10 Reasons Why Implementing SCADA and MES Systems is the Key to Your Business Success (Part 1)

Challenges Faced by Companies Without SCADA and MES

❌ Lack of Transparency in Production Processes

The biggest challenge in such companies is the lack of transparency in production. Without a comprehensive system for monitoring and managing manufacturing, efficiency is often estimated based on manual records, Excel spreadsheets, or inaccurate reports.

However, these data do not reflect the real situation. When companies try to optimize costs or increase production, they lack clear data to pinpoint bottlenecks and identify where the biggest time or financial losses occur.

❌ Inefficient Reporting and Production Tracking

One of the main consequences of a lack of transparency is inefficient reporting. Many companies struggle with slow and inaccurate reporting. Obtaining the necessary data can take days or even weeks. By the time management receives reports, they are often outdated and do not reflect the current state of production. In many cases, reports are distorted or embellished because data is collected manually, making accuracy dependent on subjective reporting from employees.

This issue is particularly evident in tracking work-in-progress. At the end of the month, an ERP system like SAP might record a lower number of produced units than planned. However, the company may struggle to quickly determine whether the products have been manufactured or are still in production. This leads to delays, inefficient planning, and difficulties in meeting deadlines.

A similar issue arises in production planning. If a production plan changes, many companies still rely on printed documents. These must be physically distributed to workers on the shop floor, and changes must be explained in person. This results in unnecessary delays and the risk that some employees may miss critical updates.

❌ Material Tracking and Inventory Management Issues

Another significant challenge is material tracking and inventory management. In many cases, production teams realize they are out of materials only when workers on the production line run out. When an operator reports a material shortage, it often takes hours to resolve the issue. The material must be manually picked from storage, checked, transported to the right location, and prepared for further processing. During this time, production slows down or completely stops, causing downtime and disrupting delivery schedules.

The absence of a digital system also affects the accuracy of material usage. There is no mechanism to ensure that workers use the correct material in the required quantity. Without automated verification, operators may use incorrect components or incorrect dosing, leading to defective products or even damage to machinery.

❌ Delayed Fault Detection and Reactive Maintenance

In large and complex manufacturing facilities, it is impossible to have everything physically monitored at all times. Production often relies on workers noticing a malfunction and contacting maintenance, leading to time losses and unplanned downtime.

Without proactive monitoring, companies cannot detect warning signs before a failure occurs. For example, an increase in oil temperature in a machine may indicate an impending issue. However, if there is no monitoring system in place, maintenance only reacts when an actual failure happens. This approach, known as reactive maintenance, means problems are only addressed after they have already caused disruptions.

Additionally, when a failure occurs, the root cause is often unclear. There are no historical records indicating which parameters were out of range, what actions preceded the failure, and what interventions operators attempted. As a result, companies simply “extinguish the fire” and hope the issue does not recur, rather than preventing it proactively.

❌ Limited Remote Control of Production

Without a SCADA system, controlling production equipment is only possible locally. Operators must be physically present at the machines to make adjustments. If an error occurs or a process is configured incorrectly, there is no way to address the issue remotely, leading to extended response times and costly consequences.

For instance, if a worker misconfigures the routing of a manufactured product, employees must manually transfer materials to the correct location. This causes delays and disrupts production planning. Moreover, many local control panels do not require operator authentication, meaning that if an error occurs, there is no way to trace who was responsible. This lack of accountability prevents targeted prevention measures such as training.

❌ Limitations in Workforce Management

Many companies aim to optimize labor costs, but without accurate data, this becomes extremely challenging. Without an MES system, it is impossible to track individual worker efficiency, evaluate performance, and analyze how much time is spent on specific operations. In most companies, productivity is measured only at the team or department level, making it difficult to identify areas for optimization.

HR records may indicate which employees are trained to operate specific machines, but production equipment itself does not use this information. This means that an unqualified worker may access and operate machinery, increasing the risk of production errors, lowering product quality, and, in the worst cases, leading to workplace accidents.

❌ Lack of Traceability in Production Information

Another critical issue is the lack of traceability in production records. If a product defect is discovered, companies often struggle to determine which other products may have the same issue. There are no detailed records of when the product was manufactured, which machine was used, what settings were applied, or what materials were used.

For example, if a production deviation occurs on a specific machine, the company cannot simply recall the affected batch of 1,500 units. Instead, they must recall all 10,000 products made during the same period as a precaution. This results in significant financial losses and unnecessary waste.

❌ Limitations in Energy Management

Companies may have ambitious plans to implement an Energy Management System (EMS) to monitor energy consumption and reduce operating costs. However, even if energy meters are installed on all machines, their effectiveness is limited without centralized data collection and visualization.

If a company cannot track and analyze this data in real time, the only option is manual regulation—employees would have to physically check and turn off machines that are not in use, which is inefficient and impractical. Energy savings are not just about data collection but also about real-time response and automated interventions, which are impossible without SCADA and MES.

❌ Inability to Implement Advanced Technologies

Without comprehensive data collection and production monitoring, adopting advanced technologies such as artificial intelligence and predictive maintenance is unrealistic.

SCADA and MES systems provide the foundation necessary for expanding production monitoring. For example, predictive maintenance relies on machine learning algorithms to analyze machine vibrations and detect anomalies early. However, this approach is ineffective if the company lacks a basic system to monitor key parameters such as temperature, pressure, and speed.