Manufacturers struggle with Build versus Buy for their MES and what are the Core 4 Elements

Manufacturers struggle with Build versus Buy for their MES and what are the Core 4 Elements

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The opinions and views within this video, are from a well known industry expert Walker Reynolds



The MES Reality: Why Off-the-Shelf Solutions Don't Work & The Core Four Functions

Introduction

Manufacturing Execution Systems (MES) represent one of the most misunderstood technologies in industrial automation. While many believe they can purchase MES "off the shelf" with minimal configuration, the reality is starkly different. This article addresses common misconceptions about MES implementation and clarifies why every organization ultimately builds their MES system, whether they realize it or not.

Source Video: MES Build vs Buy Reality Check

The Fundamental Truth About MES

You Will Build, Not Buy

Critical Point: Every manufacturer will build their MES system. This isn't a choice—it's an inevitable reality. The only question is whether you'll:

  • Build from day one with a proper platform
  • Waste money on off-the-shelf solutions first, then build later
  • Purchase tools and platforms, then extend them (which is still building)

Why MES Can't Be Bought Off-the-Shelf

Unlike SCADA systems, which have standardized functions across all implementations, MES represents an abstraction for business-specific functions that are core to what each manufacturer does. Manufacturing execution is literally where manufacturing takes place—making it impossible to standardize.

Understanding the MES Complexity Pyramid

The Automation Workforce Distribution

Industry Statistics:

  • 60% of professionals work at Level 1 (PLC/HMI controls)
  • Smaller percentage work at Level 2 (SCADA)
  • Microscopic number work at Level 3 (MES)

Why So Few Work in MES

Only 5-10% of manufacturers have digital manufacturing execution systems, despite all having the same fundamental problems. The reason: MES is extraordinarily difficult. It's so complex that you cannot build an effective off-the-shelf solution.

The Core Four: Essential MES Functions

Every MES implementation includes these fundamental capabilities, regardless of industry or business model:

1. Work Order Management

Always Present in Every Implementation

  • Converts planned manufacturing (from ERP) into executable work orders
  • Creates abstraction for all work performed on production lines
  • Bridges planning systems with execution reality
  • May use actual ERP work orders or abstract shift/hourly work orders

Why It's Core: You always need some work order structure to track events against, even in proof-of-concept implementations.

2. Scheduling Management

Universal Requirement

  • Manages production sequencing and timing
  • May consume schedules from ERP or create internal schedules
  • Includes everything from shift-level to detailed production scheduling
  • Maps planned work to actual process control events

Why It's Core: Even with minimal scheduling (hourly or shift-based), you're always doing some form of schedule management.

3. Overall Equipment Effectiveness (OEE)

The Most Critical Metric

  • Requires only 5 data points: state, infeed count, outfeed count, waste count, standard rate
  • Can calculate with just 2 of the 3 counts (the third can be derived)
  • Always the first analytical function implemented
  • Comprises availability, performance, and quality metrics

Why It's Core:

  • Literally the first data points connected in any MES implementation
  • Enables comparison of unlike assets using standardized metrics
  • Essential for identifying where to invest time and resources

Business Value: OEE provides the abstraction needed to compare completely different processes using one standardized number, enabling data-driven investment decisions.

4. Downtime Tracking

Subset of OEE but Called Out Separately

  • Categorizes and reports on equipment downtime events
  • Often the only function implemented in initial phases
  • Routes state events for categorization and analysis
  • Foundation for continuous improvement initiatives

Why It's Core: Frequently the sole focus of proof-of-concept implementations, demonstrating its fundamental importance.

Extended MES Capabilities: Beyond the Core Four

Quality Management Functions

Not Core Functions:

  • Recipe Management: Important for batch processes but not universal
  • Digital Quality Inspection Plans (DQIP): Valuable but not implemented for years in many systems
  • Statistical Process Control (SPC): Increasingly handled at edge level
  • Track and Trace: Important but highly variable between organizations

Why Track and Trace Isn't Core

Evidence Against Core Status:

  • Most organizations operate with paper-based traceability for years
  • When quality issues arise, they spend weeks manually tracking genealogy
  • Different definitions across organizations (some want raw materials only, others want complete process history)
  • Rarely implemented in proof-of-concept phases
  • Typically addressed 6-12 months after initial MES deployment

