Tag Archives: ROI for MES

A Rapid ROI for MES and Manufacturing Software

By David Oeters, Corporate Communications for CIMx Software

Today, with improvements in software technology and lower hardware costs, Manufacturing Execution Systems (MES) and software platforms such as Quantum are viable solutions for manufacturers of any size and industry.

However, companies are still reluctant to embrace software mostly founded on a mistaken perception of the cost. Even as companies struggle with the critical problems, bleeding revenue and creating inefficiencies that hinder business growth, there’s reluctance to implement, or even investigate, software as a solution. They don’t see an easy ROI, or believe a different software solution will drown their processes in complexity, so they turn to their ERP for an expensive module or create a homegrown spreadsheet solution.

These temporary, flawed solutions add business costs without fixing anything. A spreadsheet or an add-on for your accounting software isn’t going to solve a critical production issue, eliminate scrap or stop production errors. Implementing a solution that doesn’t solve the problem adds cost with no return.

Solving Production Problems with Manufacturing Software

Solving manufacturing problems requires a solution focused on the specialized needs of modern production.

The foundation of modern production is workflow. The workflow-based solution found on Quantum solves problems and supports modern production. The software attacks the root cause of problems using the natural rhythm of manufacturing workflow, reducing complexity rather than adding it. With a manufacturing-focused workflow solution, companies using Quantum enjoy a rapid ROI that generates revenue for the business, adding profit rather than expense. Consider a few ways the solution fuels your rapid ROI:

  • Eliminate errors. Paper-based processes cause errors. The Quantum digital solution eliminates those errors. Every problem prevented during production, or rapid solution implemented, accelerates manufacturing output. Keep the shop floor focused on revenue-generating activity for a rapid ROI.
  • Production accuracy. Guesswork creates waste and increases cost. If your production team doesn’t have access to accurate (and timely) production data, they rely on guesswork for estimates, scheduling, and disposition plans. Production visibility in Quantum increases accuracy and output.
  • Embrace efficiency. Inefficiency is costly. Paper build books and travelers, manual production reports, and missing or faulty information are constant expenses. Anything that pulls a worker away from production has a negative impact on the bottom line. Companies need to see homegrown solutions and ERP add-ons for what they are – centers of workflow inefficiency.
  • Increase output. As Quantum eliminates problems, the business runs better. The company increases output without adding new workers or machines. Over time, as additional waste and unnecessary costs are identified and eliminated, output will further increase adding to the ROI of the solution.

Analyze Your Savings

To better grasp the expense of problems, you need to analyze both the current cost and the savings that accrue once the solution is in place.

For example, analyzing the true cost of quality blindness requires the manufacturer not only consider the cost of scrap and late shipments, but also the time and resources required to solve each quality escape. How long does it take the shop floor to report a problem?

For most manufacturers, problems result in a double-hit for the company – added costs and lost profits.

Once Quantum is in place, the company benefits not only from lower scrap and on-time shipments, but also increased output as the shop floor focuses on production rather than fixing problems. This accelerates the ROI, constantly generating revenue and adding to the bottom line.

Want to learn more, or see how quickly you can benefit from manufacturing software and Quantum in your business? Contact CIMx today about the Quantum manufacturing platform for manufacturers.