Build a solid business case

While costs have decreased by several orders of magnitude since the first MES systems were implemented, the investment required can still be significant. Therefore, it’s necessary to build a strong business case to justify a project.

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“This is the start of a new digital future for Elekta. The payback on the MES is already coming from cost savings, increased efficiency, and easier compliance. We also benefit from freeing up resources to enable our business to innovate more and greater agility to respond to our customers’ demands.”

Mark Kaak VP Global Manufacturing Elekta Limited

Quality

Benefits associated with yield and product performance improvement, which impact customer satisfaction.

    Production yield
    Increased through:
  • Analysis of process and equipment data, benchmarking
  • Online process control (using SPC or other types of monitoring)
  • Enforcement of business processes (e.g. sampling, maintenance)
  • Increased degree of automation
  • Early containment of process or equipment excursions (with full traceability to affected WIP)
  • Benefit calculation: Value of the yield improvement x volume
    Customer product returns
    Reduced through:
  • Online process control (using SPC or other types of monitoring)
  • Enforcement of tests and inspections
  • Benefit calculation: Avoided cost of each product return + value of customer satisfaction and retention
    Product performance
    Increased through:
  • Analysis of process and equipment data, benchmarking
  • Benefit calculation: Value of product performance improvement x volume
    On time delivery
    Increased through:
  • Scheduling and dispatching
  • Real-time status and visibility
  • Benefit calculation: Value of customer satisfaction for on-time delivery

Productivity

Benefits associated with a higher output with the same resources, or the same output with less resources.

    Production volume
    Increased through:
  • Increased degree of automation
  • Scheduling and dispatching
  • Real-time status and visibility
  • Proactive actions and alarms (e.g. Inventory levels, expiration dates, maintenance tasks)
  • Industrial engineering (including Overall Equipment Effectiveness - OEE), data analysis, benchmarking
  • Benefit calculation: Value of additional volume
    Cycle time
    Reduced through:
  • Increased degree of automation
  • Scheduling and dispatching
  • Real-time status and visibility
  • Industrial engineering data analysis, benchmarking
  • Benefit calculation: Value of shorter lead time for the customer + value of earlier revenue realization
    WIP
    Reduced through:
  • Increased degree of automation
  • Scheduling and dispatching
  • Real-time status and visibility
  • Industrial engineering data analysis, benchmarking
  • Benefit calculation: Value of interest on saved working capital + value of saved physical space and buffer/storage locations
    Cost
    Reduced through:
  • Scheduling and dispatching
  • Real time status and visibility
  • Benefit calculation: Value of customer satisfaction for delivering on time

Regulatory compliance

Benefits associated with mandatory compliance to country and/or industry regulations (such as FDA CFR Part 21 for medical devices in the USA).

    Production volume
    Increased through:
  • Business process and regulation enforcement
  • Electronic tracking and traceability
  • Benefit calculation: Cost of compliance without using MES

Agility

Benefits associated with the time and cost to introduce new or modified products and processes.

    New Product Introduction (NPI)
    Increased through:
  • Flexible master data configuration
  • Flexible business rules definition and implementation
  • System enforcement and execution of business processes
  • Rapid personnel training via intuitive user interface screens
  • Benefit calculation: Cost of new product and process introduction without using MES + value of additional time saved (in terms of time-to-market)
MES Hardware Depreciation
  • Recurring cost (not incurred if hardware is not renewed at the end of depreciation period).

MES Software Licenses
  • Cost incurred one time, during the project implementation.

  • Other licensing models are also available based on a monthly/yearly fee or pay per usage model.

MES Software Maintenance
  • Recurring annual cost, after project implementation.

  • Typically includes access to new software versions and product support.

MES Implementation Services
  • Cost incurred one time, during the project implementation.

  • Typically, MES implementations evolve with a company’s growth, changing requirements and the need for additional capabilities over time. The majority of services and cost are associated with the MES introduction.

MES Project Implementation
  • Cost incurred one time, during the project implementation.

  • Operational MES utilization is part of the daily job of the internal employees.

  • The availability of key users to support the MES Implementation project is essential.

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