Manufacturing operations management delivers critical MES value to manufacturers Manufacturing execution systems (MES) have been used by manufacturers since the 1990s. Although the level of adoption of this technology has varied dramatically depending on the region and industrial sector, most companies have started to acknowledge the need for implementing an MES system. However, it is not easy to quantify the benefits and justify the return-on-investment (ROI) relative to other technology investments. This white paper describes what type of benefits manufacturers can expect to realize by adopting an MES, and provides perspective on where it should fit within the priorities of leading manufacturers.
A white paper issued by: Siemens PLM Software
www.siemens.com/mom
White paper | Manufacturing operations management delivers critical MES value to manufacturers
Contents
Executive summary.............................................................3 Increasing visibility.............................................................4 Reducing time-to-market....................................................5 Cutting costs.......................................................................6 Increasing productivity.......................................................7 Improving quality...............................................................8 Complying with regulations................................................9 Conclusion........................................................................ 10
A white paper issued by: Siemens PLM Software
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White paper | Manufacturing operations management delivers critical MES value to manufacturers
Executive summary The evolution toward the more global concept of manufacturing operations management (MOM) and the boom in Industry 4.0 and digital factory initiatives have greatly contributed to the increased implementation of MES/MOM systems. Today’s approach is a more holistic concept, which is not only focused on production execution, but also on advanced planning and scheduling, quality management and intelligent reporting. There are several causes for the late adoption of MES in some industries. We think the main one is the difficulty manufacturers have justifying the initiative and calculating the ROI. Although manufacturers can easily quantify the payback for purchasing a new machine or production line, MES/MOM benefits are more global in nature, interrelated with the
A white paper issued by: Siemens PLM Software
overall effectiveness of the manufacturing operation. Without good baseline metrics or benchmarks, the impact is difficult, if not impossible, to calculate. Since there is little documentation and few references on what manufacturers have achieved, there is no easy way to clarify the benefits of MES. Therefore, we think it’s a good idea to detail some of the key advantages you can expect to receive if you decide to put an MES/MOM system in place:
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White paper | Manufacturing operations management delivers critical MES value to manufacturers
Increasing visibility One functionality that is commonly expected when implementing a MES/MOM system is bi-directional vertical integration. The MES/MOM establishes interfaces with enterprise systems, such as enterprise resource management (ERP) and product lifecycle management (PLM), and with the machines or devices that control the shop floor. This creates enhanced visibility and process transparency for the
A white paper issued by: Siemens PLM Software
manufacturer. Everyone has real-time access to information that is relevant to her/his position on the state of production processes at any time and from any device. Rapid detection of deviations from the standard allow appropriate corrective actions to be taken in a fast and efficient way.
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White paper | Manufacturing operations management delivers critical MES value to manufacturers
Reducing time-to-market Companies face a scenario in which product complexity and variability continuously increases, while time-to-market is expected to be shorter than it was yesterday. MES/MOM systems help deal with these challenges, as they minimize the transition from development to production while having the flexibility to manage a large number of products efficiently.
A white paper issued by: Siemens PLM Software
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White paper | Manufacturing operations management delivers critical MES value to manufacturers
Cutting the cost of goods sold Most companies look forward to operating in a partially or fully paperless manufacturing environment when they decide to implement an MES/MOM. Paper forms used during production processes are replaced by more efficient, smarter processes that have easy-to-use interfaces. Because that can be achieved relatively easily and rapidly, reporting mistakes are minimized and data are immediately available, enabling operators to spend more time on production or quality tasks and less time on filling endless templates.
A white paper issued by: Siemens PLM Software
Going paperless is just one of the examples of how MES/MOM can help reduce the cost of goods sold (COGS) as, in general, these systems contribute to optimizing the number of people in the lines and eliminating activities with no added value.
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White paper | Manufacturing operations management delivers critical MES value to manufacturers
Increasing productivity MES/MOM systems usually have a module designed to collect information about machine stop and run times. This information, which can be retrieved automatically or inserted manually, is combined with the production counters (good units, rejects, scraps, etc.) and used to calculate ratios or key performance indicators (KPI). This enables the user to monitor the degree of availability, performance and quality of the processes. One of the most used KPIs is overall equipment effectiveness (OEE), which gives us an overall indication of the effectiveness of a machine or a production line. By monitoring the trend in these indicators and analyzing them in a contextualized way (type of product, shift, operator, etc.), we can detect the main bottlenecks and inefficiencies in the factory.
A white paper issued by: Siemens PLM Software
This intelligence allows manufacturers to establish a plan with improvement actions based on accurate and reliable data. From our point of view, it’s not so important to achieve a specific value for OEE or any other ratio, but to measure the assets objectively and improve the values over time.
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White paper | Manufacturing operations management delivers critical MES value to manufacturers
Improving quality Although it’s true that quality processes have been incorporated into the scope of MES/MOM systems relatively recently, this adoption has meant a substantial improvement in operational procedures and plant interoperability. We no longer refer to decoupled quality systems and procedures working in an independent way in parallel with the production environment, but rather to them working in an integrated, collaborative way. Increasingly, production operators are more involved in quality management and the information flow between the factory and laboratory, which must be fast, reliable and flexible.
A white paper issued by: Siemens PLM Software
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White paper | Manufacturing operations management delivers critical MES value to manufacturers
Complying with regulations Depending on the industry sector, there are country-specific or worldwide regulations that must be followed. MES/MOM systems are excellent platforms for fulfilling regulatory requirements, as they provide the tools to implement controls and document processes and test measures. For example, the United States Food and Drug Administration (FDA) requires the tracking of traceability and genealogy systems for material lots.
A white paper issued by: Siemens PLM Software
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White paper | Manufacturing operations management delivers critical MES value to manufacturers
Conclusion Although this white paper has focused on global benefits that are common to every industry sector, we want to stress there are specific advantages for any given sector. We hope this white paper will provide a guide for manufacturers who are considering an ROI study in order to justify implementing an MES/MOM system.
A white paper issued by: Siemens PLM Software
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White paper | Manufacturing operations management delivers critical MES value to manufacturers
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About Siemens PLM Software Siemens PLM Software, a business unit of the Siemens Digital Factory Division, is a leading global provider of software solutions to drive the digital transformation of industry, creating new opportunities for manufacturers to realize innovation. With headquarters in Plano, Texas, and over 140,000 customers worldwide, Siemens PLM Software works with companies of all sizes to transform the way ideas come to life, the way products are realized, and the way products and assets in operation are used and understood. For more information on Siemens PLM Software products and services, visit www.siemens.com/plm.
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A white paper issued by: Siemens PLM Software
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