MES Systems: Features and Benefits

Manufacturing execution system (MES) - a system for automating production and optimizing production activities, which in real time: initiates, monitors, optimizes, documents production processes from the beginning of the task to the release of finished products.

In Russian, instead of MES, the acronym APCS is often used - a system for collecting, transmitting, processing and displaying information about production processes in real time, aimed at ensuring automation of production.

According to the ISA-95 MES standard, the production automation system shall answer the following questions:

• How to produce? (definition of how to make a product)
• What can be produced? (definition of available resources)
• When and what to produce? (schedule definition)
• When and what was produced? (performance definition)

The MES system covers the following tasks:

• distribution and control of the status of resources (building a production model, centralized storage, quick and convenient search for data on the specifications of raw materials, semi-finished products, finished products, and packaging, supplier addresses, quality standards, legislative documents, etc.);
• dispatching of production processes (management of production orders, management of raw materials and semi-finished products, control of plan implementation, control of residues);
• data collection, quality management (data collection from PCS systems, verification of data quality and reliability, collection and archiving, long-term storage, laboratory data management);
• Maintenance management
• performance analysis (statistical and mathematical analysis, process performance control, TEI calculation, accounting of equipment operation and downtime, reporting);
• preparation of production schedules;
• document control (electronic document management);
• labor management (human resources management);
• coordination of technological processes and tracking of finished products.

Main functions of MES

• Monitor the status and allocation of resources.
• Efficiency and detail of planning.
• Production dispatching.
• Document management.
• Collect and store data.
• Manage personnel.
• Manage product quality.
• Manage production processes.
• Manage maintenance and repair.
• Trace product history.
• Analyze performance.

The functions performed by MES are operational in nature and regulate the relevant requirements not for the entire enterprise, but for its unit (workshop, site, department) for which work is planned. Of the above functions of this system, the main ones are operational scheduling (detailed planning) and dispatching of production processes in the workshop. Only these two functions define the MES system as an operational system, which is aimed at creating equipment schedules and operational control of production processes in the workshop.

Despite the fact that MES algorithms are based, in most cases, on heuristics, they tend to be much more complex than APS algorithms. First of all, the MES algorithm finds the necessary solution, taking into account all the restrictions and the selected criteria (private or integral). After that, at the optimization stage, a suitable schedule is found. The MES system receives the scope of work, which is either presented to ERP at the stage of volume scheduling, or issued by the APS system in the form of a workshop schedule acceptable to the enterprise, and in the future it builds more accurate schedules for equipment and tracks their implementation online. In this regard, the goal of the MES system is not only to fulfill the specified volume with the specified deadlines for the fulfillment of certain orders, but also to fulfill in the best way in terms of economic indicators of the workshop.

MES Operating Philosophy

• Operate production facilities;
• Track production facilities;
• Collect information related to production;
• Monitor and control quality parameters;
• Provide personnel and equipment with information necessary to start the production process;
• Establish connections between personnel and equipment within the production;
• Establish links between production and suppliers, consumers, engineering, sales and management;
• Apply measures in accordance with the requirements of the production nomenclature;
• Change the components, raw materials and semi-finished products that are used in the production process;
• Change product specifications;
• Availability of personnel and production facilities;
• Ensure compliance with applicable legal acts, e.g. Food and Drug Administration (FDA)

Benefits of MES

Thanks to the use of modern MES systems, it became possible to increase the speed of processing production orders almost twice as soon as the volume of work in progress decreased by 25%. Using MES allows you to create and adjust detailed production schedules in a timely manner, which in turn allows you to more accurately determine the actual production cost of each individual part and the entire product. A significant property of MES systems is the execution of schedules. APS systems built into the planning ERP loop make production schedules only if orders for new products or works are included in the portfolio, it is quite difficult to adjust them in real time, as a result of which the use of APS systems in small-scale production becomes a serious problem. In these cases, MES systems work more flexibly and quickly, recalculating and adjusting schedules for any deviations in production processes, which increases flexibility and dynamic production. MES systems are indispensable in small-scale and order-based production, while APS schedules are more suitable for large-scale production, where there are usually no sharp deviations from the production program due to the sustainable nature of production. This whole system ensures that you can maintain detailed material accounting, take into account equipment operation and personnel costs, collect, aggregate current production status data and transfer them to the planning system or ERP system. Makes it possible to form and quickly make corrections to production schedules taking into account external (for example, changes in demand) and internal factors (for example, delays in the receipt of raw materials); increase the efficiency of production dispatching; control the content and passage of documents that accompany the manufacture of products, the maintenance of planned and reporting workshop documentation, and much more. Market studies show that MES systems are adapted to numerous situations, defined as discrete (private) operations, batch (serial) and continuous production processes.

