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Logistics Management for Order-Ordering Enterprises Based on Manufacturing Execution Systems

2026-04-06 07:28:44 · · #1
With the increasing market competition, more and more companies have realized that efficient logistics management is an important means to reduce product costs, improve service levels, and shorten delivery time, and can ultimately strengthen the company's overall competitiveness. Logistics management has been regarded as the "third source" of profit for companies, in addition to marketing and reducing consumption. For companies, logistics refers to the entire process from raw materials entering the production system, through a series of physical and chemical transformations such as storage, handling, loading and unloading, processing, and assembly, to outputting the production system. The unified organic whole formed by the cooperation and coordination of each link in this process is called the logistics system. The logistics systems of different types of companies have their own characteristics, which leads to differences in logistics management due to different types of companies. This article focuses on order-oriented design companies (ETO) and explores their logistics management ideas and methods. It proposes to introduce the functional implementation technology of Manufacturing Execution System (MES) into the logistics management of ETO companies, which will help improve the logistics level of order-oriented design companies. 1 Problems in ETO Company Logistics Management Due to their own characteristics, ETO companies have some problems in logistics management. The analysis is as follows: (1) A major characteristic of the company's production is multi-variety and small-batch production. Each product is generally highly customized to suit a specific customer, with a small demand and a complex product structure, resulting in poor material versatility. Due to the variety, small quantity, and poor versatility, material management is heavy and demanding. (2) Enterprises' products must be designed according to customer requirements. The functions, specifications, and quantity requirements of many materials used in the design stage are not very clear. At the same time, if the customer's requirements for the product change, many materials will change in function, specifications, and quantity. This also brings inconvenience to logistics management. (3) The production process of an enterprise generally goes through multiple stages such as design, manufacturing, installation, and debugging, and each stage will generate different material requirements. The process of each product may also be different. With many product varieties, a large number of different processes will be generated. This brings great complexity to logistics management. (4) The market demand of enterprises is highly uncertain. Customer demand expressed in the form of orders often has priorities. Product plans are often disrupted due to changes in priorities. Logistics management will inevitably be affected. In order to solve these problems, enterprises often use information technology to build a logistics management information system suitable for themselves. One approach is to develop a single-function logistics management information system, possessing only logistics management capabilities and no other functions. Another approach is to integrate the logistics management information system as a sub-module within a more complex and comprehensive enterprise management information system. This system, in addition to logistics management functions, also possesses other capabilities. A representative example is MRP. 2. Introduction to Manufacturing Execution Systems For ETO (Enterprise-to-Order) companies, the focus of logistics management is the workshop, primarily managing the flow of materials and information occurring there. Therefore, it can be said that the enterprise logistics management information system should be workshop-oriented. To complete orders on time, ETO companies have very strict time requirements. The logistics management information system requires precise control over the processing steps of parts. Besides specifically determining the input and output quantities of each step, it also requires that the input and output times of each step be accurate and graded, thereby compactly and rationally arranging the tasks of each work center. However, existing commercial software with logistics management functions, such as MRPII, can only plan down to the part level, not the process level; or some, while planning down to the process level, only have daily accuracy because the system's production calendar uses days as the smallest time period. During the production process, there are frequent information exchanges between customers and enterprises, such as customers inquiring about product production progress. To provide timely feedback on this information, ETO enterprises need to accurately record the location and completion status of products (including blanks, parts, components, and external parts). This requires the enterprise's logistics management information system to have product tracking capabilities. ETO enterprises have many product processing steps and long processing routes, requiring a long time from blank input to finished product output, necessitating real-time monitoring of the flow process. However, current logistics management information systems do not yet have product tracking and real-time monitoring capabilities. Based on the above analysis, this paper argues that to effectively construct a logistics management information system for ETO enterprises, it is necessary to introduce a new technology: Manufacturing Execution System (MES). 3. Introduction to Manufacturing Execution Systems In 1990, the Advanced Manufacturing Research Institute (AMR) in the United States first proposed the concept of MES. AMR defines MES as "a shop floor-oriented management information system located between the upper-level planning and management system and the lower-level industrial control." Based on extensive research of numerous enterprises, AMR proposed a three-layer enterprise integration model in 1992 to clearly express the position of MES within the enterprise information system. (See Table 1). As can be seen from the above, MES primarily targets activities occurring on the shop floor. It needs to collect a large amount of real-time data during the production process and process real-time events promptly. Simultaneously, it maintains bidirectional communication capabilities with the planning and control layers, receiving relevant data from both layers and feeding back processing results and production instructions. MES bridges the information gap between the planning and management layers and the lower-level industrial control. To effectively guide enterprises in building MES, another international organization, MESA, published a functional model of MES in 1997. (See Figure 1). Applying MES functional implementation technology to ETO (Enterprise-to-Organize) enterprise logistics management allows for precise control of materials down to each process step and complete recording of material flow. It also expands the functionality of logistics management to include downstream enterprises of the ETO enterprise, namely, its customers. 