Introduction ROI Calculator Template: Quantifying Your MES Investment Manufacturing Execution Systems (MES) are at the heart of digital transformation in modern factories. They bridge enterprise planning and shop floor operations by providing real-time visibility, automation, and analytics. However, justifying an MES implementation requires more than technological enthusiasm — it requires clear financial validation. The ROI Calculator Template is designed to help manufacturing leaders quantify both tangible and intangible returns from their MES investment by comparing total costs against measurable operational gains. Builds a Strong Business Case: Demonstrates measurable returns to stakeholders and management. Aligns Strategic Goals with Metrics: Ensures MES benefits tie directly to productivity, quality, and profitability KPIs. Guides Investment Prioritisation: Identifies areas where automation yields the highest impact. Enables Continuous Evaluation: Allows companies to track and optimise ROI post-deployment. www.cerexio.com +65 6762 9293 info@cerexio.com Why an MES ROI Calculator Is Important ROI Formula ROI (%) = [(Total Benefits – Total Costs) / Total Costs] × 100 Intangible Benefits of Calculating ROI using MES Builds a Strong Business Case: Demonstrates measurable returns to stakeholders and management. Aligns Strategic Goals with Metrics: Ensures MES benefits tie directly to productivity, quality, and profitability KPIs. Guides Investment Prioritisation: Identifies areas where automation yields the highest impact. Enables Continuous Evaluation: Allows companies to track and optimise ROI post-deployment. Benefit Components ROI Calculator Template: Quantifying Your MES Investment Identify measurable gains driven by MES adoption. These are grouped into operational, financial, and strategic categories: www.cerexio.com +65 6762 9293 info@cerexio.com Operational Benefits Cost Components Increased machine utilisation and reduced downtime. Improved production scheduling and throughput. Reduced manual data entry and paperwork. Real-time traceability and faster decision-making. Financial Benefits Reduced scrap, rework, and waste. Lower overtime and labour costs. Decreased inventory carrying cost. Lower warranty and quality failure costs. Strategic Benefits Enhanced customer satisfaction through on-time delivery. Improved compliance with standards (ISO, GMP, FDA). Data-driven culture promoting continuous improvement. Scalability for future expansion and automation. To calculate ROI accurately, first determine Total MES Investment Costs across five key areas: Software License / Subscription Fees – MES software purchase or annual SaaS subscription. Hardware / Infrastructure Costs – Servers, IoT sensors, PLCs, and network devices. Implementation & Integration Costs – Consultancy, data migration, and system configuration. Training & Change Management – User onboarding and skill enhancement programs. Maintenance & Support – Annual support contracts, upgrades, and security patches. Step-by-Step ROI Calculation Framework ROI Calculator Template: Quantifying Your MES Investment Step 1: Define Baseline Metrics Measure current performance before MES deployment (e.g., downtime hours, yield %, labour utilisation, order lead times). Step 2: Quantify Improvements Estimate improvements expected from MES implementation (e.g., 15% downtime reduction, 20% labour efficiency gain). Step 3: Assign Monetary Values Convert each improvement into dollar terms using relevant KPIs (e.g., cost per hour of downtime, revenue per unit produced). Step 4: Calculate Annual Benefits Sum up all monetary benefits achieved per year from MES adoption. Step 5: Determine Total Cost of Ownership (TCO) Include all acquisition, implementation, and ongoing costs. Step 6: Apply the ROI Formula Use the ROI equation to derive percentage returns over a 3–5 year period. www.cerexio.com +65 6762 9293 info@cerexio.com ROI Dashboard Metrics Use the following KPIs to track and visualise ROI progress post-implementation: OEE Improvement (%), Production Throughput (%), Downtime Reduction (Hours/Month), Labour Cost Reduction (%), Inventory Turnover Ratio, First Pass Yield (FPY), Time-to-Decision