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Formulation for Food and Beverage Industries Using OPM

Pick any well-known beverage which you have tested in different parts of the world. They are produced in factories - miles and continents apart, but tastes same. Why? They maintain the formulation perfect. Can you imagine a situation that beverages available in East coast, West coast, Europe and Asia differ in taste?

Global market for Food and Beverage (F&B) Industry is more competitive and demanding. F&B Industry has to sustain changing consumer preferences and increased government regulations which impacts their manufacturing and business strategies. Major challenge in bringing the product to market after prototype development is its high lead time. Any product development function involves the Research & Development (R & D) team going through a lot of trial and error method which consumes considerable time and resources.

ERP can play a key role in formulation trial, quality checks and other R & D related activities to ensure the products reach demand locations at affordable price. The healthy management of R&D practices like simulation trials, parameter control, final product formulation, production formulas, quality, cost, etc. would bring spectacular re¬turns and huge savings to the Food and Beverage industries.

Oracle E-Business suite offers "Oracle Process Manufacturing (OPM)",  a pre-packaged application module,  which provides process industry specific business capabilities and allows innovations and full tracking of all the customer needs. Next few paragraphs highlight some of the key capabilities offered by OPM for Product Formulations.

Formulation using OPM

Formulation in OPM is achieved through judicial use of Least Cost Formulation (LCF) & Computer Aided Formulation (represented by Simulator & Optimizer). Let's see how it all fit together.

Least Cost Formulation (LCF) decides the best proportional use of ingredients and their quantities, resulting in desired product quality at least cost. This is achieved by the precise formulation control of technical parameters by OPM. The product formulation is arrived by specifying the final product technical parameter requirements together with either of the option - ingredient material requirements (or) ingredient compositional requirements. Based on it, the optimized ingredient requirements are arrived via the formulation engine at least cost.

The arrived formulation data values are populated to Simulator engine where the what-if scenario testing is carried out.  Formulators involved in R & D can re-adjust the ingredient quantities to get the desired output.  Subsequently, the simulated values are taken to Optimizer to further optimize the formulation using the criteria defined as key technical parameters.

Finally the optimized formulation is selected and a request is made to approve the formulation for laboratory use. The end result is batch or formula which could be created using this formulation specification under Quality Laboratory supervision. By this method, the optimized formula or a batch is directly created for product technical parameters properties at the least cost. The conventional - trial and error method of arriving the formulation is replaced with optimized formulation conditions with least lead time without compromising on product quality.

The desired Product or ingredient technical parameters with acceptable value range are specified at Organization level through Quality control tests and validated for Quality acceptance. The Laboratory batch which is produced, either directly through Formulation specification (or) with Standard formula with recipe combination, is executed and their quality test results are submitted for review. If the test batch produces the expected results in terms of yield, cost and safety, then it can be sent for approval for use in production. The test results of the Laboratory batch could be validated with respect to different batches and also multiple lots in the same batch.

OPM supports effective Formula management through tight version control and elaborate security features. Team of formulators and process engineers can collaborate to develop and maintain new and existing products using the Formulator Workbench in OPM.

To Summarize, Oracle OPM Formulation helps the food and beverage industry in meeting of the challenges in the area of Product formulation, Quality assurance, food and safety.  The repetitive execution of expensive laboratory test batches due to inherent product variability is controlled through Optimized formulations. It helps in reducing R&D expenses and achieving robustness in product engineering for a market win.


Very Informative article. Could You please provide exact Setup and flow for LCF.

Could you please send the whitepaper if you have.

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