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Value of MES in real dollars $15,000 per machine, every year.

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Imagine increasing profit $15,000 per machine, sustained every year.  We can do it.

Modern Machine Shop’s “Top Shops” benchmarking survey, 2012 shows immense value for the use of an MES system.  Critical findings of the survey:

“The average gross sales for the Top Shops were 14 percent higher than the other shops.”

“The Top Shops achieve higher spindle utilization and faster setup times because they put a good deal of thought into optimizing shop floor processes and practices.”

“These shops are also more likely to implement continuous improvement strategies to become more effective as well as lean manufacturing concepts to become more efficient.”

Top Shops had a 12.6% better OEE metric than average shops.  A 10% improvement in OEE (capacity utilization) will increase IFO 22% (from the book: “Overall Equipment Effectiveness: A Powerful Production/Maintenance Tool for Increased Profits”, Robert C. Hansen, Pgs 47-56).

Memex’s MERLIN MES is a tool that allows your organization to achieve these results!

The value of MERLIN, using actual KPI measurements to your operation, is significant:

  • A +10%-20% increase in OEE is achieved by our customers following installation, typically within 12 weeks.
  • Using an average of $302,066 in annual revenue per machine and average profitability of 18.9% (Modern Machine Shop, Top Shops – Benchmark Your Machining Business, 2012, page 24*) a conservative 10% increase across 90 machines translates to +$2.7 Million per year increase in revenue and +$500,000 in profit.
  • This means, by machine, a +$30,206 increase in revenue and a $12,000 to $15,000 increase in profit.
  • At a conservative 10% increase in efficiency the breakeven is typically 3-5 months.
  • ROI of 100% in the first 12 months based on profit, or approaching 1,000% when factoring in increased revenue!

*Sponsored by AMT, the survey covered more than 500 manufacturing facilities.

MES is one of the best strategic drivers to obtain a competitive advantage in the manufacturing landscape improving profitability, reducing waste, and ensuring compliance with regulations.  The top 5 summary reasons are here.  For more detail, including ROI analysis tools and Lean Roadmap tools call Memex directly.

1) An MES system should be the highest priority project as it is more important than a capital equipment acquisition.  The value of an MES is significant to the stakeholders of a company far surpassing any other ROI.

2) Plant wide efficiency improvements greater than 10% are normal and drive a company to significant success.

3) Profitability is exponentially improved and sustained every year.

4) ROI typically of 100% in the first 12 months based on profit, a payback typically in the 3-5 months range.

5) Every day a company waits to implement an MES is lost profits that cannot be re-covered.

Microsoft Dynamics AX Industry Summit

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Microsoft Dynamics AX Industry Summit

Feb 11 – 14, 2013.

Memex Automation is a guest speaker on OEE at the Microsoft Dynamics AX Industry Summit in Phoenix, Arizona!

Memex is expanding Worldwide Operations into Europe

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Burlington, ON – February 8, 2013 – Memex Automation creator of the Manufacturing Execution System (MES), MERLIN, is expanding operations into Europe.  Memex announces it has signed a licensing and distribution agreement to structure the European operations with Sales Force Europe (SFE).

With a current customer base and dealer channel already in Europe, growing demand from new customers and a focus on global enterprise operations, this expansion is a natural business growth path for Memex.  “Customers want to be assured that local implementation sales support and service are available to them.  Global companies typically want a single common solution, supported on a worldwide basis.” said John Rattray, VP Sales & Marketing with Memex Automation.

As part of the operations, Memex has an expanding customer base in the Middle East and Africa and SFE will help guide a business strategy for these important markets.  SFE has operations in most European countries and is run as a central group with local operations.

MERLIN is a manufacturing productivity tool that provides a real-time automated approach to data collection and OEE metrics for visibility into what is happening at each machine or shop floor manual process.  The advanced functionality in MERLIN allows work order information to flow seamlessly from any ERP business system through the Manufacturing Execution System (MES) to the machine on the shop floor and back, an electronic traveler, delivering on a paperless shop floor.

“The benefits of plant-wide visibility mean pro-active response, less downtime, improved production scheduling and quality, as well as more extensive data analysis and reporting capabilities, often translating into a 10%-50% increase in efficiency.” said David McPhail, CEO of Memex, as he recognizes that Memex can deliver the “Factory of the Future” today.  “By automating the information flow, companies can better manage operations both vertically, “Shop Floor to Top Floor” and horizontally across the plant.”

Memex Automation will next showcase this powerful solution at the Microsoft Convergence conference, Booth # 2550, (http://www.microsoft.com/dynamics/convergence) in New Orleans, LA, March 18-21, 2013, then at CMTS in Toronto, September 30th to October 3rd, 2013.

