S.D.I. English Newsletter: What is a MOM, how it fits into the factory of the future

In the world of manufacturing and beyond, MOM (Manufacturing Operations Management) systems are gaining ground. MOM is a software system used to manage production operations within a plant or manufacturing company. The term MOM refers to a set of tools and applications that help monitor, control, and optimize production operations.

A MOM system covers several key areas of production including:

·???????? Production Management: Planning, executing, and monitoring production activities.

·???????? Quality Management: Controlling the quality of processes and products to ensure compliance with standards.

·???????? Maintenance Management: Planning and monitoring the maintenance of equipment and machinery to minimize downtime.

·???????? Human Resource Management: Coordinating and monitoring production personnel activities and performance.

·???????? Material and Inventory Management: Monitoring and managing materials and inventory needed for the production process.

The MOM system provides real-time visibility into production operations, allowing informed decisions to improve efficiency, reduce costs, and increase the quality of the final product. Additionally, it is often integrated with other enterprise systems such as ERP (Enterprise Resource Planning) and MES (Manufacturing Execution System) to ensure a continuous and consistent flow of information throughout the organization.

Where is the difference with an MES?

The difference between a MOM and an MES is subtle but significant; both systems are used in managing production operations, but their focus and specific functionalities vary.

MES (Manufacturing Execution System)

·???????? Main Purpose: An MES is a system that primarily focuses on executing, monitoring, and controlling production operations in real time. Its task is to ensure that the production process is carried out efficiently and in compliance with specifications.

·???????? Key Functions: It includes functionalities such as production operation management, collection and analysis of production data, performance monitoring, quality control, resource and equipment management, material traceability, and process optimization.

·???????? Focus: MES is more oriented towards the operational control of production on the shop floor, providing detailed, real-time information on production processes.

MOM (Manufacturing Operations Management)

·???????? Main Purpose: MOM is a broader concept that encompasses not only MES functionalities but also other production operation management functions. MOM is a set of systems and software tools that support integrated and optimized management of all production operations.

·???????? Key Functions: In addition to MES functions, MOM also includes other areas such as quality management, maintenance management, human resource management, material management, performance management, and production planning.

·???????? Focus: MOM has a more strategic and integrated approach, covering a wide range of management activities with the aim of improving overall efficiency and optimizing production resources.

In essence, MES mainly focuses on the execution and monitoring of real-time production operations, while MOM offers a broader and more integrated view of production operations management, including MES functions and other key production areas. MOM can be seen as an evolution or expansion of MES with a more global and integrated approach to managing production operations.

How do MOM and MES integrate with PLM

The integration between MOM, MES, and a PLM (Product Lifecycle Management) is crucial to achieving effective and coordinated management of the product lifecycle and production operations. Each of these systems covers different but complementary aspects of the production process and product lifecycle management. Let's see how they integrate with each other:

·???????? PLM (Product Lifecycle Management)

o??? Main Function: PLM manages the entire lifecycle of a product, from its conception, design, and development to its production, maintenance, and disposal. It is primarily used to manage the data and processes related to product design, ensuring that all versions and variants of the product are tracked and properly managed.

o??? Key Output: PLM generates detailed and specific product information such as technical drawings, bill of materials (BOM), material specifications, and other engineering data that are essential for production.

·???????? MES (Manufacturing Execution System) MES uses the data provided by PLM to manage the execution of production operations. It takes the product information from PLM and translates it into concrete actions on the shop floor, such as resource management, material allocation, and machine scheduling.

o??? Input from PLM: Data such as the bill of materials, process specifications, and production requirements are transferred from PLM to MES to ensure that products are manufactured according to design specifications.

o??? Key Output: MES produces real-time operational data such as production progress, quality data, and performance metrics that can be used to optimize operations and solve immediate problems.

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·???????? MOM (Manufacturing Operations Management)

MOM oversees all production operations, integrating both MES functionalities and other aspects such as quality management, maintenance, and human resource management. MOM acts as an integrated platform that connects information from PLM with the operations managed by MES, ensuring that the entire production process is coordinated and efficient.

o??? Integration with PLM and MES:

§? From PLM: MOM receives strategic product data such as design specifications and revisions that are used to plan and optimally manage production operations.

