Category Archives: Manufacturing Execution System

The Broken Promises of Manufacturing Innovation

We received a lot of feedback, positive and negative, regarding our blog on market consolidation and manufacturing software.

It obviously struck a nerve, with strong feelings on both sides of the market consolidation and mergers issue.

The Truth about Market Consolidation

Market consolidation, with independent suppliers merging either through acquisition, partnerships or takeovers, is a business tool. Some mergers work – look at the success of the Disney and Pixar merger.

Others see a dark side to market consolidation, especially in the software and technology industry. Technology doesn’t blend easily – consider the failure of the AOL and Time Warner merger. Customer service, price point, and functionality are often sacrificed when two companies become one.

Manufacturing software mergers aren’t benefiting the industry. The results of these partnerships are often more toxic than “transformative.” Keep in mind the following as you consider a potential solution born out of a technology merger or partnership:

  • The high cost of an acquisition or merger. There is a cost to any merger – development costs for combining software systems, additional training and support expenses. Customers pay that cost with an increase in the product price or higher service charges. Suppliers spin the higher price as a “benefit” of access to additional functionality the customer didn’t want and will never use.
  • The death of innovation. Innovation fuels the manufacturing software and technology industry. Software suppliers should partner with customers to keep technology relevant. Companies that purchase new functionality, rather than innovating, put their customers at risk. Purchased capability will never be as successful or integrated as functionality built directly for the software. It’s a high-cost shortcut in product development.
  • The struggle for product support. The first victim in an acquisition or merger is product support. With the companies focused on integrating products and building a new revenue line, previous customers struggle to get the attention they need from the supplier. Even after the acquisition, there will be support questions as the new company determines how to support both older offerings and new products.

Fighting Back Against Market Consolidation

According to a recent article in the New York Times, those who bought into the promise of greater efficiency and customer benefit after business consolidation and mergers are now struggling with buyer’s remorse.

With consolidation, it is easier for companies to raise prices without risking the loss of customers and suppliers can collude on price without raising the ire of regulators. Entrepreneurs and start-up companies, the engine of innovation, find it increasingly difficult to enter a market dominated by a few businesses. When they do succeed in bringing a shot of innovation to a static product line, the company is gobbled up as an acquisition.

Business works best when there is competition. Companies should focus on developing their product to benefit customers rather than building out functionality through competitor acquisition.

If you want a manufacturing software solution fueled by innovation and internal development, rather than mergers and acquisition, look for an independent vendor with a product developed and supported in-house. They will work with you as a partner in ways larger corporations can’t. Massive software companies, stretched thin by an acquisition culture and focused on growing the revenue stream rather than a product, lack the dynamism and customer focus to work as a partner with manufacturers. They leave many of their customers burdened with high-costs, software complexity and innovation atrophy.

Want to know more, or see how a partnership culture in a manufacturing software supplier can solve problems and grow your business? Contact an Application Specialist at CIMx Software for more information.

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How to Find the Best Partner for Manufacturing Software

Last week I read a press release announcing a merger between two manufacturing software companies. The goal of the new product – a combination of the offerings from both companies – was to deliver functionality neither company had previously been capable of offering.

Dangers of Software Mergers

Joint offerings like this rarely deliver the expected benefits. With no real focus on customer needs, these business mergers lead to expensive, inefficient and ineffective product offerings propped up by the promise of innovation.  Too often, the real goals are either opening another revenue stream or fixing existing flaws in each developer’s software. Purchasing a competitor’s technology and marketing it under a unified brand isn’t innovation. For companies looking at a patchwork software solution, here are a few thoughts to consider:

  • Lack of Product Support

Ask how support for the “collaborative product” will be managed. Who will be responsible for support? Many times, the merger will completely change the support dynamics leaving users in customer support limbo. There will be lengthy and frustrating growing pains as the merger develops. Over time, the companies move on to other initiatives, with customers left struggling with unsupported software.

  • Functionality and Complexity You Don’t Need

Software acquisitions add functionality without thought to workflow. Continually cramming functionality into a software product creates complexity and inefficiency. The shop floor will ignore these systems. Additionally, consider the cost increase as users pay for functionality they don’t need and won’t use.

