Manufacturing operations management may appear complex. But with integrated Manufacturing solutions, you can gain control of your production and maximize productivity. A manufacturing execution system (MES) can assist in this situation.

If you are a manufacturer who seeks streamlined procedures, MES could be the solution. Production success necessitates the ability to regulate and track your entire manufacturing operation. It is also dependent on many other corporate obligations.

In this post, we will look at what MES manufacturing is. We shall also learn how it works, apart from other related aspects. Here is what we shall cover:

• What is MES System?
• History of MES Evolution
• Key Features of a Manufacturing Execution System in Production
• Manufacturing Execution System Architecture
• Advantages of Manufacturing Execution Systems
• MES Vs. ERP: Difference Between MES and ERP
• Can Manufacturing Execution System work with your MRP or ERP?
• Top 5 Ways ERP and MES Integration Makes Manufacturing Agile
• Should You opt for Manufacturing Execution System
• Future Trends of MES
• Conclusion
• How can Deskera Help You?
• Key Takeaways
• Related Articles

What is MES System?

A Manufacturing Execution System or an MES assists firms in ensuring that their manufacturing activities are up to the mark. The system also takes care of the efficiency of their output. It is a software system that connects the manufacturing floor's machines, work centers, and data flows. It assists in tracking and managing these data flows.

The MES accomplishes this by tracking and collecting real-time data on every piece of equipment engaged in the manufacturing process.

Throughout the production cycle, an MES provides firms with data on product tracking and genealogy. It provides insights into the performance, traceability, and management of the plant. The reliable information about the work in progress (WIP) and other plant activities from MES enables the managers in effective decision-making. This valuable insight further aids business owners in optimizing their operations.

History of MES Evolution

In the 1950s and 1960s, the advent of host mainframe computing paved the way for the incorporation of information technology into production technologies. It enabled manufacturers to gather, alter, and share information. Also, they could now venture into automated calculation and analysis. Gradually, this facilitated the creation of increasingly sophisticated goods.

Simultaneously, inventory control became very important in the framework of production management. This led to the increased creation of software in the 1960s. During this time, inventory control was often handled by BOM processors or a bill of materials. The BOMs were used to depict process plans.

This was the phase when the complexity of manufacturing operations developed tremendously. Thus, in the 1970s, the emphasis turned to Material Requirement Planning (MRP).

What is a BOM?

A bill of materials (BOM) is a detailed description of the raw materials, components, and instructions needed to build, produce, or repair a product or service. A bill of materials is typically presented in a hierarchical structure, with the finished product at the top and various components and materials at the bottom.

Read Our Detailed Guide on the Bill of Materials HERE

This managerial tool allowed finance managers to gain a better understanding of business operations. Moreover, managing things has become easier now. New functionalities came into being so as to meet the increased demand. There was an expansion of the instruments for automating business operations.

What is Material Requirements Planning (MRP)?

MRP, or Material Requirements Planning, is software that estimates the raw materials and components needed to make a product. This is accomplished by combining inventory and supply chain management for enterprises.

Read Our Detailed Guide on MRP HERE

This was when Manufacturing Resources Planning became widespread. Precisely, it was MRP II that the companies implemented in the 1980s. An MRP II proposed an extension of MRP functions to combine all aspects of personnel, material, and machine planning and control.

It was in the early 1990s that another advancement in technology found a strong foothold. This was termed ERP (Enterprise Resource Planning), which the companies widely installed and used for enhancing business performance.

An ERP system is a unified information processing system that supports various corporate functions such as finance, distribution, human resources, and manufacturing. The Gartner Group has made much of the latest edition of ERP II.

Fundamentally, ERP II represents a transition in typical ERP programs. It accomplishes this by focusing on internal data gathering and process management. It could also establish external communication. So, now communicating with partners, providers, and customers over the web has become easy.

The following image depicts the broad perspective on the evolution of ERP systems.

This model was initially popular among manufacturers. However, as the scope of controlled systems expanded, the ERP system was no longer adequate. The scenarios necessitated the use of systems needed for supervising activity on the shop floor.

During the 1990s, a new manufacturing management tool known as Manufacturing Execution Systems was developed and used for this purpose. There are different interpretations of MES depending on the manufacturing conditions. However, the common feature is that an MES intends to act as an interface between an ERP system and shop floor controllers. It does so by enabling diverse functionalities. These include activities such as planning, order release, quality management, and data capture.

