Every culture makes specific reference to the sustaining struggle between art and science, abstract thought and literal action. The Greeks had Venus and Mars. The Chinese have Yin and Yang. Technology consultants have business and IT. In turn, discrete manufacturing companies have manufacturing execution systems (MES) and enterprise resource planning (ERP). The challenge for the planning professional is to marry the literal performance metrics circulating on the factory floor to the cryptic cipher of the enterprise planning systems. Once joined, the resulting flow of real-time manufacturing execution information can empower the company to make timely, decisive, and effective decisions. However, the distance between wanting and having is wide. Envisioning operational efficiency is relatively simple. Achieving it is much more complicated.

There are many methods for improving business performance. Business improvement methods enhance the quality and availability of information. Making efficient and timely manufacturing decisions requires supply chain managers to acquire, analyze, and act on good information in real time. Poor data quality, including latency and issues with accuracy, directly impacts the potential quality and value of a business decision. A decision made on old or inaccurate information will inevitably produce inefficient results, which hurts productivity, customer satisfaction, and profitability.

Companies with the ability to transform manufacturing execution data into decision-making business information have a distinct competitive advantage. Increasing operational efficiency (using MES) and tightly synchronizing operations with corporate goals (utilizing ERP) creates a more profitable and responsive e-business. In addition, utilizing manufacturing execution data to drive key decision-making extends beyond supply chain and operations management. Business process owners in customer service, quality, engineering, and finance also rely on real-time data for better insight to improvements in their areas. The ability to be agile and react to changing business events while they are occurring provides a company with a distinct advantage.

True. Simple. Straight-forward. But, how does one separate from an ad-hoc guess-and-check approach to factory-floor integration and effectively substitute information for inventory?

Empowering the Enterprise Nervous System (ENS)

For years, companies have struggled with information access. Ten years ago, technology vendors pursued a "pull" model whereby users would explore for information as they needed it. More recently, workflow-enabled solutions "push" information to named recipients or subscribers. Both approaches worked well in their time and within specifically bound processes such as document creation or product development where known information consumers looked for information from static channels. However, neither approach fully meets the needs of the modern discrete manufacturing planner who has a network of ever-changing information sources that mayÑor may notÑprove accurate, timely, or critical. Pull technology fails to provide appropriate notification in the event of a notable exception or time-sensitive business condition. Push technology still delivers static content at fixed intervals.

To truly achieve a level of information access suitable for high-tech manufacturing, it is necessary to create an environment that provides immediate visibility into ever-changing business conditions. This concept is broadly discussed as the enterprise nervous system (ENS) and it represents the next functional step in managing business information. Ideally, a well-configured ENS provides a flawless unification of people, processes, and applications across a distributed business enterprise. Integrating multiple MES applications with an ERP system may be one of the most critical and complex of all possible ENS tasks.

SCORing with the Real Time Supply Chain

To better understand the potential value of providing real-time supply information, consider the Supply Chain CouncilÕs Supply Chain Operations Reference model (SCOR). The SCOR model is a standard guideline for examining supply-chain configurations. The intent with SCOR is to identify and measure metrics in the chain, determine weak links, then work to achieve best practices. The areas of evaluation include plan, source, make, and deliver. By connecting MES and ERP systems, planners should have real-time access to reliable information throughout the virtual enterprise. Each company should realize the following advantages:

Plan

With access to real-time supply information, decision makers have the ability to assess supply resources, aggregate and prioritize demand requirements, and accurately plan inventory.

The result is a plan that is synchronized with customer requirements and corporate goals. More accurate supply information facilitates improved make/buy decisions for companies. Areas of positive influence include: supply chain configuration; long-term capacity and resource planning; business planning; product life-cycle management; manufacturing ramp-up, and other business processes.

Source

Improved supply information allows decision makers to manage the flow of material through the supply chain. Real-time work in process (WIP) information will allow sourcing personnel to adjust the material requirements from external sources in the supply chain. Low inventories and the ability to provide suppliers with better information to plan their operations results in lower material costs.

Make

Real-time visibility into supply improves manufacturing scheduling and sequencing. Manufacturing managers can make more informed decisions on when to start material into production. Information access also helps engineers make decisive changes to processes, facilities, and equipment.

Deliver

Real-time information access enhances order management, warehouse management, and transportation management decisions. Improvements include inventory allocations and maintenance of inventory levels; lead-times in warehouse management processes; streamlined customer service; and the ability to isolate inventory with a potential quality issue.

Financial business processes also benefit from consolidated manufacturing execution data. Financial managers can conduct more frequent and accurate period closings. Processes that normally take weeks can be executed in days or even hours with the real-time consolidation capability.

Conclusion

Manufacturing execution data can empower manufacturing companies by improving operations, performance, and business profitability. Real-time collection, aggregation, and analysis of accurate information provide companies with the ability to make real-time business decisions. As a result, the companies can combine business processes with company goals. This marriage of processes and goals creates balance and business stability, which is good for customers, suppliers, shareholders, and employees.

Stephen Ibbitson serves as product manager for Triniti Corporation, a leader in business process consulting, services, and engineered solutions for the technology manufacturing and semiconductor industries. Prior to joining Triniti, Stephen held numerous supply chain management and operations management positions with GE, PerkinElmer, and PRTM. Stephen holds an MBA from University of Connecticut.