The Common ERP Misconception
There is a common misconception that ERP systems can effectively manage a complex plant-floor operation. In very simple bulk-manufacturing processes
where product complexity, product variability and change are extremely low and where just simple material tracking alone is required, then
ERP could provide a basic solution.
However, where there is product complexity, product mix, regular change together with a strategic focus on KPI improvements to cost, quality,
reduced leadtimes, etc; ERP does not come close to providing an adequate plant-management solution that will allow the organisation to
differentiate from its competitors.
Comparing ERP and MES systems is like comparing CRM and PDM systems; they are entirely different and are designed for completely different
tasks and purposes.
MES Drives the Manufacturing Process
MES systems drive manufacturing processes, capture every minutiae of detail, and then explain what it all means. They record operators, times,
defects, rework loops, inspections, starts and completions, and any other assorted ‘touch” that happens to the product as it passes through
the plant floor. This results in very deep and granular information which will allow management to answer questions such as:
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How close was the production to the plan?
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How good was the quality?
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What exactly went wrong?
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What (or who) exactly caused the problem?
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Which units were affected?
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How can we be sure it won’t happen again?
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What should we change in order to:
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Improve throughput by X%?
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Address this customer’s request?
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Respond to changing demand?
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Rapidly introduce new products?
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The Effective Plant Solution
Essentially, ERP systems do not have nearly the same number of ‘touch-points’ to the shop-floor processes as MES and therefore can
only represent a very limited solution. To summarise, an effective plant solution must:
- Accept the high volume of manufacturing data produced (on the order of 10 times the transaction load of ERP).
- Facilitate developing and deploying new processes and workflows as the production process changes or as new products are introduced.
- Provide operators with a quick, effective and enforceable means to interact with the system, not multiple cumbersome transaction screens.
- Capture complete unit history information, including parametric data captured from test equipment.
- Provide core functionality within a single system including process management, quality management, work instructions, resource management,
engineering change order management, repair, rework and testing.
- Must also provide data capture of all of the above with interfaces to machines, ERP and other necessary systems.
- Provide advanced manufacturing functionality such as operator certification, equipment maintenance, plant scheduling, events & alerts and so on.
- Include flexible reporting and analytic tools for production and quality personnel.
ERP vendors like Oracle partner with MES vendors (like Mestec) to extend the capability of their ERP systems and provide a ‘total’ manufacturing solution.