What is the Difference Between MES and ERP?

What is the Difference Between MES and ERP?
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Enterprise Resource Planning (ERP) and Manufacturing Execution System (MES) are two software modules required for the seamless operation of a business, particularly one spread across several locations. With the introduction of Industry 4.0 and the digital integration of all the facilities of the enterprise, the importance of ERP and MES has become more and more obvious.

Enterprise Resource Planning (ERP) and Manufacturing Execution System (MES) are the two software modules essential for the smooth functioning of an enterprise and specifically for enterprises spread over global locations.

With the implementation of Industry 4.0 and the digital integration of all the facilities of an enterprise, the importance of ERP and MES has become more prominent.

What is MES? What Are Its Features and Benefits?

What is MES?

Manufacturing Execution System or MES is a software module or system that can effectively propel complete manufacturing operations and workflow on the shop floor to execute and manufacture the scheduled products with high quality, productivity, and low time consumption. The MES system ensures that quality and efficiency are built into the production process and the implementation of the product specifications.

The MES system is integrated with the complete machinery and equipment on the shop floor, including assembly and testing, in continuous communication with all these facilities to track the production processes in real time.

MES is an inclusive and comprehensive system that monitors all the shop floor activities and enforces process requirements. The core functions of an MES system are real-time data collection, scheduling, management of resources and staff, management of the process, management of documents, and analysis of the performance.

Features of MES

MES collects real-time data to monitor and coordinate the production activities of the enterprise across its global production facilities and links them in real time for both visibility and management. This results in overall visibility, control, and optimization of manufacturing facilities across the enterprise.

MES keeps track of the products, and the details of customer orders on the shop floor, providing full control of production processes. It gives you real-time feedback required to identify and resolve the issues related to the continuous improvement of products and processes to optimize the production processes.

MES highlights any nonconformities or exceptions. The management has full control over the manufacturing processes and can make operational and strategic decisions based on real-time facts and data.

Benefits of MES

Implementation of MES gives both short-term and long-term benefits and also strategic benefits:

  1. Compared with human resources, MES with precision data helps achieve proactive standardization and enforcement of production processes across all the production facilities, thus achieving better quality control.
  2. MES provides real-time data visibility and monitoring control to the management across the manufacturing supply chain, making the manufacturing management more aligned, which is not the case with human resources.
  3. MES helps diagnose root causes of problems with traceability and also resolve issues with workable solutions that are more effective and intuitive than traditional methods.

What is ERP? What Are Its Features and Benefits?

What is ERP?

Enterprise Resource Planning or ERP is a software system that standardizes different processes of the enterprise and integrates finance, supply chain, human resources, sales and marketing, inventory system, distribution, etc. Usually, an ERP system operates on an integrated software platform using different common data that are adopted on a single database.

A normal business enterprise has many departments and business units at multiple and global locations. These departments communicate with each other and exchange data. The success of an enterprise depends on effective and timely communication and exchange of data internally among the departments and business units and externally with the customer, vendors, and other stakeholders. This system is known as a decentralized system and exists in an enterprise that does not have ERP. Such a system leads to data duplication, delay or wrong communication, and loss of business to the enterprise.

In an ERP system, the data is maintained at a centralized location and can be accessed by all the concerned departments. Each department has access to the data of other departments and business units. The ERP empowers the managers with information to make timely decisions and get more business to the enterprise.

The major reason for adopting an ERP system is to integrate financial information, customer order information, standardize and speed up operations processes, standardization of human resources, and inventory reduction.

Features of ERP

ERP is a system for managing all the resources of the enterprise spread globally and their use in the entire enterprise in a well-coordinated manner. ERP integrates the functions of planning, financing, supply chain, manufacturing, sales, and marketing of an enterprise into one management system.

ERP unites all the databases across the departments of the enterprise and integrates them into a single database, and this data is accessible to all the enterprise employees. ERP converts the centralized data into reports and visions that can be used by the enterprise to reallocate its resources and to make good use of new market opportunities.

The ERP system automates order processing, invoicing, HR systems, payroll, inventory management, etc., and helps track materials from vendors.

Benefits of ERP

The benefits of an ERP system include but not limited to:

  1. Eliminates duplication and redundancy of data.
  2. Provides timely data across all departments and business units.
  3. Empowers management with control over business processes.
  4. Better productivity, better inventory control, better quality, reduced material cost, and increase in profits.
  5. Better interaction with customers and vendors, improved customer satisfaction, and performance improvement.

The Difference Between MES and ERP Systems

FunctionThe ERP module normally concentrates on finance, inventory, customer relations, customer orders, and supply chain.The MES module concentrates on the activities and processes on the shop floor to ensure the targeted progress of customer orders.
Collection and sharing of data.The ERP module analyzes the collected data and furnishes reports periodically, and the period can be hourly, daily, weekly, monthly, or yearly.The MES module is integrated with all the pieces of equipment on the shop floor and communicates with them continuously, and can furnish real-time data on demand.
Integration of the systemThe central ERP software module is integrated with the software modules of every department in the enterprise and stores and uses the data to generate reports.The MES module is integrated with the sensors of every piece of equipment on the shop floor and can communicate with it.
Distribution of work between ERP and MESERP software modules combine production, supply chain, inventory, human resources, finance, customer relations, etc. ERP concentrates and works on daily, weekly, and monthly frameworks.MES is a software module driving manufacturing operations on the shop floor by managing and reporting the activities on the shop floor on a real-time basis. The working timeframes for MES are day, working shift, hour, and minute and every moment.
Support systemMES is designed to operate continuously throughout the day and week to support the shop floor. ERP is not designed for this function.
Period of implementationThe period of implementation required for ERP normally exceeds 12 months, whereas MES can be implemented in less time comparatively.
Cost of implementationThe implementation cost of ERP can be three or more times more than that of MES

Enterprises, where MES and ERP software modules are integrated, can enforce MES to share the shop floor data (progress of customer orders, shipping information, etc.) with ERP. Simultaneously, ERP helps to keep the top managers informed on the shop floor activities. This combination generates powerful interaction, which achieves the maximization of management efficiency.

YGLWORLD can provide Enterprise Resource Planning (ERP) and MES access solutions to almost every industrial sector, including construction machinery, logistics, injection molding, and textile machinery. If you also want to benefit from our services, please feel free to contact us at: www.yglworld.com

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