why an mes system is critical for food and beverage ......why an mes system is critical for food and...

Why an MES System is Critical for Food and Beverage Manufacturers

Sponsored by

Special RepORT

CONTENTS

Wanted: More Muscular Information Systems in Food and Beverage 3

Why an MES System is Critical for Food and Beverage Manufacturers 6

www.FoodProcessing.com-2-

Special RepORT

Wanted: More Muscular Information Systems in Food and BeverageAs food companies upgrade their enterprise software, the opportunity to replace manufacturing systems with a

leaner, less costly software layer beckons.

By Food Processing

p The old joke in food automation is that the most popular software is Excel. Another leg-slapper main-tains MES is short for Microsoft Excel Spreadsheet.

“People can be very creative in adapting Excel for electronic record-keeping,” allows one enter-prise resource planning (ERP) vendor, and the cost is a fraction of sophisticated business and man-ufacturing software. But as an enterprise-wide database, Excel isn’t a practical solution.

While the Bioterrorism Act of 2002 merely encouraged food and beverage manufacturers to junk paper and adopt electronic records, the Food Safety Modern-ization Act (FSMA) gives them a strong shove in that direction. Meeting the act’s record-keep-ing requirements, along with the information and recall-ready demands of retailers and foodser-vice customers, has made ERP virtually a requirement for doing business in today’s food process-ing world.

“FSMA really has woken people up and injected a lot of awareness of management’s need for a formal system that provides a view of plant-floor processes and controls, particularly in quality management,” observes Rich Sides, COO of Ultra Con-sultants (www.ultraconsultants.com), a Chicago-based firm that guides food companies in the selection and implementation of ERP systems. Unfortunately, many implementations fail to deliver on their business-improve-ment promise.

Many of the systems currently in place are cobbled together collec-tions of accounting and back-office software like Quickbooks that provide little if any production visibility in an inspection by public health officers, independent audi-tors from organizations like SQF or BRC or customers themselves. As a result, proactive food executives are upgrading their ERP systems to more closely tie management systems to software that provides

a window to what is happening in production.

Recalling a Miami snack food firm, Sides says, “Their entire SQF program was in binders.” Elec-tronic records are essential, and the C suite wants its own copy. “There’s a lot of fear among food manu-facturers in terms of compliance,” he adds.

But integrating ERP with processing, quality monitoring, warehousing and other plant-cen-tric systems is easier said than done. Business systems involve quite simple processes, and the amount of data you’re dealing with is pretty simple. But as soon as you walk out on the factory floor, it’s completely different.

Moving data back and forth between ERP and the shop floor typically involves an interface with a manufacturing execution system (MES), adding cost and complexity. With application program interfaces (API) embedded in the latest ERP versions and food companies migrat-ing to cloud-based systems, the MES

FOOd pROceSSing: Special RepORT


layer can be eliminated, some experts argue. The API can move data from machines and quality systems to ERP, provided the API knows how the data is structured.

Beginning in 2014, West Liberty Foods (www.wlfoods.com), West Liberty, Iowa, began deploying a computerized maintenance man-agement system (CMMS) from a leading vendor at West Liberty’s four facilities. Two years ago, the turkey processor began integrating production software at its Tremon-ton, Utah, deli meat plant. “We’re starting to get good data from the production team and tying it to the maintenance program,” says Chad Williams, corporate mainte-nance director.

That’s because a cloud-based API ties West Liberty’s CMMS, warehouse management and other plant systems together. West Lib-erty’s ERP does not include an API interface, however, so tying together the business and produc-tion sides of the enterprise poses an integration challenge.

ERP AS MES

It’s a challenge some have met with the help of open standards and common communications protocols. Having a deep bench of computer engineers in the organi-zation also helps.

B&R Industrial Automation Corp. (www.br-automation.com), a division of ABB with offices in

Roswell, Ga., skipped the MES layer when implementing an ERP system that communicates directly with process and machine con-trols, including a storage/retrieval system that supplants a warehouse management layer, as well. Order demand, production scheduling

and tracking, materials man-agement, recipe downloads and shipping functions are performed via ERP, reports John Kowal, busi-ness development director at the supplier of industrial PCs, process controls and motion controls.

