Linking Plant-floor and Enterprise Systems for Greater Manufacturing Agility (Review Report)

Table of Contents

• Overview
  • Catalyst
  • Summary
  • Methodology
• Executive Summary
  • Introduction
  • Identifying the divide between the plant-floor and the enterprise (Market Focus)
  • Strategies to link plant-floor and enterprise systems (Strategy Focus)
  • Deciphering the MES landscape (Technology Focus)
  • MES in the ... manufacturing industry (Databook)
• Table of Contents
• Table of figures
• Table of tables
• Identifying the divide between the plant-floor and the enterprise (market focus)
  • Summary
  • Manufacturers are looking to improve market agility as down-stream dynamics shift
    • Changes in customer demand are forcing manufacturers to react quicker or lose business
      • Customers want newer products faster
      • Larger customers and competition are putting significant pressure on prices
      • A trend for shorter production runs while maintaining scale is becoming a headache for manufacturers
    • Changes in competition continue to hound manufacturers
    • Natural and other unforeseen disasters occurring are forcing manufacturers to assess their agility
  • Manufacturers are experiencing rising cost pressures
    • The basic cost of materials is increasing and squeezing profits
    • Overhead costs such as energy are also increasing
  • Regulatory compliance requires a rapid response
    • Track and tracing is heavily affecting the batch manufacturing industry
    • Implementing a compliance strategy is only one step towards total compliance
    • Manufacturers need to ensure that they are meeting regulatory compliance at an operational level
    • Documentation and proof of compliance needs to be managed effectively
• Strategies to link plant-floor and enterprise systems (Strategy Focus)
  • Summary
  • Manufacturers are trying to link their plant-floor and enterprise systems
    • The majority of manufacturing companies are either planning or acting on a linking strategy
    • Manufacturers expect a range of benefits from linking the two disparate environments
    • Reporting on key performance indicators is a core component for manufacturers
  • Different systems have different priorities for closing the gap
    • Plant-floor systems require significant work to integrate with enterprise systems
    • ERP is the most common enterprise technology being integrated with the shop-floor
    • Standardizing MES and automation technology is an emerging strategy
  • Implementing dedicated technology can assist manufacturers
    • Traditional manufacturing execution systems provide significant functionality
      • The definition of MES is very clouded
      • Key processes are supported by MES technology
    • Newer manufacturing intelligence technology is becoming popular
• Deciphering the MES landscape (technology Focus)
  • Summary
  • MES technology is evolving towards manufacturing intelligence
    • A shift towards more intelligence-driven data is driving technology development
    • There still exists demand for traditional MES, particularly around execution
      • Those vendors focusing on traditional MES will need to develop MI functionality
      • MI vendors need to differentiate themselves from traditional MES
      • Services vendors should seek out traditional MES vendors with a focus on MI
    • Manufacturers are looking for greater visibility and more advanced analytics
      • Traditional MES vendors need to focus on creating better MI capabilities to compete
      • Innovation should be a key strategy for MI vendors
      • Services vendors with skills around BI have an inherent advantage
    • MES investment is becoming a more corporate initiative
      • Vendors will need to target their go-to-market strategies accordingly
  • Competitive dynamics are changing rapidly
    • Three key vendor types play in the MES and MI market
      • Automation vendors are strong in traditional execution-driven MES
      • Pure-plays are doing surprisingly well in the MES and MI market
      • Enterprise apps vendors are starting to push down, but with mixed MI or MES strategies
      • Services vendors need to choose their options wisely
    • Industry focus is still a strong differentiator in investment decisions
    • Acquisition is a must for strong growth in this market
      • Acquiring to enter an industry carries a relatively high risk level
      • Geographical acquisition should be a low priority
