There is more and more conclusive evidence that Manufacturing Execution Systems (MES) provide considerable performance advantages to plants that use them over plants that don't use them. Regardless of the plant size, industry or process type, other software systems or improvement initiatives, plants using MES showed stronger performance than others. Definition of MES A Manufacturing Execution System (MES) is an IT system that drives effective execution of manufacturing operations. Using current and accurate data, MES guides, triggers, and reports on plant activities as they occur. The MES set of functions manages production operations from point of order release into manufacturing to point of product delivery into finished goods. MES provides mission critical information about production activities across the organization and supply chain via bi-directional communication. The MES Performance Advantage Profitability Performance is characterized by profitability, which in turn is based on three critical plant-specific performance factors . These are productivity, process improvement and personnel performance. Analysis shows that plants using MES are outperforming those that don't use MES and improving performance faster - in all of these key performance areas. This report analyzes these areas in greater detail: • Productivity Naturally, productivity growth is a key driver of growth in profitability. To drive higher return on plant assets, companies are constantly striving to improve operational productivity. Current plant productivity is the first question to examine. Plants using MES have higher productivity than those not using MES by typical productivity measures, such as revenues per square meter, or revenues per employee. One of the keys to improvement , as many companies implementing Balanced Scorecards, Six Sigma and other programs have discovered, is having accurate, detailed data to identify the root cause of problems. MES helps provide that type of production data. Further, MES helps reduce errors that waste materials as well as employee and production equipment time. This suggests that companies in industries that need to make regular improvements in costs and productivity to compete effectively should consider evaluating MES. MES offers a strong platform of data and operating support from which companies can continuously improve operations. • Process Improvement Plants with MES have higher Process Capability (CPK) . Furthermore, plants using MES have a greater reduction in cycle times and are more advanced in developing efficient maintenance programs. The average machine availability as a percentage of scheduled uptime for major lines is usually higher in plants using MES This also improves Operating Equipment Efficiency (OEE). Continuous readings on product and process parameters, correlated and available for viewing all across the plant, are hallmarks of MES capabilities. Without such a system, emerging issues are less likely to be identified before they become real problems. • Employee Support MES should help the people in a plant, as well as the processes. In fact MES tracks many of the product and process issues that personnel need to understand quite deeply to manage effectively. In many cases, MES also guides workers through each step of the production process. MES clearly changes the requirements for employee training as well. However, the major differences include the quantity and type of training required. The number of hours an employee needs in the classroom is less in plants using MES; these plants provide more on-the-job training. New employees also need a lot less training in plants that use MES. Again, having the system always available to guide the operator's activities clearly makes a big difference in employee training. Conclusions & Considerations We have highlighted many of the performance advantages enjoyed by the plants that use MES. On nearly every measure, plants using MES improve more rapidly than those that do not - regardless if the plants are using ERP, Six Sigma, Lean Quality and Demand Flow Scheduling techniques – or are having under 500 employees – they all show benefits from using MES. The predictability of processes in these plants - along with the guidance employees receive directly from the MES – probably account for much of that success. A benefit that we suspect contributes, but is measured more at a corporate level, is that other systems throughout an enterprise can use this more accurate and real – time data. If manufacturing is a core activity for your company, MES is worth the investment. The best plants use it today. They are improving faster, and meeting greater challenges more effectively. Those who do not could be left behind quickly. Free Consultation While MES maybe new to some people and customers may have questions, we will provide satisfying, understandable answers. Simply contact Factorytalk and “Call for a Coffee” for a free consultation. We are located at : Factorytalk Pte Ltd E-mail Address : |
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