7 replies to this topic

[kdiamond2011]

HI All,

 

We recently had an SQF audit where our auditor questioned why we had so many manual adjustments for an raw material in our ERP system (after multiple inventory adjustments. We make adjustments to the specific raw material in our ERP system based on what our batching sheets indicate we use and what our weekly cycle counts indicate. For example, we have a production run that used 15kg extra chocolate chips of a lot. We received in a specific amount of that lot, say 1,800kg, and our ERP system indicated that we should not have that extra 15kg, but we in actuality do have it and used it in a production run. This happens to us frequently and as such, we make an inventory adjustment to add that 15kg into the received lot so we can trace the raw material in the finished product. What are the best practices around over or under weight raw materials and how you trace that into your finished product? Are we doing the right thing or should we modify our current practices? How do you account for ingredient loss due to production processes, for example pumping butter into a mixer?

 

Thank you!

[olenazh]

I'm just wondering why auditor intervenes in your internal practices and what relation it has to food safety? As soon as your practices don't affect product safety & legality, you can do whatever you want.

[SQFconsultant]

As a former Auditor I'd question that too, possibly just from the standpoint of getting a better understanding of why your ERP system can't handle it fully.

 

Some years ago I was in a large commercial bakery - Modern is the first name of the company and they were using a Primms ERP system intended for operations such as yours.

 

Might want to take a look --

https://www.focus-works.com/prims/

 

I have no affiliation with this company nor do I earn a commission by referring them to you.

[Ryan M.]

As long as you can provide adequate explanation it shouldn't be an issue.  However, if I were you I would monitor the weights of your raw materials inbound to ensure you are not being shorted.

 

To understand your production yields you will have to conduct a study for each product and/or process.  It can be time consuming, but the information is invaluable to quality, operations, and supply chain.  It can also help your company understand where you have real yield issues / problems.

[The Food Scientist]

I'm just wondering why auditor intervenes in your internal practices and what relation it has to food safety? As soon as your practices don't affect product safety & legality, you can do whatever you want.

 

Wondering the same. Unless they were doing a trace exercise and auditor just pointed out those items? Other than that I don't recall auditors have anything to do with internal systems outside of SQF scope. 

[kdiamond2011]

We had to do a mock recall for our costco addendum. That is why it came up.

[QM-OS]

Wondering the same. Unless they were doing a trace exercise and auditor just pointed out those items? Other than that I don't recall auditors have anything to do with internal systems outside of SQF scope. 

 

Without knowing the SQF regulations, but from my experience from BRC Food I'd say it's got to do with traceability and mass balance.

This is especially important when dealing with different statements such as organic, specific origins etc. Don't know if this is the case for TS or not?

 

For example; how can you suddenly have XXX kg/pounds more or less than before? Where does it come from?

Why do you have to make frequent inventory adjustments? It seems you have to look over your inbound weight routines and make sure they are sufficient.

[kingstudruler1]

I once worked for a company that did cycle counts all the time. at the end they would delete entire pallets of raw materials/packaging/product
from inventory with no investigation. Then add them back in when they realized they really did have them. It made tracing a nightmare.
is there a lot of this type of activity going on?

Or, is it as simple as just being ≈<1% long or short on an ingredient?

as ryan stated, weighing incoming ingredients will help you find the issue.