We’ve all heard the idea that cleanliness is next to godliness; that sentiment dates back to scriptures several thousand years old. Today, cleanliness is big business, generating nearly $200 billion in revenue worldwide at the start of the decade. At that time, the Bureau of Labor
reported that annual spending on cleaning products approached $700 annually for each American household, something you can observe when the post Christmas/New Year’s cleaning frenzy begins. Spring cleaning may be the most entrenched practice we think of when attacking whatever has accumulated in the household over the winter; but, often it’s the end of the holiday season that has one looking around the house and reaching for the bleach.
In Japan, clearing dirt, clutter, and the disorganization from the old year is an integral part of their New Year tradition. Because each year is seen as separate and distinct, the final week of the old year is devoted to cleaning, de-cluttering, and organizing. Based on what’s travelling down the local checkout lines, that practice is increasingly observed in the States, if not globally. For manufacturers of cleaning products, this means assuring production goes on without a hitch to meet demand.
An interesting example of this practice can be seen at the Clorox
Chicago bleach products manufacturing site, where a new Enterprise Manufacturing Intelligence (EMI
) system has been introduced to keep operations up and running efficiently and effectively.
The challenges this production facility faced:
- Replacing manual processes with automated data capture and accurate, consistent efficiency metrics
- Boosting overall equipment effectiveness (OEE)
- Building a culture of understanding and driving out losses on the plant floor
- Accurately benchmarking against other plants across the Clorox cleaning products division
To see how Clorox successfully met these challenges with a new EMI system, you can go here. You’ll have plenty of time to do so after you finish cleaning the house.
Posted by Epicor Social Media Team
Are your line operators "checked in," engaged, and excited about the impact they have on business results? How about managers and executives? Are the top floor and shop floor connected?
Businesses achieve some amazing things with line metrics – but the most surprising improvement of all is around human capital. When manufacturing data and information starts to flow throughout the business, it becomes a story of uniting your team around performance. An engaged workforce translates to passionate, empowered individuals – operators right on up to plant management and the executive suite – working together to build, sustain, and multiply improvements in operations performance.
While there is an unquestionable link between employee engagement and organizational performance, unfortunately, engagement is a real problem in manufacturing. According to Gallup’s 2012 Employee Engagement Index, only 1 in 4 production staff was engaged last year – line operators ranked last among the 12 manufacturing occupation types. The Gallup Index also shows that among disengaged workers, 50% were “mentally checked out” and about one-quarter of them were unhappy and actively undermining the employer.
Any manufacturer who is concerned about factory performance might also be concerned that plant staff might reject line metrics en masse. However, a new and entirely unexpected trend is emerging among businesses that use metrics and analytics to drive performance improvement. Manufacturers who leverage technology to establish a connection between the top floor and shop floor see a dramatic and unexpected shift in culture – one that unites and inspires operators, supervisors, plant management, and corporate executives to work together to build and sustain performance, and extend improvements across the production network.
The information-sharing loop begins with line and plant performance, then involves and engages people across the organization, from operators on up to the executive suite. These passionate, empowered individuals have what they need to drive financial and operational directives into specific, meaningful action.
Join us and special guest John Oskin, leading industry advisor on operations performance, this Thursday at 11:00 AM Pacific / 2:00 PM Eastern to learn more. Oskin will discuss how companies blend corporate initiatives and technology to drive operations performance – and along the way create collaboration among operators, management, and executives.
Epicor Webcast Event: Line Metrics Changed a Culture.
Sign up for this webcast today!
Posted by Diane Murray, Manager, Product Marketing
Key emerging markets offer excellent demand for enterprise applications. This is especially the case with Brazil. The country’s ongoing economic expansion continues to place it at or near the head of emerging markets. Bill Adams, senior international economist for Pittsburgh, Penn.-based PNC Financial Services group, described the Brazilian economy in a recent Forbes
article: “Brazil’s economy is in a self-sustaining expansion. A tight labor market fuels persistent wage gains even in a slow economy, and these wage gains fuel higher consumer purchasing power and domestic demand and sustain economic growth.”
