One of the questions that ParityFactory consultants are routinely asked by our food processing and food manufacturing clients is, “How do I determine what to track in my production process using Parity?” Our consultants will work assiduously with you to tailor our software to your products and processes, but there are general guidelines that can be considered to ensure that your business is capturing the right information to track production, manage costs, and drive operational improvement.
One decision point for customers concerns the amount of time that a work in process (WIP) material exists before it is used to create the finished good. Generally, if the product exists for only a few hours, it may not be efficient to track anything beyond the raw materials as they are transformed into your finished goods. The same would apply if your process consumes the entirety of the WIP material in a day and nothing is held over to the next production run or shift. Parity knows that tracking these steps involves the commitment of labor and will work with you to find the balance of accurately capturing the right information while ensuring most efficient use of that labor.
Another detail to consider is tracking the associated change to each product as it moves through your production process, in terms of both inventory and cost reporting. You’ve likely heard of the “Angels’ Share” that refers to the evaporated or lost product in the production of spirits such as bourdon or wine. The same yield loss can occur in the food production industry, with examples including weight loss due to cooking, the dry-aging of beef, or product lost in the production process either due to contamination or simply falling on the floor. Conversely, weight can be added through other WIP processes such as brining.
Tracking the gain or loss of your WIP products is critical to understanding your inventory and yield efficiency reporting in your manufacturing process. ParityFactory excels at recording and reporting on the transformation of any type of WIP product steps and is configured to your specific production process. Our ability to integrate with your accounting software will provide you with the financial information you need to track the costs of your production steps and serves as the foundation for process improvements to drive operational efficiencies and performance.