The theoretical advantages that MES systems can provide are obvious: in the case of discrete production, this is an increase in the efficiency of equipment and the ability to work on individual orders, and in the case of continuous - a transition from the Soviet control model to transparent production, making possible the concept of a "Real-Time Enterprise" (Real-Time Enterprise).

In practice, companies often have a equipment load of no more than 50% - the effectiveness of its use is not so relevant for them. Moreover, in the face of market uncertainty, long-term planning is not available to them, and the return on investment in MES is far from obvious. But the most important thing is the lack of a competitive environment, which should move enterprises towards modernization.

There is another, more mundane problem - the inadequacy of the proposed solutions to the current needs of companies. "Suppliers offer expensive cars instead of the bicycle we need - a product that is certainly of better quality, but with excessive functionality and an unacceptable price," Mikhail Reisner, director of IT at IEC holding, drew an analogy. Enterprises solve this problem in various ways, and primarily with the help of their own developments. For example, they did this in IEC, creating their own solution and integrating it with the accounting system on the 1C platform. Nevertheless, now the company has faced a choice: continue investing in its own development or try to solve emerging problems with the help of an existing solution on the market. The reason for this is the growing competition, mainly from Chinese manufacturers. The company has to increasingly navigate order production, and this requires the possibility of operational planning.

Another option is to develop the necessary functionality within the framework of the implemented ERP solution. However, almost the only advantage of this approach is the use of a single platform instead of disparate solutions. There are much more disadvantages, mainly this is a very significant cost of refinement - very few companies can afford such investments. In addition, an important difference between MES and ERP is that MES systems focused exclusively on production processes allow you to adjust plans as often as necessary. ERP has a lot of other tasks, so its ability to reschedule is extremely limited.

Finally, it is the use of the MES layer in the IT architecture that allows you to maintain a balance between enterprise uniqueness and the best global experience. Otherwise, you have to look for this compromise in the process of customizing ERP.

"For most Russian enterprises, the restructuring of production processes can be much more useful than the introduction of MES, and even ERP," emphasized the process immaturity of the domestic industry Zelenkov Yuri, director of information technology at NPO Saturn. Only in 2010, a turning point occurred at Saturn: a team was formed that began to promote the project of the production control system. At the same time, the new management model is implemented independently, and later it is planned to introduce a replicated solution.

"Implementing MES without changing business processes can do more harm than good," agrees Methane Gennady, MES architect at Sibur. In this case, instead of accelerating the processes, rather, on the contrary, they may slow down, which will result in negative consequences.

Another trend that leads manufacturers away from real problems is the introduction of lean manufacturing concepts, considered as an alternative to MES systems. Recently, quite a few such projects have been carried out, but only because their implementation seems easier to the management of enterprises. Meanwhile, production planning and lean production do not contradict, but complement each other. Lean manufacturing is, first of all, a change in the philosophy of the enterprise, and the implementation of MES is a change in the methods of working with information.

One of the few positive trends in the market is that the initiators of the implementation of MES are increasingly business leaders - people responsible for financial results. This means both a higher level of support for projects and a different approach to justifying them. Such changes, coupled with the growing managerial maturity of enterprises, are capable of becoming the main driver of this market in the coming years.

Integration with ERP

In order for the MES system to function efficiently in the enterprise, its close connection with corporate ERP is necessary . In the standard version, MES and ERP systems are connected in the following directions:

• Entry and generation of reference information (NSI)
• Production planning
• Production accounting
• Warehousing
• Sale

Market estimates

2024

The volume of the Russian market for production control systems for the year grew by 7.2% and reached ₽17 billion

The Russian market for production control systems in 2024 increased by 7.2% and amounted to ₽17 billion against ₽15,9 billion in 2023, while it is predicted to grow to ₽18 billion in 2025. The growth factors of the national market are the focus of enterprises to optimize production processes and increase productivity without losing the quality of products. The company IBS presented such calculations in November 2025.

According to experts, stable demand for MES class solutions allows global and domestic markets to develop at a fairly high pace, despite a slight slowdown. The Russian market for MES solutions lags slightly behind the world in terms of growth rates, but shows stable development dynamics.

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Фото: Freepik

In the period up to 2024, the global market grew by 9.7% annually, and in the next ten years it is expected to grow at 7.76%. The consumer segment of the global and national markets is similar - large enterprises in the production industries are interested in this class of systems.

