Manufacturing’s digitalized future is here, with manufacturing execution systems (MES) offering businesses unparalleled insight into their operations. Still, many industry leaders remain unaware of the value these enterprise-optimizing platforms provide, or the return on investment (ROI) they can offer users.
A recent Parsec survey found that, among manufacturers familiar with but not utilizing MES platforms, 75% haven’t invested because they were unsure of how their operations would benefit. However, that same survey found that most current MES users report being “very” or “extremely” satisfied with the results of their investment.
Even with the prevalence of digital transformation ideologies and technologies, there remains a knowledge gap around the impact and value of MES. To help bridge that gap, we partnered with IDC, a premier global market intelligence firm, to develop the “Business Value of TrakSYS™.
The result of in-depth interviews with a selection of Parsec customers across Europe and America, this qualitative and quantitative study aimed to uncover why leaders chose TrakSYS, identify and highlight the operational benefits they see, and quantify the overall ROI users can expect. The average manufacturer included in the study had an employee base of 15,038, an IT headcount of just under 500 supporting 335 business applications, and an annual revenue of $6.92 billion. Notably, the study found:
Table of Contents
- Companies choose TrakSYS because it stands out from the fray.
- TrakSYS supports meaningful improvements to quality and efficiency.
- TrakSYS improves team member performance.
- The impact of TrakSYS spans the enterprise.
- TrakSYS Delivers for Its Users
1. Companies choose TrakSYS because it stands out from the fray.
Manufacturers pursuing digital transformation have a wide range of technological choices, but TrakSYS’ solution stack helps it stand out. Organizational leaders shared that they chose the platform because of its purpose-built technology, adaptability, and breadth of capabilities.
Respondents also said the platform’s interoperability improved cross-operational visibility between existing business systems and data repositories, allowing them to gain the comprehensive, contextualized insight needed to optimize operations despite their diverse operating environments. They also noted that the software’s user-friendly design and advanced capabilities eased the implementation process and outperformed similar systems used in the past.
“We had a short list with some other market tools, but it was never about finding the best tool,” said one of the clients included in the study. “[It was about finding] the optimal tool that would provide the capabilities we need in the most cost-effective way.”
2. TrakSYS supports meaningful improvements to quality and efficiency.
TrakSYS’ detailed visibility into operations enables teams to improve overall equipment effectiveness (OEE) and schedule equipment maintenance and downtime more efficiently. TrakSYS’ algorithmic production scheduling (APS) uses real-time equipment data alongside things like material availability, maintenance needs, quality issues, and personnel changes to create and suggest real-time scheduling efficiencies that help ensure production stays on track.
“For us, the most important benefit is real-time, [item]-level visibility,” one respondent shared. “Another important aspect is how the platform enables us to see current scrap and reject levels. We can see all of this with a report that we run in TrakSYS, and the report allows management, plant managers, and plant teams to see real-time analysis of production flows and all the things that are important for us.”
These insights also help organizations react to identified performance and quality issues more quickly. IDC’s research showed that, after implementing TrakSYS, manufacturers were able to remediate errors 30% faster. In addition, the platform helped reduce clients’ manufacturing errors by a similar margin (28%).
3. TrakSYS improves team member performance.
Study participants saw a 12% boost in productivity among their production teams—the equivalent of adding an average of 76 full-time employees (FTEs). IDC calculated that this boost in productivity resulted in an average annual salary savings of $5.32 million for each organization.
IDC also noted improvements in TrakSYS users’ quality control (QC; 6%) and maintenance teams’ (4%) performance. These improvements resulted in average annual salary savings of $165,600 for QC teams and $213,000 for maintenance teams.
4. The impact of TrakSYS spans the enterprise.
TrakSYS’ benefits do not happen in a bubble. Respondents noted that the quality improvements they experienced boosted customer satisfaction, improved delivery times, and made their operations more sustainable.
Being able to achieve production improvements without hiring additional FTEs saw respondents report notable financial gains as well. IDC calculated that the average organization added $3,250,000 in total annual revenue due to efficiencies gained via TrakSYS.
Furthermore, the Business Value Study notes that organizations achieve an average discounted three-year benefit of $16.5 million ($817,100 per facility) due to improvements in overall manufacturing performance, team productivity, and business results. The study found that the average TrakSYS-supported manufacturer realizes a three-year ROI of 454% and is likely to break even on their investment in just nine months.
TrakSYS Delivers for Its Users
IDC found that TrakSYS users credited the platform with providing the visibility, integration, and flexibility they required to stay ahead of market volatility and evolving business demands. Overwhelmingly, respondents reported that TrakSYS helped them streamline shop floor operations, lower operational costs, improve OEE, and increase revenue.
The study’s findings also note that businesses find TrakSYS’ upcoming AI/ML capabilities appealing. These next-generation applications will allow manufacturers to derive even more value from their data and transform decision-making processes.
To gain more insight into how IDC came to these conclusions and learn how TrakSYS can transform your business, read the “Business Value of TrakSYS White Paper” now.