When promoting digital transformation (DX) in the manufacturing industry, tool selection is the first major hurdle. With a wide variety of categories such as ERP, PLM, MES, and low-code, many people say, "I don't know which one to choose."
This article is for the manufacturing industry. DX Develops numerous tools. SIer That is Exio Digital Solutions Co., Ltd. Based on interviews, this article provides a practical explanation of tool types, selection methods, common pitfalls after implementation, and how to avoid them. Understanding "what you should know before selecting a tool" is crucial. DX This will determine whether the initiative succeeds or fails.
Background of the need for manufacturing DX tools
The manufacturing industry is facing labor shortages, the problem of passing on skilled techniques, and the need to respond to changing market needs, and these issues are now difficult to resolve without digital tools. However, even when tools are introduced with the idea that "digitalization will solve everything," problems such as them not being used on the factory floor or not producing the expected results continue to occur.
To successfully implement the tools, it's crucial to first understand the overall picture and process of DX in manufacturing. The definition of DX and the approach to promoting it are explained in detail in the following article.
Main areas where manufacturing DX tools are active: PLM, MES, ERP, and OT.
The core systems and tools for manufacturing DX play a vital role in four main areas. Each area covers a different layer of the manufacturing process, and the area to prioritize depends on "what you want to reform." Exio Digital Solutions Co., Ltd. recommends first clarifying the relationship between these four areas (tool types) and your company's challenges before selecting any tools.
| region (Tool type) |
Main role | Typical problems | Points to note |
|---|---|---|---|
| PLM (Product lifecycle management) |
Product design, BOM management, and design change management. | BOM inconsistencies, inability to implement design changes, and ambiguity of responsibility between departments. | The very foundation of manufacturing. Because inconsistencies have a cascading impact on ERP and sales BOMs, any discrepancies can have a wide-ranging effect. |
| MES (Manufacturing execution system) |
Execution management, work instructions, and performance data collection at the manufacturing site. | On-site operations are not established, accurate performance data cannot be obtained, and handling of exceptions and changes is not efficient. | In the worst-case scenario, it could halt the production line or threaten on-site safety, so careful design is necessary for its implementation and establishment. |
| ERP (Core business system) |
Integrated management of accounting, sales, inventory, purchasing, and production management. | It doesn't fit the business needs and is not used, increasing the input and operational burden, inconsistencies in inventory and cost data, and problems during financial closing. | This is where gaps often arise with business practices unique to Japanese companies. Designing the scope of customization is crucial to success. |
| OT (Control and production equipment) |
Control and operation management of manufacturing equipment and lines | Difficulties in integrating with IT systems, cybersecurity risks, and dealing with specification differences between equipment. | The integration of IT and OT (IT-OT collaboration) is a key challenge in Digital Manufacturing. This is an area that requires specialized knowledge. |
Tools to improve the efficiency of design and development (PLM-related)
Product Lifecycle Management (PLM) is a system that manages the entire product lifecycle, from planning and design to manufacturing and disposal. Its core function is the management of the Bill of Materials (BOM), and any inconsistencies here will have a cascading impact on all subsequent processes, including ERP, sales, and maintenance. Because the digitalization of upstream processes directly impacts the quality and efficiency of all subsequent processes, it is a fundamental tool area for manufacturing DX.
Tools for production management and scheduling (MES/ERP systems)
A Manufacturing Execution System (MES) is responsible for managing execution on the manufacturing floor. It performs real-time work instructions, collects performance data, manages quality, and manages equipment, enabling "visualization" of the factory floor. Enterprise Resource Planning (ERP) is a core system that integrates and manages accounting, sales, inventory, purchasing, and production planning, optimizing resources across the entire company. The two often function in conjunction, making data consistency design crucial.
Tools for equipment maintenance and predictive maintenance (OT systems)
OT (Operational Technology) refers to manufacturing equipment and control systems. It enables "proactive maintenance" that minimizes downtime by utilizing IoT sensors to collect equipment operation data, detect signs of failure, and perform preventive maintenance. The integration of IT systems and OT systems (IT-OT collaboration) is a key theme in manufacturing DX, but it is an area where dealing with differences in specifications for each piece of equipment and the diversity of communication protocols often presents challenges.
Installation failure patterns and workarounds for each tool type.
In the implementation of DX tools for the manufacturing industry, many failures occur during the "implementation design" and "stabilization" phases after tool selection. Exio Digital Solutions Co., Ltd. has observed common failure patterns for each type of tool in the field and outlines what should be addressed in advance.
