Preparations for MES-implementation

systems have expanded their range of products and services in this direc-tion. There is no doubt that the marked commitment of the automation suppliers will result in further expansion and improvement of interfacing and communications between automation systems and MES systems. The interest that ERP suppliers have in MES is to further close the information gap which has so far existed in manufacturing, doing so either by develop-ing their own solutions or by cooperatdevelop-ing with standard MES vendors.

A functioning connection with the higher-level ERP system is an impor-tant and critical factor in an MES system and defining practicable and standardized integration interfaces for ERP is an important task in the fur-ther development of MES. The engagement of the ERP suppliers who have already widely established themselves in the industry could be a decisive influence on the development of the MES market.

The third group are the actual MES specialists who can already offer mature, self-contained solutions for the MES market. Where differences exist they are mostly found in the scope of MES functions covered and in the primary orientation towards specific sectors of industry or types of company. Due to their years of experience and their customer-oriented flexibility these suppliers will continue to play a decisive role. Companies who are looking into MES and planning to introduce an MES system should abandon the idea that they can buy an MES system “off the shelf”.

MES must be tailored to their own particular situation and may very well be spread over a number of different software systems. Companies should take an eagle’s view on their own manufacturing layout and create a struc-tured master plan for their own MES system selection.

3.3 Preparations for MES-implementation

Continuous changes cannot be possible without continuous thinking proc-esses. Systematically breaking down the performance promise of the com-pany as expressed in its targets into key data and measured variables and going right down to the operational level will trigger a long-term dynamic process which cannot be laid down in advance nor even cast in an action catalog. For this reason it makes sense to work out the structures, objec-tives and room for maneuvering, doing so in collaboration with the em-ployees. Only with this collaborative procedure will it be possible for the company to identify itself via the process responsibility of every single one of its employees.

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3.3.1 Identification of objectives

A systematic application of MES will result in major consequences within the company. Benefits of MES nevertheless are not always understood in advance by those affected:

 The organization becomes self-learning, something an MES makes pos-sible by its automated workflows and automatic escalation functions.

 The personnel field becomes decentralized and many decisions are made on the spot by a bottom-up process and then communicated upwardly.

 Leadership on the shop floor is carried out via KPI-based performance data by which the employees orient themselves at all times.

 Employee remuneration models are now based on processes and no longer on static figures.

 Central data storage coupled with decentralized data availability is revo-lutionizing the classic factory IT infrastructure by eliminating media discontinuities – value generation becomes interface-free.

 The concept of hierarchy is changed by process-capable information structures: the hierarchy becomes a service provider.

 Due to the introduction of MES, flow control, traditionally occupying a central location, turns into decentralized material planning with close-to-process control loops.

Within the context of an MES deployment project it is therefore impor-tant to draft the most realistic model possible for a future manufacturing organization. To do so, the existing situation will need to be carefully ana-lyzed, the potentials for improvement identified, and on this basis the measures required for implementation obtained. The best course cannot be laid without clarity about its destination:

 What strategic direction should be implemented?

 What objectives support this corporate strategy?

 What key data and measured variables can be developed for these objec-tives?

3.3.2 Systematic process development

The permanent orientation of resource deployments by the process result calls for systematic process development involving all process owners.

While decisions relating to economic efficiency were made in the past solely on the basis of figures from the accounting department, tomorrow’s factory will, with the aid of an MES system, relate its key performance figures to the operational sequences behind these figures – the processes.

3.3 Preparations for MES-implementation 73 This far-reaching change affects the entire organization and it must there-fore be borne by all employees.

Unlike the traditional procedure used with changes, which were imple-mented by the top-down method, here the process owners who are directly affected should be addressed. Again and again, on-the-spot workshops have demonstrated that the workers as a rule are the ones who point out recurring deficiencies in the organization. In the past they never had a sys-tem to express what these negative situations mean in terms of time and money, they never could quantify them or even eliminate them. Here the lost potential for bottom-up improvement is comparatively enormous: fail-ure to meet scheduled production order lead times and delivery dates,

“firefighting” responses, and immense sales and administration costs are examples of typical types of waste.

Accordingly, this project phase begins by including all those individuals involved in the process. Any inequality in knowledge regarding the MES project will create aggression, mistrust and arrogance and uncontrollable ancillary hierarchies will arise. Process responsibility must therefore be jointly borne by the following departments in particular: controlling, data processing, sales, production planning, purchasing, engineering, produc-tion, quality management and IT. In addiproduc-tion, the works council (union representatives) should already be included in this early project stage in order to counteract possible obstruction right from the start. In this connec-tion it must be made clear that MES is not about surveillance of the work-force but is rather a way of optimizing production processes. It is also beneficial if it can be demonstrated that the workers are also direct partici-pants in the successful implementation of the project by the fact that, say, observance of deadlines and successfully achieved quality will be posi-tively reflected in their wage packets.

