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The Work/Home/Vacation Balance

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BB on Beach resized 600I can't say I have it all figured out, but I know there's an answer to the balancing game and it's mine to find. 

Sometimes I like being at work better than I like being at home and other people have commented on this phenomena to me as well.  At work, responsibilities are somewhat orderly or at least defined in some way, whereas all kinds of crazy things can go hay-wire at home.  Mates, spouses, kids, cooking, household appliances, neighbors, "inventory" - all kinds of surprises can be waiting for you upon your arrival back at your happy home. 

Granted, all kinds of surprises can be waiting at work, too, not all pleasant, but a person can say, "at least I don't live here". 

Well, that's only sort of true. 

We all know we spend more waking hours at work than we do at home.  And depending on where you are in your life, home can represent a near equivalent (given your situation) of the stress represented at work. 

So why do we do this?  Because work provides income we can use to feather our nests, or perhaps to enjoy a vacation:  those blissful hours and days spent away from the office and sometimes away from the routine at home, too.  It's not that you can ever really get "away" from your responsibilities, but you can hold them at bay for some defined period of time. 

That is, unless work calls you away from vacation, or you just can't resist logging on to your manufacturing ERP system from your BlackBerry or home computer.  It happens to all of us at some time ("Honey, I just want to check my email real-quick, just give me a few minutes").  Your BlackBerry can deliver your email to you anywhere and it can deliver your Manufacturing ERP to you anywhere, too (ex., EnterpriseIQ for the BlackBerry).  Is this a blessing or a curse? 

Communication is undeniably more efficient than every before and we rely on it.  Is it so bad to take a call when you are supposed to be "off"?  If you have the information available to make the necessary decision in the most efficient manner, you can avoid a bigger problem to be waiting for you later upon your return to the office.  If you can access information while sitting by the pool or on a beach, does it alleviate your worries?  There may be no nicer place to check the status of your orders or your meeting schedule in CRM than pool- or beach-side. 

It may seem that you missed part of your vacation time, but to avoid problems lurking, I don't mind.  I have an investment in my work, and work supports any time I can get away from it, whether at home or away, so I'll take the benefits along with the drawbacks.  Don't take away my vacation and don't take away my BlackBerry!

Options vs. Features on Manufacturing ERP Software

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Option Feature resized 600When is an option no longer an option but a necessity? When  purchasing equipment it can be the stripped down model or the one fully loaded with all options. You may remember when an automatic transmission and radio were an option when buying a new car. Now a full-blown stereo is included and the manual transmission is the option! Automobiles now come loaded with what used to be options! Power seats, power windows, side view mirrors on both sides etc..

What is the cost to add these things after the purchase? Well it can be a ton of money! The same thing goes for manufacturing equipment. More and more features now standard were once pricey options.  Bells and whistles are in abundance on many of the newest Injection Molding machines for instance. They can run all by themselves, keeping track of tons of data, even counting cycles and shutting down if the job is finished or some parameter is going out of control! SPC and closed loop control for pressure curves allow the machine to adjust to changes in viscosity on its own! So why not include a programable I/O card for add-on equipment? Maybe even make the cycle count available for remote monitoring!

I would like to challenge the machine manufacturers out there to take notice. Without using any names there are some who provide an output for cycle counting but most do not. Those that do not will gladly charge you to add an I/O board and update the programming. Some of these charges add up to thousands of dollars! While at the same time these same companies will tell you all the great things the machine can do by interfacing with other equipment to allow you more flexibility and use less manpower!

It often takes a herculean effort for some machine manufacturers to simply provide an output for the start of a cycle! I mean this should be one of the features included! What is the cost of such a simple feature when done before shipping the equipment as compared to after? Well we know out of who's pocket the later comes from! Yours! Robots and sprue pickers need this type of interface. Why not provide a standard output for counting cycles that connects to an ERP system that can really benefit the company's bottom line!

With more accurate counts and better visibility of cycles compared to standards we all make more money! Less waste and higher efficiencies truly add value to you and your business! If we do a better job in today's economy we make ourselves stand out from the competition, thus gaining more customers and a possible need to expand capacity. This translates to buying more of that equipment from a company with enough forethought to add simple features such as programmable outputs!

The point is this, times change and new circumstances are created. That old car you bought 40 years ago is outdated for a reason! Somebody realized it's easier to offer features instead of options. You're going to buy the thing anyway, why not have the versatility and freedom to be inventive along the way! What do you think?

