Have you ever been in a situation where a company proudly implements a PLM (Product Lifecycle Management) software, only to see everyone exporting data from it into Excel spreadsheets? It’s a common story, and it raises an important question: why is this happening, and what’s the problem?
The root of the issue lies in four interconnected factors:
- Engineering System of Records
- Document culture
- Ingrained habits
- The cost of training.
Engineering System Of Records
The way PLM software was provided for many years was taking deep roots in so called “source of truth” combined with the paradigm of combining all information in a single database. It was good for business processes in the 2000, product data was located in a single organization and mostly focusing on management of CAD files and engineering release process. Product lifecycle management (PLM) strategy was engineering focused and the “love” for PLM software was going down significantly once you crossed the doors of engineering department.
Document Culture
Document culture plays a significant role because, for over 40 years, professionals have been conditioned to save and organize data in folders and files. This document paradigm feels natural to those who grew up in an era dominated by paper-based workflows and early digital systems. Even as PLM systems advance, the instinct to manage data as documents persists.
Habits
Habits further reinforce this behavior. The familiar refrain, “We’ve always done it this way,” explains why exporting data to Excel feels so intuitive. Excel is a tool that many professionals are comfortable using. It’s flexible, easy to manipulate, and has been a mainstay for decades. These ingrained habits make it hard to break away from the spreadsheet mentality.
Cost of Education and Training
The cost of training adds another layer of complexity. Sending someone an Excel file often feels like the simplest solution because it eliminates the need to train others on how to navigate the PLM system. Excel is universally understood, and if mistakes occur, responsibility typically falls on the individual handling the file. While this approach might seem efficient in the short term, it perpetuates inefficiencies and risks in the long term.
How to move forward?
This reliance on spreadsheets becomes problematic as manufacturing data grows in complexity.
Products today involve complex multi-disciplinary products, configurations, and systems that Excel struggles to handle effectively. Additionally, the modern manufacturing environment demands real-time updates. A simple Excel files simply cannot provide the up-to-date information needed for accurate decision-making on costs, inventory levels, or supply chain management risks.
Collaboration presents yet another challenge. Teams increasingly need to work together seamlessly, interacting with the same data in real time. The traditional product data management approach of managing CAD files and later exporting and sharing Excel files combined with PDF, STEPs, etc.. creates silos and inconsistencies that hinder teamwork and slow down processes.
To overcome these challenges, companies must embrace a “data culture” in their new product development process setup. This involves moving away from the document-centric mindset and toward a collaborative workspaces where data is stored, updated, and accessed collaboratively, the data traceability goes beyond simple document management and business systems are not limited to Excel in/out sync. New PLM solutions need to be developed to support new business strategy.
By creating new mechanisms for seamless data sharing, collaboration, teams can interact with data in real time, ensuring everyone stays aligned and informed. Rather than exporting data, the focus should shift to sharing it in ways that preserve its integrity and usefulness, such as through dashboards, APIs, or integrated workflows.
What is my conclusion?
Excel may feel like a safety net to move data out 20 years old PLM system, but the demands of engineering and manufacturing require a more robust approach. Modern PLM software is needed. By adopting a data-driven culture and leveraging the full capabilities of modern collaborative data management services and systems, companies can unlock the true potential of their data, making it not only accessible but also actionable. The future lies in shared, real-time data – not exported spreadsheets.
Just my thoughts…
Best, Oleg
Disclaimer: I’m the co-founder and CEO of OpenBOM, a digital-thread platform providing cloud-native PDM, PLM, and ERP capabilities. With extensive experience in federated CAD-PDM and PLM architecture, I’m advocates for agile, open product models and cloud technologies in manufacturing. My opinion can be unintentionally biased.