According to a recent report from Gartner, Inc.
, Brazil’s overall IT spending will near $124 billion (US dollars) in 2013, with IT modernization at the top of the list of priorities for Brazilian IT leaders. Furthermore, within the context of IT spending, the report also indicated that in 2013, ERP, CRM, industry-specific software, office and personal productivity tools, and e-commerce software lead the application software investment initiatives for organizations.
Such development is leading to an increase in customer-specific functionality (CSF) in software solutions, a trend underscored by the new release of Epicor iScala that integrates with the Epicor ICE Business Architecture to help customers gain increased agility, mobility, and flexibility while incorporating CSF functionality. “The new release of Epicor iScala represents a significant investment, bringing new capabilities designed to increase system performance, improve stability, and deliver long-term support for the latest technologies. This will enable our customers to realize even greater business value from the solution,” says Robert Sinfield, senior manager, product marketing for Epicor. “The increasing demand for enterprise applications within key emerging markets such as Brazil offers growth opportunities for Epicor iScala, while supporting our customers who are moving into this new market space.”
As companies increasingly target emerging economies as part of their strategic growth initiatives, support such as CSF is increasingly seen as an essential software component.
Posted by Robert, Sinfield Senior Manager, Product Marketing
Food Manufacturing interview with Tom Muth, senior manager of product marketing for process manufacturing, Epicor Software Corporation.
Food Manufacturing spoke with Tom Muth of Epicor Software Corporation about the challenges processors face regarding food safety and traceability, and how ERP software can help mitigate these issues.
Q: What unique challenges do food manufacturers face regarding documenting food safety and traceability efforts?
A: Food safety is seen as the single most important issue among manufacturers, and the demands to document information relating to food sourcing, material flow, traceability and more present an ongoing challenge. These complex demands have a real cost, one very critical to bottom-line profitability as major food retailers take on a larger role in controlling. Forward and backward traceability of processed products, batches and lots requires detailed tracking from the point of materials receipt throughout production and delivery to customer shelves. Food manufacturers also require strict ingredient and environmental control throughout the manufacturing process, driving the need for food manufacturers to have the flexibility and details recorded across lots, batches, co- and bi-products. Lastly, food manufacturers are increasing the value of traceability responsiveness to quickly and efficiently respond to recall events or customer inquirers within minutes versus days.
Q: How can ERP systems help food producers meet these challenges?
A: ERP systems are providing the means to meet these challenges while improving internal business processes. By providing a framework to meet regulatory compliance demands, ensure product safety and control costs, ERP is proving increasingly essential as a tool in the food manufacturer’s arsenal for traceability. The ERP role is automating traceability of ingredients from origin to the final customer, as well as speeding and simplifying the audit process. A holistic electronic quality management approach is essential for meeting the challenges associated with traceability and quality. With ERP systems such as Epicor Tropos, quality workflows are integrated from the time of a sales order, to purchasing, to production, into inventory and finally to dispatch. ERP maintains quality specifications, sampling regimes and QA test results from order to dispatch and also may dynamically link to material lot and product release controls to help control quality and ensure full traceability.
Q: What are some best practices food companies should put in place regarding their supply chain management to help their business succeed?
A: Food manufacturers can help improve their bottom line by having standardized procedures for order management and delivery fulfillment. Another is to have standardized workflow and procedures for production planning and execution, and to ensure their operations are integrated and coordinated with customer service, logistics and delivery to improve process visibility and improve efficiencies. By doing these best practices, food manufacturers can better manage items throughout the whole value chain: improve controlling and planning stock, production, packaging, and distribution; and improve the collaboration between departments to optimize production capacity, perishability, warehousing and cash flow.
Q: What are the latest trends with process manufacturing that food manufacturers can take advantage of to lower operational costs?
A: Some of the latest trends with process manufacturing that food manufacturers can take advantage of to lower operational costs include:
- Optimizing materials consumption (reducing waste)
- Extending shelf life of final products by speeding throughput
- Lowering energy costs through real-time visibility
- Benchmarking energy usage
Q: What should food manufacturers consider before implementing an ERP system?
