Classification of popular factory management software currently available.

In the context of Industry 4.0, choosing the right factory management software (MES) is crucial for businesses. This article will analyze the types of software currently available based on four main criteria: Origin, Deployment Model, Technology, and Business Size. This will provide you with an overview to help you make the right investment choice and improve operational efficiency.

1. What is factory management software?

Manufacturing Execution System (MES) is a system that helps businesses manage, monitor, and optimize the entire production process in real time. In other words, MES acts as the "operational brain" of the factory, connecting production planning to execution on the assembly line.

The main roles of plant management software include:

• Planning: Assisting in developing detailed production plans, allocating resources, and establishing efficient schedules.
• Execution: Supports real-time production management, ensuring all stages proceed on schedule.
• Real-time data collection: Recording and analyzing information from the factory floor to support rapid decision-making.
• Quality management: Monitoring and controlling product quality, minimizing errors, and ensuring compliance with standards.

Implementing factory management software not only improves efficiency but also brings clarity to the entire production chain.

2. Classification by origin

Factory management software is divided into two main groups based on its origin of development: domestic and foreign.

• Locally developed software: Solutions developed by Vietnamese companies are often cost-effective and highly customizable to meet the specific needs of domestic businesses. However, limitations of this software lie in its scalability and ability to connect with international systems, especially when businesses aim for the global market.
• Foreign software: Solutions from large corporations such as Siemens, SAP, or Oracle stand out for their high stability, compliance with international standards like ISA-95, and ability to connect with global manufacturing ERP systems . However, high licensing costs and lengthy customization times are major obstacles, especially for small and medium-sized enterprises.

MES software is categorized by origin, with domestic solutions prioritizing cost-effectiveness and customization, while foreign solutions excel in stability and international integration capabilities.

3. Classification by deployment model and technology

Based on deployment models and technologies, plant management software is divided into two main types: On-premise (on-site installation) and SaaS/Cloud (cloud computing).

• On-premise software: This is the traditional model where software is installed directly on the company's internal servers. However, the high initial investment cost and the burden of maintaining the internal system are significant limitations.
• SaaS/Cloud Software: With the cloud computing model, software is deployed quickly over the internet without requiring significant infrastructure investment. Benefits include flexible operating costs, automatic version updates, and remote access.

MES can be deployed using an on-premise model (full control, high security) or a SaaS/Cloud model (fast deployment, flexible costs, easy remote access).

4. Classification by business size

Business size is a key factor when choosing MES (Manufacturing Execution System) software. Based on this criterion, solutions are typically divided into two groups: those for large businesses and those for small and medium-sized enterprises (SMEs).

• Enterprise Level: Large-scale businesses typically require a comprehensive MES system with deep customization capabilities and tight integration with high-end manufacturing ERP systems such as SAP or Oracle.
• Small and Medium-sized Enterprises (SME Level): For SMEs, MES software that is easy to deploy, easy to use, and cost-effective is preferred. Additionally, cloud-based systems or ERP modules, along with some domestic MES solutions, are chosen for their flexibility and accessibility.

SMEs should prioritize cloud-based solutions that are easy to use and focus on core functionalities such as OEE and traceability.

Understanding the four classification criteria above is a crucial first step for businesses to choose a suitable factory management system. The final decision should be based on a consideration of origin (depth of features), deployment model (cost model), and scale (scope of operations). Therefore, first clearly define the scale and budget of your business to conduct detailed research on each software option.