§? With MES: MOM integrates and uses operational data from MES to provide an overall view of production performance, facilitating continuous improvement and strategic management of operations.

o??? Key Output: MOM generates reports and analyses that combine production and product data, useful for making strategic decisions, improving quality, and optimizing operations at the enterprise level.

Overall Integration

o?? Information Flow: PLM provides product data to MES and MOM, which use this information to execute and manage production. MES focuses on operational execution, while MOM provides broader control and management, also integrating performance and quality data.

o?? Benefits: The integration of the three systems allows companies to close the loop between design and production, ensuring that product specifications are correctly implemented in production and that feedback from production can be used to improve future designs.

This integration allows companies to optimize the entire product lifecycle, improving quality, reducing time-to-market, and increasing operational efficiency.

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Integration of MOM, MES, and PLM systems with ERP

The integration of MOM (Manufacturing Operations Management), MES (Manufacturing Execution System), PLM (Product Lifecycle Management) with an ERP (Enterprise Resource Planning) is a strategy, and a focal point, for optimising the entire value chain in a manufacturing company. This integration connects data and processes from engineering and product design, through production, to enterprise resource management and financial operations. Let us see how this integration takes place and what the main benefits are.

1.?????? ERP (Enterprise Resource Planning)

o??? Main function: ERP is a central system that manages enterprise resources, including finance, accounting, human resources management, procurement, inventory management, and distribution. It provides an integrated and centralised view of all business operations, supporting resource planning and control throughout the organisation.

o??? Key outputs: Financial reporting, resource management, demand planning, inventory management, cost control, and supplier management.

2.?????? Integration with PLM

o??? Transferred data: PLM transfers critical data such as bill of materials (BOM), material specifications and design reviews to the ERP. This ensures that product data is accurate and up-to-date throughout the ERP system, facilitating resource planning and procurement of necessary materials.

o??? Benefits: The integration ensures that production and procurement planning is based on accurate and up-to-date product information, improving efficiency and reducing the risk of errors.

3.?????? Integration with MES

o??? Transferred data: The MES communicates with the ERP to obtain production orders and to update production status, quantities produced, and processing times. The ERP uses this information to update stocks, manage production costs and plan further supplies.

o??? Benefits: This integration allows real-time monitoring of production operations, improving inventory management, production planning and cost control.

4.?????? Integration with MOM

o??? Transferred data: The MOM integrates with the ERP to synchronise production plans, quality data, maintenance and operational performance with wider business processes. The ERP provides the MOM with information on orders, resource planning and inventory management, while the MOM returns data on production performance and quality.

o??? Benefits: Integration enables optimal management of operations, aligning strategic and operational plans and ensuring that production-level decisions are supported by accurate financial and operational data.

Overall benefits of integration

1.?????? End-to-end visibility and control: By linking PLM, MES, MOM and ERP, companies gain complete visibility into all phases of the product lifecycle, from design to production to resource and financial management. This facilitates control and optimisation of the entire supply and production chain.

2.?????? Operational efficiency: Integration reduces redundancies and improves process efficiency as data flows seamlessly between systems, eliminating the need for manual input and reducing the risk of errors.

3.?????? Data-driven decisions: Access to integrated, up-to-date data enables managers to make more informed and faster decisions, improving the company's responsiveness to market needs and optimising the use of resources.

4.?????? Quality and compliance: Integration supports quality monitoring and regulatory compliance, as product specifications (managed by PLM) are accurately followed during production (MES and MOM), and quality information is reported and analysed at the enterprise level (ERP).

5.?????? Cost reduction: Through better planning, inventory management and optimisation of operations, integration helps to reduce operational costs while improving quality and on-time delivery.

Information flow diagram

·???????? PLM sends product specifications and BOMs to ERP and MES/MOM.

·???????? ERP plans production and manages resources based on PLM data and receives updates from MES on production and BOM operations.

·???????? MES executes production according to PLM specifications and synchronises operations with the ERP.

·???????? MOM integrates operational data from MES with the broader operations management, and returns performance and quality data to the ERP for strategic management.

The integration of these systems provides a solid basis for digital transformation and Industry 4.0, significantly improving the competitiveness and efficiency of manufacturing companies.

