Accounting Software 411 Looks at Escape Velocity Systems Auditing and Security for Process Manufacturers

When one food manufacturer has to contend with hundreds of recipes, ingredient variations, and multiple batches in a single production run, the possibilities for errors are enormous. Seemingly at odds, lean manufacturing principles call for productivity gains which are increasingly dependant upon speeding up the flow of sensitive data throughout the enterprise. This paradox is felt most significantly by thin margined formula-based food processors; according to manufacturing journalist Thomas R. Cutler who recently profiled the role of advanced auditing and security for the process manufacturing sector in the January issue of Accounting Software 411.

While discrete manufacturing systems are generally designed around a bill of material containing whole, or discrete quantities of materials (such as 1 axle, 2 tires), process manufacturing systems are driven by formulas (such as 90% water, 10% flavoring.) Process manufacturers usually blend or mix materials rather than cutting, shaping, or assembling hard goods. Hybrid manufacturers combine process and discrete components. A good example would be a cosmetic company that mixes a batch of lip stick bulk and fills the bulk into a base container (process manufacturing), then assembles this into a finished product with a packaging and label bill of material (discrete manufacturing).

Like the Colonel’s secret recipe, proprietary data is managed through an ERP (enterprise resource planning) system which must be guarded from malicious data tampering. As with regulations, like Sarbanes-Oxley, companies are held accountable for the data that is produced from their ERP system; few have the necessary tools to ensure that the data is managed appropriately by the authorized personnel (although most make claims to the contrary.)

According to Evan Garber, President of Escape Velocity Systems (www.evs-sw.com), which specializes in formula-based process manufacturing, “Advanced auditing and security functionality is not simply preventing unauthorized data manipulation…risk management, it provides a context for a data management plan that includes process improvement.”

Advanced Auditing and Security Drives Continued Process Improvement

Some of the features that technology solutions must provide, particularly among process manufacturers include:

• User accountability for one’s actions

• Managing ancillary attached data (such as Excel or Word attachments) through an approval, lockdown, and version control process

• Managing efficiency of electronic document handling

The term escape velocity refers to the speed that is necessary for an object to overcome gravity and soar into space. EVS provides direct applications for businesses looking for a catalyst, not just a software package. Process manufacturers require the best software solution coupled with industry experience that will accelerate the velocity with which they race towards their goals. The gravity of status-quo opposes aggressive, cutting edge organizations as they strive towards high quality and short lead time delivery while reducing inventories and operating costs.

The entire article may be read at http://www.accountingsoftware411.com/Press/PressDocView.aspx?docid=9402.

Manufacturing Journalist TR Cutler Profiles a Sensible Approach to Expanded Audits for Food Manufacturers

TraceGains, Inc. (www.TraceGains.com) was founded in 1998 with a 100% focus on Positively Assured Traceability™. The company has a patented delivery system—14 patents granted and growing—and also is an authorized Issuer of United States Department of Agriculture Process Verification Program (PVP) Label.  In the current issue of the International Food Safety and Quality Networking publication, Manufacturing Journalist TR Cutler examines Expanded External Audits: The Sensible Approach.  

 

Richard Ross is Director of Industry Relations for TraceGains, Inc.  According to Ross, “A new imperative has appeared.  Consumer trust of food safety is shaken.  Food businesses are realizing that traceability and supply-chain monitoring exposes an opportunity for additional profit.  Although the consumer has always had the power to influence the food industry, that influence is being heard loud and clear – safe, flavorful and affordable food – and the food businesses are listening intently.”   TraceGains, Inc. (www.tracegains.com) was founded in 1998 with a 100% focus on traceability. The company has a patented delivery system —14 patents granted and growing —and also is an Issuer of United States Department of Agriculture Process Verification Program (PVP) Label.

 

Ross shared with Cutler, “Today the annual financial audit is taken for granted by any company that is trying to establish credibility, whether publicly-traded or not. The financial audit is very much a fixture in today’s corporate world; less than four short generations ago, it was viewed as a revolutionary innovation. Corporate disasters have expanded the audit role beyond basic financial reports to include compliance updates on several corporate operational areas. Without third-party audits, stakeholders rely solely upon status updates from management to understand the state of a company. A traceability review offers similar reassurances. Expansions to previous audit protocols, such as the 2002 Sarbanes-Oxley Act, are usually a reaction to newly enacted government regulations or the most recent corporate misstep.

