What is MES (Manufacturing Execution System) in

Complex Discrete Manufacturing?

Today's competitive manufacturing arena demands lower cost, more product variants, shorter product
introductions, and better compliance to industry standards and regulations.

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 What is MES in Complex Discrete Manufacturing

Contents
Foreword ......................................................................................................................................................... 5
1. Defining MES and Complex Discrete Manufacturing ....................................................................................... 6
1.1. What is unique about Complex Discrete Manufacturing? ........................................................................ 6
1.2. What is a Manufacturing Execution System?........................................................................................... 7
2. Requirements for MES in Complex Discrete Manufacturing ............................................................................ 9
2.1. Product and Process Definition ............................................................................................................. 11
2.1.1. Bills of Material (BOMs) ................................................................................................................ 11
2.1.2. Process Routings, Work Instructions ............................................................................................. 12
2.1.3. Change and Configuration Management ....................................................................................... 12
2.2. Resources Management ....................................................................................................................... 13
2.2.1. Personnel Qualifications and Certifications ................................................................................... 13
2.2.2. Tooling Calibration ........................................................................................................................ 13
2.3. Production Jobs Dispatch ...................................................................................................................... 14
2.3.1. Daily Jobs Dispatch List ................................................................................................................. 14
2.3.2. Assignment of Resources to Jobs................................................................................................... 15
2.4. Production Process Execution Management ......................................................................................... 15
2.4.1. Guiding the Technician through Work Steps .................................................................................. 15
2.4.2. Production Job Progress Tracking .................................................................................................. 16
2.4.3. Events and Alerts .......................................................................................................................... 16
2.4.4. Production Control........................................................................................................................ 17
2.4.5. Work Order Splits.......................................................................................................................... 17
2.4.6. Online System with High Availability ............................................................................................. 17
2.5. Programmable Equipment and Data Collection ..................................................................................... 18
2.5.1. Running Machine Programs .......................................................................................................... 18
2.5.2. Data Collection ............................................................................................................................. 19
2.5.3. Job Buyoff/Signatures and Status .................................................................................................. 21

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 What is MES in Complex Discrete Manufacturing

2.6. Product and Parts Tracking and Genealogy ........................................................................................... 22

2.6.1. Parts Issue, Kitting......................................................................................................................... 22
2.6.2. WIP Product Tracking .................................................................................................................... 22
2.6.3. Parts Installation Records and Product Genealogy......................................................................... 22
2.6.4. Material Shelf Life and Expiration .................................................................................................. 23
2.7. Production Quality Management .......................................................................................................... 23
2.7.1. Production Inspection Planning and Execution .............................................................................. 23
2.7.2. Product Configuration Verification ................................................................................................ 24
2.7.3. Nonconformance and Defect Management................................................................................... 24
2.8. Production/Plant Performance Analysis ................................................................................................ 25
2.8.1. Schedule/Capacity Performance Analysis ...................................................................................... 26
2.8.2. Cost and Quality Performance Analysis ......................................................................................... 26
2.9. Systems Integration Services................................................................................................................. 27
2.9.1. Engineering Product and Process Design Systems ......................................................................... 28
2.9.2. Business Procurement/Inventory and Financial Systems ............................................................... 28
2.9.3. Enterprise Business Intelligence .................................................................................................... 28
2.9.4. Enterprise Continuous Improvement Management ....................................................................... 29
3. A Few Other Considerations ......................................................................................................................... 29
About Author ................................................................................................................................................. 30
About iBASEt.................................................................................................................................................. 30

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 What is MES in Complex Discrete Manufacturing

Foreword
Today's competitive manufacturing arena demands lower cost, more product variants, shorter product
introductions, and better compliance to industry standards and regulations. This has led many manufacturing
companies to move beyond the old paper-based processes, and start implementing new streamlined business
processes for their shop floors with the use of commercial information systems.
This paper is intended for Operations, Operations Support, Quality Assurance and Information Technology
personnel who are evaluating software solutions to improve production management capabilities in complex
discrete manufacturing industries. These industries include: aerospace, defense, shipbuilding, nuclear energy,
industrial electronics, industrial equipment, and complex medical devices.
Defined are common and unique business process requirements (including verification and documentation
requirements) needed to support the effective management of operations in complex discrete manufacturing.
Many of the capabilities outlined are not just nice-to-have or best practices for some of these industries, they are
required for regulatory compliance by industry and quality management system standards such as ISO9001,
AS9100, and ISO13485.
For organizations looking to improve their business processes and implement new information systems, the general
requirements provided in this paper can be used as a starting point for creating a requirements list for these
initiatives.

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 What is MES in Complex Discrete Manufacturing

1. Defining MES and Complex Discrete Manufacturing

1.1. What is unique about Complex Discrete Manufacturing?

Complex discrete manufacturing industries manufacture complex highly engineered products with longer product
cycle times and multiple levels of subassemblies in their bills of material. Many of these companies make and
engineer products to order. They also have a need to track manufacturing history down to each "discrete" serialized
product unit. In contrast, batch production manufacturers only have to track products by work center, day, batch,
or lot.

Complex discrete manufacturers include companies that manufacture products for aircraft, space, military
weapons, complex medical devices, robots, and specialized industrial equipment. For many of these products it is
necessary to manage complex diverse product configuration, long product life cycle, along with increased market
pressure for shorter time to market for new products and stricter regulatory compliance oversight.

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 What is MES in Complex Discrete Manufacturing

Some of the major characteristics that define a complex discrete manufacturing environment are:
 Long cycle times, low volume, make-to-order or engineer-to-order
 Complex product with deep bills of material (BOM)
 Highly skilled labor performing manual assembly and fabrication work including complex NC machines and
special materials such as composites
 Complex process routing sequences with decision points and loops
 High flow of engineering changes affecting work-in-process
 Production is not repetitive and mechanics must be alerted to changes
 Data collection during production includes manual data entry, verifications and signatures
 Personnel have qualification requirements and equipment have calibration certification requirements
 Documentation requirements include a complete history for every produced unit, and traceability of the
components installed and material used

1.2. What is a Manufacturing Execution System?

Many production environments have historically been serviced by paper-based procedures and homegrown
applications. These have not kept up with newer requirements for increased speed, agility, and traceability. The
combination of paper and unlinked data silos at the shop floor increases the difficulty to integrate the required
plant data into a complete and accurate top-level view of operations. The demand for more efficient practices is
motivating plants to modernize and move beyond running the facilities with spreadsheets, paper, and knowledge
held by a few key experienced employees that might be nearing retirement. Manufacturers are realizing the need
to integrate real-time manufacturing data into their corporate information view.

A Manufacturing Execution System (MES) is an information system that drives effective execution of manufacturing
operations. Using current and accurate data an MES triggers, guides, verifies, and reports on plant activities in real
time—from order release, to manufacturing, to delivery, to the finished goods inventory. MES systems have been
evolving and broadening functionality, to manage internal quality and the supply chain. The term Manufacturing
Operations Management (MOM), which came from the batch and process industry, is also used as a synonym to
MES. Regardless of the term you prefer, the definition and requirements listed in this paper are the same.

