Our three-part guide takes you step-by-step through the world of Manufacturing Execution Systems – from the basics to cloud technology.
Definition, core functions, and application areas of Manufacturing Execution Systems.
Current ArticleTransparency and efficiency in manufacturing through modern MES software solutions.
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A Manufacturing Execution System (MES) is a computer-based information system that monitors, documents, controls, and optimizes manufacturing processes in real-time. As a central link between the ERP level and the shop floor, an MES connects the machine level (OT) with the enterprise level (IT), helping companies maximize production efficiency, ensure quality, and reduce costs.
"A dynamic information system that enables the effective execution of manufacturing operations."
"A process-oriented, integrated information system to support manufacturing control and monitoring."
Summary: An MES acts as the "nervous system" of production, continuously collecting and processing data to provide real-time decision-making support. It serves as the interface between the planning and execution levels of manufacturing-relevant processes.
The evolution of Manufacturing Execution Systems can be divided into four distinct phases, reflecting the technological maturity and expanding scope of these systems.
In the 1970s, the first rudimentary systems for Production Data Acquisition (PDA) and Manufacturing Data Acquisition (MDA) emerged as precursors to modern MES solutions. These early systems primarily focused on the manual collection of operational and machine data and operated largely in isolation without true integration into the enterprise infrastructure. At that time, these systems were known as CIM (Computer-Integrated Manufacturing).
A significant milestone was the founding of the Manufacturing Enterprise Solutions Association (MESA) in 1992, which for the first time formulated a unified concept for manufacturing management systems. In 1997, MESA defined the first comprehensive MES model with 11 core functions, laying the groundwork for further standardization.
With the development of the ISA-95 standard (IEC 62264) starting in 2000, an internationally recognized reference model for the integration of enterprise and production systems was established. In parallel, the VDI in Germany published Guideline 5600 in 2007, codifying a specifically German understanding of MES.
With the rise of Industry 4.0, MES systems have undergone a fundamental transformation. Modern MES solutions leverage Cloud Computing, Industrial Internet of Things (IIoT), Big Data Analytics, and Artificial Intelligence for process optimization. The latest evolution is cloud-native MES platforms, which offer unprecedented scalability, flexibility, and implementation speed.
Conclusion: The development of MES systems reflects the ongoing digitalization of the manufacturing industry. From isolated data collection systems, MES solutions have evolved into integral components of the digital enterprise, increasingly operating in a cloud-based, data-driven, and intelligent manner.
In the classic automation pyramid, the MES occupies a central position. This strategic placement between the operational level (field and control level) and the enterprise level (ERP systems) makes the MES a critical link, enabling vertical integration and ensuring seamless information flow.
With Industry 4.0, the traditional model of the automation pyramid is evolving. The rigid hierarchy is increasingly giving way to more flexible, network-like structures where information flows horizontally across value chains. Modern MES systems are accordingly developing into open platforms that support not only vertical but also horizontal integration, thus becoming the backbone of the Smart Factory.
Note: The automation pyramid provides the foundation for integrating business and production processes. MES systems act as a critical link between the ERP and shop floor levels.
With Industry 4.0, the traditional model of the automation pyramid is evolving. The rigid hierarchy is increasingly giving way to more flexible, network-like structures where information flows horizontally across value chains. Modern MES systems are accordingly developing into open platforms that support not only vertical but also horizontal integration, thus becoming the backbone of the Smart Factory.
Discover all the benefits of modern Manufacturing Execution Systems in practice with our free Cloud MES trial. Experience the powerful features and immediate advantages of cloud-native MES solutions directly in your own production environment.
START FREE TRIALThe VDI Guideline 5600 is a key reference for MES functionalities in the German-speaking region. Unlike the MESA model, which historically defined 11 (later 8) functions, the VDI Guideline structures MES functionalities into 10 core areas, which are described below along with their key benefits.
Detailed planning transforms the coarse planning specifications from the ERP system into a precise, resource-specific schedule. Detailed control then monitors and manages execution in real-time, dynamically responding to deviations.
Measurable Benefits:
Equipment management encompasses the administration of all production resources, such as machines, tools, fixtures, and personnel. It ensures that the right equipment is available at the right time.
Measurable Benefits:
Material management oversees the flow of materials in manufacturing, from procurement to the finished product. It includes demand-driven material provisioning, inventory tracking, and material traceability.
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Personnel management includes the planning, control, and documentation of personnel deployment in manufacturing, encompassing time tracking, shift planning, and qualification management.
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Data collection forms the foundation of any MES system, encompassing the systematic gathering of all manufacturing-relevant data—from machine statuses and quality data to personnel hours and material consumption.
Measurable Benefits:
Performance analysis systematically evaluates collected manufacturing data to determine key performance indicators (KPIs) and identify optimization potential. It includes the calculation and visualization of critical production metrics such as OEE, lead times, or scrap rates.
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Quality management within an MES encompasses the planning, control, monitoring, and documentation of all quality-relevant aspects. It integrates inspection plans, inspection equipment management, Statistical Process Control (SPC), and error analysis.