Key Features of a Manufacturing Execution System in Production

Engineering professionals strive to build and implement standard and customized MES systems. They developed these systems to deploy customized MES solutions for in-house processes as well as to serve their customers. Catering to a wide range of customers is a daunting task. This was made feasible through the use of a global network of renowned software partners.

Industrial execution requirements vary a lot. While there is no single solution that meets all criteria, a successful solution includes the automation of a lot of key features. These key features can be termed the primary characteristics of MES.

The following image depicts some of those:

Process Management

One of the most important elements of manufacturing, process management, is extremely crucial to successful production cycles. Manufacturing largely thrives on automation. It would be almost impossible to achieve optimal automation without process control.

The reason why process management is so important is that it offers manufacturing processes insights that include the following:

Safety

Manufacturing processes that involve hazardous activities need to fall back on data that informs them about the potential hazards. Some industries like petrochemical, oil & gas, and chemicals deal with this on a regular basis.

Minor fluctuations and tiny variations in the readings can snowball into huge safety concerns. Process control intercepts any deviations from the usual and guarantees workers’ safety.

Automation

To make goods, modern manufacturing plants employ incredibly complicated machinery. Automation has reduced the number of people required to operate this machinery. Yet, automated machinery needs process control to collect data and verify that the plant's output is optimal. Eventually, it boils down to the effectiveness of the final performance.

Data from industrial processes is collected using automated sensors in process control. This information is then used to make decisions.

Energy Efficiency

Many industrial operations use a lot of energy, which raises production prices. Because manufacturers are constantly seeking ways to cut costs, making a plant more energy efficient is critical.

Factory managers can closely monitor the energy efficiency levels of manufacturing processes thanks to process control. Fewer defective items will be generated if the equipment is run at peak efficiency without expending energy.

Production Order Execution

Production orders allow you to plan the manufacturing process from the start to the end of its execution. They contain all of the information required for production. This comprises determining input products and input products. They also help determine which resources are required and when the activities should be processed.

Following the creation of the production order, the system estimates the planned quantities, durations, and dates. This also includes the scheduled dates. Scheduling helps estimate the time of commencement of production. These schedules are based on the timelines so as to meet the projected demand.

There are the following statuses assigned to the products based on their completion:

• In preparation: indicates the stage where the production orders are being prepared but are not released yet.
• Released: Indicates the release of the production order to production execution.
• Started: Indicates the commencement of the process of production tasks
• Finished: Indicates a finished production order (often signals the completion of all the related production tasks and production lot)
• Closed: The production order is closed and is not relevant to the logistics any longer.
• Canceled: Indicates the cancellation of a production order (this can happen only when none of the related tasks have been started.)

All these stages indicate the existing state of the production orders. If production execution generates less or more than projected, planners must be informed. Thereafter, the team can plan for how to deal with unfulfilled or overfilled demands.

Resource Allocation and Status

Scheduling available resources in the most efficient and cost-effective manner feasible is known as resource allocation. Manufacturing projects will always require resources. However, they may face scarcity at times. As a result, it is the project manager's responsibility to decide the right scheduling and allocation of those resources within the project timetable.

In other words, it is the management and delegation of resources during a project to ensure its seamless and effective completion.

Data Collection/Acquisition

Controlling costs and ensuring seamless operations are one of the primary goals of the manufacturing process. However, data collection could be a challenge for many companies. Implementing data collection techniques at the right point is crucial. Without this, the data collected may not be relevant or may be of no use to the company.

Therefore, in recent times, companies are finding it useful to implement a touchscreen data collection system. This system can be deployed on the shop floor to enable the manufacturers to derive maximum value from it.

The touchscreen eliminates the need for a keyboard, making it a more user-friendly choice for employees. A single portable touchscreen data collection system is quick and simple to set up. It requires minimal employee training, saving time and money. It also reduces disturbances to your routine operating procedures.

Product Tracking and Traceability

Product traceability enables manufacturers to follow inventory movements from beginning to end. This way, they can track things to locations where they were transported or visit their operational processes.