The diagram in Figure 2 shows eight typical functional areas inside of the scope of MES. This is a slight modification
of the MESA (Manufacturing Enterprise Systems Association) collaborative-MES model. The perimeter of the MES
boundary shows other enterprise functions and applications that typically integrate with MES. This paper will
expound on these eight areas, identifying where unique MES capabilities are required by complex discrete
manufacturing.

Ideally, an MES system should provide all the functionality needed by shop floor personnel in one simple user
interface—avoiding the need to jump between different applications to get information. One application to learn
and one user interface that integrates all the information needed to effectively manage operations.

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 What is MES in Complex Discrete Manufacturing

The requirements for MES have been grouped into eight functional areas, to allow for easy cross reference with the
MESA, ISA-95 and ISO-9001 frameworks.

 Process Definition Management

 Resources Management
 Production Jobs Dispatch
 Process Execution Management
 Data Collection and Programmable Equipment
 Products and Parts Tracking and Genealogy
 Production Quality Management
 Production Performance Analysis

The diagram in Figure 3 shows how MES functions map into Level 3 of the ISA-95 model. The ISA-95 reference model
is an international standard for systems integration, spanning from enterprise level systems to control systems.
Though the ISA-95 model evolved out of the batch, continuous, and repetitive process industries—not complex
discrete manufacturing; it is still useful as a general reference framework, providing some consistent terminology
to compare MES applications.

The model describes how Level 4 applications (including CAD, PLM, ERP, and APS) pass product definitions,
capabilities, and schedule information to Level 3. Enterprise applications at Level 4 need improved integration to
Level 3 applications to get up-to-date data from manufacturing—data needed by corporate executive decision
makers. The model also describes how plant floor automation applications at Levels 1 and 2 can provide detail
measurement and event data to the MES on Level 3.

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 What is MES in Complex Discrete Manufacturing

2. Requirements for MES in Complex Discrete Manufacturing

A checkmark or grade on each of the eight functional areas, is not enough to evaluate the fit of an MES to your
industry or company's needs. On the surface, many MES seem to have a similar functional footprint, but some MES
cater to specific industries with very specialized functionality. To make an informed assessment, it is necessary to
drill down to more specific requirements, to find the solutions that can truly handle your industry and
manufacturing needs. Finding the right solution fit can hugely affect the effort, time frame, cost (total cost of
ownership), and results of an MES implementation initiative.

Complex discrete manufacturing organizations have unique requirements in their manufacturing and quality
management business processes including: (a) Vigilant Resources Certification Management, (b) Complex
Product/Process Configuration and Change Management, (c) Detailed Integrated Quality Control Processes, and (d)
Detailed Product Unit History and Records Archival.

Vigilant Resources Certification Management

Personnel must be certified as competent on the basis of education, training, skills, and experience. Personnel
qualification processes must be standardized and documented. In addition, equipment resources must also be
maintained to assure their capabilities, especially measurement equipment used to verify the product. The
equipment and tools maintenance and calibration processes must be standardized and documented. An MES can
verify calibration status for equipment, and also verify that personnel signing off on a job have the required active
certifications.

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 What is MES in Complex Discrete Manufacturing

Complex Product/Process Configuration and Change Management

The manufacturing of a complex product like an aircraft or satellite involves the management of a continuous
stream of engineering changes directed at work in process. The integration of the engineering system with MES can
create a seamless link between product development, manufacturing planning, and manufacturing execution
functions. This link would close the loop on engineering changes, and assure that as-built configurations match as-
designed.

Detailed Quality Control Processes

Beyond providing visibility into areas for improvements, the manufacturing information system should provide
process control procedures to implement and sustain quality improvements. This includes in-process inspection
and verification steps, statistical process control (SPC), alerts to out- of-control conditions, and integrated handling
for discrepancies found during production (including defect containment and corrective actions) to eliminate
recurrence.

With the high investment that goes into these types of products (for parts and labor), they are rarely scrapped.
Instead, these industries require rework, repair, and deviation handling procedures to ensure that deviations are
documented, reviewed, and approved by the appropriate personnel. The integration of production and quality
systems can ensure that deviation instructions cannot be skipped by the mechanic performing the work. Deviation
history is also considered part of each product unit history.

Detailed Product Unit History and Records Archival

MES maintains production history documentation down to the details for each product unit, versus tracking to the
batch level. MES documents exactly who, what, when, how, and why—like who completed the job, what equipment
was used, which parts were replaced, and who approved the changes.

The following sections define requirements for an MES in the complex discrete manufacturing environment. In
addition to the eight functional areas outlined above in Figures 2 and 3, a ninth area is discussed describing the
high-level requirements for integration to enterprise systems.

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 What is MES in Complex Discrete Manufacturing

2.1. Product and Process Definition

The MES must manage the documentation package required at the
shop floor to execute product manufacturing. This documentation
includes design engineering specifications in the form of 2D drawings,
3D models, geometric dimensioning and tolerancing (GD&T)
information, and work instructions.

The MES system can either provide its own document management
system for production documentation (including illustrations and work
instructions), or link to a shared repository with engineering
documentation.

The revision level of engineering documentation should be crossed

referenced between the engineering system repository, and the MES
documents for change management purposes.

Engineering drawings and models for tool fixtures are maintained and crossed referenced with product designs and
process plans.

Some parts, aspects of the product, or process design might need to be protected for export control (or intellectual
property) purposes. If your organization has these requirements, it is important to assess the capability of the MES
to support these types of security controls. These requirements are more than the common user privilege and role
administration found in most MES solutions.

2.1.1. Bills of Material (BOMs)

An MES system should allow for multiple BOM management scenarios. The Engineering BOM (eBOM) defines the
product structure in terms of part numbers linked to 3D CAD models. They are organized in a hierarchy of
subassembly structures that are revision controlled and managed by a Product Data Management (PDM) or Product
Lifecycle Management (PLM) system.

The Manufacturing BOM (mBOM) defines the product structure in terms of how the product is going to be built.
The mBOM does not necessarily mirror the eBOM, because complex products are often reorganized into temporary
kits and subassemblies with the use of phantom and synthetic part numbers. These reflect the different
manufacturing stages, and allow improved tracking of the subassemblies as they are completed by different
suppliers and manufacturing facilities.

Organizations try to align these BOM structures as much as possible. However, some Engineering departments do
not want to change the product definition every time the manufacturing process is changed or reorganized. The
MES should support either (a) receiving an mBOM from an external system, or (b) receiving the eBOM and managing
the transformation from the eBOM to the mBOM within the MES system. The development of the mBOM is closely
tied to the development of the manufacturing process, which is captured in the definition of Process Routings.

An MES must support configuration management in BOMs through effectivities for each component part, with
ranges in end units, serial/lot numbers, or dates. Some companies might also use configuration codes on
components, to manage variations of the product within a single BOM.

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 What is MES in Complex Discrete Manufacturing

2.1.2. Process Routings, Work Instructions

In complex discrete manufacturing, process routings, and work instructions are usually managed as a single
combined document, called process plan. In addition to specifying the planned processing and assembly of the
product unit through work centers in the plant (aka. process routing), the process plan details execution sequence
rules, work instructions, resources, and data collection requirements for each operation and step.

