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Insights Blog

ERP vs. MES

What’s the Difference, and Why Manufacturers Need Both

 

Author: Dan Aldridge — PCG Director of Solutions Marketing

Executive Summary —

Enterprise Resource Planning (ERP) software has been the standard for running businesses across all industries and in most sizes since the 1990’s, when the term was coined by ERP pioneers Jan Baan (Baan Company) and Dr. Hasso Plattner (SAP).

ERP manages broad, enterprise-wide business processes like finance, warehousing, and supply chain. ERP is essential for manufacturing and distribution companies of any size because it controls process flows such as sales order-to-cash and procure-to-pay in addition to providing a “system of record” for financial transactions, as in the general ledger (GL).
ERP can be used for high-level production planning and basic execution, such as issuing materials or recording actual hours tied to a production order. It was never designed, however, to communicate directly with Operational Technology (OT), sensors, machines, and operating systems on the shop floor.

In this article, we will learn more details about what ERP does well and where its limitations lie in solving manufacturers’ shop floor execution challenges.

A Manufacturing Execution System (MES) is designed to establish this direct communication with OT and manage the “shop floor” in real time. In this article, we will learn more details about MES, what it does, and how it bridges the gap between the “top floor” of high-level control, which is the dominion of ERP, and the factory, which is where MES shines.

At PCG, we believe that MES is significantly better software for managing real-time production execution and quality control on the shop floor. That is not to say that ERP doesn’t have a role in manufacturing operations – just that MES can complement ERP and pick up where ERP leaves off.

The Bottom Line: ERP runs the business; MES runs the factory!

The Smart Manufacturing Maturity Model —

Research suggests that there are different levels of maturity for companies looking to move closer towards smart manufacturing, which typically includes both types of systems in the mix: ERP and MES. The problem, though, is that many manufacturing companies are stuck at Level 1 (Struggle) – in fact, over 80% according to LNS Research.

Learn more about Smart Manufacturing by clicking here

At Level 1, even if an ERP is already in place, manual paper logs and shop travelers are often used on the shop floor. And machines, while they might have Programmable Logic Controllers (PLCs) in place, typically haven’t been connected to the ERP systems. There is paper-driven and spreadsheet data collection everywhere, and companies are stuck there.

So, what should be done and how can companies aspire to the higher levels of the Maturity Model?

Here’s a quote from the excellent article ‘ERP vs MES: What’s the Difference & Why You May Need Both’ by Michell Shostko-Datch at VKS.

“In today’s fast-moving manufacturing world, companies need more than spreadsheets or disconnected software to stay competitive. They need systems that help them plan work, execute work, and understand what’s happening across the entire production process. This needs to happen at both the business level and down on the shop floor.”

The article suggests that systems need to replace spreadsheets, disconnected software, and (it goes without saying) manual processes. But what type of system is best to handle the “business level” and what type should handle the “shop floor”?

Setting the Stage —

Before we explore the differences between the two types of systems and why manufacturers might need both, let’s understand what ERP and MES are in more detail.

We argue that in a manufacturing company, the business system has to be an ERP for any company, of any size. And no – QuickBooks and spreadsheets together are not an ERP system.

So, we’ll discuss ERP first, then MES, then compare the two. Finally, we’ll make the case for using a combination to handle the shop floor.

Fortunately, together these two types of systems can make beautiful music. When you add a modern MES like our PCG SmartFactory to a really good cloud ERP, it’s really something special for companies that truly want to reach the goal of Level 5 in Smart Manufacturing Maturity.

What Is an ERP System? —

Enterprise Resource Planning (ERP) systems are the backbone for high-level business management in virtually any-sized company. It is typically considered a “back-office” system, as people in departments like Finance and Purchasing use it, and they are not “customer-facing”.

ERP has some manufacturing functionality, but as we’ll discover in this article, ERP for shop floor operations is often insufficient in relatively complex manufacturing environments.

Typical ERP modules include:

  • Finance and Accounting – Report on financial performance, financial statements, financial budgets, invoice processing, cash management, etc.
  • Sales and Customer Service – Process sales quotations, create sales orders, monitor inventory, and check fulfillment schedules for shipping.
  • Enterprise Planning – High-level planning of a product forecast, master production schedule (MPS), and production plan at the production/work order level.
  • Inventory Management – Monitor stock levels, reorder points, and warehouse operations, including receiving, shipping, and material issue.
  • Procurement – Oversee purchasing and supplier management, including supplier portals, and dealing with exceptions to PO vs purchase invoice matching.
  • Shop Floor Control – Once production/work orders have been created, basic functionality like material issue and recording labor hours is available in the ERP, although it’s not ideal for sophisticated manufacturers (which is where MES comes in).
  • Human Resources – Manage employee data, time tracking, and payroll. Some of this data, such as paid hours, can be compared to “absorbed” or “earned” hours for hourly workers on the shop floor.

For manufacturers, ERP plays a vital role in planning, forecasting, and resource allocation. Typically, it doesn’t manage detailed hour-by-hour production tasks, such as labor and machine reporting – or, at least, not as well as some other technologies. 

ERP provides the data and structure needed to guide operational decisions from the “top down”. It provides all the orders and transactions that contribute to financial accounting, so it is the “one version of truth” for all financial reporting and some operational reporting as well.

Where ERP is Limited: Shop Floor Execution —

At the beginning of ERP in the ‘90s and early 2000s, manufacturers were often persuaded that ERP was the only transactional system that they needed. Once they got the basic functions under control, however, they began finding that ERP was clumsy to use on the shop floor with computer terminals and laptops, and it slowed the lines down.

Production order information was often entered into desktop computers in offices at the end of the day. Materials were pulled without recording issues in the system. Traceability meant writing notes on “shop travelers”, which meant paper! This all added up to manual processes, frequent mistakes, and sometimes grossly inaccurate information to manage manufacturing operations. In other words, needless pain.

As the diagram below shows, travelers were combined with Excel spreadsheets and manual monitoring of KPIs, like Overall Equipment Effectiveness (OEE), because there was no connection between the ERP at the high level and the shop floor equipment and automation at the low level.

Learn more about Infor ERP by clicking here

Companies tried to customize the ERP systems (i.e., building ERP Extensions) in the shop floor control and quality management modules, only to find they still couldn’t connect ERP directly to the shop floor equipment or assets. That meant they couldn’t take advantage of technology advances there either.

Although Manufacturing Execution Systems (MES) also debuted in the ‘90s, like the larger ERP systems, they didn’t really come into vogue until they could easily connect to shop floor equipment, fixed assets, and ERP systems.

In the 2000s, advances in the Internet of Things (IoT), sensors, machines with wireless connections, statistical process control (SPC), and other technologies led to the evolution of the modern MES System.

