If you've ever bought a Dell computer, you've probably had this experience: you first determine the model, configuration, and accessories you need online, then place your order and pay. You can then see the Dell factory production line starting to process your order. The Dell factory assembly line analyzes the received order, makes corresponding material requests to suppliers, prepares the necessary production materials, and then begins production. The product is then packaged, shipped, and delivered to the end user. The entire process, except for some departmental production steps that require human intervention, is automated and intelligent. (See the diagram below.)
Figure 1
Dell's production method is completely different from traditional computer manufacturers: they design the appearance of the model first, then mass-produce and distribute it through sales channels, with various levels of distributors selling through their respective channels. As a result, Dell computers once firmly held the top spot in the PC market due to their extremely high cost-performance ratio. If you're still unclear about the intricacies, let me quote a concept from Toyota's management: Just-in-Time (JIT) and Automation (Jidoka) are the two major pillars of the Toyota Production System. Just-in-Time: In the process of assembling a car through an assembly line, the required parts are delivered to the production line at the required time and in the required quantity, no more and no less; Automation: This is not simply mechanical "automation," but includes human factors in its "automation."
What if these conditions can't be met? If the quantity of parts cannot be determined, more inventory must be purchased, requiring larger warehouse space and more staff for warehouse management, resulting in higher costs on the goods themselves – expenditures that are ultimately pointless. Failure to promptly convert sales orders into production tasks, or to provide timely feedback on production status to sales, will extend the company's cash flow cycle and increase costs. Conversely, effectively addressing these issues will maximize production efficiency, as inventory is held by suppliers and can be retrieved as needed. Timely responses to sales orders will allow for the fastest possible delivery of products to end users, significantly shortening the cash flow cycle.
This brings us to the MES system. Manufacturing Execution System (MES) was proposed by Advanced Manufacturing Research, Inc. (AMR) in the early 1990s to enhance the execution capabilities of MRP plans, linking them with shop floor control systems through an execution system. The Manufacturing Execution System Association (MESA) defines MES as follows: "MES optimizes the entire production process from order placement to product completion through information transmission. When real-time events occur in the factory, MES can react promptly, report them, and guide and process them with current, accurate data. This rapid response to changes in status enables MES to reduce non-value-added activities within the enterprise, effectively guiding the factory's production operations, thereby improving on-time delivery capabilities, material flow performance, and return on investment. MES also provides mission-critical information about product behavior within the enterprise and throughout the entire product supply chain through two-way direct communication."
MESA emphasizes the following three points in its definition of MES:
1) MES optimizes the entire manufacturing process in the workshop, rather than simply solving a single production bottleneck.
2) MES must provide the function of collecting data in real time during the production process and perform corresponding analysis and processing.
3) MES needs to interact with the planning and control layers to achieve full integration of enterprise information through the continuous information flow of the enterprise.
Simply put, a production control system is a bridge for communication between production plans. Through data interaction between the production system and planning management, the on-site manufacturing system can respond to the production plan in a timely manner, and the timely data of manufacturing operations can be fed back to planning management.
Similar to the Dell sales scenario described at the beginning, the automotive industry operates similarly. Customers select their desired car model at an experience store, pay a deposit, and submit the order to the production system. Traditional online sales systems can handle this, but they can only automate the processing of already entered inventory. However, automotive inventory costs are too high, making it unwise to accumulate large quantities of stock to meet sales demands. A Manufacturing Execution System (MES) can efficiently convert sales orders into production plans. Under relatively stable conditions, the roll-off time can be calculated. Even if delivery delays occur, the MES system can quickly pinpoint the cause and implement rapid improvements. Simultaneously, the production process can use the MES system to promptly relay the demand for spare parts to suppliers, achieving zero inventory of spare parts and reducing production costs by keeping inventory with suppliers.
However, the above two points do not represent the full extent of MES's advantages. A well-developed MES system brings far more improvements. MES brings informatization to the entire production system: it effectively links production planning to the workshop operation control system. Specific production control can be arranged through production planning, and information from the production process can be fed back to the upper-level system. This eliminates the need for manual data collection and periodic summaries by frontline workers, making information collection more timely and automated. The benefits of MES for enterprises are then even more evident.
1. Achieve efficient product traceability. Product identification allows access to all information about the product throughout the entire production process. Defects are unavoidable in automobile production; MES (Manufacturing Execution System) enables rapid traceability of the entire production process, helping manufacturers quickly identify the root cause of problems and find similarly defective products.
