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What is a Manufacturing Execution System (MES)?

Factory worker operating manufacturing machine as part of MES process

What is a Manufacturing Execution System (MES)?

A Manufacturing Execution System (MES) is a software platform that controls systems and monitors production of raw materials into finished goods on the plant floor. It provides real-time tracking of production activities, helping manufacturers optimise their operations by:

  • Managing production scheduling
  • Collecting real-time data from machines and processes
  • Tracking inventory and resource utilisation
  • Managing quality and strict regulations
  • Identifying improvements in production efficiencies
  • Providing detailed documentation for regulatory compliance

MES software integrates with Enterprise Resource Planning (ERP) systems to give manufacturers a comprehensive view of their operations, helping them to improve production cycle efficiencies and supply chain visibility to reduce costs, and enhance overall business performance.

How does an MES work?

The software system continuously processes data, allowing manufacturers to optimise manufacturing schedules and production output allowing business owners to make data-driven decisions.

An MES works by integrating and coordinating multiple aspects of manufacturing operations management through four key components:

Machines

  • Connects to plant floor equipment via sensors
  • Tracks equipment effectiveness and manufacturing data in real-time
  • Optimises production planning
  • Automatically adjusts production sequences for maximum efficiency

People

  • Tracks worker skills and availability
  • Assigns tasks based on individual capabilities
  • Reduces bottlenecks by managing human resources strategically

Inventory Management

  • Monitors raw materials and components in real-time
  • Reduces excess inventory
  • Provides accurate inventory tracking
  • Helps prevent production delays

Quality Control

  • Collects production data throughout process control
  • Monitors quality management checkpoints
  • Provides documentation for quality assurance
  • Identifies potential production bottlenecks and potential issues in real-time

Examples of MES in action

MES solutions transforms manufacturing operations management across a range of industries by providing unprecedented visibility and control over business systems.

From the precision of automotive assembly lines to the stringent requirements of aerospace manufacturing, MES coordinates, monitors, and optimises every aspect of production operations.

Integrating MES will help manage complex manufacturing by optimising production process control systems and improving business operations through product tracking and supply chain management.

It's particularly valuable for mid-sized discrete manufacturers that provide a unique offering to their customers and have to manage extensive orders. Without MES, these manufacturers could face major constraints on the factory floor if jobs aren't managed efficiently.

Job shop operator analysing machine utilisation.

Key Features of MES

Real-Time Data Collection and Analysis

 

  • Provides real-time insights on control system status
  • Monitors machine performance
  • Identifies issues before production starts

Production Scheduling

 

  • Dynamically adjusts production sequences
  • Optimises machine setup and job order
  • Reduces setup times and improves production efficiency

Quality Control

 

  • Provides detailed documentation for regulated industries
  • Tracks processes control and overall equipment effectiveness
  • Ensures regulatory compliance with quality assurance standards

Inventory Management

 

  • Reduces excess "just in case" inventory
  • Provides real-time inventory tracking
  • Helps minimise inventory costs

Maintenance Management

 

  • Monitors machine status
  • Performance analysis of equipment wear and replacement
  • Predicts and prevents potential machine downtime

Work Order Management

 

  • Tracks job resources
  • Manages labour skills and capabilities
  • Identifies efficient production process

Benefits of Implementing MES

MES software systems transform decision-making from reactive to proactive, enabling manufacturers to make better informed, data-driven choices about their production processes.

Implementing a MES solution can help manufacturers “provide cheaper product faster" compared to competitors without MES. For regulated industries, MES can provide a clear picture of the entire production process about manufacturing assets, which is crucial for maintaining high-quality manufacturing standards and ongoing business planning.

Increased Efficiency

  • Streamlines manufacturing systems
  • Identifies and reduces shop floor bottlenecks
  • Provides real-time production insights
  • Helps flatten out production challenges
  • Enables better resource allocation

Improved Quality

  • Identifies potential quality issues during manufacturing
  • Tracks how long production took
  • Collects data on who built the product
  • Documents which machines were used
  • Tracks material sources
  • Provides clear reasons for resource usage during production

Enhanced Visibility

  • Gives a detailed view of factory floor operations
  • Allows managers to see production challenges before they escalate
  • Provides data-driven insights for decision-making
  • Creates comprehensive documentation supporting quality processes
  • Enables traceability of product manufacturing history and improved supply chain visibility

Better Compliance

  • Provides detailed documentation for compliance-driven industries
  • Tracks production issues and parameters
  • Offers comprehensive quality control records
  • Improved document control across enterprise and control systems
  • Supports compliance requirements, which can be especially important in defence and government contracts

Cost Reduction

  • Reduces scrap and waste
  • Minimises machine downtime
  • Provides accurate job costing
  • Reduces unnecessary inventory
  • Optimises resource utilisation
MES Blog Image 2

MES vs. ERP: Understanding the Difference

While often confused, an ERP and MES work in tandem to drive operational excellence. Each system has a unique and essential role in operating a manufacturing business.

Understanding their distinct functions and how they interact is key to optimising production efficiency and business performance.

Essentially, an ERP provides a broader business management framework, while a MES provides granular, real-time manufacturing process management.

ERP provides a high-level overview of the entire manufacturing company, covering end-to-end business processes including estimating, quoting, sales orders, and production orders. It also manages warehouse and inventory location control and handles purchasing, delivery, and accounting.