Work Instructions include text narratives and

illustrations, which guide the technician through the
appropriate process sequence. The instructions show
how to set up tools, position parts, run machines, and
how to perform required measurements and
verifications along the way.

Many manufacturing shops are still working off work

instructions printed on paper, but most MES support
delivery of online work instructions on big screens
mounted at the work benches.

Illustrated work instructions are usually easier to follow, learn, and preferred by mechanics and technicians.
However, creating and maintaining illustrations for work instructions can be labor intensive. These have been
traditionally reserved to clarify the more complex work steps, where costly mistakes must be avoided (or where
words are not enough) to appropriately explain the work sequence.

Illustrations and animations can also be created directly from 3D models, and delivered via 3D model viewers. The
latest generation of software tools from CAD vendors are making it easier to create these illustrations. They leverage
the product design 3D CAD models by automatically converting them to lighter file formats with lower bandwidth
requirements. The lighter formats lower the graphics quality a bit while maintaining enough definition for work
instructions. These 3D based illustrations are quickly replacing illustrations based on pictures and manual sketches.
The MES or CAD illustration tool might also provide a way to annotate the 3D based illustrations with a few pointers.

2.1.3. Change and Configuration Management

Engineering changes affecting in-process units are not exceptions, but part of normal every day processes. This is
due to the complexity of the products, and the industry push to quickly incorporate the latest leading edge
technology. The integration of engineering systems and MES is essential to close the loop on engineering changes,
and assure that as-built configurations match as- designed.

For some companies, the MES must support the management of product revisions that cut in at specific dates or
serial numbers. In addition, they support configuration codes and effectivities on BOM components for different
models (or different ranges) of end-units, serial numbers, or lot numbers.

Process plans must be under revision control with cross references to the revision level of referenced BOMs,
illustrations, and procedures.

When illustrations are based and crossed referenced directly to the original eBOM and 3D CAD models, the revision
process in MES can be aided with impact assessment tools. These tools guide the users through the revision of
process plans and work orders based on where-used queries.

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 What is MES in Complex Discrete Manufacturing

The standardization of work practices and authoring of work instructions into process plans can be aided by the use
of a library of standard operations and standard instructions text. These libraries of reusable instructions can further
improve efficiencies. They need to provide ways to do mass updates of work plans and work orders, while
preserving cross references and revision control between the library entries and the documents that reference
them. The MES may also provide document control capabilities for attached documents that are not already under
revision control in externally linked systems.

2.2. Resources Management

Process routings are extracted from the process plan structures and exported to the Enterprise Resource Planning
(ERP) system. This needs to be done to the level of detail required by that system to perform production capacity
planning, and material and labor cost tracking functions. Usually this is done at the operation and work center levels,
keeping step level details within the MES.

The MES lists the resource requirements for each manufacturing job as part of the definition of the process routing.
This is then passed to the ERP or scheduling system. Verification of resource capabilities and certification is one of
the critical functions handled by MES, including personnel qualifications and tooling calibration records.

2.2.1. Personnel Qualifications and Certifications

Regulated industries (such as Aerospace) require that qualified, trained, and certified personnel are performing the
work. Personnel must be certified competent on the basis of education, training, skills, and experience. An MES can
maintain certification records for employees and verify that the personnel signing on to a job have the correct active
certifications.

The MES can house the certification data in one main repository for the organization, or it can be integrated into a
Human Resources system to access this information. Each work center manager can periodically review which
employees require training to keep certifications valid.

The MES can also maintain records on each employee's experience with different types of jobs. This information
can be used to help assign personnel to jobs. For some types of certifications, the MES can automatically recertify
personnel based on job experience instead of requiring the employee to re-attend a training course periodically.

2.2.2. Tooling Calibration

Gauge and tool management can be done in a separate system but there are several advantages to having it within
the MES system:

a) The MES system maintains usage information for each tool.

Calibration can be triggered based on actual usage frequency
instead of (or in addition to) the traditional date driven rules.
b) MES traces measurements to the tools used, and can enforce
that tools be in good calibration status before data
measurements are accepted.

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 What is MES in Complex Discrete Manufacturing

Tooling and gauge calibration management features include:

 Gauge and tool crib management (including check-in/out of tools to crib, and to production work centers
 Calibration scheduling based on dates or tool usage.
 Calibration due reports for using work centers. Email or dispatch notification when Tools/Gauges are due for
calibration.
 Calibration instructions and standard templates
 Recording of calibration results
 Optimization of calibration intervals (based on history) for each tool

By requiring tool identification during measurement data collection, the MES can narrow down recalls, in the event
that a malfunction is discovered at a later time in a measurement device.

2.3. Production Jobs Dispatch

The ERP system performs capacity planning at the work center level (based on the resource requirements provided
by the MES), and adjusts production schedules weekly or daily. Production Work Orders are usually released by the
ERP to the MES when they are ready to be worked by Production; this is usually a two or four week time horizon.

Some organizations might develop rough planned dates for work orders in ERP. Then for more detailed schedule
dates, use a scheduling system that considers resource availability in more detail using a shorter time horizon.
Detailed scheduling is typically done at the operation level, taking in consideration machines, tool fixtures, and
personnel skills as resources.

2.3.1. Daily Jobs Dispatch List

Dispatch of jobs to the production shop floor should
be done in accordance with the work sequence
defined in the process plans. However, with
appropriate approval, the MES must be able to
deviate from planned sequence. The ability to
postpone jobs (or partial jobs) to a different
sequence (or alternate work center) to work around
unplanned issues, such as part shortages or machine
downtime, is imperative.

A jobs dispatch list should clearly indicate any issues that would delay completion of the job. This will prevent job
starts on jobs that are not ready to be fully completed. Delays and hold conditions that should be recorded and
displayed include: machine downtime, part shortages, and waiting for engineering disposition on issues found
during production.

A graphical display of actual dates versus schedule dates, for each job in a Gantt chart makes it easy to assess
performance to schedule visually. This can highlight jobs that are falling behind, and might need to be prioritized or
expedited.

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 What is MES in Complex Discrete Manufacturing

2.3.2. Assignment of Resources to Jobs

The dispatch function in MES should facilitate assignment of resources to production jobs.

Histogram views can help assess resource utilization, and assist with job assignments. To help supervisors assign
personnel to each job, it is helpful to display personnel skills, qualifications, and recent experience with similar types
of jobs.

A Time and Attendance (T&A) or workforce management system can be integrated to MES to display daily
attendance records to supervisors to help assign available resources to jobs. In addition, the integration can go
further, helping to reconcile labor hours with attendance hours.

For work centers where multiple machines can perform similar tasks it is necessary to specify which machine is
performing each job. This way if a problem is found later with a specific machine and it is necessary to identify which
product units might have been affected, the information is documented. An added benefit of specifying the machine
being used for each job is knowing which machines are busy. In addition, the MES should also be able to record
when a machines are down for maintenance or repairs. Supervisors will then have advance warning of resource
constraints, allowing them to reorganize jobs and assignments.