So, what is modern MES, and how does it compare with and complement ERP?

What is an MES System? —

Manufacturing Execution Systems (MES) operate on the shop floor. Once a production/work order has been released from ERP, as part of the big picture production plan, MES focuses on the minute-by-minute flow of production.

Unlike ERP, MES systems are designed to monitor, control, and optimize manufacturing processes in real time. They bridge the gap between enterprise-level planning and physical production execution – without customization.

Key MES functions include:

  • Production Tracking – MES monitors production or work orders, operations, and progress in real time as opposed to ERP, which is typically batch-driven with aggregated information. After ERP issues production/work orders into MES, MES can do the whole order and quality processing without any operational users having to touch ERP. This is a huge advantage over ERP alone!
  • Machine Integration – MES connects to IoT (Internet of Things) devices, PLCs, sensors, and automation systems to capture performance data such as OEE. Some of that performance data, such as machine time, can be communicated back to the ERP…automatically.
  • Traceability – MES captures who is working on what order, what they’re working on, when they’re clocked in, and how every unit is produced. This traceability is important for compliance, such as lot control for the FDA, and management of jobs.
  • Scheduling – MES allocates work orders (jobs) to machines and workers with dynamic scheduling tools. The best MES systems in the market today have Advanced Planning and Scheduling (APS) with constraints built in, whereas many ERPs are still “unlimited capacity – i.e., unrealistic.
  • Quality Management – MES tracks inspections, scrap, rework, defects, and compliance on the shop floor. Although most ERPs have a quality control module that can do just basic inspection orders, MES adds user-friendly test scenarios and inspection steps/parameters that can be easily performed on tablets and handheld scanners.

An MES helps manufacturers maintain control, ensure quality, and respond quickly to issues as they arise. It’s built for operators, supervisors, and plant managers who need live feedback and more precise control over daily operations than ERP can provide.

How MES Picks Up Where ERP Struggles —

The diagram below clearly shows how MES is the solution to the void that people have been trying to fill for years by customizing and adding extensions to their existing on-premises ERPs. As shown on the right, MES deftly manages the following manufacturing operations: Production, Maintenance, Inventory, and Quality.

Learn more about Infor MES

 

Where ERP measures in aggregated days, months, and even years, MES allows measurement in shifts, hours, minutes, and even seconds. This is what is needed on a factory floor because conditions are changing constantly – and ERP alone, even with customization, can’t keep up.

Here’s an excellent video demonstrating how a top-ranked MES system, Infor MES, deftly handles the shop floor – basically in real time.

Infor MES Production Demonstration

What are the Primary Differences Between ERP and MES? —

The basic difference between the two types of systems is that ERP plans and executes the business, while MES executes the shop floor. Here is a breakdown of the primary differences between Enterprise Resource Planning (ERP) and Manufacturing Execution Systems (MES).

The VKS article quoted above did a nice job of summarizing the high-level differences between ERP and MES, and we added more detail to each point.

High-Level Differences:

  • ERP (Enterprise Resource Planning): Think of the ERP as the “high-level planner.” It operates at strategic and business levels, managing high-level transactional data across the entire organization, including finance, HR, purchasing, and sales.ERP can schedule production on a macro scale, such as a list of production orders with dates for sequencing overall, but it doesn’t know what is happening minute-by-minute at individual cells or workstations.
  • MES (Manufacturing Execution System): Think of the MES as the “execution engine.” It operates at the tactical shop-floor level, managing, monitoring, and controlling physical production processes in real time.MES can also schedule production, but it does it on a micro scale. So, it does get down to sequencing orders, machines, and operators to generate a minute-by-minute detailed schedule at individual cells and workstations.

This table compares ERP and MES “at a glance”.

How They Work Together —

Even though they are different, rather than competing, these two systems are highly complementary. In a modern smart factory, they form an interconnected information loop:

1. The ERP Sets the Production Target: The ERP determines what needs to be built, when it needs to be delivered, and what resources are allocated. It then sends these high-level work orders down to the shop floor.

2. The MES Drives the Shop Floor Work: The MES takes that production/work order and guides operators through step-by-step work instructions, enforces quality checks, and captures live production (e.g., assembly) data.

3. The Connected Loop: The MES automatically updates the ERP with actual quantities produced, scrap rates or units, and time spent – both operator and, if needed, machine hours. This allows management to monitor inventory and machines in real time and adjust future forecasts with accuracy.

As MES expert Matt Barber says in his MES Matters Blog: “Implement MES to remove complexity from your ERP”:

“MES is specifically built to manage and control manufacturing operations, capturing real-time data from the shop floor and translating it into actionable insights. It acts as a bridge between the shop floor and the ERP system, enhancing the capabilities of both. By integrating MES with ERP, companies can achieve a seamless flow of information and reduce manual data entry and reconciliation efforts.” – Matt Barber, MES Matters

The relationship between ERP and MES is often misunderstood, yet it’s crucial for modern manufacturing success. Here’s why they need to work together, and how they complement each other.

Here’s an infographic that presents six reasons why ERP is better when MES is added. Matt Barber deserves credit for the words, and we made an infographic to display them!

5 Ways ERP Contributes to Production —

ERP issues the production/work orders to the shop with the estimated materials, coming from the bill of materials (BOMs), and the estimated hours per operation, coming from the routing and engineering.

So, by itself, ERP can provide only:

1. Limited raw materials and WIP visibility
2. Work order scheduling and high-level production plan
3. Basic work list per work center
4. Minimal contribution to UI as ERP was not designed for operational users
5. Manual data collection from shop floor equipment

10 Ways MES Complements and Enhances ERP —

MES is a huge boost to ERP for shop floor control because it can receive production/work orders from ERP and allow shop floor users to execute production easily. This includes recording actual labor hours per operation, taking the machine hours per operation from the machine controllers, and displaying production KPIs like OEE that otherwise (with ERP alone) must be recorded manually.

MES does this because it can provide:

1. Connection to PLCs and other sensors via IoT
2. Traceability, including quality checks and tooling
3. Real-time visibility and control
4. Error-proof business processes
5. Connection to quality gauges
6. Real-time Statistical Process Control (SPC) analysis
7. Capture of energy data for Environmental, Social, and Governmental (ESG) initiatives
8. Operational data for AI/ML
9. Generative AI predictive analytics that are built into core MES
10. Asset care and tool management

8 Immediate Benefits and Cost Savings of ERP and MES Working Together —

Together, ERP and MES provide the ultimate combination to achieve:

1. Increased productivity & efficiency
2. Increased plant output & capacity
3. Reduced WIP, accurate traceability
4. Improved quality, reduced scrap/rework
5. Faster issue resolution
6. Improved visibility and control
7. Increased on-time in-full (OTIF) delivery
8. Better predictive analytics using AI that can pinpoint critical failure points like machine downtime

Conclusion —

What’s the Problem?

