8 Reasons to Digitize Your Factory!
Based on countless projects in the manufacturing field, carried out over the years by our Indian partner Protocol, it is estimated that normally, a manufacturing company that has implemented a MES software as a WORK, which falls within international standards, can save on average, from 2% to 5% every year and benefit from a very fast ROI that usually ranges around the year, 1 year and a half.
In addition, if you consider Software as a Service (SaaS), the cost to implement your Smart Factory may fall under operating expenses (OPEX) instead of capital expenditures (CAPEX).
The latter (OPEX) are classified as necessary daily expenses of a company, for this reason, they are part of the management process of the activities that generate revenue in the company.
In other words, OPEX combines all the costs incurred in the day-to-day management of the organization.
But then why is it important to point out this difference between CAPEX and OPEX when considering buying MES software for your future digital factory?
Difference between Capital Account Expenses and Operating Expenses
Capital expenditures (CAPEX) are the main long-term expenses, they are considered physical assets such as buildings, equipment, machinery and vehicles, while operational expenses (OPEX) are considered the daily expenses necessary to run a business. Therefore, unlike CAPEX, OPEX operating expenses are fully tax deductible in the year they are incurred.
And, in addition to being tax deductible, a MES software can offer considerable advantages.
On the basis of numerous projects in the manufacturing field that our Indian partner Protocol has completed over the years, it has been possible to find 8 essential benefits that the MES OPERA software has been able to offer on average to any factory in which it has been implemented:
- -40% reduction in cycle times,
- -90% reduction in data entry,
- -30% reduction in WIP,
- -75% production paperwork,
- -25% reduction in delivery times,
- -28% reduction in non-conformities,
- +30% efficiency improvement,
- +40% quality improvement.
The list of concrete advantages of Industry 4.0 solutions is constantly growing and every year a MES software as a WORK is able to bring more and more added value to the factory within which it is implemented.
For this reason it is of crucial importance, (now more than ever!) to stay informed both culturally and legally, through expert consultants, on how to obtain these tangible advantages for your smart factory, in order to remain competitive in the market, in view of the near future!
To view all the Case Studies of our partner Protocol and you are interested in how to obtain more information click here.