Why are factory managers all implementing MES systems? What benefits can it bring?

Manufacturing companies are facing intense economic and competitive pressures: shrinking profits, tighter delivery deadlines, shorter production cycles, and increasingly stringent product process requirements. 

Most companies have already implemented ERP systems, so they may wonder: "We already use ERP, why do we need an MES system?" 

1. Problems Addressed by MES for Manufacturing Enterprises

A Manufacturing Execution System (MES) is a production information management system aimed at the execution level of manufacturing enterprises' workshops. MES provides enterprises with management modules including manufacturing data management, planning and scheduling management, production scheduling management, inventory management, quality management, production process control, underlying data integration analysis, and upper-level data set decomposition. It creates a solid, reliable, comprehensive, and feasible collaborative management platform for manufacturing.

1. Issues Resolved by MES？

The answer is a standardized and modular MES! It acts as a coordinating information system, providing transparency into production shop floor information that is often lacking in ERP systems. Additionally, it offers a reliable data interface connecting upper-level management systems (e.g., ERP) with the lower-level workshop (operation terminals and equipment). 

Here are some specific problems that MES can address for manufacturing enterprises：

① When a customer complaint arises, can you trace all production process information based on the product number? Can you immediately identify the raw material supplier, operating machine, operator, process steps, production date and time, and key process parameters?

② When assembling multiple product models on the same production line, can you prevent worker assembly errors, product production process errors, and product mix-ups?

③ What were the 5 most frequent product defects on the production line in the past 12 hours? What are the quantities of each defective product?

④ Inventory Visibility:What are the quantities of each product currently in the warehouse, as well as in the pre-process, mid-process, and post-process lines? Which suppliers are they for, and when can they be delivered on time?

⑤ How much time is the production line and processing equipment actually producing, and how much time is spent on downtime and idling? What are the main reasons affecting equipment production potential: equipment failure, scheduling errors, untimely material supply, insufficient worker training, or unreasonable process indicators?

⑥ Can you automatically statistically analyze product quality inspection data, accurately distinguish between random fluctuations and abnormal fluctuations in product quality, and eliminate quality hazards in the bud?

⑦ Can you eliminate manual reports and automatically calculate the production quantity, pass rate, and defect codes for each process?

By reducing negative process influences and continuously monitoring your results, the entire process can be improved to the greatest extent. This will translate into improved utilization, power, and efficiency, reduced production costs, gradually increased production efficiency, and ultimately higher profits! 

2. Specific Benefits of MES Systems for Enterprises

Modern enterprises strive for lean manufacturing, a production philosophy aiming to minimize resource waste and maximize output with minimal input. It also emphasizes responding to market demands with optimal quality and minimal cost. MES (Manufacturing Execution System) is an essential environment for implementing lean manufacturing. To achieve this, MES must monitor, control, analyze, and provide statistics on all details of each production stage in real-time, which constitutes its core functionality.

Specific benefits of MES systems for enterprises include：

① Accurate grasp of production status:This leads to improved delivery accuracy, streamlined internal logistics and distribution, and achieves better coordination between production, supply, and sales.

② Precise control of work-in-progress (WIP) inventory and defective product tracking:This results in reduced production costs for WIP items. 

③ Product traceability using barcodes and RFID:By collecting complete data and process quality information, after-sales service levels and customer satisfaction are enhanced. 

④ Timely response to quality issues:Tracking quality history records leads to improved product quality.

⑤ Reduced manual data collection and reporting:This improves the productivity of on-site management personnel.

⑥ Comprehensive understanding of tool and equipment usage:** This enables the efficient utilization of manufacturing resources.

Originating from the fundamental management needs of factory managers, MES adopts a brand-new design concept. Based on a B/S (Browser/Server) architecture, it allows for easy deployment with minimal reliance on basic data and low requirements for the initial management level of the enterprise. The system is simple and easy to operate, supports user-defined industry customization, and offers personalized system integration solutions. 

MES promotes the adoption of lean manufacturing models within enterprises. Through data analysis, it aims to achieve continuous improvement in lean management. Ultimately, it empowers factory managers to easily and scientifically control production dynamics from their keyboards. 

二、Five Reasons Why ERP Needs MES System Functionality

In most manufacturing companies, the primary costs within the production value chain are not reflected in a detailed and transparent manner. Moreover, the target data for many production areas, typically maintained in ERP systems or spreadsheets, are often based on assumptions or past experiences. 

The shop floor itself has limited IT systems, which are usually focused on machine control and automation. In cases where IT systems are absent, additional personnel and time are required for unnecessary communication, coordination, inquiries, and phone consultations, leading to excessive documentation, delays, and search efforts, ultimately increasing costs. This gap between higher-level management systems (ERP, spreadsheets, etc.) and the lower-level shop floor environment results in inefficiencies and additional costs, ultimately hindering the overall company performance. 

1、Our production line frequently encounters the following problems:

① Reliability:How reliable is the feedback data from the workshop (equipment running time, downtime, production capacity, reasons for scrap, utilization and production efficiency, effectiveness, etc.)?

