Tag Archives: labor management software

How to Get the Paperless Manufacturing System You Want

There are numerous options for companies researching MES and paperless manufacturing, we take a close look and evaluate two of those options.

By David Oeters, Corporate Communications at CIMx Software

Ensure your paperless manufacturing solution solves problems, and doesn't create them. Photo by www.colourbox.com

Ensure your paperless manufacturing solution solves problems, and doesn’t create them. Photo by http://www.colourbox.com

It is much more difficult to build a car than buy one.  So, even though I’m annoyed by side view mirror controls that dig into my wrist, and I bang my head when I put my daughter in the car seat, I won’t re-engineer the work involved in current car designs to build my own (even though a robot vacuum to clean up after the kids is simply brilliant).

Build versus buy is not only a question in cars, but also MES and paperless manufacturing.  As businesses research the benefits to production, quality, and data collection found in paperless manufacturing, each must decide whether to build their own system, or buy from a vendor.  There are advantages and disadvantages to each option.  For this blog, we’ll look at points to consider as you make your own evaluation.

Design

The ability to design a paperless manufacturing system and control the final product is often the primary reason a company will build rather than buy.  Every manufacturer is different, with different processes and unique needs.  Incorporating internal processes and needs at the beginning of development helps ensure a better product.

Ensure your paperless manufacturing project isn't one best left to the experts. Photo by www.colourbox.com

Ensure your paperless manufacturing project isn’t one best left to the experts. Photo by http://www.colourbox.com

To successfully build your own system, you must understand those processes and needs before you begin.  Determining the system requirements can take 2 months or more, and requires significant input from the manufacturing team (pulling them from the shop floor), and management.  You should also assume some slippage in the project timeline.  No matter how much planning is done, you can’t plan for everything once the code begins flowing.

Any items not included from the initial system requirements will exponentially increase the cost in time and resources for the project.  You also need to consider that every requirement you identify for the system will add to the cost.  If you have the stomach for the time and money it will take to complete the system, you’ll have the system you want.

Making changes to a system you bought can also be costly.  A risk companies run into is creating a “custom” system that will be more difficult to support.  When purchasing, make sure to do your research and ask for demos using your current work instructions to see how the installed system will work on your shop floor.

Implementation

Implementation involves taking the initial design and writing code for it, then installing it on the shop floor.

A system built internally begins with the 2+ months to determine the system requirements before programming and development begins.  In addition to programmers, the project requires an expert in User Interface to eliminate unnecessary complexity, and a Data Base Administrator (DBA).  Specifications will also affect the final cost of the system.  Consider the database and platform, and plan for a product that will work not only now, but in the future for your business.

There are ways to lower cost, such as removing functionality, minimizing testing, or utilizing internal resources, but there are costs associated with these measures, and could affect the long term viability of the system.  Evaluate the return and cost for each decision before making choices you may regret.

System integration is another point to consider.  Manufacturers and businesses use a number of different software systems and databases.  Ensuring those systems work together smoothly is often overlooked in planning. 

How much risk and cost can your business manage for a paperless manufacturing .

How much risk and cost can your business manage for a paperless manufacturing .

Purchased systems offer a much lower cost for implementation.  Today, there are paperless manufacturing systems that can be installed and integrated in less than two weeks with no disruption of shop floor processes.  However, you will not have the design control you have in a built system.

Configuring, adapting, and integrating the system can take longer.  Also, beware of systems that require that your shop floor processes adapt to the software, which can significantly increase implementation.  Look for MES or paperless manufacturing systems which can reuse your existing work instructions and processes to reduce implementation time and training.

Reliability

A paperless manufacturing system is only useful if it is up, running, and secure.  The long-term reliability and maintainability of the system must be considered in planning.

Every system requires maintenance and upkeep, especially in an industry such as manufacturing where changes in technology and processes are common.

Evaluate the ROI of a home built MES, then work with a software provider to go over the ROI for their system. Photo by www.colourbox.com

Evaluate the ROI of a home built MES, then work with a software provider to go over the ROI for their system. Photo by http://www.colourbox.com

With a system built internally, evaluate how much time and resources you will assign to the maintenance.  Will you have access to the team that originally built the software?  They are best positioned to maintain the system.  How will you handle bugs?  How much time in testing, both integration and regression testing, will you accept to repair bugs and flaws in the system.  If you see maintainability as a low priority, are you and your team willing to accept temporary patches, flaws, and workarounds in addition to a slow slide toward software obsolescence?  Is there a plan to upgrade the system? Considering these issues early in the planning process will help eliminate future surprises, and determine the lifetime cost of the system.  

