The Impact of Smart Management Systems on Operational Efficiency and Cost Reduction

Abstract

This study evaluates the impact of smart management systems on operational efficiency and cost reduction within five enterprises in Manila, Philippines. By integrating advanced IoT technologies and data analytics, these enterprises reported significant improvements in key performance indicators such as Overall Equipment Effectiveness (OEE) and production downtime reduction. The data was collected through comprehensive surveys, in-depth interviews, and detailed case studies conducted over a two-month period. Findings reveal that the implementation of smart management systems resulted in an average 20% reduction in production downtime, a 15% improvement in OEE, and annual cost savings averaging PHP 3,500,000. However, challenges such as high initial implementation costs and the need for extensive staff training were also noted. This research underscores the potential of smart management systems to enhance operational efficiencies and reduce costs while also highlighting the practical challenges that need to be addressed for successful implementation.