What is a Product?
Well, everything in this universe can be contributed to a product. A product can be a good, a product can be a service, a product can be a idea that may yield a tangible or intangible benefit to someone. There are wide range of products. How an organization views a product depends upon its perspective. The product plays a vital role in an organization’s revenue growth. Without a product, a company cannot exist. Irrespective of whether it’s a manufacturing company or a service-based company, everyone are correlated with at least one product. Innovative products make a company the leader in its industry sector. Great products lead to higher revenue growth.
The product is always little more than what you see at first glimpse. A product definition varies based on each stakeholder’s perspective. When Amazon deliver your product, the buyer sees what’s inside the package as a product. However, from Amazon’s perception, product packaging is often part of the delivery product. Product labeling becomes part of the product.
A product can also be a service of any type. It can be a car wash service or it can be a software design service. It can be tangible or it can be intangible product such as medical insurance.
A product can be of any shape or size. It can be size of needle, a liquid product like a common soda can take the shape of the can, or it can be as big as an Airbus A380.
A companies’ product can be manufactured by themselves in-house or it can be may have been assembled using various parts supplied by other manufacturers.
In all scenarios, it is always realized, a product is an ASSEMBLY OF MULTIPLE PARTS. The number of parts used in the assembly varies based on the type of the product. For example, a fountain pen may be made up of 10 parts, whereas a space ship is manufactured using millions of parts.
What is a Part?
A part can be anything that is used to assemble a product, it can be a screw, it can be a chemical used to manufacture a deodorant or a line of code used to build a software. It can be a carton used for packaging or it can be a cellophane tape over the package.
A company’s product is an important source of its revenue. Its the product that the company produces and its related services that the buyer demands from the company It must be managed in all phase of product life-cycle from dawn till dusk and make sure everything works well and finally the company makes good profit out of the product.
Whatever is the product a company harvests, PLM is a single management system for an organization’s products and the parts used to assemble the same.
If you have missed by previous article, to understand what is PLM, please click here