From better scalability to integrated data management – there are numerous advantages to having Manufacturing Execution System software as a cloud-based solution. Read more from our latest blog post. #mrpeasy #datamanagement #manufacturingexecutionsystem #manufacturingsoftware #manufacturing #mrpsoftware #mrpsystem #erpsystem #cloudbasedsolution

1. MANUFACTURING EXECUTION
SYSTEM SOFTWARE AS A
CLOUD-BASED SOLUTION

2. From better scalability to integrated data management – there are numerous
advantages to having Manufacturing Execution System software as a cloud-
based solution.
As automation increases through the introduction of new technology such as
Industry 4.0 and other initiatives, companies continuously look for ways to
improve productivity, manage production workflow, and capture higher
efficiencies.
Many companies utilize ERP systems to capture transactional data and
standardize information across the company.

3. Likewise, they may also implement process control software on a specific basis
to improve throughput and efficiency.
Between these two tiers of software are programs such as Manufacturing
Execution Systems (MES) that operate between the higher-level ERP and floor
level process control mechanisms to interpret data to provide real-time
workflow visibility, flexibility, and insights into manufacturing operations, and
provide a path to improvements.

4. An MES is a data and information system that helps companies uncover solutions to
optimize and improve manufacturing operations.
An MES connects, monitors, and controls the data flow within manufacturing as it occurs on
the factory floor.
Its goal is to effectively execute manufacturing operations while improving production
output.
Because it tracks and gathers data in real-time, information about the production cycle from
order release to delivery can be leveraged for process improvement.
This includes information such as WIP management, traceability, performance, and materials
management through the product cycle.
What is a Manufacturing Execution
System (MES)?

5. According to the Manufacturing Enterprise Solutions Associations (MESA), MES sys11 core
functions including:
• Operations/detailed sequencing
• Resource allocation and status
• Dispatching production unit
• Performance analysis
• Maintenance management
• Process Management
• Quality management
• Data collection/acquisition
• Product tracking and genealogy
• Labor management
• Document control

6. As this list suggests, an MES system drills down to capture and manage data specifically for
the benefit of the manufacturing process.
Benefits of using an MES system include:
• Better equipment utilization
• Reduced WIP inventory and overall optimization of inventory
• Reduced labor costs
• Significantly fewer manual data-entry processes
• Better supply chain visibility
• Reduced manufacturing cycle time

7. By combining the benefits of an MES system with an ERP system, companies can collect
their factory data in a connected and integrated fashion.
Because MES manages overall production, the solutions it provides can help manufacturers
gain insights into their factory operations and supply chain to improve the quality of data
input to the ERP.
Cloud-Based vs. On-Premises MES Systems

8. A Manufacturing Execution System as a cloud-based software makes the most sense in
today’s world.
While larger companies have a heavier IT footprint for managing on-premises deployments,
there are disadvantages with on-premises MES that make a cloud-based deployment more
desirable.

9. • IT Skills – On-premises software requires advanced IT skillsets for deployment,
management, and maintenance. This alone would impact the effectiveness of on-
premises MES for small to medium-sized businesses (SMB) who lack the in-house IT skills
or the ability to maintain an ongoing system. This means that SMBs would need to
subcontract for ongoing maintenance or do without – neither of which are effective
solutions.
• Learning Curve and Training – Like most on-premises software, an in-house MES
system would require training and the cost associated with it. This training is less likely
to have online support and learning aids such as interactive tutorials or gamification
learning, and risks lower retention of data by those being trained.
Disadvantages of on-premises MES

10. • Software Updates – Because on-premises systems are relatively static over a long period
of time, updates are a necessary task that must be done regularly. This starts the
training/learning curve over again depending on complexity. It is also costly and may
risk data loss or degradation depending on the skillset of those using the system. And it
may mean that companies forego the timeliness of updates, again degrading the
effectiveness of the system.
A cloud-based MES can be integrated with today’s ERP systems, many of which are also
cloud-based. Because of this, cloud-based MES has many advantages.

11. • Software is Always Current – Cloud-based software has an advantage that on-premises
can never achieve. As it is continually attached to the cloud, it receives all software
updates in real-time on an ongoing basis. This ensures that users always have access to
the most current version, eliminating the possibility of obsolescence.
Advantages of a cloud-based
Manufacturing Execution System software

12. • More Cost-Effective – A cloud-based MES will always be more cost-effective compared
to on-premises. This saves money because expensive IT infrastructure upgrades are not
required. It also means that both in-house skillsets and ongoing maintenance skillsets
are not needed as deeply as in companies with on-premises systems. Upfront and
ongoing training costs are also reduced as learning can be done iteratively with tutorials
and other online aids. As a result, the total cost of ownership for cloud-based MES
software is much lower.

13. • Modular or Needs-based System – Many on-premises traditional software systems are
“blocky” in that they offer specific functionality with little opportunity to control user
experience. This means that if a company doesn’t need specific aspects of the program,
users are still exposed to it. This slows down user experience and makes user interfaces
more time consuming to navigate. Cloud-based MES is often customizable to both the
company and the individual user. This allows for user interfaces and user experiences
that are tailored to specific needs, improving the experience, efficiency, and user
satisfaction.

14. • Scalability – Cloud-based software can act to “level the playing field” for small and
medium-sized businesses (SMB). Traditionally, when on-premises software was the only
option, SMBs lacked the IT skills and the capital to invest in a sophisticated system.
Because cloud-based MES software is modular and intuitive, SMBs have access to state-
of-the-art and best-in-class software to put them on par with larger companies. As they
grow, this modularity can be added for scaling to new requirements in functionality
without having to invest in a new system.

15. • Connected Factory – Since MES cloud-based software can be integrated with ERP
systems and other enterprise software, it offers an opportunity for a connected factory to
allow even the smallest company to take advantage of Industry 4.0 technology. This
means that all systems as well as servers, data storage devices, networks, and other
integrated software allow for visualization of the production floor with data and insights
that benefit from unsiloed information.

16. Manufacturing Execution Systems as cloud-based software makes sense both from a
practical and an operational sense. This software exists today and can be deployed quickly,
cost-effectively, and with a reduced requirement for in-house IT structure and to the benefit
of companies of any size.
Conclusion

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execution-system-software/
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