MES users greatly out-perform non

Companies that use manufacturing execution systems (MESs – from electronic production management systems to shopfloor data capture) fare better than those that don’t, to the tune of an average 400% improvement in profitability over three-years. That’s according to a study of top-performing factories in the US by analyst Industry Directions, sponsored by MES software and systems developer Rockwell Automation. It defines MES as per the Manufacturing Enterprise Systems Association (MESA International) view, which is essentially any system that uses current and accurate data, triggers and reports on plant activities as events occur. MES functions manage operations from point of order release into manufacturing to point of product delivery into finished goods. The firm looked at data from 106 plants and found that, regardless of size, industry or process type, plants using MES outperformed and improved faster than those not doing so in several key areas – including profitability, productivity, and the ability to improve on cost and customer service metrics. The study focused on winners of an annual US industry-wide competition over the five-years from 1998 to 2002 inclusive. Of the 106 companies in the study group, 58 use MES and 48 do not. MES users achieved productivity growth from 70% to 600%, while also reducing costs much more dramatically than plants not using MES, including a 57% greater reduction in energy costs. Also, plants with MES had a higher process capability (11%) and experienced largest yield gains (15%). They also had greater reductions in both manufacturing and order-to-ship cycle times, and were more advanced in developing build-to-order systems. Other key findings for MES users: new employees required less training; they work fewer overtime hours; they record higher average machine availability and fewer maintenance problems. Says John McDermott, senior vice president, Rockwell Automation: “As many companies implementing Six Sigma and other business initiatives have discovered, one of the keys to improvement is having accurate, real-time [factory] data to identify the root cause of problems. MES can provide access to detailed production data in a context that helps companies make sound business decisions.”