Applying production management software not only supports progress monitoring, management of raw materials, machinery, and personnel, but also provides accurate data for managers to make quick and correct decisions.

What is production management software?

Manufacturing management software (MES) is an information technology system that helps businesses monitor, manage and optimize the entire production process from start to finish. This is an important tool in digital transformation of factories, supporting businesses to improve productivity, reduce costs and ensure stable product quality.

An MES production management software usually includes the following main features:

- Production planning: Automatically create production orders, build schedules based on orders or inventory, helping to optimize production capacity.

- Material management (BOM - Bill of Materials): Control input materials, track norms and manage consumption to limit waste.

- Production progress monitoring: Record data at each stage, detect early delays or product errors for timely handling.

- Production personnel management: Assigning work, monitoring labor productivity and managing shifts effectively.

- Quality control: Establishing standards and quality control procedures at each stage and for finished products.

- Product costing: Synthesizing costs of raw materials, labor, machine depreciation, etc. to provide detailed and accurate costs.

Many businesses only use ERP for overall management, but the ERP system does not fully meet the tasks of real-time production management. Therefore, deploying MES production management software is an inevitable trend to help businesses tightly control processes, increase efficiency and enhance competitiveness.

Outstanding advantages of production management software

Production management software is the solution to help businesses maintain production capacity, optimize operating costs, and create sustainable competitive advantages.

- Optimize production processes: The software supports accurate planning, automates steps such as creating production orders, allocating raw materials, and managing stages to reduce waiting time, limit errors, and improve production line productivity.

- Effective control of raw materials and inventory: With the feature of tracking raw material standards (BOM) and controlling the amount of import - export - inventory in real time, businesses avoid shortages or excess inventory, reduce losses and storage costs.

- Improve product quality: The software allows monitoring of each stage, combining automatic or semi-automatic quality control (QC) processes. This helps detect errors early, handle them promptly, and ensure consistent product quality.

- Accurately calculate product cost: The system synthesizes all costs such as raw materials, labor, machine depreciation and indirect costs, thereby calculating detailed costs. Businesses can easily build a reasonable selling price strategy, ensuring profits.

- Make quick decisions thanks to real-time reports: Managers can monitor progress reports, productivity, machine capacity, inventory and orders anytime, anywhere. Thanks to intuitive and instantaneous data, operational decisions become faster and more accurate.

- Reduce dependence on human resources and manual processes: Managing production with Excel or paperwork can easily cause overload and errors when the scale expands. Production management software helps digitize data, standardize processes, make information transparent and reduce dependence on individuals.

- Support digital transformation, increase competitiveness: Software application is an important step in the digital transformation process of production, helping businesses save time, costs, operate flexibly, be ready to adapt to market fluctuations and expand scale.

Top 6 best MES production management software for businesses today

Each MES software has different advantages, limitations and costs, suitable for each scale and specific industry of production. Below are the 6 most trusted MES production management software today:

1. SAP MES production management system

SAP MES (Manufacturing Execution System) is one of the solutions in the SAP Digital Manufacturing ecosystem developed by SAP SE software group (Germany). SAP is the world's No. 1 ERP provider, and SAP MES is specialized software that helps factories monitor and control the entire production process in real time.
Outstanding features of SAP MES:
- Strong integration with ERP: SAP MES is designed to connect directly with the SAP ERP system, creating a comprehensive and synchronous solution for management and production.

- Production performance management: Provides OEE (Overall Equipment Effectiveness) and TEEP indicators to measure equipment performance, while allowing monitoring of technical parameters (temperature, pressure, etc.) to optimize the process.

- Support process improvement: Allows updating and modifying production plans when there are changes in the product (eBOM, CAD), ensuring that the production process is always close to reality.

Disadvantages of SAP MES:

- High cost: Including copyright, implementation, customization and maintenance - often beyond the capacity of small businesses.

- Long implementation time: Due to its complexity, the application of SAP MES requires a lot of time for customization and training.

- Difficult to customize flexibly: The system is quite "rigid", more suitable for businesses with highly standardized processes.

- Requires in-depth training: Personnel need to be thoroughly trained to use it effectively.

- Not suitable for small businesses: Usually chosen by large corporations or factories.

Reference costs for SAP MES implementation:

- License fee: From 1 - 5 billion or more

- Implementation & customization fee: 2 - 10 billion (depending on complexity)

- Annual maintenance fee: 15 - 22% of license fee

- Training & maintenance according to separate agreement

2. Oracle MES Production Management Software

Oracle MES (Manufacturing Execution System) is a module of the Oracle Cloud SCM (Supply Chain Management) solution suite developed by Oracle Corporation - USA. This solution allows businesses to monitor, operate and optimize all production activities in the factory in real time, from raw materials to finished products.

Outstanding features of Oracle MES:

- Establishing a production database (BOM, Routing): Supports storing and managing detailed information about raw materials, components, production norms, helping to plan accurately and reduce waste.

- Managing detailed production processes: Allows monitoring and controlling each stage, from raw material import to finished products.

