The United Arab Emirates has pinned many of its hopes for a sustainable, diversified economy on heavy industry. In 2021, the Ministry of Industry and Advanced Technology (MoIAT) teamed up with 12 private companies (the “Champions 4.0 Network”) and Departments of Economic Development in Abu Dhabi, Dubai, and Ajman to kick off “UAE Industry 4.0”. This program, and the subsequent Operation 300bn, were designed to increase the industrial sector’s GDP contribution over a decade, thereby strengthening economic resilience.
“Considering its capability to seamlessly slot into the smart factory from end to end, it is fair to surmise that MES is more than a means to expand legacy IT.”
Vibhu Kapoor, Regional Vice President – Middle East, Africa & India, Epicor
The momentum that has followed these moves is a “Made in the Emirates” story of re-examination, reinvention, and innovation, played out against a backdrop of challenges such as global supply-chain disruptions and worldwide calls for sustainable economic development. Enterprise resource planning (ERP) and manufacturing execution system (MES) technologies have huge roles to play in making such visions come to life.
Data is the spark behind every good decision. As value chains become more complex, being able to sift out actionable information from the ocean of data that surrounds us becomes more critical. We cannot afford to just wing it while others analyse the shifting tides and temperamental winds of the manufacturing space. As competitors align with national economic Visions, we must not only do the same; we must learn how to outmanoeuvre other innovators by introducing greater efficiencies faster than they can.
No MES, no zest
By emphasizing local manufacturing, the UAE avoids the offshoring/nearshoring/reshoring gambit in favour of consistently shorter supply chains, and the benefits they imply — stable stock levels, less fuel consumption (and hence less carbon footprint), and more jobs at home. Additionally, manufacturers simplify compliance because they retain control over more of the links in the chain, and that leads to lower costs. Modern ERP systems, with their compliance, traceability, and security capabilities, fit neatly into these business models. When combined with MES, they integrate not only into the data ecosystem, but into the smart factory itself.
Considering its capability to seamlessly slot into the smart factory from end to end, it is fair to surmise that MES is more than a means to expand legacy IT. A MES deployment today can be a catalyst for decades of innovation and expansion, all emerging from a single source of truth. Along with ERP, MES brings data to life. It turns it into insights that spur generation after generation of enhancements and optimisation.
We are living through a sustained demand spike in the UAE and the larger GCC. Consumers and businesses are putting pressure on manufacturers to produce at bigger and greater rates. MES and ERP together can weed out inefficiencies in the manufacturing process and ensure that the factory works at optimum tilt. As other regions try to disentangle themselves from the global supply chain, Gulf companies will have already used efficiencies to breed efficiencies and created sustainable local operations that create jobs, reduce pollution, and strengthen consumer-facing businesses by bolstering their supply chains.
Impetus to innovation
MES is a platform for sustainable change. It provides quality assurance and production management for the Industry 4.0 business. There are many reasons why it is of particular relevance now. It helps decision makers understand their core business, allowing granular adjustment and optimisation. Imagine knowing, at a glance, the exact number of parts required to manufacture a given number of units and how soon they can be ready. Note: “at a glance”. Of course, manufacturers have been computing these elements since time immemorial. But humans take longer. Much longer. Agility requires a real-time awareness of these kinds of production numbers.
Imagine, also, knowing the precise labour needed to complete a phase/batch/order. ERP and MES can unite on everything from scheduling to recruitment. And the list of efficiencies goes on: ideal targets for overall equipment effectiveness (OEE); insights from the factory floor to the markets outside; inventory optimisation; remote work; and so on.
And with all these deliverables in place, the business can concentrate on the one thing economic Visions mention (or imply) more than any other: innovation. MES is the manufacturing sector’s useful manifestation of Industry 4.0. Sensors on factory and warehouse floors gather data and merge Information Technology (IT) with Operational Technology (OT). MES is a sophisticated intermediary that delivers the richest data experience possible to the stakeholders who need it most. It digests data flexibly, so it works well with a range of other technologies, including manufacturing favourites such as augmented reality (AR) and artificial intelligence (AI). What firms end up building with MES is a powerful knowledge ecosystem that unites the disparate parts of the business through data and choreographs a quick march to innovation.
The MES-ing link
Because it is tied to ERP, MES can help augment human capabilities. Here is a little-discussed truth: modern workers are drawn to roles that are heavily reliant on technology. Digital natives understand technology. They use it to do things previous generations would have done manually. Automation cannot exist in isolation. Human judgement remains indispensable.
But the UAE is part of a region that still struggles with skills gaps. Either before, during, or after onboarding, an employee will learn about the capabilities of the company’s IT. This has the potential to urge them to seek employment with the company or encourage them to stay. MES bridges talent gaps through intuitive design. A new-hire could end up adding value that would — pre-MES — have taken a five- or 10-year veteran to achieve. And the system can act as a mentor to the employee, in some circumstances even certifying them for more advanced tasks.
The “Made in the Emirates” momentum is full of economic promise. Industry 4.0 is already playing its part and allowing manufacturers to move closer to the AED300-billion target laid out in the government’s industrial strategy. MES is the fulcrum on which all successes rest.