A further step: Integration of this design into EPM (Enterprise Performance Management)

The integration of MOM (Manufacturing Operations Management), MES (Manufacturing Execution System), PLM (Product Lifecycle Management) and ERP (Enterprise Resource Planning) with an Enterprise Performance Management (EPM) system is a further step towards the optimal management and monitoring of business performance at the strategic level. EPM is a management system that supports strategic planning, budgeting, forecasting, reporting and performance analysis, enabling companies to align operations with their strategic objectives.

1.?????? What is Enterprise Performance Management (EPM)?

§? Main function: EPM focuses on managing and monitoring business performance across all functional areas. It includes tools for financial planning, cost management, revenue forecasting, performance analysis, management of key performance indicators (KPIs), and management of overall business performance against strategic objectives.

§? Key outputs: Financial performance reports, variance analysis, operational and financial KPIs, forecasts and budgets (see article The Importance of KPIs in Modern Production Management).

2.?????? EPM integration with ERP

§? Data transferred: The ERP provides the EPM with financial and operational data, including costs, revenues, inventory management, and order and sales information. This data is used by the EPM for monitoring and analysing performance against strategic objectives and financial plans.

§? Benefits: The integration enables accurate and timely financial control, with the ability to monitor performance against budgets and forecasts in real time.

3.?????? EPM integration with PLM

§? Data transferred: PLM provides EPM with information on product development costs, time to market, and product quality, which can be used to analyse the impact of design choices on business performance.

§? Benefits: Integration enables the evaluation of the effectiveness of product lifecycle management and its impact on business results, improving strategic planning and long-term budgeting.

4.?????? EPM integration with MES

§? Transferred data: The MES provides the EPM with detailed data on manufacturing operations, such as cycle times, resource efficiency, and quality data. This information is crucial for analysing operational performance and optimising production processes.

§? Benefits: Integration enables real-time monitoring of operational performance and alignment of manufacturing operations with business objectives, improving the company's ability to respond quickly to market changes and customer needs.

5.?????? EPM integration with MOM

§? Data Transferred: MOM provides an integrated view of manufacturing operations, including quality, maintenance, and asset management data, which are used by EPM for more effective business performance management.

§? Benefits: Integration ensures that operational decisions are aligned with the company's strategic objectives, enabling continuous monitoring and proactive enterprise-wide performance management.

Overall benefits of EPM integration

1.?????? Strategic and operational alignment: Integration between EPM, ERP, PLM, MES and MOM ensures that day-to-day operations are aligned with the company's strategic objectives, facilitating consistent and integrated performance management.

2.?????? Continuous performance monitoring: With EPM integrated with other systems, companies can monitor performance in real time, quickly identify any deviations from targets and make timely decisions to correct strategy if necessary.

3.?????? Advanced analysis and reporting: Access to integrated data from all systems (ERP, PLM, MES, MOM) allows EPM to provide advanced reporting and predictive analytics, supporting more accurate planning and more informed business decisions.

4.?????? Optimisation of resources: Through integration, companies can optimise the use of resources, reduce costs and improve operational efficiency, all in line with the strategic objectives defined in the EPM system.

5.?????? Better risk management: Integration enables a holistic view of business operations and finances, improving the ability to identify and manage risks in advance, and to implement corrective measures before problems impact overall performance.

EPM information flow diagram

·???????? PLM provides design and cost data that ERP uses for resource planning, while EPM uses this data to evaluate the effectiveness of product management.

·???????? MES provides operational data that the EPM uses to analyse production performance against business objectives.

·???????? MOM integrates and manages production operations in line with the strategic plans defined in the EPM.

·???????? ERP provides financial and operational data

to the EPM for strategic planning and business performance monitoring.

This integration not only supports more agile and responsive business management, but also fosters a performance-oriented corporate culture of continuous optimisation, ensuring that every part of the organisation works in synergy to achieve strategic goals.

What should be included in this plan for an integrated and functional world of operations?