- Strong integration capabilities: Can be expanded to many other ERP systems, but for maximum efficiency, this solution is most suitable when deployed with Oracle ERP or Oracle SCM.

Disadvantages of Oracle MES:

- High cost: Including licensing and deployment fees, more suitable for medium and large enterprises.

- Complexity in implementation: Requires the participation of a team of professional consultants and internal staff with knowledge of technology.

- Heavily dependent on the Oracle ecosystem: If the enterprise does not use Oracle ERP or SCM, integration will be more complicated and expensive.

- Some limitations: The interface is still difficult to use, language support is not diverse; advanced customization features and energy management are not yet strongly developed.

Reference cost for implementing Oracle MES:

- Cloud MES license fee: 20 – 80 USD/user/month

- Implementation fee: 2 – 10 billion VND (depending on scale & complexity)

- Maintenance/upgrade fee: Included in the Cloud package

- Training cost calculated separately or by service package

Oracle MES is a production management software suitable for medium and large-sized enterprises, especially in the fields of industrial production, electronics, pharmaceuticals. However, enterprises need to prepare a large budget and have a strong internal IT team to exploit effectively.

3. AVEVA MES Production Management Software

AVEVA MES (Manufacturing Execution System) is a production management solution developed by AVEVA Group plc - a leading industrial technology group headquartered in the UK, currently owned by Schneider Electric. AVEVA is famous for its expertise in automation, SCADA, HMI, IIoT and industrial simulation, providing comprehensive digital solutions for manufacturing enterprises.

AVEVA MES is designed to optimize production processes, improve efficiency and reduce operating costs, while providing real-time monitoring capabilities to support quick decision making.

Outstanding features of AVEVA MES:

- Energy threshold data warning: A unique feature that allows the system to warn when energy consumption exceeds the daily threshold, helping businesses adjust operations immediately, thereby effectively managing and saving energy.

- Tracking and managing raw materials: Supports controlling raw material inventory, planning detailed BOM for each production stage, minimizing inventory and costs.

- Friendly interface, easy to use: Users can easily access, reduce training time and quickly get familiar with the system.

Disadvantages of AVEVA MES:

- High investment cost: The price is equivalent to international production management software such as SAP MES or Oracle MES.

- Complicated when implementing: Requires close coordination between IT and OT (Operational Technology) teams to synchronize with the industrial automation system.

- Dependent on implementation partner: Enterprises must choose a unit with experience in the AVEVA ecosystem to achieve the highest efficiency.

- ERP limitations: No built-in accounting and financial modules like SAP or Oracle, forced to connect to an external ERP system.

- Some other limitations: No Vietnamese support, the ability to delegate user rights is not diverse, and does not directly display detailed parameters such as KPI, pressure, temperature, injection position, etc.

AVEVA MES implementation cost (for reference):

- Software copyright: From 1 - 4 billion VND

- Implementation fee: From 2 - 10 billion VND

- SCADA/PLC integration fee: Calculated separately according to the existing system

- Maintenance and upgrade fee: 15 - 20% of license value/year

AVEVA MES is a powerful, user-friendly production management software that stands out for its energy management features. However, businesses in Vietnam may encounter difficulties in terms of cost, language and delegation, so they need to consider carefully before implementing.

4. Siemens MES Production Management System

Siemens MES is a production management software system on the Siemens Opcenter MES platform, developed by Siemens AG, the world's leading industrial technology corporation headquartered in Germany. Previously, Siemens' MES software was known as SIMATIC IT or Camstar MES, then integrated and rebranded under the Siemens Opcenter brand - part of the Siemens Digital Industries Software solution suite.

The strength of Siemens MES lies in its ability to comprehensively optimize the production process, from planning, routing to monitoring and performance analysis. This is the choice trusted by many large global manufacturing corporations aiming for lean production and data transparency.

Outstanding features of Siemens MES production management software

- Set up visual reports: Provide summary reports on real-time production status, displayed on many different types of machines. Managers can easily monitor and make immediate adjustments to optimize efficiency.

- Process planning and routing: Allows setting up detailed operations for each type of machine, identifying resources to be used and closely managing each step - from input materials to finished products.

- Analysis and optimization: Integrating reporting tools, in-depth analysis, supporting businesses to make data-based decisions to improve productivity and reduce operating costs.

Disadvantages of Siemens MES

- High investment cost: Equivalent to or higher than other international systems such as SAP MES.

- In-depth technical requirements: Requires an IT/OT team with knowledge of SCADA, PLC and industrial production systems.

- Long implementation time: Can last from 6 months to 2 years for multi-factory production models.

- No built-in ERP: Enterprises must connect externally to ERP systems such as SAP, Oracle, Microsoft or domestic ERP.

Siemens MES implementation cost (for reference)

- Software copyright: 3 - 10 billion VND (depending on modules and number of users)

- Implementation and integration fee: 2 - 15 billion VND

- Annual maintenance fee: 15 - 20% of copyright value

- Training costs calculated separately or according to implementation package

In general, Siemens MES is one of the world's leading production management software, suitable for large-scale enterprises, especially in industries with high requirements for process standardization and data management. However, implementation costs and high technical requirements are barriers for many small and medium-sized enterprises in Vietnam.