Sustainable ERP Manufacturing

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recycle money resized 600Sustainable manufacturing, recycling, repurposing, reducing your global footprint, going green.  All of these phrases have become more and more widely used in the last 20-30 years.  At first they were just phrases; ideas that were maybe a little 'out there' but now increasingly manufacturing companies are implementing business processes and philosophies to bring the phrases to reality.  And why?  It turns out sustainable manufacturing is profitable.

'Sustainable manufacturing' includes the manufacturing of 'sustainable' products and the sustainable manufacturing of all products.  It's the environmental responsibility of manufacturing companies to begin to keep this phrase in mind.  It caught my attention because the idea is not only should we manufacture sustainable products, but the way we manufacture them should leave a small footprint.  I like the idea of only using the resources you need and reusing them if possible.

I'm excited to see the Department of Commerce (1) and the United Nations (2) taking an interest in sustainability.  Their buy-in will help promote the ideals of sustainability.  However, I know there are a lot of manufacturers who implemented grass roots sustainable manufacturing business processes a long time ago because they knew eventually they would be more profitable. And profitability is still the bottom line.

A 2008 sustainable manufacturing study by Atos Origin reported, 'These companies have set up initiatives to apply business intelligence to operational data that reveals areas where raw materials can be saved and energy conserved, which delivers immediate business impact through lower costs while, at the same time, reducing the company's environmental impact.'  By doing the 'green' thing, they are also more profitable than before.

There have recently been two examples of sustainable manufacturing in the media with regard to products. The first one was a dog toy that just went on the market.  It's a virtually indestructible ball made completely of scrap material.  The other product was a salad spinner (generally made of regrind) that's also used in third world countries to identify anemia. I know, you are feeling the love with these products; they fulfill needs, they are sustainable, repurposed and bring profitability to the companies who manufacture them along with an environmental pat on the back!

When I read about those two products it was easy to come up with an example for the manufacturing side of the sustainability initiative; a new product recently released to beta customers by IQMS.  It's RealTime Process Monitoring and it gathers machine performance and process data in real time.  Users define which performance and measurement parameters to capture for each item or project.  When limits are met or exceeded users can quickly identify necessary adjustments to the machine or device allowing for maximum efficiency while utilizing the least amount of resources, for example water and heat, and still manufacture a quality product.

Companies can begin to implement sustainable manufacturing with the goal of profitability and not just due to the pressure they receive to be 'environmentally correct'.  It's a mindset that takes very little time to acquire and the benefits will be long lasting.

I'm proud to be part of IQMS who is a part of the chain in sustainable manufacturing.  As a company they are very involved in the 'green' initiative.  IQMS recycles many of the resources it uses. From recycling just about everything, to hosting an electronics recycling event, to reusing obsolete CD's and DVD's on a parade float.  It didn't take long for IQMS to realize going 'green' doesn't take a lot of effort, just a change of habits and how we view and reuse resources.

 

Footnotes:
1.“Sustainable manufacturing is defined as the creation of manufactured products that use processes that are non-polluting, conserve energy and natural resources, and are economically sound and safe for employees, communities, and consumers.”

2. Sustainable manufacturing “meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Teaching Old Manufacturing Dogs New ERP Tricks

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dog at laptop resized 600There is an ocean of theories out there swimming around the topic of adult learning.  Most are centered on the idea that adults learn differently because they come equipped with life experiences that children do not have.  Where sometimes pre-conceived ideas and theories can make learning new things more difficult, if used correctly, real life experience can immensely enhance and accelerate the learning process.  You CAN teach an old dog new tricks! 

When training ERP software users, you don't often find yourself in a room full of children.  Therefore, it's not important, in my situation, to understand the differences.  What is important is knowing what works and what doesn't work when teaching adults; and during my career I have made plenty of observations on just this topic.  Of course, everyone learns a little differently than the guy next to them.  From a trainer's standpoint, this is why it is important to incorporate several different learning styles into a class.  At IQMS, we ensure that class participants have the opportunity to hear, see, read, and do whenever possible.  We also believe in repetition.  Whether it be internal students going through our extensive employee 90-day training program or customers attending one of our training classes, the more times and the more ways we can present a topic, the more likely they are to retain the information. We also try to make use of the student's life experience and life situation whenever possible.  When preparing to teach an implementation class for new customers, our trainers spend time learning about each customer's business; which allows the trainer to relate the class topics to processes the student is already familiar with.  Many of our training classes are taught using the customer's data, which greatly accelerates learning because students are dealing with the part numbers they already know or the chart of accounts that they work with every day.