A: Food manufactures should consider an ERP system that has been designed for their unique business requirements for the food industry and representative success in their particular segment. Effective food ERP solutions such as Epicor Tropos are designed for process manufacturing and have a built-in process model and recipe and materials management support aimed at driving efficiencies and improving margins specifically for food and beverage industries. The ERP system should also be able to monitor and manage the variable nature of yields and product quality, shelf life and accurately forecast, optimize scheduling, manage materials, labeling and transportation in order to properly fulfill order to promise with a short notice. Lastly, an ERP package designed for food manufacturers will also have industry-specific functionality designed to minimize customization and include support for date code management, rebates and commissions, consignment costing, day one for day one order and delivery, multiple product attributes and grades, retailer-specific packing, and catch weight labeling.
As the manufacturing sector continues to recover, the focus of operations is changing. The economic upturn has brought an end to low volume and harsh rationalization. Volume has suddenly shot up for many manufacturers, and now they face a problem much different from cost cutting: How to meet increasing demand after a long period of resource slashing and little or no investment in productivity?
Historically, businesses did one of two things to meet new demand: build capacity with capital investment or outsource. But there is a third option that is far less cost-prohibitive and more sustainable: meet demand with better utilization of assets on hand. This involves eliminating loss—random and chronic—to free up resources and capacity. To do this, manufacturers need accurate, real-time manufacturing information so they can uncover and prioritize production problems and create new capacity using the same resources they already have.
- Stop unplanned and operational downtime. In a world where reliability is key and unplanned downtime can cost thousands of dollars per minute, reducing unplanned and operational downtime can yield great results. In addition to financial savings, reducing changeover time and operational downtime leads to proportional increases in manufacturing capacity. Best practices implemented on a single line can often be transferred to similar lines, multiplying the impact and creating even more needed capacity.
- Wipe out minor stops. Minor stops are short hesitations and stops that are usually less than five minutes. They are short enough to be “unnoticed,” but long enough to have a significant impact on line performance and capacity. Minor stops can add up to significant loss, especially if you don’t have visibility into the frequency, duration, and reasons for them.
- Eliminate production variability and quality loss. Quality loss and rejected product has a double impact: material and labor. A standard overall equipment effectiveness (OEE) calculation includes a production reject as a lost opportunity for production, which impacts capacity. Therefore, when calculating OEE, consider the cost of both material and labor.
- Establish improvement priorities in a financial context. Not all downtime is equal. Applying cost information to downtime analysis may reveal a new perspective: the cost of downtime. A cost-of-downtime analysis can be used to establish priorities with a financial context. Moreover, a probability of success analysis across loss categories will prepare operations professionals to prioritize efforts and achieve sustainable improvements.
Bottom line: the best way to create capacity is to scrutinize line performance with manufacturing intelligence applications that monitor and analyze manufacturing processes accurately, and in real time. These applications provide crucial information to help find the capacity needed, without costly investments for new machinery, additional labor, or contract manufacturing.
Posted by Diane Murray, Manager, Product Marketing
In the game of baseball, there is a strategy of each player knowing who gets the ball and who they throw it to; no matter where on the field it lands. Not only is there an automatic response; the outfield is talking; the infield is talking; the outfield is talking to the infield, and a good coach is sitting silently because he knows his team is prepared and has the tools to get the job done. He knows that each player understands that when a ball is hit to center field, the center fielder calls it, catches it, and immediately throws to the second baseman. It’s automatic. This is a process that happens without thinking and that transcends departmental boundaries. Can the same be said of the plays that happen in your manufacturing business when your customers throw a curve ball with a new product line, a change in release date or added requirement?
For businesses with silos of information and fractured processes, the answer is ugh .. yet another change. But for those that understand the value of end-to-end ERP systems where business processes flow from department to department, change is like expecting a bunt when a man is on first base and there are no outs. The play is already set.
