Category Archives: white paper

Dealing with Difficult Traceability? ‘Invest or Spend’ Analysis

In modern times, it’s difficult to find a bakery or food production facility which hasn’t already invested financially in some kind of traceability process (to enable the tracking and tracing of ingredients used within their processes). However, do any methods provide a return on investment (ROI)? Is it worth investing in additional administration to setup a paper trail? Should you gamble and wait to see what other companies are doing first? Is there technology available to provide seamless traceability and also prevent unaccountable ingredient losses in the production process? Matrix Controls LLC investigates the 3 possibilities and analyzes each of them in addition to their associated cost benefit.

It’s a given that in most cases, once ingredients are received into a food manufacturing facility, ingredient traceability takes four routes through a manufacturing process;

1. Bulk Ingredients (delivered to a mixer directly through bulk delivery systems).

2. Minor Ingredients (manually added to the mixer in the form of whole or part bags).

3. Micro Ingredients (hand scaled and added to the mixer manually).

4. Topping Ingredients (added post mixing to the divided and portioned batch).

How easy is it to track a finished product back through to a manufactured batch, through the bulk, minor and micro ingredient control systems and then back to the supplier? Many systems offer part control of these processes and then still rely on a manual transfer of data through hand written records to form a paper trail.

Given that the FDA (America), Regulation EC/178/2002 (Europe) and many other standards around the world and some of the major retailers provide timeframes for ingredient recall of anything from 2 days to 4 hours and downward, is it really possible to track and trace ingredients through these stages of delivery when a single micro ingredient such as an enzyme could be weighed into literally hundreds of formulations and batches across many weeks of production and be present in possibly millions of finished products? Definitely a food recall nightmare for the unprepared.

So, where’s the opportunity? Matrix Controls LLC explores 3 common options and the pros and cons of each.

Option One – Do the minimum.

Doing the minimum requires compliance with many regulations; involving simple record keeping of goods received and shipped finished goods. A manual process of paper records can achieve this, but you need to keep records from anything from 6 months through to 2 years, depending on the category of your goods sold.

However, in the event of a recall of a raw ingredient such as salt, if you don’t keep track of ‘when and where used’ then you have virtually no way of knowing who it was shipped to. The only way to cope with this situation of recalling entire days, weeks or possibly months of production costing potentially vast sums of money and huge brand damage.

In commercial baking plants, it’s not unheard of for companies to be recalling thousands of finished products in a desperate attempt to keep their business reputation, but it may be too late… Having no idea about where you used your ingredients is now a very high risk strategy and the return on investment from setting up a paper system and administration is definitely non-existing.

Verdict – Non-existent ROI, High Risk to Brand and Shareholder Value

Option Two – Spend heavily on manual record keeping.

Taking the regulations one stage further and investing in more paper trails to keep track of ‘where used’ in the production facility is the common approach to satisfying retailers looking for damage limitation during the ingredient or finished product recall process. Manually recording ‘where used’ is often done by making operators complete paperwork to record which lot numbers have been used in each batch……

This administration allows a recall to be batch specific, limiting the recall times and providing the manufacturer with an opportunity to trace back where an ingredient has been used and more importantly, where and who it was distributed to.

However, the cost of implementing this administration is fixed and reoccurring. Having teams of administrators filling in data is expensive, complicated, time consuming and problematic and makes powerful retailers and auditors squirm due to the opportunity for human error during the manual data recording process.

On top of this, being able to track the usage of an ingredient which has been used within hundreds of batches can involve many administrators and QA staff searching through hundreds or even thousands of batches to see if the ingredient had been used at all.

To counter this searching process, many companies are making their administrators and QA employees manually enter data into an ERP / MRP System. This vastly reduces the recall times and makes retailers feel more comfortable. Why are they doing this? Because ERP runs blind – assuming everything is running to 100% accuracy.

So, after the cost of ERP / MRP (purchase & implementation) and the QA Staff required to manage the process and manually record the data, organizations can be running into hundreds of thousands or even millions of investment capital of annually reoccurring costs. This has a direct impact on profitability and absolutely no ROI, presenting a competitive risk.

