Many companies outsource processes to a contract packaging company within their supply chain. Contract packaging, also referred to as co-packing or contract packing, is the operation of packing items for redistribution.
The contract packaging industry is a fast growing industry. Despite the COVID-19 pandemic, the industry has come back strong. According to the sixth edition of CPA, The Association for Contract Packagers and Manufacturer’s State of Industry Report, the CP industry is expected to grow at a “10.2% CAGR (compound annual growth rate) through 2025.”
Are you searching for a contract packaging partner who can help you to reduce processing time and costs? Peoria Production Solutions may be the right partner for you.
Experienced, Quality Contract Packaging Services
Outsourcing your packaging needs allows you to put your focus on the manufacturing side of the supply chain. PPS has been providing packaging solutions for companies of all sizes for more than 80 years. Trust us, we have your back. We understand that it is becoming increasingly difficult to remain competitive in various manufacturing industries. Therefore, we provide you with innovative solutions for processes that are challenging to do in-house. Utilizing a company that specializes in contract packaging allows you to focus on what you do best and saves you money in time and labor.
Our machinery, facility space, training, and equipment are all designed to provide packaging solutions. This makes all processes more efficient and cost-effective. Once we receive all materials, we track incoming inventory and set-up your process, we sort and package your products following a strict quality policy. Our facilities utilize various types of sealers and shrink tunnels. Our processes include labels, tags, and necessary work instructions.
Following these processes with required supplies can be costly. Outsourcing your contract packaging needs allows you to expand your production capabilities without investing in resources to do it yourself, while focusing on your niche market. With our contract packaging capabilities, we are a one-stop shop for our clients.
As a contract packager, PPS is highly experienced in finding packaging solutions. Our business model is based on improving your efficiency and speed. Our goal is jobs, not profits allowing us to be responsive on many levels.
Our success is based on meeting our customer’s standards and delivering performance results. Our business model sets us apart from other contract packaging companies as we are only concerned with our customer’s happiness and total satisfaction. We work with our customers throughout the process to ensure we are reducing processing time and costs.
The goal of PPS is to add value to every product and every relationship we touch, finding new ways to increase productivity and decrease overhead, making your business even more successful. Visit our website to learn more about our contract packaging services.
A quality operating procedure (QOP) is a written document composed of step-by-step instructions used to complete a routine operational task. These procedures help to achieve efficiency, performance, and quality control.
Quality Operating Procedures are important to ensure that production operations are performed consistently to maintain the quality of products and processes.
The purpose of operational procedures is to define systems, assign responsibilities and authorities, and provide instructions for carrying out activities comprising the quality system. Operational procedures explain the what, when, who and how for each activity; identify interfaces for the activity; and instruct who should be informed and how the results of the activity should be recorded.
PPS uses specific coding for our operational procedures such as QOP-SS-NN. QOP stands for Quality Operational Procedure, SS is the section in the quality manual to which the procedure pertains, and NN is the consecutive number of a procedure for the section.
Importance of Quality Operating Procedures
1. Increases Business Productivity
QOPs can be beneficial for companies that produce the same product over a long period of time. PPS has been working with a Fortune 100 manufacturer for over 80 years. The procedures help to increase business productivity.
2.Processes Remain Consistent as the Company Expands
PPS is expanding so QOPs can make the work processes portable. Our new employees at the new location can uphold our reputation by using the same QOPs to replicate the products and services provided at the original location.
Standardized procedures help guide our employees and reduce the possibility of missed steps that impact the quality of the completed product. A QOP ensures that our customers’ products are created in the same way from start to finish every time, creating consistency with high-quality products.
4. Keeps Processes within the Company
Writing down procedures helps to keep key information with the company. This is beneficial when new employees take over a process and for cross-training of employees. It is important for the company to have a physical copy of all work instructions and procedures with documented alterations and continual improvements noted.
5. Better Time Management
QOPs are a valuable component for a new hire, ultimately reducing training time. As PPS expands, we will be hiring more employees. With specific work instructions, the quality operating procedure details the checks for quality personnel.
As an ISO registered company, we use Quality Operating Procedures to remain consistent when following strict quality guidelines. PPS promises to maintain the quality of our customers’ products. Visit our website to join our quality team.