In today’s fast paced business environment, speed and the ability to quickly respond are many times the name of the game in filling customer demands. Manufacturers that deploy ERP systems that cover end-to-end business processes know immediately as the product ships what their profitability looks like on each production job for the customer and can in tune see historically, every time I ship this, how my profitability is improving.
How you may ask? These manufacturers are doing this by enabling their business data to flow from estimating to production to procurement and finance as well as production. This data is captured as it happens and every employee understands the benefit of accurate information – to not only help their business determine what customers to keep happy, but also to help their business determine what customers to charge more to or to fire. Each department doesn’t run as a silo, with its own systems to support it. Rather an ERP system supports the entire business and provides a natural flow of data between departments, not unlike the strategy deployed by a good coach. In the game of business, reduce the silos to see improved profitability. ERP technology can help. Epicor can help.
Please plan to join us this Wednesday at 1pm Central to learn more.
Epicor Webcast Event: Improve Efficiency by Streamlining Quote to Cash Process!
Posted by: Christine Hansen, Manager, Product Marketing at Epicor
About 60 miles west of Columbus, Ohio, situated along the banks of the Muskingum River, lies a picturesque town of 25,000 known as Zanesville, Ohio. Rich with history, Zanesville was a notorious a hub for bootlegging activity during the Prohibition Era. These days, the town is known for a far tamer vice—it’s home to the New Bloomer Candy Company, which was founded in 1879 and has been delighting children and adults of all ages with their signature chocolates and candies ever since. A few years ago, New Bloomer realized there was one area of operations in need of significant modernization: their legacy computer system and enterprise resource planning (ERP) system.
As a small, seasonal business, New Bloomer’s orders vary greatly depending on the time of year. From January to September, bagged candies are in high demand, while chocolates are the most popular products during the holiday season. In order to ensure they have enough resources to fill orders from one season to the next, the company must diligently monitor inventory levels and compare them against the lead time of the orders they receive. If there isn’t enough product on hand, employees must be able to determine how much they need to import from other suppliers, or what ingredients they need to purchase in order to manufacture additional products on-premise.
In the past, the homegrown system New Bloomer used did a poor job helping staff meet this challenge. Knowing they needed a better way to run the company’s manufacturing and planning processes, New Bloomer began to evaluate new ERP solutions and chose Epicor Tropos.
One of the biggest immediate benefits of Epicor Tropos was a vast improvement in employee communication. New Bloomer has two separate locations: they repackage imported candies at one facility, while chocolate products are manufactured at another facility five miles away. Both facilities need to communicate effectively in order for things to run smoothly. In the past, however, all communication took place via phone, which slowed things down significantly. With no access to crucial data, such as how much of a certain product was on hand, employees had to rely on managers to look up the information they needed in the system.
With a new ERP system, all employees have real-time access to all information they need. This includes work orders, current inventory levels and when orders placed for additional ingredients are expected to arrive, which lets staff know when they’ll have enough materials in stock to fill customer orders.
The ability to view all of this data has helped improve the New Bloomer’s relationship with their customers. Employees can now provide up-to-date information on work orders at any given time, so customers calling in for details can be immediately informed of any shortages or delays. The system also helps New Bloomer avoid any repercussions from shortages by allowing them to easily substitute one product for another so a sale can still be completed.
Another significant benefit is the system’s lot control abilities. In the past, racks of outdated products would pile up because New Bloomer’s old system wasn’t able to alert them when items were near their expiration date, which cost the company anywhere from $20,000-$40,000 per year. Now, Epicor Tropos delivers two sets of reports periodically: one for items that have expired, and one for those that will expire soon. This allows New Bloomer staff to quickly move products that are close to expiry so they don’t lose money, and has greatly reduced the amount of products they have sitting in their warehouse at any given time.
As a result, the company was able to reduce their inventory from $1.6 million at the end of 2011 to $1.2 million at the end of 2012, largely due to Epicor Tropos. “The system helps us control our inventory better so we’re not bringing in truckloads of product we don’t need,” says New Bloomer Controller Michael Montgomery. “We’re doing a much better job there.”
