Mannheim, September 4th, 2021

Product data management, or PDM for short, is used in the administration and organisation of all data generated during the development of products. Of course, PDM is also used for existing products, for example when existing data needs to be updated or new data needs to be added. This introductory text provides an overview of what constitutes product data management and what differentiates it from product lifecycle management (PLM).

What is product data management (PDM)?

PDM can be described as a universal data storage and communication tool for the storing and management of data involved in the product development process. Product data management systems are a building block in the overall architecture of a company and, ideally, should communicate with parallel systems, or be integrated in the best possible way.

Why PDM?

When developing a product or updating existing products, a product data management system is the central hub for all related information. In doing so, PDM takes care of these tasks in particular:

  • Product structure management
    Essentially, the technical and physical substructure of the product, which consists of assemblies and individual parts as well as parts lists (e.g. quantity, structure, development or production parts lists).
  • Variant and configuration management
    Here, concrete product variants and configurations are stored in the PDM system and checked in scheduled cycles. This version check can be carried out either automatically or manually.
  • Classification of products
    Should individual products be incorporated into product groups or product ranges, then this categorisation is carried out using product data management.
  • Material management
    The materials and raw components required for the product are also stored in the PDM system with material data sheets.
  • Product version history
    The history of technical product changes is stored in the product data management system, so that the entire technical status of a product can also be traced.
  • Product authorisation management
    In addition, PDM also handles the necessary authorisations for maintaining changes to a product.

How does product data management differ from classic product lifecycle management (PLM for short)?

Advantages of a PLM system - the range of functions

While product data management is primarily concerned with the process steps of product conception, specification, design and realisation, product lifecycle management is much more comprehensive and includes other process components as part of its range of functions. For example, PLM can also contain information on the production, maintenance or even disposal of a product - things PDM usually does not.

Advantages of a PDM system - the costs

Although the product lifecycle management system is usually much more comprehensive than a classic PDM system, there are still many product data management systems in wide use. This is mainly because of historical reasons: Product data management was originally cheaper to implement and licence.

This cost advantage has since disappeared, though. Along with very comprehensive and correspondingly high-priced PLM systems, there are also many that do not have steep price tags - thanks to lowered software ranges.

Is it worth switching from an established PDM system to a comprehensive PLM system?

Thanks to the moderate range of functions, a product data management system has everything that is essential for the data management of products. This can be perfectly adequate, especially for small and medium-sized enterprises (SMEs).

However, it can be highly recommendable - especially for companies with complex products or numerous product variations and combinations - to migrate a PDM system to a fully-fledged product lifecycle management system. In the long term, this creates the synergy for all areas involved in the product development process. In addition, a modern PLM system sets the course for dynamic company growth by expanding the product range.

Does it make sense to integrate product data management into the ERP system?

Irrespective of whether you use a PDM or PLM system in your company, integrating the data-holding system into your ERP makes sense. Business decisions can only be made in real time if the systems are fully integrated into the system infrastructure. The ERP system usually does not have sufficient process depth in the product development process, so the integration of your product data management can be helpful for evaluations, as well as decisions.