Why Your MES Is the New Foundation for Digital Manufacturing
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Key Takeaways
Modern Manufacturing Execution Systems (MES) are essential for bridging gaps between shop floor operations and business systems, enabling real-time data connectivity and eliminating reliance on outdated, paper-based processes.
The transition to a cloud-based MES, like SAP Digital Manufacturing, offers integrated solutions that enhance data quality and accessibility, providing a solid foundation for leveraging advanced technologies such as AI and Machine Learning.
Implementing a digitized shop floor requires a phased approach (crawl, walk, run), allowing organizations to minimize disruption, increase user buy-in, and optimize return on investment throughout the transition process.
Bridging the gap between physical operations on the shop floor and the business systems utilized by other operations within the business has been the job of the Manufacturing Execution System (MES) for decades. However, the rise of real-time demands and AI-driven insights is transforming the traditional role and architecture of the MES.
The Problem with Yesterday’s Data
During a recent SAPinsider webinar, John Gretter, Managing Director Mill Products, and John Rossiter, Director of Presales Solutions Engineering at delaware dwelled on this transformation, comparing traditional MES approaches with modern, integrated solutions.
They noted that an MES sits between the business planning layer (ERP) and the operational technology on the shop floor, translating business orders into production execution. Historically, its biggest challenge has been data latency due to paper-based operations.
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“By the time they get eyes on it, the field of play on the shop floor has completely shifted,” Gretter said. “The company is already into the next quarter, but shop floor decisions are still based on what happened in the first quarter. And that doesn’t work.”
A reliance on siloed expertise compounds this latency. Many organizations rely on key individuals who possess decades of operational knowledge. “What happens when that person retires and that tribal knowledge walks out the door? What are you left with?” Gretter asked. The answer, he said, is to digitize those processes through a modern MES, safeguarding this critical knowledge within the system itself.
The SAP Evolution
Gretter noted that for years, the lack of a tightly integrated, native MES meant businesses had to rely on third-party solutions. This forced them to build and maintain complex, brittle middleware to connect the shop floor to their SAP core, which was a costly and inefficient approach.
However, these challenges are resolved with SAP Digital Manufacturing (DM), a cloud-based MES that boasts native integration. “It’s the designated replacement for legacy solutions like SAP ME and MII,” Rossiter said.
According to Rossiter, its out-of-the-box, real-time connectivity back into core SAP is a game-changer. This is an essential feature as the seamless connection eliminates the need for middleware and provides a single source of truth from the top floor to the shop floor.
Building the Foundation for Tomorrow
Rossiter and Gretter emphasized that modernizing MES is now a prerequisite for adopting the next wave of technology. Without a clean, real-time, and high-quality data stream from the shop floor, advanced initiatives are doomed to fail.
“These are becoming foundational elements that you must have in place to take advantage of the new cutting-edge technologies like AI,” Gretter said. “If you find yourself still using spreadsheets, still relying on tribal knowledge, you cannot even think about doing AI.”
Thus, by providing the high-quality, structured data needed to train AI models, a modern MES transforms the shop floor from a simple production center into a strategic data asset, paving the way for predictive quality, optimized scheduling, and a truly future-proof manufacturing operation.
What This Means for SAPinsiders
Your biggest risks are hiding in manual processes. The most significant operational challenges on the shop floor stem from a reliance on manual, disconnected processes and the reliance on tribal knowledge. These outdated methods create a cascade of issues that directly impact efficiency, decision-making, and future viability. Challenges include data latency due to the lack of real-time data, vulnerabilities when the person with expertise and experience in the system leaves or retires, and workforce challenges when digital-native employees must deal with a paper-based shop floor. Without modernizing, companies risk becoming unable to compete in their market.
SAP’s modern suite offers natively integrated solutions. The combination of SAP Cloud ERP, SAP Digital Manufacturing (DM), and DM4Mill by delaware provides a clear path to modernizing MES. SAP DM replaces legacy systems. Its out-of-the-box, real-time connectivity to the SAP core eliminates the need for the costly and fragile middleware. Additionally, DM4Mill by delaware is a pre-configured solution layered directly on top of SAP DM to fill specific functional gaps for the mill products industry. The solution incorporates best practices gathered from industry leaders, aiming to be 85-90% ready to use out of the box. Together, these systems create the essential foundation for future technologies such as AI and Machine Learning.
The path to digitization is a crawl, walk, run journey. Transitioning to a fully digitized shop floor is a strategic, phased migration that minimizes disruption and maximizes user adoption. Therefore, as Gretter and Rossiter highlight, the implementation can be approached using a crawl, walk, run methodology, with companies rolling out the solution one plant or even one production line at a time. This allows users to get comfortable with the new system, builds buy-in, and allows the ROI from early phases to help fund later stages.
