CIO at Sanmina

Factory digitization promises significant operational improvements. In some cases, manufacturers can achieve a 10% - 20% reduction in inventory, 8% - 18% productivity improvement and a 5% - 15% first-pass yield increase. However, implementing a manufacturing execution system (MES) can be daunting due to the sheer enormity of the task. Limiting the scope of a pilot project and trying out an MES system has been proven to be an effective approach for many manufacturers. In this article, learn how to kick-start your factory's digitalization with a proof of concept.

Why is digitizing your factory so daunting?

 Most manufacturing operations are highly complex. Consider a factory operating 24 hours a day, seven days a week, employing hundreds of employees; the operation may be producing thousands of different SKUs, which all require different manufacturing process routings. Controlling this complexity often relies on multiple legacy systems or on manual or even paper-based processes. Mapping the processes of the existing operation to take advantage of the functionality in an MES solution is a huge task.

Factories frequently depend on a multitude of disparate IT systems that don’t talk to each other or share information, such as ERP PLM, printers, scanner hardware, and even spreadsheets. Over time, people get used to implementing workarounds to manually integrate data from all of these different systems. The complexity and quantity of the workarounds are often undocumented, and knowledge of them is developed by individuals working in the factory over a significant period of time. This learned experience can give rise to concerns about the risk of disruption to reporting and operational performance if the existing systems are affected by the implementation of a new MES

The number of stakeholders involved in selecting and implementing a new MES solution also increases complexity. Each person will want to be aware of the advantages and disadvantages of different MES solutions. They will also want to be convinced that the selected MES is the best option for your manufacturing operation.

"One way that manufacturers have overcome the inertia of implementing an MES solution is to conduct a proof of concept."

Implementing an MES potentially requires a large investment, including new hardware that might not be needed if things don’t go ahead. The cost of allocating IT resources also needs to be considered. In fact, the availability of internal IT resources to manage the project can be an obstacle to getting started.

The proof of concept approach - start small and scale.

One way that manufacturers have overcome the inertia of implementing an MES solution is to conduct a proof of concept. This involves implementing an MES in a limited but representative area of your operations. Start small, isolating an area of your factory with just one product and with only the core functionality you wish to implement at first. This will allow you to prove the concept and measure the benefits in your live production environment and then scale up in volume or functionality. This modular approach significantly reduces risk and cost for manufacturers while speeding up decision-making and time to value.

Proof of concept functionality typically includes:

● Shop floor functions such as serialized inventory, cycle time management, order management, process routing control, employee verification and work instructions.

● Traceability features.

● Quality functions such as control plans, critical to quality issues, and defect & repair

management.

● Packaging, labeling, notifications and escalations.

● Business intelligence functions that provide a platform for easy-to-understand data visualizations of real-time data.

How to get started

Ask your MES supplier if they offer a proof of concept. By selecting a cloud-based MES and a supplier who can lead the project with seasoned manufacturing experts, you will save on the cost of investing in on-premise hardware and software and avoid having to allocate IT resources to the project. It is a good idea to ask the MES partner to show you examples of similar implementations they have completed.

When you decide to implement a proof of concept, identify a small dedicated team to work with your MES partner, and ask the MES partner if they have an implementation framework you can follow. Limit the scope to one production line and to a small but representative number of products.

Within just a few weeks, most manufacturers have been able to prove the concept and realize the benefits in their environment at a reasonable cost and without any long-term commitment. Based on their experience, they are in a much stronger position to determine if they have selected the right MES solution and to scale up appropriately across their manufacturing operation in volume and functionality.