The MES should help select the appropriate tool or gauge to use for each measurement based on: the tools assigned
to the work center, the tolerance requirements for the data collection, and the accuracy and calibration state of
the tool. Each work center should also have a proactive warning list of tools and gauges checked out but requiring
calibration in the near future. This way corrective action can be taken before the tool condition becomes a
constraint.

2.4. Production Process Execution Management

This is an essential group of MES functionality, which streamlines production execution. It includes recording the
execution of the work order operations. Technicians are guided through the work steps assuring all work is done in
the prescribed sequence and no steps are missed.

In addition, alert messages can be set to inform the technician and supervisor (in real-time) of issues that arise
during production. Risk mitigation on scheduled dates could require expedited action from support personnel or
immediate workaround action from Production Control or the supervisor (to reshuffle the assigned jobs at the work
center), minimizing the impact of idle time while the issue is being resolved.

2.4.1. Guiding the Technician through Work Steps

The MES can go beyond simply displaying an online document to the technician. The MES can guide the technician
through the various steps from selecting a job on a dispatch list, signing on to the job to start the clock, collecting
data for measurements and parts, through recording the completion of the job. This functionality can range from
nice-to-have, to an absolute necessity for work that is sensitive to the sequence of detailed steps.

The mechanic should only be able to view the latest appropriate documentation and illustrations for each job. To
remove human error, it is important that the MES tracks and automatically displays the appropriate version and
revision of work instruction, versus having the technician look them up in another system. The MES can require
additional acknowledgement if this is the first time the technician has seen the specific revision of the work
instructions. This ensures that the technician has reviewed the new work instructions, and does not miss an
important change that would lead to product defects.

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 What is MES in Complex Discrete Manufacturing

Work instructions should include warnings about safety precautions, and wearing the appropriate safety gear. In
some cases, an acknowledgement might be required from the technician about safety precautions before allowing
the technician to proceed with the work. The MES can cross-check the required qualifications for the job against
the technician's qualifications, and alert the technician if more than one skill (or person) is required for the job.
When jobs span multiple shifts, it is important for one shift to be able to leave an online note attached to partially
completed jobs for the next shift.

2.4.2. Production Job Progress Tracking

The job progress tracking function includes tracking the completion of each manufacturing order, each operation,
each product unit, the resources used, and the bills of material and parts used. This also allows production planners
to identify where each product unit (or lot) is within the manufacturing cycle, and what materials are needed and
when during the production. This visibility can help manage inventory, including notifying production control when
kitting is needed for the next jobs in the queue. This level of visibility also allows organizations to properly inform
customers on when to expect their products delivered.

Part of tracking progress is the ability to track labor costs for each job. This is usually done by requiring personnel
to clock-on and off jobs. The first clock-on also indicates the start-time for the job. At clock-off, the technician might
be indicating the number of units completed. The last clock-off is used for job completion time. Clock on/off times
might be passed to a labor costing system, which is configured to distribute labor and allocate people's time on
parallel tasks to each job (and production unit) according to configured allocation rules. It should be able to take
into consideration the time clocked on, versus the labor standards for each job.

It is typical for complex discrete industries to consider each operation in the work order as a separate production
job, which is often designed to be completed within an eight hour shift. However, an MES should be able to handle
different people clocking on and off jobs multiple times, on different shifts, while recording the partial completions
(quantity or percentage) of the job.

When working units one at a time, it is usually preferred to show progress as a percent complete for each job.
However, when work centers are producing bigger quantities per job, an online Andon Board might be preferred.
An Andon Board is a visual schedule progress display that uses green, yellow, and red status indicators (along with
planned and completed quantities) to highlight when a work center is under the expected production level for the
day.

2.4.3. Events and Alerts

Automated event tracking is an important task for the MES. Regular events (such as the completion of a job by a
machine) can be displayed to the respective operator to trigger the next step without delays. Other types of events
might be exception or alert events that require a special action such as triggering an alert to the appropriate
supervisor or support personnel. These alerts might be redundantly broadcasted via email to supervisors or support
personnel in the organization.

However, most alerts are displayed by the MES at the work station, to get the immediate attention of the operator
or technician.

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 What is MES in Complex Discrete Manufacturing

Alert event examples include warnings for out of spec (or out of control) conditions, warnings for tools out of
calibration, personnel with expired certifications, and line stops.

The physical idea of a red Andon Light alert on a post at each work station indicating a line stoppage, can be
translated into a digital version. Providing a color coded display for the work center status, where red indicates any
current stop condition. An advantage of providing these types of indicators via an MES is that the system can provide
an online view of the entire plant - quickly highlight where issues are happening in real-time, who is assigned to
follow up, and how long the work center has been impacted.

Some MES can also broadcast alerts to supervisors and managers, escalating issues based on the urgency and time
the issue (or hold condition) has been open without action or resolution.

2.4.4. Production Control

Production Control features include: (a) the ability to expedite the resolution of issues that are holding up
production, such as part shortages or machine failures, (b) coordination and approval of work-around deviations
from planned work sequences, and (c) incorporation of urgent engineering changes that impact production
schedule. The MES should provide screens and reports that help analyze impacted areas, and help move schedule
times and assignments to work around these situations. Some MES provide both planned and revised schedule
dates, to keep track of the original plan and the new work around dates.

Production Control personnel might also be involved in confirming the impact of engineering changes to units in-
process. They help determine the best place in the production schedule to make changes effective. This interaction
can be supported in the MES via screens that query where the specific drawings or models are used and display the
related work in-process. Integration interfaces can also be used to transmit ECN effectivity requests and
confirmations between the PLM and MES systems.

Production Control (or Industrial Engineering) personnel can take responsibility for periodically reviewing actual
production job times against time estimates, and requesting changes to time standards and schedules. This ensures
that schedules reflect realistic attainable goals. The MES should facilitate this function by providing reports that
compare estimates to actuals and highlight areas that might need re-assessment.

2.4.5. Work Order Splits

Sometimes production issues may require that a production lot be split into sub-lots, so that a subset of the product
units can be moved ahead of the rest (or be moved through a special rework sequence). Work Order splits are
usually much easier to handle in the MES system than in the ERP system. MES integration interfaces can handle the
coordination with the ERP system in the background. This makes sure the accounting side is handled correctly
without losing important traceability information for the work performed against each sub-lot, and the component
genealogy information for each sub-lot.

2.4.6. Online System with High Availability

A paperless online execution system requires high availability, since many plants run three shifts around the clock.
That means 24x7 availability, fault tolerance, and system backup are very important to these environments, and
need to be part of the MES deployment considerations. The MES should be designed to support high availability,
and not require periodic significant down time for performance tuning or backup.

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 What is MES in Complex Discrete Manufacturing

2.5. Programmable Equipment and Data Collection

It is difficult to separate topics in this section (such as running programs and performing data collections) from some
of the production execution topics listed above. However, for the purposes of this paper we have maintained the
separation to stay aligned with the MESA and ISA MES/MOM models referenced. Each of these functional areas
must have proper individual evaluation, but the organization should also consider how closely these functions work
seamlessly together within the MES solution. Optimally the user should not feel they are going into different
systems (or screens in the MES) to perform each separate function. The user should feel they are performing a job
online, and that the data collection is part of one seamlessly fluid integrated process.