With Epicor Tropos, New Bloomer has not only modernized company operations and made their business more efficient—they’ve also given their employees greater control over their jobs, which has led to a renewed sense of pride.
“[The staff] own their jobs because they know where the information is and they can look it up themselves,” Montgomery says. “We’ve changed the culture here, just with this new ERP system, because now people have more knowledge than they’ve ever had.”
Case study by Victoria Garment, courtesy of Software Advice, a trusted resource for buyers of MRP systems
Take the survey and receive access to LNS Research’s Performance Management Research Library for one year, and the benchmark report in early 2014
Click here to take the survey now. Deadline November 15, 2013
Manufacturing executives and managers face many challenges today in improving and optimizing business performance. But with so many metrics available to measure production, it can be difficult to know which are really driving the most value, along with how to best put in place metrics programs and supporting technologies that can accelerate results.
In conjunction with MESA International
, LNS Research
has launched the biennial ‘Metrics that Matter’ research survey. The 2013-2014 survey and research report is focusing on the trends and correlations between specific operational metric improvements, the use of Manufacturing Operations Management (MOM) software applications, role-based metrics reporting, and the effect of emerging technologies such as mobility, big data, and cloud computing on metrics programs.
Metrics are a critical component of achieving Manufacturing Operational Excellence. As a manufacturing professional, you’re tasked with not just maintaining existing metrics, but identifying ways to improve them as well. Once you understand your organization’s current performance, benchmarking your progress against peers and industry best practices is a critical next step in the journey.
By participating in the survey, you will receive access to LNS Research’s Performance Management Research Library for one year, as well as the benchmark report in early 2014. The opinions and observations shared in the survey are invaluable, and will help give insights into the most important trends today around metrics, programs, processes, technology, and more.
Food manufacturers are being squeezed on multiple fronts. Costs are rising, as are regulatory pressures and food safety issues. Add to this volatile consumer tastes and consolidation in the food retail sector and you have an environment where cost control is a critical issue.
The issues food manufacturers face are complex. The industry is increasingly bound by strict government regulation that entails significant administrative effort. Food safety issues, appearing in media headlines on an all-too-frequent basis, add further scrutiny to compliance. Indeed, food safety is seen as the single most important issue among manufactures, and the demands to document information relating to food sourcing, material flow, traceability and more present an ongoing challenge. These complex demands have a real cost, one very critical to bottom-line profitability as major food retailers take on a larger role in controlling revenues.
What’s a food manufacturer to do? One source of relief is technology. ERP systems are providing the means to meet these challenges while improving internal business processes. By providing a framework to meet regulatory compliance demands, ensure product safety, and control costs, ERP is proving increasingly essential as a tool in the food manufacturer’s arsenal.
While many food and beverage software products are designed for discrete manufacturing of engineered products, the best are devised from the ground up for process manufacturing of demand-oriented production, with recipe-based materials management. Among the ways these latter systems are lowering costs for food manufacturers:
- Automating traceability of ingredients from origin to the final customer
- Speeding and simplifying the audit process
- Optimizing materials consumption (reducing waste)
- Extending shelf life of final products by speeding throughput
- Improving customer service and satisfaction by minimizing errors and avoiding costly penalties
- Providing accurate factory floor information for better process understanding and improvement
- Improving decision making by delivering greater visibility across operations
Advanced packages also offer special features for processors and packers of fresh and gourmet goods, such as consignment costing, day one for day one order and delivery, multiple product attributes and grades, retailer-specific packing, and catch weight labeling.
In today’s market environment, where food manufacturers have increasingly tight windows of profitability, a well-considered, well-implemented ERP system can mean the difference between struggling for survival and thriving.
Posted by Tom Muth, Senior Manager, Product Marketing.
The Single Euro Payments Area (SEPA) is the largest payments initiative ever undertaken within Europe. European Union (EU) law effectively mandates migration to SEPA Credit Transfer (SCT) and SEPA Direct Debit (SDD) in the Euro area by February 1, 2014.