  • Expensive and Flawed Product Integration

Many product collaborations result in a lowest-common denominator solution for users. Software products developed independently, with different architecture and design, can’t be easily combined. There will be significant costs passed on to the customers to tightly link and connect the products. Some features can’t be linked, resulting in product flaws your shop floor will have to overcome.

The Power of Partnerships

Manufacturing software is critical for modern manufacturing. For companies struggling to support production with paper-based word documents, spreadsheets or modules tacked onto their existing ERP, the answer is not in the latest software partnership.

You’re not going to find a long-term, sustainable manufacturing solution with the “flavor-of-the-month” products developed in these partnerships. Unnecessary complexity, higher costs, support issues and flawed design elements eliminate any user benefit from the partnership.

Look for a software supplier ready to partner with you and your production team for a solution, and willing to focus on your unique business needs. The focus of any partnership should be your production needs and the growth of your business; not just the business of the software partners. CIMx Software has never purchased another product to increase our functionality footprint. Quantum was developed completely in-house, with a focus on empowering manufacturers to eliminate problems and increase output. Companies using Quantum know the focus is their production needs and supporting their business goals.

In our next CIMx manufacturing blog, we’ll take a look at how market consolidation is hurting manufacturers, and what you can do to find the right manufacturing software partner for you. Let us know if you have any questions, or would like to learn more about what modern manufacturing software can do for you.

Five Steps and 12 Weeks to a Manufacturing Solution

If you’re struggling with manufacturing problems – failed audits, late shipments, scrap, waste and worse, a sustainable solution is closer than you may think.

Manufacturing software has come a long way from the days of command prompts and MS DOS. With advances in software technology and the lower cost of hardware, it’s possible to quickly install a targeted software solution. You’ll eliminate the problems holding you back, and increase production output and profit.

Best of all, the right solution uses your existing work instructions and processes, and doesn’t require a risky cloud-based system.

A Better Solution for Manufacturers

Quantum can deliver a Smart Manufacturing system on a modern platform in 12 weeks or less. Here’s how we do it:

Step 1: Identify Your Primary Requirements and ROI

The project starts by developing a requirement list with a CIMx Application Engineer who will partner with you on the project. Target the source of errors and problems and identify solutions to build your list. For example, you may find paper-based work instructions often result in past revisions of planning being used for production, causing quality escapes, scrap and missed production deadlines.

Using this list, calculate the cost savings for each solution. In the previous example, how much would be saved if operators worked from only the most accurate plans? As you work, you may find a requirement doesn’t deliver enough savings. Those requirements can be tabled for a future phase of the project.

Step 2: Map-out Your Production Workflow

Now that you have a good idea of your project goals, you can begin mapping your production workflow into Quantum to identify how the software will support and manage production.

As a workflow system, Quantum is extremely effective in supporting existing workflow and modern manufacturing, unlike ERP or other non-manufacturing solutions. Once your processes are mapped in Quantum, the Application Engineer can demonstrate the workflow using your planning so you see the solution in action.

Step 3: Configure Quantum

Once you agree to the solution and how it is mapped in Quantum, the system will be configured.

You can set up specific work centers, dashboards, reports and alerts. Special workflow requirements and processes can be added for a smooth transition to Quantum. With regular progress reports and demonstrations you can track progress of the work.

Step 4: Migrate Data and Work Instructions

Using Quantum’s Data Migration Engine, CIMx moves your existing planning, documents and data into the system applying the workflow identified in step 2 – a true turnkey manufacturing software solution.

When users log into Quantum for the first time they will see only their plans, making an easy transition to Smart Manufacturing. Keep in mind, as you use Quantum further improvements can be made such as adding data collections and visual elements to work instructions.

Step 5: Final Installation and Training

When you’re ready, Quantum can be loaded at your site in less than an hour. Since the system has been configured and loaded with your planning, very little additional work is required.

All users are trained in Quantum – a process that takes less than an hour – and will begin using the software that day. The Application Engineer will be on-site to answer questions. Most companies find implementation quick and easy after requirements are identified and the workflow mapped.

Getting Started Today

MES are no longer the complex and expensive software projects companies feared in the past. Anyone with a basic understanding of a cell phone will feel at home using Quantum. In fact, most companies that eliminate paper by moving to Quantum regret not taking the plunge to digital manufacturing earlier.

Quantum eliminates the root causes of production errors and inefficiencies. A real-time view of production and access to production data will improve your production output and profit.