4. Application of MES Technology in Logistics Management Based on the above analysis, this paper argues that some functions of MES can be introduced into the logistics management of ETO enterprises: detailed planning, production scheduling, document management, and product tracking. 4.1 Detailed Planning and Production Scheduling Detailed planning and production scheduling are responsible for generating production operation plans and providing job sequencing functions based on order priority and related to specified production units. To determine the exact start/end time and input/output of each process in part processing, and to improve time accuracy to the hour and level, detailed input-output planning for the part's processes is required, along with optimized job scheduling. The flowchart for formulating input-output plans is shown in Figure 2. ETO enterprises have a huge number of parts; calculating for each part would be extremely labor-intensive. Furthermore, for non-critical parts, less precise control information is needed, and production can be arranged flexibly. Therefore, in practice, calculations are performed on critical parts to obtain precise control information. After formulating the process input/output plan, the jobs are optimized and scheduled. The scheduling is based on order priority. From a mathematical programming perspective, job optimization scheduling can be expressed as optimizing one or more objective functions under constraints of equality or inequality. A typical modern job scheduling problem is to evenly distribute jobs across work centers, rationally arrange processing order and start times to satisfy conditions, and simultaneously optimize performance indicators. Many job scheduling methods exist, such as operations research methods, simulation-based methods, analytical model methods, and rule-based methods. Rule-based methods do not require extensive prior data preparation and are well-suited for ETO (Enterprise-to-Organize) companies with diverse product types, small batches, and frequently changing process routes. 4.2 Document Management and Product Tracking: Document management and product tracking are responsible for managing documents related to production units. This part also includes maintaining and storing historical production data, providing information on the location and status of workpieces at any given time. ETO companies have highly complex business processes, especially those involving logistics management. For example, procurement typically includes purchasing plan issuance, purchase order sending, material arrival, quality inspection, and material warehousing, with very close logistics connections. Each business stage usually involves a document used to store data generated during the business process. For example, in procurement operations, documents are used to store data generated in various operations and to reflect the logical relationships between business processes. For example, a processing order not only records information such as tools, materials, processing capacity and lead time, but also explains which processing steps (process route) are required. Therefore, by effectively managing documents, one can gain a perceptual and clear understanding of the entire logistics process. As materials flow from one work center to another, documents always accompany them. Through documents, the location of materials can be determined, thereby enabling material tracking. Effective document management requires corresponding rules. These include four aspects: (1) Document numbering rules Each document should have a number that distinguishes it from any other document of the same type. The document numbering method is determined by the enterprise based on the actual situation. In order to make the document numbering adaptable to multi-user operations in a concurrent environment, when generating a new document number, it is required to query the fields of the corresponding database table before generating a new document number each time to ensure its consistency. (2) Document creation rules Generally, users input relevant data into documents through the application's user interface. However, when processing certain business processes with strong connections, information from other related documents can be used to generate all or most of the information for creating a document. This not only facilitates processing and reduces workload but also reflects the close logical relationship between documents. (3) Document saving rules Use transaction processing to ensure the consistency of data in various database tables. When saving document data, the system may operate on multiple database tables simultaneously. For example, when saving an inbound order, it is also necessary to modify the processing flag field of the incoming inspection report. Therefore, in order to ensure the consistency of database data when saving data, the concept of database transactions should be used to submit the operations of multiple tables to the database in one transaction. In actual implementation, triggers should be used as much as possible, and the transaction processing mechanism of the DBMS should be used to ensure the consistency and integrity of the database, reduce the complexity of program code, and make full use of the database's own functions. (4) Document modification and deletion rules Generally, once a document is created and enters the business process, it is not allowed to be modified or deleted. In practice, the processing flag field in the document header is used to check the document status. Once it is found that a document has become the basis for other documents or has been reviewed by auditors, modification and deletion are not allowed. The application program ensures the consistency and integrity of the database data. 5. Conclusion The importance of logistics management has been widely recognized by academia and industry. Numerous scholars and enterprises have conducted extensive and in-depth research on logistics management. The construction of a company's logistics information system should be tailored to the company's specific characteristics and can draw on the implementation technologies of other information systems. This paper proposes the idea of ​​constructing a logistics management information system for ETO (Enterprise-to-Organize) companies using the functional implementation technology of Manufacturing Execution Systems (MES), and provides a detailed introduction. This is a meaningful exploration for the construction of logistics management information systems. Further research will combine actual enterprises for more in-depth analysis.
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