In discussing the significance of batch yield analysis, Mr. Smith explained that it all begins with examining yields resulting from processing or blending. Simply speaking, yield is the amount of product obtained after a process, that is to say input v. output after any procedure. By tracking these yields over time, manufacturers can quickly and accurately identify the formulas or processes that are under-performing. Mr. Smith contends that once the discrepancy in the yield is determined, the manufacturer can then determine the cause of yield variance and corrective action can be taken.
Mr. Smith stated that by reducing the scope of formulas to the ones with the largest yield variations, “The formulas with the largest variance from standard are the ones that will bring you the most money in your bank. Otherwise it is like looking for a needle in a haystack.” Mr. Smith continued by saying, “Every dollar of inventory that is lost in the conversion process is gone forever. Every dollar that manufacturers find by tracking batch yields is theirs to keep!” Mr. Smith challenged CACD members to look for ways to improve operational processes such as tracking batch yield analysis to increase profitability.
Mr. Smith’s CACD presentation also included an outlook on the business costs related to managing country of origin. COO discloser on certificates of analysis and some labels has become a significant compliance issue for formula manufacturers, especially in the food industry. Mr. Smith warms that many retailers are now requiring distributers and manufactures to give complete disclosure of the COO of all the materials in a finished good or product. Some companies are now requiring full disclosure of the countries of origin prior to receiving the shipment into their inventory.
The demand for COO disclosure is costing businesses resources both financial and human. Changing business practices and regulations for COO can delay distribution of product to customers or shipment of merchandise that vendor will not accept. Managing COO manually leads to massive work overload for key personnel increasing the burden on quality control and; lab personnel. Mr. Smith closed by encouraging anyone who was facing the challenges to COO to automate the system as soon as possible to save valuable time and money.
Attendees of Mr. Smith’s presentation felt the information of Country of Origin and Batch Yield analysis was not only useful but also timely. CACD Executive Director, Cathy Campbell attended Mr. Smith’s session and praised his insights with the following statement, “The presentation and information shared by Randy Smith was helpful, informative and insightful to CACD's members. We are grateful to Vicinity Manufacturing and Mr. Smith for being a resource and for giving his time." DiCorp™
About CACD- CACD is a non-profit trade association for the distribution sector of the Canadian chemical industry. As of May 2008, CACD represented 52 member companies across Canada, with 169 sites. CACD’s member companies are committed to taking every practical precaution towards ensuring that products and services do not present an unacceptable level of risk to its employees, customers, the public or the environment. CACD’s members adhere to a management program known as “Responsible Distribution®”
About Vicinity Manufacturing, Inc. -Vicinity is the premier software solution for formula-based manufacturing. Our clients include those from the food, chemical, pharmaceutical, and fragrance industry. The Vicinity solution extends the industry leading Microsoft Dynamics™ financial and distribution offerings to deliver a powerful and flexible ERP package. Vicinity Manufacturing™
Call 770-412-2467 x.282, email us at info@vicinitymanufacturing.com or visit www.vicinitymanufacturing.com
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Brooke Webb
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