MES Guide for Executives: Why and How to Select, Implement, and Maintain a Manufacturing Execution System
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About this ebook
In recent decades, industrial companies have invested much time and money in not only machine and production line automation but also ERP (Enterprise Resource Planning) systems. The MES falls between these two layers. Many plants rely on outdated methods for both preparatory activities (such as detailed production scheduling and recipe management) and retrospective activities (such as data collection, reporting, and analysis). MES can provide an effective remedy to this time-consuming, error-prone situation.
Ideal for CEOs, CFOs, and managers, Scholten’s book sheds light on how to complete your plant’s move into the twenty-first century. Using knowledge gleaned from her extensive experience as an MES consultant and from IT professionals, production managers, and colleagues who have been through the MES experience, Scholten covers MES selection, what to expect during implementation and initial use, the advantages of using a single MES for multiple sites (and how to develop one), and return on investment considerations. She also provides a bird’s-eye view of the widely adopted ISA-95 standard to facilitate effective, efficient communication between company systems.
Bianca Scholten
Bianca Scholten is a partner of, and management consultant at TASK24, one of the largest system integrators and consultancy service providers in the Netherlands and Belgium in the area of technical automation. She advises industrial companies in Europe and the United States on the definition and realization of their manufacturing IT strategies. She is a voting member of the ISA95 committee. Ms. Scholten is also the author of the book The Road to Integration: A Guide to Applying the ISA-95 Standard in Manufacturing, for which she received the Thomas G. Fischer award and the Raymond D. Molloy award, and a contributing author for The Hitchhiker’s Guide to Manufacturing. In 2008, Ms. Scholten received the ISA Standards and Practices Award for her outstanding contribution to the technical report Using ISA-88 and ISA-95 Together. She has published many papers in trade journals on subjects related to vertical integration and technical automation and has trained hundreds of professionals in applying the ISA-88 and ISA-95 standards.
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MES Guide for Executives - Bianca Scholten
2009020314
Foreword
When I first heard from Bianca about her plan to write a book about Manufacturing Execution Systems (MES), I was both excited and wary. She went on to articulate that it was her desire to illuminate some of the ambiguities surrounding this subject and clear up any lingering perceptions that MES is a black art. While I applauded her objectives, I was quick to remind her that others have tried this, and largely failed—not because they didn’t understand the subject matter or how it could and should be applied, but because they apparently assumed that their primary audience is made up entirely of rocket scientists and that they all suffer from insomnia. My guess is that for the most part they were wrong on both counts (speaking for myself, I meet neither of these criteria). My challenge to Bianca was simple, though there was nothing simple about the goal she set for herself: write this book so that the average practitioner, whether from Operations or from IT, can understand it and benefit from it.
As the Chairman of the Board for MESA International (Manufacturing Enterprise Solutions Association), I have the privilege of interacting closely with many manufacturers that are planning to implement an MES solution, and I’ve noted a striking consistency through these conversations. It’s clear that MES is that rare breed of solution that spans both the IT and Operations domains, and this brings about a whole set of challenges entirely distinct from the MES-related problem they’re trying to solve; challenges associated with cultural and convergence-related conflicts rooted firmly in a lack of understanding of each other’s domains. It’s not hard to deduce that these soft
challenges, if not understood and mitigated, will inevitably have a significant negative impact on the success of any MES initiative.
This is not a new observation, and these are certainly not new challenges. The six million dollar question is this: Will Operations and IT leadership learn that until there’s clear alignment between their respective strategies, goals, and metrics, they and their company have little hope of successfully rolling out any systematic, high return manufacturing solutions? Another important question: How can everyone affected better understand the nuances of how MES implementations impact not just specific workflows and business processes, but how they drive the need for functional and cultural convergence?
I contend that the basic alignment of Operations and IT strategies, goals, and metrics, and the very necessary convergence between Operations and IT, will come about only through the education of both parties on 1) the functional components and activity models of MES, 2) their boundaries and touch-points with ERP, 3) the recognition that IT and Operations both bring essential capabilities and world views to this equation, and 4) that one without the other will not succeed.
This brings me back to Bianca’s commendable goal of documenting this multifaceted sum of ideas, capabilities, and manufacturing experience in an easy-to-understand way. Her down-to-earth, anecdotal writing style is easy to read, and she has a refreshing knack for simplifying the most complex structures into clear, well organized content. I believe this book will go a long way towards educating decision makers at all levels and driving the convergence of Operations and IT that is so essential for manufacturers to succeed in this new economy.
Happy reading!
John Dyck
Chairman of the Board for MESA International
Contents
About the Author
Introduction
Chapter 1 We Don’t Have an MES
Chapter 2 MES…? What’s That?
Chapter 3 What Does MES Deliver?
Chapter 4 How Do You Buy an MES?
Chapter 5 What’s It Like, Implementing, Adopting, and Maintaining an MES?
Chapter 6 Can We Roll Out the Same MES in All Our Plants?
Chapter 7 Why Should We Use ISA-95
Bibliography
Glossary
Appendix A
Appendix B
Sponsors
About the Author
Bianca Scholten is a partner of, and management consultant at TASK²⁴, one of the largest system integrators and consultancy service providers in the Netherlands and Belgium in the area of technical automation. She advises industrial companies in Europe and the United States on the definition and realization of their manufacturing IT strategies. She is a voting member of the ISA95 committee. Ms. Scholten is also the author of the book The Road to Integration: A Guide to Applying the ISA-95 Standard in Manufacturing, for which she received the Thomas G. Fischer award and the Raymond D. Molloy award, and a contributing author for The Hitchhiker’s Guide to Manufacturing. In 2008, Ms. Scholten received the ISA Standards and Practices Award for her outstanding contribution to the technical report Using ISA-88 and ISA-95 Together. She has published many papers in trade journals on subjects related to vertical integration and technical automation and has trained hundreds of professionals in applying the ISA-88 and ISA-95 standards.
