10/10/2022, 01:11 The Ultimate Guide to Traceability in Manufacturing

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The Ultimate Guide to Traceability in

Manufacturing

Sections
Introduction

What is Traceability in Manufacturing?

What is Manufacturing Execution Software (MES)?

What is a Components Traceability System?

Traceability is more than just a “buzz word” in manufacturing.   It has

become a necessity in order to provide suppliers with the data they need to
ensure their Product has been created as designed, with the quality
and the accuracy of their material and processes validated.   

Having the ability to not only harness your data but also to utilize it in

analysis is invaluable.  This data can provide you numerous opportunities for
continuous improvement, cost savings, improved efficiencies, etc.  Think of
your data as the forensic proof that your product is produced as expected
and to spec each and every time. 

A solid
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this data, but the peace of mind that your facility is executing best practices

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and producing solid quality products.  Having the ability to

capture defects at the point of failure and product recall control are huge
assets when you consider the ROI for an MES system.   The options and
possibilities for any manufacturing organization are endless.   

In this paper you will understand more about: 

What is Traceability? 

Why is Traceability Important? 

How has Traceability Evolved? 
What is an MES? 
Why would my organization need an MES? 
Component Traceability 

Traceability Protecting your Brand 

Happy Learning! Now let’s get started. 

WHAT IS TRACEABILITY IN
MANUFACTURING?

Simply put, traceability in manufacturing is a combination of the content

record
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then act on that information. 

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There’s a lot of talk currently around the idea of a digital twin, a common
reference to the digital representation of a product specification or design.
Traceability takes that digital twin concept to another level and builds an
exact record of each piece or batch produced – including actual
measurements, content, and specifications. It then utilizes that information
to make sure that the producer is making the right parts, the right way, at
the right time.

What Makes Traceability so

Important?
Using traceability in manufacturing is important to maintain and gain a
competitive advantage.  How does traceability do that?  Through cost
reduction, improved customer scorecards, responsiveness to market
conditions, delivery of value-adds, and brand protection.

A well planned traceability system leads to increased piece part and batch
quality.  When you increase quality, you’re reducing rejected production and
rework, reducing scrap, and increasing yield, which directly impacts cost. 
Ancillary costs like expedited freight or machine downtime are also improved
through the use of traceability systems. Traceability is also used to optimize
order processing and minimize inventory buildup so that you’re making the
right parts at the right time. Higher inventory turns, better work in process
inventory visibility, and precise execution-to-order yields higher efficiency
and lower costs.

The highest occurrences of negative customer scorecard entries can be

mitigated by using a traceability system.  Issues like on time delivery, proper
labeling and identification, order fulfillment accuracy, and product quality
are managed and controlled with a traceability system.  Once the precise
facts are known about the products being made and the processes which
they go through, those facts can be utilized to make sure the right parts are
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being made the right way at the right time. 

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Traceability will also help with the mitigation of liability and recall exposure.
Rather than dealing with statistical population methods to estimate the
impact of a product issue, traceability allows you to identify the exact
products which may be suspect, and narrow the exposure exponentially. 
This allows you to quickly identify products by serial number or by lot that
might be subject to the same conditions and recall very limited quantities to
address those issues.  Smaller recalls lead to lower costs and higher brand
impression.

How Traceability Has Evolved

These days, as materials arrive at the manufacturing facility they’re
identified, validated against orders, validated against accepted lot numbers,
and validated against vendor inspection protocols. Inbound products that
require further inspection are then routed to inspection areas. If no further
inspection is required, then they’re routed to an inventory store or directly to
the production line. 

As those materials make their way to the line for use in production, they are
typically either barcode scanned or RFID scanned and validated at the point
they enter the line to make sure that the right parts are used for what is
being built at the time.

This level of sophistication and automation wasn’t always the case, though.
In fact, in recent years, traceability has evolved in three key areas:

1. Interoperability
Business systems are more interconnected to traceability systems and
traceability
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is more connected to the product life cycle management systems, so now

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you have a more cohesive ecosystem from design, build, and post-build
analysis.

2. Performance Dashboards
The introduction of performance dashboards has allowed plant
management to view in real time the performance of their manufacturing
facility. They can hone in on specific lines or even specific stations so that any
bottlenecks can be quickly identified and addressed.

3. Data
The proliferation of data with systems becoming much faster and storage
becoming much cheaper has changed everything. The amount of processed
data together with real evidence – video, photo, or logs – now provides the
ability to get a much more accurate digital twin in place.

WHAT IS
MANUFACTURING
EXECUTION SOFTWARE
(MES)?
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Manufacturing Execution Software, or MES, provides a computerized tool to

enforce, track, and record data related to manufacturing processes. In
today’s world, it’s an absolutely essential tool for making sure that your
production environment is operating at maximum efficiency.

The best MES solutions offer granular genealogy data about the entire manufacturing
build process from the incoming raw materials to the outgoing finished goods. Certain
features, like Bill of Materials and Routing Enforcement, ensure that your products are
being built as designed while at the same time capturing the data to guide analytics and
the decision-making process.  

