Industry 4.0 & MES: How Smart Manufacturing is Changing the Game

MES connects ERP systems to the shop floor in Industry 4.0 environments. This article explains how real-time data and IIoT enable smarter production while keeping operators at the center.
Flow diagram showing how ERP systems like SAP, Odoo, Dynamics 365, and Epicor connect to Azumuta’s MES, which coordinates real-time data and feedback with the shop floor.
Published on:
12 May 2025
Updated on:
12 May 2025

Industry 4.0 is changing the way manufacturing works by bringing digital technologies into the heart of production. Think smart sensors, AI, machine learning, and cloud-based systems, all working together to make factories more agile, efficient, and responsive.

The core behind the smart factory approach: a connected environment where machines, systems, and people communicate in real-time. The aim is to enable faster decisions, predictive insights, and more flexible operations, so manufacturers can respond quickly to changes, reduce waste, improve quality, and keep costs in check.

A key part of this transformation is connectivity. All machines, operators, and activities on the shop floor generate a constant stream of data on performance and conditions. But having data isn’t enough: you need a way to turn it into meaningful actions. That’s where a Manufacturing Execution Systems (MES) comes in.

It connects the dots between the factory floor and the bigger business picture, turning raw data into real-time action.

The Role of MES in Digitalizing the Shop Floor

MES gathers data from machines, operators, and sensors to track what’s happening as it happens. It can manage schedules, enforce process compliance, monitor quality, and keep tabs on materials and production efficiency. In short, it turns factory-floor data into timely, actionable insights.

Adoption is on the rise, but there’s still plenty of room to grow. A global 2023 study found that 45% of manufacturers use MES, well behind the 82% adoption rate for ERP systems. In Canada, another 2023 survey reported 35% of manufacturers were already using MES, with 12% planning to implement one within a year. That leaves a large number of factories still relying on manual processes or outdated tools.

Even so, momentum is building. According to a 2024 study, 95% of manufacturers are either using or evaluating smart manufacturing technologies, including MES, up from 84% the year before. Larger companies are leading the way, while smaller and mid-sized firms often face more barriers, from budget to technical know-how.

We can conclude that all manufacturers are now considering MES or similar solutions as part of their digital strategy. Larger enterprises tend to lead in MES adoption (most large manufacturers have MES or equivalent Manufacturing Operations Management systems), while small-to-mid size enterprises lag behind.

Diagram showing how Industry 4.0 connects ERP systems (SAP, Odoo, Dynamics 365, Epicor) with Azumuta’s MES platform, which bridges real-time data and feedback between the ERP and the shop floor. The shop floor includes operators, machines, and smart connections, illustrating digital coordination in smart manufacturing.

Differences Between MES and ERP Systems

MES and ERP systems serve different roles in manufacturing, and understanding those differences can help clarify what each system brings to the table.

Scope & Focus

MES operates on the shop floor, guiding operators through tasks and capturing execution data in real time. ERP oversees the bigger picture, orders, inventory, purchasing, and finances.

Data & Detail

An MES like Azumuta’s collects detailed, operator-driven data, step completions, inspection results, assembly tools readings, while ERP works with summarized information like completed orders, inventory levels, and cost tracking.

Functionality

MES enforces production steps, flags issues during execution, and logs quality data. ERP manages planning and logistics: generating orders, tracking materials, and updating records once production is done.

Real-Time vs. Planning

MES reacts immediately to what happens on the floor. ERP focuses on planning and coordinating processes before and after production.

Integrations

MES integrates with operator tools and systems used on the line, such as torque tools or barcode scanners.

For instance, Azumuta’s MES integrates with Atlas Copco torque tools, automatically capturing torque values during assembly steps. This ensures critical tightening processes are properly recorded without manual input, helping manufacturers maintain full traceability and meet quality standards.

ERP connects with broader business systems like finance, CRM, and supply chain tools.

Users

MES is used by operators and supervisors; ERP by planners, buyers, accountants, and execs. Some users (like plant managers) use both.

In short, MES and ERP are built for different stages of manufacturing. Most factories use both, with MES ensuring production runs smoothly, and ERP managing everything around it. One isn’t necessarily better than the other, in fact, most manufacturers use them together because they fulfill different purposes.

MES & IIoT: How They Work Together

MES and the Industrial Internet of Things (IIoT) are complementary technologies that form the backbone of the smart factory. IIoT devices collect and transmit data from equipment, tools, materials, and environmental sensors. MES uses this data to orchestrate and optimize production.

Key aspects of their integration include:

Real-Time Data Collection

Sensors embedded in machines and production lines continuously transmit data on temperature, vibration, pressure, cycle times, and more. MES uses these inputs to assess performance, detect anomalies, and trigger actions.

Predictive Maintenance

IIoT enables condition-based monitoring. MES analyzes trends in machine data to schedule maintenance before failures occur, avoiding unplanned downtime and extending equipment lifespan.

