Intelligent Manufacturing € February € 1997 € Vol. 3 € No. 2

Control Suppliers Migrate to MES

The 1996 worldwide sales of manufacturing execution system (MES) software and related services was over $160 million, according to Automation Research Corp. (ARC) (Dedham, Mass.), a market research and management consulting firm. The MES market is served primarily by a relatively small number of independent software suppliers, though larger control and human/machine interface (HMI) companies are now targeting this market as well.

MES software (sometimes called production management software) can provide manufacturers with such benefits as real-time tracking, real-time dispatch and traceability. Some systems also contain integrated finite scheduling and statistical process control. These functionalities can aid manufacturers in reducing production costs, improving enterprise resource planning (ERP) system coordination with the factory floor, speed manufacturing cycle times, and facilitate improved customer service and product quality.

The current generation of MES software is based on objects modeled on a plant's production process and provides more flexibility and configurability. Even so, installing MES systems is a lengthy and costly process, taking a year-and-a-half or longer in large plants. Because MES projects involve extensive system integration services, manufacturers need to be careful in selecting a supplier. Companies selecting MES vendors need to be assured that their prospective partner will be capable of an ongoing relationship, available to solve problems and update the system.

Recently, several control and human/machine interface (HMI) companies have begun to offer MES solutions, such as ABB, GE FANUC and Wonderware. Many control companies are increasingly attempting to provide total industry solutions that may include: control hardware and software, advanced control applications, material handling equipment, and MES software. Control companies are looking to enter this arena because of the potential market value of this adjoining industry.

Market value is migrating away from hardware-based to software-based solutions. This is being driven by a decreasing proportion of manufacturer's capital budget spent on industrial equipment versus an increasing proportion spent on information technology (IT). While HMI companies have greater resources than most MES vendors, these companies lack the sophisticated system integration capabilities that are required. The HMI companies do, however, provide generic solutions at a cost low enough that many middle-sized manufacturers can now afford these systems.

Both control and HMI companies are seeking entry into this market because of the strategic position that the MES object model provides in creating integrated manufacturing solution suites. The traditional, multi-tiered model with three to five distinct layers has increasingly been challenged from both an architectural and functional point of view. The middle layer has been severely altered by changes in requirements for MES. Reengineering and restructuring has reduced the number of indirect labor and middle management personnel who, in the past, were responsible for analyzing and responding to vast amounts of data.

The middle layer between control systems and business systems in a manufacturing plant has lost its clear hardware-based identity, as the same hardware platforms are increasingly being used for both business system functions above, and control systems below. Functions that were once identified as supervisory control can now be integrated directly on powerful workstations found in distributed control systems.