Ensuring compliance and safety is not a cheap endeavor. In fact, according to a report from NorthRow, on average, 25% of business revenue is spent on compliance costs. However, not paying attention to compliance and safety can cost businesses far more - especially in the manufacturing world. 

Organizations lose, on average, $5.87 million in revenue due to a single non-compliance event, and the total cost of non-compliance exceeds $14 million stemming from fines, penalties, reputation damage, and more.

Implementing compliance and safety standards can seem daunting, but the adoption of a Manufacturing Execution System (MES) solution can make it easier by allowing for real-time monitoring, aiding in accountability, and overall, increasing visibility. In the world of manufacturing, safety and compliance is not just a tool that is nice to have – it’s a crucial factor that guarantees the sustainability and profitability of a business.

Why Safety & Compliance is a Must in Manufacturing

Safety and compliance in manufacturing touches nearly every aspect of the business. Despite its costs, it must remain a priority.

First and foremost, compliance and safety standards protect employees. The most valuable asset to a business is its workforce, and these standards not only create a safe environment for employees’ well-being, but they also lead to increased job satisfaction, decreased absence, and higher productivity.

Next, enforced compliance helps businesses avoid financial penalties. Non-compliance can lead to costly fees and legal liabilities with unnecessary financial burdens and legal entanglements. By upholding safety and compliance standards, businesses can mitigate the risks associated with regulatory fines and legal consequences, thereby safeguarding their financial stability and reputation within the industry.

Maintaining these standards also increases operational efficiency. Compliance and safety incidents can halt production, delay deliveries, and increase operational costs while a safe and compliant environment minimizes disruptions, ensuring a safe and on-time delivery.

Where Manufacturing Execution System (MES) Software Comes Into the Equation

In an industry where there are many moving parts and players, implementing and maintaining safety and compliance standards can be difficult. With the addition of MES software, however, manufacturers can benefit from a single source of truth and increased visibility into everyday operations.

• Provides Real-time Monitoring: MES software offers real-time monitoring of all processes. This continuous surveillance helps identify potential safety hazards before they escalate into major issues.
• Assists in Documenting Procedures and Policies: The software ensures that all safety and compliance guidelines are documented. This helps standardize safety measures and confirms that they are communicated and followed throughout the organization.
• Aids in Traceability and Accountability: With MES, every action on the production floor is recorded. This means that in the case of an incident, it’s easier to trace back and identify the root cause, leading to accountability and faster resolution.
• Provides Actionable Reporting and Analytics: Through MES software, manufacturers can generate comprehensive reports related to safety incidents, compliance checks, and other relevant metrics. This aids in continuous improvement and proactive safety management.

These comprehensive solutions play an indispensable role when it comes to upholding the highest standards of safety and compliance. In addition, MES can provide a framework to ensure that every aspect of a manufacturer’s production process is not just efficient, but also compliant and safe. MES solutions are no longer just a nice-to-have option, but a necessary software for manufacturing plants to ensure smooth, compliant operations in the ever-evolving manufacturing landscape.