| kinds | Common failure patterns | Why does it happen? | Things to do in advance |
|---|---|---|---|
| ERP | It doesn't fit the business and goes unused / Input and operational workload increases / Inconsistencies in inventory and cost data occur, affecting financial statements | The system is not designed to adapt business processes to standard functions. It operates with insufficient master data (items, trading partners, etc.). | Prioritize inventorying current business processes and organizing and defining master data. Agree within the organization on the principle of "adapting business processes to the ERP system." |
| PLM | Inconsistencies in the Bill of Materials (BOM) can trigger a chain reaction, disrupting the implementation of design changes and blurring departmental responsibilities. | The design, manufacturing, and procurement departments lack a unified definition and management rules for the Bill of Materials (BOM). The design change process is highly dependent on individual expertise. | Agree on the definition and management rules of the Bill of Materials (BOM) across departments. Document the design change flow and determine organizational roles and responsibilities during the design phase. |
| MES | On-site implementation is not established / Accurate performance data cannot be obtained / Exceptions and changes cannot be handled effectively. | The screen and operation flow are designed in a way that does not match the actual situation on the ground. The exception handling design is insufficient. | Involve on-site personnel from the design stage. Conduct thorough on-site verification before going live and incorporate exception handling flows into the design. |
| OT (Operational Technology) | Unable to integrate with existing IT systems and data / Dealing with specification differences for each piece of equipment is unexpectedly complex. | The IT and OT departments lack a proper collaborative system. The communication protocols and specifications of the equipment are diverse, making standardization difficult. | Choose a partner with expertise in IT-OT integration. Thoroughly investigate equipment specifications before implementation and finalize the integration design early on. |
What can be said in common is that following these six steps before implementation—"understanding the current situation → designing the future vision → preparing data → designing system integration → on-site verification → considering implementation"—is the minimum requirement to prevent failure. Regardless of the type of tool, skipping this order and proceeding directly to product selection is the root cause of failure.
Furthermore, the key to successful DX in manufacturing is not to aim for solutions using individual tools, but to integrate systems across the entire value chain. Failure patterns and solutions from the perspective of organizational promotion structure and leadership are detailed in the following series of articles.
- Related article: [Series 1/3] Real-world failure cases of DX in manufacturing | Explained along with the characteristics of three types of promotion leaders
- Related article: [Series 2/3] Practical knowledge to solve common DX mistakes in manufacturing | Thorough explanation by type of project leader
12 Recommended DX Tools for Manufacturing
This article introduces12representative tools that can be used to promoteDXin the manufacturing industry, categorized by type. The selection criteria for the listed tools are as follows:
① It has a proven track record of implementation in the Japanese manufacturing industry.
② Coverage is provided for each category, such as PLM, MES, ERP, OT, and on-site DX.
③ It can accommodate a wide range of scales, from small-scale starts to large-scale implementations.
Since the challenges differ depending on whether you're in management,the ITdepartment, or on the front lines, we recommend starting by identifying the type of area your company wants to focus on.
Production Management/MES Tools (3 Selections)
Production management systems (MES) are tools that handle process management, data collection, and cost calculation from order placement to manufacturing and shipping. They are a core area of manufacturing DX, enabling "visualization" of on-site operations and integration with management data.
Its greatest feature is its high compatibility with SAP ERP. It has extensive experience integrating with SAP S/4HANA, and the configuration of using SAP as the core ERP while combining it with mcframe for on-site production management is widely adopted by medium-sized to large domestic manufacturers. It also has a proven track record in supporting multi-site operations for globally expanding manufacturing companies.
Because it allows for centralized management of everything from production planning to data collection, cost calculation, and quality traceability, it is suitable for companies facing the challenge of "manufacturing site data not being connected to management control." However, implementation requires considerable requirements definition and design effort, making it a product that relies on support from a system integrator (SIer).
ERP (Enterprise Resource Planning) (1 selection)
ERP is a core system that integrates and manages accounting, sales, inventory, purchasing, and production planning. Manufacturing-specific ERP systems cover industry-specific business processes that are difficult to handle with general-purpose packages.
Equipment management and operational visualization tools (2 selections)
Equipment management and OT (Operational Technology) tools are responsible for the maintenance management of manufacturing equipment and the collection and visualization of operational data. They are used in combination with IoT sensors for preventive maintenance and to improve equipment utilization rates.
Top 3 Tools for On-Site DX and Document Digitization
Digitizing on-site paper forms, manuals, and inspection records requires careful consideration of physical infrastructure requirements such as communication environments and dedicated terminals, but it is an area within manufacturing DX where results can be seen relatively quickly. Since on-site personnel will use it directly, simplicity of operation and suitability to the on-site environment are important selection criteria.
Its key feature is its ease of use, allowing for the direct digitization of on-site paper-based work. Its user-friendly UI design is highly regarded, even for on-site personnel with limited IT literacy. It's widely used in quality control, equipment inspection, and hygiene management, enabling features such as preventing omissions in inspection records, automatic aggregation of quality data, and immediate access to past records. It also includes features for visualizing collected data on dashboards and alerting users of abnormal values, and has a proven track record of implementation in a wide range of manufacturing industries, including food, chemical, and automotive parts.
Procurement and logistics tools (2 selections)
Digitalization in procurement and logistics directly leads to cost reduction and improved inventory accuracy. This suite of tools supports the optimization of the entire supply chain, which is crucial for the competitiveness of manufacturing companies.
Low-code development platform (1 selection)
Low-code platforms are used as a layer to absorb change, placed around core systems such as ERP, MES, and PLM. Rather than being standalone DX tools, they are a product category that truly shines when combined with other systems.