When attending a class of any kind, there are also several things the student can do to ensure maximum knowledge retention.  First, do some research.  Ask questions of the organization providing the training.  Will the class be hands-on?  Will you have the opportunity to "do" what you are being taught or only observe?  Ask if there is any pre-class reading or labs you can do now, to better prepare for the class. 

Second, prepare ahead of time.  Review the class agenda and any pre-requisites as soon as possible before the class.  This will ensure that your expectations and the class content are in line (so reviewing it in your hotel room the morning of the class is going to be too late).  Do some reading and get hands-on experience before you head to class.  When it comes to software training, at least get in to the system and move around, become familiar with basic navigation.

During class, give learning your undivided attention.  Make use of all the tools available in the classroom, including the trainer.  Ask questions!  Even if you think that you are the only one with the question, ask it anyway.  When a topic seems easy and you feel like you understand completely, fight the urge to skip the lab or pass over the exercise.  You won't know that you have it, until you try to do it yourself; and what a better time to find out than when you have the trainer there to help.

We have a funny saying around here that is, "Training is over, now the learning begins!".  While you may have gained a mass amount of knowledge in class, the true test of learning comes when you start to apply that knowledge.  The key to applying what you learned in class, is to do it quickly.  The more you do while the knowledge is fresh in your mind, the greater the benefit of class will be to you and your organization.

Comparing Apples to Apples in Manufacturing ERP Software

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Most companies today are looking for an industry specific ERP system that handles their requirements and meets more than just the basic ERP needs like inventory control, financial management, and sales and distribution. Many companies today want Quality, SPC, CRM, MES, Maintenance, Bar Code Scanning, EDI and more and realize the value of all of these components residing in one, nice package.

The ERP system vetting process used in most cases entails sending out long generic vendor questionnaires, selecting a few suppliers for short presentations, and scheduling day long, scripted demos.  At the end of the day all the systems begin to look the same. Not only that, but often the software sales people were convincing in the illusion that any system can handle all the customer's unique needs and any required third party interface to a another system would be invisible and seamless. So how has the research process changed and most importantly how do you make the right decision?

The first step in the process is to look at other companies in your industry.  Ask colleagues, trade organizations, social network sites, and yes, even competitors.  Find out what systems they are using. Ask them how they truly like the system.  Does it handle the specific process or industry needs?  How easy is it to use?  How long did it take to implement?  What is the software support like?  How are software changes handled?  Go back to that 5 year-old in us all and ask every question you can think of and then really listen to the answers.

The next step is to bring in some selected companies for a day of discovery and plant tour at your facility. This allows ERP vendors to see your unique needs. Show them your pain points and your detailed requirements. Let them ask questions on your processes and what is driving your search for an ERP system - whether it is your first one or your last one.  Make the suppliers fully aware of the specific topics they need to cover and gauge their confidence.  Be as specific as possible and ask for the same in return - don't be generic where specificity is best.

The detailed demos are the next step in the process. To best determine whether the vendor can meet your needs and requirements you should consider providing the vendor, in advance, with some of your data for utilization during this demo stage.  Have the supplier present your data and show in detail how they would handle your process, needs, and issues. If they have multiple systems that are required to be linked or interfaced together have them not only indicate those disparate systems but also walk you through the connectivity process and data sharing process.  Is it easy or cumbersome?  Is there a batch transfer or real-time data?  These factors will be extremely important when utilizing the system.

Once the top suppliers are selected it often comes down to evaluating the price. Some systems may seem less expensive on paper but they are often less expensive for a reason that you will pay for later. Make sure you are looking at all the hidden costs and comparing apples to apples not apples to oranges. This often works best by putting all the details side by side in a spreadsheet to make sure you aren't missing anything. One system might be less but support isn't included.  No one thinks they will need support, but inevitably everyone does.  Scalability might not be a factor now but what about in 3 -5 years?  The cost for having to buy another system is significantly more than that of being able to enhance the system you already bought.  By reviewing all these details as well as pros and cons, you can get the value of the system and not just the price.

So if you are at the beginning stages of an ERP selection, I encourage you to follow these steps in helping guide your search.  Being thorough, objective, and detailed will yield great results.  Because when you look at all the details is when you are most likely to know which is the best and most cost effective solution.

Why Buy Manufacturing ERP Software Now?

