The Nestlé company has a market capitalization of over $304.1 billion and employs 291,000 employees. Launched in 1866, it has been a household name up to this day.
However, even this Swiss-owned corporate giant isn’t immune to the financial and operational labor waste caused by manufacturing inefficiencies.
To save over $2.5 billion by the end of 2020, Nestlé has been streamlining its manufacturing operations to cut down on inefficiencies for several years now. Nestlé has been closing one manufacturing plant a month since 2016.
Even though Nestlé has been shutting down one plant monthly, it still has over 400+ plants operating. Nevertheless, these cost-cutting measures against manufacturing inefficiency will result in 4,000 Nestlé employees getting fired.
Manufacturing inefficiencies cause severe financial problems for corporate giants and smaller companies alike. Every year, companies lose up to 30% in revenue due to manufacturing inefficiencies.
While Nestlé can afford to enact such measures, other companies tend to ignore their inefficiencies without updating their manufacturing systems or applications, usually in a counter-productive effort to save money.
Prodsmart offers manufacturing execution systems (MES) solutions customized for your business needs. Contact them today.
What is MES? Here is a primer about manufacturing execution systems and what they can do for your company.
Related – Cost of Production: The Ultimate Guide
Manufacturing execution systems are complex data monitoring, collating, and analytical software programs that control and monitor the operational and labor output occurring on a factory floor.
Companies and factories use MES software to calculate manufacturing operational effectiveness and output. You can use MES to identify and track specific inefficiency issues to the source, problems that may not be obvious in large supply-chain infrastructures.
Companies can use MES technology to identify, monitor, and develop practical solutions for manufacturing inefficiencies.
MES technology can identify various factory floor issues like:
Furthermore, MES technology is adaptable for use in any high output business industry. You can implement MES in commercial aerospace, pharmaceuticals, recycling, medical device startups, automotive, semiconductors, and more.
Manufacturing execution systems conceptualization began in the 1970s. The MES concept software programs of that era were originally used to automate business accounts and enhance inventory management techniques.
During the 1980s, MES technology evolved to empower derivative software programs like Material Requirements Planning systems (MRP). MRP software could monitor and control aspects of inventory, raw materials estimations, and delivery schedules.
The term, manufacturing execution systems, wasn’t coined until 1992, even though its concept was 20 years old.
Several software versions and standards of MES were created over the decades. The MES software standard that most businesses utilize is MESA-11.
The Manufacturing Enterprise Solutions Association (MESA) is a non-profit organization that globally optimizes manufacturing efficiency standards. MESA wrote the MESA-11 software standard of MES in 1997.
It is a manufacturing efficiency software standard that is still used and referenced to this day.
The MESA-11 software standard features 11 core functions for optimal MES technology utilization efficiency.
Different software MES versions may feature other names for these 11 standards, but the original core function themes remain the same.
Here is a brief breakdown of the original 1997-era MESA-11 core functions.
This MERS function of MESA-11 helps companies manage multi-directional flows of manufacturing and production information in real-time between the factory and ERP functions.
Enterprise Resource Planning (ERP) is a business management software program that automates data analysis of human resources, sales quotas, accounting operations, and finances to develop a big picture view of efficiency.
Supply chain systems, production routing schematics, inventory management, and planned production order schedules could cause management staff and employees to have non-unified and myopic expectations of globally viable operational functions and output.
The operations management function of MESA-11 keeps staff and employees on the same page to cut down on miscommunications and errors.
This function assists companies in grouping inventory batches or final parts in synch with corresponding production data analytics.
You can track the chain of custody or supply chain logistics of raw production materials to assembly and distribution.
Product Tracking and Genealogy data can assist companies striving for an industry or government regulatory compliance.
This core function helps ensure that you always match the right employees and staff in the proper work environments throughout every manufacturing process step.
Additionally, you can easily manage employees, operations, and track any authorizations or skills they may require.
Use this program to plan machine and equipment maintenance more accurately to cut down on factory floor interruptions and stoppage.
With the Quality Management standard, you can use external software programs or directly integrate it into MES software.
This program can track manufacturing units, processes, and deviations from quality and efficiency.
Businesses and factories can amass and store incalculable amounts of production data over the years and decades.
With this software program, you can recall specific data as needed or relative to production efficiency issues.
This function tracks manufacturing operation sequencing, process routing, and complete production line traceability.
It provides a digitally convenient and time-saving way for staff and employees to access documents, data, and schematics when needed.
Use this core function to assess processes and analyze how they can become more efficient.
Various production performance data metrics are consolidated to calculate prime performance indicators.
Use this function to track and categorize production resources. You can also exactly track how manufacturing resources are utilized throughout the production line process.
Related – How to Deliver a Successful MES Project
With the rising importance of A.I. and automation in 21st-century industry, and the resultant reshuffling of human work roles, production inefficiency will remain a lingering concern.
There is only so long you can ignore or misdiagnose production inefficiency problems before they catch up with you. Consult Prodsmart today to learn more about manufacturing execution systems.
Related – Mastering the Production Schedule
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.