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MES – Manufacturing Execution System

The Key to Highly Agile Production?

Boris Ricken Michael WolfDario Fontana

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This paper highlights the added value an MES can have for industrial companies and the criteria to be considered when evaluating such a system. A comprehensive framework for a successful MES implementation is also unveiled with the conceptual "AWK MES Journey” road map, which can be used to deal with the wide-ranging choice of suppliers.

Enterprise resource planning (ERP) has become a well-established concept since the 1990's, and MRP (material require-ment planning) has been a familiar acronym since as early as the 1960's. The demands faced by the manufacturing in-dustry have intensified rapidly since the nascence of these two systems. Response times demanded by the market have narrowed considerably, while the diversity of product variants has increased enormously. If contemporary market re-quirements are to be adequately met by a manufacturing company, a complex production system must adapt to chang-ing environment variables as rapidly and flexibly as possible. These new challenges are practically impossible to master without real-time data from production and intelligent decision-making systems. The comparatively new concept of a manufacturing execution system (MES) addresses precisely this problem.

What is an MES capable of, and why should it be addressed?

An MES creates greater transparency and flexibility in the manufacturing industry Production based on ERP data frequently lacks the re-quired transparency and flexibility to adequately meet the requirements and growing demand associated with make to order. The latency of data updating in iso-lated silos dominating this does not facilitate any mon-itoring of the current production state during the shift.

As a dedicated system for plant control, an MES (also known as a production control system) acts as a link in the automation pyramid between ERP at company level and SCADA1) at process control level (Fig. 1), augmenting these systems in a targeted manner. The MES can be sup-plied several times a day with order information from the ERP, and takes charge of hitherto manual detail planning at shift level.

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ERP

MES

SCADA

Operational level

Corporate level

Update duration: Approx. 24 hrs

Data granularity: High level

Update duration: Hours

Data granularity: Workpiece level

Update duration: Seconds (fractions thereof)

Data granularity: Tool/Resource

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Process control level

10 MES modules conforming to VDI5600

Order management Detail planning and fine tuning

Resource management Material management

HR management Data acquisition

Performance analysis Information management

Quality managementEnergy management

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Figure 1: MES location/definition

1) SCADA: Supervisory control and data acquisition

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According to current surveys, a clear majority of 84% of major Swiss industrial enterprises with an ERP system regard the addition of an MES as the next logical step in digitization efforts2).Centrally managed master data on operation, machines and processes, as well as analysis through an advanced planning system, enable optimum real-time planning of workers and also operating media and materials for pending work orders. Closely synchro-nized data evaluation can reduce the failure risk potential and ensure traceability through process steps.

MES evaluation adapted to the situationThe available scope (providers, deployment methods, architecture, etc.) for an MES is extremely varied and sometimes overpowering. The ten MES modules defined according to the VDI 5600 standard (Fig. 1, page 2) on their own fulfill the most varied purposes and should be evalu-ated and assessed according to the situation. Only in this manner can the best solution be found for a plant.

While production costs fall, the introduction of an MES results in an increase in both equipment operating time and quality in the double digit percentage range.

If only individual MES modules are required, providers of microservices or modular system architectures should be considered. In contrast to a monolithic MES, the modules involved can be constituted individually and when need-ed from a variety of providers. This may pay off in terms of an overhead requiring fewer resources for SMEs, which, generally speaking, tend to have smaller IT departments. Deciding between on-prem and cloud variants depends heavily on the configuration, structure, and operation, which is why no generalized recommendation can be made. However, the cloud trend in the manufacturing industry is also evident in MES, with current analyses indicating that the proportion of cloud-based MES will almost double from 37% today to around 66% by 20233).

These are only a few of the symbolic decision-making cri-teria that need to be considered during evaluation of an MES. Each application case needs to be analyzed in detail and subjected to dedicated handling to achieve the best possible configuration. Fig. 2 illustrates a comprehensive array of aspects of different MES architectures to be con-sidered over two basic dimensions: data processing and structure. Shown below is a structured solution approach through the AWK MES journey, which can counter the aforementioned complexity.