Every manufacturer aspires to achieve Level 5 in the Smart Manufacturing Maturity Model, but the vast majority are stuck on Level 1. Almost all manufacturers have some sort of manufacturing ERP system in place, although many of these systems are old and even obsolete for a variety of reasons, including that they are heavily customized, limited in functionality, and so on. So, users have reverted to manual workarounds and siloed processes.

Bottom Line: ERP is, almost always, not enough to handle operational and shop floor processes properly!

What’s the Difference Between ERP and MES?

ERP is the “high-level planner.” It operates at strategic and business levels, managing high-level transactional data across the entire organization, including finance, HR, purchasing, and sales.

Although ERP can schedule production on a macro scale, such as a list of production orders with dates for sequencing overall, it doesn’t know what is happening minute-by-minute at individual cells or workstations.

In contrast, MES is the “execution engine.” It operates at the tactical shop-floor level, managing, monitoring, and controlling physical production processes in real time.

MES can also schedule production, and unlike ERP, it can do it on a micro scale. So, it does get down to sequencing orders, machines, and operators to generate a minute-by-minute detailed schedule at individual cells and workstations.

Why Do Manufacturers Need BOTH?

Any manufacturer of any size has an ERP that, to a large extent, covers the core “top floor” and admin processes like sales, purchasing, warehousing, and finance. If they don’t have an MES, though, the shop floor execution is almost certainly plagued by manual processes, delayed time entry, human mistakes (i.e., bad data), and so on.

With bar coding, handhelds, wireless scanners, connections to machines via wireless controllers, and many other features, adding an MES to the ERP will result in an immediate boost to at least Level 3 in the Maturity Model. It’s the only way we know to get fast, dramatic gains in efficiency, cost savings, processes, and data by implementing a single additional piece of technology!

Recommended Reading —

  • VKS: ERP vs MES: What’s the Difference & Why You May Need Both’ by Michell Shostko-Datch
  • Parsec: MES vs. ERP: The Guide to Manufacturing and Enterprise Systems
  • Maveneer: MES vs ERP: Understanding the Differences
  • GE Vernova: MES vs ERP: What’s the Difference?
  • MES Matters Blog: Implement MES to remove complexity from your ERP, Matt Barber, Infor https://www.mesmatters.com/post/implementing-mes-can-simplify-your-erp
  • MES Matters website (multiple great articles): https://www.mesmatters.com/

Useful Links —

At PCG, we help manufacturers understand how ERP, MES, and SmartFactory should integrate to enable true smart manufacturing. Through many combined ERP and MES projects, we have seen in practice how aligning the two can unlock breakthroughs and transformational value.

PCG has a variety of resources for those interested in how ERP and MES can work together to help manufacturers thrive in an uncertain and challenging environment.

Useful Links:

  • You can find out more from our websites for PCG services and solutions including ERP and MES at com and for SmartFactory at asmartfactory.com.
  • Our Infor ERP page for Infor CloudSuite Industrial (CSI/SyteLine) and Infor Cloudsite Enterprise (CSIE/LN) is here.
  • The MES systems we use, Infor MES and SmartFactory, are tightly integrated to the ERP systems we use, which are Infor CSI (CloudSuite Industrial), Infor LN (CloudSuite Enterprise), and NetSuite.
  • If you have Infor SyteLine or LN on premises, then we sell and implement Infor MES (formerly Lighthouse). Here’s our Infor MES page.
  • If you have CSI or CSIE, we have our PCG SmartFactory which integrates seamlessly with both – the only solution in the market that can do it! Our dedicated SmartFactory MES page is here.

We have also developed a 400+ video library that we call the PCG Insights HUB. Here’s a link to the main PCG Insights HUB page where you’ll find tiles to see demo videos by product (e.g., NetSuite ERP), by industry (e.g., Aerospace & Defense), and by role (e.g., Accounting and Finance).

Here are links to the HUB pages for the major solutions we offer at PCG, including both ERP and MES, and we can implement them together.

We hope you enjoyed our blog “ERP vs MES: What’s the Difference, and Why Manufacturers Need BOTH”. For more from our Insights BLOG, read and sign up here.

Here’s our PCG Contact Page if you would like help with Infor CSI, Infor CloudSuite LN, Infor M3, Infor MES, NetSuite ERP, and SmartFactory!

If you want to talk to the ERP Doctor, his LinkedIn profile is here, and the PCG LinkedIn page is here. Ring the “bell” to follow.

Looking forward to connecting!

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Dan Aldridge

Dan has 25+ years of corporate management experience including CEO, CFO and Controller of the consulting firm he founded and grew for 13 years. He has ERP software and digital transformation experience working with CEO’s, CFO’s, Controllers, and other C-levels at Fortune 500 companies. He specializes in Finance (e.g., Financial Statements, General Ledger, Accounts Payable, Cost Accounting) and Manufacturing (e.g., MRP, Production, Industry 4.0, Smart Factories, MES systems) consulting and project management.

Contact Dan Aldridge.

 

Work together with PCG for great Infor platform success. Contact us, and let’s get started!

NOTE: All references to external content, motion pictures, actors, or third-party story lines does not represent an implied or explicit relationship with any third-party content owner. All trademarks, tradenames, movie titles, scripts and story lines, and NIL remain the property of their respective owners.

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]]> What is MES: An Introduction to Manufacturing Execution Systems and the Smart Factory https://pcgservices.com/smart-factory/what-is-mes-an-introduction-to-manufacturing-execution-systems-and-the-smart-factory/ Fri, 05 Dec 2025 16:26:55 +0000 https://pcgservices.com/?p=987514350 The post What is MES: An Introduction to Manufacturing Execution Systems and the Smart Factory appeared first on PCG.

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Insights Blog

What is MES: An Introduction to Manufacturing Execution Systems and the SmartFactory.

 

Author: Dan Aldridge — PCG Director of Solutions Marketing

Intro to ERP and MES —

Enterprise Resource Planning (ERP) Systems date back all the way to the last century and really started dominating the market in the 1990’s. Back then, ERP vendors like SAP, Oracle, and Baan claimed to be everything to everybody. They said, “ERP has everything needed for manufacturers to run their businesses”.

The Shop Floor Control modules of these ERP systems were used to create production or work orders, which required manual recording of shop floor operators’ time, issuing materials from the warehouse or shop floor (work in process), and receiving finished goods back into inventory inside the ERP.

This was a time-consuming process, fraught with errors and delays in system processing. Without a Manufacturing Execution System (MES), what was in the ERP rarely, if ever, matched the reality on the shop floor.

How MES Empowers ERP: Bridging the Shop Floor to Top Floor —

Today’s manufacturers rely heavily on ERP platforms to manage finance, supply chain, and business operations. Unfortunately, ERP systems can have blind spots on the shop floor.

