Manufacturing Operations Management (MOM) software remains on the top of the list of prioritized manufacturing investments in surveys by both Gartner [4] and LNS Research [2]. Not only is it on the top of the list, LNS found that 68% of manufacturers were viewing the MOM as part of their enterprise systems strategy.
Why are MOM investments critical to manufacturers?
“MES (aka. MOM) applications boost manufacturing reliability by digitally enforcing processes, methods and procedures. Because MES applications also provide genealogy and traceability information required for compliance, they serve as a strategic nucleus for broader manufacturing architectures. MES data is also an important resource for determining discrete product quality. When scoped, implemented, and integrated properly with other processes for product supply, MES applications can support growth goals of the business while removing costs and complexity, driving process optimization, improving product quality, and directly impacting the bottom-line.”
Quote from Hype Cycle for Discrete Manufacturing and PLM – 2016, Gartner [4]
Leading companies are sharing their MOM success stories in surveys, at conferences and press articles, and the word is getting out. An LNS report [5] shows that implementers of MOM systems have improved Total Cost Per unit by 22.5%, Net Profit Margins by 19.4%, and On-Time Delivery by 22%. Improvements for MOM users were generally double the average among all respondents.
Specific improvements listed by manufacturers include:
- Common user interface across the enterprise
- Elimination of duplication of input
- Integrated interdepartmental information
- Platform of interdepartmental collaboration and workflow
- Closed-loop quality management
A similar survey performed by Gartner and MESA International [1] showed that most manufacturers implementing MOM/MES had achieved significant improvements within 12 months of implementation. Over a third of the surveyed manufacturers saw results within three months.
Because the MOM serves as a critical link in the information value chain
MOM offers immediate benefits that are easy to quantify for the investment payback. However, manufacturers that stop their ROI analysis here risk missing the larger savings and productivity gains that impact strategic business outcomes. For many companies, MOM has served as a critical technology linking manufacturing operations with customer and supply chain processes.
As Gartner found out in their analysis [3], the largest benefits of MOM come from capitalizing on the visibility it provides into manufacturing performance and capabilities across the organization and supplier network. Participants in a 2015 Gartner study on the value of MOM reported that they were investing in MOM to drive continuous improvement, eradicate variability (that is, improve quality and compliance) and reduce costs. However, they also realized many more tangible and intangible benefits from the MOM implementation the following years.
Although these companies pointed out that the MOM couldn't be solely credited for all the performance improvements, they highlighted its pivotal role in creating an information environment that accomplished the following:
- Supported integrative and sustainable improvement initiatives by providing continuous performance feedback through real-time information visibility
- Provided the stakeholder visibility needed to manage and streamline the end-to-end supply chain
- Created a sense of ownership and performance consciousness among operations and supporting functional personnel
- Standardized processes across multiple production sites, allowing for resource sharing and flexibility
References
[1] 2016 MESA/Gartner Business Value of MES Survey, Meyer/ Jacobson/Franzosa, Gartner, 2017
[5] Metrics that Matter and the ROI of MES/MOM, Schwarz, MESA.org, 2016
[6] Has MES Come of Age? (recorded webcast), Fraser/Franzosa, MESA.org with IYNO and Gartner, 2014
Comments