2. Achieve transparency in the production process. The MES system provides a clear view of production capacity, the amount of equipment in operation, idle time, lead times, major defects, and quality curves. This data can be collected and analyzed in a timely manner, reducing the workload of production managers and allowing them to focus on improving capacity and quality. Furthermore, employee performance evaluations become more accurate, with employee workstation information and defect rates readily available, providing managers with detailed data for setting KPIs.
3. Achieve integration with upper-level ERP systems. Many automakers have already implemented top-tier ERP systems. MES can leverage the BOM, orders, and plans provided by ERP to schedule production, making the overall factory process more intelligent and automated, and building a comprehensive information platform for the enterprise. The entire system works as follows: ERP is the upper-level planning layer, and MES parses the plan and translates it into specific production actions at the lower control layer. (See diagram below)
Figure 2 Enterprise Three-Tier Integration Model
The automotive manufacturing industry is facing increasingly stringent environmental and safety regulations, leading to higher demands for cost reduction and speed in product traceability. MES (Manufacturing Execution System) can quickly trace each batch of raw materials, parts, and finished products, minimizing traceability costs, accurately identifying problematic batches, precisely determining the scale of recalls, and even providing information down to each individual buyer.
Meanwhile, Chinese automotive OEMs face increasing pressure to control costs, forcing them to focus on optimizing production and reducing liability risks. To meet dynamically changing customer demands and deliver on time, company operations must be synchronized with the production process. This means effectively organizing and coordinating all manufacturing resources, such as materials, equipment, and personnel, further highlighting the importance of Manufacturing Execution System (MES) for the automotive industry. In short, for every automotive manufacturer, an MES system is a wise choice to reduce production costs and improve efficiency.
About Yiwang Information
E-Way Information Technology Co., Ltd. was founded in 2003. From its inception, E-Way, through meticulous data analysis, diagnosed the ambiguous regional problems in enterprise production and decision-making. Targeting the entire process of R&D, procurement, production, sales, and service for large manufacturing enterprises, E-Way adopts a customer-oriented approach, realizing the concepts of Industry 4.0. Utilizing integrated software and terminal information technology, and effectively combining management experience from various industries, E-Way successfully tailors comprehensive solutions for each enterprise.
In recent years, the company has primarily served large and medium-sized manufacturing enterprises, with business spanning the entire country. It has provided various consulting and solutions to dozens of major national automobile manufacturers, food producers, and other industry players.
EW's solutions cover comprehensive enterprise production, management, and decision-making information, encompassing a wide range of content. Among them, Manufacturing Execution System (EW-MES), Warehouse Management System (EW-WMS), Advanced Planning and Scheduling System (EW-APS), Integrated Platform (EW-EIP), and Supply Chain Management System (EW-SCM) are EW's core software products. In addition, EW also provides customers with services in various fields such as Energy Management System (EW-EMS), EW Integrated Mobile Platform Solution (EW-IMPS), IT Services (ITS), and outsourcing services.
Currently, various enterprises are seeking ways to improve production efficiency. Companies in industries such as automotive manufacturing, auto parts, food and beverage, pharmaceuticals, machinery processing, electronics and home appliances, and warehousing and logistics have expressed long-term cooperation intentions with EW. EW has been recognized as a "Technologically Advanced Service Enterprise" and a "High-Tech Enterprise." Its EW-MES Manufacturing Execution System has repeatedly received market recognition, being awarded "Excellent Recommended Product for China's Manufacturing Informatization," "Key New Product of Jiangxi Province," and "Third AI User Praise Award." Its EW-WMS Warehouse Management System has also been awarded "Excellent Recommended Product for China's Manufacturing Informatization."
To promote technological progress, accelerate the industrialization of high-tech achievements, and advance the integration of industry, academia, and research, in June 2014, the company partnered with Tsinghua University Suzhou Automotive Research Institute to establish the Tsinghua University Suzhou Automotive Research Institute-Jiangxi Yiwang Joint R&D Center. The R&D areas include: Manufacturing Execution Systems (MES), Enterprise Resource Planning Systems (ERP), Supply Chain Management, Integrated Platforms, Supply Chain Big Data Centers, and Enterprise Mobile Platforms for the automotive and related manufacturing industries.
To cope with its expanding business, provide convenient and efficient customer service, and smoothly resolve issues that arise during operation and maintenance, the company has established seven independent engineering centers in Beijing, Shanghai, Wuhan, Nanchang, Guangzhou, Tianjin, and Suzhou to scientifically manage the national market by region.
