ERP and MES 

ERP is an information system that integrates all of the relevant business processes of a company, including sales, sourcing, finance, warehouse management, accounting, and so on. This allows the business to manage and keep the whole company under control. If there is an order request, for example, the sales manager can check in real time if a given product is in stock, confirm its availability, and estimate the delivery time. If the order is confirmed, this can be automatically passed to the logistics department, thereby avoiding wasting time and paperwork and bypassing other useless intermediate steps. Nowadays, modern ERP systems cover all areas that can be automated and/or monitored within a company, thus allowing users to operate in a uniform and integrated context, regardless of the application area.

The term MES refers to an information system that has the responsibility of managing and controlling the production functions of a company. The main features of an MES system are as follows:

• Standard interfaces to keep the ERP, warehouse, and the field in sync according to the ISA-95 and ISA-88 standards. This includes ERP orders, material, product definitions, planned production schedules, production performances, and material consumption.
• Traceability, backward traceability, and a full identification of all of the materials in the plant using radiofrequency identification and bar code scanners.
• The management and execution of orders that are created manually within the MES solution or that come from the ERP level. These include plant orders, production orders, maintenance orders, transport orders, and so on.
• Material data management and product definitions that are created manually within the MES solution.
• The integration of data that comes from multiple systems into a database optimized for Online Analytical Processing (OLAP). This data might come from Laboratory Information Management Systems (LIMSs), statistical processes, SPC, ERP, or SCADA.
• Monitoring of the production lines and equipment with the option to associate the reasons of the interruptions of the production activities.
• Compliance with standards and regulations and product quality.
• Stock accounting, material inventory and consumption, and work progress in terms of quantity and time.

MES provides information that helps the production managers understand which actions to put in place to optimize and improve production. MES works in real time (from the user's perspective) to keep the production process under control. This includes materials, personnel, machines, and support services. Moreover, because you are able to capture data from the control system, you can use MES to create an as-built record of your manufacturing processes. This is particularly important in regulated sectors such as food, beverages, or pharmaceuticals. MES is an intermediate system between ERP and SCADA, also known as a process control system. The implementation of an MES system provides the following advantages:

• Reduction of waste and rework
• Faster setup times
• More accuracy in calculating the costs related to production 
• More effective production flow
• Inventory reduction by eliminating just-in-case stocks
• Implementation of a paperless activity workflow