What is the difference between an enterprise resource planning system (ERP) and a manufacturing operating system (MES)? This is a question that many business managers are interested in and there has been a lot of confusion in these two terms over the past time, especially at a time when most businesses have a need for digital transformation.
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1. The emergence of ERP and MES
ERP stands for Enterprise Resource Planning – understood as an enterprise resource planning system. ERP software is used to manage all activities in the business, turning information into the center of business activities.
A Manufacturing Execution System (MES) is an information system that connects, monitors, and controls complex production systems and data flows at a factory. The main objective of MES is to ensure efficient execution of production activities and improve production output.
1.1. ERP – Well-Known and Trusted Technology
To thrive, the modern company needs to navigate true digital transformation, building a business that covers all manufacturing needs. Using the right technology will help your business ensure long-term productivity and profitability.
One option that’s certainly familiar is enterprise resource planning, or ERP software. It is one of the most widely used software in many industries with the ability to manage, store and use data – helping to complete many daily business activities: accounting, payroll, purchasing, orders, project and risk management, and supply chain operations.
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1.2. MES – The new (strong) kid in the production block
The MES system is key to building smart manufacturing, where factories become profitable innovation hubs. In this model, MES becomes the connecting element between production management and enterprise systems through technology solutions including: IoT, ERP, CRM, HRM, etc. To create and provide processes Perfect production management in factories. MES is used to promote and manage production details, by managing and reporting the activities of the factory or production plants in real time. Monitoring and synchronizing production activities across globally distributed plants link them in real time for optimal business performance.
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2. Which system to choose for your business?
MES and ERP are applied with the aim of helping businesses achieve their business goals quickly. In addition, it also helps businesses optimize their profit sources. However, ERP or MES also have certain advantages and disadvantages depending on the needs and problems to be solved by the business. There are businesses that need to apply both systems at the same time, but there are businesses that only need one of the two. Therefore, before making a decision, managers need to carefully understand the business needs, problems encountered and which systems can be solved.
2.1. Under what circumstances should MES be used?
The MES system is the right decision when businesses have the following needs:
- Focus on outsourcing, mass production, continuous
- Enterprises need to strictly inspect products from input materials
- Each factory and workshop of the company has a different process
- Enterprises have the need to closely monitor, inspect and maintain machinery, equipment and tools
2.2. In which case should ERP be used?
ERP system is more popular because of its total control, suitable for businesses with complex operating methods. An ERP system should be applied when:
- Enterprises have many branches and workshops with the same production process
- Enterprises need to synchronously manage many departments and areas other than production
- Have a need to analyze and evaluate the entire data or have problems in overall management
2.3. MES and ERP integration is the premise for smart factory
MES mang đến cái nhìn toàn diện và sâu sắc về mọi hoạt động trong nhà máy. The integration of both ERP and MES systems allows your business to leverage the core competencies of technology. If ERP is basically the digitization of information and the beginning of digital transformation, then MES will be the core of the complete digital transformation. MES provides a comprehensive and in-depth view of every activity in the plant.
This integration is the basic symbiotic relationship to achieve efficiency in the process of managing and operating production activities. Operations such as planning machines and ensuring traceability through batch management are all handled by the MES software. MES allows manufacturers to connect manufacturing operations to the entire company. MES provides ERP with timely information, such as using information on production levels, materials, etc. Integrating MES into ERP increases forecasting accuracy and helps companies reduce inventory by How to avoid overproduction.
Simply put, the MES system is the support for ERP. ERP asks questions and MES solves problems. MES is an important element in the production management of the ERP system. The combination of MES and ERP allows businesses to leverage the core competencies of technology, thereby improving the overall production process. This is the most important factor to build a smart factory.
The application of ERP and MES is an inevitable trend to modernize production plants, as well as automate industrial processes. The above differences between ERP and MES are the basis for managers to choose the right solution for business needs at certain times. If your business still has doubts, do not hesitate to contact Retex – Real-time garment production management platform to receive a free consultation.
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