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Plant Floor Automation Requirements for Food ERP Systems
Plant Floor Automation Requirements for Food ERP Systems
By Thomas R. Cutler
The plant floor automation issues unique to the food manufacturing sector are significant. Finding an ERP (enterprise resource planning) system which addresses the idiosyncratic nature of food manufacturing is not easily accomplished. Despite claims, promises, and elements for success, few ERP vendors are comprehensive in providing the full spectrum of needed functionality.
According to Rebecca Gill, vice-president of Toledo-based TGI, Ltd., and Enterprise 21 Food ERP, the plant floor automation issues to verify include the following:
- Online tracking of engineering change orders with electronic routings for approvals.
- System generated BOM's and routings for configured products.
- System generated production schedules from MRP module.
- Automatic yielding for finished goods and BOM components/ingredients.
- Where used and mass replace capabilities.
- System generated work orders for make to order environments.
- Fully attributed inventory from order entry through production and shipping.
- Online order promising by exploding the multi-level BOM, reviewing BOM stocking levels, and production space.
- Online messaging for production managers on plant floor exceptions.
- Integrated dashboards for management's KPI's.
Other food ERP vendors have specific functionality such as BatchMaster Software which provides special laboratory functions including recipe based manufacturing, allowing manufacturers to organize production activities around the recipe to produce multiple finished products. Rory Job, Vice-President of BatchMaster noted that, “Recipe management enables the manufacturer to conduct nutritional and laboratory analysis with recipe revisions.”
Finding a balance between industry sector nuance and a solid core ERP system is tricky. The basic ERP functions are often lacking when the focus is too heavily on the bells and whistles. Gill noted that, “Many vertical ERP applications in the food sector lack strong financials and must integrate with bolt-on third party systems.” The ERP functionality should also include complete multi-company, multi-currency, and financial reporting capacity.
Maximizing Lean Efficiencies in Food Manufacturing
Specific and unique tools to affect maximum lean efficiencies for Operations Managers should include…
- Fully EDI enabled which offers automatic order entry, acknowledgements, ASN submittal, invoicing, purchase order transmittal, vendor acknowledgements
- Automatic check input and matching for bank deposits
- System generated forecasts based on sales history
- Online system (MRP/DRP) generated requisitions with purchase order creation and submission
- Online messaging with exception reporting
- Fully barcode enabled system
- Directed putaway, pick, and restocking locations in warehouse
- Various picking methodologies for complete optimization of the warehouse
- Centralized purchasing and payment for multiple facilities, divisions, or companies
- Fully integrated e-commerce
- Integrated to Microsoft Outlook
- Fully integrated CRM
Many companies within the food and beverage industry struggle due to lack of system integration and poor visibility of major business functions. Executives do not want to simply manage their business, they want to lead and direct the future of their company. Today’s executives need real-time sophisticated tools to make educated decisions.
Whether viewing inventory levels or reviewing production capacity, food ERP software must allow users to gain this information quickly. Advanced decision support systems and business planning models using linear programming can take the average executive’s day to the next level by placing all relevant business data at their finger tips and within their reach whenever they need it.
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Author Profile:
Thomas R. Cutler is the President & CEO of Fort Lauderdale, Florida-based TR Cutler, Inc., the largest manufacturing marketing firm worldwide – http://www.trcutlerinc.com/. Cutler is the founder of the Manufacturing Media Consortium of twenty seven hundred journalists and editors writing about trends in manufacturing. Cutler is the lead spokesperson for the ETO Institute (http://www.etoinstitute.org/). Cutler is also the author of the Manufacturer's Public Relations and Media Guide. Cutler is a frequently published author within the manufacturing sector with more than 300 feature articles authored annually; he can be contacted at trcutler@trcutlerinc.com.