Holistic Enterprise Asset Management
Leaky pipes or roofs, metal shavings from poorly maintained equipment that fell into packaging processes, inadequate sanitation procedures, and other asset maintenance issues have lead to several high profile product recalls and corporate embarrassments. Effective preventative maintenance capabilities within EAM systems like Infor EAM Enterprise Edition [evaluate this product] not only reduce product quality and safety risks, but also increase asset availability and extend the lifecycle of assets. Effective preventative maintenance (including reliability centered maintenance [RCM]) or stopping the usage of any “out of tolerance” conditions proactively improves product safety, minimizes write-offs, and improves fill rates (customer service).
Design for Compliance, Quality and Product Safety
In contrast to Lawson’s 4P approach in Part 1, Infor considers PLM as a focal system of record. Allergen labeling and claim substantiation recalls, home handling and usage instructions, supplier enablement, and designing products for compliance, quality, and food safety issues (including design for environment [DfE]) are all supported by integrated PLM processes. Starting with initial material testing via release of a product to localization at a plant, a PLM system controls more data about compliance, quality, and safety than any other application.
Trial protocols to ensure that companies are testing for the right issues can be developed within the product and seamlessly integrated to QA processes. Full labeling and compliance documentation by end-user, market, and country can be automatically generated.
With the increased use of outsourcing and pushing more research and development (R&D) tasks out to suppliers, manufacturers will strive to protect intellectual property (IP). Process manufacturing PLM solutions like Infor PLM Optiva [evaluate this product] should allow suppliers to disclose all the risks while protecting vendors’ IP.
To that end, secure constituent formulas manage compliance data and provide masked R&D material data as necessary. When a compliance issue arises with a material that has critical security, compliance managers can search across this secure data and find other similar materials to proactively address other potential issues.
Designing with built-in quality, compliance, and sustainability in mind will minimize the time and cost to scale, ensure product safety, and improve the product success rates. In parallel, companies can benefit from reduced costs, improved product performance, sustainability, minimized time-to-market (TTM), and ensured product’s regulatory compliance.
Material and Product Screening and Control
Since suppliers represent a high area of potential risk, integrating more data and more frequent supplier interactions can proactively improve safety. The appropriate level of material disclosure, supplier or third-party testing and certification, and internal testing and certification can be enforced based on the supplier, commodity and item quality, compliance and risk rating, .
As requests for information (RFIs), requests for proposal (RFPs) or Plant Certifications documents are processed, integrated material disclosure processes can streamline processes for low risk and high quality suppliers and provide additional scrutiny for higher risk suppliers, materials and plants. Materials disclosure and screening processes can proactively identify issues, protect product safety, and reduce process lead times and costs.
Optimized Scheduling and Planning with Product Safety and CTP Constraints
With compliance and safety constraints integrated into planning and scheduling processes, companies can simulate the impact of a product safety occurrence. Planning that stops organic lots from being stored in a bin with inorganic lots is an example of proactive planning. As time pressures increase, supply chains and products get more complex, and relying on manual processes or human intervention is increasingly risky.
The chance of product safety issues from cross contamination or Hazard Analysis and Critical Control Points (HACCP) monitoring for inability to make product claims is increased as products and package options proliferate to meet consumers’ demands for wider variety of products, improved compliance and ensure product claims. Companies can ensure compliance and product safety while increasing throughput by up to 40 percent (based on Infor customers’ results) via deploying constraint-based optimization software that includes handling organic requirements, allergens, impurities, processing aid contaminants, package compatibility or stability, or equipment or storage constraints.
Moreover, as companies look to outsource more, the ability to include supplier or internal CTP capabilities can ensure that the lowest risk suppliers are proactively selected. This can not only improve product safety, but can also minimize inventory levels and improve cash flows.
Shaping Demand to Improve Compliance
When companies are faced with suppliers or products that cannot meet future compliance, risks become unacceptable and demand will likely be reduced. The only decision may be to sunset products. The use of integrated pricing and promotions planning and management can identify impacts on margins, cannibalization, and more profitability transition to lower risk and higher margin products.
To proactively identify and mitigate compliance, safety or other internal or supplier risks, risk management should be included in all levels of planning and execution. As suppliers face increased financial pressures, will their quality suffer (or might they even go out of business)? With increased risk transparency, companies can start to improve compliance and product safety while minimizing risks.