Where ERP Falls Short: The Case for MES

An Enterprise Resource Planning (ERP) system is often thought of as the only system needed to manage and automate the back office functions of an operation. But, truly effective use of ERP software requires an integration of a number of tools that oversees all facets of an operation: product planning and costs, product development, HR, manufacturing, sales, marketing, inventory management and distribution. One important tool is a Manufacturing Execution System.

ERP is the central, integrated repository of a manufacturing organization's institutional memory and its transactional database. The discrete pieces of information in the database regarding the production cycle are collected by a Manufacturing Execution System (MES). The two systems work together to accomplish major objectives.

You can look at it this way: ERP creates and manages a basic plant schedule and focuses on analysis of this plan against what actually happened in the past. Therefore, the ERP overview applies to longer time horizons such as months, weeks and days. It is the macro view of an operation that looks down into and organizes the details. MES, on the other hand, drives the manufacturing operation in real-time -- examining what is happening on the shop floor in minutes, hours, and shifts. It is the micro view that collects data on every aspect of the manufacturing process, such as alerting floor supervisors in real-time of missed opportunities or problems on the floor.

Let's take a look at the value MES brings to an operation:

• Exception management: Real-time notifications of issues and exceptions, providing the opportunity for supervisors to correct deficiencies during a shift
• Capture of pertinent production data: Customized lists of important data that interface with the ERP system
• Crystal-clear plan progress: Run-time data on what has been completed and what remains to be accomplished
• Ensures product quality with data transparency:The unbiased facts of events taking place during the manufacturing process are easily reviewed

Both ERP and MES are reactive systems, responding to what has happened in the past. To add an additional, proactive, tool that integrates into and adds value to the ERP system, an Advanced Planning and Scheduling (APS) module can be considered. Designed to optimize the scheduling process, APS takes input from various departments, compares them, and offers the manager an opportunity to create simulation models and projections.