The truth is, many businesses significantly underestimate the resources necessary to successfully maintain a system.  Most times they won’t intentionally underestimate to work required for maintenance, but once they better understand the requirements, they’ll be forced to make sacrifices and the solution will no longer be optimized.

Almost all home built software become “legacy” once the project is complete.  If the team that built the system isn’t on staff, the product cannot be tested and is therefore legacy software.  Future modifications will be exponentially more expensive.

Reliability and support for a purchased system will depend on the vendor supplying the software.  Many vendors offer an inexpensive system initially, and then charge higher fees for service and maintenance.  For example, a consultant will often install a base system very quickly, and then require further services to ensure the system works as promised. 

Look at the product support before making a purchase.  A system with a large support staff will expect customers to help pay for the staff through service charges.  Are there fees for upgrades or patches?  How is the product maintained? 

Many software systems require a license fee, which often includes product support.  Most purchased systems have been installed and used countless times, which can be seen as continual product testing, ensuring a more reliable and error free platform.  The total cost of the software and maintainability is shared by all the customers. 

Reliability in the system helps build the ROI, so take time to make an informed decision.

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As you evaluate paperless manufacturing options, keep in mind a company specializing in manufacturing software systems rely on years of expertise in both manufacturing and software development. They will be marketing the product for years, and will continue maintenance and testing, to ensure the system works.

Choices and options.

Take a close look at the resource requirements necessary for maintainability. Photo from http://www.colourbox.com.

But, building a system internally allows a level of customization and control a purchased system can’t match.  Your evaluation comes down to a simple question – is the benefit of increased customization and control (or other motives driving you toward the solution) worth the increased cost in time, resources, and risk?  Look at not just the initial product, but the long-term investment.  Have a plan in place for continuing to maintain the system and ensuring the design of the system isn’t trapped in an information silo.

There is also risk and cost in purchasing a system.  Some vendors sell systems that aren’t well maintained or supported, or have hidden costs.  paperless manufacturing in the Cloud has associated risks.  You may not have all the functionality you wanted with the system, since it wasn’t designed internally, but you benefit from lower cost and lower risk for your shop floor.

There are advantages and disadvantages to building and purchasing an MES or paperless manufacturing system, and each company must evaluate the options with internal criteria before making a decision.  When building a system, you can get what you want if you are willing to spend the money and resources necessary, and you can mitigate the risk of potential failure.  You also need to be aware that a paperless manufacturing system is not a “one and done” project. It requires ongoing maintenance to continue to meet the needs of your business.

Success requires willingness to pay, a stomach for risk, and a devotion to maintainability. Which is why my brilliant robot vacuum is still a dream, and there are still crumbs in the backseat of my car.

Are You Putting “Best” Into Manufacturing Best Practices?

Are You Putting “Best” Into Manufacturing Best Practices?

“Best Practices” has become an industry buzzword so overused it is more “buzz” than word.  In fact, a recent study discovered the phrase “Best-Practices” was used more than 4,600 times in industry press releases.

Reliable metrics and data collection is an integral part of any best practice initiatives.

That’s too bad, because a best practice program offers tremendous benefits to manufacturers through increased quality, and reduced errors, non-productive work and variation.  But, like the latest fad diet, concepts this “buzzy” often lead to short term improvements and not real sustainable change.

There are three key components in best practice campaigns: people, process and technology.  First, you need to have buy-in from people on the shop floor to implement process improvements.  Empower and prepare people to make changes, otherwise production might suffer as you struggle to micro-manage process changes for your team.

Also consider your process as you plan a best practice campaign.  You need to have a process for not only identifying a best practice, but implementing the process change.  If the processes you are using require significant production downtime to make a change, the net result of the best practice exercise won’t benefit the business.

Finally, many best practice campaigns are only made possible by technology and tools which can evaluate a production process and help sustain the improvements with procedural enforcement, creating a culture of accountability. Software tools like MES which offer real-time visibility of the shop floor and accurate production process control are invaluable for sustainable best practice improvements and operational excellence.

Do you have the tools to capture real-time production data?

Before you begin any Best Practice initiative, study these three components in your own business to evaluate your potential success.  If your technology component doesn’t offer real-time visibility of production processes, then you won’t be able to measure or maximize your best practice benefits.  Similarly, without buy-in from the shop floor team success will be difficult to achieve.

A careful balance between people, process and technology are essential for success.  There may be costs associated with attaining this balance, but the benefits of the change will not only give your company a competitive edge, but also support sustainable best practice process improvements far into the future.