This is where an MES can provide a solution. By connecting ERP with real-time production data, operators, and inventory, MES empowers ERP to deliver accurate data and actionable insights manufacturers need to operate predictably and cost–effectively.

Ideally, MES connects seamlessly to the ERP and provides automation and significantly more efficient shop floor execution with modules like:

    • Shop Floor Execution
    • Machine Monitoring
    • Quality Management
    • Compliance & CAPA
    • Electronic Batch Records (eBR) and Kitting
    • Connected Workers
    • Production Management
    • Finite Scheduling
    • Materials Management
    • ERP Connectors
    • Reporting & Analytics

Below is a graph representing needed MES solution modules. Click here or on the image to get more SmartFactory™ information.

Not all MES platforms on the market have this comprehensive suite of modules, and even fewer are tightly integrated with the top ERP systems in the market. As a manufacturer, you should be looking for this powerful combination of ERP and MES…together!

Why ERP Isn’t Enough for Manufacturers —

ERP systems are designed for enterprise planning, scheduling, procurement, order processing, and financial oversight. They’re excellent at answering questions like:

    • What orders need to be fulfilled?
    • What materials do we have on hand?
    • What is our planned production schedule?
    • What was our cost of goods sold this month?

Here’s the truth, though. ERP isn’t built to capture the day-to-day operations of the shop floor. Manufacturers face machine downtime, quality issues, and operator performance challenges that often go unrecorded until after an incident.

This lag in ERP processing results in missed deadlines, inaccurate cost tracking, and inefficient resource use, which is expensive in today’s market. Also, ERP alone isn’t connected to machine controllers or monitors on the shop floor, so it can’t provide predictive analytics or adapt when a plan meets “reality”. That reality may include machine downtime, operator absences, or just plain mistakes.

So, you NEED a strong MES to strengthen your faithful ERP in areas where it was never meant to go – despite what the ERP vendors tell you!

How MES Bridges the Key Gaps —

A Manufacturing Execution System integrates directly with machines, sensors, and operators on the shop floor, capturing and analyzing data in real time to create a live picture of production.

MES empowers manufacturers and their ERP systems by:

    • Providing real-time visibility into production status, scrap rates, and performance.
    • Aligning execution with planning by feeding accurate shop floor data back into ERP.
    • Closing the loop between what ERP plans and what actually happens.

For example, suppose ERP schedules 1,000 units of production in a production or work order. MES will show production managers and operators how many of the 1,000 units were produced, exactly when, and at what quality level.

Similarly, if an ERP creates a production order with a complex Bill of Materials (BOM), an MES solution will ensure the necessary inventory is available when it’s needed, to keep production moving smoothly. Better than ERP alone, MES with ERP helps remove common production errors and optimize inventory levels.

The Benefits of a Combined ERP + MES Operation —

When MES and ERP work together, manufacturers see dramatic improvements, including:

    • Accurate Data for Better Planning: Eliminate manual reporting delays with automated updates.
    • Improved Decision-Making: Leaders base decisions on real-time shop floor performance, not estimates.
    • Faster Response to Issues: Production managers can identify and correct issues immediately.
    • Compliance & Traceability: MES maintains detailed audit trails that ERP can leverage for reporting and regulatory compliance.
    • Much Better Key Performance Indicators (KPIs): Important KPIs such as Overall Equipment Effectiveness (OEE), predictive maintenance on machines, operator efficiency and quality/scrap can be measured easily and accurately.

Ultimately, MES ensures ERP delivers the “single source of truth” manufacturers strive for—backed by real-time data from the factory floor. This source of truth is not just financial, such as EBITDA, but it is also operational to give a better picture of productivity and the health of a company’s supply chain.

Our hundreds of customers report a wide range of improvements in their business key performance indicators (KPI’s) as shown in the graphic below. Some of the most impactful are:

    • Up to 50% improvement in line and machine downtime.
    • Up to 15% improvement in Overall Equipment Effectiveness (OEE), which is one of the most important measures of shop floor efficiency.
    • Large increases in efficiency, machine utilization, and labor productivity which translates into cost savings and much better throughput.

Click on the graphic below to go to our PCG InsightsHUB page and find excellent demo videos for MES and SmartFactory™!

Improvement in any of these metrics will bring real ROI to your business. If you have ERP only, or an older MES without modern cloud capabilities, then SmartFactory can be the driver of significant ROI gains and reduced costs!

How PCG Enables Customers with ERP and MES —

At PCG, we have two excellent options for MES and SmartFactory, both of which have all the advantages discussed in this blog and more. Both options are tightly integrated with the ERP systems that we offer. We also have over 20 years of experience implementing ERP with MES enhancements.

Option 1: Is an advanced, cloud- and subscription-based SmartFactory solution. It has been developed, packaged, and integrated by PCG and  includes all the modules and advantages noted in this article. SmartFactory is a smart manufacturing application, built on the Tulip platform, a top-ranked development platform.

On top of Tulip, we added functionality such as “Insights”, which is an AI agent-assisted business intelligence (BI) module that predicts events, such as when machines should be maintained.

We have created an entire website devoted to SmartFactory, located at asmartfactory.com.

Our Smart Factory solution runs on the Amazon Web Services (AWS) Commercial Cloud for non-government entities, such as commercial Aerospace, Automotive, or Industrial Manufacturing. It runs on the AWS Government Cloud for Aerospace and Defense manufacturers.

SmartFactory integrates seamlessly with the following top-ranked ERP systems:

    • Infor CloudSuite Industrial Enterprise (CSIE/LN) for enterprise discrete manufacturers such as industrial manufacturing, automotive, aerospace and defense, electronics, life sciences, etc.
    • Infor CloudSuite Industrial (CSI/SyteLine) for the same industries, only for SMB manufacturers.
    • NetSuite ERP for manufacturers and other industries, such as pharma and biotech, mostly for SMBs but appropriate for some enterprises.

Option 2: Is an on-prem Infor MES solution. Infor MES is an on-prem option that is fully integrated with on-prem Infor ERPs, such as:

    • Infor LN
    • Infor SyteLine
    • Infor XA
    • And several other ERPs that can be converted to the CloudSuites…

Here is PCG’s page for our Perform MES, featuring Infor MES at its core.

We also have created a PCG InsightsHUB which has over 400 demo and thought leadership videos.

The InsightsHUB includes videos for (click title to access):

To get full VIP Access to the HUB, email Dan Aldridge.

Final Thoughts —

ERP is essential for planning and managing resources, but it was never meant to operate in isolation. By bridging ERP with shop-floor execution, MES gives manufacturers a powerful toolset to compete in an increasingly data-driven industry.

