Manufacturing Execution Systems (MES) Buyers Guide Introduction

Manufacturing Execution Systems (MES) software is an increasingly critical component of modern manufacturing environments. MES collects and analyzes production data, tracks quality control, and is frequently integrated with ERP systems to monitor manufacturing schedules and ensure delivery of orders. MES serves as the intermediary between a business system such as ERP and a manufacturer’s plant-floor control equipment; it creates an audit control for tracking, tracing, and compliance purposes, and delivers work instructions to plant-floor personnel.^{3 4}

The Origins of MES

 The beginnings of the MES concept are found in the data collection systems of the early 1980s. Various functional areas of corporate management (e.g., production planning, personnel, quality assurance) were furnished with dedicated data collection systems, which became part of the computer-integrated manufacturing (CIM) pyramid model.⁵

CIM focused on the hierarchy of the manufacturing enterprise. As new pressures transformed manufacturing (e.g., increasing globalization and customer focus), the need for a new model emerged, resulting in MES.

AMR Research (now part of the research and analysis firm Gartner) first used the term “manufacturing execution system” in 1992 as part of its introduction of the three-layer MES model. This reduced the manufacturing model to three functional areas—planning, execution, and control—and helped manufacturers by reducing the number of layers of software, and focusing on the need to link the planning process to the control process through the newly defined execution process.⁶

What is MES?

MES is defined by the Manufacturing Enterprise Solutions Association (MESA) as a dynamic information system that drives effective execution of manufacturing operations:

Using current and accurate data, MES guides, triggers, and reports on plant activities as events occur. The MES set of functions manages production operations from point of order release into manufacturing to point of product delivery into finished goods. MES provides mission critical information about production activities to others across the organization and supply chain via bi-directional communication. ⁷

Despite a proliferation of articles and commentaries on MES, for many manufacturers it remains a confusing acronym. Although all systems are used to manage and monitor work-in-progress on the factory floor, the software may vary significantly for each vertical industry and product line. In general, MES systems will allow users to specify when materials should be ordered and to schedule tasks against an organization’s total production capacity through advanced production scheduling (APS). This allows for visual representations of projected workloads, and offers some form of Overall Equipment Effectiveness (OEE) reporting to gauge real-time efficiency. MES can also guide workers or machines through the production process. Specialist functionality for particular process industries can include modules such as ingredient expiration date monitoring and emergency shutdown systems⁸

     By providing operator support, production scheduling, tracking and tracing capabilities, and accurate, real-time visibility into production processes, MES may deliver the following benefits to a manufacturer:    

• Reduction of errors, and therefore a reduction of waste and rework
• Better understanding of the location and source of problems
• Reduction or elimination of manual entry time and costs
• Reduction of cycle time, resulting in increased yield and throughput
• More efficient use of equipment assets
• Improved planning and streamlined schedules
• Reduction of inventory
• Reduction of order-to-ship times
• Lower costs for regulatory compliance

An MES system can either reside on a centralized server or be distributed across modular hardware and software units that provide “services” and communicate on a local area network. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas that will not use their full capacity. ⁹

When the first MES setups hit the market in the 1990s, they were a good idea but ahead of their time. They promised great efficiency and significant quality improvements, but were too immature and expensive to make economic sense. ¹⁰

Deploying an MES system

Much has changed since then. Product lifecycles are shorter, profit margins are tighter, and regulatory environments are more severe. As these market dynamics continue shifting toward smaller production runs, greater emphasis on quality, and more complex market environments, only automated data collection and processing in a real-time, continuously available environment will provide manufacturers with the agility they need to survive. Therefore, it is widely accepted that for manufacturers to thrive in the decades ahead, they will have to deploy MES across their enterprise. ¹¹

Normally, MES would include the following basic functional modules:

• Detailed planning and control
• Material management
• Operating resources management
• Personnel management
• Data acquisition and processing
• Interface management
• Performance analysis
• Quality management
• Information management ¹²

While the implementation of an MES system is always challenging, the rewards and return on investment are higher than they have ever been.