April 5, 2024 Building a Smart Factory With MES

A manufacturing execution system (MES) is a valuable investment during any stage of the digital transformation process.

by Bill Rokos, Chief Technology Officer, Parsec Automation

Technology is constantly evolving, and it’s becoming more accessible by the day. As we dive deeper into Industry 4.0, manufacturing is getting smarter, more efficient, and more flexible. Manufacturers know how crucial digital transformation is to success, and—no matter their motivations—they recognize that smart facilities are the future of the industry. But, often, they don’t know how to pursue these innovations.

A recent Parsec survey found that, though interest in deploying emerging tech is high, more than one-third of American manufacturers either do not have a strategy for digital transformation or have yet to implement the plans they’ve made. Though initially surprising amid public and private fervor around AI and “smart” tech, the hesitance to begin is understandable. After all, the idea of a possible “overhaul” can be daunting, and the seemingly endless options for vendors, tech, and capabilities—though enticing—can quickly lead to decision paralysis.

While every digital transformation journey will be different, there is good news for leaders. A manufacturing execution system (MES) is a valuable investment during any stage of the transformation process. These extensible and adaptable solutions can also serve as a solid foundation for any smart factory.

A Path toward Simpler, Smarter Operations

The near-universal goal for digital transformation is improving operational efficiency. Unfortunately, that can be quite vague, and it can only be achieved when business leaders have contextualized insights into their operations, which leads to the creation of achievable, specific goals.

An MES allows leaders to formulate a baseline. With the help of both MES and Industrial Internet of Things (IIoT) devices, manufacturers can develop an accurate understanding of current performance. Together, they act as a comprehensive system of record to illustrate everything that happens on the manufacturing floor. Furthermore, MES and IIoT devices automate data collection—a boon for businesses, given that 42% of manufacturers still collect most or all of their data using non-digital processes. By funneling data into their MES, manufacturers can cut down on data collection and recording time while reducing the risk of human error.

In the short term, Smart Devices and MES work to collect real-time data, helping managers ensure production runs smoothly and alerting users to any potential issues as they occur. Over time, this data provides historical insights, highlighting bottlenecks, opportunities for improvement, and solutions that can help leaders progress toward their objectives.

Determining the Next Step

So, implementing an MES can be a first step—but how do leaders figure out what’s next? That answer is a little more complicated. Fortunately, MES platforms can help guide the way, enabling manufacturers to take small steps that bring them closer to big goals, like:

Taking advantage of AI.

Some companies may not be ready to put robots on the production line. With an MES in place, manufacturers can begin to integrate AI into their operations in simpler ways. While your MES is already aggregating data, AI takes it to the next level. By integrating AI toolsets with MES, manufacturers can expand the efficacy of their existing toolsets. This interconnectivity can help bolster everything from inventory management to post-production quality assurance.  With that said, more than two-thirds of manufacturers say they are under or unprepared to take advantage of artificial intelligence and machine learning—by using MES as a stepping stone, these facilities may be ready for AI sooner than they had thought.

Upleveling sustainable operations.

The insights gleaned from an MES can also help manufacturers work toward sustainability goals without compromising their business goals. Understanding how operations are running allows businesses to pinpoint areas where they may be able to cut down on waste or reduce utility consumption. Additionally, the insights provided by MES can be used along with demand forecasting to optimize materials ordering, warehousing, and usage.

Apart from cost savings, the right technology can help businesses succeed in the face of ever-tightening regulations. As calls for sustainable manufacturing increase from both the consumer and regulatory sides, companies seeking to thrive under such circumstances will need to ensure they are leaning into efficiency at every turn.

Bolstering supply chain resiliency.

Over half of manufacturers say that their organizations are “hardly” or only “somewhat” prepared for supply chain challenges. An MES can provide a bird’s eye view of the entire supply chain from receipt of raw materials to delivery of finished goods, meaning manufacturers can easily identify any areas of inefficiency. It also means businesses will have advance warning of any potential supply shortage or disruption. With this visibility comes the ability to abate these potential hold-ups by proactively developing backup plans and ensuring diversity of suppliers.  

Whatever goals one is working toward, MES can be a logical and beneficial first, middle, or next step. No tech solution is one-size-fits-all, but manufacturers can feel confident knowing that their MES will bring transformative optimization to whatever kind of smart factory they are building.

The Ripple Effects of Smarter Tech

No matter how a company chooses to launch its digital transformation initiatives, and regardless of the immediate goal or area of focus, the reality is this: no improvement initiative is mutually exclusive. Progressing toward any one of the above goals will inevitably drive progress in other areas.

And that’s the biggest secret. prioritizing one thing doesn’t mean ignoring the others. By developing a more efficient production process, organizations are likely to see a more sustainable operation. Because an MES works to connect the entire enterprise, individual phases and processes are no longer isolated. With an efficient, interconnected production ecosystem, manufacturing leaders can set themselves and their teams up for a smarter, brighter future.

Since 1999, Bill has spearheaded the development of Parsec’s manufacturing operations management (MOM) platform, TrakSYS. As Parsec’s longtime CTO, he has worked with many of Parsec’s customers worldwide. From implementing and architecting TrakSYS deployments to designing the latest features, Bill has been instrumental in Parsec’s (and TrakSYS)’s impact and success.

Subscribe to Industry Today