Manufacturing Resource Partners Blog

What is Process Manufacturing?

It may be confusing to understand that there is more than one branch of manufacturing that produces different types of products. One in particular is process manufacturing. Process manufacturing is the production of goods in bulk that undergo techniques of being blended rather than being assembled (otherwise known as discrete manufacturing). Some of the primary industries that would be considered process manufacturing include chemical, food, beverage, paint, cosmetics, and pharmaceutical.  Formulas and manufacturing recipes are involved with this particular branch of manufacturing, whereas discrete manufacturing would be concerned with bills of materials, routing and can be disassembled to return to its original parts. An easier way to better understand the process is the key that once something is produced by this process, it cannot be returned back to its original element. A prime example would be not being able to unscramble a scrambled egg.

Just like when preparing a meal from a recipe, there are certain measurements (such as tablespoon, cup, or fluid ounces) for your ingredients along with steps to undergo (such as baking or sautéing) to successfully have a finished dish. The same concept exists for process manufacturing. Formulas in manufacturing specifically state the ingredients and amounts that are necessary for the successful completion of
a product. With both instances, the recipes must be followed and measurements must correspond otherwise there will not be a successful conclusion. In other words if a cake recipe calls for your cake to bake at 300º for 45 minutes and to speed up the process you choose to bake at 450º for 30 minutes, the outcome will be an overcooked cake! The same goes for process manufacturing, if the measurements and recipe are not followed, the customer will not be satisfied with an unfinished product or the deadline not being met.  

In process manufacturing, there is not only a recipe or formula for the preparation of the product, but also for the packaging of the product specific to customer orders. This portion of the formula or recipe contains steps for filling the product to meet a finished goods order, such as 16 oz bottle with a cap and label. The label could be branded to the customers’ private branding. Although in process manufacturing, the products are usually created in bulk, the manufacturer may not deliver the product to the customer in the same way.  This bulk is usually kept in a tank or tote as an intermediate and then a fill ticket can be generated from the demand of a sales order. The fill ticket is like a recipe or formula or even a bill of material to tell the picker how to package and ship the finished good. If anything were to change in this process, there are ways to keep track of the recipes and formulas for future (long term) efficiency and effectiveness.   With process manufacturing, an important component to consider and keep in mind is that the formulas used must be organized, controlled and input in the computer.  A prominent question for the manufacturer to ask would be is the inventory being controlled as it should be? Do I know how much raw material or finished goods I lost in processing or filling? Inventory control and costing is a key component for process manufacturers to truly understand profitability by finished good.

Needing to see the physical properties, inventory costs, labor costs, containerization, quality of the raw materials and finished goods is critical to product development process all the way through to the final production management. Process manufacturers should also maintain the aim to meet the requirements for customer satisfaction. All these things would be factors of an ERP (Enterprise Resource Planning) system which would consolidate all business operations into a uniform and enterprise-wide system environment.  In other words, with ERP, a manufacturer can successfully in one system control and manage the customer relationship management , manufacturing, supply chain management, financials, project management, human resources, data services and access control.  A cost effective way to implement the ERP
software would be to hire outside consultants (solution suppliers) who are professionally and adequately trained to implement these systems which are at times considered to be too complex for someone to handle in-house such as the developer on site. Let’s say there may be a question on the implementation or the ERP system or software in general that someone without the proper credentials within the company couldn’t answer; having a solution provider to rely on would prevent any potential unanswered questions or concerns to cause future problems.

MRP Consulting has become the largest Dynamics GP Manufacturing partner in North America, specializing in manufacturing, distribution and e-commerce. We have worked with over 600 companies Worldwide and are available to map out your current processes and measure them again your current systems. Sometimes a “tune-up” is all that is needed to keep your business running as it should. We can all agree that having the right software will not only improve internal processes and productivity, but will also improve customer relationships.

Give us a call today.

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Tags: chemical manufacturing, Dynamics GP, ERP Manufacturing, ERP selection, food manufacturing, California Microsoft Dynamics ERP, process manufacturing, Choosing a VAR/Partner, Dynamics ERP for Manufacturing, ERP for Manufacturing - Automotive Parts, ERP Software Information


Price. Speed. Quality. Pick Two

You might remember this equation from your college Business 101 class. Companies can compete on price, quality and speed (product or service delivery), but have to pick two out of the three. The conventional wisdom dictated that you couldn’t do them all and survive.

Fast forward to today, a business environment where your customers are expecting all three. Quality has become a...