2.5.1. Running Machine Programs

Current market conditions demand faster new product introduction, more product variants, shorter runs of small
batches, and more flexible programmable machines. As a result, most shop floors have to manage continuing
change. To meet new manufacturing demands, existing machines are upgraded, reconfigured, and adjusted to
improve efficiency and enhance flexibility. New machines are acquired to increase capabilities. Manufacturing
processes, tooling, and materials also continue to evolve to improve productivity. An MES must be able to help
manage this changing environment while making sure the machine programs executed are the correct versions for
the specific equipment, operation, and part number.

A process plan in an MES can include work instructions to run a machine. These instructions can range from simple
setup sheets, to execution of complex programs—such as NC (Numerical Control) or CMM (Coordinate
Measurement Machine) programs—to performing a manufacturing process step or inspection on a specific part.
An MES should be able to store these programs, maintaining a cross reference between the latest work instructions
and the latest program for the specific operation and part specifications.

Machine programs are revised constantly to accommodate machine, part design and tooling changes. There might
be a separate document management system for NC programs, but it must be carefully cross referenced to the
process plans. This will ensure that the operator is selecting the correct version of the program for the current part
and operation. The task of pulling all documents required by production together is not a trivial indexing task.
Sometimes costly mistakes are made when we depend on manual systems of reference. The task becomes more
complicated if programs are not in the same system as tool setup sheets and drawings. It is very helpful having the
change management processes of product design, process design, and the actual production equipment closely tied
together with workflow processes that trigger other impacted groups. Then the changes can be evaluated to make
sure related downstream process instructions and tooling are updated accordingly.

There are many suppliers and types of machining and inspection devices, and many ways of integrating them to
MES. However, more suppliers are offering IP connectivity for their machine tool devices and pre-developed logic
instructions. Integration standards like OPC-UA (PLCopen) between machine controllers and MES, and Profinet,
Powerlink and EtherCAT between machine controllers and sensors are also helping create toolkits for quicker
integration between machines and MES.

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In addition to maintaining a centralized library for NC and CMM programs, an MES should be able to help with the
following tasks:
 Upload and administer machine parameters
 Connect to all types of controllers and tool pre-setters via serial (or Ethernet) interface
 Download programs to machines and controllers
 Upload data from machines (via integration interfaces) as data collection for operations including machine
states, error codes, and parts counts
 Display data collected from machine interfaces back to MES operator user interface

2.5.2. Data Collection

Product quality is verified during production, via checklists and recorded measurements. These measurements may
have statistical process controls (SPC) parameters set on them to trigger alerts, based on out of control conditions
and rules configured in the MES. In-process quality verifications allow detection of issues as early as possible during
the manufacturing process. Different types of in-process data collections include:
 Manufacturing job status and quantities completed
 Checklist verifications during setup or inspection step
 Actual dimension (or weight measurements) to be compared with specifications
 Environment (or equipment) configuration variables
 Tooling (or machine) setup information
 Resources identification
 Material Expiration
 Personnel signatures

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 What is MES in Complex Discrete Manufacturing

The MES must be able to allow manual typing for inputted information. However, the less typing required the better
to improve speed and reduce the chance of human error. The good news is that interfacing devices for data
collection is easier than ever. Besides workstation keyboards and touch screens, devices for data collection include
barcode, RFID, gauge interfaces, and handheld devices like PDAs. Usage of these devices improves productivity,
reduces manufacturing cycle time, and reduces errors.

Many scanners and measurement devices connect via USB and send data to the application acting as a keyboard.
For this type of keyboard wedge interface, no special additional programming is required.

Sometimes it helps to program special preamble characters on scanners with a keyboard wedge type of interface.
This allows the MES to distinguish a barcode scan from manual typing, and trigger special commands (or parsing)
of a more complex 2D barcode. Most barcodes found on parts (or travelers) are 1D barcodes (UPC, Code 128, Code
39, etc.). 1D barcodes contain a single text string (such as a part number or a serial number) that needs to be read
into a single field value in an MES input screen. 2D barcodes contain a paired list of field names and field values. 2D
barcodes usually need to be parsed into multiple data fields.

Data collection processes should be as close to real time as possible. After the fact data collection is never as
accurate. For example, filling out a time sheet at the end of the day (or end of the week) will not reflect labor costs
as well as sign on/off jobs during the manufacturing day.

Data collection can be performed directly or indirectly. Indirect data collection happens when the system records
several types of data or transactions based on a single direct action by the user. For example, timesheet records
can be automatically recorded based on users signing on and off jobs. Timesheet records can still be adjusted, but
this type of automation is an enormous improvement on labor accuracy. Another example, is recording product
movement based on operations starting in different work centers, and tracking work in-process inventory levels
based on parts issued from inventory and consumed into higher level assemblies. Instead of having additional data
entry transactions for material movement, we can track movement as a side effect of other actions. This lowers the
amount of direct data entry by the user, while increasing the information available about work in-process at the
shop floor.

The MES also sends data to other systems to avoid redundant data entry. For example, labor job clock on/off
transactions are transmitted to ERP (or labor tracking system) in the background. In many cases, there is no need
to have redundant labor clock devices, the MES user interface can act as a labor clock device to the labor system.

We discussed interfacing to machines in the prior section (in relation to running machine programs), but an MES
might also interface to machines for data collection. Integration for direct import of data from machines can help
us minimize the operator bias we might find in manually entered data. However, be careful not to get carried away
with automation. The cost for each interface should be evaluated versus the benefit of speed and accuracy. In some
cases it is just as easy to read a counter on the machine and type it into MES, rather than set up an interface to read
the part count directly from the machine. In other cases, this type of interface might be justified based on volume,
and the importance of accuracy for this particular type of data and manufacturing.

The MES should be able to upload data from machines (via integration interfaces) as a data collection for operation.
This includes machine states, measurements, error codes, and parts counts. The MES must also be able to display
data collected (via machine interfaces) back to the operator on the MES user interface.

Voice technology has come of age. We can have: (a) voice directed commands, and (b) speech recognition that can
translate dictated words and numbers into text strings for data input.

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 What is MES in Complex Discrete Manufacturing

For companies manufacturing products for the Department of Defense

(DoD), an MES must also support a special type of barcoded tag, the UID
tag. UID is a unique identification across the DoD enterprise for uniquely
identifying entities, including things, real property, organizations, and
people. Unique Item Identifier (UII) represents the set of data elements
marked on an item that is globally unique and unambiguous.

The UID mark (a data matrix barcode symbol) is a high density 2-D (ECC
200) matrix style barcode. The UID data contained within the data
matrix is formed by combining the manufacturer's (or enterprise's)
identification with a part number, and/or a serial number which is unique to that one item. The quality standard for
acceptance of the machine-readable coding must meet the specifics of MIL-STD-130, ISO15415, AS9132, or AIM
DPM-1-2006.

