Improve Manufacturing Efficiency and Profitability!

June 21, 2023 | Varsha Jayade, Industry40ez

Did you know that operational inefficiency can cost manufacturing companies 20% to 30% of their annual revenue? While reducing parasitic inefficiencies can be an overwhelming challenge, there is hope. Large manufacturers have access to resources to invest in technology, such as dedicated Information Technology (IT) and Operational Technology (OT),that afford them real-time insight into their operation. In contrast, smaller companies cannot access the information they desperately need to grow businesses. But the good news is that small and medium enterprises (SMEs) can now access affordable similar advanced technology.

Recent advances in software and hardware have created options such as Manufacturing Execution Systems (MES) that can level the playing field and boost profitability for businesses to grow. SMEs embrace technology for a prosperous future in manufacturing. MES software monitors, tracks, and controls manufacturing processes from raw materials to finished goods. It guides real-time decision-making from the shop floor to management to be more efficient. It’s not ERP vs MES, together Enterprise Resource Planning (ERP) and MES bring operational clarity that neither system can provide on its own.

Here are the top five operational inefficiencies that reduce profitability and how MES software can help make your business profitable.

Limited resources: Facing operational bottlenecks and a lack of financial resources for new equipment or additional staff can choke a business owner’s ability to improve profitability.

  • Solution: Save costs and streamline operations using MES, which eliminates the excessive support work and financial tracking typically done by additional personnel.

Workforce training: Despite heavy investment in hiring, training, and building the knowledge of your workforce, productivity levels can fall short of your expectations if that knowledge is not channeled correctly.

  • Solution: Equip your workforce with the necessary expertise using MES software's comprehensive training with multimedia instructions, and real-time progress tracking.

Manual data entry: Relying on manual data entry leads to errors and delays in making operational decisions.

  • Solution: Connect operators to owners through automatic data entry integrated into their work process, resulting in improved data accuracy and enhanced decision-making power.

Inadequate planning and scheduling: A lack of accurate and timely planning, forecasting, and scheduling toolsdue to reliance on spreadsheets leads to inefficient use of workforce and equipment.

  • Solution: MES is a powerful tool because it utilizes real-time production information to plan and schedule daily production along with forecasts when planning for future resource and customer needs. It also saves time and paper by auto-scheduling and sequencing work to minimize interruptions. 

Ineffective supply chain management: Dealing with the challenge of managing your supply chain, including delays in deliveries, unexpected shortages, and schedule changes, distracts you from running your company. These constraints also force you to spend valuable time counting stock and handling issues related to overstocking or stockouts.

  • Solution: MES tracks materials and orders in real-time, manages the supply chain, and orders replenishment stockon time to minimize interruptions and overstocking. As a result, you can eliminate non-value-added time spent on inventory control.

MES can provide real-time data and analytics to support quick decision-making and problem-solving, helping small manufacturers to respond quickly to changing production needs and customer demands.

Contact Varsha Jayade