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MES vs ERP?Why ManufacturersBenefit More from AnAlliance Than a Battlewww.solutionspt.com1

ContentsIntroduction01The Role of Enterprise Resource Planning (ERP)in Manufacturing02What a Manufacturing Execution System (MES)Brings to the Table03The MES in Action: Princes Group Case Study05Why MES with ERP is a Winning Combination06Why It’s Essential to Have the Correct MES Software08www.solutionspt.com2

IntroductionAs the Fourth Industrial Revolution (Industry4.0) gathers pace, manufacturers must facethe challenge of transforming digitally whilecontinuing to meet expectations regardingthe quality, price, and timely delivery of theirproducts.At a macro level, manufacturing organisationsmust make their installations smart enoughto help the business accurately predictrequirements, identify errors, and make themanufacturing process more manageable. Tothis end, organisations require systems withoversight which can monitor their assets toidentify, diagnose and prioritise impendingequipment problems – continuously and in realtime. Plant managers also need the capability toenhance the systems that they have in place toincrease operational efficiency.A facility may have multiple components andoperations to monitor and optimise. Traditionally,many organisations have looked to EnterpriseResource Planning (ERP) systems to managetheir enterprise operations. However, in a sectorlike manufacturing where continuous and realtime fine-tuning is often required to ensure peakperformance from operating machines and theoptimal quality of components and finishedproducts, ERP alone is not enough.In this publication, we shall explore the benefitsof deploying a Manufacturing Execution System(MES) for this granular level of productionmanagement. Plus the advantages of pairing anERP system with the MES – and the importanceof using the correct MES software solution incollaboration with a reliable implementationpartner.www.solutionspt.com01

The Role of Enterprise ResourcePlanning (ERP) in ManufacturingAs you’ll know, an Enterprise Resource Planning(ERP) platform consists of an integrated set ofsoftware applications which organisations canuse to manage business processes such as sales,purchasing, planning, human resources, finance,and accounting. By coordinating these activitieswithin a single platform, the ERP system actsas the central data repository and strategicplanning centre for the enterprise.Financial reporting and business forecastsare critical to ERP, and conventional systemshave a financial and business affairs focus. ERPsoftware typically contains tools and features tosynchronise reporting across departments, andfor integrating business processes.Due to its emphasis on strategic planning,executive level reporting is key to the ERPfunction. In the manufacturing sector, ERPsystems will typically provide information suchas how many products were fabricated over agiven time period, how much it costs to producea specific item, and the amount of materialthat went into the fabrication of a given set ofproducts. However, this information is generallygathered over a particular time frame, and thereports generated may have a time lag of days,weeks, or even months.Besides the fact that monitoring does not takeplace in real time, ERP is not directly related tothe production process. For plant managersand machine operators, Enterprise ResourcePlanning systems, therefore, have limitedrelevance and value on a day-to-day basis.www.solutionspt.com02

What a Manufacturing ExecutionSystem (MES) Brings to the TableDigitaliseCapture manufacturing processes andcollaborations and digitalise them using lowcode technology to transform how work is donein the plant.As you will also be aware, a ManufacturingExecution System (MES) is a software platformthat provides end-to-end monitoring ofindustrial production processes – from rawmaterials to finished products. By using anMES solution, organisations can maximise theprofitability, flexibility, quality, and compliance oftheir manufacturing process.MES software solutions aim at improving thequality, efficiency, and output of industrialoperations, while driving down productioncosts. Enhanced inventory management alsooptimises and streamlines the flow of materials,reducing lead times and improving the reliabilityof deliveries. Organisations deploying solutionslike AVEVA MES can therefore enjoy improvedoperational performance, optimal regulatorycompliance, transparency across the supplychain, and increased plant-to-enterpriseinteroperability.AVEVA MES takes a model-driven approachthat combines the benefits of a manufacturingexecution system with digital workflowmanagement technology. This infographicillustrates the principles underlying thisapproach to MES:StandardiseManage best practices, KPIs, productspecifications and compliance and safety databetween sites.ImproveContinuous improvement of processesbased on rich data collection with governedchange management.Image source AVEVABy aligning equipment and activities withhuman talent, industrial plants using AVEVAMES can experience improved gains in quality,productivity and compliance. MES provides plantmanagers with the ability to:Improve operational efficiency through amore visible manufacturing processCreate an inherently streamlined flow oforders and productionAnalyse and evaluate yield, quality, and theutilisation of plant resourceswww.solutionspt.com03

