![]() ![]() While an early adopter of PLM technology, Chrysler was able to become the auto industry's lowest-cost producer, recording development costs that were half of the industry average by the mid-1990s. The product data management was so effective that after AMC was purchased by Chrysler, the system was expanded throughout the enterprise connecting everyone involved in designing and building products. The second part of this effort was the new communication system that allowed conflicts to be resolved faster, as well as reducing costly engineering changes because all drawings and documents were in a central database. The first part in its quest for faster product development was computer-aided design (CAD) software system that made engineers more productive. AMC focused its R&D efforts on extending the product lifecycle of its flagship products, particularly Jeeps, because it lacked the "massive budgets of General Motors, Ford, and foreign competitors." After introducing its compact Jeep Cherokee (XJ), the vehicle that launched the modern sport utility vehicle (SUV) market, AMC began development of a new model, that later came out as the Jeep Grand Cherokee. The automaker was looking for a way to speed up its product development process to compete better against its larger competitors in 1985, according to François Castaing, Vice President for Product Engineering and Development. The inspiration for the burgeoning business process now known as PLM came from American Motors Corporation (AMC). ![]()
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