Introduction
Are you already working on a second book?
Dennis Brandl, editor of the ISA-95 Enterprise-Control System Integration series of standards, asked me during the ISA EXPO 2007 in Houston.
Well, I’m thinking of writing a book about MES and ISA-95, for the boards of directors and management at manufacturing companies,
I answered. I’ve noticed that many of my clients have trouble demonstrating to management what a manufacturing execution system is and what it can do for you. The books and white papers currently available on that subject are all targeted to a technical audience. There’s nothing for the management level.
That’s a good idea,
Brandl said; then he noted, It should be a small book, one they could finish on the plane.
I thought that was a good starting point. A book short enough that CEOs, CFOs, general managers, controllers, plant managers, production managers, and IT managers at manufacturing enterprises could read it cover to cover during a single flight, so to speak. Something that would give them a quick first impression of manufacturing execution systems; a book that answered questions such as What is MES?,
How can MES help us improve our business results?,
and What can we expect when we start using MES?
The following year, I further elaborated this plan. During my daily work as a management consultant, I collected examples, spoke with colleagues, and interviewed IT managers and production managers who’ve garnered a great deal of MES experience within their companies. This resulted in a wealth of information, the most important parts of which are summarized in this book.
Why would we need a manufacturing execution system? We follow a SAP-unless policy,
you may be thinking. Chapter 1 addresses the question whether an ERP system can provide sufficient support for plant processes, and if so, under what circumstances. Your company may not need an MES. In that case, you can put the book down after chapter 1.
But you might come to the conclusion after reading that chapter that your production processes are sufficiently complex that your ERP system doesn’t adequately meet your plant’s information needs. In that case, read chapter 2 to find out exactly what an MES is, and chapter 3 for a rough overview of the costs and benefits of such a system. If you see opportunities for your company, then chapter 4 will tell you in global terms how an MES selection project should proceed, and chapter 5 spells out what your company can expect during implementation and initial use of the MES. If your company has multiple production sites, it may be possible to use one and the same MES in all your plants; chapter 6 contains advice on developing and maintaining a multi-site MES template. Finally, chapter 7 gives a bird’s-eye view of the ISA-95 series and how it can help both people and information systems communicate better, internally and externally, during your MES projects.
This book would not have been possible without the help and support of several organizations, companies, and individuals. My thanks go to WBF (The Forum for Automation and Manufacturing Professionals, formerly known as the World Batch Forum), whose yearly conferences offer professionals the opportunity to exchange information on best practices. Many WBF conference presentations have been a source of inspiration for this book. I also thank MESA (Manufacturing Enterprise Solutions Association International) for its congresses, white papers, and other sources of information that help manufacturing enterprises to reach a higher plane. I’ve quoted from several MESA studies and publications in this book. And thank you, ISA, for making it possible to develop useful standards such as ISA-95, and for publishing specialized books in the field of manufacturing IT.
I also extend my heartfelt thanks to all my interviewees; their real-world experience will help readers to understand what they can do to make an MES project successful. Thank you also, Gert-Jan van Dijk, Jos Hensen, Wouter Huijs, Jan Kelderman, and Sjoerd van Staveren, for reviewing the draft versions. Your critical comments and useful tips—based on your own practical experience—have made an extremely valuable contribution to the quality of this book.
And finally, of course, a big hug for my husband, family, in-laws, and friends; thank you all for providing an environment in which I found the relaxation, rest, and energy I needed to write this book.
Bianca Scholten
Rosmalen, the Netherlands, March 2009
CHAPTER 1
We Don’t Have an MES…
Someone thrust this book into your hand with the comment, Read this! It’s about MES.
So now, of course, you’re thinking, Why should I? We follow a SAP-unless policy, so we don’t need a separate MES package.
But how exactly does that unless
work? When is an ERP system sufficient for supporting activities on the shop floor, and what type of company is better served by a dedicated solution to provide information to factory personnel?
1.1 Modern Countries, Primitive Factories
In recent decades, industrial companies have invested much time and money in machine and production line automation on one hand, and in ERP¹ systems on the other hand. Between these two automation layers lies another, usually called the MES layer.² MES concerns the activities that take place within a manufacturing department. These include preparatory activities, such as detailed production scheduling and recipe management, but also retrospective activities, such as data collection, reporting, and analysis.
In many factories, the situation can be called primitive in regard to these activities. They use MS Excel for their detailed scheduling and reports, and MS Word to manage operator instructions and recipes. When there are advanced applications available, these come from various vendors and are not integrated. Figure 1.1 shows a typical example of the kind of stand-alone applications that factories use.
Figure 1.1 Typical example of the current level of automation in many factories
This outdated situation leads to many problems. For example, on the management and supervisory level, one has no insight into the current production situation. If the production manager wants to determine the source of a problem, he or she must first walk over to local systems in order to pull up the data files, then import these into a spreadsheet, and then reconcile the data with each other; only then—perhaps—will the answer to the question be revealed. This process can sometimes consume more than two entire workdays. It’s impossible for the operator, supervisor, or