Verdict – Non-existent ROI, Low Risk to Brand, High Risk to Shareholder Value (increased permanent costs)

Option Three – Invest Moderately in ‘Real Time’ Data Collection Systems

Taking the needs of compliance and legislation, the demands on the retailers to reduce recall times and also the desire to keep administration costs low requires some ‘out of the box’ thinking. It also requires management teams who have the strength and willingness to lead change and embrace technology.

These leaders are often found in senior Technical or QA functions in the world’s most successful commercial baking companies. But they haven’t got there through investing in technology unwisely; more investing in the right technology which produces fast ROI’s to make their companies appealing to Retailers & Shareholders.

So, having established that paper trails do the job, but are costly and deliver no ROI, how should you invest in solving the problem? The answer to that question is to invest moderately in data collection.

Matrix Controls LLC has developed a system called ‘Vantage’ Traceability. It’s a system which places the necessary controls on the production floor to capture and control inventory lot numbers and ingredient usage from actual production floor events.

Vantage ensures lot numbers are captured at the receiving, weighing, mixing, portioning and shipping stages eliminating all paperwork and administration. Usages at the bulk, minor and micro ingredient levels are recorded automatically as lot numbers are added into the mix (even controlling the weights added through the hand scaling processes to reduce waste).

Real-time data collection systems ensure lot numbers are captured at the receiving, weighing, mixing, portioning and shipping stages eliminating all paperwork and manual ERP administration. Usages at the bulk, minor and micro ingredient levels can be recorded automatically as lot numbers are added into the mix (even controlling the weights added through the hand scaling processes to reduce giveaway in addition to correct inventory rotation).

So, Question – where’s the ROI? Answer – It comes in 5 key areas.

By controlling the micro ingredient scaling process enables exact weight to be hit and their lot numbers automatically recorded. Integration with ERP / MRP means no manual data recording and usages can automatically drive down inventory (perpetual inventory system) to provide real visibility and enable accurate, prudent ingredient purchasing.

Interfacing with bulk delivery systems enables lot number usages to be accurately tied to micro and minor ingredients added at the mixing process. This control allows for ‘complete’ batch traceability without costly administration and manual ERP / MRP updates.

Electronically interfacing with sales order processing allows manufactured batches to be linked to a finished product count (on the production floor) and the batch numbers allocated during the shipping process. This allows shipped products to have a direct relationship with the manufactured batch and ingredient used.

No recall administration! Vantage eliminates manual handling of ingredient data to have a direct financial impact on your bottom line profitability by significantly reducing the hours spent on ingredient traceability administration.

Brand protection. Having the tightest possible traceability means you can respond to recalls and pull your products in literally minutes. Over and above the retailers traceability requirements.

Verdict – 6 month ROI, Low Risk to Brand, Low Risk to Shareholder Value.

MES – Manufacturing Execution Systems Software

Improve product quality while driving down costs, with Matrix Controls Manufacturing Execution System (MES) Software. Integrated with most ERP business processes, Matrix Controls creates the ideal conditions for high-quality and efficient manufacturing, increased reliability, and full production floor product traceability.

What is Manufacturing Execution System Software?

Manufacturing Execution Systems (MES) are computerized systems (touch screens, scales, loadcells, bar-code scanners, probes, label printers etc) used in manufacturing. MES can provide the right information at the right time and show the manufacturing decision maker “how the current conditions on the plant floor can be optimized to improve production output. MES work in real time to enable the controlof multiple elements of the production process (e.g. inputs, personnel, machines and support services).

MES might operate across multiple function areas, for example: management of product definitions across the product life-cycle, resource scheduling, order execution and shipping, production analysis for Overall Equipment Effectiveness (OEE), and materials track and trace.

The idea of MES might be seen as an intermediate step between, on the one hand, an Enterprise Resource Planning (ERP) system, and a Supervisory Control and Data Acquisition (SCADA) or process control system on the other; although historically, exact boundaries have fluctuated.

Now more than ever, manufacturing excellence depends on streamlining operations on the plant floor and throughout the supply chain. However, traditional Manufacturing Execution Systems tends to focus mainly on the plant floor, with minimal integration beyond the four walls.

Today, manufacturers must transform their operations by automating, executing and managing the performance of global business processes across their value chain. This means end-to-end integration of processes spanning supply chain, production, maintenance, distribution, quality and labor operations – regardless of where these facilities and operations are physically located.

