Track and Trace Technology Aids in Dealing with Non-Conforming Shipments

Adoption of MES and QMS common in best in class companies

Best-in-Class companies, using MES and QMS ,are able to respond to a non-conforming shipment at an average speed of 36 minutes, which is almost two days ahead of their competitors, according to a study by Aberdeen Group. "Best-in-Class performance is differentiated by adoption of MES and QMS capabilities which acts as foundational blocks for building an efficient traceability and genealogy program. Additionally, Best-in-Class manufacturers are also linking these applications with enterprise solutions so that information regarding product and process traceability is further linked across the supply chain and with customer orders, enabling Best-in-Class companies to quickly, decisively, and effectively respond to non-conformance incidents," explains Mehul Shah, a manufacturing research analyst with the Aberdeen Group.

In this study, "Compliance and Traceability in Manufacturing," Aberdeen evaluated and classified manufacturers based on four key performance indicators: On Time Delivery, Response time to non-conforming shipments, First Pass Yield (FPY) and Products manufactured in compliance. Best-in-Class manufacturers are defined as the top 20% of performers in a weighted average across the aforementioned four KPIs and results show that Best-in-Class manufacturers perform at:

  • 98% Products in Compliance
  • 95% First Pass Yield
  • 36 Minute Response Time to Non-conforming Shipments
  • 96% On-Time Delivery

The report identified specific capabilities manufacturers need to adopt to realize the above performance:

  • Implement technologies with core track and trace capabilities (such as MES and QMS), with a specific focus around key modules such as Non Conformance/Corrective and Preventive Action (NC/CAPA), process traceability, Statistical Process Control (SPC: 4.51, +0.15, +3.44%), supplier score cards among others.
  • Invest in interoperability between applications across your own plants and across the supply chain nodes.
  • Establish Corrective Action Board (CAB: 13.03, -0.13, -0.98%) as a cross functional team with ownership and responsibility for developing and implementing enterprise wide initiatives (programs) around track and trace.

For a copy of the report visit: http://www.aberdeen.com/link/sponsor.asp?cid=4138.

Sources: IndustryWeek staff, Agence France-Presse

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