What is profitability? Is it just making more and more money? Is it the blind pursuit of profit where no attention should be paid to the means of achieving it? The views on profitability might differ drastically depending on many socio-economic factors, what is important is that we realize why profitability is perceived differently around the world and what should be the true meaning of profitability in today’s economic environment. Profitability is perceived and pursued differently in different regions of the world and this difference arises due to the country’s economic maturity and the society’s general beliefs and its perception business ethics. Ideally any organization in business wants to achieve profit maximization, which is a valid thought; increasing value for the stakeholders is the number 1 priority of all firms. But it is the means of achieving higher profitability that becomes important in present context.
Sustainable Profitability, Social Responsibility and Ethical Conduct are a few aspects of modern theory of profitability and profit maximization cannot occur at the expense of these aspects. To achieve such profitability the organization needs thorough understanding of its own capabilities and its external environment. Let’s concentrate on the term Sustainable Profitability, and how can it be achieved in manufacturing operations considering the drastic changes in customer preferences, high speed of technological development and growing global competition. Sustainable Profitability comprises the achievement of maximum possible profitability under the given set of conditions and the effort required to sustain it in the given market conditions. Yes, sustaining long term profits is much more important than earning massive profits in the short term. In Manufacturing Industry, achieving higher sustained profitability is a function of productivity, which is both optimized and flexible. When we say optimized productivity we mean that the process produces the best possible output with the given resources, technology and employee skills, at minimal cost. When we say flexible productivity we mean productivity that is capable of reacting and adjusting to environmental changes, which are mostly uncertain. For a process to achieve sustainable profits, it should be both optimal and flexible at the same time.
This desired productivity, is again a function of automation and technical competence of the process and how well it is managed and controlled. To achieve process automation and reach the desired level of efficiency and flexibility, it is extremely important that IT applications like MES are considered. Successful MES applications have the power to combine the two most important facets of better productivity which are Operations Management and Technology. These are the two factors that can make an ordinary operation a very efficient and successful one. An MES application combines both these facets of Operation; it is a combination of Information Technology and Operations Management. Manufacturing Organizations can benefit immensely by the application of MES application, as it provides both automation but also Integration of their entire production process under one comprehensive system. But choosing just any MES application can be very risky and lead to massive losses and develop a negative attitude in the workforce.
To be able to design the perfect MES application, expertise in both Technology and Ops Management are prerequisites. As I mentioned earlier, every manufacturing process has some unique attributes, an MES provider should be able to assess these unique feature and use them in the MES application so as to further benefit the customer’s Organization. I2DS is one such company that can boast of expertise in both Information Technology and Operations Management. The team of experts at I2DS has worked for few of the top organizations world wide and is renowned for its skills in Factory Automation, Information Technology, Data Management and Operation Management. This means that the team does not take any manufacturing process for granted, each process is carefully analyzed to determine the scope and functionality of an MES application.
I2DS brings more to the table than any other MES application provider in the industry. Every MES solution provided is tailor made to suit the present and future technology of the client, with the main aim of making Operation Management more efficient and decision making more concrete. If you also value Technology and Operations Management and believe that your MES application should facilitate these factors, I2DS is the best partner for you. To know more about our solution or to get your process analyzed by our panel of experts, e-mail us at info@i2ds.com or hit the Request Live Demo tab on this webpage and we will get back to you
