Still Using Excel on the Shop Floor? Why That’s Costing You More Than You Think

Still Using Excel on the Shop Floor? Why That’s Costing You More Than You Think | SPONSORED

Despite years of digital transformation buzz, many manufacturers still rely on spreadsheets, paper-based records, and siloed systems to run critical operations. As Augusto Vilarinho, Head of Global Sales at Critical Manufacturing, bluntly put it during the recent MES & Industry 4.0 Summit in Porto:

“Excel is still the most used MES in the world.”

The consequences? Missed insights. Inefficient processes. Slower time to value. Uncontrolled information security. Lack of regulatory compliance. And an increasing gap between digital leaders and laggards.

From Manual to Meaningful: The Value of Contextualized Data

Modern factories generate mountains of data—from machines, sensors, operators, and suppliers. But without Manufacturing Execution Systems (MES) to contextualize that data, most of it goes unused or misunderstood.

It’s not enough to track that a part was made. Manufacturers must know:

• When it was made
• By whom
• With what raw material or semi-finished goods
• Under what conditions
• And how it relates to other processes or outcomes

That’s where MES comes in—not just as a data collector but as a context engine. This is the key difference between simply gathering data and turning that data into decisions.

MES is No Longer Optional—It’s a Digital Transformation Launchpad

According to speakers at the summit—including experts like Walker Reynolds and Jeff Winter—up to 98% of successful digital transformation efforts begin with MES. Yet, many manufacturers treat MES as a compliance requirement or a secondary IT tool.

Augusto Vilarinho’s message is clear: the companies that thrive are those that see MES as the foundation of Industry 4.0 and Industry 5.0 initiatives. Without it, efforts to apply AI, advanced analytics, or even basic automation remain superficial.

Case in Point: Why Context Beats Reports

Take the example of manufacturers that generate daily reports across different lines or plants—but have no central system to connect them. They might know how many units were made or how long a machine ran, but they can’t answer:

• Why was this batch out of spec?
• Who handled this product and when?
• Was there a delay due to a specific supplier’s input material?
• How do the results from a machine or line correlate with other similar machine results?

MES ties it all together—creating a digital thread from raw materials to finished goods and from operator action to business outcome.

Where Digital Maturity is Accelerating Fastest

While semiconductor fabs have optimized their MES stacks over decades, the biggest transformation is now happening in industries with manual or semi-automated processes—especially medical devices, discrete assembly, and industrial equipment.

Why? Because these sectors can see double-digit gains in yield, efficiency, and compliance simply by replacing paper and Excel with a modern MES platform. In some cases, manufacturers see ROI in under 12 months, even in complex, regulated environments.

Change is Hard—Until It’s Not

Initial resistance is common. Many operators push back on MES at first—preferring paper or legacy methods. But once deployed, MES becomes indispensable. “The factories that already have it can’t imagine going back. And the ones that don’t? They’re asking for it.”

The key is starting small, proving value quickly, and expanding in phases. Once the first MES implementation is live, subsequent rollouts become faster, smoother, and more widely embraced.

Stop Managing Manufacturing in Spreadsheets

The question for manufacturers isn’t whether you need MES—but whether you can afford to delay it any longer.

If your teams are still managing traceability, compliance, or scheduling in Excel—or if your data lacks context—your operations are more vulnerable than you think. MES is no longer about automation alone; it’s about turning operations into a strategic advantage.

The time to act isn’t next year. It’s now.

Want to learn how global manufacturers are scaling MES across 20+ sites? Visit Critical Manufacturing for use cases, tools, and transformation strategies.

Sponsored by Critical Manufacturing 

About the author

Lucian Fogoros is the Co-founder of IIoT World