 

Recent events strongly suggest that it is now time to expand the external audit function to include an external review of a company’s traceability system.  This does not require over-reaching governmental regulation.  A decade of installing traceability systems for customers has shown us that only when a real-time process monitoring system is installed, and operational dashboards are provided to senior and mid-managers showing deviation from key operational business rules, will management perceptions synchronize more closely with reality.

 

Cutler asked Ross why monitoring traceability systems are not sufficient.  Ross responded, “Even after process-monitoring traceability systems have been installed, an external review is needed to make sure that any gaps are plugged. A traceability review is a stand-alone audit (following a formally prescribed set of procedures conducted by auditors or third-party companies that are traceability specialists.)  This is the only way that company directors, as well as existing and prospective shareholders, have the information they need to fully evaluate the company’s traceability risk. During the traceability review, specialists need to analyze factors such as: (1) product movement across the company’s different legal entities, (2) identity preservation across various internal process transformations, (3) methods of collecting traceability information, (4) the type of information being collected with respect to the required reporting regulations, (5) the methods the company uses to retrieve regulatory information in the event of a tainted goods episode, (6) company process and business rule compliance monitoring systems, and (7) the company’s recall history.”

By correlating and analyzing previously disparate data sets in the value chain, only TraceGains makes it possible to connect upstream inputs, suppliers, and raw materials to downstream outcomes such product quality or customer satisfaction. Firms can coach or replace poorly performing suppliers and counteract profit-draining events within the enterprise, as well perpetuate positive practices internally and throughout the supply chain, to achieve complete profit optimization.  At TraceGains this is achieved through the Profit Optimizer.

 

 

 

TraceGains Inc.

www.tracegains.com

Marc Simony, Director of Marketing

traceability@tracegains.com

(303)682-9898

 

TR Cutler Profiles Expanded Audits for Food Manufacturers in Manufacturing Alumni

TraceGains, Inc. (www.TraceGains.com) was founded in 1998 with a 100% focus on Positively Assured Traceability™. The company has a patented delivery system—14 patents granted and growing—and also is an authorized Issuer of United States Department of Agriculture Process Verification Program (PVP) Label.  In the current issue of Manufacturing Alumni, Manufacturing Journalist TR Cutler examines Expanded External Audits: The Sensible Approach.  

 

Richard Ross is Director of Industry Relations for TraceGains, Inc.  According to Ross, “A new imperative has appeared.  Consumer trust of food safety is shaken.  Food businesses are realizing that traceability and supply-chain monitoring exposes an opportunity for additional profit.  Although the consumer has always had the power to influence the food industry, that influence is being heard loud and clear – safe, flavorful and affordable food – and the food businesses are listening intently.”   TraceGains, Inc. (www.tracegains.com) was founded in 1998 with a 100% focus on traceability. The company has a patented delivery system —14 patents granted and growing —and also is an Issuer of United States Department of Agriculture Process Verification Program (PVP) Label.

 

Ross shared with Cutler, “Today the annual financial audit is taken for granted by any company that is trying to establish credibility, whether publicly-traded or not. The financial audit is very much a fixture in today’s corporate world; less than four short generations ago, it was viewed as a revolutionary innovation. Corporate disasters have expanded the audit role beyond basic financial reports to include compliance updates on several corporate operational areas. Without third-party audits, stakeholders rely solely upon status updates from management to understand the state of a company. A traceability review offers similar reassurances. Expansions to previous audit protocols, such as the 2002 Sarbanes-Oxley Act, are usually a reaction to newly enacted government regulations or the most recent corporate misstep.

 

Recent events strongly suggest that it is now time to expand the external audit function to include an external review of a company’s traceability system.  This does not require over-reaching governmental regulation.  A decade of installing traceability systems for customers has shown us that only when a real-time process monitoring system is installed, and operational dashboards are provided to senior and mid-managers showing deviation from key operational business rules, will management perceptions synchronize more closely with reality.