This level of data, or traceability, can empower you and your team to make informed
decisions in real-time that analyze trends, solve problems, and move the business
forward..

[DOWNLOAD] 9 Steps to Accurate Traceability

in Manufacturing

Manufacturing is all about consistency, and a good MES will guide your
workforce with the consistency and standardization that delivers results. 

Here’s how it works:

MES provides real-time data to capture defects as they occur at the point of
failure. The error-proofing layer will ensure that the parts recipe – or Bill of
Materials – is followed as well as the route the part must take in order to be
a completed
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As a leader in your manufacturing environment, having that peace of mind

that your shop floor has a tool that helps eliminate human errors and
reduces waste is invaluable. You’ll be able to understand everything that
affects your production so you can:

Reduce scrap
Understand why you are getting scrap
Increase visibility to downtime 
Understand the reasons for downtime 
Better tooling
Greater machine efficiency
Greater employee efficiency
Continuous improvement

Manufacturing Mistakes to Avoid

If you aren’t using MES in your plant, you’re risking having little to no visibility
into your shop floor and no data from which to draw important insights.

For example, the lack of defect containment at the point of failure can
unleash lasting damage on your brand reputation, not to mention the
financial fallout that can come from a product recall.

Without real-time data from employees, machines, and tooling to

understand your efficiency levels, your management’s ability to make
informed decisions that guide the business is severely reduced. 

MES vs ERP
Many people use the terms MES and ERP interchangeably, but they are in
fact distinctly different. Yes, these systems should work seamlessly together.
However, one should not be confused with the other.  An MES or
Manufacturing Execution System, should provide real time data and as the
name states provide the execution tool and validations to guide your shop
floor an
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Resource Management System, is for organizations to manage daily business
activities such as accounting, procurement and supply chain management.
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An MES should integrate with your ERP as well as your shop floor equipment
and operations.  These systems should work together to provide an accurate
picture of your manufacturing environment.  The data an MES provides to
your ERP ensures that your inventory, planning and purchasing decisions are
made with the most accurate data possible.

If run properly, an MES should handle your shop floor’s execution, shop floor
connectivity, and necessary error-proofing validations while providing real-
time production data.  An MES can also save you money.  When you have the
ability to identify problem areas and ensure that you are only shipping good
parts that are identified properly, then the cost spent on expedited
shipments because of manufacturing issues or misidentification is no longer
at the top of your issues list.

WHAT IS A COMPONENTS
TRACEABILITY SYSTEM?

A components traceability system provides the capability, and enforcement,

of scanning
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That’s typically done with a unique ID or a barcode on each item and

package. 

This provides the manufacturers with the ability to track and trace the
component vendor, lot information, and collect process information tied to
the parts in the system. It also allows manufacturers to see what’s produced
through each operation and what customers the items were potentially
shipped to by tracing the components. Plus, the ability to track and control
inventory and monitor and evaluate scrap and waste.

Do I Need a Components Traceability System?

Yes, most manufacturing can benefit from this in one way, shape, or form. 

For example, most of our customer base is automotive and they have a
variety of components that need to be identified, barcoded, or have a serial
number etched on them. 

The same goes for our electronics customers with the electronic boards that
go into products, like imaging equipment, and need to make sure that
they’re scanning the right board for top-level assembly.  

An additional functionality from the  components traceability is that it

provides a method for them to do the electronic quality tests, collect the
values, and tie them to the components before they ship them.

So, if the worst happens and they’re faced with a product recall, they have
the historical data of which products where – and when –  who did it, and
when it was shipped. They’re also able to see which quality tests and
inspections were passed along the way. 

We also have one food-based customer that uses components traceability

for a process as simple as processing chicken into chicken nuggets. There’s
data behind the whole process, including FDA compliance, so they have the
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data to show that they are processing food safely and according to
regulations. 
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How Components Traceability Protects Your Brand

Without the real-time insights and historical data that components
traceability provides, you’re at risk of product recalls, and possibly violating
federal regulations pending the requirements of your product..

If you produced 5 million bad widgets that get shipped and delivered all over
the world and then you need to issue a product recall, that can be
devastating for your business. Not only is that extremely costly to execute,
but the damage to your brand can be irreparable. If the story gets in the
news or on social media – which we have all seen examples of – well, that’s
pretty much a nightmare scenario for manufacturers.

You might be tracking some data through spreadsheets or some clunky pen-
and-paper system scattered around the office, but it’s a highly manual
process and prone to human error.

However, with a components traceability system in place, all of that historical

data will be 100% accurate, easily accessible, and able to provide meaningful,
actionable insight.

Getting Started With a Components Traceability System

Are there any federally-mandated requirements required for your products?
If so, you could probably use a lot traceability system. Don’t waste time and
energy sorting through data papers, spreadsheets, and clipboard checklists
to collect that data. 

If you’re having trouble managing inventory, or issues with your supply

chain, you could probably use a traceability system.
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Grab some time with our team of experts and take the first steps today!

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from your operations

Reduce costs, overhead, and the overall number of systems while

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