulations to determine if the end product is in compliance.
But the real value of the PG&C module lies in the database of laws, regulations, and exemptions that Agile keeps up to date, contends Dries D'Hooghe, director of product management.
The module also integrates with any PLM systems used by suppliers, which enables complete analysis of every component in every product. D'Hooghe says that particular capability adds up to extra protection against allegations of noncompliance.