If your ERP feels disconnected from the realities of production, now is the time to explore how MES can bring your operations into sharper focus.

We hope you enjoyed “What is MES? An Introduction to Manufacturing Execution Systems and the Smart Factory”!

To stay up to date on the latest information, follow PCG on LinkedIn.

 

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Dan Aldridge

Dan has 25+ years of corporate management experience including CEO, CFO and Controller of the consulting firm he founded and grew for 13 years. He has ERP software and digital transformation experience working with CEO’s, CFO’s, Controllers, and other C-levels at Fortune 500 companies. He specializes in Finance (e.g., Financial Statements, General Ledger, Accounts Payable, Cost Accounting) and Manufacturing (e.g., MRP, Production, Industry 4.0, Smart Factories, MES systems) consulting and project management.

Contact Dan Aldridge.

 

Work together with PCG for great Infor platform success. Contact us, and let’s get started!

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]]> Industry 5.0 and SmartFactory Considerations for Manufacturing https://pcgservices.com/smart-factory/industry-5-0-and-smartfactory-considerations-for-manufacturing/ Tue, 10 Oct 2023 15:52:42 +0000 https://pcgservices.com/?p=987509847 The post Industry 5.0 and SmartFactory Considerations for Manufacturing appeared first on PCG.

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PCG Blog

Embracing Industry 5.0 and SmartFactory Technologies.

Author: Ken Staresinic, Vice President, SmartFactory Solutions

Introduction

If you are a CEO or leader of a forward-thinking manufacturing company, you recognize the profound impact of Industry 5.0 and smart factory technologies on your business. These cutting-edge innovations represent the future of manufacturing, promising increased efficiency and cost savings and enhanced agility, quality, and customer satisfaction. This blog post explores how Industry 5.0 and smart factory technologies can revolutionize our operations, improve productivity, drive innovation, and ultimately contribute to our long-term success.

 

1. Industry 5.0: A Shift Towards Human-Centric Manufacturing—

Industry 5.0 builds upon the foundation of Industry 4.0, incorporating human-machine collaboration and emphasizing the critical role of skilled workers. This human-centric approach recognizes that while automation and AI can optimize processes, human creativity and problem-solving skills remain indispensable. Here is how Industry 5.0 improves manufacturing businesses:

      • Skilled Workforce Enhancement: Industry 5.0 empowers workforces with augmented reality (AR) and virtual reality (VR) tools, providing intuitive interfaces for complex tasks. Skilled workers can collaborate with machines in real-time, improving efficiency and precision to significantly reduces errors and rework, ultimately saving costs.
      • Customization and Flexibility: Industry 5.0 allows for rapid changeovers and quick customization of production lines. With human expertise backed by real-time data analytics, manufacturers can respond swiftly to market demands, reducing lead times and meeting customer expectations more effectively.
      • Innovative Problem-Solving: By fostering collaboration between humans and smart machines, Industry 5.0 encourages innovation. Employees focus on creative problem-solving, process improvement, and product development, driving continuous innovation and ensuring a competitive edge.

2. SmartFactory Technologies: The Backbone of Efficiency—

Smart factory technologies leverage the Internet of Things (IoT), AI, and automation to create interconnected, data-driven manufacturing ecosystems. There are five ways these technologies will transform a business:

      • Real-time Data Analytics: IoT sensors embedded in machinery and production lines continuously collect data. AI-driven analytics processes this data, providing valuable insights into production performance, quality, and maintenance needs. This information allows business leaders to make data-driven decisions, optimize production efficiency, and reduce downtime.
      • Predictive Maintenance: Machines become equipped with predictive maintenance capabilities. They self-diagnose issues and schedule maintenance proactively, preventing costly breakdowns and minimizing unplanned downtime resulting in substantial savings and higher productivity.
      • Supply Chain Optimization: Smart factory technologies provide end-to-end visibility into supply chain activities and performance. Businesses can monitor inventory levels, track shipments, and adjust production schedules in real-time. This leads to more efficient resource allocation, reduced lead times, and better cost management.
      • Quality Control: AI-powered systems and machine learning algorithms enhance quality control. They identify defects with greater accuracy and speed, reducing rework and ensuring that only high-quality products reach customers.
      • Energy Efficiency: Smart factories prioritize energy efficiency by monitoring and optimizing energy consumption. IoT sensors detect energy waste, and automation systems adjust settings to minimize environmental impact and lower energy costs.

3. Improving Business through Integration—

The true power of Industry 5.0 and smart factory technologies lies in their integration. See how this synergy leads to a holistic improvement in a business:

      • Operational Efficiency: When human expertise collaborates with smart machines in real-time, peak operational efficiency can be achieved. Production processes are streamlined, errors reduced, and costs minimized.
      • Enhanced Customer Experiences: Manufacturers meet customer demands promptly and accurately with real-time data analytics and supply chain optimization. Personalization and customization options further improve customer satisfaction, fostering loyalty and positive word-of-mouth.
      • Innovation Culture: The collaborative nature of Industry 5.0 encourages innovation. Employees are motivated to develop creative solutions, driving continuous improvement in products and processes.
      • Cost Savings: Predictive maintenance, supply chain optimization, and energy-efficient operations significantly reduce costs across the board. These savings can be reinvested in research and development or used to maintain competitive pricing.
      • Sustainability: With energy efficiency measures and reduced waste, a company’s environmental footprint will decrease. This not only aligns with corporate social responsibility but also appeals to eco-conscious customers.

4. There are Challenges and Considerations—

While the promise of Industry 5.0 and smart factory technologies is immense, business leaders must be mindful of particular challenges and considerations:

      • Investment: The initial investment in smart factory technologies can often be substantial. Businesses must carefully plan budgets and ensure a solid return on investment.
      • Workforce Transition: Transitioning to Industry 5.0 may require workforce retraining and upskilling. Manufacturers must invest in worker education, support, and adaptation to new technologies.
      • Data Security: The interconnected nature of smart factories can expose a business to cybersecurity risks. Robust cybersecurity measures are essential to protect sensitive data and operations.
      • Regulatory Compliance: It is essential to stay updated on regulations related to data privacy, cybersecurity, and environmental standards to ensure compliance.

 

General Conclusions—

Embracing Industry 5.0 and smart factory technologies represents a watershed moment for manufacturers. By adopting a human-centric approach, leveraging real-time data analytics, and fostering collaboration between skilled workers and smart machines, companies can drive efficiency, innovation, and sustainability. The integration of these technologies lead to a holistic improvement in business, benefiting bottom lines, enhancing customer experiences, and positioning businesses as leaders in a rapidly evolving industry.

Is There an Industry 5.0 and SmartFactory Solution I Should Consider?—

We think so. Many technology companies talk about Industry 4.0, Industry 5.0, and smart factory solutions, but they often fall short of delivering the value and benefit that manufacturers require with one exception.

