IT in Manufacturing


Keeping track and cutting losses: Part I of III

February 2001 IT in Manufacturing

In the complex world of food processing, disassembling chickens need not only be bad news for the chickens

While MRPII systems are the backbone of today's discrete manufacturing industry, the world of food manufacturing and processing has other needs. Its complexity requires solutions that address the everyday issues of multiple outputs, by-products and recycling in a coordinated way that will support business decisions at all levels.

While the traditional bill of material and routing method has proven to be a productive tool for discrete operations, it has historically fallen short in delivering substantial benefits for process companies. This traditional method has been unable to deliver the flexibility and depth of function mandated by the unique business requirements of the process environment. Over the past three decades hundreds of process companies, and companies with process operations, have tried to implement traditional MRP systems, have spent millions of dollars on modifications and have met with little success.

Food processing companies must manage several complicated planning, production, inventory, reporting and costing issues as part of their daily operations. These include:

1. Managing batches of output.

2. Managing multiple outputs.

3. Controlling recycled material.

4. Managing all resources including material, substitutions, labour, equipment and energy.

5. Accommodating multiple formulations and production methods.

"One way of doing this," says Ian Huntly, Business Development Manager at Futuristix-Wonderware, "is to have a production model that can accurately depict (and track) the realities of production in continuous and batch processes. This includes combining formula or recipe requirements with operational realtime information such as available from Wonderware's FactorySuite range of solutions."

Figure 1. The production model
Figure 1. The production model

Production models contain a complete definition of all resources required for production. A resource is any element required to run the production process, like material, labour, energy and capacity, or produced by the process, like finished goods, by-products, recycles and waste. By managing all resources, production models more easily accommodate unique process requirements including: formulae and routings that may vary slightly based on the process scheduled, yields that fluctuate with technology uses, recycles, energy, waste, labour and equipment planning as well as co-product and by-product production.

Managing batches of output

Food processing companies typically plan production in relation to batch factors, like the mass of produced product, the number of cases needed, or even the amount of time required to produce a final product. Accurately planning batches of product that feed continuous operations requires an additional level of system control unavailable in traditional systems.

Planning is more complicated in this environment because different batches of the same product may be processed on different lines. Planning must also recognise the batch constraints of the different equipment options. In addition, batch size planning may involve scaling some required resource in linear proportion to the produced item while consuming other resources in a fixed amount per batch. Customer orders may be received in one unit of measure but produced in other units of measure. Each of these issues must be planned, reported and costed accurately to add value within the process operation. The following batch example illustrates the point.

Consider a cookie manufacturer who takes orders for a product in cases but schedules production in 100 kg batches of cookie dough (see Figure 2). Batches of dough are fed into continuously-running ovens.

Figure 2. The cookie manufacturer
Figure 2. The cookie manufacturer

For this manufacturer, an order for 65 cases of cookies might equate to 1,3 batches of dough. Making a third of a batch of dough, however, may be undesirable due to the production constraint of improper mixing action. An effective planning system needs to provide the option of automatically scaling up the production quantity to make a second whole batch, or, if it is feasible to properly mix 1,3 batches may need to mix for as long as two whole batches. At the end of the run, reports need to be produced for kilograms of dough produced during the mix process and for the continuously running ovens that produce cases of finished cookies.

Production models easily accommodate the planning and reporting complexities of batch factors. Each task within the production model can be defined relative to the batch/capacity constraints at that task. Resources consumed at each task can either be consumed in linear proportion to the batch quantity or in a fixed quantity per batch. Requirements in one unit of measure (UOM) automatically translate into the batch unit of measure at the production task level. Production is reported at each task and for the completed production model in the units used by the operations people measuring the production activity at that task. Reporting information, therefore, is more logical to the people interpreting the report.

Managing multiple outputs

"Some processes convert natural resources into multiple outputs including end items, by-products and waste materials," continues Huntly. "Examples of conversion or disassembly operations include meat and poultry processing. Other processes assemble multiple resources to produce multiple outputs including co-products, by-products, waste and graded material. An example of this type of process is a soap manufacturer who produces multiple package sizes of soap on the same production line. The soap manufacturer must also manage crude glycerine and fatty acid outputs that need to be accounted for, disposed of, or recycled. For both types of process companies, managing multiple outputs complicates planning, costing and reporting."