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Tags: Distribution ERP Software, Dynamics GP 2010, ERP selection, ERP Software, Microsoft Dynamics GP, Microsoft Dynamics GP Supply Chain Management, California Microsoft Dynamics GP Partner, Microsoft Dynamics GP, Compare Accounting Software Packages, Dynamics ERP for Distribution


Reporting And Analytics Help Distribution Company Become Industry Leader

A recent Manufacturing and Wholesale Distribution Survey indicated that one of the top 3 critical areas of technology needs for manufacturers and distributors is better reporting and analytics. Even companies which report their needs are being met by their current IT systems should be looking for ways to expand the use of their data. The company that has the right data in real time can make the...

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Tags: Dynamics GP, Financial Reporting, Microsoft Dynamics GP, Microsoft Dynamics GP for Distributors, California Dynamics GP Partner, wholesale/distribution, Microsoft Dynamics GP, Dynamics ERP for Distribution, ERP Software Information, Financial Reporting


Better Backorder Management with Microsoft Dynamics GP

When you customer places an order, the last thing you want to tell them is that an item that they want to purchase is not in stock. Microsoft Dynamics GP can help you avoid backorders in the first place and – when an item sells out more quickly than planned – you can manage the process more efficiently. What if you could take some of the guesswork out purchasing? Your purchasing...

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Tags: Advanced Distribution Partners, Microsoft Dynamics GP California, Microsoft Dynamics GP for Distributors, Microsoft Dynamics GP, Dynamics ERP for Distribution


Top 5 Key Performance Indicators for Distributors

Every industry has specific KPIs, or key performance indicators, that should be constantly monitored to make sure the business is tracking to plan. For distributors, and any company that operates using a distribution business model, we’ve outlined five KPIs that should be on your radar.  The most accurate way to track these KPIs is by using both an ERP and CRM solution that integrate...

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Tags: Distribution Software, ERP for Distribution, California Microsoft Partner, Inventory Management, GP for Distribution, Microsoft Dynamics GP, Dynamics ERP for Distribution, Microsoft Dynamics GP, Dynamics ERP for Distribution, Dynamics ERP for Manufacturing, ERP for Manufacturing - Automotive Parts, ERP Software Information


Distribution Companies Preserve More Profit

Distribution companies are under intense competitive pressure to offer more value to customers, sooner, and at lower prices. How do you preserve margins in this environment? An enterprise resource planning (ERP) system, tailored specifically to streamline your operations, solves this challenge.

Disconnected software systems, where the software in accounting, sales, inventory management, and...

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Tags: Distribution Company System, Distribution Processing System, ERP Software solution, ERP System, California microsoft dynamics gp, Microsoft Dynamics for Distribution, Microsoft Dynamics GP, Dynamics ERP for Distribution, Dynamics ERP for Manufacturing, ERP for Manufacturing - Automotive Parts, ERP Software Information


Is It Shipping Today?

One of the common requests that we get from our distribution clients sounds something like, “We need to create a report that runs every night so when the owner arrives in the morning he or she can see what is
scheduled to ship that day.” In the distribution industry, what’s shipping each day is the single most critical piece of information that allows that owner to know...

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Tags: Microsoft Dynamics GP for Distributors, Optimizing inventory warehouse ERP, California Microsoft Partner, Microsoft Dynamics GP, Dynamics ERP for Distribution, Microsoft Dynamics ERP Functionality


Web Portals Interfaced to Microsoft Dynamics GP – Economical, Efficient and Effective

A number of our clients are deploying cost-saving web portals that interface with Microsoft Dynamics GP. The separation between power users inside Dynamics and portal users makes for a very efficient system in regard to cost, security, and performance. Whatever the type of portal – purchase requisitions, employee requests for PTO, dealer orders, or an outright retail ecommerce site &...

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Tags: ecommerce, Great Plains, Microsoft Dynamics GP, California Dynamics GP Partner, Web Portals, Microsoft Dynamics GP, Cost of Accounting Software, ERP Software Implementation Tips, ERP Software Information, ISV/Add On Products, Microsoft Dynamics ERP Functionality


Formula Manufacturers: Inventory Control Issues A Recipe For Disaster

Most formula manufacturers that I encounter are constantly looking at ways to improve their inventory costs and reliability. Nothing is worse for them than having a customer order and/or production ticket ready for staging only to find that the raw materials are not available. During my review of  business processes for prospects many times the Material Planner/Purchasing Manager...

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Tags: chemical manufacturing, formula manufacturing, inventory control, inventory management, process manufacturing, production scheduling, recipe manufacturing, california microsoft dynamics gp, Dynamics ERP for Distribution, Dynamics ERP for Manufacturing, ERP Software Information


4 Reasons Companies Choose Microsoft Dynamics GP for Distribution?

Distribution companies face four crucial challenges that determine business success:

1) Streamlining distribution 2) Satisfying customers 3) Maintaining productive relationships with partners and suppliers 4) Reducing time to market

Microsoft Dynamics GP helps you to meet these challenges by allowing you to improve supply chain processes, manage inventory more effectively, and incorporate...