2) https://www.bfs.admin.ch/bfs/de/home/statistiken/kataloge-datenbanken/grafiken.assetdetail.8486340.html

3) https://iot-analytics.com/cloud-mes-how-manufacturing-software-is-migrating-to-the-cloud/

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Structure

Familiar infrastructureAvailability

Investments in IT infrastructure

On Premises

Cloud

Monolithic Modular

Provider-dependent Outsourced

operation/maintenance Quicker introduction

Independent data access

Centralized MES Rigid structures

Simple architecture

Flexibility on a small scaleLow overhead

Scalability Independence

Figure 2: Just two of the numerous MES dimensions

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How does the successful MES concept function during the AWK MES journey?

The journey towards successful MES use in an industrial enterprise begins with recognition of the potential of an MES. The scope of application options and implementa-tion variations is broad, and MES design requires much more than just the selection of an appropriate tool. Even a high-quality MES cannot demonstrate its strengths without clear functional integration of the new system in the existing IT and process landscape and the required in-depth groundwork. As a newly introduced MES is typ-ically in use for several years, errors during planning and decision-making can have significant consequences.

The AWK MES journey (Fig. 3) recommends a holistic ap-proach that covers the design of the future system land-scape comprehensively, including the new MES. The MES layout is divided into a five-stage approach, with an explicit focus on functional design.

1. The process framework is initiated through discus-sion of the initial situation. A detailed analysis is performed of existing pain points and development potential (transparency, (in)efficiency, etc.), the ex-pectations of the new MES (familiar MES modules can serve as a basic orientation), and documentation which accurately describes how processes are actu-ally performed. Iterative application of the following

steps to the pain points identified is recommended to minimize risks during implementation.

2. The functional design of the future system and pro-cess landscape is the core element of the AWK MES journey. Specifically, the conceptual (functional) ar-chitecture of future processes is created, the data and functional landscape sought is outlined, and the data streams and interfaces arising from this are defined. These considerations should not only illus-trate what part of the MES should be depicted, but also, and in particular, what should not. Planning of the desired ICT landscape in production (cloud / on premises / hybrid) is part of this step. As production in a medium-sized enterprise often involves several transnational locations, numerous influencing fac-tors need to be considered in this process step.

3. The intensive preparatory work of the preceding steps is followed progressively by selection of ap-propriate MES software that meets the developed requirements. There is an extensive range of provid-ers on the market, and compilation of a condensed shortlist through intensive tool screening on the ba-sis of the criteria in Fig. 2 (page 3) can reduce con-siderably the selection effort. It is recommended

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Initial position Functional design

Pilot phase Rollout

Change management

Module portfolioTechnical architecture

Integration

System shortlistComparison

System selection

MESrequirements

System homogeneity

Pain points, overall process

(actual/target)

Classic MES consulting

Functional architecture

Iterative approach

MES selection MES configuration MES introduction

Data landscape

Data streams

Figure 3: The AWK MES journey for the successful introduction of a manufacturing execution system

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that a proof of concept be realized subsequently to identify potential complications at an early stage. It is further recommended that the effective realiza-tion step be applied iteratively to individual systems to minimize the implementation risks of a big bang.

4. Functional design is implemented technically in the new software and the MES is constructed accordingly during configuration. Integration in the existing sys-tem and process landscape is a decisive element in this step.

5. MES conception is concluded through the appropri-ate introduction. Large-scale rollout generally fol-lows in a successful pilot phase and is accompanied by carefully considered change management. The duration of an MES introduction should be clearly defined, and introduction should occur within the planned period. This period should, in general, not exceed 18 months if the costs arising are to be held in check4).