“There is merit to flattening the network and software hierarchy,” says Kowal, but that requires net-works that can talk to each other. OPC Unified Architecture is the communication and data-han-dling standard used by a growing number of industrial organizations, including B&R. Also growing in popularity is the open standard for packaging machines known as PackML, which embodies the ISA 88 standard for batch control.

Food manufacturers who adopt OPC UA or PackML can

circumvent much of the work that has made many systems integra-tors wealthy. Controls integration requires knowledge of how the memory in a PLC functions, and finding that code in the PLC regis-ter is time-consuming for an MES integrator and may be impossible for

an ERP integrator. PLC suppliers are fine with that, since it locks in end-users for future sales. Those sup-pliers need to change their business models and make their money in the cloud instead, Kowal maintains.

“The potential is there for direct connect between ERP and floor equipment,” agrees Ultra’s Sides, “but the barriers are standards and investment in the equipment.” Plant-floor modules are embedded into many ERPs already, but they are on the periphery of production and typically do not include quality modules that would enable statis-tical process control (SPC) at the machine level.

Open ERP systems are partic-ularly important to multi-plant organizations with more than one ERP. Acquisitions at one Ultra

“The potential is there for direct connect between ERP and floor equipment but the barriers are standards and

investment in the equipment.”



client resulted in four separate ERP systems.

Skipping the MES level may work for smaller companies but large organizations usually run multiple software packages that need MES’s steadying hand. “I’ve worked with ERP systems with-out MES and MES without ERP, and I have to say MES brings a lot of value to manufacturing,” says one supplier. ERP analyt-ics provide a retrospective view of production deviations, while MES provides real-time analyses that trigger immediate correc-tive action.

Data glut from PLCs that output data every few milliseconds won’t overwhelm a cloud-based ERP system, but ERP needs MES for an effective quality management system. Real-time OEE reporting, root-cause analysis and reduced waste are just some of the benefits of MES.

POSITIVE CHANGE

Regardless of how a company configures its data infrastructure, inventory accuracy is the critical factor in effective information sys-tems, automation experts agree. “Inventory accuracy is a prerequi-site and the one common thread driving improvements in order fulfillment, job costing accuracy, recall accuracy and other opera-tional issues,” says Sides.

When you implement ERP in a plant, everybody’s job changes

Managing that change is another challenge for management.

Sufficient funding for staff train-ing on a new system and managing workers’ expectations of when they’ll see the benefits is what separates successful implementations from those that fail to deliver on opera-tional benefits. Another potential stumbling block is an unwillingness to adapt processes and procedures to the chosen ERP system.

The alternative is software modi-fications that add cost and still may not deliver the desired functionality.

Executive management’s need for production visibility is driv-ing many of the ERP upgrades currently under way, but if man-agement isn’t engaged, projects can quickly go off the rails. If it becomes an IT project, there may be a lack of understanding of the production process itself.

Manufacturers need to identify what processes they have in place already and then have an open mind to organizational change to accommodate the system, according to Aptean Inc. (www.aptean.com), a global software provider based in Alpharetta, Ga., which serves mid-sized food and beverage companies.

Old intellectual property never dies, it just changes hands. In 2004, CDC Software acquired Ross Systems, which had built a solid client base in the mid-tier food market. When CDC fell on hard times, Aptean picked up the

pieces but initially did little to keep the Ross system current with new enhancements, admits Jack Payne, vice president-product manage-ment & solutions consulting. New ownership now is supporting the ERP with new functionality like support of mobile devices to keep Ross competitive.

In 2018, Aptean acquired Indus-tryBuilt, which went to market as JustFood, giving it two ERP options for food & beverage com-panies at the time.

Additional acquisitions by Aptean in 2019 of Beck Consult-ing and LinkFresh support the emerging industry trend toward cloud-based hosting and analyt-ics in server farms like Microsoft Azure. Instant updates are part of the attraction, and automation spe-cialists are unanimous in touting the data security advantages.