About Matrix Controls Manufacturing Execution System Software

Matrix Controls is manufacturing software that delivers MES capabilities, which when combined with other Matrix Controls production floor applications, offers a far more expanded solution than a traditional Manufacturing Execution System. By taking an enterprise approach, Matrix Controls applications work like an IT platform to reach across the various processes of manufacturing at each of your locations, which offers unified integration and collaboration with your product supply network.

Leveraging Matrix Controls as a global manufacturing execution system allows you to:

Manage all of the various interdependencies and establish a collaborative production management ecosystem while providing an enterprise-wide system of record
Provide a “single version of the truth” that enables a synchronized and highly coordinated flow of information – eliminating traditional stand alone “silos” of data and processes – for tighter visibility and control over disparate manufacturing processes

  • Enable paperless manufacturing that delivers mistake free work instructions throughout the extended production process for rapid responsiveness and consistent deployment of processes
  • Empower manufacturers to meet their goals for reducing waste, inventory, and cycle times while improving efficiency, quality and customer satisfaction
    Deliver accurate information to the right people at the right time to make better decisions about every aspect of manufacturing, including advanced planning, production capacity analysis, Work-In-Progress, inventory turns and standard lead times
  • Offer a true foundation for an enterprise approach to quality, continuous improvement initiatives and compliance, helping you to achieve manufacturing excellence that is consistently executed and delivered

For more information about Matrix Controls Manufacturing Execution System (MES) Software, please contact Matrix Controls

Traceability for Sausage Manufacturing

Traceability is critical in the North American sausage manufacturing marketplace.  Retailers expect accurate, less paper based traceability and consumers have matured to expect robust systems for tracking and tracing ingredients through the manufacturing and rework process.  As more rigorous traceability requirements are mandated by Regulatory Bodies (FDA, USDA) to further elevate food safety controls (FSMA and Title III of the Biot)…..  Food Safety Standards Owners (GFSIBRCSQF, FSSC22000) and Certification Bodies (NSF, SGS, AIB, etc.) are/ have incorporated these more exacting traceability requirements.

This white paper explains how advancements in technology allow Surgical Traceability for Sausage Manufacturers to assist in recalls.  Recalls that exceeds ‘one up, one down’ traceability and provide visibility throughout the entire sausage manufacturing process – from the receiving of raw materials to the shipping of the finished product.

Contents

1  Inventory Management

1a  Receiving
1b  QA Questions
1c  Relocation/Adjustments

2  Production & Scheduling

2a  Scheduling
2b  Recipe Formulation
2c  Batching
2d  Collation
2e  Rework

3  Finished Product Creation

4  Sales Order Processing & Shipping

5  Tracking & Tracing

The networked traceability solution communicates in real-time to ensure accurate traceability information is available on demand, without unnecessary delays.

Surgical Traceability for Sausage Manufacturers – The Solution

The Matrix Controls’ solution is a unique combination of software and hardware designed to bridge the gap between the management level and the shop floor operations (See Matrix Controls modules Receiving, Spice Weighing, Meat Weighing, Collation, Finished Product Labeling and Sales Order Fulfillment).

1 – Inventory Management

1a Receiving

Effective and complete traceability begins at the Receiving Dock.   Each raw material that is received into the system (pallet or case level) will be identified with a unique internal lot code using a Desktop or Mobile PC. Receive the inventory by selecting (from a drop down menu) a Supplier and the Inventory Item (This information can also be imported from your existing ERP/Accounting Software – see ERP Integration).  Enter any variable information such as Supplier Lot Number, expiration date and quantity received.  A printed label will be placed on the received product and the inventory levels will be updated in real-time.

1b Q/A Questions

Mandatory QA questions can be commodity specific or can be more broadly based.  The responses of the receiving clerk will be captured and provided in a report for future reference.  Questions include information related to Supplier, COA, Allergen, Driver and Vehicle Inspection.

1c Relocation/Adjustments

Periodically, the need to move stock from one internal location to another will arise.  By simply scanning the lot code, choose the new location and print labels as required.  The same is true for any inventory adjustments that are made.  Additionally, by listing a reason why the move/adjustment was made, the management team can immediately know why the action took place, as well as who the operator was and when it occurred.

