{"id":5309,"date":"2020-04-28T08:54:32","date_gmt":"2020-04-28T08:54:32","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=5309"},"modified":"2022-12-21T08:27:53","modified_gmt":"2022-12-21T08:27:53","slug":"why-food-manufacturing-is-hard-and-how-mrp-system-helps","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/why-food-manufacturing-is-hard-and-how-mrp-system-helps\/","title":{"rendered":"Why Food Manufacturing is Hard and How MRP System Helps"},"content":{"rendered":"\n<p>For a food manufacturing business, many requirements must be met, which can vary depending on the type of food you make, the facilities that you use, and the market you operate in.<\/p>\n\n\n\n<!--more-->\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><a href=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/04\/Comics_food-manufacturing.jpg\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"349\" height=\"1024\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/04\/Comics_food-manufacturing_5text_800px-349x1024.jpg\" alt=\"food manufacturing software\" class=\"wp-image-5325\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/04\/Comics_food-manufacturing_5text_800px-349x1024.jpg 349w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/04\/Comics_food-manufacturing_5text_800px-102x300.jpg 102w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/04\/Comics_food-manufacturing_5text_800px-768x2251.jpg 768w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/04\/Comics_food-manufacturing_5text_800px.jpg 800w\" sizes=\"auto, (max-width: 349px) 100vw, 349px\" \/><\/a><\/figure><\/div>\n\n\n\n<p><em>You can also listen to this article:<\/em><\/p>\n\n\n\n<iframe loading=\"lazy\" title=\"Why Food Manufacturing is Hard and How MRP System Helps?\" height=\"122\" width=\"100%\" style=\"border: none;\" scrolling=\"no\" data-name=\"pb-iframe-player\" src=\"https:\/\/www.podbean.com\/media\/player\/yy7f8-e1bb2f?from=pb6admin&amp;download=1&amp;version=1&amp;auto=0&amp;share=1&amp;download=1&amp;rtl=0&amp;fonts=Helvetica&amp;skin=1&amp;pfauth=&amp;btn-skin=103\"><\/iframe>\n\n\n\n<h2 class=\"wp-block-heading\">1. All actions documented<\/h2>\n\n\n\n<p>Whether you receive some materials with a Purchase Order, move them in stock, consume them in a production run, or ship some products to customers, all these actions get documented in an <a rel=\"noreferrer noopener\" aria-label=\"MRP (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/material-requirements-planning\/\" target=\"_blank\">MRP<\/a>\/<a href=\"https:\/\/www.mrpeasy.com\/enterprise-resource-planning\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"ERP (opens in a new tab)\">ERP<\/a> system.<\/p>\n\n\n\n<p>Additionally,\nimportant information like the vendor, person who handled the goods or\nperformed an operation, the date, time, and quantity, even batch numbers and\ncertificates can be recorded in a single system<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2. Batch traceability forward and backward<\/h2>\n\n\n\n<p>Keeping track of each\ningredient and component is a daily exercise in a food manufacturing business.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>For each ingredient, you need to know where and when did you receive it, what is its batch number, and other properties. <\/li><li>You must document exactly which products, by their batch number, a specific batch of ingredients were used in. <\/li><li>Plus, keep records from which batch a customer received the products from.<\/li><\/ul>\n\n\n\n<p>When there is an issue with a product, the <a href=\"https:\/\/www.mrpeasy.com\/mrp-system\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"MRP system (opens in a new tab)\">MRP system<\/a> easily lets you trace the problem backward from a specific customer complaint to a specific production run, and even specific ingredients. <\/p>\n\n\n\n<p>When an issue is\ndiscovered with a component, in an MRP system, it is possible to easily trace\nit forward, which products are affected and which customers received them.<\/p>\n\n\n\n<p>Doing the exercise manually, on paper slips and in spreadsheets, is a gruesome task. However, when using a specific system designed especially for it, this will quickly become a simple task performed second-nature.<\/p>\n\n\n\n<p><em>Here is an article about <a href=\"https:\/\/www.mrpeasy.com\/blog\/how-to-go-from-excel-to-manufacturing-software-mrp-system\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"How to Go From Excel to Manufacturing Software \/ MRP System (opens in a new tab)\">How to Go From Excel to Manufacturing Software \/ MRP System<\/a>.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>3. Fulfillment of FDA requirements<\/strong><\/h2>\n\n\n\n<p>For a food\nmanufacturing business, many requirements must be met, which can vary depending\non the type of food you make, the facilities that you use, and the market you\noperate in.<\/p>\n\n\n\n<p>An MRP system can be a\nuseful tool to help meet such requirements, especially when considering the\nprevious two points, proper documentation of actions and batch traceability,\nwhich are important requirements to meet.<\/p>\n\n\n\n<p>When an auditor walks\nin, it is great to just open the system and easily pull up the full chain of\nevents that has happened to some specific product, where its ingredients were\nsourced from, and other important information. <\/p>\n\n\n\n<p>This not only saves a\nlot of time and gives a great impression when compared to going through a paper-\nor spreadsheet-based system, but additionally, such MRP systems themselves are\nmore fool-proof. It is more difficult, more unlikely, to lose or forget some\nimportant bit of information by mistake.