Successful design of an ME system should be executed in a considered and comprehensive manner to avoid lat-er conflicts. Of fundamental importance in this process is the understanding that an MES, ERP, BI tool, or PLM should not be thematically separated from each other, but rather illuminate different issues (e.g., inventory) from a variety of perspectives in a highly integrated manner.

What follows a structurally designed MES introduction?

The MES opens the door to industrial data analytics The careful introduction of an MES is far from the end of the digitizing efforts in a manufacturing company. More importantly, it represents further progress that opens wide the door to the world of applied data analytics and machine learning. Learning algorithms that can analyze a complex production system in real time and independently (co-)determine it require the prompt

availability of data, as finely granulated as possible. A modular approach to configuration of the required ana-lytical components is permitted by the IaaS (infrastruc-ture as a service) and PaaS (platform as a service) solu-tions and, where necessary, even facilitates complete outsourcing of data analytics from the actual MES soft-ware. This decision completely opens up the range of data analytics tools available. As a consequence of this, the system can also be adapted without difficulty be-yond the longer-term horizon to the respective needs and technical prerequisites of a production system. What may initially begin with more transparent trace-ability and improved product lifecycle management (PLM) can develop later into predictive maintenance applications and, given the appropriate conditions, even peak in a comprehensive and self-regulating digi-tal twin of the entire production system.

Outlook: MES as a step into the future A future-oriented industrial enterprise is faced with mul-tifarious challenges. These can be countered through a company-wide, sophisticated, and interdependent system architecture. Fig. 4 (page 6) illustrates a potential blueprint as a grid with the primary focus on an overall sustainable architecture for the future. It clearly demon-strates the central importance of an MES in horizontal and vertical integration. Exploitation of numerous en-abling technologies and the use of appropriate periph-eral systems mean that a highly agile production system can be the way to the future.

4) MES-Wissen Kompakt, TeDo Verlag GmbH [2020]

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Enabling technologies

Security Network Big Data Cloud…

…B2X platforms B2B gateways

Horizontal integration

ERP CRM …

MES …

PCS WMS …

PLC PAC …

RFID CPS …

Enterprise business services

Manufacturing operations management (MOM)

Process control (SCADA)

System control & field integration

Field devices & products

Supplier Customer

Figure 4: MES in the system environment of an industrial enterprise

Conclusion

When it comes to demands regarding response times and variant diversity, market requirements which the manufacturing industry needs to meet have increased dramatically in recent years. The manufacturing execu-tion system represents an ideal component that depicts these needs in production. An MES in the interface be-tween ERP and SCADA opens up a variety of starting points for achieving enhanced agility, flexibility, and transparency. These aspects offer added value right up to the end customer, who likewise benefits from im-proved traceability, shorter delivery times, enhanced quality, and a diverse product range.

The effects of an erroneous MES concept or even the conscious rejection of an MES probably only become evident in the medium term, but the consequences of

these can be significant. The wide variety of available MES constructs makes adaptation of such a system an option for practically every industrial company and spe-cific requirements. These diverse options when decid-ing on an MES require a thoroughly thought-out concept and introduction of the MES where the focus must be on the functional design of the planned system landscape. In addition to allowing an industrial enterprise to re-spond to modern market demands, an MES represents a deliberately chosen step towards embracing the future of digitization for data-driven production and applied machine learning.

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Your Contacts

Boris Ricken

Senior Manager

AWK Group AG

boris.ricken@awk.ch

Michael Wolf

Consultant

AWK Group AG

michael.wolf@awk.ch

Dario Fontana

Consultant

AWK Group AG

dario.fontana@awk.ch

About AWK

AWK Group is an independent, international ma-nagement and technology consulting company with offices in Zurich, Bern, Basel, Lausanne and Luxembourg. With over 400 employees, AWK provides guidance and support during the digital transformation of businesses in a variety of sec-tors, from development of the strategy to imple-mentation, all backed by an in-depth familiarity with the technologies of tomorrow. The services it provides extend from the development of di-gital business models and data analytics, cyber security and IT advisory to the management of complex transformation projects.

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