2 Production & Scheduling

2a Scheduling

A powerful scheduling tool allows the user to expeditiously schedule all of the related sub-mix components of a master recipe – in one single step.  The streamlined process will also allow the user to schedule the number of required batches (of the master recipe) and then systematically push the various sub-mix recipes to each of the respective production area terminals at which they’re produced.  For example, the seasoning blend recipes are only viewed and batched at the workstation that is located in the Seasoning Area.  Or, for a more efficient process, you can automatically import the Production Schedule from the ERP/Accounting Software (see ERP Interface page).  Some of the key importing data would consist of Job Number, Production Location, Number of Batches, Status and also the BOMs with the respective Target Weights and Tolerances.

2b Recipe Formulation

The system allows management personnel to enter and determine the exact recipe characteristics, including individual ingredient tolerances and how the products are added.  For instance, recipes may be a mixture of weighed spices and bulky meat based ingredients – both of which are weighed to tight tolerances (enforced by the system) to produce a consistent taste and texture to the sausage.

2c Batching

By placing a recipe control system in each of the batching areas, you’re able to ensure that each recipe is batched up correctly.  The system ensures each weighed ingredient has enforced +/- tolerances, preventing recipe completion until all ingredients are weighed within the specs.  The system will ensure that your inventory is rotated correctly by applying FEFO/FIFO rules, as well as provide real-time inventory usage and eliminate costly manual traceability paperwork.

2d Collaton

A collation terminal and barcode scanner is positioned at the mixer and is used to combine the seasoning blend (batch #123) with the 90% pork & 10% beef meat recipe (batch #456).  It will validate that the correct sub-mix recipes are being used, as well as ensure that they have not expired.  Prior to the collated meat/seasoning mixture being stuffed into the casings, the user will select the respective lot number of the casings for traceability purposes.  At this point, a new batch number is created (batch #789) and the inventory has been updated in real-time.  Thereafter, the stuffed casings can be placed on the racks and then moved to the smoker.

2e Rework

The process of adding rework can be conveniently managed at the production floor terminal by simply receiving the rework into the inventory.  Once the rework has been received and labeled, it can be consumed AND tracked with reference back to the original batch that was used to create the rework.

3 Finished Product

Once the final product has been cooked and packaged, the finished boxed product is weighed to ensure weight tolerances are adhered to (if required) and then labeled.  The system can capture both fixed and catch weight-based products and ultimately allow for the finished product inventory to be  updated and provide real-time visibility of exactly how many finished products have been produced.  The inventory of the corresponding packaging items is also updated within the Management Database.

The meat traceability label format is specific to the needs of your customers.  The label can include Company Logos, Certifications

Logos (USDA, Go Texan, etc.), Product Name & Description and Dates (Production and Expiration).  The label also contains a barcode which is compliant with Global Standards (GS1) and is formatted to include the GS128 barcode.  The barcode contains GTIN (Global Trade Identification Number), Lot and Batch Number, SKU (Finished Product Code), Weight Data plus other data which the client may require.

4 Sales Order Processing & Shipping

Sales Orders can be manually entered into the centralized Management Database software.  Thereafter, by using a mobile handheld computer, operators can easily select the sales order, allocate the finished product by scanning the Finished Product case label that includes the GS128 barcode, and complete the order.  The process allows the orders to be processed faster and the traceability to be verified.  If you would prefer a more efficient process, we can import the Sales Orders via our Integration Services Software.  The imported Sales Order information can consist of the Sales Order Number, Customer, Products Ordered with Quantity and any Delivery Notes.  The sales order details will then be sent back to the ERP/Accounting Software – where the invoice will be generated (see ERP Interface page).

A 4×6 Hybrid Pallet Tag can also be provided to clients that have palletized shipments.  The SSCC Label (Serial Shipping Container Code) provides an accurate and simple method for producers to ship merchandise and relate the product type (GTIN), quantities and lot numbers to the receiver, via a single GS1 Bar-code.

5 Tracking and Tracing

All of the aforementioned processes communicate with a central server which validates and stores traceability information relating to production, inventory, operators, locations, formulations and sales orders. The Surgical Traceability for Sausage Manufacturers server has a reporting tool to allow supplier lot number led recalls to be tracked through to the finished product and to the respective customer, inclusive of rework and batching stages.