Traceability is quickly becoming a key aspect of the manufacturing process for businesses across all industries. While this is great in the case of recalled products, it finds relevance and applicability across many other sectors. It would be a recommended procedure for all manufacturers.

By welcoming product tracking, companies can avail of multi-level benefits. From economic productivity to resource capabilities, they would see an improvement in all related areas. Organizations can gain more granular control over their manufacturing processes by deploying systems that enable high-level tracking and tracing capabilities. After all, building safer and quality products can offer continual improvements.

Here is how the traceability of products can help manufacturers:

• Tracing the origin of elements
• Tracking production lifecycle
• Maintaining inspection notes
• Learn about time spent at each workstation
• Knowing the right product destinations

Performance Analysis

When we speak of performance analysis, we are essentially trying to examine if the implemented processes have yielded the expected results. In short, it is the assessment of the system’s capacities to meet the demand for deliveries.

Performance analysis in manufacturing helps evaluate the efficiency of the equipment. The analysis works on information to present an interpretation of different business processes. The manufacturers can then review and analyze it.

Consequently, it aids in providing a competitive advantage by increasing margins, cutting costs, and competing at a higher level. Real-time visibility assists in identifying the weakest links in your lines. You can manage them to obtain an optimal operational capacity.

The analysis allows you to differentiate between unplanned downtime and product changeover or idle time. Moreover, there could be other planned occurrences that can be prepared for beforehand. The performance analysis helps in making modifications based on real-time indications of schedule adherence. By capturing production data, integration with the plant control system aids in performance management.

Operational Scheduling

Maintaining a timely and effective production schedule is one of the most significant issues in industrial operations. When faced with issues relating to timely deliveries, businesses adopt the process known as Operations Scheduling.

This process includes allocating jobs or activities to the appropriate machinery and labor personnel. We know that planning determines which resources and supplies will be assigned to each job. On the other hand, scheduling adds the timing component to the production schedule. It is concerned with optimizing the sequence of activities on the given resources in order to establish and execute the most efficient production plan.

The objectives fulfilled by operational scheduling are as follows:

Maximize resource utilization: This helps in lowering business expenses due to poor utilization of resources.

Manufacturing time reduction: with a well-crafted scheduling process, manufacturing time can be lowered. The end-to-end process time can be reduced for the diverse operations in the company.

Optimizing labor efficiency: A well-thought production schedule will minimize the setup time on machines. Also, it boosts the efficiency of the labor force.

Inventory minimization: When you have a shorter manufacturing time, there will be fewer products in the WIP state. So, this will require you to hold on to lesser inventory.

Service level improvement: Having an effective production schedule benefits, not just the shop floor workers but also the customer service employees. They can determine when products will be finished by looking at the schedule. They will also be able to alert customers ahead of time if a slowdown arises. Overall, this helps improve services.

Maximizing Revenue and Output: Having an effective timetable will improve the number of products that can be produced overall. As a result, production costs will be reduced because all resources will be utilized optimally. The end outcome will be improved profits and on-time delivery.

Quality Management

As a manufacturer, you certainly understand the importance of the quality of products. Having a consistent and high standard of quality underlines the business's success. Moreover, if you largely rely on your suppliers for your manufacturing, then quality management becomes quite crucial.

A strong quality control program is integral to a successful manufacturing off-shoring strategy. It must include all aspects, from the standard of the raw materials to production techniques and part inspections. A professional contract manufacturing supplier will have quality control systems in place to ensure a regular and standardized supply of quality products.

With the automation feature of the MES, the manufacturers can guarantee the consistency of the quality of the products. Thus automating quality management can provide excellent solutions while trying to achieve good quality. Furthermore, the system can help further this process at affordable costs.

The key benefits of quality management with MES are as follows:

• Maintain good and consistent quality of products
• Improve customer satisfaction
• Remain compliant with the latest rules and guidelines

MES, with internal quality capabilities, enables quality management to delve deeper into issue areas for nonconformance detection and real-time corrective action. Some sectors that could benefit immensely from this feature include medical supplies, nuclear, aerospace, and defense.

This list of MES features is not exhaustive. There is a wise array of functions and values that the MES system can bring along. The manufacturing companies can zero in on the features that they find the most suitable for their business size and type.