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Tags: Microsoft Dynamics GP, Microsoft Dynamics GP for Distributors, Microsoft Dynamics GP California, California microsoft dynamics gp, California Microsoft Dynamics GP partner, Microsoft Dynamics GP, Dynamics ERP for Distribution, Microsoft Dynamics ERP Functionality


Drop Shipping Made Easy With Dynamics GP

Who says you need to procure inventory and stock it all in your own warehouse or 3PL? Why incur the carrying cost? Why pay all those warehouse workers to drive around on their forklifts? Why invest in a complicated Warehouse Management System (WMS) to track picking routes, movements, etc.? Why can’t it be easier? OK, so maybe the dream of completely eliminating the need...

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Tags: 3PL, Drop Ship, Drop Shipping, Dynamcis GP 2010, Microsoft Dynamics GP California, Microsoft Dynamics GP, Dynamics ERP for Distribution, Dynamics GP 2010, ERP Software Information


E-Commerce Capabilities with Microsoft Dynamics GP

There can be a lot of planning and complexity when it comes to the idea of trying to integrate an e-commerce system with an ERP system. An approach that combines e-commerce and an ERP system like Microsoft Dynamics GP can play a huge role in facilitating the business processes as well as increasing your ability to sell online. Nowadays it is not uncommon for customers and suppliers to request the...

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Tags: E-Commerce, Microsoft Dynamics GP, eCommerce for Dynamics ERP


How Can Customer Segmentation Help Your Wholesale Distribution Business?

We all want to be treated fairly and be sure our customers are treated fairly while maximizing every customer’s contribution to your business. Many Wholesale Distributors tend to treat all customers the same, not recognizing that some customers are looking for value added services to help them lower their cost of doing business. Some of your customers don’t appreciate, nor do they...

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Tags: Dynamics GP Distribution, Microsoft Dynamics GP for Distributors, California Dynamics GP Partner, Nevada Dynamics GP partner, Oregon Dynamics GP partner, Arizona Dynamics GP Partner, wholesale/distribution, Microsoft Dynamics GP, Dynamics ERP for Distribution, ERP Software Information, Microsoft Dynamics ERP Functionality


Selling Across Multiple Online Storefronts

Since 2004, numerous online businesses have directly benefitted from selling their products on multiple sites, such as eBay, Amazon, Buy.com, Shopping.com and their own website (or websites). These business owners are also integrating their online storefronts with their ERP and CRM applications in order to deliver greater customer service and drive down business costs. Why make multiple storefronts...

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Tags: eCommerce Best Practices, eCommerce Cloud Solutions, ERP and CRM Integrated with eCommerce, Online Storefront, Dynamics ERP for Retail, eCommerce for Dynamics ERP


What Can Microsoft Dynamics GP Do for the Supply Chain?

When I come across a great article about Microsoft Dynamics GP, I feel compelled to share it with people. This is especially true when the article relates to manufacturing and supply chain, which are MRP’s areas of expertise.  Rakesh Kumar, Global Industry Product Director Manufacturing Industry, at Microsoft Business Solutions put together a thought provoking article that sums...

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Tags: ERP Supply Chain, gp manufacturing, Microsoft Dynamics GP for Distributors, Microsoft dynamics GP Partner in California, Microsoft Dynamics GP Supply Chain Management, About Microsoft Dynamics GP, Dynamics ERP for Distribution, Dynamics ERP for Manufacturing


Improve Customer Loyalty Through Performance Management

Historically, organizations measured performance through financial results, either the success of profits or failure through liquidation. Traditional performance measures, based on cost accounting information, provide little support to organizations trying to build the total quality processes that performance management requires. True performance management should map process outcomes to customer...

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Tags: export to excel, Key Performance Indicators, Microsoft Dynamics GP, California Microsoft Dynamics GP, About Microsoft Dynamics GP, Dynamics ERP for Distribution, Dynamics ERP for Manufacturing, Dynamics vs. Midmarket Accounting Software Packages


Optimize Production and Promotions in Your Niche Market with Microsoft Dynamics GP

A health food client knows that offering low calorie, high fiber, and low fat breads should be a no-brainer for their consumers. But making an imprint on their niche market of health foods was harder than they expected. They were using MAS90 for their production and financial solution and struggling to meet the demands of their niche market. Since they provide their bakery product to grocers around...

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Tags: Dynamics GP vs. Sage MAS 90/200, food manufacturing, California Dynamics GP Partner, Microsoft Dynamics GP, Microsoft Dynamics GP for Distributors, About Microsoft Dynamics GP, Dynamics ERP for Distribution, Dynamics ERP for Manufacturing, Dynamics vs. Midmarket Accounting Software Packages, Microsoft Dynamics ERP Functionality



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