MES systems: functions and advantages

Manufacturing execution system (MES) is automation systems of production and optimization of productive activity which in real time: initiates, traces, optimizes, documents production processes from the beginning of task performance before finished product output.

In Russian instead of MES the abbreviation of ASOUP - the system of collecting, transfer, processing and information display about production processes in real time aimed at providing industrial automation is often used.

According to the ISA-95 MES standard the automation system of production should answer the following questions:

• How to make? (determination how to do a product)
• What can be made? (determination of available resources)
• When and what to make? (determination of the schedule)
• When and what was made? (determination of performance)

A MES system covers the following tasks:

• distribution and control of the status of resources (creation of model of production, the centralized storage, fast and convenient data retrieval according to specifications of raw materials, semi-finished products, finished goods, and packaging, supplier addresses, regulations of quality, legislative documents, etc.);
• scheduling of production processes (order management on production, management of raw materials and semi-finished products, control of accomplishment of the plan, control of a remaining balance);
• data collection, quality management (data collection from the PCS systems, quality check and accuracy of the data, collecting and archiving, long-term storage, management of laboratory data);
• management of maintenance;
• performance review (statistical and mathematical analysis, process performance control, calculation of TEI, time management of work and equipment downtime, creation of reports);
• drawing up production schedules;
• control of documents (electronic document management);
• human resource management (personnel management);
• coordination of technology processes and tracking of finished goods.

Basic functions of MES

• Monitor a status and resource allocation.
• Efficiency and detail of planning.
• Production scheduling.
• Management of documents.
• Collect and store data.
• Manage personnel.
• Manage product quality.
• Manage production processes.
• Manage maintenance and repair.
• Trace product history.
• Analyze performance.

Functions which are performed by MES have operational character and regulate relevant requirements not to all enterprise, and to that its unit (workshop, section, division) for which work planning is conducted. From above the listed functions of this system by the main – operational scheduling (detailed planning) and scheduling of production processes in workshop. Only these two functions define a MES system as an operational system which is aimed at formation of schedules of operation of the equipment and operational management of production processes in workshop.

In spite of the fact that algorithms of MES systems are based, in most cases, on heuristics, they it is, as a rule, much more difficult than algorithms of APS. First of all the algorithm of MES finds the necessary solution, considering all restrictions and the selected criteria (private or integral). After that, at an optimization stage, there is a search of the suitable schedule. A MES system receives the amount of works which or is provided to ERP at a stage of volume scheduling, or is issued by an APS system in the form of the schedule of work of workshop, admissible for the enterprise, and further itself builds more exact schedules for the equipment and traces their accomplishment in a foreground mode. In this plan the purpose of a MES system is not only accomplishment of the set volume with the specified terms of accomplishment of these or those orders, but also accomplishment in the best way in terms of economic indicators of workshop.

Basic provisions of work of a MES system

• Put production capacities in action;
• Trace production capacities;
• Collect information which is connected with production;
• Trace and control quality parameters;
• Provide personnel and the equipment with information necessary to start a production process;
• Establish connection between personnel and the equipment within production;
• Establish connection between production and suppliers, consumers, engineering department, sales department and management;
• Apply measures according to requirements of the nomenclature of production;
• Change components, raw materials and semi-finished products which apply in a production process;
• Change specifications of products;
• Availability of personnel and production capacities;
• Guarantee compliances to applicable legal acts, for example to regulations of Food and Drug Administration (FDA)

Advantages of MES

Thanks to the modern MES systems there was an opportunity to increase the processing speed of production orders almost twice against the background of decrease by 25% of volumes of work in progress. Application of MES gives the chance to make and to timely adjust detailed production schedules that, in turn, allows to determine more precisely actual cost of production both each separate part, and all product completely. Considerable property of MES systems is accomplishment of schedules. APS systems which are built in the planning circuit of ERP make production schedules only if orders of new products or works are entered to a portfolio to adjust them in real time quite difficult therefore use of APS systems in small-lot production becomes a serious problem. In these cases of a MES system work more flexibly and quickly, recalculating and adjusting schedules at any deviations of production processes thanks to what the flexibility and dynamism of production increases. MES systems are irreplaceable in small-lot and job order production while schedules of an APS system are suitable for productions more with the business lot nature of production where there are no sharp deviations from the production program, as a rule, because of the steady nature of production. All this system guarantees a possibility of conducting detailed material accounting, accounting of operation of the equipment and staff costs, collecting, aggregation of the operating state-of-health data of production and their transfer to schedule system or the ERP system. Gives the chance to create and to quickly make corrections to production schedules taking into account external (for example, the shift in demand) and internal factors (for example, delays of intake of raw materials); increase efficiency of scheduling of production; exercise control of contents and passing of documents which accompany production of products, maintaining planned and reporting shop documentation and many other things. Studying of the markets show that MES systems are adapted for the numerous situations defined as discrete (private) transactions, package (consecutive) and continuous production processes.