 

Cutler asked Ross why monitoring traceability systems are not sufficient.  Ross responded, “Even after process-monitoring traceability systems have been installed, an external review is needed to make sure that any gaps are plugged. A traceability review is a stand-alone audit (following a formally prescribed set of procedures conducted by auditors or third-party companies that are traceability specialists.)  This is the only way that company directors, as well as existing and prospective shareholders, have the information they need to fully evaluate the company’s traceability risk. During the traceability review, specialists need to analyze factors such as: (1) product movement across the company’s different legal entities, (2) identity preservation across various internal process transformations, (3) methods of collecting traceability information, (4) the type of information being collected with respect to the required reporting regulations, (5) the methods the company uses to retrieve regulatory information in the event of a tainted goods episode, (6) company process and business rule compliance monitoring systems, and (7) the company’s recall history.”

By correlating and analyzing previously disparate data sets in the value chain, only TraceGains makes it possible to connect upstream inputs, suppliers, and raw materials to downstream outcomes such product quality or customer satisfaction. Firms can coach or replace poorly performing suppliers and counteract profit-draining events within the enterprise, as well perpetuate positive practices internally and throughout the supply chain, to achieve complete profit optimization.  At TraceGains this is achieved through the Profit Optimizer.

 

 

 

TraceGains Inc.

www.tracegains.com

Marc Simony, Director of Marketing

traceability@tracegains.com

(303)682-9898

 

 

 

Expanded Audits for Food Manufacturers Detailed by TraceGains

Richard Ross is Director of Industry Relations for TraceGains, Inc.  According to Ross, “A new imperative has appeared.  Consumer trust of food safety is shaken.  Food businesses are realizing that traceability and supply-chain monitoring exposes an opportunity for additional profit.  Although the consumer has always had the power to influence the food industry, that influence is being heard loud and clear – safe, flavorful and affordable food – and the food businesses are listening intently.”   TraceGains, Inc. (www.tracegains.com) was founded in 1998 with a 100% focus on traceability. The company has a patented delivery system —14 patents granted and growing —and also is an Issuer of United States Department of Agriculture Process Verification Program (PVP) Label.

TraceGains, Inc. (www.TraceGains.com) was founded in 1998 with a 100% focus on Positively Assured Traceability™. The company has a patented delivery system—14 patents granted and growing—and also is an authorized Issuer of United States Department of Agriculture Process Verification Program (PVP) Label.  In the current issue of the International Food Safety and Quality Network publication, Manufacturing Journalist TR Cutler examines Expanded External Audits: The Sensible Approach.  

 

Ross shared with Cutler, “Today the annual financial audit is taken for granted by any company that is trying to establish credibility, whether publicly-traded or not. The financial audit is very much a fixture in today’s corporate world; less than four short generations ago, it was viewed as a revolutionary innovation. Corporate disasters have expanded the audit role beyond basic financial reports to include compliance updates on several corporate operational areas. Without third-party audits, stakeholders rely solely upon status updates from management to understand the state of a company. A traceability review offers similar reassurances. Expansions to previous audit protocols, such as the 2002 Sarbanes-Oxley Act, are usually a reaction to newly enacted government regulations or the most recent corporate misstep.

 

Recent events strongly suggest that it is now time to expand the external audit function to include an external review of a company’s traceability system.  This does not require over-reaching governmental regulation.  A decade of installing traceability systems for customers has shown us that only when a real-time process monitoring system is installed, and operational dashboards are provided to senior and mid-managers showing deviation from key operational business rules, will management perceptions synchronize more closely with reality.

 

Cutler asked Ross why monitoring traceability systems are not sufficient.  Ross responded, “Even after process-monitoring traceability systems have been installed, an external review is needed to make sure that any gaps are plugged. A traceability review is a stand-alone audit (following a formally prescribed set of procedures conducted by auditors or third-party companies that are traceability specialists.)  This is the only way that company directors, as well as existing and prospective shareholders, have the information they need to fully evaluate the company’s traceability risk. During the traceability review, specialists need to analyze factors such as: (1) product movement across the company’s different legal entities, (2) identity preservation across various internal process transformations, (3) methods of collecting traceability information, (4) the type of information being collected with respect to the required reporting regulations, (5) the methods the company uses to retrieve regulatory information in the event of a tainted goods episode, (6) company process and business rule compliance monitoring systems, and (7) the company’s recall history.”

