Regulatory compliance has hit hard not just the white-collar world of corporate finance and financial services but also manufacturing. In particular there are now numerous guidelines and requirements around handling and tracking of hazardous materials contained in new products.
Manufacturers are required to develop processes that monitor and make detailed reports about their products with these materials. Governments in Europe, California, Korean and even China are creating strict guidelines.
In Europe, fines can be particularly severe. Violations of the EU’s Restriction of Hazardous Substances Directive (RoHS) and Waster Electrical Equipment Directive (WEEE)
can result in millions of dollars of fines and bans on product sales that in turn can cost companies millions.
Original Equipment Manufacturers (OEMs) at the top of the food chain are subject to the greatest fines, but companies in the supply chain handling the product, especially
Tier 1 suppliers of the OEMs can also face large fees. The regulations put into effect a process for verification and certification of compliance.
The task of tracking the origin and makeup of all parts and components going into the manufacture of a single product can become extremely complex. Many products consist of hundreds and thousands of diversely sourced parts. OEMs have the onus of both ensuring and proving that they are under compliance can be challenging.
To help give OEM manufacturers and Tier 1 suppliers a handle on compliance, PLM products are bulking up with functionality that allows them to track material compliance.
Material compliance data integrated with all product, cost, and marketing requirements create a single dashboard from which users can see on overall view that includes production functionality, and environmental and cost impacts. The end result is more efficient production, avoidance of compliance violations and increased overall customer sataisfaction.
Mike Zepp, Director of Material Compliance Solutions at Dassault Systemes said:
“Linking material and chemical substance compliance data to all product lifecycle processes enables OEMs and Tier 1 suppliers to gain full product regulatory compliance
visibility across their organization and supply chain. This will help to drive hazardous substances out of products, and avoid a litany of problems, such as slower time-to-market, product recalls, potential fines, product bans, poor customer satisfaction and possibly a damaged public image.”
