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Home > News > REDUCE LABOR COSTS

Reduce Labor Costs by $250,000 this year and beyond!

Automated Support Processes

The use of MRP and ERP software solutions continues to grow (Manufacturing Resource Planning and Enterprise Resource Planning).  Unfortunately the promises of an MRP or an ERP do not always meet with reality.  Although the concepts of the software provides the output, the major deterrent is INPUT, or more often Lack of Input.  An MRP or ERP is only as good as the data going in to feed these data-hungry programs.  These systems are not designed to collect data.  They are designed to analyze data and subsequently take action.  This results in manpower to input the data.  Companies can hire employees for data entry.  However, transcription of data by manual entry leads to data errors.  Garbage In, Garbage Out.  Let's take a look at eliminating manual entry, or at least, eliminate the possibility of making errors.

The graphic below provides a scenario that would automate a process from sales through production through shipping.  It is inclusive in sales input, scheduling, purchasing ingredients and packaging, production data, food safety and quality attributes, finished product inventory, COA's for customers,  lot code tracking, customer data, and it pays the bills and receives the payments.

This may seem like a big chunk to bite off in one fell swoop, but let's take a moment to look at the current situation.

It can take a company months to years to install and implement an ERP and at the end, they are still relying on manual input for data entry.  The reason it takes so long is because of the training involved.  People have to learn how to operate the ERP.  An ERP is designed to provide results and reports for management to make decisions on all aspects of an operation from Human
Resources to Customer Satisfaction.  It is not designed to automate data entry.

An MRP is not anywhere near that comprehensive and can be up and running in weeks.  However, MRP's are sensitive to one word that seems to complicate their use for many companies.  Inventory.  The ingredient inventory and the finished product inventory have to be maintained and kept current continuously.  The MRP depends on assigned usage of ingredients and receipts to maintain ingredient inventory.  Production reporting and invoices are used for inventory control of finished product.  Manual adjustments to either inventory is the donnybrook in the process.  This causes cycle counts to become the norm, otherwise the MRP is not scheduling for lack of ingredients that are present, but not entered, or scheduling for ingredients that are in the MRP inventory, but not in the warehouse.  Finished product inventory has the same problems.

FoodHorizon can work with MRP's and ERP's to automate data input as well as offer stand-alone solutions to provide actual weight and numbers of ingredients used as well as actual weight and numbers of products shipped.  This information also includes lot codes for lot tracking, temperature information for receiving and shipping and...........  FoodHorizon is not a software company, it is a systems company.  The basic work has been done so that the FoodHorizon system can be configured to meet your needs without the need for custom development or the pitfalls of "one size fits all".  A Sentry9000  system can be installed within 8 weeks and a Centurion system within 4 weeks.  When we walk away, your employees are trained down to the operator level. 

Think outside the box.

How many man-hours can be saved in your operation by eliminating paperwork, paperwork shuffling, paperwork review and paperwork storage from one end of the operation to the other?  Look at the graphic below and see every point where automated information relieves a person from taking input and recording it on paper and possibly making another input, or worse, a second person having to make the other input.  Data should flow unrestricted by paper shuffling from a customer placing an order, to the truck leaving the loading dock with that order, and the customer's payment arriving in your bank account..

Did that $250,000 reduction in cost get your attention?  That can be from 1 to 10 people.  That amount will vary, and it may not be a $250,000 reduction of wages and salary to your operation, but the reduction will be significant.  Don't forget that "Time is Money".

Let us work with you to find a solution to your information management needs in your production facility, and have a positive impact on the bottom line this year and beyond.



February 25, 2005

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