ERP VS MES - What do they mean and what are their differences?

ERP VS MES - What do they mean and what are their differences?

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Rachel Lim
CDMO/CROs at Seal
2 minute read
Table of contents

    There are various abbreviations that are often thrown around in the process development and manufacturing landscape. You may have heard of ERP and MES - but what do they actually refer to?

    Enterprise Resource Planning 

    As the name suggests, Enterprise Resource Planning (ERP) is a tool that supports the planning of resources within an organisation - this usually covers the 4Ms as follows:

    • Manpower: apart from human resources, this also includes the skills, technology, and organisational resources
    • Machine: often refers to equipment and instruments, but can also include hardware or apparatus unique to specific manufacturing industries
    • Material: refers to raw materials, consumables, quality aspects, and can even refer to general manufacturing information
    • Method: refers to the manufacturing process, protocols and/or procedures

    Often, ERPs are a software system used to manage the business operations of an organisation. An ERP helps support company-wide collaborations and systems, often with a focus on office or administrative based functions from finance, procurement, human resources related issues, to supply chain management, logistical issues, and even customer engagement templates. ERP enables and aligns all these different processes together in one fluid system. By connecting processes and workflows, organisations can accelerate operational impact and efficiency. In addition, an ERP provides more visibility across the organisation, enabling employees from different departments to make decisions or actions more rapidly.

    Potential Challenges of Adopting an ERP

    There are several challenges of adopting an ERP - a few are listed as follows.

    • Cost
      Depending on your organisational needs and requirements, an ERP system can be expensive and may be priced differently based on the number of users. Often, ERP software templates for individual departments can be implemented based on business organisational needs - thus saving you from having to invest in installing a complete software change within the organisation without knowing if this is the ERP functions you are looking for.
    • Integrating the ERP system into your organisation
      The ERP solution should ideally include aspects of your current workflows and processes, but also include features that will be important or useful in any future organisation growth.
    • Implementation
      Implementation often involves onboarding, training, and trial phases (if necessary). This may take a long time, depending on the number of users, the depth and extent of ERP integration. It will often take time for users to play around and get used to the system before they are optimised for use.

    Manufacturing Execution System (MES)

    A Manufacturing Execution System (MES) is a system used in manufacturing industries to track, record, and document the manufacturing process from raw materials to the final finished product. A MES integrates all manufacturing processes and activities, from the scheduling, planning, manufacturing data, quality control, inventory management, and can even include aspects such as approvals and reporting. The MES can act as a centralised platform for communication and collaboration between various departments and to both internal and external stakeholders involved in the manufacturing process.

    MES may not always be implemented in smaller manufacturing companies due to the smaller scale of the manufacturing. However, regardless of what manufacturing capacity or industry you are in - in today's competitive manufacturing landscape, it is essential for organisations to constantly improve, refine and upgrade their systems, processes, and workflows to increase their manufacturing efficiency. By doing so, they are able to stay competitive and differentiate themselves from other competitors, enabling them to stay as a top market player. MES will often be adopted as an organisation's life cycle increases, especially when they start to scale and grow in size, capacity and increase their customer base.

    So what are the benefits of a MES? 

    An MES provides substantial improvements from traditional paper-based manufacturing processes. They enable manufacturing companies to create and streamline manufacturing processes. All data is on one centralised platform which people can access - thus reducing the opportunities for man-made errors and mistakes, creating a flawless manufacturing process. This optimisation of production can save costs, time, manpower, and effort - ultimately increasing production efficiency.

    The centralisation of data also enables automation of production processes. This reduces unnecessary manpower, waste, and time - thus enabling technicians and operators to redirect their time into other resources that may improve manufacturing efficiency.

    An MES also provides real time information about the production process. This provides visibility into the entire production process, from data collection and data analysis of different sections in the manufacturing process, to tracking and monitoring inventory levels. The immediate visibility of analysed data enables technicians and operators to rapidly make key decisions and spot any deviations, thus improving the quality, efficiency and ensuring consistency of the manufactured product.

    Potential challenges 

    As with ERPs, companies are often sceptical of adopting an MES system as they may be afraid to scale-up and move from previous paper based manufacturing practices. It may be difficult to find a MES that fits perfectly with your manufacturing needs. Additional challenges would include the cost of the system, implementation timelines, and providing training to users - these are often obstacles that companies do not want to invest in. The MES may also have to be adapted to different manufacturing production lines - which involves additional time and costs.

    Differences 

    ERP and MES are often associated with each other. While both systems are important for a manufacturing organisation, they serve completely different purposes. As mentioned above, an ERP system is a business management tool that integrates all faucets of an organisation into one system, providing an overall view of the business that can be accessed by all employees. On the other hand, an MES system provides detailed information purely relating to the production processes, from the fermentation, upstream, downstream to shop floor operations within the factory or bioplant. This can include documentation in electronic batch records to GMP-compliant documents.

    When used together, an ERP and an MES creates an integrated ecosystem that offers a holistic view of all aspects of an organisation, from finance, human resources, to supply chain management and customer management templates. The integration of these two systems enables combining robust information and data that increases efficiency, agility, flexibility of the operations within an organisation - helping you bring your business to the next level.

    How can Seal help?

    seal provides a unified platform for manufacturing technicians and operators to build workflows that suit their individual organisational or team needs. With an intuitive review and approval interface, Seal is a comprehensive solution that bridges the gap between production - perfect for all your organisational needs to ensure the most optimal manufacturing processes.