Can Matrix Controls help you?

Yes, we have some great data and experience to determine if you should invest in Surgical Traceability for Sausage Manufacturers now, or if you should wait to see how the market develops first.  We have the equipment (hardware and software) to enable you to meet item, case and pallet traceability needs, but perhaps you should talk to us first to see which traceability option is practical and prudent for your business.

Traceability – The Rising Challenge for Bakers

The history of bread baking can be traced back to the stone age period at least 30,000 years ago.  The Roman Empire is credited with creating the earliest known commercial baking processes in 300 BC.  To be a baker was an important job and a highly respected and artistic profession.  This still holds true today, however, with regulators and auditors constantly tightening traceability requirements, the profession has taken on a larger and more critical role in society.

Constant media exposure of high-profile product recalls increases consumer awareness and brings the importance of traceability to the front line – this in turn has played a part in big box stores like Wal-Mart, Safeway, and Costco.  QSRs (Quick Service Restaurants) like McDonald’s, Burger King, and Wendy’s are mandating that suppliers have effective traceability solutions in place for all commodities and packaging items.

This white paper explains how advancements in technology allow many kinds of bakeries (Commercial, Wholesale, Retail, Artisan, etc.) to accurately avoid ‘pull everything’ recalls.  Recalls can exceed ‘one up, one down’ traceability and provide visibility throughout the entire baking process – from the receiving of raw materials to the shipping of the finished product.

Traceability for Bakeries – The Solution

The Matrix Controls’ solution is a unique combination of software and hardware designed to bridge the gap between the management level and the shop floor operations that consist of numerous processes.  The modular solution can be used to address a number of different processes, including Receiving of Raw Materials, Pre-Scaling of Minor Ingredients, Tracking of Bulk Ingredients and Toppings, Finished Product Labeling, and Sales Order Fulfillment.

The networked traceability solution communicates in real-time to ensure accurate traceability information is available on demand, without unnecessary delays.

Stages

1. Inventory Management

a. Receiving

b.QA Questions

C. Relocation/Adjustments

2. Production

a. Scheduling

b. Recipe Formulation

c. Batching

d. Bulk Ingredients

e. Rework Finished Product

D. Shipping

E. Tracking

Inventory Management

Receiving

Traceability begins at the Receiving Dock with each raw material being received into the system (pallet or case level) and identified with a unique internal lot code using a Desktop or Mobile PC. Receive the inventory by selecting (from a drop down menu) a Supplier and the Inventory Item (This information can also be imported from your existing ERP/Accounting Software).  Enter any variable information such as Supplier Lot Number, expiration date and quantity received.  Thereafter a barcoded label will be printed and can be placed on the received product and the inventory levels will be updated in real-time.  Bulk ingredients can also be received with the specific silo or tank being referenced within the system.

QA Questions

Commodity specific or broadly based QA questions can be answered by the receiving clerk.  The responses will be captured and provided in a report for future reference.  Questions include information related to Supplier, COA, Allergen, Driver, Seal Number and Vehicle Inspection.

Relocation/Adjustments

From time to time, the need to relocate stock from one internal location to another will be required.  This can be done by simply scanning the lot code, choose the new location and print labels as required.  Inventory adjustments will be processed with the same process.  You can also list a reason why the move/adjustment was made, allowing the management team to know why the action took place, as well as who the operator was and when it occurred.

Production

Scheduling

The scheduling software allows the user to quickly schedule all of the related sub-mix components of a master recipe – in one single step.  The streamlined process will also allow the user to schedule the number of required batches (of the master recipe) and then systematically push the various sub-mix recipes to each of the respective production area terminals at which they’re produced.  For example, the sub-mix batching recipes are only viewed and batched at the workstation(s) that is located in the Pre-Scaling Area.  For a more efficient process, you can automatically import the Production Schedule from your existing ERP/Accounting Software.  Some key importing data consist of Job Number, Production Location, Number of Batches, Status, and also the BOMs with the respective Target Weights and Tolerances.