How to choose the right tools for your company
Start with "What do we want to change?" rather than "What should we implement?"
The most common mistake when selecting DX tools for the manufacturing industry is "starting the evaluation process with the tool as the primary focus."
It's not uncommon for companies to invest significant resources in product selection only to end up with a product that they've implemented but never use.
Once you've defined your challenges and objectives, the types of tools you need will naturally narrow down. The key to successful tool selection is to first clearly define "what your company wants to change," and then select the appropriate products.
Five key considerations before selecting a tool.
| Criteria for Consideration | Questions to confirm | point |
|---|---|---|
| ① What do you want to change? (Issues/Objectives) | Which business processes have problems? Can these be quantified (e.g., effort, error rate)? | Tool selection starts here. The question isn't "What should we implement?", but "What do we want to change?" that comes first. |
| ② Relationship with existing systems | What system are you currently using? Is integration necessary, or is a replacement needed? | If you already have PLM, ERP, or MES systems in place, the options will differ depending on whether you choose to "leverage the existing system and complement the surrounding infrastructure" or "overhaul the core system itself." |
| ③ Introduction and operation system | Is there a system in place for collaboration between the IT department and operational departments? Is there a project leader within the company? | Introducing a system without a proper system in place is the biggest reason for its failure to take hold. |
| ④ Expected effects and investment scale | Is it short-term operational efficiency improvements or medium- to long-term business transformation? What is the budget size? | A crucial factor in deciding whether to start small (e.g., with low-code development) or undertake a large-scale core system overhaul. |
| ⑤ Continuity of operation and maintenance | Who will be responsible for version upgrades and support after implementation? | A common pitfall in manufacturing DX is that the system is often left "inactive" without proper maintenance. |
Verify compatibility with existing systems.
For companies already operating PLM, ERP, and MES systems, a key consideration when selecting new tools is "how they will integrate with existing systems." It is necessary to clarify in advance the data integration method (standard APIs, data integration platforms such as EAI/iPaaS, or traditional CSV file integration), the costs and effort involved in the integration, and the relationship with existing vendors.
Emphasis on support and implementation assistance systems
For manufacturing companies, implementing DX tools isn't the end of the process; a partner is needed to continuously support adoption, improvement, and version upgrades. Especially for large-scale core systems, the quality of support from the system integrator (SIer) significantly impacts success. We recommend selecting a partner based on a comprehensive evaluation of their global capabilities, track record in the manufacturing industry, and support system.
The idea of using low-code to prevent the implementation from becoming a mere formality.
The core system is a structural problem that makes it difficult to change.
One of the root causes of problems such as "not being used in the field" or "not being able to keep up with changes in business operations" after implementing ERP, PLM, and MES is that these core systems are designed to be "difficult to change." Once the specifications of a core system are finalized, the cost of making changes is high, making it difficult to respond flexibly to changes in field operations or market needs.
An architecture that places low-code around the periphery.
The solution that Exio Digital Solutions Co., Ltd. has seen with multiple manufacturing clients is based on the idea of "not changing the core system itself, but rather placing low-code around it to absorb change." By placing a low-code platform around ERP, PLM, and MES, it is possible to keep the core system clean while flexibly absorbing changes in on-site operations and market needs.
Specifically, we use low-code to quickly address "gap tasks" that are difficult to handle with core systems alone, such as improving on-site input UIs, digitizing exception handling flows, and creating information sharing applications between departments. Having this layer allows us to achieve both stable operation of the core system and responsiveness to the realities of the field.
Start small and solidify the overall picture while conducting verification.
ERP, PLM, and MES projects in the manufacturing industry often span several years, and requirements frequently change during that time. While the ideal approach is to "perfectly define the overall architecture before starting," this is often difficult in reality.
A small-scale start approach utilizing low-code allows you to test things out on a small scale, demonstrate their effectiveness, and then solidify the overall picture. Starting at the departmental or task level, building up results, and then expanding horizontally is an effective way to advance DX while reducing the risks of large-scale projects.
Summary
Let's summarize the key points of this article.
- The core tools for manufacturing DX are in four areas: PLM, MES, ERP, and OT. The starting point for selection is narrowing down the type of tool based on "what you want to reform."
- Each type of tool has its own typical failure patterns. Following six steps—understanding the current situation before implementation, designing the future vision, preparing data, and conducting on-site verification—is essential to avoiding failure.
- Tool selection should begin not with "what to implement," but with "what we want to change." Organize the challenges, objectives, organizational structure, and relationship with existing systems using five axes.
- An architecture that places low-code around the core system to absorb change is an effective way to achieve both practical application in the field and stable operation of core systems.
- An agile approach, starting small and solidifying the overall picture while conducting trials, is a practical solution for promoting DX while reducing the risks of large-scale projects.
Macnica offers comprehensive support for manufacturing DX, from tool selection to implementation and adoption assistance. We also provide consultation on utilizing low-code platforms such as Mendix.