If you’re interested in learning more about Quantum, Smart Manufacturing or how you can eliminate paper and embrace digital manufacturing, contact CIMx today for a shop floor analysis.

The Key to Success with Data-Driven Manufacturing

Data-driven manufacturing – using facts and data rather than conjecture and guesswork to manage manufacturing processes – should be the goal of any forward-thinking manufacturer. Many companies struggle to realize the benefits of data-driven initiatives, even as the decline in cost of technology, software and hardware make it available to companies of any size or industry.

The problem isn’t the technology – it’s how it is being implemented.

The Human Element in Manufacturing Technology

A recent article in the Harvard Business Review identified four challenges facing companies implementing data-driven manufacturing. Moving from a Time-Triggered to an Event-Triggered Control System, a Unified Data Model and the other items discussed in the article are critical in finally realizing the full benefit of data driven manufacturing.

But what the article, and much of the industry, hasn’t addressed is the human element in data-driven manufacturing.

Humans play a critical role in managing production and workflow. While some processes can be completely automated with machines and sensors working together in a closed-loop control system, focusing on technology alone will leave holes in your processes. The operators must have easy and unimpeded access to relevant information during production.

Manufacturing software, specifically an MES (Manufacturing Execution System) designed with Smart Manufacturing tools, is the only solution that adequately meets this requirement.

Accelerating Production with MES

The key to true data-driven manufacturing is the MES.  By focusing only on technology of manufacturing and not addressing the end users, companies will struggle to maximize the benefit of the data they are collecting.

For example, automating machines to signal required maintenance and then automatically adjusting routing while the maintenance work is done is a perfect example of data driven manufacturing in action. Production doesn’t happen in a vacuum, and changes will have an impact on processes across the company. At this point, the MES should inform the operators of the updated routing. The dashboard used by Sales should also reflect the change, so the customer can be informed of the impact on the order.

The MES connects operators and machinery by communicating relevant data to the people best positioned to act on it. Without that communication, you’re left with disconnected and inefficient processes.

Looking Beyond Data-Driven Manufacturing

Companies are now collecting relevant production data, but without getting it to the right person at the right time, the data loses relevancy. An MES controls the manufacturing processes by managing information. In true data-driven manufacturing, the MES or manufacturing software system incorporates the human element and connects users to the critical data.

Without an MES, your data-driven manufacturing systems are still leaving potential production and profit on the table.

Want to know more, or see how true data-driven manufacturing works with a Smart MES? Contact CIMx today for a free shop floor analysis.

Defining the ERP and MES Connection

When problems crop up in production, savvy manufacturers immediately search for a solution.

Many turn to manufacturing software like Manufacturing Execution Systems (MES) or begin looking to their existing Enterprise Resource Planning (ERP) system for the functionality they are missing. Confusion creeps in at this point. As software providers expand their offering through development and acquisition, the lines blur between MES and ERP.

Removing the confusion and clearly defining the roles of the MES and ERP will eliminate this problem and help as companies plan for the future of their business.

The Role of the MES and ERP

Just as no accountant should ever use an MES to balance the books or run financials, no ERP will ever offer the functionality necessary for complex manufacturing. It can’t be done.

The MES delivers the workflow-based functionality required for discrete manufacturing. With a system based around the production value chain, it manages work and operations, and links data in a production cycle. Mistakes and quality escapes are flagged, allowing rework paths to be implemented. You can send a bill through an MES, but it’s not the optimal solution to billing.

The front office requires transaction-based functionality for financials, customer management and human resources. Data is input and tagged, creating data links, but at that point the process stops. There’s no workflow control because it’s not necessary. You could track a change order in a transaction system, but inefficiencies will cause the shop floor to struggle.

Some companies market their products as a “Manufacturing ERP.” They offer minimal manufacturing functionality tacked onto their core ERP product, often as a pricey module. It looks great in demos and claims to support some production processes, but a transaction system will never deliver the workflow control and visibility discrete manufacturers need. The inefficiencies result in “workarounds” your operators develop to overcome features that don’t work.

Fitting your Software Systems Together

Many companies initially turn to their ERP for manufacturing solutions, mistakenly believing a single software solution will lower costs and IT requirements. It doesn’t. A supplier selling an MES and ERP solution has either put a shiny “MES” veneer on top of basic ERP functionality or purchased an existing MES and completed an integration that you can’t control and they won’t be updating. You end up with an expensive solution with built-in inefficiencies, expensive upgrades, and gaps in manufacturing functionality.

