Why All Manufacturers Build their MES System Part 2

Why All Manufacturers Build Their MES System — Part 2

Article Type: FAQ Audience: All Users Module: FAQ

While Part 1 explained the technical reasons why manufacturers choose to build rather than buy MES systems, this article examines a real-world case study that demonstrates these principles in action. This customer example illustrates how competitive advantage often lies in unique business processes that cannot be accommodated by off-the-shelf solutions — and how Fuuz's platform approach enables true digital transformation without forcing businesses to abandon what makes them successful.

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

🎥 Video walkthrough: Why Organizations Build Their MES Rather Than Buy It Off the Shelf — Part 2 — Watch on YouTube

Customer Background: When Competitive Advantage Meets Technology Constraints

The Business Context

This manufacturer operates in a highly competitive market where they successfully compete against much larger organizations despite being a smaller company. Their competitive advantage stems from their unique manufacturing workflow, centered around what they call "job jackets" — a sophisticated paper-based manufacturing execution system.

Existing Technology Stack

Enterprise Level:

• CRM: Unconnected basic system
• ERP Functions: Completely homebrew system
• Accounting/AP/AR: Custom-built
• Inventory Management: Integrated with homebrew ERP

Plant Floor Level:

• MES Layer: Advanced paper-based job jacket system
• Control Systems: Sophisticated Siemens S7-1500 PLCs and motion controllers
• HMI Systems: Advanced operator interfaces
• Additional Controls: Omron systems

The Critical Challenge

The customer's competitive advantage is embedded in their homebrew ERP system. The triggers, events, and workflows built into this system represent their core intellectual property and market differentiation. Any off-the-shelf MES solution would require either:

1. Abandoning their competitive advantage to fit standard software
2. Expensive customization that still wouldn't fully capture their unique processes

The Job Jacket System: Understanding Competitive Advantage

What Makes Job Jackets Special

The job jacket system represents the "center of the universe" for this organization. Unlike linear manufacturing processes, their workflow includes:

Non-Linear Event Triggers:

• Multiple manufacturing steps that can occur in parallel
• Triggers for subsequent steps that occur mid-process in previous steps
• Complex conditional logic based on real-time production events
• Sophisticated tracking of specifications and deviations

Business Value:

• Enables profitable low-volume production runs
• Supports rapid changeovers between products
• Maintains quality consistency across varied product specifications
• Provides traceability for compliance and continuous improvement

Historical Data Integration

For over 10 years, operators manually entered job jacket IDs into machine HMIs, creating a vast database of process data tied to specific jobs. This historical data included:

• Temperature set points and actual values
• Process parameters for each production run
• Equipment settings and configurations
• Quality measurements and outcomes

The Problem: This valuable historical data was trapped in machine-level databases with no connection to broader business systems.

The Fuuz Solution Architecture

Core MES Foundation (ISA-95 Standard)

Fuuz implemented the industry-standard ISA-95 manufacturing execution framework:

Organizational Structure:

• Enterprise level
• Site level
• Area level
• Line level
• Cell level

Core Manufacturing Tables:

• Work Orders: Manufacturing instructions and specifications
• Schedule: Production sequencing and timing
• Run: Active production execution tracking
• History Tables: Count history and state history for OEE calculations

Custom Extensions for Competitive Advantage

Rather than forcing the customer into a standard framework, Fuuz extended the core MES with custom elements:

Job Jacket Integration:

• Digital representation of physical job jackets
• Preservation of existing business process logic
• Integration with homebrew ERP system
• Maintenance of unique event triggering system

Specification Management:

• Digital storage of all job jacket specifications
• Real-time specification validation
• Deviation tracking and management
• Historical specification comparison

Event Management:

• Complex event tracking that mirrors the paper system
• Parallel process support
• Conditional triggers based on production state
• Real-time event validation and progression

Unified Namespace Architecture

Fuuz implemented a unified namespace that seamlessly integrates:

Real-Time Plant Floor Data:

• Live automation data from PLCs and HMIs
• Equipment status and performance metrics
• Process parameters and quality measurements

Business System Integration:

• Homebrew ERP connectivity
• Job jacket specifications and status
• Production scheduling and planning data

Manufacturing Execution Data:

• OEE calculations and performance metrics
• Downtime tracking and analysis
• Work order status and progression

Implementation Results: Digital Transformation Without Business Disruption

Phase 1: Digital Job Jackets

Capability Delivered:

• Exact digital replica of paper job jacket system
• All unique events and triggers preserved
• Integration with existing business processes
• No retraining required for operators

Business Impact:

• Immediate visibility into job status across the organization
• Color-coded status indicators for rapid assessment
• Remote access to job information
• Elimination of physical paper handling

Phase 2: Digital Job Board and Scheduling

Enhanced Visualization:

• Digital replacement of physical scheduling board
• Real-time status updates across all jobs
• Integrated connection to MES work order system
• Supervisor-level production oversight

Process Integration:

• Job jacket ID becomes work order ID in MES
• No abstraction or translation of business identifiers
• Seamless integration with existing operator workflows
• Preservation of established quality processes

