Practical Fundamentals of E-Manufacturing, MES and Supply Chain Management

Category: 
Information Technology

 

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WHAT IS e-MANUFACTURING, MES AND SUPPLY CHAIN MANAGEMENT?

Supply chain management involves the optimization of the way in which a company plans the production of goods or services, procures raw materials from various suppliers, manufactures the goods or services, delivers it to customers and handles returns.

E-Manufacturing starts with an order for a product and then encompasses the entire manufacturing cycle of the product. Manufacturers need a highly responsive supply chain and manufacturing system to ensure that they meet the high expectations of their customers who, in today’s economy, demand absolutely the best service, price, delivery time and product quality.

Manufacturing Execution Systems (MES) provide up-to-the-minute mission-critical information about production activities across the factory and supply chain via communications networks (e.g. Local Area Networks), resulting in the optimisation of activities throughout all aspects of the manufacturing process. MES accomplish this task by guiding, initiating, responding to, and reporting on plant activities in real time, by using current and accurate data. This rapid response to changing conditions, together with a focus on reducing non-profitable activities, lead to more efficient plant operations and processes.

MES reduces cycle times, levels of WIP (Work In Progress), data entry time, paperwork and scrap. It also improves utilization of plant capacity, process control quality, arrangement of plant activities, tracking of orders and customer service.

Implementation of MES invariably results in improved returns on production assets, on-time delivery, faster inventory turnover, larger net profits (through increased cost reduction) and improved cash flow.