How to Justify the Investment in an MES Solution
Businesses must adapt and automate
In order to thrive in the post-Covid19 world – and simply to survive in the Fourth Industrial Revolution (aka Industry 4.0).
In order to retain or boost competitiveness, they must increase efficiency, profitability and productivity. There is no alternative.
They must gain faster insight and analysis of their businesses, in real time. More transparency leads to:
- better management of resources,
- less waste and
- less capital tied up in stock.
This cannot be done with manual systems
Automation is essential to faster operational processes, quicker insight leading to less downtime, and better control of materials, job status and operational performance.
It is easy to say ‘automate’ but businesses have to identify the right systems for their situation and ensure that solutions are scalable, to deliver growth strategies and achieve future ambitions.
Affordability is key
- Financial resources are constantly under pressure; even more so in the post-Brexit and ongoing Covid-19 uncertainties. Any investment must have a strong case. In the UK, the Chancellor is encouraging businesses to invest in equipment, through enhanced Annual Investment Allowances. However, those only cover capital investment – which can include computer hardware but, perhaps paradoxically, software and applications, particularly when purchased by means of a regular payment, are regarded as revenue expenses. Allowances should be claimed in the profit and loss account.
But before relief can be claimed against tax, the business has to be profitable.
The key justification for an MES solution is that it will help the business to become more profitable and commercially sound by enabling faster, more efficient and more effective resource management.
LYNQ MES is a single solution that helps manufacturers realise greater productivity and profitability, relatively simply, without the complexity of many manufacturing execution systems – and at a fraction of the cost.
ROI
Return on Investment (ROI) is commonly achieved within months, rather than years. Some customers have reported dramatic returns, with millions of Pounds or Dollars released from excessive inventory, through improved management of stock, processes and purchasing.
A rapid ROI begins with the investment commitment. LYNQ MES is a next-generational web-based technology meaning that it can be easily configured for any industry and any device. Automated data capture is standard for more than 140 drivers to the most common PLC/IO devices, for ease of connection.
- Fixed-price initial implementation can be achieved in less than 12 weeks. With a customer’s commitment, LYNQ can be implemented quickly and easily in less than twelve (12) weeks, therefore the wait is not long before the ability to start seeing the benefit and ROI.
- Savings are achieved quickly. Customers have reported productivity increases in excess of 30%. More than half report reduced labour costs and nearly half recorded reduced defects and errors. Just under a third saw an increase in output and improved delivery and service performance. Forty-five per cent saved material costs and one customer reported a reduction of inventory worth $5 million in six months.
The financial case for MES is financially solid and even more so, when it is delivered quickly with proven ROI statistics.
In the next piece, we will look in more detail at how to achieve IEC standard