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Purchasing and implementing a new Enterprise Resource Planning (ERP) system can be a daunting prospect for many.  Even more so than the decision itself of WHY to purchase, many companies are confounded by the question of WHEN to purchase.  The economy is still questionable.  Some companies are seeing a rebound and others are merely seeing the hope of a rebound.  If this is true then why should a company decide to purchase a new ERP system now, when there is no guarantee that a profitability rebound is on the horizon?  Given that there is probably no perfect time to purchase ERP the question then is why should I buy now?  Below are three of the top reasons why buying now is the right choice.

First, and most importantly, think about where you want to be in a year, two years, or more.  If your business isn't at optimal capacity now but your plan is to get there within a year or even two, now is the time to buy.  If you purchase now, you can strategically plan your implementation and take more time to be meticulous about data conversion, data transfer, and possible changes to processes or procedures.  You can also allocate the proper resources and time to the implementation.  Having the appropriate people involved from the beginning and with the ability to commit the time to the project is by far the biggest hurdle with any implementation - regardless of the chosen system.  By the completion of "go live," chances are very good that the steps you took during the implementation will make your company more efficient and more aptly able to handle the increase in business that is anticipated.

Second is the fact that ERP companies are also still looking to make sales (read deals!) and are offering more tailored, industry-specific packages.  The rapid consolidation of companies that we saw a couple of years ago has, for the most part, subsided.  The result of the consolidation is that ERP system capabilities are more defined and it is easier to find ERP that more adeptly handles your company needs.  While one company might have multiple packages to choose from, overall choices of ERP systems that truly match your company's manufacturing type have diminished.  Thus, you have a field of less than 10 ERP systems, instead of 30 plus, from which to choose.  While less options doesn't seem like an advantage, think of it as weeding out a significant number of systems that wouldn't have been close to a good fit anyway.   The time saved in the beginning search process is significant.

Lastly, the information available, via a multitude of resources, is more abundant than ever before.  From basic internet searches to social media sites (i.e. Facebook and Twitter) to non-biased ERP comparison sites - all avenues provide a vast amount of information for any ERP consumer.  Never before has the power of the internet become such an ally for research and development.  A quick search of ERP companies can yield a list of top award winners, top customer comments, valuable reviews, and priceless notifications of pending lawsuits.  The information age has pushed the data available out of monthly print publications and into our daily lives.  By utilizing the information available, consumers are better equipped to ask the right questions, compare the answers to known information, and gain knowledge via other users out there in the World Wide Web.

So when thinking about your company and how you will rebound, think about ERP as a foundation for everything you do and a springboard to make you stronger in the future.  Your quality commitment, your goals for success, your ideas for strength as the economy rebounds - all of these can be achieved with a solid ERP system in place.  If you don't have that solid foundation now, then perhaps you should be thinking about getting it in place now.

Alas, Poor EDI, I Knew It Well

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Okay, so that is not how the line from Hamlet went (in more ways than one), but what is happening with traditional EDI in the industry these days.  For a standard that has been around for quite some time without much change, is it still relevant in the modern day world of the Internet, Web 2.0, XML, Web Services, etc.

I was curious to see what the X12 Organization had to say about the future of EDI.

Interesting bit of reading, if we were in 1990.  We are in 2010.  This is the future.  The day and age of ultimate connectivity to data, instantaneous communication, endless content, and more than enough blogs to numb the mind is here whether we like it or not.  Not sure if you have heard, but there is so much data out there on so many websites that the IPV4 address space may be depleted as soon as September of 2011.  And I was worried about the ozone layer.  Traditional EDI must be dead.

Don't you believe it.  The reported demise of traditional EDI has been floating around for over a decade.  It seems that every time a new standard or protocol or buzz word appears, EDI is on the verge of being put to rest.  Then it never happens.  A perfect example of this was when the concept of Web services started to materialize.  The thought was that EDI would be obsoleted in favor of the new method of passing data.  XML was the standard that was adopted for passing messages through the web and it was thought that this format would at some point replace the "archaic" EDI formats currently in use. That was the thinking in 2001.

Interesting thing is that the industry did not seem to buy into the Web Services concept as a replacement for EDI and businesses started looking for new ways to communicate EDI transactions with each other.  Even though XML was the bright new child in the industry, not many companies were jumping on board.  Big players such as Walmart, J.C. Penney, and Hallmark understood that XML existed as an option, yet they opted to continue using standard EDI transactions rather than take the plunge with the new technology right away.  In addition, Walmart took the initiative to drive some change in the landscape by implementing the use of an Applicability Statement 2 (AS2) protocol for connecting directly between two trading partners and eliminating the value-added network (VAN).  This would introduce savings for the businesses that would adopt this protocol and helped fuel the continued growth of EDI in the supply chain.

