This is how you unlock real potential in manufacturing
Today, digitalization is no longer a means to an end, but a decisive factor in improving efficiency and competitiveness in manufacturing. A clear business case helps to align the digital transformation specifically with a company’s actual challenges and achieve measurable added value – but how?
Digitalization is no longer just a trend – it has become a necessity for surviving in an increasingly competitive environment. However, companies are still asking themselves: How can digitalization projects be set up in a way that not only makes them appear innovative, but also creates measurable added value? At MPDV, we are convinced that the key lies in a clear business case that aligns digitalization with manufacturing challenges – not only in Germany, but everywhere in the world.
It is not about image, it is all about genuine added value
In recent years, digitalization projects were often launched for image reasons – “Industry 4.0” was the keyword of the moment. Nowadays, companies are facing different challenges: energy prices are going up, supply chains are unreliable, and the shortage of skilled workers is making things harder. At times like these, every investment is carefully considered. It is no longer about taking part, but about using digitalization to increase value creation and efficiency in a targeted manner.
From transparency to increased output
Manufacturing companies are primarily striving for greater transparency. If you know what is happening in your own business, you can make better decisions and faster. But transparency is only the beginning. The real potential of digitalization lies in tangible improvements:
- Increase efficiency: For example, if you increase the technical efficiency of systems from 88 to 93 percent, more parts can be manufactured using the same resources.
- Reduce scrap: The fewer defects, the less rework and the lower the costs.
- Cut down inventories and setup times: This frees up capital and increases flexibility.
- Better planning, higher productivity: Less downtime means higher output.
Our experience shows that these goals are not only theoretically possible – they can be achieved there and then. For example, one customer was able to increase output by 25 percent without investing in new machines thanks to AI-supported detailed planning. Another company reduced throughput times by 23 percent. Such successes emerge when digitalization is applied systematically to key areas that need improvement.
Digitalization calls for individuality
The starting point in manufacturing is never the same: machinery, employees, products, processes – all of these vary from company to company. With the result that there is no standard solution for digitalization. The key is an individual as-is analysis that reveals the actual challenges and opportunities. Modern manufacturing IT such as a Manufacturing Execution System (MES) provides the necessary data and key figures at the touch of a button. For example, OEE (Overall Equipment Effectiveness) measures the availability, performance, and quality of equipment.
Digital transformation with the help of use cases
Large-scale digitalization projects often seem daunting. Our recommendation: Break down your project into small, clearly defined use cases. This allows you to evaluate the costs, benefits, and ROI much more effectively. Examples for such use cases are:
- Optimization of production planning for greater output
- Reducing paper in the shop floor for greater transparency
- Introducing digital operator guidance for shorter training times
Each individual use case becomes a building block on the way to the Smart Factory. The result is that digitalization projects remain manageable, flexible, and always closely aligned with your company’s actual requirements.
Central data basis
One of the biggest hurdles that the industry faces on the road to successful digitalization is the integration of existing systems. Different data sources, stand-alone solutions, and interface problems slow down companies. The solution: A central platform that consolidates all production-related data – MPDV’s Manufacturing Integration Platform (MIP).
With the MIP, manufacturing companies can lay a solid foundation for their digitalization and avoid costly interface projects. You gain the flexibility you need to respond to new requirements at any time.
What does digitalization cost – and what does it cost to do nothing?
“The question about costs is entirely justified,” says Steffen Münch, Executive Manager Sales at MPDV. “However, the question of what it will cost if you do not digitalize is at least as important. Any potential that remains untapped is money that your company is losing. Take paper, for example: 500 sheets per week generate around 45,000 EUR in process costs per year – money that can easily be saved with digital solutions.”
Conclusion: Digitalization with a business case
Digitalization is not self-serving but rather a tool for making manufacturing more efficient, flexible, and competitive. With a clear business case, customized analysis, and a central data platform such as the MIP, manufacturing companies can lay the foundation for sustainable success. “So, take it step by step: focus on small, measurable use cases and unlock the real potential of your manufacturing,” says Steffen Münch, summarizing his recommendation.
Interested?
This article is based on our online seminar “Digitalization with a Clear Business Case.” Would you like to explore this topic further? Watch our webinar recording and find out how you can successfully and cost-effectively digitalize your business: Go to webinar (Find out here how you can avoid high paper-related costs.)
Note: Although the webinar was recorded in German, it can be viewed with English captions.