At Adroit, one of the first things we do when getting to know a new client is to walk the production process. This process specification dictates the type and form of an ERP system required. Food production is unique in that it may have a combination of process oriented production and discrete oriented production.  

Process oriented production takes raw materials that can be described in volumes, weights, densities, and potencies often of varying attributes and through the use of formulas create a set of outputs including Work in Process (WIP), By-Products, Co-products, and Re-work (planned and unplanned).  Processes can be fractionating or combining.  Output is typically in bulk and also is described in volumes, weights, densities, etc.  The bulk output is then packaged in a variety of sizes and packaging arrangements.

Discrete manufacturing utilizes a multi-level bill of material to produce one finished product from one or more inputs. Inputs and outputs can be described in eaches, pieces, etc.

Trying to deploy a discrete oriented ERP system in a Food Processing environment will create challenges including with estimating yields of co-products and by-products per production run, determining the amount of product available to promise based on a limiting input of a particular raw material, and determining the cost of products.  Some food processes require multiple stages with stage one being a fractionating process that produces multiple co-products. The co-products are then used as inputs to the next stage. Food processing can be further broken down into batch processing and continuous processing.  Batches require specific amounts of ingredients added to tanks, kettles, etc which are then processed. Continuous processes require constant feeding of a principle raw ingredient with constant output. The incorrect ERP system can make completing these transactions a nightmare on the production floor.

Ingredient attributes such as potency, grade, PH, moisture, fat, etc are utilized in food formulas to drive to a consistent output via variable amounts of inputs, equipment settings, etc.

Flexible recipes and formula specifications enable food and beverage processors to model their unique production processes in a series of controllable and repeatable process steps.

Often challenges with inventory accuracy, costing, and labor variances can be tracked back to a misfit of the ERP production model to our clients production processes. The strongest food and beverage ERP systems support both modes and allow flexible support in mixed-mode environments.