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The Cost of Inaction: Quantifying Operational Losses from Legacy System

Executive Summary

As manufacturers face increasing pressure to improve output, lower costs, and meet ESG goals, many continue to operate with outdated, disconnected systems. The failure to modernize IT/OT infrastructure has tangible financial consequences: production delays, quality loss, inefficient maintenance, and data opacity. This white paper presents a quantitative argument for acting now—and demonstrates how Artisan Edge can deliver rapid ROI by consolidating fragmented systems into one unified, intelligent layer.


The Hidden Cost of Legacy Systems

Many manufacturers still operate with SCADA, PLCs, and HMI systems that were never designed to communicate with ERP, MES, or analytics platforms. These disconnected systems create four critical areas of inefficiency:

  1. Manual Data Handling: Operators waste hours transcribing logs, re-entering data into spreadsheets, or walking to machines to retrieve diagnostics.

  2. Unplanned Downtime: With no real-time visibility, issues go unnoticed until failures occur—costing tens of thousands in lost productivity per incident.

  3. Quality Variability: Without immediate feedback loops, off-spec production continues unchecked until discovered in batch testing or downstream inspection.

  4. Delayed Decision-Making: Executives operate with lagging indicators rather than real-time insights, leading to misalignment and missed targets.


Quantifying the Losses

Based on industry benchmarks, fragmented systems result in the following average annual losses per facility (based on 3-shift operation, 5-line facility):

Category

Annual Loss Estimate

Unplanned Downtime

$480,000

Quality/Rework Costs

$320,000

Labor Inefficiency

$150,000

Missed Production Targets

$200,000

Total

$1,150,000

These losses are not theoretical—they appear in the form of machine idle time, excessive scrap, overtime pay, and missed orders. The cost of maintaining status quo often exceeds the cost of change.


Artisan Edge: A Rapid Path to Recovery


Artisan Edge eliminates fragmentation by:

  • Providing a protocol-agnostic platform to connect all machines and systems

  • Creating live data dashboards for cycle time, scrap rate, energy usage, and OEE

  • Supporting predictive maintenance through AI-ready edge data ingestion

  • Integrating seamlessly with ERP/MES platforms without rip-and-replace


ROI Within 90 Days


Pilot customers deploying Artisan Edge have reported:

  • 10–15% increase in machine uptime

  • 12–20% reduction in quality defects

  • Immediate labor savings through automation of manual logging

  • Improved scheduling based on real-time performance data

A conservative site-wide deployment typically yields full ROI within 3–6 months.


Strategic Risk of Delay

While legacy systems may “work,” they actively limit scalability, agility, and competitiveness. By not acting:

  • You incur mounting integration costs for each new system or machine

  • Competitors gain edge through digitization and AI-readiness

  • ESG reporting and compliance initiatives suffer from poor data integrity


Conclusion

The greatest cost in industrial operations today is not technology—it is hesitation. Artisan Edge offers a future-ready solution that delivers measurable gains from day one. By unifying fragmented systems, your operation moves from reactive to proactive, and from isolated to intelligent.


To discuss a no-cost pilot or executive demo, contact sales@artisantec.io or visit www.artisantec.io


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