Adaptive Production

MES can adjust operations on the fly based on sensor inputs. For example, if a machine is underperforming, MES can reroute production, slow down the line, or notify maintenance.

Energy and Resource Management

IIoT devices measure energy usage, water consumption, or waste generation. MES correlates this data with production output, enabling companies to optimize resource efficiency.

Operator Guidance and Safety

Wearable IIoT devices can alert MES when operators are in unsafe zones. MES can pause machines or adjust operations accordingly. MES also uses data from smart tools to validate proper torque application, calibration, or assembly steps.

By fusing IIoT’s data collection capabilities with MES’s process control and analytics, manufacturers gain a real-time digital twin of their operations, improving decision-making and driving continuous improvement.

Visual showing the data flow between IIoT devices and MES. On the left, IIoT devices like robots and sensors collect data, which flows to the MES on the right. MES processes this data to enable energy optimization, predictive maintenance, adaptive production, and operator safety, illustrated with matching icons.

MES in the Age of AI and Hyper-Automation

Looking ahead, MES will continue to evolve as AI, edge computing, and 5G connectivity gain traction. Emerging trends include:

  • AI-Driven MES: Advanced MES platforms will use AI to optimize scheduling, detect patterns in downtime or defects, and support autonomous decision-making.
  • Edge MES: Processing MES data at the edge (near the machine) will reduce latency, enabling real-time control even in bandwidth-constrained environments.
  • Cloud-Native MES: Cloud-based MES platforms offer scalability, lower upfront costs, and faster deployment, ideal for multi-site manufacturers.

These innovations will make MES not only smarter but also more accessible and adaptive. As the manufacturing landscape becomes increasingly volatile and competitive, MES will be an essential platform for agility and resilience.

Still, as factories become increasingly digitized and automated, it’s important to remember that people remain essential. While machines have often led the charge in digital innovation, the operator should stay at the center of it. Technology should support—not replace—the people running the shop floor.

Azumuta’s Human-Centric MES

Thanks to Azumuta’s MESs human-centric mindset, operators get clear, step-by-step digital work instructions right at their fingertips, complete with images, videos, and smart checklists, on tablets, smartphones, or even AR headsets. Real-time alerts and quality checks keep them informed, while built-in improvement boards make it easy for frontline workers to flag issues or suggest optimizations. Meanwhile, supervisors and managers benefit from live dashboards and seamless integrations with ERP, IoT, and other systems, so nothing gets lost between planning and execution.

Azumuta’s MES is a clear example of how advanced technology can enhance, not overshadow, the people behind production. It brings together the best of Industry 4.0 with tools that are intuitive, responsive, and designed to keep operators in control.

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Azumuta without MES Strategy

Not every manufacturer is actively looking for a full MES but many still face challenges that traditional MES platforms are meant to solve. That’s where Azumuta fits in. It doesn’t require a complete MES overhaul to deliver value on the shop floor. For companies simply looking to replace paper instructions, improve traceability, or gain better oversight of operator tasks, Azumuta offers a focused, modular solution.

At its core, Azumuta is built around people. It supports operators with clear, digital work instructions tailored to each product or variant, and guides them step by step through the job. Every action, for examples torque value entries or scanned components, is logged in real time, creating full traceability without extra admin work.

As a digital traveler, Azumuta follows each product through production, recording who did what, when, and how. Engineers and supervisors gain live visibility into progress and can manage instructions, audits, and quality flows, all from a single interface.

Whether you’re rolling out a full MES strategy or simply aiming to make shop floor execution more reliable, Azumuta offers a practical way to get started: operator-centric, scalable, and ready to integrate.

MES in the Factory of the Future

As Industry 4.0 continues to reshape manufacturing, MES is becoming the operational core that keeps everything aligned, from high-level planning to hands-on execution. While ERP systems manage orders and logistics, and IIoT devices generate vast streams of shop floor data, it’s the MES that makes those pieces work together in real time.

The key isn’t just digitization; it’s coordination. MES enables that coordination, translating sensor input, operator activity, and system triggers into actions that are both traceable and responsive. And as MES platforms evolve with AI, edge computing, and AR, they’ll not only get smarter, they’ll become more user-friendly, modular, and scalable.

But all of this only works if people remain at the center. That’s where human-centric platforms like Azumuta come in, not replacing operators, but supporting them with tools that are intuitive, visual, and grounded in their daily work. Whether you’re ready to roll out a full MES or just taking the first steps toward digitizing work instructions, the impact of even small changes can be immediate and measurable.

Smart manufacturing isn’t just about adopting the newest technology. It’s about building a production environment where technology helps people work smarter, every shift, every product, every day.

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A profile of an assembly operator is displayed on the left side, showing categories such as Pre-Assembly, Assembly, and Testing. Adjacent charts detail tasks like Cleaning, Assembly, Packaging, Pre-Assembly, and Testing, each with numerical values.