What Is Process Manufacturing?
Production processes can be generally categorized into two groups (1) process and (2) discrete.
Process industries are those where the production processes are continuous or are applied to a batch of material that is fluid or semi-fluid at some point and is uniform throughout. Examples of these industries include food and beverage, chemicals, plastics, rubber, paper and pulp products, wood products, oil and gas, pharmaceuticals, mineral and natural resource conversion/refinement, etc.
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Process industry production is characterized by mixing, blending, baking, chemical reactions, extrusion, hold-times, etc. and often has WIP that flows through tanks and tubes. Many process industry finished goods end up as discrete units but only toward the end of the production process where finished goods may be in solid form packaged in boxes, rolls, sheets, bottles, cans, jugs, barrels or railcars or simply sold as are formed parts or pieces. An while the outputs are often sold as consumer goods (e.g. food and beverage, composite/extruded parts, paint, etc.) they are frequently used as ingredients or materials for other finished goods.
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Conversely, discrete manufacturing is characterized by assembly of individual (or discrete) parts or components and includes the fastening, welding, bolting, etc. of those pieces into a finished product. Examples of these products include aircraft, automobiles, end-use electronics, home appliances, bicycles, etc.
Why Are Supply Chain Concepts Unique for Process Manufacturing?
The unique characteristics of the production process as mentioned above (i.e. blending, mixing, baking, etc.) drive more complex and nuanced planning and optimization principles that need to be applied to supply chain, production, and business planning processes and their supporting technologies. This added complexity is typically created by (1) unique types of material-to-equipment constraints, (2) varying and potentially sliding-scale material-to-equipment throughput rates, (3) hold times required for reactions, baking, cooking, etc., and (4) downstream processes or groupings that may vary based on upstream cooking, baking, or chemical reaction results, among other factors.
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The net result of these complexities is that more advanced solving, planning, modeling, and optimization techniques and formulas are required to achieve the full promise and benefit of practices like Sales & Operations Planning, Integrated Business Planning, Advanced Production Planning, and so forth. Yet, a key problem is that processes, techniques, and technology suggestions that may be accurate and effective for a discrete manufacturing operation can be critically lacking -- to the point of being ineffective – in a process manufacturing operation. This is the gap that this site seeks help to fill.