If you are still wondering about the positive impact an MES system can bring to your industrial company’s bottom line, this article may be of your interest. Read on to discover how this software drives cost reduction and revenue growth in organizations.
More and more industrial companies are deciding to start their journey towards digital transformation. Staying behind is no longer an option if the goal is to be a productive, efficient and competitive organization in the long term.
Despite the great advantages of adapting with agility to the current Industry 4.0 context, some manufacturing company executives still find it difficult to make decisions when it comes to investing in technology.
In fact, MES systems are a good example if we talk about technological solutions that generate doubts among company managers. Although most of them are aware of the benefits that this type of industrial automation software brings with it, MES often loses out when it competes with other investment priorities.
But considering that it is a platform that helps to reduce costs and increase revenues, why are some companies reluctant to implement an MES system in their factories?
What is holding back a greater commitment to MES systems?
Gartner and MESA International attempted to answer this question in 2015. After interviewing executives from large industrial companies, their survey revealed the main reasons why these managers were reluctant to implement an MES system in their production facilities.
As can be seen in the graph, the biggest obstacle, in half of the cases, was that they were unclear about the ROI of the project. This is a monetary reason, which Gartner attributes mainly to the lack of a solid understanding of the ROI of an MES system by the investment decision-makers in these companies.
That said, and given the uncertainty and distrust that MES systems still generate in the financial department of companies, in this article we introduce how solutions such as Mapex drive cost reduction and bottom-line improvement in organizations.
The investment in MES systems to reduce costs
First of all, in order to justify in economic terms any MES implementation project, it is important to take into account those benefits that lead to cost savings in human and material resources.
To begin with, the implementation of an MES system in a factory leads to a reduction in the time spent by operators performing non-value-added tasks, which add extra costs for the company, such as manual data entry; the management and storage of paper documentation, or the reprocessing of defective units.
In addition, an MES system helps companies to identify, manage and eliminate nonconformities, thus reducing the costs associated with this problem: rework, waste, overtime, penalties, unscheduled downtime, product recalls, etc.
Finally, the use of an MES system is key to increase the production capacity of factories and enhance continuous improvement, as it is a solution that detects in real time and automatically the hidden causes of losses in scheduling, availability, performance and quality of the companies.
An MES system to boost sales and retain the best customers
It is also interesting to see how an MES system such as Mapex has an impact on improving the bottom line of companies as a result of:
Increased productivity and equipment performance. This type of software has been proven to help companies produce more units in less time and reduce lead times.
- A greater capacity of the organization to retain existing customers by improving product quality and delivery times. It should not be forgotten that it is always more costly to attract new customers than to retain existing ones.
As we have seen, there are many reasons why implementing MES software is more than justified. Those companies that still quarantine its usefulness need only look closely at their production processes; spot the inefficiencies and errors that are costing them money day in and day out, and find out what an MES system can do for them.
If your company is in this situation, do not hesitate to contact us. At Mapex we have more than 20 years of experience implementing our MES solution in all types of industrial companies according to their needs and business objectives.