The ERP and MES are separate, standalone systems that work best together when the user (your company) designs the integration points. This way, your front office has a software solution designed and built for their needs. Similarly, the shop floor and production team have the specialized functionality, visibility and control to keep up with the pace and complexity of manufacturing.

Since you aren’t buying expensive modules or customized functionality to awkwardly extend a software solution, you lower the overall cost. You have a clear upgrade path for both the MES and the ERP, and never struggle with an outdated solution.

Your company works from an integrated, cohesive production and business database. The reports use accurate data, sourced from the systems best positioned to collect and intelligently link information to increase production and efficiency while cutting costs.

Getting Started with Data-Driven Manufacturing

Once you’ve decided to eliminate inefficiency and embrace data-driven, smart manufacturing with a system like Quantum, the next question is where to begin.

Many mistakenly believe a software infrastructure project must start with the ERP, but the truth is it often makes more sense to implement an MES first.

Companies report a much quicker ROI for manufacturing software. The right manufacturing system will cost significantly less than an ERP, can be installed quickly and will pay immediate dividends through cost savings, and lower scrap and waste. The MES will reduce the scope and cost of the ERP by clearly defining the requirements of the enterprise system. With the MES in place, you won’t be pressured to purchase additional modules or software.

With manufacturing software you shield production from the disruption that often accompanies an ERP installation or upgrade. You can safely update other software when you are ready, with the comfort that your production data and shop floor are secure.

Want to know more, or see what benefits you will discover with manufacturing software? Contact CIMx for a free shop floor analysis with one of our Application Engineers. As always, the report is yours even if you decide Quantum isn’t the system for you.

What Quantum MES Can Do for You

By David Oeters, Corporate Communications at CIMx Software

The internet can be a confusing place for anyone doing research – especially for manufacturers researching Manufacturing Execution Systems (MES).

Research leads to more questions than solid answers. Finding the truth among lofty, but hollow, claims from ERP vendors that don’t know production can be a challenge. To clear up confusion, we’ll explain exactly what Quantum can do for you and other discrete manufacturers that are struggling to manage and improve production. Companies need solutions, not questions, to meet the complex demands of modern manufacturing.

Connecting the Shop Floor to the Top Floor

Quantum MES provides a data-driven edge for manufacturers by intelligently linking the shop floor to the top floor.

In the past, companies would struggle to manage production processes. Errors would be found only after manufacturing was complete, requiring expensive and time-consuming rework. Rampant inefficiencies, mistakes and non-productive work were common. Getting the big picture on shop floor was difficult, if not impossible. Data and information on production was either lost, inaccurate, or kept in isolated databases.

Without timely and accurate production data or process control, the company struggled to solve these problems. With scheduling based on guesswork and not capacity analysis, change orders requiring a printer and a red sticker, and a shop floor grappling with inefficiency, measurable improvement is difficult.

Companies using Quantum efficiently manage production operations by ensuring critical data and information is accurate and available when and where it is needed. The software eliminates guesswork and confusion with a built-in communication system. All aspects of the production process are integrated as everyone on the team uses the same and most up to date information. Many processes are automated, eliminating the source of errors and ensuring operators focus on production.

Smart Tools for Manufacturing

Since the software maps to and mirrors existing production operations, manufacturers find it easy to begin using the tools in Quantum, immediately improving operations. There are no extra modules or additions in Quantum, so you’ll have:

  • Built-in Finite Scheduling delivering real-time WIP dashboards to eliminate production and shipping uncertainty;
  • A closed-loop Quality System to identify non-conformances as they happen and automate rework to ensure timely delivery;
  • Process Conformance supporting standardized processes to dramatically increase accuracy and reduce production time;
  • Document Control that eliminates paper by digitizing work processes to remove errors;
  • Asset Management to track business assets throughout the manufacturing value chain, providing complete traceability for the most demanding regulatory requirements.

These tools are part of the complete manufacturing solution in Quantum. Since the software simplifies and enables the capture of relevant data across the production cycle, integrated Data Analytics delivers insights in real time to support data-driven business decisions that accelerate the benefits of the software. Visualization and feedback loops provide a critical foundation for Smart Manufacturing. With Quantum, your business will synchronize and integrate business operations from the top floor to the shop floor.