② Data Latency:What is the delay between the underlying workshop data feedback and the data recognition of the higher-level ERP system?

③ Labor Cost Identification:What are the actual labor costs (man-days, man-hours) that need to be provided to the upper-level ERP system?

④ Delivery Time Issues:Why do we still have so many delivery time problems, even though we are not yet running at full capacity?

⑤ Profitability Concerns:Why are we not achieving the expected profits, despite full production and our best turnover? 

2、Five Reasons Why ERP Needs MES System Functionality:

① ERP is not a Shop Floor Level Product

While ERP systems do include production execution functionalities, no current ERP system can update in real-time with every single unit produced. The interpretation of "real-time" differs between shop floor systems and ERP systems: ERP interprets it from a typical enterprise strategic management perspective, while MES systems focus on the real-time concept of the production process. A production system needs to seamlessly integrate as a whole to meet the ever-changing needs of customers, regulatory agencies, suppliers, and internal employees. This clearly aligns better with the MES concept.

② Small Changes in ERP Create Big Impacts

The impact of policy and market changes at the ERP level is almost ten times greater than changes at the production level. Therefore, a dedicated production system should be built to manage changes in output and production speed during the production process.

③ ERP Provides Different Information than what Production Personnel Need

Employees with different needs not only require different information but also need it presented in different ways. Traditional ERP project interfaces are designed for analysts and decision-makers. In production departments, where changes occur more rapidly, these changes should be presented more quickly. During the production process, outdated static data is not typically analyzed; instead, the focus is on analyzing ongoing information and trends. Different positions require different types of information, and the system should present it accordingly.

④ The Supply Chain Needs to be Integrated at a Strategic or Business Level and Above

Today, competition between companies is no longer just between two companies but between two supply chains. This means that improving efficiency requires improvements not only at the strategic or business level but across the entire supply chain. Information integration can only begin by integrating at all levels starting from the shop floor. Only with a timely and accurate flow of information can the supply chain operate efficiently.

⑤ ERP Knows "Why," MES Systems Know "How"

The former is used for strategy formulation, while the latter is for operational aspects. Those who know "how" work for those who know "why," and those who know "why" need those who know "how" to implement their ideas. This is a crucial interdependent relationship. 

三、Collaboration and Division of Labor between MES and ERP Systems

Manufacturing Execution Systems (MES) optimize production management throughout the entire process, from order placement to product completion, through information transmission. When real-time events occur in the factory, MES can respond and report promptly, guiding and handling them with current and accurate data. This rapid response to status changes allows MES software to reduce non-value-added activities within the enterprise, effectively guiding the factory's production operations. As a result, it improves on-time delivery capabilities, enhances material flow performance, and increases production returns. Additionally, MES systems provide mission-critical information about product behavior within the enterprise and throughout the entire product supply chain through direct, two-way communication. 

Comparing ERP and MES Based on Division of Labor。Here's a comparison of ERP and MES systems based on four key aspects: scope of management, objects of management, content of management, and management timeliness. 

1. Scope of Management: ERP systems manage the entire business of an enterprise or group of enterprises. In contrast, MES focuses on the workshop or production plant. Even the most comprehensive MES systems only offer a narrow view for the entire enterprise, lacking the breadth and depth of data needed for management and decision-making at higher levels.

2. Objects of Management: ERP manages the entire operational resources of an enterprise, including human resources, finances, and materials. It emphasizes the unification of logistics and capital flow, known as "business-finance integration." MES, on the other hand, focuses on production site resources such as equipment, processes, and materials.

3. Management Content: ERP manages the entire internal value chain and supply chain of an enterprise, including sales, procurement, production, inventory, quality, finance, and human resources. It emphasizes the integration of all these businesses and the coordination and control of plans (sales plan, production plan, procurement plan, etc.). MES mainly manages production execution, including production quality, production scheduling, and production performance feedback.

4. Management Timeliness: ERP manages plans and businesses over broader timeframes, such as years, quarters, months, ten-day periods, weeks, or days. Due to the need for production site control, MES management is more detailed, down to the day, shift, and hour. Under the guidance of long-term plans generated by the ERP system, MES uses real-time production data collected from the underlying control system to perform short-term production scheduling, monitoring, resource allocation, and production process optimization. 

四. Introduction to Huidu MES System

The MES system is highly industry-specific, making it crucial to choose a provider with rich industry experience and advanced management concepts. Huidu Technology, with 17 years of deep cultivation in the manufacturing industry, possesses mature industry experience and sophisticated solutions. Huidu offers enterprises a modular MES system developed on a B/S or C/S architecture, encompassing core functionalities like warehouse management, production planning, process management, production management, quality management, equipment management, early warning management, and KPI decision analysis. This system helps enterprises address traceability, production control, and enterprise-level system integration issues, ensuring the simultaneous fulfillment of cost, quality, and delivery objectives. 

Furthermore, Huidu's MES solution is built on an independently developed platform, allowing enterprises to easily conduct secondary development to meet their unique needs. This reduces the cost burden associated with changing requirements for manufacturers, enabling enterprises to achieve intelligent transformation and upgrading with the lowest technical threshold, minimal cost, and reduced risk.