MES for Project-Based Manufacturers

Managing a highly configurable product through the manufacturing process can be a daunting task, but an MES with advanced configuration capabilities can help.


Posted on May 18, 2007

Parametrics involves the ability to adjust based on parameters. The dictionary definition of a parametric equation implies that such parameters are based on coordinates. For a project-based manufacturer using a manufacturing execution system (MES), those coordinates take on great importance. "MES technology solutions should include parametrics which go far beyond using parameters only to represent coordinates," according to Randy Richel, CEO of TRAKware, an MES provider. "Coordinates should have the capacity to dynamically adjust bills of materials, bills of labor, routings, costs, selling prices, and sizes." Few MES solutions have an advanced parametric configurator that allows users to build parts and products that have full parametric capabilities. And yet, to increase lean productivity and profitability, complex parts and products with unlimited variations must be represented by a single item. Consider a parametric box that has a top, bottom, back, and two sides. The box can have the following characteristics: Based on these six parameters, this box can have the following number of variations for each parameter:

Width Height Depth Core Interior Exterior
Variations 48 sizes 48 sizes 48 sizes 2 types 3 material types 3 material types
In a traditional MES system, these variations could mean that more than 1.9 million different part numbers might have to be created to represent the different variations possible for this simple parametric box. "When these concepts are extended to a 'real world' product, choosing a particular parameter not only changes the bill of materials, but also the bill of labor and the labor routings," Richel notes. "The configuration and management of the parts and product through a manufacturing process can be challenging task." The Best Estimate In a custom, one-of-a-kind manufacturing environment, the ability to estimate and configure items quickly and accurately rests on deliverables that are presented parametrically. The ability to estimate by the component or to use traditional methods (e.g., by the lineal foot) is essential, especially when building a catalog of standard parts and products. Quickly providing comprehensive alternative proposals with price breakouts allows customer manufacturing shops to avoid ballpark guesses by giving them data and information to back up estimates. To meet project management requirements, it is important to schedule projects against existing production, while keeping track of changes through a comprehensive change-order process. This also affects a manufacturer's ability to manage total project costs versus budgeted. Material Management and Inventory Project-based manufacturing demands that MES solutions have the technological ability to purchase raw material to inventory or to a project and maintain perpetual inventory of raw materials. Likewise, the system should have the capacity to maintain and issue inventory in multiple units of measure within one inventory item, maintain inventory of value-added parts or finished products, and easily convert normally manufactured items to buyout items (adjusting the bill of labor and the bill of materials automatically). Still, these capabilities are rarely found in MES solutions. Other material management data that is quite helpful includes the ability to track highs, lows, vendor history, and serialized inventory. In the adoption of industry best practices, multiple checks during purchase order reconciliation should also be provided. At best, MES solutions are designed to improve business results by showing the user where costs are being incurred, with the result that the manufacturer can control and reduce costs and possibly increase capacity and sales. A well-tailored MES will empower the workforce by delivering information that motivates staff to make informed decisions for which there are metrics answer for. "Effective project-based MES systems are designed to collect data at the point of transaction, eliminating duplicate data entry, and making the information available in real time," Richel notes. Using MES solutions built for the engineer-to-order (ETO) process can simplify the information management and overhead associated with complex project-based manufacturing processes, thus allowing the business to focus on reducing costs while improving margins. In a lean manufacturing world of quantifiable measurable impacts, perhaps these are the most significant parametric equations. Thomas R. Cutler is the lead spokesperson for the ETO Institute. He can be reached at trcutler@trcutlerinc.com or at 954-486-7562.

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