Instant software updates are a big part of the cloud’s appeal, West Liberty’s Williams suggests, as are enhancements such as a trace program introduced last year and a module that documents worker training and qualifications. “We’ve only tapped about 25 percent of the CMMS’s potential for maintenance,” he says. “I’d like to see production and quality on the same platform where we have a single book of truth.”

That single book also is known as the system of record, which is another name for ERP. What it most definitely is not is Excel. p



Why an MES System is Critical for Food and Beverage ManufacturersBy James Wood, Director of Business Development, Aptean

p For many food and beverage manufacturers, keeping up-to-date with the newest technology isn’t high on the priority list, especially for mid-size companies who don’t have a ton of money to invest. The thought of integrating technology into their company seems not only expensive but also daunting. Some-times taking that big, scary step, however, makes everything easier in the long run.

For food and beverage man-ufacturers, a fit-for-purpose manufacturing execution system (MES) could be used to shift your company culture towards one of continuous improvement and action.

Integrating an MES solution into your company’s operations should be handled carefully. Price, com-pliance, and the overall learning curve that come with any tech-nology installation of this nature are common, and the idea is that eventually, all employees should be able to assimilate and feel confident without feeling overwhelmed.

An MES solution can be a positive change for companies of all sizes.

HOW CAN MES SOFTWARE

OPTIMIZE A SHOP FLOOR?

The shop floor is one of the most critical components of a manu-facturing company. It’s where the magic happens. However, machines break, and human error is not uncommon. Without a well-oiled shop floor, the company cannot continue to perform at a rate that’s needed to turn a profit.

To stay ahead of the curve, man-ufacturers need a solution that will help their employees work smarter and more efficiently. That’s where MES software comes into play.

The right MES solution will help any manufacturing team run the shop floor more smoothly and strategically. The ability to make quick, confident decisions in real-time is the key to staying competitive. This is impossible with the pen-and-paper method as it requires pulling data and an

after-the-fact approach, both of which take time.

MES software can do more for food and beverage manufacturing companies than traditional man-agement. It has the ability to:• Optimize your shop floor

on-the-go.• Identify issues or potential prob-

lems before they happen.• Integrate easily with exist-

ing systems.• Empower employees with the

data and insights to make manu-facturing smarter.

• Remove non-value adding actions and anecdotal evidence of losses.

• Build a reputation of trust and quality with the supplier base using auditable, quality data.

• There are problems that compa-nies face industry-wide, many of which can be remedied with an MES solution. Let’s take a look at a few of the most common issues food and beverage manu-facturers face to determine how MES software can help.



PROBLEM 1: PRODUCTION

OVERHEADS ARE RISING

Food manufacturers are facing undeniable global economic uncer-tainty. The cost of raw materials is rising, and there’s been a devastat-ing global labor shortage. Energy and distribution costs are also on an upward trend and further squeeze manufacturers’ margins.

Every cost increase unequivocally impacts manufacturers’ bottom line. So, what can be done?

When it comes to raw materials, the best thing manufacturers can do is to make sure their shop floor and overall operations are both consistent and efficient. In terms of labor, companies can reduce overtime shifts, which makes for a leaner environment.

An MES solution, combined with a structured implementation program, can quickly and easily analyze performance and trends based on shifts, crews, individuals, materials, equipment, production lines, products, and packaging.

The right MES software can identify opportunities for improvement when it comes to per-formance, product innovation, and food safety, as well as bottlenecks in the factory supply chain. With this technology, manufacturers are able to analyze product costs relative to targets to better gauge overall cost and profit analysis.

With MES software, end-to-end yield tracking is more

accessible. Companies can iden-tify causes of yield loss from batching to packaging in order to reduce manufacturing costs. This helps to improve the overall plan attainment.

PROBLEM 2: COMPLIANCE

REQUIRES GREATER

DILIGENCE

Food safety is a significant issue for food manufacturers. One compli-ance mishap could mean a world of trouble for companies large and small.

