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We can all agree that managing production capacity is definitely one of the most important things to consider for any modern business. We could even take this further by asserting that monitoring the increase in production capacity is definitely a priority objective, considering the impact it has on profitability. In this article, we will show how can M.E.S can help you achieve maximum production capacity.
Considered an important measure of performance, production capacity helps companies get a real idea of the efficiency of their structures and processes. This KPI refers to the maximum return that can be generated using available resources over a given period. Careful monitoring of production capacity allows companies to know whether they are facing an economic slowdown (rate decrease), or an expansion (rate increase).
The analysis of this KPI provides a clear understanding of the full use of resources, and provides information to allow production adjustment without impacting the associated costs. When production capacity is clear and easy to read, it becomes easier to identify the adjustments that should be made to meet and adapt to market demands.
Keep in mind that production capacity must always match demand. If capacity is superior to demand, this will result in underutilization of production capacity, while capacity below demand will mean that you won’t be able to supply your customers. Since you don’t want either of the two cases, it’s imperative that the necessary efforts be made to maintain optimum production capacity.
Companies have various means to increase production capacity. However, of all the existing solutions, the most workable is to optimize the production process by using all available resources. Firstly, all the currently untapped potential must be taken into account. Once this exercise is done, you will gain flexibility, and your production line will be maximized.
To undergo this process, we’ve identified three factors that we think are important to help you achieve maximum production potential.
The technologies available today definitely create opportunities for businesses. When it comes to production capacity, the key is having a 3600 solution in order to maintain control of all the elements that influence production. The M.E.S. is a tool that allows you to optimize the efficiency of implemented systems in real time to allow you to adapt to demand.
Now, let’s take a closer look at what an M.E.S. does for production capacity. Here, we’ll compare the efficiency of a production line with and without an M.E.S., while considering the three factors mentioned above.
Check your visibility on the 5 main KPIs of the manufacturing sector
The implementation of an M.E.S. makes it possible to measure and improve the efficiency and overall performance of a production line by optimizing its planning. It also allows the activation and use of real-time company data to improve the production process.
To gain a better understanding, we will analyze three elements that impact production capacity, namely process automation, reporting, and inventory and flows of raw materials.
rocess automation consists of transferring certain repetitive tasks (with low added value) carried out manually to a computerized system. The more a system is automated, the higher the production capacity.
Without an M.E.S.: Automation is Incomplete
Automation is possible without an M.E.S. However, in that case, machine automation will not be exploited to its full potential. This is due to the fact that machines are not able to communicate with the rest of the production line, which considerably limits the impact on production capacity.
With an M.E.S.: Integration with the System in Place is Made Possible
Automation is enhanced when an MES is implemented because it connects machines and other tools in the production chain, like, for example, the ERP. Information in the system thus generates greater production capacity through better equipment monitoring.
Before thinking about increasing production capacity, it’s important to understand it first, and this is exactly what reporting does. Indeed, it allows data to be materialized and transformed into useable information.
Without an M.E.S. : Less Information is Available
The absence of an M.E.S. can lead to an erroneous reading of production and leave certain production potentials unexploited. The measurement of production capacity is less precise.
With an M.E.S.: Provides a Complete View of Production
Thanks to an accurate and complete reading of production capacity, a company can benefit from a better view of possible optimizations. Ultimately, it will be able to increase its production capacity after identifying the flaws in the production chain, whether they are related to machines or human resources.
It’s unfortunate for a business when the quantity of raw materials can’t keep pace with demand. This is why proper management of inventory and material flow ensures consistent production even when demands fluctuate.
Without an M.E.S.: Flexibility Will Be Limited
A production line that operates without an M.E.S. is not able to quickly adapt to fluctuating demands which can affect business performance.
With an M.E.S.: Benefit from Increased Flexibility
A production line that uses an M.E.S. will be able to adapt more easily in real time and better respond to requests. Inventory management will be greatly optimized, and the flow of raw materials will be optimal.
It is possible to conduct operations without an M.E.S, but it’s hard to deny that modern companies have everything to gain by investing in such a tool if they are to remain competitive. Adding an M.E.S to a production line is definitely a must in Industry 4.0 because it allows for a certain level of intelligence that improves production capacity and therefore influences company profitability.
Test your visibility on the top 5 KPIs in the manufacturing sector
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