Back to Blog
Industry Insights9 min read

Manufacturing Execution Systems: ERP Integration Benefits

GW

Gary Wood

December 1, 2023

Manufacturing Execution Systems (MES) manage production operations on the shop floor, tracking production in real-time, managing work orders, and ensuring quality. ERP systems manage business operations including planning, inventory, and financials. Integrating MES with ERP creates seamless information flow between shop floor operations and business systems, enabling better visibility, control, and efficiency.

Real-Time Production Visibility

MES-ERP integration provides real-time visibility into production operations from ERP systems. Production status, work order progress, and machine utilization flow from MES to ERP, enabling accurate production planning and scheduling.

Real-time visibility enables ERP systems to adjust production plans based on actual shop floor performance. This integration improves production planning accuracy and enables proactive management of production issues.

Automated Work Order Management

Integration enables automated work order creation and management. ERP systems generate work orders based on production plans, and work orders flow to MES for execution. Production completion updates flow back to ERP automatically.

Automated work order management eliminates manual data entry, reduces errors, and speeds up production processes. Work order status is always current in both systems, enabling accurate tracking and reporting.

Material Consumption Tracking

MES tracks material consumption during production, and this data flows to ERP for inventory updates. Real-time material consumption tracking ensures accurate inventory levels and enables timely material replenishment.

Accurate material consumption data supports inventory management and cost accounting. ERP systems can automatically update inventory and calculate production costs based on actual material usage.

Quality Management Integration

MES captures quality data during production including inspection results, test data, and non-conformance information. This quality data flows to ERP for quality management and reporting.

Quality integration enables comprehensive quality management that spans from shop floor to business systems. Quality issues can trigger ERP workflows for material returns, rework orders, or customer notifications.

Production Costing

MES provides detailed production data including labor hours, machine time, and material usage. This data flows to ERP for accurate production costing and financial reporting.

Accurate production costing enables better pricing decisions, profitability analysis, and cost control. ERP systems can calculate standard costs versus actual costs based on MES production data.

Production Scheduling

ERP production plans flow to MES for detailed scheduling and execution. MES considers shop floor constraints, machine availability, and material availability when scheduling production.

Production scheduling integration ensures that ERP plans are executable and that MES schedules align with business priorities. This integration improves on-time delivery and production efficiency.

Traceability and Compliance

MES maintains detailed production records including lot tracking, serial numbers, and production history. This traceability data flows to ERP for compliance reporting and customer requirements.

Traceability integration enables organizations to track products from raw materials through finished goods, supporting regulatory compliance and quality management.

Performance Analytics

Integrated MES-ERP data enables comprehensive production analytics that combine shop floor data with business metrics. Organizations can analyze production efficiency, quality trends, and cost performance.

Performance analytics enable data-driven production management and continuous improvement. Dashboards can combine MES production metrics with ERP financial and planning data for comprehensive visibility.

MES-ERP integration creates seamless information flow between shop floor operations and business systems, enabling better visibility, control, and efficiency. By integrating these systems, organizations can improve production planning, reduce costs, ensure quality, and achieve better manufacturing performance. This integration is essential for modern manufacturing operations that require real-time visibility and control.