The manufacturing industry has made considerable technological advancements over the past years, which has increased the supply chain’s efficiency, and increased businesses’ profit potentials.
These unprecedented changes have helped streamline the production process. But, they have also added pressure to manufacturers to continually implement current, and relevant systems to the equipment used in the facilities.
In such a rapidly-changing operating environment, it has become paramount for manufacturers to invest in systems that can help the business remain competitive. Among these, the importance of an efficient Manufacturing Execution System (MES) has become evident.
Initially, a business’s MES would have been just a way to track the manufacturing process, today, this system streamlines communication, enhances business efficiency, and reduces the company’s operating costs.
The Benefits of MES
While coming from humble beginnings, today, a tailored MES can do much more than record your company’s manufacturing process and document the supply chain’s efficiency.
Business Performance Optimization
MES technology has represented an unprecedented innovation for companies in the manufacturing industries. These systems have radically changed the way companies operate, introducing a new, paperless, and automated process that takes care of optimizing the production chain.
At its core, an MES is a monitoring and reporting system. But, without the need for paper-based documentation and hand-written reports, your business can focus solely on improving outputs—optimizing resource use.
Additionally, the reports produced by an MES system offer accurate business insights, datasets, and feedback you can use to rapidly troubleshoot production issues and enhance long-term productivity.
Initially an MES was not much more than a report of a company’s manufacturing outputs. Today, these systems are entirely automated and self-sufficient; you can leverage this technology to craft realistic production flows, schedules, and timing. In turn, it will allow you to set realistic expectations in terms of costs and profits.
You may also decide to integrate employees’ schedules and skills in the system, so you can craft a work schedule for your teams that optimizes productivity and minimizes the opportunity for downtime incidents.
As seen, an MES allows you to streamline your company’s operations. It does so by showing the strengths and weaknesses of the production process and indicating the areas in which you might be misusing resources.
An MES report may also offer you suggestions regarding the time, amount of materials, and the number of personnel needed to complete a project without excesses. This is ideal if you are looking to cut down on the cost of extra staff or materials.
More Accurate Costs Records
While an MES can help you reduce your business’s operating costs, it can also help you better record the costs you might incur. Keeping your accounts in check can be challenging, especially if you have multiple facilities and plants across several locations.
By integrating an MES, you can be sure that all costs regarding labor, waste, scrap, maintenance, and downtime are recorded in detail—and without the need for individual entries. The reports produced by an MES can also be leveraged by your management team to identify the areas that are operating at a loss or visualize the best pricing strategy for a new product you are releasing on the market.
A tailored MES will work by analyzing the production lines and the finished product—offering your valuable details and insights regarding the realistic needs of your production system. The automated system will also help you identify aberrations, mistakes, and inconsistencies in the production line, allowing you to act on them immediately. This prompt response can help you reduce the chance of increased waste and scrap.
Reduce Inventory Surplus
Inventory is something that businesses rely on, but it can undoubtedly weigh on the business’s budget. Indeed, the cost of storing, safeguarding, and transporting overage and goods can become expensive. An MES is set to automatically record and update the inventory records, allowing your management team to keep an eye on what you need to order and what is already available in your facilities.
How an MES Affects Industries
When investing in an MES, you are likely to see changes in your business’s structure. This is because of the enhanced production process and automated systems you have introduced.
An MES can reduce the chance of wrongful or incorrect entries in your books and reports. It does so by providing you with accurate data checks in real-time, monitoring, automated enforcement of regulations, and implementing unit traceability.
Additionally, if your business has expanded, you are likely to face managing several facilities in multiple locations. MES will allow you to synchronize the global supply chain and monitor outputs and costs. These systems can also help you go paperless and enjoy the flexibility of changing your business structure and models as you see fit.