Imagine a regulator walks into a potato chip manufacturing plant and picks up a bag of chips. He/she examines the bag and then requests to see every quality record from when that bag of chips was produced. The task would be nearly insurmountable if every part of the process was recorded on paper.

Traditional methods, because of their lack of control and consis-tency compared to more advanced technology, leave room for reputa-tional risks. Human error is a risk

in itself when it comes to compli-ance and quality control.

How can MES software help with compliance and qual-ity control?• This technology eliminates room

for error by:• Tracking checks in real-time.• Alerting the right team or person

if something needs attention.• Flagging check items to ensure

quality, which removes the need for human “checkers.”

• Eliminating falsifica-tion, pencil-whipping, and data manipulation.Launching checks into the oper-

ator workflow each hour to remove the reliance on watch and check.

Best of all, MES software can provide a complete audit trail at the click of a button, which saves the manufacturer the time and human resources that traditional methods would typically require.

MES software is built to opti-mize the shop floor by providing accurate data, real-time alerts, and more transparent commu-nication between employees and

Food safety is a significant issue for food manufacturers. One compliance mishap could

mean a world of trouble for companies large and small.



teams. Food and beverage manu-facturers can’t afford to slip up on quality control and compliance, and MES software minimizes the effort without compromising the diligence.

PROBLEM 3: INTEGRATING

TECHNOLOGY COMES WITH

A STEEP LEARNING CURVE

The tried-and-true pen-and-pa-per method is still around for a reason—it’s reliable. Having a paper trail of the daily intricate manufacturing details is reassur-ing. Not to mention, adopting a tech solution can be a challenge for many companies-- not every-one is tech-savvy, nor does he/she necessarily have a willingness to change.

However, the benefits of embracing a culture of technology shouldn’t be overlooked. The state of the industry isn’t predicting a shift toward a technology-first mindset; it has already shifted.

How are food and beverage manufacturers supposed to keep up with the sweeping change?

Selecting a technology solution that is both easy to learn, and that does everything the pen-and-paper method can do but better is a sure-fire path to successful integration.

Food and beverage manufacturers need an MES solution that can not only fit into their current processes but improve them.

The Aptean Factory MES is equipped with features that help manufacturers work smarter, not harder.

The Aptean Factory MES allows companies to do the follow-ing easily:• React to problems and imple-

ment solutions faster.• Drive continuous improvement

company-wide.• Measure factors like downtime,

labor, plan attainment, and changeovers in real-time.

• Remove band-aid solutions for a more efficient shop floor.

• Gain transparency across the company.This MES solution is complete

with role-specific views and offers 12 different languages for its users, which makes onboarding easy and efficient. Also, there’s no coding or programming required; it’s a com-plete out-of-the-box solution.

This new wave of technology can be intimidating, so selecting MES software that reduces the friction among employees and provides visibility across your company is essential.

EMBRACING TECHNOLOGY

WILL ENSURE SURVIVAL

For most food and beverage organizations, there’s an exist-ing mentality that integrating technology into business is complicated and invasive, but avoiding technology will only make it harder to compete in the future.

The goal of adding software to your shop floor is to increase margin by producing more sellable products and by reducing costs. Though this initially comes at an additional cost, the return on this investment is going to benefit the business in the long-term and add value to the bottom line. Being able to measure a tangible return is what sets up a company up for last-ing success.

Adding technology to the shop floor is only as complicated as the company makes it. Start by rolling out simple things, like tablets, so employees can become familiar with the software. Once that becomes a natural part of your operation, more can be added and customized to increase your efficiency.

There’s a technological solution for every company—you just have to choose the right software. p



Learn more about Factory MES at Aptean.com or [email protected].

Get Immediate, Actionable Intelligence.Aptean Factory MES

Factory MES software provides full manufacturing visibility from batching through to packaging to deliver real-time metrics and build a culture of continuous improvement.

Get the actionable insight and complete visibility you need to run your plant in a simpler, smarter and more strategic way.

View a Quick Demo

https://lp.aptean.com/FAC-CS-FP-Leading-Cloud-MES-122019.html

why an mes system is critical for food and beverage ......why an mes system is critical for food and...

Documents