SmartOps24x7 Return on Investment

Implementing a SmartOps24x7 real-time automated operations tracking and process-flow management system is a time consuming, somewhat disruptive, and expensive process. It typically costs between $20,000 and $50,000 up-front, with an on-going software license cost of about $2,000 per month per plant or warehouse.

Is this worth it?

Financial benefits come from a number of areas:

SmartOps24x7 provides real-time visibility as to the status of customer orders, jobs and materials to ensure orders get out on time. This prevents lost repeat business due to late deliveries.
SmartOps24x7 prevents expensive mistakes, such as using the wrong materials, by providing real-time point of action feedback when a production worker is about to make an operational mistake.
SmartOps24x7 uses barcode and RFID data collection and integration to reduce the labor time needed to collect and process transactional data by the equivalent of between one and four people at a loaded labor costs of $6,000 per month per FTE (full-time equivalent) person.
SmartOps24x7 can automate job scheduling thus saving much of the time wasted in daily production planning meetings.
SmartOps24x7 eliminates the need to do duplicate data entry in multiple systems by automating this process. Typical cost savings, at least one FTE at $6,000 per month. This increases several-fold if materials traceability or other data has to be exchanged with supply-chain trading partners.
SmartOps24x7 accurately captures the actual costs of each job which can be used in preparing quotes for subsequent jobs.
SmartOps24x7 makes the work of operations managers and their staff quicker and more efficient and enjoyable by automating "intelligent grunt work" tasks such as preparing reports, handling materials shortages, and detecting production issues before they become major problems.

These financial benefits do not apply if you have a small team of skilled production workers and can quickly walk round the shop floor to determine the current status of all customer orders and the required materials.

If, however, you have grown to the point where you have multiple department managers, each with their own work-center supervisors and/or lead people, then a system like SmartOps24x7 becomes essential to the smooth running of each plant and warehouse. This especially applies when you have operations at multiple geographic locations.

In such cases, SmartOps24x7 can quickly pay for itself in direct and indirect cost savings.

This is not to imply that the cost benefits accrue from laying off production employees or operations management staff. In the USA we are currently short of over half a million people with the appropriate skills to work in manufacturing plants.

This shortage is expected to grow to over one million people by the end of the decade. What manufacturers need to do is to use AI-based software, such as SmartOps24x7, to increase the productivity of existing skilled workers who already are familiar with the enterprises processes and customer needs rather than trying to recruit new people who frequently do not have the needed skills or the aptitude to work in manufacturing.

Please click here to learn more about the SmartOps247 Software Product Line.

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Company Info		History
White Papers	Software	Videos