Posted on 29 June 2020

ROI on an MES system – What would a 1%, 5% or 30% improvement in OEE mean to your manufacturing plant?

There are many benefits to installing an MES:

  • Significant improvements in OEE
  • Improved productivity
  • Reduction in down time
  • Reduction in labour, energy and scrap costs
  • Improvement in quality and reliability

But perhaps the most surprising is how even a slight improvement in OEE can mean £100,000s worth of savings a year.

For example, using a fictitious but typical plant with 31 machines. An improvement in machine utilisation of under 2%, a slight reduction in scrap rate and a 1% improvement in cycle rates can mean an annual cost saving of £250,000. This is very easily accomplished with the right information at the right time and the means to easily make any adjustments necessary.

We have a simple ROI calculator that gives you an instant and accurate idea of the significant cost savings even a small improvement in OEE can have. This free calculator shows the potential increase in profit and cost reduction achieved with an Intouch system. The calculator allows you to input limitless variables so can be used to calculate different ‘What if’ scenarios helping you with your business and production decisions. The calculator is available upon request.

 

Read here how our customer Hanson Building Products improved their OEE by 20-30%.