Blog 4.0

Digital transformation in the metal industry: from manual to digital

Written by JEFF | Sep 16, 2025 9:00:00 AM

The metal and machinery industry is at a turning point. Global competition, pressure to reduce costs and the need to meet increasingly demanding quality standards have placed digital transformation at the center of many companies' strategies.

For decades, metalworking factories have relied on manual processes and poorly integrated controls that generated inefficiencies and wasted time. Today, technologies such as OEE Lite, ERP/MES systems and real-time in-plant data capture are becoming strategic allies to improve factory productivity and ensure long-term competitiveness.

Current challenges in the metal and machinery industry

Digital transformation in the metal sector is not a fad, but a response to the real challenges faced by SMEs and large companies in the sector.

Inefficient planning

Many companies still rely only on Excel or disconnected systems to plan production, inventories and resources. This results in:

  • Delays in deliveries.
  • Difficulties in meeting international customer deadlines.
  • Inability to react to last-minute changes.

In an industry where projects tend to be customised and with high unit costs, real-time production management makes the difference between profitability and loss of contracts.

Unplanned downtime and high costs

Reducing machine downtime is another major challenge. A single incident can cause:

  • Hours of unplanned downtime.
  • Additional costs due to rework.
  • Direct impact on customer satisfaction.

Operational efficiency in the metal sector depends on knowing exactly what is happening on the shop floor and anticipating faults. This is where solutions such as in-plant data capture with OEE and digital preventive maintenance come into play.

 

ERP/MES as a solution for digital transformation

The path to industrial digitisation involves integrating systems that connect all levels of the company: from the operator to management.

Real-time monitoring

An MES system for the metal sector allows information to be captured directly from the machines:

  • Current status of the line.
  • Production per shift.
  • Incidents in real time.

Thanks to the use of tablets and OEE visualisation on the shop floor, operators are connected, and managers can make quick decisions based on data, not assumptions.

Inventory and cost optimisation per project

The implementation of an ERP for the metal industry provides control over inventories, orders and costs. This translates into:

  • Better material planning.
  • Identification of the financial impact of shrinkage.
  • Increased profitability in projects under order.

With a production control system for the metal sector, the company knows at all times the exact cost of each batch or project.

Reduced downtime with preventive maintenance

OEE Lite not only measures efficiency, it also helps to plan data-driven maintenance. With this information it is possible to

  • Reduce unplanned downtime.
  • Extend the useful life of machinery.
  • Improve energy efficiency in factories.

Direct benefit: companies reduce costs, increase productivity and achieve greater customer satisfaction.

Moving from manual to digital in 3 steps

Digital transformation in metallurgical factories does not have to be complex. These are the 3 recommended steps:

  1. Initial diagnosis.
    • Identify critical processes.
    • Measure current indicators (OEE, downtime, scrap).
  2. Gradual implementation
    • Start with an OEE Lite module for plant data capture.
    • Expand with MES for production control.
    • Integrate with ERP for inventories and projects.
  3. Scaling and continuous improvement
    • Add advanced analytics(BI, Big Data).
    • Integrate IoT sensors for predictive maintenance.
    • Promote a culture of industrial digitisation.

At Overtel, we put these steps into practice with our AGILE methodology. This means clear planning, flexible implementation and continuous maintenance, with deliverables validated every two weeks and specialised support.

 

The metal industry is at a turning point: those who bet on industrial digitalisation will be able to compete in international markets with efficiency, traceability and cost reduction. An MES/ERP system is the key to optimize production, improving profitability and reducing machine downtime.

At Overtel, we help metallurgical SMEs to take this step with modular and scalable solutions.
Request a meeting or a free demo.