The MES must be able to interface with UID databases (such as iGUIDES), which help maintain UID information for
the DoD. The MES must support a flexible UID construction and deconstruction methodology to support the
multitude construct requirements in MIL-STD-130. Both 1D and 2D formats are used as part of UID tags.

There are also radio-frequency identification (RFID) tags. Both active and passive RFID tags are widely used in
packaging, transportation, and warehousing scenarios. RFID tags can also be used to facilitate the tracking of
material movement in the plant. Material issued to the shop floor can be identified to RFID tagged bins, and tracked
as it moves around the plant. Product units can also be placed on bins (or carts) with RFID tags, and tracked as it
moves from one work center to the next. This type of tracking provides more accuracy for how long material is
sitting in staging areas, and can help identify bottleneck areas in the flow through the plant.

2.5.3. Job Buyoff/Signatures and Status

As mechanics and technicians complete jobs they also perform buyoff signatures indicating that the job has been
completed according to work instructions and specifications. Online buyoff verifications eliminate many of the
redundant verifications required in paper-based procedures. Inspectors also "stamp" buyoff signatures online on
inspection steps. Signatures can automatically complete manufacturing jobs, and status is automatically
transmitted to ERP system in the background.

There are several federal guidelines that may apply to different industries for electronic signatures and
authentication. They include 21-CFR-Part-11, and standards published by NIST (National Institute of Standards and
Technology) on electronic authentication and digital signatures.

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2.6. Product and Parts Tracking and Genealogy

Efficient production operations and just-in-time (JIT) practices are dependent upon availability of the proper parts,
at the proper time, and at the proper location. The mismanagement of materials is a potential source of
configuration errors, kitting errors, and uncontrolled inventory. Many of these issues can be avoided with proper
integration between the inventory system and the MES.

2.6.1. Parts Issue, Kitting

Real-time visibility and accurate accounting of Work-in-Process (WIP) inventory requires the tracking of parts from
the time they are issued out of stock, as they are moved through shop floor storage areas, until they are installed
(or used) by a production operation. The location of component parts can be identified to a storage bin, cart, or
shelf. They should be labeled for the target work center, work order, and operation.

The MES should be able to support different types of parts picking (or issuing) scenarios for different types of work
centers:
 MES can generate a parts pick list for each operation that is either sent to the inventory system via interface,
or carried manually to the stockroom by the mechanic.
 Pick list can be generated by the inventory system. Transactions for parts issued out of the stock room to
production can be sent directly from the inventory system to MES via an integration interface.
 Stockroom (or material handling) personnel might do parts kitting for each work order (or operation) before a
job is dispatched to the manufacturing personnel. Kits are then placed in the staging area for each production
work center.

Kitting component parts onto bins (or carts) prior to a job starting, is a proven method for detecting part shortages
early. This also prevents jobs from stopping midway due to part shortages. Accurate kitting can avoid losses,
damage, and miscounting of in-process parts floating around the shop floor.

WIP inventory levels for parts issued to jobs but not installed are also tracked in the MES. Then once installed during
production they are automatically reduced and recorded. The MES might also be transmitting backflushing signals
to the inventory system to record parts issued based on completed product quantities.

2.6.2. WIP Product Tracking

Barcoding of storage areas, storage bins, and parts issued can facilitate tracking the movement of material, and
products on the shop floor.

Product units are tracked by either serial number, lot number or work order number. The physical location of the
product can be derived in the MES by the work order routing. This will show the movement of the product units
from one work center to the next as the operations are completed.

Mayor subassemblies and components manufactured may also be tagged (or pegged) to a specific end-unit-
number, such as an aircraft tail number (or ship number).

2.6.3. Parts Installation Records and Product Genealogy

The product history and audit trail maintained by MES includes a complete genealogy of materials and component
parts used in the assembly. This includes part number (and revision), serial number, lot number, spool number, and
vendor CAGE code.

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 What is MES in Complex Discrete Manufacturing

The MES should provide the ability to verify the as-built BOM against the as-designed (or as- planned) BOM for the
respective engineering change level. This report also verifies that production was performed according to the
applied engineering change notices (ECNs) listed for each product unit.

Manufacturers can identify quality concerns originating downstream in the supply chain. The parts genealogy data
provides forward and backward traceability that is critical for recovering quality costs, narrowing down the scope
in the event of a product recall, and limiting exposure to additional risk associated with low quality suppliers (or
suppliers that do not correct issues promptly).

2.6.4. Material Shelf Life and Expiration

An MES should be able to flag certain material as having an expiration date. The user would then be required to
record and confirm the expiration date before using the material.

A number of manufacturers make products that contain composite materials. Some of the premade composite
materials, and chemicals are temperature-sensitive material that must be stored at a specific minimum refrigeration
temperature to prolong their shelf life. Often materials can sustain only a limited amount of "out time"—that is,
time spent outside cold storage. The MES (or inventory system) must reduce the shelf life of the material anytime
it is taken out of the cooling environment. Cumulative out-time has to be calculated each time the product is
removed from the refrigerator.

2.7. Production Quality Management

Most MES provide built-in quality control procedures for in-process inspection and verification steps, statistical
process control (SPC) procedures, alerts to out-of-control conditions, and integrated handling for discrepancies
found during production. This includes correction, defect containment, and corrective actions to eliminate issue
recurrence.

The cost of parts and labor can accumulate fast in complex products. If the investment in production is high,
products are usually reworked instead of scrapped. The MES must provide rework, repair, and deviation handling
procedures. This ensures that deviations are documented, reviewed, and approved by the appropriate personnel.
Deviation history is also considered part of each product unit's history.

2.7.1. Production Inspection Planning and Execution

Inspection planning defines product inspection, test, and verification requirements. Engineering quality into the
production process means doing more in-process verification and less final inspection. In addition, there should be
more sampling inspections, instead of 100% inspection. Modern practices also encourage that the production
mechanic take more ownership of product quality. This means performing more inspection without the need of an
additional inspector. To achieve these goals, quality must be integrated into the production process, and therefore
into the MES. The MES can enforce completion of in-process inspection steps and signatures before the next
operation is allowed to start.

Product critical and key characteristics flow down from the engineering specifications into the inspection
requirements. It is important to maintain a cross reference of each inspection requirement, to the respective
revision of the engineering models and characteristics facilitate change management.

Some measurements require special gauges. Inspection instructions can call out specific gauge types (or
measurement equipment), and can also require calibration verification. It is important to record which tools were
used for each measurement, in case an issue is found later with a specific gauge.

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 What is MES in Complex Discrete Manufacturing

Some measurements may be flagged as requiring statistical process control (SPC) oversight. The MES collects actual
measurements across different work orders, and displays SPC control charts during production. In addition to
alerting for out-of-spec conditions, the MES should be able to use rules, such as the Western Electric rules, to alert
for SPC out-of-control conditions.

Major product or process changes should trigger additional inspections validating that the manufacturing process
still produces the expected results according to the engineering specifications. This process is also called First Article
Inspection (FAI) (or Product Process Verification (PPV)) in the Aerospace industry, and is required by AS9100
standards.