By the beginning of 2025, there were 65 production management systems in the Unified Register of Domestic Software. 86% of them or 56 solutions were developed by medium-sized companies with up to ₽1 billion in revenue for 2024. The Russian market is similar to the world market in its highly competitive character.

A significant difference in market development trends is the type of placement of MES systems. Russia is dominated by the approach to their deployment within the corporate IT infrastructure, while cloud applications occupy an increasing market share in the world.

In Russia, cloud products include 3 out of 11 software products considered, while among foreign analogues - 7 out of 11. Among domestic vendors, professional developers prevail - 82.5% of companies whose development is indicated by the main activity in OKVED.

The remaining shares in equal proportions of 8.7% are occupied by companies with development as an additional OKVED code and enterprises of the real sector of the economy with their own development departments. In total, 63 copyright holders of MES solutions are registered in Russia.

The top 3 regions in terms of the number of developers include Moscow with 22 systems in the software register, St. Petersburg with 12 systems and the Sverdlovsk region with 6 solutions. The regional distribution reflects the concentration of technology companies in large industrial centers.

The leader in the implementation of MES solutions in the country is mechanical engineering with a share of 16%, which is due to the need of industry enterprises for accurate management of multi-stage production processes. The systems are in demand in the energy industry with a share of 12% and the oil industry with 11%.

In the energy and oil industry, uninterrupted operation, monitoring of equipment condition and dispatching of production processes are important. The chemical industry with a share of 9%, metallurgy with 8% and the gas industry with 6% are less actively used by MES.

The mining sector also occupies 6% of the implementation market. To a lesser extent, production management systems are used by enterprises of the military-industrial complex and retail - 4% each segment.

The maximum rise in interest in MES systems in the world was noted in 2019, while in Russia the peak of registrations of such products in the Register of Domestic Software fell on 2023-2024. Due to geopolitical factors, companies have taken up the replacement of foreign decisions.

Global Digital Process Management Platform Market Growth by 5.4% to $17.65 Billion

In 2024, costs in the global digital platform market for manufacturing operations management (MOM) reached $17.65 billion. For comparison, a year earlier, the volume of this market was estimated at $16.8 billion. Thus, growth was recorded at about 5.4%. This is stated in a study by Market Research Future, the results of which TAdviser got acquainted with in early June 2025.

IOM platforms help to increase the automation and transparency of production processes at various enterprises. Such systems perform a wide range of functions, including the collection and accumulation of data on product release, inventory status, labor costs, raw material consumption, component use and energy. In addition, IOMs allow you to generate schedules and reports on product production, optimize costs, etc.

One of the drivers of the industry, the authors of the study call the introduction of advanced technologies, including the Internet of Things (IoT), artificial intelligence and machine learning. These software tools enable real-time monitoring and predictive maintenance. AI algorithms improve decision-making processes, resulting in improved production efficiency and reduced downtime. Companies are increasingly using advanced MOM platforms not only to streamline operations, but also to create a digital ecosystem that integrates manufacturing, maintenance and supply chains.

The study says the COVID-19 pandemic has exposed weaknesses in global supply chains, prompting a surge in demand for sustainable manufacturing solutions. As a result, sales of IOM platforms increased. The development of smart factories and digital ecosystems further reinforces the need for advanced platforms to manage operations. Analysts also note that the Fourth Industrial Revolution (Industry 4.0) contributes to the increase in demand for IOM solutions. According to the World Economic Forum, about 78% of manufacturers will implement Industry 4.0 practices by 2035.

Geographically, North America retains its leading position in the global IOM market. This is due to the high level of technology development and the rapid introduction of innovations such as AI, IoT and cloud computing. Manufacturers in the United States and Canada are focused on improving operational efficiency, compliance and addressing labor shortages through automation. Against this background, investments in IOM platforms are growing. Europe holds the second largest market share, largely due to the region's commitment to sustainable and efficient manufacturing practices. EU regulations and environmental goals encourage businesses to invest heavily in digital platforms that help optimize resource use and reduce emissions of harmful gases into the atmosphere. At the same time, the Asia-Pacific region is demonstrating the highest growth rate, which is facilitated by the desire for automation and the growing complexity of production processes. Globally, the list of leading players includes:

• Dassault Systèmes;
• Siemens;
• Logical Systems;
• CamLine;
• SAP;
• ABB;
• Oracle;
• Parsec Automation;
• Aveva.

Market Research Future analysts believe that in the future, the CAGR in the market under consideration will be 10.9%. As a result, by 2035, costs could increase to $54.6 billion.^[1]

See also

c-MES

ERP

APS

Notes