Although most managers, supervisors, and executives of Polish manufacturing companies have encountered the term „Fourth Industrial Revolution,” as noted by Astor in their publication „Industry 4.0. The Revolution is Already Here. What Do You Know About It?”only 6% of them are implementing Industry 4.0. However, the trend is on the rise, and more and more Polish companies are taking steps toward Industry 4.0
The main reason why manufacturing companies decide to purchase and implement a manufacturing execution system in their plant is actually the desire to reduce production costs while increasing its efficiency. Like any other investment, it is supposed to pay off in the shortest possible time. This subsection describes the areas of the company that are affected by the implementation of the MES system.
The results of the research conducted by the MESA organization show that after implementing the production execution system, the following changes can be expected:
- shorter production cycle time by up to 45%,
- shorter data entry time by up to 75%, which results from the fact that data is transferred to the ERP system automatically,
- reduction of the amount of capital used for production orders by over 25%,
at least 50% less office work between shifts, - shorter time to launch a new production task by over 35%, improvement of production quality by reducing the number of defective items
According to research, the return on investment occurs on average 14 months after the system is fully launched.[2]
Taking into account the above-mentioned improvements, the following can also be improved:
- energy demand – an average reduction of 8%
- incorrect data in the ERP system – an average reduction of 66%,
- faulty products – an average reduction of 15%.
- Elimination of paper document circulation by an average of 61%.
Later in the article, I would like to explain the reasons behind the above-mentioned improvements.
Reduction of defective products
System realizacji produkcji umożliwia rejestrację parametrów całego procesu i kontrolę jakości na każdym jego etapie, co przy dzisiejszych wymaganiach klientów jest niezwykle istotne. W badaniu przeprowadzonym przez organizację MESA ankietowani przyznali, że po wprowadzeniu systemu MES ilość wadliwych produktów została zredukowana średnio o 15%.[1]
Introducing data to ERP System.
The most significant improvement is usually in the time it takes to input data. Many manufacturing companies we talk to on a daily basis still create production reports in paper form. Beyond the need for paper usage and the archiving of these reports, this method also consumes time, which is often the most valuable resource. Lost time cannot be recovered. The data from these reports on completed production must be entered into the ERP system. There is a risk that the person entering the data might make a mistake, and inconsistencies in the ERP system can lead to numerous negative consequences. In companies that use an MES system integrated with the ERP system, production data is transmitted directly to the ERP in real time, minimizing the risk of error, saving time, and reducing paper usage.
Reducing paper document circulation
Remaining on the issue of paper consumption, depending on the size of the company, the costs associated with printing documents used in production can be counted even in tens of thousands per year. Companies using the MES system handle documents such as job instructions, complaints, technical drawings, technological cards and others. Additionally, in the SCADA-MES system it is also possible to place files in MP4 format. A study conducted by the MESA organization showed that over 60% of respondents confirmed the possibility of reducing the paper document flow in the company by more than half after implementing the MES system. [1]
Faster turnaround time for production orders
The productivity of production workers is also improving. They are aware that they are not controlled directly by another person, but by the system. Thanks to the integrated MES system, machine operators receive electronically at their workstations all the information necessary to complete a production order. This is done in real time, which leads to orderly production and minimizing the number of errors. The employee also has access to all the necessary documents, such as technical documentation in electronic form. A parameter that is significantly improved after the implementation of the MES system is the reduction of time used in many areas. The first area is the administrative processing of orders. A drastic time reduction is possible thanks to the two-way communication between the MES system and the ERP system. In this case, all data is sent automatically without human intervention. The respondents of the study conducted by MESA, already referred to in this subsection, showed that it is possible to shorten the cycle time after the implementation of the MES system. The time of transport, storage, or waiting for materials can also be reduced.[1]
The MES system, despite being a system that streamlines production, also improves the quality of customer service. This is not a direct and easily measurable effect. We are talking about reliable delivery dates and information, about the progress of order fulfillment, which can be key information for customers.[1]
There may be many more areas that will be improved. The MES system is an irreplaceable tool in continuous improvement and implementation of the Lean Manufacturing strategy.
The best example of the fact that investment in the SCADA-MES system pays off are the statements of our customers. One of them is the Major company located in Tychy. This customer clearly communicates – „At present, where the machine park is already the size of 137 machines, we are unable to imagine handling production without the Aplixcom SCADA-MES system”.
The second example is the statement of the COO of Borg-Automotive – „We can confirm that the investment in Aplixcom SCADA-MES was definitely a good decision. We have gained extensive knowledge about the production area, and thanks to this, in specific sectors we are sure of obtaining a return on investment”.
To sum up
We often use a special calculator to calculate ROI with potential clients. This allows management to easily estimate the return on investment in the Aplixcom SCADA-MES system.
Are you wondering how the ROI calculation would work for your company?
Leave your contact details in the form below and we will contact you and arrange a meeting or teleconference.
Michał Stadler, Key Account Manager at Aplixcom Solutions
Bibliography
[1] Heiko Meyer Manufacturing Execution Systems (MES): Optimal Design, Planning, and Deployment, McGraw-Hill Education, United States 2009
[2] Joanna Oleskow-Szlapka: Computer systems for production planning and control, Poznań University of Technology 2012