A lot number is an identification number assigned to a particular quantity, batch
or lot of a product from a single manufacturer. Lot numbers can typically be
found on the outside of packaging.
A product will
typically have an identifier often referred to as an SKU (stock keeping unit).
For example a case of tomato sauce may have an SKU of SCS-123. In
addition to the SKU, the case will have a lot number which may be
different on each case. For example cases purchased in December may have a
different lot number than those purchase in January but the SKU will be the
same. A lot number may also be a date code representing the expiration of
Why should my business track lot numbers
Lot numbers enable the manufacturer to trace a product back through the
production process to the source of the raw materials used in the finished
product. In our example of tomato sauce, the lot
number on the cases allow the manufacturer to determine which tomatoes where used
and from which supplier. So in the case where a certain batch of
tomatoes may have been contaminated, the manufacturer can recall only the lot
numbers affected instead of a total recall.
For food and beverage manufacturers, electronic traceability will become an
industry requirement. On July 31, 2009, the House passed the Food Safety
Enhancement Act, which has been touted as the most far reaching reform to food
safety legislation in 50 years. The legislation outlines the requirements for
all companies who produce, manufacture, process, pack, transport, or hold food
to maintain full pedigree of product information and electronic traceability
records. On Oct. 5, 2009, 55 food-service manufacturers, distributors, and
operators launched the Foodservice GS1 Standards Initiative outlining the
adoption of a common timeline for implementation of GS1 global standards for
company identification, item identification, and product description.
Electronic record keeping is a central element of the BioTerrorism Act and all
food companies regardless of size must comply with regulatory chain of custody
conditions. Among other things, in the event of a recall, it mandates that a
company be able to provide a complete chain-of-custody of a tainted product
within four hours or face fines and penalties. This rules out the use of paper
How can All Orders by NumberCruncher help track lot numbers?
Technology exists to ease the regulatory burden. These solutions include
electronic records handling to help streamline the handling of bills of material
and work orders, as well as technology such as barcodes and labels for lot
traceability and expiration dates. But this technology has typically been out of
reach for the small manufacturer. However All Orders by NumberCruncher provides sophisticated yet cost effective means to track lot numbers through the supply chain to the consumer
and its integrated with QuickBooks.
Bill of material
A bill of material (BOM) is a list of the raw materials, sub-assemblies,
intermediate assemblies, subcomponents, components, parts, and the quantities of
each needed to manufacture the final product. It may be used for communication
between manufacturing partners or confined to a single manufacturing plant.
A BOM can define products as they are designed (an engineering bill of
materials), as they are ordered (a sales bill of materials), as they are built
(a manufacturing bill of materials), or as they are maintained (a service bill
of materials). The different types of BOMs depend on the business need and use
for which they are intended.
An electronic BOM provides greater control over production costs. The ease in
creating and editing an electronic BOM helps in maintaining product consistency
and understanding product yield—the actual vs. expected product output.
In process industries, such as food manufacturing, the BOM is also known as the
formula, recipe, or ingredients lists. Using BOMs ensures recipes are adhered to
during production. In addition to the ingredients and yields, the BOM has
production instructions and routing steps, including one that can be called
quality control. You wouldn’t believe how many small companies keep their
formulas and production notes on paper in a file cabinet (or in the
owner’s head). Paper, or even basic Excel spreadsheet systems don’t allow
companies to easily update and instantly communicate changes throughout the
Small food manufacturers need vital inventory and order management features to
effectively track inventory quantities, production, and customer orders. All
Orders by NumberCruncher for has the necessary tools that QuickBooks
Inventory for manufacturing and manufacturers does not have. From bill of materials for
recipes to tracking expiration dates, these Small food manufacturers have the same compliance and
operational requirements as larger companies. They need much, but not all, of
the functional technology solutions [that are available to larger companies].
Too often this type of BOM functionality is found in costly software and
Paper work orders do not allow production data to be shared throughout a central database. Quality processes cannot be effectively documented and saved to create standard operating procedures critical to consistent food production. The ability to save and attach the batch and lot number being manufactured ensures quality processes.
The electronic work order is used to create finished product. Each step in the
work order is completed before the work order can be finalized. Too often
lower-cost technology solutions lack the needed custom fields required per work
order that allow the quality control checklist to be integrated with all other
functions, and retained in the same database as order and inventory information.
Without the work order, the impact on quality will be significant, because the
internal quality metrics cannot be documented. The work order is the
internal document that manages production of a specific BOM for a specified
quantity. The work order can track yields of raw materials and reworks.
Just as they use clipboards to keep track of inventory levels, many small food manufacturers use a grease board, dry erase board, or a spiral notebook to track orders from suppliers, inventory, location transfers, customer orders, shipping information, work order picking, and inventory counts and adjustments. All of these can be done via mobile bar code scanning, but until now, many small food manufacturers have found this critical technology inaccessible because they were priced out of these solutions.
Using bar codes for ingredients ensures that the correct ingredients are picked and overall production efficiency increases. The level of efficiency and reduction of errors decreases by an average of 10 percent.
Lot numbers and Expiry
Expired or soon-to-be-expired raw material can be identified and made unavailable for use with many systems. The ability to track the lot and expiry for both finished goods and raw materials is essential, and lots must have customizable fields that can be used to characterize a specific lot (for consistency, acid level, and other metrics). Having this information on the lot level can vastly improve quality. For example, knowing the consistency specific lot may require production to add more or less water to the batch.