With industry-focused configurations, enterprise and multi-site options, and turnkey implementation and training – Quantum delivers error-free manufacturing and enterprise wide visibility for companies of any size at a price you can afford. Contact CIMx today to see what Quantum can do for you.

Good Samaritans, Guarantees and Paperless Manufacturing

By Kristin McLane, President of CIMx Software

The core of customer service in manufacturing software is ensuring the system works as promised. By focusing on the sale, many companies lose sight of customer service.

We never really think about customer service unless there’s a problem. It’s too bad, because manufacturing software suppliers are missing out on an opportunity…

I realized this when I lost my FitBit. I was on a bike trail near my house when my FitBit fell out of my pocket.  This was no fault of the device – I put it in my pocket to count steps as I rode, and ended up losing it on the side of the trail.

There wasn’t much I could do but mourn my lost fitness partner. It motivated me to get up from my desk and take extra steps.

Amazingly, a few days later FitBit let me know a Good Samaritan found my lost device and mailed it back to the company, asking if they could locate the owner – me.  And they did!

But the remarkable story doesn’t end there.  Fitbit began testing the watch before they sent it back and discovered it wasn’t working.  It seems humidity or weather caused a problem, so FitBit provided a newly-refurbished model to me at absolutely no cost… not a single dollar!

That level of customer service caught my eye.  How could CIMx make customer service a focus?

Focusing on the Customer Experience

For CIMx, Customer Service starts with the sales process.  Our goal is to solve problems, and not just sell software.

Computer devices around 3d small person.

Fake product demonstrations create confusion for many manufacturers. Illustration by http://www.colourbox.com

Many manufacturers are confused by industry-speak and fake product demonstrations offered by other suppliers.  To demonstrate functionality, some suppliers show a video or use software more like a video game than a manufacturing system.  They have to, because they’ll need months of service work and “configuration” to get their product to match your specifications and expectations.

Consider it the shiny video gloss on an ugly system.  There is a core software product there, but it’s not ready for public consumption until they sell you configuration services.  This leads to confusion when the product delivered is nothing like the system at the demonstration.

The savvy prospect knows this.  We often hear we are the only vendor to show a live product demonstration – planned paths and paths driven by real-time questions.  We recently spent 5 hours going through product questions on a live system.  The prospect told us they had never seen a live manufacturing system until that day.  How many times have you seen a multi-hour software presentation built around live Q&A without a single product failure?  We are proud of what our software can do.

We know manufacturing, software, MES and Paperless Manufacturing. When you work with us, you aren’t talking to just another salesperson, but an expert in the field.  We spend time answering questions and educating prospects because we know how frustrating it can be working with a company so focused on the sale they only tell you what you want to hear.

To be honest, there were times in the past where we focused so much on educating we lost a sale.  These days, we’re still known for our consultative approach.  No, we are not consultants, but we play the role because we know manufacturing and technology so well, in addition to offering an amazing software system.  Consultants are paid for their time.

We help manufacturers navigate the confusing (and potentially frustrating) process.  We help them understand what they really need, and how to avoid pitfalls that could destroy any potential ROI or benefit of a system.

A Guarantee for Paperless Manufacturing

We also guarantee both our products AND our services.  Let me say that again.  We provide insurance for you that what you buy is what you get.  We were the first and still the only company I know in our industry that even comes close to this offer.  When we put a proposal together, we stand behind it.  We will deliver on-time 100% of the time.  We will deliver 100% of what we promise.

To me, that’s the core of exceptional customer service. When you purchase a product, you are investing resources and taking on risk the product may fail, or not meet your needs. Without offering a guarantee like that, the supplier is putting all the risk on you. They are being a salesperson and not a partner.

In my mind, FitBit embodies this concept of customer service.  They promised to be my partner in physical fitness.  And in helping me even when I failed (and lost my Fitbit), they went above and beyond in that promise.  They helped me even when I couldn’t help myself.

I’ll be a FitBit customer for life.

Being a partner in manufacturing and technology is our goal with every customer and prospect interaction, helping create CIMx customers for life.

Want to learn more, or talk to an expert about your manufacturing needs?  Contact CIMx today for a free shop floor analysis and see what paperless manufacturing can do for you.