To manage multiple outputs, planners need to schedule co-product production to meet anticipated demand. Planners also need to plan for by-products as well as the disposal of waste and scrap that is placed in inventory. Management needs to be able to proportionally distribute product costs to all types of outputs. In addition, management must be able to easily distribute changes to the cost of input materials to ensure the continued accuracy of product costs. The costing system needs to be able to assign positive or negative costs to by-products and waste. For example, good product outputs need to reflect waste disposal charges. On the other hand, if there is a positive value to the by-product, cost accountants need to be able to credit the production process. Another requirement is for multiple output quantities to be reported against a single production schedule.

Food and beverage companies managing multiple output operations need a straightforward system for master scheduling, planning, costing and reporting. To use traditional systems in this type of an environment mandates workarounds which only serve to multiply planning, scheduling and costing complexities and increase the likelihood that the system will not be used.

"Wonderware's Protean, a component of ProductionSuite, not only has a patented production model as shown above but also caters for inverted bills of materials such as are found in the meat and poultry processing industries," says Huntly. "Understanding the unique requirements of the poultry industry has helped us design manufacturing solutions that model the complex, multistep disassembling operations required for effective process control and management. In addition, our solutions monitor catchweight, by-product and co-product tracking, shelf life and lot/sub-lot control - all of which are of critical importance to the food industry. Wonderware's process industry solutions enable manufacturers to plan and schedule their processes while managing and responding to ever-changing customer demands."

See Part II of III in March issue.

Futuristix

(011) 723 9900

[email protected]

www.futuristix.co.za





Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Sustainable energy management
Siemens South Africa IT in Manufacturing
Utilising its innovative ONE approach technology, Siemens provides complete transparency on resource consumption and offers data-driven optimisation recommendations for sustainable energy management.

Read more...
Paving the way for a carbon-neutral future in South Africa
IT in Manufacturing
At ABB Electrification, we believe the infrastructure of the future must do more than support daily operations, it must anticipate them. We are committed to building intelligent systems that connect and optimise infrastructure across sectors.

Read more...
Africa’s hidden AI advantage
IT in Manufacturing
Through my work implementing AI systems across three continents, I’ve become convinced that Africa’s unique context demands urgent AI adoption. Successful implementation requires local expertise to understand resource constraints as design parameters to create the innovations that make technology truly work under real-world conditions.

Read more...
Siemens Xcelerator empowers space-tech pioneer, Skyroot Aerospace
Siemens South Africa IT in Manufacturing
Siemens Digital Industries Software has announced that Skyroot Aerospace, a leading private space launch service company in India, has adopted Polarion software from the Siemens Xcelerator portfolio to digitally transform its software development processes and enhance efficiency as it aims to accelerate access to space for its customers worldwide.

Read more...
Water is running out, is your ESG strategy ready?
IT in Manufacturing
Water is one of the most critical yet undervalued resources in modern business. Water stewardship asks businesses to understand their water footprint across the entire value chain and to engage with others who share the same water resources.

Read more...
Cybersecurity in 2025: Six trends to watch
Rockwell Automation IT in Manufacturing
Rockwell Automation’s 10th State of Smart Manufacturing report finds that cybersecurity risks are a major, ever-present obstacle, and are now the third-largest impediment to growth in the next 12 months.

Read more...
The state of the smart buildings market in 2025
IT in Manufacturing
Smart buildings are entering a transformative phase, driven by sustainability goals, technological innovation and evolving user expectations. According to ABI Research’s latest whitepaper, the sector is undergoing a strategic overhaul across key areas like retrofitting, energy efficiency, data-driven operations and smart campus development.

Read more...
Digital twin for Bavaria’s National Theatre
Siemens South Africa IT in Manufacturing
Siemens and the Bavarian State Opera are digitalising the acoustics in Bavaria’s National Theatre in Munich, Germany. The result is a digital twin that simulates sound effects, orchestral setups and venue configurations in a realistic 3D acoustic model so that musicians, the director and conductors can assess a concert hall’s acoustics even before the first rehearsal.

Read more...
How AI can help solve South Africa’s water crisis
IT in Manufacturing
Climate change, ageing infrastructure, pollution and unequal access are putting intense pressure on the country’s water systems. A powerful question arises: “Can artificial intelligence help us change course?”

Read more...
Backup has evolved, but has your strategy?
IT in Manufacturing
With cyber threats rising and compliance standards tightening, South African organisations are under growing pressure to revisit their data protection strategies. The era of treating backups as a box-ticking exercise is over.

Read more...









While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd | All Rights Reserved