The PCG SmartFactory solution set brings the power of Industry 5.0, IIoT, AI, machine learning, education and training, end-to-end information integration, labor tracking, quality management, security, scalability, ease of adaptation and management, and much more. This is all available for manufacturers on a subscription basis and easily snaps into your existing technology environment.

If you are starting out in your investigation of Industry 5.0 and smart factory options, you will be well served to visit asmartfactory.com

What’s Next?

The next logical step is working with a partner like PCG, who consistently and predictably delivers on the promise of Industry 5.0, smart factory, and advanced manufacturing and business integration solutions.

Consider PCG for your Industry 5.0 or smart factory project to help your organization adopt a new way of thinking, a new way of operating and continue to be an industry leader that expands the gap between you and your competitors.

Great manufacturing and operational excellence starts with PCG. Contact us, and let’s get started!

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]]> Why Your Business Needs SmartFactory for NetSuite https://pcgservices.com/smart-factory/why-your-business-needs-smartfactory-for-netsuite/ Wed, 05 Apr 2023 14:43:33 +0000 https://pcgservices.com/?p=34033 The post Why Your Business Needs SmartFactory for NetSuite appeared first on PCG.

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PCG Blog

Why Your Business Needs SmartFactory for NetSuite.

SmartFactory Insights

Author: David Gustovich, Vice President, SmartFactory™ @ PCG

Introduction

NetSuite is a cloud-based Enterprise Resource Planning (ERP) software that provides an all-in-one solution for businesses to manage their financials, inventory, supply chain, manufacturing, and more. It is a highly configurable and scalable system that can be personalized to meet the specific needs of various industries. The rise of the smart factory concept has provided a new opportunity for NetSuite ERP to expand its capabilities and provide an end-to-end solution for manufacturers.

A smart factory is a highly digitized and automated manufacturing facility that utilizes next generation technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and Machine Learning (ML) to improve operational efficiency, productivity, and quality. The concept of a smart factory is based on the idea of Industry 4.0, which is the fourth industrial revolution that focuses on integrating the physical and digital worlds to create a more intelligent and efficient manufacturing process.

1. Improved Efficiency

One of the primary benefits of SmartFactory™ for NetSuite is improved efficiency. By automating repetitive and manual tasks, businesses can reduce the amount of time and resources required to complete them. NetSuite can integrate with smart factory technologies such as equipment to automate processes like production counts, inventory management, and order fulfillment.

2. Enhanced Quality Control

Businesses that use SmartFactory™ for NetSuite can improve quality control by providing real-time data and insights into the manufacturing process. By analyzing this data, businesses can identify and address issues in real-time, leading to fewer defects and higher-quality products.

3. Increased Flexibility

SmartFactory™ for NetSuite can provide businesses with increased flexibility by allowing them to quickly adapt to changing market conditions and customer demands. NetSuite ERP can integrate with technologies such as labeling and printing and modular production lines to enable businesses to change their production processes and product offerings quickly and easily.

4. Cost Savings

SmartFactory™ for NetSuite can help businesses reduce costs by improving operational efficiency, reducing waste, and minimizing the need for manual labor. By integrating NetSuite with SmartFactory, businesses can further reduce costs by streamlining processes and improving overall efficiency.

5. Improved Customer Satisfaction

Because of SmartFactory™ integration with NetSuite, businesses can improve customer satisfaction by providing higher-quality products and faster delivery times. Businesses can improve their ability to track and manage inventory, reducing the likelihood of stockouts and delays in fulfillment.

 

The Role of NetSuite ERP in a SmartFactory™:

NetSuite provides a fully integrated business system that serves as the system of record for Manufacturers. By providing an end-to-end solution for managing the manufacturing process, NetSuite can enable businesses to take full advantage of the benefits of PCG’s SmartFactory™ solutions.

A. Integration with SmartFactory for NetSuite

SmartFactory™ easily integrates into NetSuite to leverage a manufacturers investment into their plant, people and equipment. By integrating with these, NetSuite is the system-of-record that provides real-time insights into the manufacturing process, enabling businesses to quickly identify and address issues as they arise.

B. Real-time Data Analysis

Because SmartFactory™ for NetSuite is fully connected, NetSuite provides real-time data analysis of the manufacturing process, enabling businesses to monitor and optimize performance in real-time. By analyzing data such as production rates, defect rates, and downtime, businesses can identify opportunities for improvement and take corrective action quickly.

C. Inventory Management

NetSuite ERP can provide real-time inventory management, enabling businesses to track inventory levels and automatically reorder when inventory levels reach a certain threshold. By integrating with smart factory technologies such as bar code readers, NetSuite ERP can provide even more accurate and timely inventory management.

D. Production Planning

By leveraging NetSuite Demand and Supply Planning, as well as MRP, SmartFactory™ for NetSuite can help to ensure pre-production activities are coordinated to support the production plan as well as effectively managing manufacturing execution processes to optimize material usage, labor productivity, machine utilization, and product quality.

E. Quality and Compliance

NetSuite-based manufacturing operations who utilize SmartFactory™ for NetSuite get ahead of quality problems by having real-time oversight of materials usage and critical process parameters and attributes that are required to maintain product compliance in regulated environments and consistently produce better products with lower scrap and rework rates.

About I4.OS | SmartFactory™

PCG’s SmartFactory™ solution gives manufacturers the power to build more product, more quickly, more intelligently and more profitably. The SmartFactory has three modules: Shop Floor Bundle, M2M Integration and Operational History Records.

To learn more about how SmartFactory™ for NetSuite can deliver Industry 4.0 to your company, or how businesses have come to rely on PCG to create intelligent manufacturing operations, call 800-265-1230 or visit the SmartFactory™ for NetSuite website at asmartfactory.com.

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]]> SMARTFACTORY: IoT & AI https://pcgservices.com/smart-factory/smartfactory-iot-ai/ Tue, 21 Sep 2021 15:11:43 +0000 https://pcgservices.com/?p=32648 The post SMARTFACTORY: IoT & AI appeared first on PCG.

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PCG Blog

IoT and AI.

SmartFactory Insights

Author: Justin DeWitt, Solution Architect @ PCG

Background

A key concept of Smart Factory is the element of advanced technology that allows the manufacturing sector the ability to work faster, smarter, and more efficiently through the implementation of digital technologies that serve as the evolution from manual labor and operations. Among these technologies, the terms AI and IoT are typically at the forefront of the conversation.

Several organizations taught the utilization of the Internet of things (IoT) and Artificial Intelligence (AI) as keystones to the Industry 4.0 revolution and the central adoption platforms of a Smart Factory. In truth, these are revolutionary elements that, when coupled with the right set of foundational technologies, can greatly enhance an organization’s ability to perform at much more advanced levels. But many organizations struggle to comprehend the difference between the two advancing technologies and to identify how their value, whether independent of one another or coupled together, can advance their operations in a way that will drive increased ROI.

