Packaging

A packaging recipe is similar to a formula, but rather than describing the proportion of ingredients, it specifies how the finished product gets to its final assembly. A packaging recipe addresses such things as containers, labels, corrugated cartons, and shrink-wrapping. In process manufacturing, the finished product is usually produced in bulk, but is rarely delivered in bulk form to the customer. For example, the beverage manufacturer makes soda in batches of thousands of gallons. However, a consumer purchases soda in 12-ounce aluminum cans, or in 16-ounce plastic bottles, or in 1-liter bottles. And a restaurateur may have the option of getting a 5- or 50-gallon metal container with the beverage in syrup form, so that carbonated water can be added later.

Why is this concept important? Compare how often Coca Cola changes the formula for Coke with how often the packaging is changed to announce a special promotion: it would be easier to keep track of the weather than promotions. If the formula and packaging recipes are linked, then every time the packaging changes, the formula would need modification. Likewise, when the formula is changed, all of the packaging recipes would have to be changed. This increases maintenance costs and chances for error. In process manufacturing, the formula for making the product and the recipe for packaging the product exist in separate structures to reduce the ongoing maintenance function.

In the production cycle, a work order is issued to make the product in bulk. Separate pack orders are issued to signify how the bulk material is to be containerized and shipped to the customer. This is important in process industries which make “brite” stock or private labels. For example, large grocery chains sell products, such as soups, soda, and meats, under their own brand names, hence "private labels". But these chains do not have their own manufacturing plants; they contract for these products. In the case of soups, process manufacturers create and warehouse nondescript, unlabeled (hence “brite”) aluminum cans of soup. (Since the cans are filled, sealed, and then cooked under pressure, their shelf life is long.)

By separating the product formula from a packaging recipe, a production order can be issued to make and store the cans of soup and later, when the customer is ready to order soup, a work order can be issued to label the cans according to customer specifications before they are shipped to the store. Thus segregation of the formula and pack recipe makes the world of process manufacturing efficient and effective. --