The 6 most common signs that your company already needs an MES system

Implementing a manufacturing MES system has a transformative impact on operations from optimizing production processes to improving quality control, an MES system significantly enhances the efficiency and productivity of manufacturing and assembly operations.

However, production facilities often overlook the signs that indicate it's time to consider implementing an MES system. That's why we've compiled a summary of the six most common indicators that your manufacturing process needs an MES system.

Whether your company is struggling with:

• inefficient production,
• quality issues,
• or inventory tracking,

an MES system can bring to your operations:

• process monitoring,
• production data analysis,
• and effective tools to optimize the management of manufacturing and assembly processes in real-time.

By identifying that your facility is ready for an MES system in time, you can avoid a cumbersome—and often costly—digitization of your manufacturing processes as well as other associated business processes.

How to Know If Your Manufacturing Process Needs an MES System

1.Inefficient Production Processes

If your production processes are not reaching the desired efficiency, or bottlenecks and repeated delays in the delivery of finished products are occurring, it could be a sign that optimization is needed, where an MES system can help.

Inefficient production processes often lead to significant losses in both time and resources. Delays on production lines and bottlenecks are common indicators of declining production efficiency and have a direct negative impact on productivity and profitability.

After implementing an MES system, companies typically improve cycle times by an average of 15% and reduce the time needed to produce a product by 14%. These improvements result from advanced MES systems' ability to detect the causes of decreased productivity and subsequently optimize processes to prevent recurrence.

The most common causes of decreased production efficiency include:

a) Poor production planning and scheduling

Inadequate planning and scheduling can lead to insufficient or improper use of resources, causing delays and emergency stoppages on production lines or other equipment.

b) Lack of automation and technology

Manual processes, outdated equipment, and non-standardized workflows increase the production time per product and often result in rising error rates.

c) Insufficient training and skills

Untrained or improperly trained employees, especially shortly after joining or rotating to a new position, are more likely to make mistakes, leading to delays and reduced overall process quality.

d) Equipment failures and maintenance issues

Equipment breakdowns and maintenance problems cause emergency production downtime, halting production lines and creating bottlenecks along with unplanned delays.

e) Quality problems

Defects, errors, and rework reduce production productivity, as employees must exert extra effort to fix or rework them, increasing operational costs that could otherwise be avoided.

f) Insufficient communication and collaboration

Poor communication and collaboration between departments, teams, and employees on the shop floor contribute to increased delays and product defects.

g) Inefficient supply chain management

Supply issues, such as delayed, incorrect, or insufficient material and component deliveries, lead to production stoppages, lowering overall productivity and process quality.

h) Poor inventory management

Excessive or insufficient inventory slows down production and assembly processes and leads to unnecessary waste.

i) Occupational health and safety (OHS) issues

Accidents and injuries on the shop floor can result in equipment failures and reduce productivity, as managers must find replacements or reorganize teams and tasks.

2. Insufficient Quality Control

If you experience quality control problems, high error rates, or fluctuating product quality in your production, an MES system can help by monitoring deviations in quality indicators and identifying the causes of reduced quality

Quality control is a critical part of any production process, and poor quality causes additional costs to the company, which in annual averages represent a significant amount. High defect rates and inconsistent product quality are common indicators of misaligned quality control, leading to customer dissatisfaction, complaints and reputational damage.

By implementing an MES system, companies can achieve a 17% reduction in defects and a 20% increase in first-pass yield (FPY), meaning products pass through the manufacturing process without defects on the first attempt. These improvements are partially due to the real-time monitoring and analysis of production data, enabling MES systems to quickly identify and prevent quality issues or apply corrective measures.

Real-time process monitoring allows production managers and supervisors to detect quality problems as they occur. Advanced MES systems analyze production data to identify trends and recurring patterns, helping to better diagnose the root cause of emerging quality issues. In addition, this information can assist in adjusting the settings of production equipment or assembly tools, or in retraining employees to prevent recurring quality problems.

If a manufacturing company has a high error rate in the case of a particular product line, with an MES system it can monitor the production process in real time and analyze the data to identify the cause of the errors. The system can detect a misalignment of a machine or an anomaly at a specific production site. The maintenance staff will check the correctness of the settings of the relevant equipment or the superior will retrain the employees at the workplace where there is a drop in quality.

3.Missing production data and inaccurate indicators

If the production company lacks an overview of production data in real time, such as the current performance of the relevant equipment, the status of stocks or the status of orders in progress, the MES system enables monitoring and analysis also for the purpose of optimizing production processes and reducing downtime.

An overview of current production data is essential for businesses to make informed and qualified decisions about their practices and processes. Without this visibility, production managers cannot accurately, clearly and promptly identify production inefficiencies, optimize processes or prevent downtime.

On average, deploying an MES system with monitoring and analytics tools leads to a 22% improvement in overall equipment effectiveness (OEE) and a 30% reduction in unplanned downtime. These improvements are due in part to the monitoring and analytics features of the MES system, which provide managers with the up-to-date and accurate insight into production and associated processes that they need to make informed decisions.