IoT: Optimizing the Company

IoT is defined as a system of interrelated computing devices, including mechanical and digital machines, system objects, and even operators that are provided with unique identifiers who can transfer data over a network without requiring human-to-human or human-to- computer interaction. IoT provides true interconnectivity across an organization’s landscape. As an example, a laser-jet cutting machine can be triggered to begin cutting metal components for production once an ERP system releases the production order to the operation floor. No interaction or intervention is required.

This type of technology, when implemented successfully, can reduce bottlenecks in system processes and enhance the efficiency of operations at a global level through the reduction of complicated processes and convoluted workflows. As with the concept of automation processes which spurred the industry 3.0 revolution, the common desire is to reduce the level of human interaction that is required to complete assembly processes, especially in areas of repetitive operations that can be easily adapted for machine learning to take over and increase the pace of production while maintaining a higher level of quality control that becomes batch-based rather than individual unit effective. This type of advancement over the decades has been proven to be a clear path to cost reduction, scrap reduction, and improved output thus increasing ROI measurements.

This same philosophy directs the implementation of IoT into the business logic as well. While automation processes focus on the job shop set of executable operations, the IoT counterpart provides the same automation activities at the communication level, allowing one set of automated activities to initiate the start and end of operations of other automated activities. This coupling of automation provides organizations with the ability to run the majority of their organization free of human interactions thus eliminating the ‘in between’ processes of an automated assembly line. Through the utilization of IoT, organizations gain the ability to “Tune” their operations to run at peak efficiencies. Although this creates a dynamic approach to operational control, there is still a requirement of human intervention to manage these controls and report on the outputs of the processes. It is here where AI becomes valuable.

AI: Advancing the Company

AI is identified as the simulation of human intelligence in machines that are programmed to think from an analytical perspective that would mimic human actions. This type of technology allows machines to learn and adapt to issues and compute issue causality and reduction thus allowing for machines to conduct problem-solving activities.

An organization that adopts an AI platform, using technology to create interconnection between automated circuits, uses interconnections to live within the body of applications and conduct human-based processes thus allowing the organization to “think on its own” and provide real-time feedback for key operators to make optimal decisions with.

As an example, an assembly line robotic arm begins to operate a micro-level off from a calibrated standard.

Through the AI solution, the robotic arm can communicate with the Enterprise Asset Management (EAM) software and automatically generate a work order request to re- align itself. This would, in turn, automatically assign the available maintenance worker to handle this operation, assign the required tools, deliver instructions, and provide an estimate of time to complete the repair. All notifications and scheduling activities would operate free of human interaction.

This level of technology also allows the operations to become a predictive landscape where the organization can provide evaluation and recommendation on performance execution where the organizational operations would run at optimal output.

The combination of IoT and AI solutions benefits an organization by creating a symbiotic model for the organization to operate in. This model allows organizational managers the ability to transform into decision-makers and focus their talents on evaluating the output of the operations and engaging with the AI recommendations to continue optimal operation executions.

Coupling AI and IoT Technologies with ERP

As many organizations have adopted Enterprise Resource Planning software as the centralized tool to run their operations with, many of these platforms remain untethered to the actual operation centers in which they are meant to drive. This requires the organization to rely heavily on human intervention to manually execute operations between the ERP system and the rest of the organization.

For example, in procurement orders are entered into the ERP system, while it still often requires human interaction to communicate with the vendor and secure the dates of delivery.

AI and IoT processes can automate these interactions and not only generate communications with vendors to secure procurement of materials but evaluate vendor scorecards, get confirmations of dates and decide on the optimal vendor to be selected to handle the order of delivery. This reduces the human interaction to approving the procurement order in the ERP and reviewing and accepting the vendor selection for fulfillment. The timeframe spent on large procurement processes is greatly reduced and the organization can feel confident that they are getting the best value buys and the shortest lead times available through the use of AI and IoT technologies.

Similar examples can also be relevant to manufacturing processes. Many organizations execute production plans based on estimations and guesswork. Teams meet, look at historical data and determine what the capacity models will likely be for the operation. This type of planning has subsequent failures in that the model doesn’t take into consideration new and updated processes and automation that hasn’t been in operation long enough to apply historical knowledge on, true capacity based on machine capabilities if the system doesn’t have prior runs showing those operational outputs or potentials for scrap increases in production outputs with higher run-times.

Through IoT and AI placement, the planning engine can automatically get its information from the AI machine that conducts the analysis based on the connected communication links provided by the IoT connectors. This allows for the planning engine to utilize real production details and generate models based on actual output capabilities. This type of technological advancement allows an organization to become proactive rather than reactive.

 

How to Implement AI and IoT Advancements

Many may promote the concept of AI products and IoT solutions, but few go as far as to discuss the proper way to implement these advancements and deliver a formal Industry 4.0 solution model to an organization. PCG not only discusses it but has written the book on how to properly adopt Industry 4.0 technologies and deliver on a Smart Factory solution through its I4.OS model.

The concept in adopting Smart Factory technologies such as AI and IoT applications is to understand that the output of these solutions is only as good as its core content. Simply adding these advanced technologies over the existing platforms won’t provide your organization with the ROI that you will be expecting. The reason is that if existing systems are segmented, disjointed, and lacking centralized and standardized sources for data and communication then it severely limits the capability of the Smart Factory to maximize the benefit of advanced technology solutions.

To become a fully enabled Smart Factory organization, you must first develop the foundation, align on a centralized system framework, and deliver on an advanced set of business processes to properly execute these new solutions.

PCG works with businesses of all types and stages of maturity to help align these critical areas of a business to more easily adopt Smart Factory technology while ensuring the greatest ROI from the technology adoption. PCG’s I4.OS approach to Smart Factory makes your organization not only predicable but sustainable and evolutionary.

 

 

What’s Next?

Working with a partner such as PCG, who facilitates an end-to-end business model approach to customer adoption of Smart Factory, will greatly reduce costly errors in the evaluation, choice, implementation, business release and immediate performance of your Smart Factory initiative. This, in turn, will shorten lag times and increase productivity growth so your business can earn more rapid ROI from your investment.

Smart Factory, IoT and AI implementation leaders, like PCG, focus on implementation strategies and customer adoption programs that make industrial digital transformation projects more accessible and easier to deliver for everyone.

Consider PCG for your Smart Factory initiative to help your organization to adopt a new way of thinking, a new way of operating and continue to be an industry leader that expands the gap between you and your competitors.

A Smart Factory is your next step to a better and more profitable business. Contact PCG and let’s get started!

