Medical Devices Manufacturers Using MES Gain Market Share

Only about one-third of the medical devices companies use manufacturing execution systems (MES), according to a study by Industry Directions. But those who do have gained market share.

The study, "Visibility and Control Minimize Risk: MES for Growing Medical Devices Companies," sponsored by Camstar, also revealed that the majority of medical devices manufacturers' metrics processes are too slow to foster continuous improvement.

"Medical devices manufacturers have an opportunity to grow at a nearly unlimited rate, but most are stymied by a lack of speedy, accurate information from their production processes. As a result, the market cap for these companies does not look nearly as healthy as their profit margins suggest they should. Increased investment in plant software systems will be a cornerstone of medical devices companies' ability to measure and improve performance as well as grow," said Julie Fraser, lead research analyst for Boston-based Industry Directions.

Over 70% more of those using MES improved on economic value-added, cash-to-cash cycle times, EBITDA (earnings before interest, taxes, depreciation and amortization), and productivity as measured in value-added per employee or revenue per square foot. Four times as many of those using MES were able to reduce overtime, and twice the proportion improved OEE compared to medical devices companies not using MES.

The report "Visibility and Control Minimize Risk: MES for Growing Medical Devices Companies" is available here.

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