Phase 3: Historical Data Integration

Data Liberation:

• 10+ years of historical process data connected to the digital system
• Job jacket-based data retrieval and analysis
• Process parameter comparison across time
• Equipment setup optimization insights

Analytical Capabilities:

• Select any historical job jacket to view complete process data
• Compare operator setups across time periods
• Identify process optimization opportunities
• Quality correlation analysis

Phase 4: Advanced Process Monitoring

Enterprise Historian Integration:

• Canary historian implementation for real-time data
• Process parameter trending and analysis
• Real-time quality monitoring
• Predictive maintenance capabilities

Mobile Access:

• iPad and smartphone access to all MES functions
• Remote monitoring for supervisors and managers
• Plant floor mobility for operators
• Home access for key personnel

The Complete Digital Ecosystem

Unified Dashboard Capabilities

The final implementation provides comprehensive manufacturing visibility:

Operator Level:

• Work order information (job jacket details)
• Real-time OEE metrics
• Downtime event tracking
• Process parameter monitoring
• Mobile-accessible interfaces

Supervisor Level:

• Multi-line production oversight
• Schedule management and optimization
• Performance analytics and trending
• Quality management and reporting

Management Level:

• Enterprise-wide performance visibility
• Historical data analysis and reporting
• Business intelligence integration
• Strategic planning support

Extended Business System Integration

Beyond MES, the platform now supports:

• Art Management: Creative asset control and workflow
• Ink Management: Specialized inventory and quality control
• Order Entry: Complete digitization of sales-to-production workflow
• CRM Integration: Customer management and production coordination

Implementation Approach: Proof of Value

Risk-Free Demonstration

Fuuz proved the concept with a unique approach:

Free Proof of Concept:

• Single asset implementation at no cost
• Complete demonstration of capabilities
• No customer obligation or input requirements
• Full-featured MES functionality on one production line

Clear Terms:

• Customer pays nothing for initial implementation
• Fuuz maintains complete control over development
• If satisfied, customer purchases full facility implementation
• If not satisfied, system is removed with no cost

Results:

• 12-week implementation from start to finish
• All plant floor assets integrated for data collection
• Complete MES functionality on a $25M production asset
• Immediate ROI demonstration and customer buy-in

Why This Couldn't Be Done with Off-the-Shelf Solutions

Fundamental Incompatibilities

Business Process Preservation:

• No off-the-shelf system supports the unique job jacket workflow
• Standard systems would require abandoning competitive advantages
• Historical data integration impossible with generic work order systems

System Integration Challenges:

• No connectors available for homebrew ERP systems
• SAP or similar systems couldn't be configured for their unique processes
• Standard MES would force business process changes

Cost and Risk Factors:

• $500K–$800K investment for 60–70% functionality
• Forced choice between competitive advantage and standardization
• Implementation risk with uncertain ROI

The Fuuz Advantage

Platform Flexibility:

• Accommodate any business process without forcing changes
• Extend core MES with unlimited custom functionality
• Integrate with any existing system architecture

Competitive Advantage Preservation:

• Digital transformation without business disruption
• Enhancement of existing strengths rather than replacement
• Future-proof architecture that grows with business needs

Risk Mitigation:

• Proof-of-concept approach demonstrates value before investment
• Incremental implementation reduces risk and maximizes learning
• Platform architecture ensures long-term flexibility and growth

Lessons for Manufacturing Organizations

Key Success Factors

1. Identify Core Competitive Advantages: Understand what makes your business unique
2. Preserve Business Value: Don't sacrifice competitive advantage for standardization
3. Think Platform, Not Product: Choose solutions that adapt to your needs
4. Start with Proof: Demonstrate value before major investment
5. Plan for Growth: Ensure your solution can evolve with your business

Common Pitfalls to Avoid

• Forcing Standard Solutions: Don't make your business fit someone else's software
• Ignoring Historical Data: Leverage existing data assets for competitive advantage
• Overlooking Integration: Ensure new systems work with existing strengths
• Underestimating Customization Costs: Factor in the true cost of off-the-shelf modifications

Conclusion

This case study demonstrates why manufacturers consistently choose to build rather than buy MES systems: competitive advantage often lies in unique business processes that cannot be accommodated by standard solutions. The choice isn't really between building and buying — it's between preserving what makes you successful and accepting generic limitations.

The Fuuz Industrial Intelligence Platform bridges this gap by providing the flexibility of custom development with the reliability and speed of a proven platform. By starting with industry-standard frameworks and extending them to accommodate unique business needs, manufacturers can achieve true digital transformation without sacrificing competitive advantage.

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Remember: Your competitive advantage shouldn't be sacrificed for standardization. The right platform adapts to your business, not the other way around.

See Also

• Why-All-Manufacturers-Build-their-MES-System-Part-1
• Manufacturers-struggle-with-Build-versus-Buy-for-their-MES-and-what-are-the-Core-4-Elements
• Listen-and-Learn-what-MES-is-and-what-makes-it-unique
• How-you-Integrate-your-ERP-with-your-MES

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Source: support.fuuz.com