Potential Savings with Manufacturing IT
Easily calculate the Return on Investment (ROI)
Before investing in a software solution optimizing production, a company wants to be sure that the investment will pay off. We are happy to help you answer this question by pointing out potential savings. Not all potentials can be quantified, but some definitely can.
Quantifiable savings
Successful users of MPDV's solutions could achieve the following results:
- Technical efficiency has risen from 88% to 93% and stabilized.
- Scrap has been reduced from 7% to 3.5%.
- Improved personnel efficiency from 60% to 72%.
- Efficiency has been increased by 10%.
- Machine capacity has increased by 240 hours per week.
- Work in progress has been reduced from €700k to €400k.
- Average setup time has decreased from 1:35 hours to 1:00 hour.
- On-time delivery has been improved by 15%.
- OEE index has improved by more than 15% in 24 months.
- Daily meetings have been reduced from about 1 hour to 20 minutes.
Imagine what such improvements would mean for your company!
And then compare the potential savings to the investment for a Manufacturing Execution System (MES) like HYDRA or an Advanced Planning and Scheduling System (APS) such as FEDRA! The result is your ROI.
Use the following formula to easily calculate the ROI: Divide the costs of investment and the annual operating costs by the annual savings. The result will directly inform you about how long it will take for the investment to pay off.
ROI example calculations
Example 1: Introducing an MES helps to save 50,000 euros per year. Investment costs amount to about 35,000 euros and annual operating costs are estimated at 5,000 euros. The calculation therefore is: 35,000 euros + 5,000 euros = 40,000 euros divided by 50,000 euros. The resulting ROI is 0.8, which means that the investment will have paid off in less than a year.
Example 2: Potential savings are estimated to amount to a total of 100,000 euros. Investment costs amount to 130,000 euros and annual operating costs are 20,000 euros. The ROI is calculated as follows: 130,000 euros + 20,000 euros = 150,000 euros divided by 100,000 euros = 1.5. The investment will have amortized in 1.5 years.
MES benefits that cannot be measured
Our customers also report about the following benefits:
- "With the interdisciplinary MES HYDRA, we have succeeded in mapping the diversity and complexity of all our production processes in the best possible way, thus creating more transparency in production." – Christina Wecker, IT Project Leader at DEHN SE
- "Our MES system HYDRA provides transparent processes in production. Deviations are detected directly and countermeasures are initiated, which we track by way of shop floor routines. As a result, we are able to achieve sustainable, waste-free processes with short throughput times and a high level of delivery reliability. All employees on the shop floor worldwide are perfectly in tune with our MES." – Ulli Duffner, Vice President Global Production Hansgrohe
- "MPDV's MES HYDRA has given us full transparency on the shop floor. Now we know exactly which machine is particularly efficient and which we should replace by a more powerful one. Thanks to HYDRA we can make much more targeted decisions and intervene at the right spots." – Mike Kimbrell, IT Manager for Enterprise Applications at Panduit
- "Thanks to MES HYDRA by MPDV, we have managed to convert our production to face masks without any problems and coordinate all processes optimally at the same time. Now we can produce as many face masks as required in the shortest possible time." – Thomas Heidorn, Responsible for Production Planning at Koziol
- "HYDRA has brought such flexibility to our production that we were able to switch from stock production to customer-driven production planning. This would certainly not have been possible without HYDRA." – Dietmar Quatember, IT Manager at Salinen Austria AG
- "We have managed to get our staff to accept the MES system as an important tool in our daily working routine. We would be blind without HYDRA and could not produce that efficiently. To survive in a fiercely competitive market we need high productivity levels and also the cooperation of our staff." – Michael Weber, Production Manager at Melitta
- "By introducing detailed planning with HYDRA, we were able to significantly optimize our work preparation processes. Employees who were previously trapped in long meetings can now focus on more important tasks. This not only increases the satisfaction of our employees but also our productivity and ultimately our competitiveness." – Friedrich Wilhelm Wengeler, Managing Director of the Wengeler & Kalthoff Hammerwerke GmbH & Co. KG
- "By using MES HYDRA, OWA implements Industry 4.0 in its processes, creates transparency and increases the overall efficiency." – Uwe Bruckner, MES Manager at OWA
- "With HYDRA, we can make optimum use of our capacities and always keep track of all processes. The implementation of this system is an important step towards the intelligent networking of our production facilities and technical and personnel processes with the help of information and communication technology." – Franz-Josef Schlichte, Commercial Manager at ter Hürne GmbH & Co. KG
- "HYDRA has helped us create a consistent data basis for our key figures and will continue to support us as we move on towards Industry 4.0. The digital factory is unthinkable without a well-functioning MES system." – Ralf Brändlin, Head of IT-ERP, Responsible for SAP and MES in the Weber Group
- "Somehow we could manage to deliver on time before the introduction of HYDRA. But the effort is less today. Now we know what is coming." – Matthias Rose, Company Owner and CEO of ROLEC
- "Thanks to MES HYDRA and APS FEDRA, we can inform the customer when they will get their bespoke component upon order confirmation." – Michael Wetzel-Staar, Production Manager at VACOM Vakuum Komponenten & Messtechnik GmbH
- "Today, the use of the MES system is just as natural and indispensable for our employees in production as ERP is in administration. The MES HYDRA offers all functions to control and monitor our production. Productivity KPIs are automatically generated by the MES." – Mathias Schmälzle, Commercial Director and Responsible of the MES introduction at RUCH NOVAPLAST
- "The HYDRA terminal provides important information directly at the workplace. This point of information is increasingly being used to continuously improve our processes. Documents, material orders, production progress, and quality statistics are now triggered or displayed on the terminal. This is a huge step towards paperless production." – Harm Hübert, MES Manager at Phoenix Contact
- "Thanks to HYDRA, we can now reduce downtimes to a minimum or even avoid them altogether. This is possible because process steps such as planning, material staging, machine setting, operation, maintenance, and quality control can be perfectly coordinated." – Ronny Graf, Head of the Injection Molding department at Sulzer Applicator Systems
- "We could significantly improve our planning with HYDRA. Our production planners and group leaders can directly see in the shop floor scheduling application, which machines are threatened by backlogs, and can intervene instantly." – Dr. Alexander Nachtwey, Head of Prefabrication at WIKA
Successful with MES
For further information on manufacturing companies using an MES like HYDRA by MPDV, see also our Reference Videos and Success Stories.
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