For multi-site operations, an MES works to increase transparency across production and orderfulfilment. This leads to better response times, and increased customer satisfaction. With aManufacturing Execution System implementation like AVEVA MES, production and process managerscan closely manage work order execution, and document manufacturing execution data and theflow of materials in real time. This empowers them to build products more accurately within thespecifications.AVEVA has a rich set of applications to support MES and value chain managementAs you may have experienced, it’s this realtime aspect of MES that makes it such aninvaluable tool for production managers, processmanagers, and operators alike. By keepingcloser track of each set stage of production withreal-time data at their fingertips, all operatorscan accurately and flexibly adapt order flowand production execution based on internal orexternal changes. Similarly, managers gain fromincreased visibility over the entire productionlifecycle, with additional capabilities such asevaluating yield and resource utilisation.With MES, organisations can monitor KeyPerformance Indicators (KPIs) in line with OverallEquipment Effectiveness (OEE) in real time.The MES platform can capture performancedata in an incredibly granular fashion, aiding incalculating OEE KPIs, and offering increasinglydynamic adjustments for any performancetargets you may have in place.By tracking work order execution throughMES, organisations can categorise unplanneddowntime, idle time, and product changeover(as well as planned events). All of the datacaptured by the system is actionable, timely andaccurate, coming straight from the source andallowing increased operational performance.In addition, by automatically capturingperformance data, an MES provides operatorswith new freedom from time-consumingmanual data capture.For the enterprise as a whole, MES providessystemic collaboration capabilities, escapingthe physical borders of a manufacturing site,spanning multiple locations. MES workflows,graphical modelling, real-time data capture andstandardisation make new digital processessustainable and, more importantly, reusable.www.solutionspt.com04

The MES in Action:Princes Group Case StudyAVEVA MES drives digital transformation for Princes GroupFaced with the challenge of modernisingfrom outdated, siloed paper-based systemsof production tracking and informationmanagement, food manufacturing giant PrincesGroup needed to adopt digital technologies thatmade a single version of the truth available forthe measurement, management, and control ofall operations data and equipment. To achievethese objectives, Princes collaborated withindustrial IT specialists and experts SolutionsPTin implementing AVEVA MES software to achievefull visibility of the entire production process atevery stage. They could now highlight historicperformance and provide the tools needed toimprove maintenance and tackle downtime.“The technology we have deployed has futureproofed our operations and positioned uswell to stay ahead of the curve of constantlyevolving consumer needs, habits, and,increasingly, environmental expectations offood suppliers. Adding or altering a productionline is no longer a time-consuming taskand the software and hardware agnosticcapabilities of AVEVA mean bringing in newOEMs is simpler than ever.”Princes Group is in the process of rolling outthe solution across all facilities and expect thebenefits to multiply as they build from theirnew, flexible, digital foundation. By reducing rawmaterial waste, improving OEE, and streamliningplant floor operations, the food and drink group isharnessing the potential of digital transformationto deliver against each of its performance targetsnow, and long into the future.www.solutionspt.com05

Why MES with ERP Is aWinning CombinationAs you know, formulating business strategiesand keeping an eye on the bottom line arecrucial activities for any commercial enterprise– and that includes manufacturing. It’s alsoimportant to have strategic oversight into thevarious operations which are critical to thebusiness.more than just a system that gives a “bird’s eyeview” of what is going on within the enterprise.Experience will tell you that productionmatters typically require decision-making andadjustments in real time – activities that thetime-lagged data gathering and reporting of anERP system simply cannot cope with.An Enterprise Resource Planning system canAs such, manufacturers also need a system that’sprovide manufacturers with this larger strategicview, and provide essential information foroperational and financial planning. Using anERP system can provide manufacturers withthe tools they need to streamline and optimisetheir inventory and supplier management, andprovide communications and collaborationfeatures that facilitate enterprise datamanagement, interdepartmental reporting, andadvanced operational planning.capable of fine-grained analysis at the detaillevel, along with real-time insight and reporting.A Manufacturing Execution System like AVEVAMES easily fits the bill. Working on machine andprocess information gathered from individualunits and data silos, MES software can conductquality and performance checks in real time. Itcan create notifications and logs for any issuesdetected, providing operators and managerswith the information they need to proactivelystreamline production processes and theflow of orders, resolve issues and bottlenecks,and maintain quality control and compliancestandards throughout.However, with much of the organisation’ssuccess dependent on activities taking place onthe production floor, manufacturers requireAn integrated approach to ERP and MESwww.solutionspt.com06