In our final instalment of the our mini series on “Monday MES“, lets explore how you can measure how MES can improve operations performance?.
In our previous posts we simplified the definition of MES (to Gordon Ramsay!) and looked at why MES should be part of your digital strategy. In this final post we go deeper into the WHY and explore the need to measure the benefits and what they should be. Most importantly, we reference some real impact MES can have on your operations!
What are the KPI’s to measure how MES can improve operations performance??
When you decide to establish a MES to support your operations, you need to tie it back to your financial drivers, your goals and the key performance indicators (KPI) which you can measure success by. This is not always straight forward and the TRANSFORMit! approach by Nick Leeder & Co can help you understand the links between your KPI’s and how MES can help you.
There are a number of metrics that can support the benefits of a MES system which are commonly used by manufacturers. Some of the most common metrics include:
- Overall equipment effectiveness (OEE): OEE is a measure of how effectively a machine or production line is being used. It is calculated by multiplying three factors: availability, performance, and quality.
- First-pass yield (FPY): FPY is a measure of the percentage of products that pass quality inspection on the first attempt.
- Throughput: Throughput is a measure of the number of units produced in a given period of time.
- Cycle time: Cycle time is the amount of time it takes to produce one unit of product.
- Downtime: Downtime is the amount of time that a machine or production line is not operational.
- Inventory turnover: Inventory turnover is a measure of how quickly inventory is sold and replaced.
MES systems can help manufacturers to improve all of these metrics. For example, an MES system can help to improve OEE by reducing downtime and improving performance.
An MES system can also help to improve FPY by identifying and addressing defects early in the production process. And an MES system can help to improve throughput by optimizing production schedules and reducing waste.
In addition to these quantitative metrics, MES systems can also help manufacturers to improve qualitative metrics such as customer satisfaction, product quality, and employee productivity.
By how much would MES help improve these KPI’s?
Here are some examples of how MES systems can improve specific metrics:
- OEE: A study by the National Association of Manufacturers found that MES systems can help to improve OEE by up to 20%.
- FPY: A study by the Manufacturing Performance Management Association found that MES systems can help to improve FPY by up to 10%.
- Throughput: A study by the Aberdeen Group found that MES systems can help to increase throughput by up to 15%.
- Cycle time: A study by the Manufacturing Enterprise Solutions Association found that MES systems can help to reduce cycle time by up to 20%.
- Downtime: A study by the Manufacturing Leadership Council found that MES systems can help to reduce downtime by up to 30%.
- Inventory turnover: A study by the Manufacturers Alliance for Productivity and Innovation found that MES systems can help to increase inventory turnover by up to 25%.
Of course, the specific benefits that a manufacturer can expect to achieve from a MES system will vary depending on the specific system that is implemented and the specific needs of the manufacturer. However, the metrics listed above can provide a good starting point for measuring the impact of an MES system on a manufacturer’s business.
Find out more about Nick Leeder & Co
Nick Leeder & Co is dedicated to empowering businesses in the manufacturing sector. By implementing industry-leading techniques like IGNITEIt! incorporating the Smart Industry Readiness Index, companies can streamline their operations, optimise processes, and deliver high-quality products to the market faster than ever before.
Whether it’s enhancing efficiency, embracing new technologies, or fostering a culture of continuous improvement, Nick Leeder & Co is at the forefront of supporting UK manufacturers in their digital transformation journey. We co-pilot manufacturers through their transformations to successful outcomes and bring decades of front-line experience in delivering changes in complex and global organisations to bear.
So, join the transformation revolution and unlock the true potential of your manufacturing business with Nick Leeder & Co’s transformative solutions and learn more about the power of digital manufacturing in our blog series “Transformation Tuesdays“.