About Memex Automation Inc. (www.memex.ca)

Based in Burlington, Ontario, Memex Automation, founded in 1992, offers  “Shop Floor to Top Floor” Information – in Real-Time for the discrete manufacturing industry.  As a world leader in manufacturing technology Memex specializes in developing many engineered products using advanced R&D and has over 12,000 customers with 280 dealers worldwide.  Memex’s vision is to improve the way machines work and connect on the factory floor with Manufacturing Connectivity Solutions, to Automate the Automation, supplying component hardware, memory upgrades, and visionary shop floor communication technology.  Their products allow manufacturers to realize the impact of OEE Profitability delivering the “Factory of the Future”, today.

For more information about Memex Automation, contact John Rattray at 905.635.0590, email jrattray@memex.ca or visit http://www.memex.ca.

Memex CEO Co-authors MTConnect Institute Connectivity Guide

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Burlington, Ontario — (SBWIRE) — 10/28/2011 — Developed as a guide for shop owners and plant managers exploring the MTConnect implementation process, the MTConnect Institute announced the release of the “Getting Started with MTConnect – Connectivity Guide.”

David McPhail, President & CEO of Memex Automation Inc. and co-chair of the MTConnect Shop Floor Connectivity Committee said, “It was a pleasure working with such a talented and energetic team of experts who are all focused on addressing manufacturing productivity issues. By applying the techniques defined in the Connectivity Guide, essentially every piece of manufacturing equipment can now be integrated into a manufacturing data system — empowering productivity improvement on the shop floor for all machines.”

This guide is the result of a year-long effort by the MTConnect Shop Floor Connectivity Committee. Thought leaders from sixteen companies representing a diverse cross-section of the discrete parts manufacturing industry collaborated in the development of the guide. The committee addressed the most fundamental question shop owners and plant managers when deciding to implement MTConnect.

The guide addresses connectivity issues associated with both new and legacy manufacturing equipment; it provides a structured framework to guide companies through the assessment of equipment and the early planning stages of a project.

McPhail emphasized, “The guide is a valuable tool for anyone in manufacturing who believes that improving productivity starts with understanding what is happening on the shop floor.”

The foundation for improving manufacturing productivity starts with easy access to data. MTConnect provides manufacturers with a simple and extensible mechanism to connect manufacturing equipment to software applications used to run the businesses.

The “Getting Started with MTConnect – Connectivity Guide” is downloadable at www.mtconnect.org.

Dave Edstrom, President and Chairman of the Board for the MTConnect Institute said, “This Connectivity Guide will be an extremely valuable tool for shop owners and managers who need to address productivity issues in their manufacturing operations. I am asked the same question almost daily — How do I get started? This guide answers that question. The Connectivity Guide is the first piece to be released in our ‘Getting Started with MTConnect’ series. Additional documents will be released soon to further support manufacturing companies that are adopting productivity solutions using MTConnect.”

 

Factory of the Future Webinar – May 30, 2013

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Do you want the best manufacturing plant around? 

Find out how by attending this 30 minute webinar about the “Factory of the Future”, May 30, 2013, at 11:00 am Eastern Time (UTC – 5 hours).


In association with Microsoft, MTConnect Institute, Ellipse Solutions and Memex Automation, you will see with a live demonstration how utilizing a Manufacturing Execution System directly with an ERP business system has immense advantages with plant operations. The Factory of the Future is vertically and horizontally integrated – vertically from Shop Floor to Top Floor, and horizontally throughout the plant-wide operations.  The benefits are many and often lead to 50% – 100% increases in profitability.

You will hear leading industry experts view of the future for manufacturing, with:

Gil Garcia, Director Manufacturing Industries for Microsoft, 

Dave Edstrom, President and Chairman of the Board  MTConnect Institute,

David Rourke, Manufacturing Consultant, Ellipse Solutions LLC, an MES systems integrator

John Rattray, VP with David McPhail, President & CEO, Memex Automation Inc. 

It is all focused towards machine information being readily available which will be more important in the 21st century than the CNC was in the 20th century.

This webinar is designed to be concise and easy to access.  It is web based, no downloaded applets required, and audio is either by phone or computer speaker.

To register for the Factory of the Future webinar, please fill out the form below and you will be sent a webinar connection link.  Alternatively, you may also contact Carolene at 866-573-3895 ext. 204, or email carolene@memex.ca.

[contact-form-7 id=”2777″ title=”Factory of the Future Registration”]