As much as it seems that EDI may not play well in new environments, part of its ability to survive is that fact that it is adaptable.  Even though traditional EDI tools were not replaced by a new data interchange standard based on Web Services in the early 2000s, those same EDI tools were used as the framework to support new technology.  As these technologies mature, some of the tools used for processing EDI may change, but the standard will still define the content.

To further prove how relevant traditional EDI is to the modern industry, there have been many companies from retail foods to high end automotive companies that continue to benefit from the use of EDI.  Two examples of such are Natural Products Market Place and Mercedes-Benz US International.  Both of these companies made the investment to use EDI to manage their supply chain and have found that they are in a better position to handle difficult economies and fully realize good market climates because of their choice.

IQMS, a leading ERP company, has put a significant amount of energy into building upon many technologies including Web Services and community driven portals to bring high levels of data visibility and collaboration to its user base.  Traditional EDI continues to be a relevant component in the suite of tools that the company offers.  Through the use of the eCommerce Module, IQMS has a large customer base that is realizing the benefit of an integrated EDI solution utilizing a combination of traditional, non-traditional, and XML based EDI.  These customers are able to handle orders and shipment notices in a much more timely fashion than would be possible in a manual entry process.  As IQMS moves further into 2010, the number of requests for new transactions and trading partners has picked up pace.  More businesses in the supply chain are moving to leverage the power and efficiency of a standard that has been around for over 25 years.

Is EDI dead?  Not by a long shot.

Measuring for Manufacturing ERP Benefits

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If you can't measure it you can't improve it?!  How many times have we heard that before?  But when we go into manufacturing companies looking for ERP systems and ask some of the basic questions, like "what is your on-time shipment accuracy?" or "what is your machine efficiency?" or "what is your daily cost of scrap?"  we get blank stares or answers like "it's over 90% I think" or "it's in the 70 to 80% range I think" or "we don't have that much scrap."  That would be like an ERP software company responding to the question of "how many of your customers meet the target go live date" with the answer "most of them". "Most" can mean a lot of things - 95%, 75% or 51% which is a big difference in the bottom line.

For most businesses today the difference in a couple of percentage points on machine efficiencies, OEE, or scrap rates can mean thousands of dollars per day. IQMS customer Plastic Components Inc. has detailed their costs to the point of knowing exactly how much profit they make - on every product they make - and conversely how much it costs for every piece of scrap they make. This information is published to the employees so that they can know and take ownership of exactly how much it costs when they make bad product. So instead of saying "this scrap is costing us money" they go to the chart and say this scrap cost us "x" number of dollars and we have to make "y" number of extra product to just break even. This type of accuracy is not only something that their employees understand but provides a more tangible target for success.

The PCI example is just one example of how a company can define their business metrics. The first step in the process is to determine which metrics are important to you as a manufacturer. Companies usually know what they want to measure already and most ERP software companies will have published sets of key performance indicators (KPIs) that you can use to select the most important metrics for your business.

Once you have selected the metrics you want to measure for your business, you need to set your benchmarks of where you are today.  Unfortunately, in many cases the data may not be readily available in most ERP systems and therefore it becomes cumbersome and time consuming to gather the data.   If you have an ERP system with the built in KPIs the process becomes simpler than if you have to gather the data from spreadsheets or other sources within your operations. 

The next step is to make the objectives and results available to your team. In the case of PCI they published the metrics on bulletin boards on the shop floor so all their employees can see how well they are doing against their goals and how their contributions are affecting the bottom line of the company. Once your employees can see how their efforts make a difference within the company and the rewards of profitability - whether they are job security or performance bonuses - then you have truly achieved the goal of measuring for improvement.

For more information on PCI, please review their case study.

Why "Just Okay" Shouldn't Apply To ERP Software

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We have all done it.  We've all said something was "good enough."  It isn't great, it isn't bad; it's just okay.  Whether it is your house, your car, your job, etc.... we often find that settling for things is easier than pursuing another option.  And we are right, it is often easier.  But is it the best way to go about evaluation and decision making.  No it isn't.

The same holds true with ERP software.  When asked, leaders of many manufacturing companies I recently talked with tell me that their ERP software is "just okay."  They know that it doesn't meet a majority of their needs but they aren't compelled enough to change.  The reasons vary as infinitely as the companies themselves.  For some, not changing is due to cash flow - or lack there of.  For others, business is slowing down and committing to a new ERP system isn't a top priority.  For a different group, the opposite is true; business is picking up speed again and now there is no time to put effort into a change.  Still others feel the pain from their last ERP implementation many years ago and assume that doing nothing is simply easier than changing.

