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PLM X ERP X QMS: What are the differentials and their benefits?

Does your company need an ERP system? A system to support the  quality management (QMS)? Or a PLM system?

This question is more common than it seems and choosing the wrong one can lead to rework, disconnected processes, and wasted investment.

In the automotive industry, where engineering, quality, and production need to operate in an integrated manner, understanding the difference between PLM, ERP, and QMS is essential to structuring a modern and competitive operation.

In this article, we’ll shed light on the role of each system and show why many businesses need more than just a traditional ERP.

What is ERP?

ERP (Enterprise Resource Planning) is the system responsible for the administrative and operational management of the company.

It controls:

  • Financial
  • Purchases
  • Stock and Inventory
  • Production Planning and Control
  • Billing
  • General Resources
  • Costs

ERP is essential for business management, but it was not created to manage product development by engineering to ensure product quality and reliability.

Common limitations:

  • Doesn’t control project versions
  • Does not manage the tasks in product development
  • Does not integrate core tools in the APQP development
  • Does not organize technical changes with traceability

What is QMS?

QMS (Quality Management System) is the system aimed at managing the quality system.

It usually covers:

  • Handling of non-conformities
  • Corrective and preventive actions
  • Quality management system audits
  • Quality documents and records
  • Quality Metrics and Indicators
  • Management of quality control systems/devices

The quality system management is of huge importance for the business, but most of the systems intended for the QMS work in isolation from the engineering that develops the manufacturing products and processes, especially when it comes to the automotive, aeronautical and even home appliances sectors.

Common limitations:

  • Doesn’t connect core tools in product development
  • Does not integrate technical changes with impacts on production
  • Does not provide a complete view of the product lifecycle from concept to end-of-life in the field.

What is PLM?

PLM (Product Lifecycle Management) is the system that manages the complete product lifecycle, from conception to disposal of the product after its useful life.

It connects:

  • Software primarily dedicated to Product Engineering
  • Management of the BoM (Bill of Material)
  • Technical changes to the product and applications
  • History traceability
  • Product documentation, drawings and specification
  • Strategies for disposal, recycling, or replacement with new products.

Among most systems in the automotive industry, PLM becomes the strategic center of technical operation in engineering.

Comparison of Systems dedicated to ERP vs QMS vs PLM

Practical conclusion: ERP takes care of the company’s operations. QMS takes care of the quality system. PLM takes care of the product life cycle from concept to end-of-life in the field.

What system does your industry really need?

If your company:

  • Develops its own product
  • Must meet IATF 16949 standard
  • Develops the product/process according to the APQP Core Tools and IATF16949 standard requirements
  • Handles multiple engineering reviews
  • Avoids rework due to miscommunication between areas

In this case, ERP and QMS systems are not enough, because in the automotive industry we need a system that connects engineering, quality and production in a structured way and according to specific criteria of the sector.

Where ISOQualitas PLM comes in?

ISOQualitas PLM was developed specifically for the automotive industry.

It complies and integrates:

  • Project Planning and Deadline Management
  • Application and integration of APQP Core Tools, including the product approval processes (PPAP/VDA2) digitally
  • Management and workflow of engineering change approvals (ECN/ECR)
  • DFMEAs and PFMEAs connected with Control Planes, Work Instructions and verifiable through RFMEA (Reverse FMEA) during mass production.

  • Integrated corrective and preventive actions
  • Application of Methodology for Problem Solving (Global 8D)
  • Full traceability for IATF 16949 audits

A PLM system is not a substitute for ERP. It complements and structures what ERP does not achieve: the product lifecycle.

Digital transformation in industry doesn’t mean having more systems. It means having the right systems and strategically integrated

An ERP system organizes the operations of the business in terms of resources and planning of production and delivery. QMS controls the quality system as a whole.

A PLM system ensures that the product is developed to applicable standards, modified and delivered with the required quality and reliability and with full traceability of the product life cycle.

If your company intends to reduce failures, accelerate new product launches and gain technical maturity, then understanding this difference is the first step.

And ISOQualitas PLM is made for just that.

Get in touch and request a demo.
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