      • Technology acquisition can be a rewarding strategy
  • The traditional MES market is set to experience strong growth
    • The global MES market will more than double by 2012
    • North America is the largest region for MES investment
    • Batch manufacturers are outspending both process and discrete companies
    • The semiconductor industry is the largest among the discrete industries for MES investment
    • A focus on regulation is making the pharmaceutical industry the largest batch industry
    • Chemical and oil & gas manufacturing form the bulk of the process industry
• MES in the German manufacturing industry (Databook)
  • Introduction
    • Definitions
  • Total German MES investment by revenue type 2006-12 ($m)
  • Total German MES investment by manufacturing type 2006-12 ($m)
  • Total German MES investment by discrete industry 2006-12 ($m)
  • Total German MES investment by batch industry 2006-12 ($m)
  • Total German MES investment by process industry 2006-12 ($m)
• MES in the US manufacturing industry (Databook)
  • Introduction
    • Definitions
  • Total US MES investment by revenue type 2006-12 ($m)
  • Total US MES investment by manufacturing type 2006-12 ($m)
  • Total US MES investment by discrete industry 2006-12 ($m)
  • Total US MES investment by batch industry 2006-12 ($m)
  • Total US MES investment by process industry 2006-12 ($m)
• APPENDIX
  • Definitions
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: Global MES software and services revenues 2006-12
    • Table 2: Regional MES investment 2006-12
    • Table 3: MES investment by manufacturing type 2006-12
    • Table 4: MES investment by discrete industry 2006-12
    • Table 5: MES investment by batch industry 2006-12
    • Table 6: MES investment by process industry 2006-12
    • Table 7: Manufacturing execution systems definitions
    • Table 8: Total German MES investment by revenue type 2006-12 ($m)
    • Table 9: Total German MES investment by manufacturing type 2006-12 ($m)
    • Table 10: Total German MES investment by discrete industry 2006-12 ($m)
    • Table 11: Total German MES investment by batch industry 2006-12 ($m)
    • Table 12: Total German MES investment by process industry 2006-12 ($m)
    • Table 13: Manufacturing execution systems definitions
    • Table 14: Total US MES investment by revenue type 2006-12 ($m)
    • Table 15: Total US MES investment by manufacturing type 2006-12 ($m)
    • Table 16: Total US MES investment by discrete industry 2006-12 ($m)
    • Table 17: Total US MES investment by batch industry 2006-12 ($m)
    • Table 18: Total US MES investment by process industry 2006-12 ($m)
  • List of Figures
    • Figure 1: Increasing customer satisfaction is the most important priority for manufacturers
    • Figure 2: Manufacturing regulations target multiple areas
    • Figure 3: Most manufacturers have a strategy for linking plant-floor and enterprise systems
    • Figure 4: Discrete manufacturers are leading the way for plant-floor to enterprise integration
    • Figure 5: Production planning is seen as the greatest benefit of linking the two environments
    • Figure 6: Plant-floor control systems are the top priority for manufacturers
    • Figure 7: ERP remains the core enterprise application for integration work
    • Figure 8: MES has eleven core components as set out by MESA
    • Figure 9: Three types of vendors are playing in the MES market
    • Figure 10: Global MES software and services revenues 2006-12
    • Figure 11: Regional MES investment 2006-12
    • Figure 12: MES investment by manufacturing type 2006-12
    • Figure 13: MES investment by discrete industry 2006-12
    • Figure 14: MES investment by batch industry 2006-12
    • Figure 15: MES investment by process industry 2006-12
    • Figure 16: Total German MES investment by revenue type 2006-12 ($m)
    • Figure 17: Total German MES investment by manufacturing type 2006-12 ($m)
    • Figure 18: Total German MES investment by discrete industry 2006-12 ($m)
    • Figure 19: Total German MES investment by batch industry 2006-12 ($m)
    • Figure 20: Total German MES investment by process industry 2006-12 ($m)
    • Figure 21: Total US MES investment by revenue type 2006-12 ($m)
    • Figure 22: Total US MES investment by manufacturing type 2006-12 ($m)
    • Figure 23: Total US MES investment by discrete industry 2006-12 ($m)
    • Figure 24: Total US MES investment by batch industry 2006-12 ($m)
    • Figure 25: Total US MES investment by process industry 2006-12 ($m)