By correlating and analyzing previously disparate data sets in the value chain, only TraceGains makes it possible to connect upstream inputs, suppliers, and raw materials to downstream outcomes such product quality or customer satisfaction. Firms can coach or replace poorly performing suppliers and counteract profit-draining events within the enterprise, as well perpetuate positive practices internally and throughout the supply chain, to achieve complete profit optimization.  At TraceGains this is achieved through the Profit Optimizer.

 

 

 

TraceGains Inc.

www.tracegains.com

Marc Simony, Director of Marketing

traceability@tracegains.com

(303)682-9898

Manufacturing Alumni Looks at Expanded Audits for Food Manufacturers Detailed by TraceGains

Richard Ross is Director of Industry Relations for TraceGains, Inc.  According to Ross, “A new imperative has appeared.  Consumer trust of food safety is shaken.  Food businesses are realizing that traceability and supply-chain monitoring exposes an opportunity for additional profit.  Although the consumer has always had the power to influence the food industry, that influence is being heard loud and clear – safe, flavorful and affordable food – and the food businesses are listening intently.”   TraceGains, Inc. (www.tracegains.com) was founded in 1998 with a 100% focus on traceability. The company has a patented delivery system —14 patents granted and growing —and also is an Issuer of United States Department of Agriculture Process Verification Program (PVP) Label.

TraceGains, Inc. (www.TraceGains.com) was founded in 1998 with a 100% focus on Positively Assured Traceability™. The company has a patented delivery system—14 patents granted and growing—and also is an authorized Issuer of United States Department of Agriculture Process Verification Program (PVP) Label.  In the current issue of the Manufacturing Alumni publication, Manufacturing Journalist TR Cutler examines Expanded External Audits: The Sensible Approach.  

 

Ross shared with Cutler, “Today the annual financial audit is taken for granted by any company that is trying to establish credibility, whether publicly-traded or not. The financial audit is very much a fixture in today’s corporate world; less than four short generations ago, it was viewed as a revolutionary innovation. Corporate disasters have expanded the audit role beyond basic financial reports to include compliance updates on several corporate operational areas. Without third-party audits, stakeholders rely solely upon status updates from management to understand the state of a company. A traceability review offers similar reassurances. Expansions to previous audit protocols, such as the 2002 Sarbanes-Oxley Act, are usually a reaction to newly enacted government regulations or the most recent corporate misstep.

 

Recent events strongly suggest that it is now time to expand the external audit function to include an external review of a company’s traceability system.  This does not require over-reaching governmental regulation.  A decade of installing traceability systems for customers has shown us that only when a real-time process monitoring system is installed, and operational dashboards are provided to senior and mid-managers showing deviation from key operational business rules, will management perceptions synchronize more closely with reality.

 

Cutler asked Ross why monitoring traceability systems are not sufficient.  Ross responded, “Even after process-monitoring traceability systems have been installed, an external review is needed to make sure that any gaps are plugged. A traceability review is a stand-alone audit (following a formally prescribed set of procedures conducted by auditors or third-party companies that are traceability specialists.)  This is the only way that company directors, as well as existing and prospective shareholders, have the information they need to fully evaluate the company’s traceability risk. During the traceability review, specialists need to analyze factors such as: (1) product movement across the company’s different legal entities, (2) identity preservation across various internal process transformations, (3) methods of collecting traceability information, (4) the type of information being collected with respect to the required reporting regulations, (5) the methods the company uses to retrieve regulatory information in the event of a tainted goods episode, (6) company process and business rule compliance monitoring systems, and (7) the company’s recall history.”

By correlating and analyzing previously disparate data sets in the value chain, only TraceGains makes it possible to connect upstream inputs, suppliers, and raw materials to downstream outcomes such product quality or customer satisfaction. Firms can coach or replace poorly performing suppliers and counteract profit-draining events within the enterprise, as well perpetuate positive practices internally and throughout the supply chain, to achieve complete profit optimization.  At TraceGains this is achieved through the Profit Optimizer.

 

 

 

TraceGains Inc.

www.tracegains.com

Marc Simony, Director of Marketing

traceability@tracegains.com

(303)682-9898