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]]> The SMARTFACTORY https://pcgservices.com/smart-factory/the-smartfactory/ Tue, 03 Aug 2021 15:51:08 +0000 https://pcgservices.com/?p=32522 The post The SMARTFACTORY appeared first on PCG.

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PCG Blog

The SMARTFACTORY.

SmartFactory Insights

Author: Justin DeWitt, Solution Architect @ PCG

The Evolution of Smart Factory in Modern Industries

As consumer markets continue to grow across the global marketplace, the ever-present need of industrial manufacturers to provide higher quality, and lower cost consumer products at higher outputs are growing as well.

Alongside this change is the constant innovation and introduction of business technologies that deliver new business processes, functionality and capability to serve growing markets.

At the intersection of these two are value-added ROI-based solutions for businesses that deliver the next level of evolutionary production processes—the Smart Factory.

What is a Smart Factory?

In the past, the term has suffered from a variety of definitions, often based on different standards or technology vendor descriptions.

Today the definition has solidified to mean the adoption of a highly digitalized environment that provides connectivity across all manufacturing operations, including the shop floor, to transform the mechanized and once archaic operational tasks of assembly, quality control, and inventory management into processes that link tools and machines to provide input and outputs to users resulting in more efficient and rapid decisions.

Important Smart Factory outputs are the reduction of manufacturing time, with improved quality, as well as increasing in operational efficiencies, non-predicted offline times and other systematic bottlenecks that keep a business from capturing every viable profit opportunity within their operations.

The Smart Factory is considered an important component of the larger end-to-end business refinement process of Industry 4.0. Depending on the setup, Smart Factory makes use of concepts and innovative solutions such as the Internet of Things (IoT), Industrial Automation equipment, Manufacturing Execution Systems (MES), Enterprise Asset Managers (EAMs), and even Augmented Reality (AR) systems for virtual reality to aid training, assembly and engineering processes.

Three Foundational Elements of Smart Factory

A. Accurate and Trusted Information

Consistent and accurate information is a key component of every business and the first foundational element of the Smart Factory. Without accurate information, the Smart Factory isn’t smart.

Data accuracy comes from an implementation process known as Critical Data Analysis. This process seeks to untangle the constraints often associated with the management of critical data elements that drive analytics, business execution activities and link key automated business practices. This Smart Factory component focuses on:

  • Untangling the web of constrained data elements
  • Applying critical data analysis to unlock qualitative information required to efficiently run the operations
  • And place those data sets in a single-tenant system where the information can be properly and more efficiently managed and secured

B. Comprehensive Communication

Communication is the second foundational element of the Smart Factory. While loading critical data elements into a single system allows for easier and more accurate management of the information, it does little to help aid operations if business systems cannot access the data.

Critical to the Smart Factory is mapping operational systems and linking operational paths to the information needed to smooth operations, increase productivity and drive additional profitability. Smart Factory-based businesses configure and manage the communication between machines, people, production planning, production operations, financials and reporting for a comprehensive and end-to-end view of the business. The outcome of Smart Factory communication is the evolution to a dynamic production environment where processes can now interact across lines of business and business solutions.

C. Smart or Intelligent Automation

The third and final foundational element of the Smart Factory is comprehensive automation. Building on the first two foundational elements a business can easily adopt a true systematic automation environment leading to a digital shop floor transformation of the business. Real-time Analytics and KPI measures become readily available for management and operations to make immediate and accurate decisions. Production and equipment operations can benefit from Artificial Intelligence (AI) to notify service of issues, drastically reducing unplanned downtime, and provide enhanced processes for retooling and equipment calibration to make shop floors both more efficient and flexible.

The Effects of the Smart Factory

The Smart Factory is the next step in business operational improvement, based on advanced technologies and Industry 4.0 principles. Its impacts are broad and far-reaching across industries, businesses and individual jobs and roles.

As Smart Factories continue to be adopted the roles of users and operators will become more complex. These complexities will require people to adopt new roles that are more centrically-driven around technology execution and management, with automation of processes focused on routine activities that are repeatable, simplified, or even dangerous to people.

Businesses will experience talent gaps as organizations source employees with digitally-driven backgrounds and skillsets. More valuable skill-centric labor will, in turn, drive increased wages, whose cost will be offset by increased operational efficiencies within the shop floor.
The Smart Factory helps organizations reduce the impacts of labor shortages or high turnover associated with low-cost employment requirements.

Many industries have been working toward the Smart Factory for some time. Two leaders are Automotive and Aerospace and Defense. In many ways, these industries have set the standard of what other industries should consider and follow in the adoption of advanced technologies.

While your specific industry may be unique in technology adoption, understand that the Smart Factory and Industry 4.0 are being considered in your industry, right now. Businesses are adopting and implementing these technologies and industries are being disrupted and transformed, reshaping who the leaders will be.

Getting Started On Your Smart Factory

The adoption of a Smart Factory within your shop floor environment is a huge transformation toward better operations, enhanced customer experiences and improved profitability. Organizational Change Management approaches, geared specifically around user adoption of new technologies and improved business processes that maximize efficiencies, are critical to the overall success of the Smart Factory evolution.

As a result, picking the right partner to work with is a critical success factor to consider. In your evaluation, it is important to identify a partner who is proven at rapidly, economically and predictably delivering the three foundational elements of the Smart Factory. Seek a partner who has and an end-to-end business-driven approach with deep experience in manufacturing automation, operations, service, production optimization and user acceptance. Doing so will reduce the time, effort and cost associated with creating your own Smart Factory.

Also, consider how the Smart Factory can become a cornerstone effort toward becoming a fully enabled Industry 4.0 business. An Industry 4.0 enabled business integrates leading, scalable and secure Enterprise Resource Planning (ERP), Product Lifecycle Management (PLM), Configure Price Quote (CPQ), Mobility and Advanced Reporting and Analytics. By adopting a holistic Industry 4.0 approach your business and manufacturing operations can emerge as a leader in customer experiences, much-improved production and operational efficiencies, product and process innovation, accurate decision making and exceptional profitability.

What’s Next?

Working with a partner such as PCG, who facilitates an end-to-end business model approach to customer adoption of Smart Factory, will greatly reduce costly errors in the evaluation, choice, implementation, business release and immediate performance of your Smart Factory initiative. This, in turn, will shorten lag times and increase productivity growth so your business can earn more rapid ROI’s from your investment.

Smart Factory implementation leaders, like PCG, focus on implementation strategies and customer adoption programs that make industrial digital transformation projects more accessible and easier to deliver for everyone.
Consider PCG for your Smart Factory initiative to help your organization to adopt a new way of thinking, a new way of operating and continue to be an industry leader that expands the gap between you and your competitors.

A Smart Factory is your next step to a better and more profitable business. Contact PCG and let’s get started!

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