Computer-aided design (CAD), also known as computer-aided design and drafting (CADD), involves the entire spectrum of drawing with the aid of a computer—from straight lines to custom animation. In practice, CAD refers to software for the design of engineering and architectural solutions, complete with two- and three-dimensional modeling capabilities.

Computer-aided manufacturing (CAM) involves the use of computers to aid in any manufacturing process, including flexible manufacturing and robotics. Often outputs from CAD systems serve as inputs to CAM systems. When these two systems work in conjunction, the result is called CADCAM, and becomes part of a firm's computer-integrated manufacturing (CIM) process.

CADCAM systems are intended to assist in many, if not all, of the steps of a typical product life cycle. The product life cycle involves a design phase and an implementation phase. The design phase includes identifying the design needs...