As inspection and test steps are reached in the job sequence, the MES should dispatch these tasks to the respective
inspectors via online "callboards" (or inspector dispatch lists). The MES can track and report if some areas are
experiencing delays due to a lack of inspectors.

Inspection, test, and final inspection results are stored, along with production data for each product unit (or lot),
and are available online. Some inspection and test results might be required to be delivered with the final product
to the customer, or uploaded to the supplier portal in PDF or XML format.

2.7.2. Product Configuration Verification

A very important role of the manufacturing system is to ensure that the product is built to the correct engineering
specifications. From a quality management point of view, it is necessary to validate that the product was indeed
manufactured to specifications. Some of the tools used for this function include:

Reconciliation of as-built to as-designed configuration, with deviation approvals where necessary.

The Device History Record (DHR aka. As-Built Report), includes a list of Engineering Change Notices (ECNs)
incorporated into each product unit.

This type of product documentation might need to be delivered to the customer along with each product unit.

2.7.3. Nonconformance and Defect Management

In complex discrete manufacturing, the management of nonconformance conditions that are found during
production go beyond counting defects, scrapped material, and calculating yields. The MES must provide for the
disposition and management of nonconformance findings (aka. discrepancies). And it must incorporate the
deviation approvals along with the execution of the planned manufacturing process.

Defect containment actions may include corrective action requests sent to suppliers, orders for assessment of
products and materials in inventory, alerts to potentially affected production orders in process, and product recalls
(or warnings) issued to customers.

When a nonconformance to engineering specifications is detected during inspection, it must be documented and
routed through a disposition and approval process. This will determine if product (or component) must be scrapped,
returned to vendor, requires rework or repair, or can be used as- is. The integration of production and quality
management can ensure that deviation instructions for rework or repair cannot be skipped by the mechanic, before
continuing with the production process.

Work flow processes need to support different types of discrepancy disposition and approval routings for the
different types (and severity) of issues found during production. Some issues might require escalation to product
engineering for approval. While others might just need approval by the local quality assurance personnel.

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 What is MES in Complex Discrete Manufacturing

Defects and nonconformance incidents are classified by defect type, cause type, and responsible department (or
work-center). Providing this data can help identify areas for improvement.

Corrective actions can be initiated from MES to permanently resolve repeating issues documented in discrepancies.
Corrective Actions should be linked to the related discrepancies to track improvements of designs, processes and
suppliers.

2.8. Production/Plant Performance Analysis

Making informed management decisions requires good performance metrics for the organization. Several studies
have revealed that a manufacturer's success is largely correlated with how effectively the organization measures
operational performance. At the same time, studies reveal that only a fraction of manufacturers have effective
procedures in place for capturing and measuring performance. MES provides up-to-the-minute reporting of actual
manufacturing costs and results, along with the comparison to past history and expected business results.

An MES provides a platform for consistently collecting reliable real-time data from day-to-day operations. Then it
automatically rolls this data into reliable departmental and enterprise level performance metrics, and Key
Performance Indicators (KPIs). The MES is already compiling data for process control and regulatory compliance
purposes. As a result, there is minimum redundant data collection solely for the purposes of metrics. The
performance analysis may be prepared as a daily or weekly report, or presented on-line on demand.

Questions on the mind of the management team might change periodically depending on the business climate, but
usually include questions such as the following:
 Do we have the resources to deliver what is due?
 What constraints are holding us back?
 Are we overrunning planned costs?
 Where should we invest for improvement?
 How much do we invest in quality?
 How much are errors and rework costing us?
 What percent of poor quality is due to supplier versus internal?
 How quickly do we respond to unplanned issues?
 Are process improvements effective? Are we really improving?
 Can I demonstrate compliance? Am I ready for regulatory audits?

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 What is MES in Complex Discrete Manufacturing

2.8.1. Schedule/Capacity Performance Analysis

Understanding the real potential capacity of a
manufacturing facility (or system) can be a challenge.
The actual capacity can be masked by many factors,
such as inadequate buffer inventory, labor issues,
equipment downtime, part shortages, or poor quality.
Metrics can help identify areas of poor performance,
and provide the ability to drill down to dimensions
that help identify where constraints in the plant are
affecting capacity and schedule.

Schedule and capacity metrics may include the

following:
 Throughput Rate = Units produced per calendar day
 Personnel Productivity = Units produced per labor hour
 Performance to Standards = (Operating Time/Total Pieces)/(Ideal Standard Time per Piece)
 Labor Performance = Standard Labor Hours/Actual Labor Hours
 Late Days to Schedule Date
 Cycle Time Efficiency = Value Added Cycle Time/ Total Cycle Time

Lean manufacturing principles include the ability to provide easy visibility to production personnel, and to issues at
the shop floor. Andon dashboards can provide visibility to each work center on how the daily production rate is
comparing to the scheduled goal.

2.8.2. Cost and Quality Performance Analysis

Six Sigma practitioners use the DMAIC (Define, Measure, Analyze, Improve, and Control) process to systematically
determine the best areas for improvement, and the variability for reduction in a manufacturing process. Lean
practitioners refer to the Toyota problem solving methodology, and to kaizen events. Any of these methodologies
can be supported with metrics derived from manufacturing data.

MES can provide performance analysis reports based on data collected during manufacturing and defect reporting.
This information can help identify probable causes behind poor performance, by correlating different product lines,
components, resources, or processes. Pareto charts are effective tools for this type of analysis.

Good metrics can also help understand the organization's cost of quality. This includes both the cost of proactive
measures, and the cost based on the consequences of poor quality. Measures of cost and quality can include the
following:
 Yield = Good Pieces / Total Pieces
 Labor Loss Rate to Poor Quality = 1 - (Rework Labor Hours)/Total Labor Hours)
 Component Defect Rate
 Customer Rejects/Return Material Authorizations
 Number of Safety Incidents per Year
 Number of Significant Findings in Audits per Year

Continuous monitoring and analysis of KPIs provides a base for production improvement. The performance
indicators can be evaluated in different breakdowns (by work center, product group, process type, or supplier),
analyzed, and used to identify areas for improvement or corrective action.

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 What is MES in Complex Discrete Manufacturing

2.9. Systems Integration Services

Integration of plant floor systems with engineering and business systems, allows a streamlining of business
processes that span across the organization. This includes product and process change management procedures.
The discipline and agility acquired through enterprise systems integration can provide significant competitive
advantage to an organization.

Many leading manufacturers are integrating their manufacturing system to the Enterprise Resource Planning (ERP),
and Product Lifecycle Management (PLM) systems. PLM handles the product definition (including specifications and
geometry), ERP handles market facing activities (including planning demand fulfillment, purchasing, and inventory
control), and MES handles product realization activities (including work execution, work-in-process tracking, and
quality management). The tight integration of these systems can compress time-to-market for both new product
and major product upgrades.

To facilitate integration across enterprise systems, an MES should provide integration interfaces that support
integration via XML, and services conforming to guidelines published by standards groups. These include ISA
(International Society of Automation), OAGi (Open Applications Group), and OPC Foundation.

