6 Reasons why integrating ERP with MES is vital | Blog | Objective

The key for manufacturers to transforming productions in applying agile manufacturing principles is to integrate ERP (Enterprise Resource Planning) into the Manufacturing Execution System (MES). By minimizing costs and maximizing the ability to respond to shifting customer demands quickly, even large manufacturing companies can optimize their entire production to react to the turbulence in the marketplace.

The ISA 95 framework is the international standard for integrating enterprise and control systems. According to the framework, the Manufacturing Execution System (MES) should be integrated with the Warehouse Management System (WMS) at Level 3. It interacts with ERP at level 4 and PLC and SCADA at level 2. The ISA 95 framework was created to reduce risk, cost, and errors. It facilitates a safe, cost-effective, and robust information exchange.

The Objective MES and WMS, ISA 95-compliant solution manages, monitors, and coordinates the execution of real-time physical processes from inventory receipt, to converting raw materials into finished goods, and then to the final customer. The system coordinates the execution of work orders with production scheduling and enterprise resource planning (ERP) and provides feedback on process performance and traceability, genealogy, and integration with process history.

By tightly integrating data related to all levels of production, communication, and warehousing, using Objective MES and WMS with ERP integration, resources can be managed more efficiently.

6 Reasons why integrating ERP with MES is vital

When ERP and MES systems are integrated, data from management functions such as customer service, order processing, finance and purchasing are integrated with data from manufacturing, such as production scheduling, machine throughput, WIP, inventory changes, shipped orders, and quality management. This results in gate to gate traceability and transparency to real time changes that current disparate processes could not capture.


Better customer service with gate to gate traceability

When product issues arise via customer complaints, the ability to trace each lot back to original parts and batches, or shared lots can allow for a swift resolution of customer issues. Tracing from inventory receipt, throughout production, through to which parts and ingredients were used can help management to quickly determine the scope of the issues and plan long-term or short-term resolutions.

Improve quality through data integration

Comprehensive quality assurance can be achieved through tight data integration. Defective products can be found quickly through MES’s product tracking, genealogy, and quality management. Via integration with ERP, the origins of the defects are quickly found and returned to the supplier. Other management practices can be applied by selecting the appropriate suppliers to source parts and dynamically optimize sourcing alongside manufacturing.

Improve the accuracy of demand forecasting

Managing inventory in uncertain times is difficult. Keeping too much or too little inventory can be costly. Delays in delivery schedules, production schedules can impact the integrity of the business. Consistency is key when it comes to demand forecasting. An integrated ERP/MES system allows the ERP software to forward changes in demand directly to production planning. This makes production volumes more responsive to demand and ultimately aligns expectations closer to forecasts.

Just-in-time (JIT) delivery

Just-in-time (JIT) Delivery not only enables quick fulfillment, but it also reduces the time inventories are kept at the warehouse. By integrating ERP with MES, work in progress inventory can be managed to react to changes. The ability to manage ERP schedules via production planning to incorporate the latest changes to production on the shop floor means that realistic expectations are set. Inbound inventory and outbound inventory’s visibility are dramatically increased to allow the success of Just-in-time (JIT) Delivery.

Whole business process modeling

Whole business process modeling involves taking new business processes and modeling them throughout the entire line of management, sales, customer services, operations, and manufacturing. In an integrated MES/ERP system, managers can shape each component of the business process tightly to ensure optimal implementation from the start. It eliminates manual processes and streamlines new processes. By consistently modeling new business processes, the organization becomes more agile to respond to market events.

Plant floor optimization through RFID

Radio-Frequency Identification (RFID) is a part of a category of progressive AID technologies that integrate into the ERP system as a factory floor control functionality. Its use has important implications for manufacturing automation into the future. It can complement existing MES genealogy tracking and provide visibility to work in progress, production sequencing, raw materials, and more. Through the use of RFID, an integrated MES/ERP system enables more productivity, transparency, and efficiency.

Objective International’s integrated MES/WMS solution, which has a standard link to over 25 ERP systems, can transform any organization into an agile manufacturing organization. With increased transparency, visibility, and accountability at each level of management, business, and manufacturing, the seamless exchange of data can become a core business advantage.

It’s easy to see how Objective delivers results. Our product demonstrations and onsite proof of concept trials can be handled outside of client locations, with no need for Objective employees to be on premises. Remote demonstration saves time, keeps your employees safe, and is just another way that Objective can help you navigate toward success.


Factsheet: 10 ROI gains from interfacing ERP with MES

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