Manufacturing Execution System Architecture

We must know that the ANSI/ISA-95 is an international standard for business and control system integration. To develop a functional hierarchy for MES, the ANSI/ISA-95 integrated the MESA-11 model with the Purdue Reference Model.

The following image lets us know the position of MES based on the ISA-95 functional hierarchy.

A Manufacturing Execution System sits between a business planning and logistics system and a manufacturing process control system. With this technology, manufacturing floor decision-makers can improve productivity and quality by utilizing its real-time workflow visibility, flexibility, and analytics.

While it benefits all, MES offers various benefits for certain industries. Businesses that must adhere to stringent requirements benefit greatly from MES technology due to its ability to track materials.

A wide range of industries is covered, including food and beverage, automobiles, medical devices, aeronautics, and aerospace. MES records processes, events, and activities, as well as their verification. These are important elements when manufacturing regulated products.

Advantages of Manufacturing Execution Systems

If you think your business requires MES, it would be a good idea to learn about the various benefits the system offers. This section takes us through those.

ERP Integration

MESA illustrates how an MES can integrate with other systems. Thus, by using a single system, stand-alone systems and unnecessary data re-entry are eliminated. Additionally, companies can achieve more accurate delivery date projections and improved decision-making.

Paperless Manufacturing

MES records and presents real-time information from the plant floor. This information could pertain to labor, maintenance, downtime, and so on. As this data is auto-recorded, you can eradicate the use of spreadsheets and other manual methods of data recording. With an MES, labor, downtime, and maintenance are all recorded in real time from the plant floor.

This allows you to keep a record of all the various costs without using paper notes and spreadsheets. The system also makes it possible to evaluate unprofitable business models and predict future prices based on the collected data. By utilizing MES in your plant, you can increase production and efficiency.

Decreases Downtime

An MES generates accurate production schedules. It also keeps track of raw materials and inventory. This saves time spent rearranging schedules while components are in transit. This can also be applied to employees. In other words, it is rewarding to have an MES for efficient scheduling of the available workforce.

Reduces Waste and Improves Efficacy

An MES gives you real-time data on all of your processes. You may streamline operations and enhance efficiency by using real-time data to make decisions on the product, time, and manpower required to accomplish a project.

This technique finally allows you to save money on orders while also freeing up people from operating manufacturing lines and monitoring inventory.

Reduce Inventory

As previously discussed, MES facilitates inventory recording regularly. So, when you have updated records of new products and goods, you have easy access to many components. Your purchasing, shipping, and scheduling departments can easily access what is available and what needs to be ordered.

Businesses spend a considerable amount on transporting, storing, and monitoring products. The MES ensures that you always have the proper amount of inventory on hand while minimizing overstock.

Reduce Costs

An MES gives you real-time data on all of your processes. You may optimize operations and enhance efficiency by using real-time data. It helps with making decisions on the product, time, and manpower required to accomplish a project.

This technique finally allows you to save money on orders while also freeing up people from operating manufacturing lines and monitoring inventory.

All of these efforts help to create a more efficient workforce. MES has been instrumental in providing improved quality and profitability. There are also other types of MES available, each with its own set of benefits and drawbacks. Therefore, businesses must analyze their requirements to choose the apt MES with the right integrations.

MES Vs. ERP: Difference Between MES and ERP

With a fair idea of MES now, you may wonder what distinguishes MES from ERP. This section highlights a few basic fundamentals of ERP. This is followed by the main differences between the two software categories.

Let’s begin.

What is ERP?

Enterprise Resource Planning is a software system that allows companies to access and store all of the integrated data belonging to various departments in real-time.

These modules are constantly delivering critical information to the firm. Bills, invoices, stock-in and stock-out information, staff information, and customer data are all included. All of these components necessitate careful monitoring and analysis. These are all required for the preparation of reliable financial accounts. Real-time reports on these aspects allow the organization to examine its growth factors.

An ERP system can be thought of as a framework that binds together real-time information entered into it. It can coherently store and manage this data from multiple departments inside the firm. Furthermore, this data can be monitored and used for evaluations by the company's owners, managers, and employees.

Features of ERP

Let’s take a quick look at the primary features an ERP offers:

Benefits of ERP

ERP offers multiple benefits. Let’s look at them one by one here.