Measurable Benefits:
Information management ensures the targeted provision of all production-relevant information. It includes managing documents such as work instructions, inspection regulations, and drawings, as well as collaborative features for information sharing.
Measurable Benefits:
Order management oversees the entire lifecycle of manufacturing orders, from receipt from the ERP system to feedback upon completion. Real-time transparency of the current order status is critical.
Measurable Benefits:
Lifecycle management involves managing production-relevant master data and their changes throughout the entire product lifecycle. Change management for products and processes is particularly significant.
Choosing the right MES architecture significantly impacts the flexibility, scalability, and future-readiness of manufacturing management. Three fundamental architectural approaches have emerged: Cloud-Native MES, Cloud-Hosted MES, and On-Premises MES. The following comparison highlights the key differences, strengths, and weaknesses of each approach.
Cloud-Native MES systems represent the most advanced architectural variant. Designed from the ground up for cloud environments, they leverage cutting-edge technologies such as microservices, container orchestration, and distributed data architectures to deliver maximum performance and flexibility.
Cloud-Native MES systems are the only architectural variant that offers the agility and scalability needed to keep pace with the rapid evolution of the manufacturing industry. They enable seamless integration of new technologies such as AI, machine learning, and advanced analytics, turning production data into real competitive advantages.
On-Premises MES systems are installed and operated on a company's own IT infrastructure. They represent the traditional approach to MES implementation, which still prevails in many companies.
Cloud-Hosted MES systems (also known as "Lift-and-Shift") are based on traditional MES applications that are operated in a cloud environment such as AWS, Azure, or Google Cloud. These are often legacy MES architectures with minimal adaptations.
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MES and ERP systems are complementary components of the digital enterprise. While ERP systems focus on business processes and long-term planning, MES systems manage the operational execution of manufacturing processes in real-time. Their seamless integration is essential for efficient production management.
ISA-95 (also known as IEC 62264) is the internationally recognized standard for the integration of enterprise and control systems. It defines a functional hierarchy and standardized data models to ensure consistent communication between ERP and MES systems.
A manufacturing company integrates its ERP system (e.g., SAP) with a Cloud-Native MES. The ERP system transmits production orders to the MES, which then schedules and monitors the execution in real-time. Upon completion, the MES sends production data (e.g., material consumption, production times) back to the ERP system for inventory updates and cost calculations. This closed-loop integration reduces lead times by 25% and improves delivery reliability by 20%.
A modern MES optimizes production processes through real-time monitoring and control, leading to significant productivity gains.
By integrating quality management into production processes, an MES ensures consistent product quality and reduces defects.
An MES drives cost efficiency by optimizing resource utilization and minimizing waste.
International standards and certifications ensure that MES systems meet global quality, security, and interoperability requirements, providing a foundation for reliable and compliant manufacturing operations.
Standardizes the integration of enterprise and control systems, defining functional hierarchies and data models for MES-ERP communication.
An international standard for information security management systems (ISMS), ensuring that MES systems protect sensitive production data.
Focuses on cybersecurity for industrial automation and control systems, critical for securing MES deployments in connected environments.
A quality management standard that ensures MES systems support consistent manufacturing processes and continuous improvement.
A Manufacturing Execution System (MES) is an indispensable tool for modern manufacturing. It bridges the gap between planning and execution, enabling real-time control, transparency, and optimization of production processes. From its historical evolution to its strategic role in the automation pyramid, an MES delivers measurable benefits in productivity, quality, and cost efficiency. The choice of architecture—whether Cloud-Native, Cloud-Hosted, or On-Premises—depends on specific business needs, but Cloud-Native MES systems offer the greatest potential for future-proofing manufacturing operations. By integrating seamlessly with ERP systems and adhering to international standards, a modern MES empowers manufacturers to thrive in the era of Industry 4.0.
Discover the Power of MES – Start Your Free Trial Now!Next Steps: Continue your MES journey by exploring MES software solutions and Cloud-Native MES in the next parts of our guide.
An ERP system focuses on business processes such as finance, procurement, and long-term planning, while an MES manages the operational execution of manufacturing processes in real-time, including production scheduling, monitoring, and quality control.
A Cloud-Native MES offers superior scalability, flexibility, and innovation speed compared to traditional architectures. It leverages modern technologies like microservices and container orchestration, enabling seamless integration and rapid adaptation to changing production needs.
An MES improves efficiency by providing real-time visibility into production processes, optimizing resource utilization, reducing downtimes, and enabling data-driven decision-making, leading to productivity gains of up to 25%.
Industries with complex manufacturing processes, such as automotive, aerospace, electronics, pharmaceuticals, and food and beverage, benefit significantly from an MES due to their need for precision, traceability, and efficiency.
Implementation time varies by architecture: Cloud-Native MES systems can be deployed in 4-8 weeks, Cloud-Hosted in 4-6 months, and On-Premises systems in 9-12 months, depending on complexity and customization needs.
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