Industry 4.0: MES and OEE Value Proposition Podcast

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Listen to the Podcast on Industry 4.0, MES, and OEE

Dr. Jack G. Nestell of The ERP Organizational Change Journal Podcast interviews Factivity about manufacturing execution systems (MES), overall equipment effectiveness (OEE), and Industry 4.0.

We discuss one specific MES manufacturer’s approach to successful assimilation.

We explore the value proposition of MES, Industry 4.0, OEE, technologies driving Industry 4.0., ERP and MES integration, OEE and MES myths and mistakes, the Internet of Things (IoT), the definition of MES success,  MES differentiators, and much more!

We explore the value proposition of MES, Industry 4.0, OEE, technologies driving Industry 4.0., and successful ERP and MES integration with Oskar Schwarz of Factivity – Nestell & Associates (

Episode Highlights 

06:41 What is MES?

12:15 What is industry 4.0?

14:49 What is OEE?

24:03 How do you select technologies for Industry 4.0?

28:20 How exactly is Industry 4.0 changing (and expected to continue to change) the face of manufacturing?

29:46 Factivity website states that “Manufacturing companies today realize that factory floor data collection is simply not enough to stay competitive. Beyond accounting for labor time is a growing need for real-time visibility and real-time solutions. Easy-to-use information “tools” can help management optimize schedules, eliminate bottlenecks, minimize scrap, shrink downtime and maximize machine (OEE) and labor assets. This new set of functionality is offered in the FACTIVITY MES MODULES…a set of software “tools” to improve your production process, lower costs and improve on-time delivery. Using a customizable factory floor user interface (UI), our solutions consist of 3 major software systems, each sold separately, with add-on modules for FACTIVTY MES:”  Can you elaborate for on the Factivity tools set and how exactly it helps improve an organizations real-time visibility?

36:51 Factivity has a paper that they share discussing OEE Myths and Mistakes that helps provide insight in order for the customer to keep their OEE project on the right track. Can you share a couple of these myths and mistakes?

40:17 What can you share regarding understanding manufacturing and the IoT? How can your business benefit from the Internet of Things?

43:04 Suppose you are leading a kickoff meeting for an organization that is just starting an MES implementation. How would you define and describe for them “success”?

45:48 With so many options, so many marketing and sales approaches, and many organizations having never been through an MES selection previously, how can organizations focus on looking at the true differentiators with MES vendors? I tell people, and our clients, all the time that during the sales pitch, you can often swap logos on the same sales slide deck and leave the rest…as they all seem to say the same thing. What do you say? What are some things to consider when trying to understand the true differentiators between MES options during the selection process?  What would be your general advice to organizations looking to select an MES solution?

52:55 What would you say are the two most significant challenges in an MES implementation effort?

56:06 What is more likely 1) nearly perfect success with no major challenges or 2) Some challenges but the organization endures (due to strong culture) and therefore success?

57:15 As you know implementation process and methodology is crucial, what can you share with our listeners as to how you feel your implementation process is a differentiator from other MES players?

1:01:51 If you were going to give advice to an organization regarding successful MES implementation as a tool for business continuous improvement and value realization, what would you say in terms of learning, leadership, and culture?

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