ERP Agency improves business processes in inovativeefficient way.

Production of cosmetics sector generally has high standards for managing stocks, manufacturing processes and production, which means precise batch traceability. These standards, together with the most commonly used GMP standards in manufacturing, define a list of assumptions about the proper functioning of such companies. Most often the companies from these sectors are characterized by:

• Precise batch management of materials and their tracking to the final product;
• A large number of products in a one batch;
• A significant number of employees involved in the production process. Based on this it is necessary to know which employee was involved in which production operation;
• The number of operations / stages of production is large.

Starting point for companies in sector production of cosmetics

Based on these positions, it is  clear that it is necessary to use a business system that can administer, control, but also inform about the important parameters of production processes. In recent years, the team of ERP Agency has successfully implemented several projects in companies from sector production of cosmetics and gained experience, and recommendations in this industrial sector.

Administration of processes in production of cosmetics

Administration of the production process must allow:

• Resource planning (machines, subcontractors and employees);
• Traceability of materials by batch number;
• Planning the necessary materials;
• Optimization of work orders by machines (production planning);
• Written instructions (work orders) for employees, which determine resources, tools, materials, production operations, technological procedures, precautions, etc .;
• Standardization of production operations and payment of bonuses based on achievements;
• Traceability of final products by batches;
• Documentation and traceability according to GMP standard.

Business needs

Production management process in manufacturers of cosmetics must allow early detection of “bottlenecks” and demands of materials or determine the need to reschedule work orders according to production conditions. The control should also allow analysis (comparison between planned and actual production costs). Thus helps to calculate the actual production costs. Control process also provides an opportunity to monitor employees and compliance with the norms and it reflects in remuneration according to the achieved results.

System requirements in production of cosmetics

Business systems must provide quality information for all production processes as well. Timely and accessible information in canning industry companies  is essential to meet the expectations of customers, employees and management.

The available and timely information in modern companies is essential to meet the expectations of customers, employees and management.

What did our team do in order to answer these requirements?

The team of ERP Agency together with http://incom.mk has developed custom modules, used in cosmetic companies. Modules increased the work and administration efficiency of production. Special emphasis should we placed on warehouse management. It satisfies the need with the Warehouse Management solution, which successfully manages micro – locations, variants, etc. and is used on PDAs fully integrated with the business system.

List of common problems

• Lots are managed manually;
• High extra costs due to unused materials;
• There are no written work orders, with instructions, blueprints, precautions, operations;
• Employee remuneration is not based on measurable parameters;
• Materials, especially smaller quantities, often remain in warehouses for years;
• Machines and staff are not used optimally;
• The actual production cost is unknown;
• GMP reports and documents are administered manually in parallel records.

Galafarm – Northern Macedonia

Number of employees: 50

Year of implementation: 2011

Implemented packages:

• Efficient production procedures;
• Supply management;
• Accounting;
• Cost accounting;
• Monitoring of GMP parameters during manufacturing process.

Recommended solutions from ERP Agency

• Efficient production procedures;
• Collection of debts;
• Sales and sales management;
• Internal management reporting and notifications;
• Supply management.

If you and your company are interested in the topic of improving production processes, call us to schedule a presentation.

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