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">4. Expiry date following, FEFO, shelf life<\/h2>\n\n\n\n<p>Together with batch\ntracking, in food manufacturing, it is necessary to know when some items are\ndue to expire.<\/p>\n\n\n\n<p>An MRP system can automatically track the expiry dates. According to the First Expired, First Out (FEFO) principle, it can automatically recommend in which order specific ingredients and components should be used in food manufacturing. And in which order should products be shipped to customers.<\/p>\n\n\n\n<p>For example, it can\neven tell the worker to pick some specific items from a specific batch at a\nspecific inventory storage location, which is a great time-saver.<\/p>\n\n\n\n<p>For products\nmanufactured, such a system can automatically track and calculate the shelf\nlife of a manufactured product, which is a simple task, but very mundane and\nrepetitive, and a simple chore to automate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">5. Order fulfillment just in time<\/h2>\n\n\n\n<p>Many manufacturing companies strive to be as lean as possible. One component in lean methodology is just-in-time manufacturing, which means that every action is done as late as possible, so there would be minimal waiting time at any point during the whole production and delivery process.<\/p>\n\n\n\n<p>This, on one hand, allows for minimizing inventory levels. On the other hand, a bonus that just-in-time delivery brings for food manufacturing is that shipped products have more shelf life remaining than if they were made to stock a long time before delivery. <\/p>\n\n\n\n<p>Understandably, this\nis not realistic in every company, but when possible and implemented, it can be\nan important advantage in a competitive market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">6. Capacity utilization and maintenance planning<\/h2>\n\n\n\n<p>\u201cMRP\u201d in the \u201cMRP system\u201d stands for Manufacturing Resource Planning, a term which in short represents materials planning, <a href=\"https:\/\/www.mrpeasy.com\/blog\/what-is-capacity-planning-in-manufacturing-erp\/\">capacity planning<\/a>, and production operations scheduling functionality.<\/p>\n\n\n\n<p>This is the heart of\nan MRP system. The system helps the planner to see workloads farther ahead and\nmore effectively plan the production schedule for maximum efficiency.<\/p>\n\n\n\n<p>Additionally, it is\neasier to prevent unexpected downtime by planning maintenances, which the\nproduction scheduling algorithm can automatically take into consideration, so\nthey would not be forgotten, or \u2013 what is even more typical \u2013 postponed due to\nan unrealistic schedule.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">7. Shop-floor reporting in real-time<\/h2>\n\n\n\n<p>When workers look up\ntheir tasks from a screen on the shop floor, get all their information from\nthere, and report all their tasks, then there will probably be very little\nadditional paperwork for managers or assistants to fill. It can be generated by\nthe system.<\/p>\n\n\n\n<p>This opportunity is a\ngreat and under-estimated time-saver, that saves time for every party \u2013 both\nthe workers and the managers. <\/p>\n\n\n\n<p>Even more, real-time\noverview of current progress allows to react much quicker, ship quicker, or\neven prevent undesirable situations from developing early on.<\/p>\n\n\n\n<p>Manually gathering\nsuch data for analysis and improvement of business processes is arduous and\nextremely time-consuming. Having it automatically gathered during normal\noperations of the company, is an important foundation for continuous\nimprovement. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">8. Costs and stock overview online<\/h2>\n\n\n\n<p>Having a central system for your <a href=\"https:\/\/www.mrpeasy.com\/inventory-management\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"inventory management (opens in a new tab)\">inventory management<\/a> is great. Even better is having it online, which you can access from any device, and share with the whole company.<\/p>\n\n\n\n<p>Wherever you are,\nwhenever you need it, you can pull up current inventory information, check the\ncosts of products, see the expected profit on a newly closed sale, and much\nmore.<\/p>\n\n\n\n<p>During a crisis, like the COVID-19 crisis, this is even more important, as now more often than ever, it is necessary to access data from anywhere, for example, your home. Of course, manufacturing workers cannot stay home, but many businesses choose to have office workers work from home, to mitigate risks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For a food manufacturing business, many requirements must be met, which can vary depending on the type of food you make, the facilities that you use, and the market you operate in.<\/p>\n","protected":false},"author":4,"featured_media":5321,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[92,90,94],"tags":[261,221,262,260,3,40,17],"class_list":["post-5309","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","category-choosing-a-software","category-tips","tag-food-business","tag-food-manufacturing","tag-food-manufacturing-business","tag-food-production","tag-manufacturing","tag-mrp","tag-mrp-system"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - 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