Recipe Formulation

The system allows management personnel to enter and determine the exact recipe characteristics, including individual ingredient tolerances and how the products are added.  For instance, recipes can be a combination of sub-mixes and bulk ingredients – both of which are controlled by tight tolerances (enforced by the system) to produce a consistent product.

Batching

By placing a recipe control system in each of the batching areas, you’re able to ensure that each recipe is batched up correctly.  The system ensures that each weighed ingredient has enforced +/- tolerances, preventing recipe completion until all ingredients are weighed within the specs.   Whole bags and tablets can also be accounted for at the batching station.  The system will ensure that your inventory is rotated correctly by applying FEFO/FIFO rules, as well as provide real-time inventory usage and eliminate costly manual traceability paperwork. Once completed, a sub-mix batch label will be generated with reference to the batch number, sub-mix recipe description/code and expiration date.  The batch label also includes a barcode that will be scanned at the mixer.

Bulk Ingredient

The Mixer terminal will allow for bulk ingredients (flour, oil, sugar, water, yeast, etc.) to be prompted for via PLC integration (such as Allen Bradley and Symax).  At the same time their respective location (silos and tanks) can be chosen.  The PLC integration will allow the SG Database to record inventory usage.  After the bulk ingredients have been dispensed, the sub-mix batch label is scanned and confirmed as being a requirement of the recipe.  After each ingredient step is complete, the inventory is deducted to provide Management with real-time visibility of the inventory.

Rework

The process of adding rework can conveniently be managed at the production floor terminal by simply receiving the rework into the inventory.  Once the rework has been received, it can now be consumed AND tracked with reference back to the original batch or production line that was used to create the rework.

Finished Product

A Finished Product terminal will be placed near the end of the production line.  It will allow operators to identify the mixer batch numbers and link them to Finished Product SKUs.  For a more automated process, Run Time software can also be used to allow the user to link multiple batches a Finished Product SKU. The Run Time software will link the dough running to the Finished Product Batch Number, based upon the run time value that is setup for each dough recipe.  Also, any of the raw materials (toppings, packaging film, labels, etc.) that are introduced post-mixer can be identified and linked to the Finished Product SKU. Thereafter, a Finished Product Case Label is generated and the inventory of the corresponding SKU is updated within the Management Database.

The Finished Product Case Label is designed to meet the specific needs of your customers.  The label can include Company Logos, Certifications Logos, Product Name & Description and Dates (Production and Expiration).  The label also contains a barcode which is compliant with Global Standards (GS1) and is formatted to include the GS128 barcode.  The barcode contains GTIN (Global Trade Identification Number), Lot and Batch Number, SKU (Finished Product Code), Weight Data plus other data which the client may require.

Sales Order Processing & Shipping

Sales Orders can be manually entered into the centralized Management Database software.  By using a mobile handheld computer in the shipping area, operators can easily select the sales order, allocate the finished product by scanning the Finished Product case label that includes the GS128 barcode, and the order is now complete. The process allows orders to be processed faster – without the hassle of paperwork – and the traceability is verified.  If you would prefer a more efficient process, we can import the Sales Orders via our Integration Services Software.  The imported Sales Order information can consist of the Sales Order Number, Customer, Products Ordered with Quantity and any Delivery Notes.  The sales order details will then be sent back to the ERP/Accounting Software – where the invoice will be generated.

A 4”x 6” Hybrid Pallet Tag can also be provided to clients that have palletized shipments.  The SSCC Label (Serial Shipping Container Code) provides an accurate and simple method for producers to ship merchandise and relate the product type (GTIN), quantities and lot numbers to the receiver, via a single GS1 Barcode.

Tracking and Tracing

All of the aforementioned processes communicate with a central server which validates and stores traceability information relating to production, inventory, operators, locations, formulations and sales orders. The server has a reporting tool to allow supplier lot number led recalls to be tracked through to the finished product and to the respective customer.

Can Matrix Controls help you?

Yes, we have some great data and experience to determine if you should invest in traceability now, or if you should wait to see how the market develops first.  We have the equipment (hardware and software) to enable you to meet item, case and pallet traceability needs, but perhaps you should talk to us first to see which traceability option is practical and prudent for your business.

For more information, visit www.sgsystemsusa.com or contact our corporate office on (214) 819-9570