Theoretical advantages which are capable to provide MES systems are obvious: in case of discrete production this increase in efficiency of the equipment and an opportunity for work by individual orders, and in case of continuous – the transition from the Soviet management model to transparent production doing possible the concept of "the enterprise of real time" (Real-Time Enterprise).

In practice often the companies have loading of the equipment no more than 50% – the efficiency of its use is not so relevant for them. Moreover, in the conditions of market uncertainty long-term planning is unavailable to them, and return of investments into MES is not obvious. But the most important is a lack of competitive environment which should move the enterprises to upgrade.

There is also one more, ordinarier problem – inadequacy of proposed solutions to present requirements of the companies. "Suppliers offer expensive cars instead of the bicycle necessary to us – the product, certainly, is more better, but with excess functionality and the unacceptable price" — Reysner Mikhail, the director of information technology of IEK holding drew an analogy. The enterprises solve this problem by different methods, and first of all using own developments. For example, acted in IEK this way, having created own solution and having integrated it with the accounting system on the platform of 1C. Nevertheless now the company rose before the choice: continue investments into own development or try to solve the arising problems using the solution existing in the market. The growing competition is the reason of it, mainly from the Chinese producers. The enterprise should be guided more and more on job order production, and the possibility of operational planning for this purpose is required.

Other option is development of necessary functionality within the implemented ERP solution. However nearly use of a single platform instead of separate solutions becomes the only advantage of such approach. It is much more minuses, generally it is very considerable cost of completion – very few companies are able to afford such investments. Besides, the important difference of MES from ERP is that MES systems focused only on production processes allow to adjust plans as often as it is necessary. The mass of other tasks therefore its opportunities for replanning are extremely limited is assigned to ERP.

At last, use in IT architecture of a layer of MES allows to save balance between uniqueness of the enterprise and the best world experience. Otherwise this compromise should be looked for in the course of customization of ERP.

"Restructuring of production processes can be much more useful than implementation of MES to most the Russian enterprises, and even to ERP" — Zelenkov Yury, the CIO of NPO Saturn emphasized process immaturity of the domestic industry. Only in 2010 on Saturn there was a change: the command which began to advance the project of a production management system was created. At the same time the new managerial model is implemented independently, and already afterwards is going to implement replicated solution.

"Implementation of MES without change of business processes can do more harm, than advantage" — Methane Gennady, the architect of MES of Sibur company agrees. In this case instead of acceleration of processes there can be, on the contrary, their deceleration rather that will turn back negative effects.

One more trend which is taking away production workers from real problems is implementation of the concepts of lean production which are considering an alternative to MES systems. Recently very many similar projects are performed, but only because their implementation seems to the management of the enterprises simpler. Meanwhile production planning and lean production do not contradict, and supplement each other. Lean production is, first of all, a change of philosophy of the enterprise, and implementation of MES – change of methods of work with information.

One of the few positive trends in the market is that business heads – the people who are responsible for financial results become initiators of implementation of MES even more often. It means both higher level of support of projects, and a different approach to their justification. Similar changes, together with the growing managerial maturity of the enterprises, are also capable to become in the next years the main propulsion unit of this market.

Integration with ERP

In order that MES a system qualitatively functioned at the enterprise its close connection with corporate ERP is necessary. In standard option of MES and the ERP system connect in the following directions:

• Input and formation of the normative reference information (NRI)
• Production planning
• Production accounting
• Inventory control
• Sale

See the same

c-MES

ERP

APS