Jeanette Söderblom and Torbjörn Josefson in a discussion about Prosmart’s web application.

ERP, MPS, MES – what do all these abbreviations actually mean?

For manufacturing companies today, using digital tools to plan and administer production is, in most cases, a given. However, with terms such as ERP, MPS, MES, time reporting systems, planning systems, and much more in circulation, it can sometimes feel both confusing and overwhelming to even start talking about. Below, we have summarised a simple guide for those who want to understand what best suits your organisation.

Which system is best for you as a manufacturing company?

What do all these abbreviations mean, and what type of system is actually right for your organisation? Here, we go through some of the most common types of systems in manufacturing. What do they do, what needs do they address, and how do they relate to each other? Follow along, and we will clarify what all the abbreviations mean.

ERP – the business system that ties everything together

ERP stands for Enterprise Resource Planning and is often a central system in a company. It handles the administrative areas of finance, purchasing, orders, inventory, and sometimes HR as well. The idea is that an ERP system should consolidate all business data.
For whom: Companies that need control over their entire flow, from order to delivery, and want to gather financial and administrative data in one place.

MPS – production planning

MPS stands for materials and production planning and is a planning tool that helps ensure the right materials, sufficient resources, and appropriate capacity are available when a product is to be manufactured. It is used to create production plans, calculate material requirements, and optimise schedules.
For whom: Manufacturing companies that need to plan material flows, machine utilisation, and capacity efficiently.

MRP – material requirements planning

MRP stands for Material Requirements Planning and is a system focused on calculating material requirements based on production plans and customer orders. MRP and MPS are closely related, as MRP is the predecessor and the internationally established term. MPS is a Swedish term that is more of an evolved version of the same type of system. The purpose of MRP is to ensure that the right quantity of material is available at the right time.
For whom: Manufacturing companies that want better control over material flows and purchasing planning.

MES – real-time control and follow-up

MES (Manufacturing Execution System) acts as the link between planning and the actual production. An MES collects data directly from machines as well as operators and sensors to show how production is actually performing. It makes it possible to track downtime, production speed, and quality in real time.
For whom: Manufacturing companies that want control over what is happening in production right now.

Time reporting – tracking working hours and profitability

A time reporting system is used to record working time, machine time, or order time, often as a basis for follow-up, utilisation rate, and payroll payments. It can be a standalone system or an integrated part of a larger business or production system. Prosmart offers a time reporting system, and both Prosmart Smart and Prosmart Sync include a time reporting system.

Maintenance and quality management

For companies with a larger machine fleet or production equipment, maintenance systems are a way to plan service and minimise downtime. Quality systems are used to manage and document deviations and complaints.
For whom: Companies that work with standardised processes and want to ensure high operational reliability and quality over time.

Production support systems – when everything is connected

Digitalisation has blurred the boundaries between many systems. Many companies find they are using several different tools that are strong in their specialist areas but do not communicate with each other. An ERP for finance, a separate MPS for planning, and a dedicated system for time reporting. This often leads to duplicated work, unclear follow-up, and difficulties getting an overview.

That is why many choose consolidated production support such as Prosmart

Prosmart combines several of the functions above—planning, time reporting, and production follow-up—in one and the same tool. In addition, Prosmart is an excellent choice for those who are satisfied with, for example, their finance or logistics system and do not want to replace it. With Prosmart, you can integrate other systems. The systems then exchange data with each other, and users do not have to switch between different systems.

In summary, there are many types of systems for manufacturing companies. All of these systems serve their purpose. However, as processes become more digital, the need for systems to communicate with each other also increases. A production support solution such as Prosmart makes it easier to gain an overview, work efficiently, and let the systems support production—not the other way around. Explore more articles and customer cases to help you choose the right system here!