| Getting the Best Value from Paperless Manufacturing |
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How do you define value?
There are many examples where one person purchases something for $1,000 and another person buys an equivalent product for $5,000. Why? In many cases, the first person looked carefully at their needs and bought just what they needed, while the other person purchased much more than they needed and will probably never use the added bells and whistles.
The same story is often repeated in many companies except on a much higher scale. One company buys a system for $100,000 and another company pays $1,000,000 for essentially the same features. Why?
What about your company and improvements to your shop floor? The major improvement many companies are making is to convert the error-prone, paper-driven processes to electronic processes. That is, they are choosing to implement paperless manufacturing systems.
In paperless manufacturing how do you find the best value system?
First, let's explore the value propositions.
Software systems have many features. Experience has shown that companies actually use only a small set of the available features in a software system. If you're skeptical about that, consider how many features Microsoft Word or Excel have versus how many you actually use. It's the same for shop floor systems.
You can pay millions of dollars for a solution to a problem and use ten or twenty percent of the value you purchased. In many cases the Return On Investment (ROI) analysis will kill the project and you end up continuing with your paper-driven status quo. On the other hand, you can look carefully at the requirements that produce the ROI results and try to match those to an available Off-The-Shelf software system. You now might pay $100,000 to equip your soon-to-be paperless shop floor. The ROI will be so compelling that the project will soar through the approval process and you will be a hero. It has happened and will happen again in many other companies.
The key question remains: How do you get the best value in paperless manufacturing? First, you should identify the basic features needed to really achieve the ROI payback possible with paperless operation. Avoid the "pile on" features that committees always identify but that do not really return value except perhaps to a vocal individual. Avoiding special one-of-a-kind features that require special software will also keep costs down.
Next, assess whether your requirements include essential services such as:
· Vendor response to requests for help or enhancements · Vendor speed of installation and training · A system that has a verified "ease of use" · A system that you can configure and add to without calling the vendor (to save cost in the future)
A software vendor who can provide the essential services and features you need to successfully achieve your ROI is the best value in paperless manufacturing. Extra trappings that increase price without adding value subtract from your ability to get the project approved and reduce your chance of ever achieving a positive ROI.
In some cases, a software vendor will provide a fancy tool set disguised as a solution. In that case, the tools are stitched together to meet your requirements with custom code. Custom code can run costs higher, making it harder to justify a return on your investment.
You get the best value by buying "just what you need" and having a justifiable ROI.
CIMx Software experience is an ROI analysis and achievement of less than one year in many cases and a few out to eighteen months. |
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