Study reports advantages of manufacturing execution systems

A new study of the nation’s top-performing factories has found that those using manufacturing execution systems (MES) have a considerable performance advantage over those that don’t use MES, including a 400% improvement in profitability over a three-year period.

06/10/2004



A new study of the nation’s top-performing factories has found that those using manufacturing execution systems (MES) have a considerable performance advantage over those that don’t use MES, including a 400% improvement in profitability over a three-year period. Rockwell Automation sponsored the research, conducted by Industry Directions, a manufacturing and supply-chain analyst and consulting firm.

The study analyzed survey data from 106 plants and found that regardless of size, industry or process type, plants using MES outperformed and improved faster than those not using MES in a number of key areas, including profitability, productivity, and the ability to improve on specific cost and customer service metrics.

The study focused on survey data submitted by companies that were judged to be among the top-performing plants in North America in an annual industry-wide competition over a five-year period (between 1998 and 2002). The database included all responses to the 237 questions on which these companies were judged. Of the 106 companies in the study group, 58 use MES and 48 do not.

 

The analysis showed that plants using MES have higher productivity and improved operational productivity more rapidly than others over the previous three years. Productivity growth ranged from 70% to as much as 600% for plants using MES. In addition, plants with MES were able to reduce costs more dramatically than plants not using MES, including a 57% greater reduction in energy costs.

 

The study also found that plants with MES have a higher process capability (11% better) and larger yield gains (15% greater). Furthermore, plants using MES have greater reductions in both manufacturing and order-to-ship cycle times and are more advanced in developing a true build-to-order model to meet just-in-time demands.

 

For more information or a copy of the summary report, visit the Web site .

—David Greenfield, editorial director, Control Engineering, dgreenfield@reedbusiness.com





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