Other Extended Functions

  • Digital work instructions
  • Inventory management integration
  • Materials handling and line supply
  • ERP integration
  • Finite scheduling
  • Document management

Common Misconceptions Debunked

Myth: Quality is the Primary Driver for MES

Reality: The top reasons manufacturers implement MES are:

  1. Real-time insight into current state - Need immediate visibility into operations
  2. Performance comparison across assets - Use OEE to compare unlike processes
  3. Quality management - Important but typically ranks in top 5, not #1

Myth: Off-the-Shelf Solutions Work with Configuration

Reality: Software developers must make assumptions about business operations to create data models that work for MES functions. These assumptions never align perfectly with actual business needs.

Myth: Integration is a Core Function

Reality: While important, ERP integration typically occurs 6-12 months after initial MES implementation. It's extended functionality, not core.

How Fuuz AI Solves the Build vs. Buy Dilemma

Platform-Based Approach

Fuuz AI recognizes that every MES is unique and provides the foundation for building exactly what each business needs:

Core Four Foundation:

  • Work Order Management: Flexible work order abstraction that adapts to any business process
  • Scheduling Integration: Seamless connection with existing planning systems
  • OEE Engine: Real-time calculation and analysis of equipment effectiveness
  • Downtime Analytics: Comprehensive categorization and reporting

Extensible Architecture:

  • Start with Core Four implementation
  • Add extended capabilities as business needs evolve
  • Integrate with any existing system or process
  • Customize without platform limitations

The Fuuz AI Advantage

No Assumptions About Your Business:

  • Platform adapts to your unique processes
  • No forced standardization that eliminates competitive advantage
  • Flexible data models that accommodate any manufacturing workflow

Built for Extension:

  • Add track and trace when ready
  • Integrate quality management systems
  • Connect with existing ERP and planning systems
  • Scale functionality as business grows

Industrial-Grade Reliability:

  • Connect, collect, and store industrial data reliably
  • Real-time processing for time-critical operations
  • Proven in diverse manufacturing environments

The Learning Process: Why Building MES Teaches You About Your Business

Discovering Your Manufacturing Workflow

Building MES forces organizations to clearly define:

  • How they sell products
  • How they plan manufacturing
  • How they execute manufacturing
  • How they monitor and control processes
  • How they manage inventory and shipping

The 10,000-Foot View

At a high level, manufacturing isn't complicated—every manufacturer follows the same basic pattern. The complexity lies in the unique details of how each organization executes these functions.

Business Process Documentation

The MES building process reveals:

  • Hidden inefficiencies in current processes
  • Opportunities for improvement and optimization
  • Critical data points for decision-making
  • Integration points between different business functions

Why Fuuz AI is the Right Choice for Your MES Journey

Honest Assessment

Fuuz AI acknowledges what others won't: you're going to build your MES regardless. We provide the right foundation to do it efficiently and effectively.

Proven Methodology

  • Start with Core Four implementation
  • Use proven industrial IoT platform
  • Extend capabilities based on actual business needs
  • Learn about your business through the building process

Future-Proof Architecture

  • Platform grows with your business
  • No limitations on customization or extension
  • Integrate with any existing or future systems
  • Adapt to changing business requirements

Real-World Experience

  • Thousands of implementations across diverse industries
  • Deep understanding of what works (and what doesn't)
  • Focus on business value over technical features
  • Commitment to solving real manufacturing problems

Conclusion

The debate about building vs. buying MES isn't really a debate—it's a fundamental misunderstanding of what MES represents. Every organization builds their MES because every organization's manufacturing execution requirements are unique to their business.

The real choice is whether to start with the right foundation or waste time and money on solutions that can't accommodate your actual needs. Fuuz AI provides that foundation: a platform that acknowledges the reality of MES complexity while providing the tools to build exactly what your business requires.

Stop pretending you can buy MES off the shelf. Start with a platform designed for the reality of manufacturing execution, and build something that actually works for your business.


Ready to build your MES the right way? Contact Fuuz AI to learn how our platform provides the foundation for creating exactly the manufacturing execution system your business needs—starting with the Core Four and growing as your requirements evolve.

Remember: MES is not MES is not MES. Every implementation is unique because every business is unique. The question isn't whether you'll build—it's whether you'll start with the right foundation.


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