Process descriptions, such as will already have been prepared during the course of certification, are a useful resource here. In this phase the re-quirements of the departments or fields of responsibility involved in the process are drawn up in detail in conjunction with the employees.

3.3.3 Estimation of a return on investment

If the extent of weaknesses is documented in the form of examples and also quantified for the company, a subsequent potential analysis will help in preparing an approximate cost-benefit analysis and from this at least a rough idea of the return on investment can be calculated. This report should include not only details of the various potentials but also explana-tions of alternative soluexplana-tions and handling approaches. It should also pre-sent the improvement potential by MES. An examination of the costs and

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benefits (which in this phase will still be very approximate), a first feasibil-ity study and a rough project plan should all be constituent parts of the information provided to the persons with decision-making responsibility.

The aim of this first project step is to obtain a project order including a budget and executive support from top management, ideally a “godparent” is appointed as responsible for the project.

3.3.4 System tuning

The final system tuning is based on the key data obtained from systematic process development. Requirements might, for example, include:

 Integration of the operational level (controls)

 Forms of employee remuneration

 Process time optimizations

 Implementation of quality assurance

 Interface requirements

 Special aspects of production technology

 Globalization (browser capability)

 and so on

The predefined project objectives can now be compared with MES solu-tions available on the market. For this purpose the VDMA offers its mem-bers, for example, specific reference lists. Considering the complexity of what MES solutions are available, it may be worth recommending getting support from a consultancy which has demonstrably proved itself to be a successful partner in the selection of this kind of corporate software. The corresponding references should be helpful here in the evaluative process.

Possible suppliers will now need to be appraised on the basis of what is required.

In addition to the usual cost-benefit aspects, their offers should also be judged on the basis of “soft” factors such as:

 Financial standing. The vendor company should also supply not only documented evidence of its economic strength but also a convincing business strategy.

 The technical future potential of the solution and development strategy over the years ahead must be recognizable and transparent.

 Organizational capabilities and permanent availability are features which should not be neglected and which reveal themselves in after-sales services, software care and maintenance (update and release policies) or project know-how.

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 Finally, care should also be taken that the company size of both user and supplier are comparable. It can be assumed with the mid-sized software company that it understands the daily problems experienced by the mid-sized manufacturing company. The two or three system suppliers which best meet requirements are now asked to submit their product specifica-tions and also a detailed implementation plan. In addition, the suitability of the systems should be checked in workshops in which processes are simulated using real data from the company. At the end of this, a con-tract will be awarded to one of the final potential suppliers and work can start on the practical implementation.

3.3.5 Introduction of MES in the company

The implementation plan forms the foundation for the introduction of the MES system. It specifies the various stages in the introduction process and the sequence of the organizational units into which the system is to be successively introduced. It has proved helpful to introduce systems of this kind gradually and not in one fell swoop. Here it makes sense, correspond-ing to the 80:20 rule, to begin where the greatest potential for rationaliza-tion is located and where there is the greatest possibility of including high-tech machines and installations. Rapid, conspicuous successes are good for the image of the project and give the impetus needed for full-coverage implementation. To prevent set-backs from occurring, the real-time opera-tion of the system must be thoroughly prepared in advance. In addiopera-tion to the necessary user training, what is of prime importance here is the seam-less and consistent availability of the data which the MES system needs.

Here, too, the old rule still applies: garbage in, garbage out. Problems which occur during the introduction phase must be documented and pre-cisely investigated. The actions taken to correct faults must be anchored in the introduction process in such a way that they can also be used for future fault prevention. Throughout the introduction phase, compliance with the implementation plan must be monitored not only as regards scheduled milestones but also as regards deviations from target and corrected where necessary. Right up until the end of the introduction phase, reports will be prepared at defined intervals regarding project progress and submitted to those responsible in general management. Once the introduction program has been completed in accordance with the implementation plan, the pro-ject will be formally concluded. Among other things, this means that the costs arising in subsequent periods will be clearly fenced off and that, for example, further services on the part of the supplier will either concern new projects or should be posted as recurring costs.

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3.3.6 Operation of the MES solution

Added-value processes in companies are in all cases also characterized by change. For this reason it is only natural that deviations from objectives may occur even after the introduction of an MES system. On the one hand, different behaviors or processes may “sneak in” which conflict with the original objectives or which support them less. On the other hand, however, even the tactical or indeed the strategic objectives of corporate management may shift, as well as the systems supporting the achievement of these objectives. In this regard the MES system, even after its success-ful introduction, will remain subject to monitoring and auditing by those responsible in the controlling and organization departments. The phase when the MES solution is in operation is, however, also the time when the cost-benefit analysis is finally finished and conclusions must be drawn regarding the economic success of the project. This will be based on the same key data and measured quantities as were used as a basis for the requirements analysis. In this way management obtains not only informa-tion about the success of the project but also about the company’s project capability as well as pointers regarding possible necessary improvement measures.

3.4 Innovative technologies in the MES environment