A successful process improvement campaign can be a game-changer for manufacturers.  Implementing best practices, Six Sigma improvements or Lean Manufacturing is a step toward achieving operational excellence, but sustainable change can only be attained once the proper tools are in place.  The right technology that enhances processes and empowers people is the BEST “Best Practice” in today’s competitive environment.

Have you had any success implementing best practices in your company culture?  What steps have you taken to empower employees to enact best practices, and what tools have you found to help sustain change?  Let us know, we’d love to hear from you!  Join us next time as we take a closer look at paperless manufacturing, and how it can help you find manufacturing success today.

Calculating ROI for an MES can be a MESS

Calculating ROI for an MES can be a MESS

But it doesn’t have to be.  Avoid the mess with a few simple tips!

The other day I was playing Go-Fish with my son.  The entire game, he seemed more interesting in Going Fish than finding pairs.  Finally, I dropped my last card, while he held an entire stack of cards clutched in his hand.  “Ha!” he laughed. “I win, Daddy!”  Arguments about rules didn’t matter, because we weren’t playing the same game.

Calculating ROI for an MES has the potential to be a lot like playing cards with my son.

Calculating an ROI is an important step in justifying a capital expenditure.

ROI is an important step in planning a capital investment like an MES solution.  Businesses go to great lengths to draft criteria and benchmarks for their ROI, which becomes a key piece of evidence in justifying project expense.  MES vendors make claims about their customers achieving ROI.  But, like playing cards with my son, trying to compare ROI can be frustrating when everyone uses different rules.  Different manufacturers and different industries use different criteria for their ROI analysis, making claims appear untrustworthy.

But calculating ROI is not a meaningless exercise.  Start the process by looking at why you are implementing a new MES.  For most manufacturers, there is some business “pain” motivating the project.  Study the value or savings achieved if the MES is implemented successfully and the pain removed.  Use this as you calculate ROI.

Many times there will be “soft” savings which are hard to quantify but have a significant impact on business, such as increased productivity.  They may require estimates.  Market data can help create a more accurate estimate.

During the planning stage, you will find many internal users see the MES as an opportunity to make their job easier.  This leads to calls for “additional” functionality in the MES beyond the original scope.  Added functionality often has a negative impact on ROI.  One solution would be to implement the MES in phases, with the original pain becoming the first phase.  Additional phases address other pains.  Before you implement each phase, calculate the cost and adjust your expected ROI to justify the new functionality.  This will give you a more accurate view of ROI.

Plan your project in phases to ensure you meet your ROI expectations.

The secret to accurately calculating ROI for an MES isn’t a magic algorithm or formula, it’s being aware of the challenges facing your plant, assigning a value to the solution, and being disciplined in your approach.  How many times have you been involved in a project in which the final ROI was never achieved or even measured?  How many companies use ROI to justify the project, but never expect it to be achieved, and what does this say about the business?   Use your ROI calculation and be disciplined to avoid  lower profits or cost overruns.  Share any best practices or experience you have in the comments below.  We’re happy to answer questions.

Next time, we’re going to look at Manufacturing Best Practices and consider if it’s time to re-evaluate what makes a practice “best.”  See you then!

The Power of Software: A Transformative Technology

Transformative TechnologyEngineering software is a transformative technology that has improved company design and development processes for many years. Product engineering depends on sophisticated software systems to create new competitive products. In many cases, the software systems can automatically optimize design elements and help engineers solve potential problems early in the development process. This greatly reduces the cost and the time to market of new products.

Product manufacture also depends on this transformative technology to assist with scheduling, shop floor information management, labor tracking and other aspects of running a dynamic production facility each day. Without these systems, manufacturing cannot be nimble enough to meet the challenges of today’s business environment.

In order to remain competitive in the accelerating global economy, manufacturing must take another step toward modernizing the shop floor. This can be accomplished through software that helps error-proof and optimize the manufacturing process. Removing  the source of many shop floor errors not only improves the bottom line, but also optimizes and transforms the production process leading to a reduction in cycle time.

New advances in software technology enable greater ability to optimize shop floor processes and approach the level of software sophistication that has been available for years in  engineering organizations.  Paperless manufacturing is a proven transformative technology that can improve the quality and efficiency of a production process. The design and implementation of modern software systems makes paperless manufacturing affordable for not only large companies, but also midsize companies. Software can transform a shop floor into a highly efficient, nearly error-free environment that adds value to a company’s top line and bottom line.