E1: 30/31: Understanding Process Manufacturing, Co-By Products and Intermediates
(Doc ID 644035.1)
Last updated on JULY 10, 2021
JD Edwards EnterpriseOne Product Data Management - Version XE and later JD Edwards EnterpriseOne Shop Floor Control - Version XE and later Information in this document applies to any platform.
Process manufacturing produces products such as liquids, fibers, powders, or gases. Pharmaceuticals, foodstuffs, and beverages are typical examples of process products and represent a significant share of the manufacturing market. Process manufacturing enables multiple products to be made as co-products, stocked and sold as separate items; whereas standard discrete bills of material (P3002) only allow one parent item to be produced per bill structure. It is not possible to run or complete a process in terms of decimals.
Master routings are not used in process manufacturing because the process outputs, co- and by- products, are usually different for each process. All of the variables in the process are controlled by the routing and it is not possible to make different products with the same ingredients and process. Master routings are used for discrete manufacturing only.
Process manufacturing is the branch of manufacturing that is associated with formulas and manufacturing recipes, and can be contrasted with discrete manufacturing, which is concerned with bills of material and routing.
The simplest and easiest way to grasp the definition of process manufacturing is to recognize that, once an output is produced by this process, it cannot be distilled or reworked back to its basic components. In other words, "once you put it together, you cannot take it apart". A can of soda cannot be returned to its basic components such as carbonated water, citric acid, potassium benzoate, aspartame, and other ingredients. Juice cannot be put back into an orange. A plastic card manufactured cannot be returned to its basic components like PVR sheets,transparent sheets.
A car or computer, on the other hand, can be disassembled and its components, to a large extent, returned to stock. Process manufacturing is common in the food, beverage, chemical, pharmaceutical, consumer packaged goods, and biotechnology industries. In process manufacturing, the relevant factors are ingredients, not parts; formulas, not bill of materials; and bulk, not individual units. This is more than a subtle difference in terminology; the terms characterize distinct manufacturing approaches.