MES provides a far more detailed view of the factory floor and more in-depth workflow scheduling. It offers more comprehensive quality guardrails, allowing a factory to almost "run itself" through detailed tracking of manufacturing process control systems.

MES is the basis of the Internet of Things (IoT) , integrating all manufacturing processes into a cohesive system in the factory. MES integrates with virtually everything in the manufacturing environment, including:

  • Sensors
  • Machines (telling the system what has or hasn't been done)
  • Automated inventory systems
  • Machinery controls

MES also supports broader system integration to provide a comprehensive, interconnected manufacturing management approach. MES integrates with:

  • CAD systems
  • Accounting software
  • Sales systems
  • Purchasing systems
  • Shipment tracking systems

MES in Different Industries

MES is a versatile system applicable across multiple industries, including food and beverage, pharmaceuticals, job shops, and discrete manufacturing.

Its adaptability makes it valuable wherever there are machines, integration challenges, and a need for constant quality monitoring and production rescheduling. It's most beneficial for businesses with multiple machines and intricate processes, typically ranging from small to mid-sized operations up to top-tier manufacturers.

For Australian manufacturers, MES systems provide significant advantages by helping companies manage extensive orders and unique production offerings.

Office technology management

Challenges in Implementing MES Systems

When implementing a Manufacturing Execution System for the first time, employees might initially wonder if the MES system will replace them. MES is a tool to help them do their job more effectively. This advanced technology changes how work is done, with employees remaining essential in the manufacturing process, particularly in operating machines and managing production.

The psychological challenge of reorganising shop floor operations should not be underestimated. Employees may be accustomed to working in a "complex and confused state”. MES disrupts this by cleaning up and organising factory processes, which can be initially disorienting. The system transforms a chaotic production approach into a more logical and structured workflow.

The complexity of implementation also varies depending on a manufacturer’s current processes. Adapting to the new system can take time as employees adjust to a more logical and organised system. The MES helps by providing clarity and efficiency, but this transition can be challenging.

Despite these challenges, most manufacturers recognise the value of MES systems as a valuable tool to improve overall production capabilities.


The Future of MES: Trends and Innovations

Manufacturing Execution Systems will continue to evolve and help manufacturers to manage their entire business as cost effectively as possible, allowing them to produce more with the same resources.

From increasing automation and sophisticated data analysis to enhanced predictive capabilities and greater system integration, the future of MES is deeply intertwined with Industry 4.0. In fact, MES is the basis of the IoT in the factory.

  • AI and Machine Learning in MES - while still in the early stages, AI and machine learning has the potential to transform MES by enabling machines to self-monitor, predict maintenance needs, and make automated decisions about tool replacement.
  • Predictive maintenance with MES - enables machines to self-monitor their performance, autonomously tracking tool wear and initiating replacement processes, though this remains in its early stages
  • The role of IoT in MES - enables full integration of manufacturing technologies, connecting sensors, machines, and software. MES using IoT enables manufacturers to have comprehensive, real-time visibility and control over their entire production environment, transforming how manufacturing operations are managed and monitored.
  • How Industry 4.0 is shaping MES - goes beyond just manufacturing, potentially integrating, machinery, production, labour management, electricity and resource management and comprehensive business optimisation.

While the potential for "lights out" factory operations through MES technology exists, human oversight will remain crucial for strategic management, purchasing, scheduling, and performance monitoring.

MES and ERP: How They Work Together

MES and ERP work together by complementing each other's functions. ERP handles the end-to-end business process - creating estimates, quotes, sales orders, and managing accounts, while MES provides a detailed view of the factory floor.

When a production order enters the system, ERP provides the initial scheduling. MES then dynamically optimises this schedule, rearranging jobs to maximise machine efficiency. For example, a nesting machine might combine multiple jobs on a single sheet of metal, changing the original production sequence.

The MES captures these real-time adjustments and feeds the information back to the ERP system, providing a more granular view of production processes. While ERP offers basic production scheduling, MES delivers a more adaptive and detailed approach to managing workflow.

ERP provides the high-level overview of the entire manufacturing operation, while MES offers the more visible and detailed view of the factory that allows production to almost run itself.

Frequently Asked Questions

What is ECI's MES?

ECI's MES is a Manufacturing Execution System that controls the processes of transforming raw materials into finished goods by managing machinery, labour, inventory, and quality across the entire production environment. It integrates with ECI's M1 ERP system to create a cohesive ecosystem for your manufacturing business. 

What does ECI's MES give me?

ECI's MES is a tool that helps manufacturers:

  • Get the best cost reduction possible
  • Streamline operational efficiency
  • Optimise resource utilisation
  • Provide detailed tracking and documentation of manufacturing activities

What ERP can I use with ECI's MES?

ECI's M1 ERP provides a high-level overview of your entire manufacturing business, and works with ECI's MES to focuse specifically on detailed factory operations.

What industries benefit most from ECI's MES?

ECI's MES is not so much industry-specific, but process-specific. Its value lies in managing complex manufacturing environments that require detailed tracking, scheduling, and quality control across various manufacturing operations.

How long does it take to implement ECI's MES?

Implementing ECI's MES can vary, depending on the other systems you are implementing. Typically it can take between 6 to 12 months, with the timeline varying based on the complexity of the manufacturing environment, existing technological infrastructure, and the scale of the operation.