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 What is MES in Complex Discrete Manufacturing

2.9.1. Engineering Product and Process Design Systems

The integration of engineering systems (including CAD and PLM systems), to the manufacturing system can assure
that engineering design changes are correctly incorporated into the manufacturing process definition. The
integration also ensures that products in-process are properly updated with the latest engineering revision level,
assuring that the "as built" configuration matches the "as designed" configuration.

Engineering system integration should include the following interfaces:

 Part/Material Number and Attributes
 Design Documents including Drawings, 3D Models, and Process Specifications
 Bills of Material (BOM)
 Engineering Change Notices (ECN)

2.9.2. Business Procurement/Inventory and Financial Systems

Integration between the manufacturing system and Enterprise Resource Planning (ERP) software should include the
following integration interfaces:
 Departments, Work Centers
 Personnel, Skills and Certifications
 Part Substitutes and Procurement Data including Suppliers
 Work Order Routings
 Work Order Release to Production
 Work Order Operation Schedule Updates
 Work Order Operation Status
 Work Order Splits
 Parts/Material Issues to Work Order or Operation
 Job clock on/off transactions

The integration between ERP and MES can enable more efficient practices. For example, scheduling and status can
be performed at an operation level to allow parts issued at the operation level, instead of the work order level. Job
clock-on/off can be transmitted to ERP (or labor tracking system) from MES to allow redundant labor clocks to be
eliminated.

2.9.3. Enterprise Business Intelligence

Many organizations want to benchmark performance using Key Performance Indicators (KPIs) at an enterprise level.
Many KPIs are composite indexes that look across different aspects of the organization including sales, inventory,
cost, suppliers, and customer managing systems and metrics. To consolidate these different data sources into one
enterprise data warehouse, there are two primary alternate approaches: federation and integration.

Integration involves physical consolidation of the data. This means the data may be transformed, converted, and/or
enhanced to maintain the interrelationship. Federation typically implies a more temporary integration of the data.
For example, a query is executed that requires data to be accessed (and perhaps joined), from multiple
heterogeneous environments. After the queries are done, the original data still resides within the original source
environments. In federation, the joined results are not duplicated in permanent data storage.

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 What is MES in Complex Discrete Manufacturing

The MES datamart should facilitate the roll up of data into an enterprise data warehouse. If the MES datamart
provides clean data with proper dimensions, it helps in creating a federated scheme for the enterprise.

KPIs that require data from both ERP and MES data sources include:
 Perfect Order - Considers work order accuracy (quantity, model, revision); component issue accuracy (part
number, revision, quantity); on-time delivered product; defect free delivered product (no warranties claims);
and invoice and product documentation accuracy rate.
 Inventory Turnover (aka Inventory Turns) - Considers Cost of Goods Sold from stock sales during the past 12
months.
 Supplier Rating - Considers price, schedule, and quality history then compares with supplier choices for future
purchases.

2.9.4. Enterprise Continuous Improvement Management

A formal methodology for implementing and tracking continuous improvement is an important part of the overall
enterprise quality management system. Continuous improvement tracking is done via a corrective and preventive
action (CAPA) process.

The MES provides data that is used to determine areas for improvement. Corrective actions can be initiated to
address (a) recurring nonconformance issues, (b) supplier issues, (c) issues found during procedural audits, and (d)
poor performance areas. It is important to be able to tie corrective actions back to the original issues within an
order, to verify effectiveness of the implemented actions. Warnings and containment actions within MES may be
tied to the completion of specific corrective actions.

Investigations performed for root-cause analysis and procedural audits require access to production history
information. This information includes details about who did what, when, and how it was done. In addition, it shows
information about deviations from the standard configuration and processes.

3. A Few Other Considerations

This document identifies functional requirements for MES in complex discrete manufacturing. These requirements
form a foundation for software selection, but there are a few other dimensions to evaluating a software solution
and a vendor to support the organization. The questions below are examples of other important considerations
when evaluating software technology and vendor capabilities:
 Is the complete MES functionality provided in a single tightly integrated system?
 Does the MES provide configuration capabilities for roles, workflow, additional fields, reports, alerts and
dispatch lists?
 Does the MES provide an integration platform and the required interfaces for integration to enterprise systems
including ERP, HR, and PLM systems?
 Does the MES vendor have expertise working with similar manufacturing companies in your specific industry?
 Can the MES software be supported after implementation with the skills available in your information
technology team?
 Does the MES vendor have an annual forum or conference where your organization can exchange best practices
with other users of the product in your industry?

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The functionality requirements provided in this document provide a basis for an evaluation of commercial MES
software solutions in the market. These requirements can be merged with additional specific requirements from
your organization and shared with a vendor as part of a qualification process to down select MES software. This
process is often formally done by sending a Request for Information (RFI) document to several candidate software
vendors.

Selecting a software solution with a good fit to the organization's business processes is a very critical factor to
success in an MES implementation project. Just as important will be the organization's commitment of resources to
the project, and the management of risk during implementation to keep the project focused to the original project
goals.

About Author
Conrad Leiva is currently VP Product Marketing and Alliances at iBASEt. His career has included consulting with
many Aerospace & Defense companies on how to streamline the paperwork and information flow among
Engineering, Quality, Production and Supply Chain disciplines. Recently, Conrad has focused his work on
Manufacturing Intelligence and the integration between PLM, ERP and manufacturing systems working with PLM
and ERP partners.

Conrad is a graduate of M.S. Industrial Engineering from Georgia Tech and holds certifications in MES/MOM
Manufacturing Operations Management Methodologies, Product Marketing, and is a Certified Quality Auditor.
Conrad is also a board member at MESA (Manufacturing Enterprise Systems Association) and a frequent contributor
to MESA publications.

About iBASEt
iBASEt is a leading provider of software solutions to complex, highly regulated industries like Aerospace, Defense,
Nuclear, Industrial Equipment, Electronics, Medical Devices, and Shipbuilding.

iBASEt's Solumina software streamlines and integrates Manufacturing Execution System and Operations
Management (MES/MOM), Maintenance, Repair and Overhaul (MRO), and Enterprise Quality Management System
(EQMS) for operations and supplier quality management. Solumina is implemented by industry leaders including
BAE Systems, EADS, General Dynamics, Lockheed Martin, Parker Hannifin, NASA, Northrop Grumman, and United
Technologies.

More papers and resources available for download at the Library section of iBASEt's website www.ibaset.com.

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CONTACT US

[email protected] 949.598.5200
27442 Portola Pkwy Suite 300
Foothill Ranch, CA 92610, USA
www.ibaset.com 949.598.2600

iBASEt is a leading provider of software solutions to complex, highly regulated industries. iBASEt’s Solumina software
streamlines and integrates Manufacturing Execution Systems and Operations Management (MES/MOM),
Maintenance, Repair and Overhaul (MRO)and Enterprise Quality Management Systems (EQMS) for operations and
Supplier Quality Management. Solumina is implemented by many industry leaders in complex manufacturing and MRO
industries, including agencies of the U.S. Government.