Smart factory

: The operational and financial impact of implementing integrated manufacturing execution system in a Brazilian defense small medium enterprise

Abstract

This thesis investigates the operational and financial impacts of implementing an integrated Manufacturing Execution System (MES) in a Brazilian defense Small Medium Enterprise (SME). The study focuses on DefCo, a defense manufacturer, and explores how MES adoption influences production efficiency, quality control, and financial outcomes. Employing a case study approach, the research combines interviews, field visits, and project data spanning seven years, from 2016 to 2023, to compare performance metrics pre- and post-MES implementation. Findings indicate significant improvements in Overall Equipment Efficiency (OEE), with Part A and Part B’s OEE increasing to 90% post-MES implementation. The MES enabled realtime production monitoring, automated scheduling, and enhanced quality control, reducing labor costs by 20% and defects by 33%. Financial analysis reveals a 5.2 Return on Investment (ROI), driven by reduced labor hours and improved operational efficiency. Despite initial employee resistance and integration challenges due to security protocols, the MES helped data transparency, accountability, and long-term operational improvements. This research highlights the value of MES in enhancing competitiveness for SMEs in regulated sectors like defense and underscores the importance of strategic planning, training, and strong data governance for successful MES adoption. The findings offer insights into using Industry 4.0 technologies to drive sustainable growth in the global manufacturing landscape.

Date of Award	25 Oct 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Augusto Sales (Supervisor)