In a statement from Benoît Cœuré, member of the executive board of the European Central Bank: “Adapting to SEPA involves adjusting a lot of technical and business procedures over a limited period of time. I hope that all stakeholders will take migration to SEPA payment instruments as a top priority.” (Source: European Payments Council, March 2013).
With SEPA fast approaching, is your business ready? Equally important, is your enterprise resource planning (ERP) system ready? This blog explores the importance of SEPA and the changes necessary within your ERP system to achieve compliance in advance of the February 2014 deadline (EU-member states with a non-Euro currency will need to have adopted SEPA by October 31, 2016).
What is SEPA?
Electronic banking has been around for many years, however, each country, and often each bank has required data to be formatted according to a proprietary standard. In a drive to reduce the cost of electronic payments and to simplify cross-border transactions the EU has created a set of standards and common payment instruments to be used with a common payment area (known as SEPA).
As of August 2013, SEPA impacts 33 different countries including the so-called “EU-28” and Iceland, Liechtenstein, Monaco, Norway and Switzerland. Each country within the area will be able to adopt the standard or extend it with additional requirements; however, due to the way XML works this will not break interoperability. As such, it’s important to make sure your ERP system supports the standard SEPA messages for instructing a bank to make a payment on behalf of a customer.
Why is SEPA important?
Trade is built around an exchange of goods or services for either goods or services of equal value, or some form of monetary compensation. Management of the transfer of funds for goods and services in multiple countries has resulted in increased complexity for banks, financial authorities and payment brokers, as well as increased costs for payers and payees.
The introduction of a single, overriding payment standard for the management of electronic movements of money is designed to simplify systems, increase transparency and hopefully reduce costs for the various parties involved.
I thought SEPA was the same everywhere?
SEPA is a set of standards and guidelines for managing electronic transfers in Euros. These standards allow for some interpretation and flexibility with member countries able to extend and modify the SEPA layouts to match local fiscal governance requirements.
The adoption of SEPA in Europe has been different across the region up until now; with countries like Finland opting to adopt SEPA earlier than other countries. This combined with the flexible nature of the SEPA standards framework has resulted in different levels of control in different countries. Countries like Germany and Estonia have opted for a single SEPA standard to be used by all banks within these countries requiring all banks to accept the same SEPA file format. Countries like the Netherlands and Finland have taken a different approach allowing banks to extend the SEPA file layouts according to the individual bank’s requirements. Remember, this is Europe after all and even though most use the same currency, there are still some differences between the different countries!
This means that you might use multiple banks in the same country and be required to prepare slightly different SEPA output files depending on the local interpretation of SEPA. It also means that you might use the same bank in multiple countries and there may be a need to prepare multiple formats of the same payment files depending on whether these are going to be sent to the Swedish branch, the Finish branch or the German branch.
What can you do to get ready?
You need not despair though. Even though SEPA might differ slightly from country to country you can use one bank account to make and receive ANY and ALL payments in Euros from a single bank account.
As your organization prepares for the move to SEPA, Epicor has identified the following major things you should think about:
Implementing SEPA is a big change for your organization, so create a project for the introduction of SEPA with a clearly defined ﬁnancial budget. Know what your goals are and put things into different phases if necessary.
Make a list of the customers that are in ‘SEPA countries’ and adjust your plan to support the introduction of SEPA in these different countries.
Make sure to check all your banks are SEPA-compliant, don’t assume anything!
SEPA allows you to use one EUR bank account for all payments and receipts in Euros. Is one bank account in EUR sufﬁcient (are more local bank accounts needed)?
Remember to update your invoices with your IBAN and BIC and ensure all customers’ and suppliers’ bank account numbers are entered into your ERP according to the International Bank Account Number (IBAN) formats.
Epicor iScala extends support for SEPA
SEPA does not need to be complex. The latest release of Epicor iScala offers organizations a flexible framework that harnesses the power of the Epicor Service Connect (ESC) integration and process orchestration tool. Standard SEPA XML schemas can be adopted and easily adjusted to meet local, regional or even bank specific requirements.
Posted by Robert Sinfield, Senior Manager, Product Marketing