Whatever your reason is to settle for "just okay" think of this:  in other aspects of your manufacturing facility is settling an option?  If product rolled off your machines, conveyors, or assembly tables that was obviously flawed, would you still send them to your client?  If an employee was consistently late or offered little value would you still employ them?  The truth is we put more stock in the quality of our products and employees than we do in investing in the proper tools to assist in the process.  ERP is one of those important tools that is often neglected and it shouldn't be.

ERP systems should make the job of running a manufacturing company easier by accurately meeting your business process and manufacturing needs. Your ERP system should allow you to do more with less! It should help identify areas within your processes where time and money can be saved.  It should increase communication across all departments within the company.  A great ERP should also automate information obtained from the shop floor and eliminate redundant data entry. 

But it is more than just basic ERP functionality.  An ERP system should also be able to provide relevant information to its users in a timely manner, with valid data.  If a facility manager can't get information like "total down time and its main reason for the last 30 days" or "most profitable and least profitable produced part  - based on actual costing  - within the last 2 weeks" then the ERP system isn't doing enough for you.  Your ERP system should tell you when tools/dies/machines are up for maintenance based on actual usage before they require repair, rather than after they fail.  A good ERP system should be an enhancement to the manufacturing process, not a hindrance.   By obtaining valuable and accurate information in a timely manner, ERP should help manufacturers produce better product because it identifies areas of improvement or success. 

So, I invite you to take a few minutes and think about how your ERP system is helping your company and how it might help your become more competitive.  Evaluate your ERP and ask is it "good enough" and then decide to demand great!

Want more information on how a great ERP can help your facility?  Download our whitepaper "How The Small Get Mighty"

 

Four Steps to Pain Free Lot Traceability in Manufacturing

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We've all read how a popular automaker has been under fire recently for their quality problems.  I can just imagine how devastating it must be to find out that a product  you've been shipping for years is subject to a recall for a quality defect.  The first step in damage control would be to completely understand the underlying cause of the problem.  Many times the fault lies in one of the raw materials used to manufacture the product.  In that case, strong lot tracing functionality can be the difference between recalling millions vs. recalling thousands or less. In order for lot traceability to be cost effective it should be built into the normal workflow of the manufacturing process. 
 
The first step begins when the raw materials are purchased and received.   At that time the vendor lot number of the container of material is communicated to your ERP system.   This communication can take many forms such as a vendor supplied advance shipping notice (EDI ASN), bar coded labels or packing slips.  However it's done the lot number must follow the raw material until it is consumed by the next level product.   Many times an agreement can be made with the vendor to supply customer defined labeling for serialized control that can be sent electronically via EDI to the ERP system.  This method eliminates the cost and accuracy issues of relabeling while converting foreign vendor labels to ERP native serialized labels.  Business rules for manual receipts include being able to setup mandatory lot number entry before the transaction is allowed to go through.
 
The second step is to rely on the inventory control system to keep the material container lot numbers separated from each other.  This separation must be built into the system and cause minimal  burden to the user.  As an example, a warehouse inventory location can contain many lots of the same material but they all need to be listed by FIFO and accessible for allocation or back flushing individually. 
 
The third step is to have the system generate and assign a manufacturing (FG) lot number to the products being produced in real time.  All levels of products including sub assemblies will be assigned FG lot numbers during production.  Typically the generation of a new FG lot number happens when an event takes place.  Events are things like starting a new raw material lot number, machine restarts or even operator changes.  As a rule, the more often FG lot numbers are changed the more granular the lot traceability will be making it easier to pinpoint critical information.
 
The fourth step occurs during production reporting via hand scanners, touch screens, automated conveyors, pallet wrappers or input screens.  The result of the reporting is a "balanced" inventory transaction.  A balanced transaction includes adding the parts that were manufactured and relieving the raw material used to make them.  As the transactions are applied to the perpetual inventory they are logged in the transaction log.  All inventory transactions are logged.  No exception.  The transaction log is the key to lot number traceability.  It contains all kinds of information about the transactions including both FG lot number and raw material lot number fields.   This creates the ability to query the transaction log to cross reference lot number "trees".

Incorporating these 4 steps during the normal production reporting and inventory transaction process will provide bullet proof pain free lot traceability.

To download product datasheets on various capabilities mentioned, click here.

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