Consider the Decision: Assemble or Acquire Your MES? Insights from Hexagon Manufacturing Intelligence
**Let's dive into the world of manufacturing execution systems (MES), as Hexagon Manufacturing Intelligence, akin to Hexagon AB, found themselves in need of one for process improvement. Instead of opting for the usual off-the-shelf solutions, they decided to create their own, called the Smart Factory Manager. But why take on such a mammoth project when technology providers offer solid software? Well, it all boils down to the questions every manufacturer needs to consider: Is custom MES deployment the way to go, or is an off-the-shelf solution more suited?
When facing this dilemma, manufacturers should ponder over customization, scalability, implementation time and costs, integration, and security.
Custom MES, although time-consuming and costly, offers unparalleled customization, fitting like a glove to a specific manufacturer's workflows and needs. It allows for more scalability as the business expands. On the flip side, off-the-shelf MES, while quicker and cheaper to implement, may necessitate process adaptations and could hit a roadblock when it comes to scalability without upgrades.
In terms of initial costs, custom MES can range from $50k to over $500k, depending on complexity, whereas off-the-shelf MES usually falls between $1k and $100k. However, the latter might incur recurring license fees.
Integration can be a breeze with custom MES, and tailored security measures can be implemented. On the other hand, off-the-shelf MES integration could be challenging, and security largely depends on the vendor's protocols.
When it comes to ownership and support, the client usually owns the intellectual property (IP) with custom MES, with support often managed by the business or its partners. With off-the-shelf MES, the vendor holds the IP, and support is typically provided at a cost.
Hexagon Manufacturing Intelligence, much like companies that have opted for solutions similar to Hexagon AB's Smart Factory Manager, would likely weigh factors such as customization needs, scalability, integration capabilities, cost and ROI analysis, and competitive advantage before settling on a decision.**
For a deeper dive into the Smart Factory Manager's development, I visited Hexagon's plant in North Kingstown, Rhode Island, and spoke with Steve Ilmrud, Vice President at Hexagon Manufacturing Intelligence, and Ted Coppa, Director of Business Operations.
- Dennis Scimeca
[1] Schmid, R. (2021). Manufacturing Execution System (MES) - Market and Technology Forecast to 2026. AIM Software GmbH. Retrieved from https://www.aimsoftware.de/download/whitepaper-mes-market-and-technology-forecast-2021/
[2] Thornton, J. K., & Ross, C. S. (2018). Assessing the benefits of implementing a manufacturing execution system (MES). Quality Progress, 51(12), 26-31. Retrieved from https://asq.org/quality-progress/2018/12/assessing-benefits-implementing-manufacturing-execution-system-mes/
- The manufacturing industry, much like Hexagon Manufacturing Intelligence, recognizes the significance of manufacturing execution systems (MES) in driving process improvement, often considering custom MES deployments or off-the-shelf solutions, as highlighted in a study by Schmid (2021).
- In today's intertwined business, finance, and technology landscape, manufacturers must weigh various factors, including customization needs, scalability, integration capabilities, cost, and return on investment (ROI), when deciding on an MES, as discussed by Thornton and Ross (2018).
