ERP Manufacturing

Process Manufacturing Systems

Process manufacturing can be defined as the type of manufacturing associated with formulas and manufacturing recipes. The production of process goods usually requires inputs for thermal or chemical conversion, such as heat, time, and pressure. It is not the same as discrete manufacturing - the type of manufacturing that is concerned with bills of material and routing, and where the final product could be once again disassembled to its original, constituent parts. . Process manufacturing is, in fact, frequently characterized by a continuous transformation of a gas, liquid or powder, low product complexity and manufacturing variations, fixed or dedicated facilities, a flat bill of material, and relatively few transactions producing large amounts of bulk product, (as opposed to discrete and countable units) such as cosmetics, pharmaceuticals, paint, gasoline, food and beverage, and chemicals.

As a consequence of this difference between process and discrete manufacturing, Process Manufacturing Systems are designed to uniquely operate within the process manufacturing industry and cannot be interchanged with a manufacturing system used by the discrete manufacturing industry. Process manufacturing systems are designed for the unique needs of process manufacturers that produce formula or recipe-based products. For example, these systems have capabilities for lot tracking, batch control, and shelf life tracking, which will help prevent inventory expirations and spoilage, thereby reducing the risk of recall. A number of Process Manufacturing Systems also feature a formula production management module to develop products, maintain revision control, and calculate yields. These modules are extremely advantageous in the process manufacturing industry because they help improve the planning of order rates, decrease the total cost of quality, and increase product traceability.

Business leaders in charge of process manufacturing plants will still need to make a choice, though. It is possible for these plants to implement a stand-alone MRP system with added accounting, human resource, and Customer Relationship Management modules.  Or, these plants could implement a complete ERP software system.

No matter which Process Manufacturing System is chosen, the selection has to be well thought-out. With even one missing requirement, the system may not perform adequately enough to help increase the bottom line. So, before making a final decision it is recommended a business answer the following questions: Can the system under consideration handle a change of formulas or recipes? Can the system log previous data for future reference? How well does it manage new data inputs? Can the system manage sales order processing? How does it deal with purchase order receiving? And, finally, will the system assist with profitability analysis through automated product costing?

Written by :

Amy Cruz