Manufacturing companies often encounter unplanned downtime due to lack of visibility into inventory levels. The MES system automatically monitors the required inventory levels and sends notifications and alerts before inventory falls below a critical level. Advanced control systems monitor material availability also based on predictive planning and production planning.

4. Unmanaged stocks and internal supply

If the company has problems with monitoring the state of inventory, such as not only a lack of material, but also restocking or moving components, the MES system will help with the optimization of warehouse stocks and also help with the automation of intra-company supply coordination.

Inventory management is a key aspect of any manufacturing business. Difficulty tracking inventory often results in missing material, overstocking, and associated costs. Manufacturing companies that struggle with in-house supply can benefit from the implementation of an MES system that not only monitors the status and movements of stocks, but with proper integration can also manage them, especially in combination with WMS systems.

The MES system allows production managers and supervisors to track current stock levels as well as predictions based on the current production pace or orders. When an anomaly occurs or when a critical limit is approached, the system sends notifications and alerts. In the case of advanced MES systems with a predictive management function, the system automatically adjusts supply strategies and optimizes intra-company logistics procedures.

When an MES system is put into operation, there is an average of up to a 21% reduction in the volume of inventory held in the warehouse due to more dynamic supply strategies and a 17% improvement in on-time delivery of materials.

If a business is experiencing repeated stock shortages because it does not have accurate and correct inventory write-offs, an MES system will help it track the availability and quantity of material or components in real time. The system sends automatic messages if the levels of a certain type of inventory drop to a critical level, giving the logistics and purchasing department enough room to secure the required type of material and avoid downtime and production shutdowns.

In this way, the MES system enables communication between departments to be more efficient and to strengthen their cooperation. By analyzing the movements of materials and their consumption, the MES system can adapt supply strategies to better suit the current production plan and the current availability of company resources. Even with such an approach, operations can prevent overstocking and unnecessary tying up of capital in inventory.

5. Insufficient traceability

If a manufacturing company has traceability issues, such as tracking raw materials, material or product batches, the MES system ensures compliance with all regulations and laws in regulated and unregulated industries by creating detailed digital birth certificates and enhanced traceability.

Traceability is a critical requirement for manufacturing companies in regulated industries such as the food industry, aviation or the pharmaceutical industry. Lack of traceability leads to regulatory violations, reduced quality and an increased risk that a product or an entire lot will be withdrawn from sale if there is uncertainty about its origin or the ingredients, substances or materials used.

The MES system automatically monitors and records the types and quantities of raw materials used and product batches produced in real time. This allows managers to quickly and accurately identify the source of problems in the event of suspected quality or non-compliance with production procedures and to take adequate measures in time before the goods or product reaches the market.

If manufacturing companies need to monitor the use of precise raw materials in mass production, while the company produces products with several variants, the MES system recognizes and records all used raw materials and identifies in which products they were used by a unique identification number.

This ensures that only approved and correct raw materials, materials or ingredients enter the production process. If unauthorized ingredients or somehow defective material were to enter the production through some oversight, thanks to detailed traceability and a digital birth certificate, it will be possible to catch the contaminated or defective product before it leaves the company. Putting the MES system into operation results in an average 22% reduction in the number of product recalls and a 25% improvement in compliance with prescribed standards.

6. Inability to further scale processes

If a manufacturing company has problems with further scaling of processes and operations, for example in the face of rising demand or expansion into new markets, the MES system allows to dynamically scale processes and adapt procedures to changed production parameters.

As manufacturing companies grow and expand, they often hit their limits when scaling operations and processes. These restrictions not only contribute to production delays and reduced production capacity, but also complicate individual production processes. MES systems inherently bring about the streamlining of production processes, while in the case of advanced control systems it is possible to further scale the processes, either by expanding corporate resources, production volumes, or by adding additional procedures or services to existing production and assembly processes. By streamlining and optimizing production processes, MES solutions allow manufacturers to increase their production capacity, maximize the use of resources and increase the overall efficiency of operations.

As businesses seek to expand their operations, Industry 4.0 initiatives and advanced digital technologies are becoming increasingly important. MES systems integrate seamlessly with these technologies and enable the development of a connected and intelligent manufacturing ecosystem. Modern production management systems support the implementation of agile and flexible production strategies, such as the principles of Just-in-Time deliveries also in production, or lean manufacturing (Lean Manufacturing), which are key to further scaling not only operations, but also overall performance.

The highest time for the MES system

With the right tools and strategies, the above 6 challenges can be overcome. One such tool is the MES system, which helps companies optimize their operations and increase productivity and efficiency.

If you encounter two or three of the problems described above in your company, it is high time to start looking for an MES system. In addition, the MES system is an investment that will pay for itself, because a properly designed system and optimization of production processes can get a return even between 12-22 months.

If you are still hesitating, our experienced smart industry consultants and analysts will be happy to advise you on what to focus on when choosing and implementing an MES system. Contact our smart industry team.