In order to develop a plan for an integrated and functional operation that includes the integration of the systems seen so far, MOM (Manufacturing Operations Management), MES (Manufacturing Execution System), PLM (Product Lifecycle Management), ERP (Enterprise Resource Planning) and EPM (Enterprise Performance Management), it is necessary to include a number of key elements that ensure smooth, coordinated and strategically oriented management. Here are the main components to be included in the plan:

1.?????? Analysis and Definition of Objectives

§? Define strategic objectives: Clearly identify the business objectives and key performance metrics (KPIs) that will drive system integration and operations.

§? Business needs analysis: Conduct a detailed analysis of current processes, identifying areas for improvement and specific needs in each functional area (production, supply chain, quality, finance).

2.?????? Integrated System Architecture

§? IT architecture design: Define the architecture of the system integrating PLM, MES, MOM, ERP and EPM, specifying how data will flow between the different systems.

§? IT infrastructure and connectivity: Ensure that the IT infrastructure supports the connectivity and scalability required for integration. This includes servers, network, data security and communication protocols.

3.?????? Systems Integration

§? Systems Interoperability: Establish communication methods between the various systems (e.g. using APIs, middleware or data buses) to ensure that data can flow smoothly.

§? Data mapping: Identify and map critical data that needs to be shared between systems, ensuring data consistency and integrity.

§? Process automation: Implement automation solutions to eliminate redundancies and reduce the risk of manual errors, ensuring that key processes are automated across integrated systems.

4.?????? Data Management and Governance

§? Data governance: Establish data management policies to ensure data is accurate, consistent, up-to-date and compliant with regulations.

§? Data analytics and reporting: Integrate advanced analytics and business intelligence tools to extract useful information from the data generated by different systems, providing clear and timely reporting to business decision makers.

5.?????? Operational Processes and Workflows

§? Review and Optimise Processes: Review and optimise operational processes to align them with the functionality of the integrated system. Ensure that workflows are efficient and support business objectives.

§? Process documentation: Create detailed documentation of new workflows and operational processes, ensuring that all parties involved clearly understand their responsibilities.

6.?????? Training and Change Management

§? Training Plan: Develop a comprehensive training plan for end-users, ensuring that they understand how to use the new systems and how their roles fit into the overall workflow.

§? Change Management: Implement a change management strategy to guide the organisation through the transition, reducing resistance to change and ensuring effective adoption of the new systems.

7.?????? Performance Monitoring and Continuous Improvement

§? KPIs and Monitoring: Establish a continuous performance monitoring system based on defined KPIs, using EPM integration to obtain a real-time view of business operations.

§? Feedback loop: Create mechanisms to collect feedback from users and processes, using this data to continuously improve operations and integrated systems.

§? Benchmarking and performance analysis: Regularly compare business performance with strategic goals and industry best standards, using EPM to identify areas for improvement.

8.?????? Security and Compliance Management

§? Data Security: Implement advanced security measures to protect corporate data during integration and in ongoing system operation.

§? Regulatory Compliance: Ensure that integrated systems comply with all relevant local and international regulations, including quality, security and data management standards.

9.?????? Implementation Plan

§? Implementation Phases: Divide the integration project into well-defined phases, with clear milestones and measurable objectives for each phase.

§? Testing and validation: Carry out thorough testing in each integration phase to identify and resolve any problems before go-live.

§? Business Continuity Plan: Prepare a plan to ensure continuity of operations during implementation, minimising the impact on daily activities.

10.?? Post-Implementation Evaluation and Optimisation

§? Performance evaluation: After implementation, evaluate the effectiveness of the integrated system against the initial objectives.

§? Optimisation and Updates: Based on the results of the evaluation, perform any adjustments and updates to further optimise the system.

Conclusion

The integration of MOM, MES, PLM, ERP and EPM is crucial for optimising business operations and aligning them with strategic objectives. This synergy between systems enables efficient product lifecycle management, precise operational execution and accurate financial control. The implementation of a structured plan, including data management, process automation, training and continuous performance monitoring, ensures smooth and competitive operations, improving the company's ability to adapt to market dynamics and achieve sustainable results over time.

A well-structured and detailed plan that includes these key elements will ensure smooth integration, improving operational efficiency, performance management and strategic alignment. This approach not only optimises operations, but also the way the company achieves its strategic objectives, providing a competitive advantage in the market.