5. ERP Ecount production management solution

Ecount is one of the ERP production management software favored by many small and medium-sized enterprises. Operating on a cloud computing platform, Ecount helps businesses optimize their operations without having to invest heavily in technology infrastructure.

Although not as in-depth as international production management systems, Ecount still meets basic needs well, helping businesses maintain smooth production operations and save costs.

Outstanding features of Ecount production management software:

- Intuitive, easy-to-use interface: Allows customization of information fields and forms according to the specific requirements of each business.

- Connecting data: Production information is integrated with other subsystems such as accounting, purchasing, sales, warehouse management, etc. to optimize the entire management process.

- Flexible and convenient: Can be accessed anytime, anywhere via Internet-connected devices, supporting businesses to improve work efficiency and flexibility.

With reasonable cost and quick implementation, Ecount is a suitable choice for small and medium enterprises in Vietnam that want to apply production management software without having to invest too much in a complex system.

6. Sinnova production management software

Sinnova is a production management solution with a friendly, easy-to-use interface design, suitable for many users in the enterprise. The system fully integrates the necessary features, helping enterprises comprehensively manage production activities from planning, coordination to supervision.

Outstanding features of Sinnova production management software:

- Intuitive interface: User-friendly, easy to get acquainted with and operate.

- Flexible integration capabilities: Easy to connect with existing software and applications in the enterprise.

- Full user support: Providing detailed instructions, making deployment and use more convenient.

Thanks to its focus on simplicity and quick deployment, Sinnova is especially suitable for small and medium-sized enterprises that want to digitize production management while still saving costs and resources.

Notes when deploying MES production management software

In the process of building a smart factory model (Smart Factory), MES production management software plays a key role, helping the factory operate efficiently and connect comprehensively. MES is the bridge between the automation layer (PLC, SCADA, IIoT) and the planning layer (ERP) and strategy (BI), thereby creating a continuous data flow.

However, implementing MES is a complex and time-consuming process. Therefore, before applying, businesses need to pay attention to the following important points:

- Clearly define needs and goals: Businesses need to clarify what problems they want to solve, what stages they want to optimize, and what specific benefits they expect to achieve when implementing a production management system.

- Choose a reputable supplier: A supplier with experience in successfully implementing MES in similar fields will help reduce risks and shorten implementation time. In addition, warranty policies, training, and after-sales support services also need attention.

- Reasonable cost estimate: The cost of implementing production management software is often quite high, especially when the system is specifically designed for each business. Therefore, it is necessary to calculate the initial investment cost, annual maintenance and upgrade costs, ensuring that it is consistent with the budget and long-term plan.

- Evaluate other technical factors:

+ Integration capability: MES needs to connect smoothly with ERP, SCADA, IoT and existing systems.

+ Data security: Ensure information security in a digital manufacturing environment.

+ Scalability: The system must meet the expansion needs when the business develops its production scale.

Should you choose customized or packaged MES production management software?

In the context of increasingly fierce competition, MES production management software has become an indispensable tool to help businesses optimize operations, improve performance and gradually move towards the smart factory model (Smart Factory). However, one of the major concerns of managers is whether to choose packaged MES (COTS MES) or customized MES (Customized MES)?

Packaged MES solution (COTS MES)

Packaged MES is software developed based on a standard feature set, widely applied to many manufacturing enterprises.

- Advantages of packaged MES are fast deployment time, easy installation and use, lower investment costs compared to customized solutions, and many popular features available to meet most basic production management needs.

- Disadvantages: High generality, difficult to delve into the specific characteristics of each business, limited scalability or customization when the business changes its scale or process, not really suitable for factories with complex processes or large production volumes.

Customized MES solution

Customized MES is designed based on the needs and specific characteristics of each enterprise. Before implementation, the supplier will conduct a field survey and analyze the process to build a suitable system.

- The advantages of customized MES are that it accurately meets the management requirements and operational characteristics of the enterprise, can be expanded and upgraded according to the development of the factory, and can be easily integrated with other systems such as ERP, CAD, SCADA, IoT, etc. to create a synchronous production ecosystem.

- The disadvantages are high initial investment and implementation costs, longer implementation time than packaged MES, and depends heavily on the consulting, implementation, and support capabilities of the supplier.

Which solution should businesses choose?

- For small and medium-sized businesses with few specific requirements, packaged MES can be a suitable choice thanks to its low cost and quick implementation time.

For large manufacturing businesses or businesses with complex processes, customized MES is the optimal solution. This system not only meets current management needs but also has the ability to expand and integrate flexibly to keep up with technological changes and digital transformation trends in manufacturing.

Above is a summary of useful information about production management software that is trusted by many Vietnamese businesses. With experience in the field of automation and smart manufacturing solutions, Intech Group is ready to accompany you in choosing and implementing the right management system. If your business is looking for an optimal solution to improve operational efficiency, please contact Intech Group immediately via hotline 0966.966.032 - 0983.113.387 for detailed advice and support.