Peoria Production Shop follows strict quality standards with processes in place to ensure an understanding of the process for high-quality results. As an ISO certified company, you can have confidence in our commitment to meeting your specifications. We use in-process inspection reports (IPIR) to identify problems as they arise and immediately take corrective action. Our highly trained staff use these reports to streamline the inspection process and ensure work orders are completed accurately.
Prior to the inspection process, the supervisor is responsible for processing the work order and preparing the work station for the operator. During this step, the supervisor will fill out the specific information for the job on the IPIR such as the sales order, part number, quantity of order, package quantity per carton (bag or container), and specific work instructions to be used. The IPIR sheet stays with the product at all times.
After the workstation has been properly set up, the supervisor will inform the quality inspector of the job or new operator. This step can happen at any time of the work day as work orders are completed or operators are shifted around the facility.
The Inspection Process
Take IPIR Report and random sample of product from operator’s work area
Check a minimum of 5-10 pieces (according to work instruction quality guidelines)
Document findings on IPIR sheet
Communicate those findings with operator
If product is non-conforming, the quality inspector talks to the supervisor. A supervisor must sign off on the IPIR sheet before work can continue.
Quality inspector repeats the process every 30 minutes.
Along with the IPIR sheet, the quality inspector carries a daily report sheet and a work instructions binder to each area that requires inspection. The quality inspector is solely responsible for identifying errors. The supervisor is in charge of correcting any issues with products or processes such as a machine or scale calibration.
The IPIR sheet helps the quality inspector to recognize any patterns. Since the in-process inspection sheet is used for the full duration of the work order, the quality inspector can draw conclusions about an operator’s ability to perform the task or the effectiveness of a machine.
At Peoria Production Shop, we strive to add value to every product we touch. Our quality team follows strict policies and procedures. If we find that a particular employee is better suited to perform a different task than the one assigned, we place our workers where they excel and perform to the best of their abilities. This policy has proven to be beneficial to ensure that we provide high-quality products, on-time and with consistency.
At PPS, we use in-process inspection reports and materials to aid in-process inspections and to ensure finished products meet customer specifications. We promise to do our part and take appropriate action as needed so our customers can succeed. Visit our website to see how we can further your company’s success as a value-added, quality supplier.
Value Stream Mapping (VSM) is a lean management tool used for analyzing the current state of all series of events in a process to produce a finished product from beginning to end, and then designing the most efficient series of events to provide the greatest value to that product and process.
Manufacturers use VSM which is a detailed flowchart method to identify all stages in the process typically down to seconds. This highlights the areas where improvements can be made such as quickly identifying any waste or bottlenecks in the process. VSM is a lean management tool that reveals downtime, inventory problems, and processing delays.
Customers care most about the value of the product or service rather than the efforts to produce it. Value Stream Mapping helps to illustrate value-added steps for manufacturers. It is an ongoing process used for continual improvement. The goal of Value Stream Mapping is simple, to eliminate waste and create the most efficient system possible, bringing the greatest value to that product’s process.
While manufacturers benefit from utilizing value stream mapping, those who benefit the most from the process are the customers. The customer experiences a better quality product through a more efficient system that ultimately meets their needs and expectations. Additionally, by reducing waste and expense, a contract packaging company can pass on savings to their customers as efficiencies improve.
Benefits of Value Stream Mapping
Benefit #1: Reveals the Most Efficient Process
The VSM clearly labels material and information flows from order entry, purchasing, processing, quality inspections and packaging to see the entire process through from beginning to end. Value Stream Mapping originates from the perspective of the customer, with all required steps to meet product specifications clearly defined. Essentially, we want to identify the processes that add the most value to the customer’s product in the most efficient way.
Benefit #2: Identifies Waste
The VSM encompasses the processes that a product goes through from start to finish. The value stream sequence identifies waste, or an action or step that does not add value to the customer. For example, the VSM can diagnose overproduction, unnecessary motion, or excess stock as waste. A customer will not want to pay for these wastes so the VSM can help the manufacturer better their processes and add value to the customer’s project.
Benefit #3: Improves Manufacturer
Value Stream Mapping helps to align the entire manufacturing company on common goals. All aspects of the company including upper management, operations, administration, and sales want to add value to the customer’s project. This common goal helps to prioritize improving the processes because it affects each company department at some level. Ultimately, Value Stream Mapping helps the company to analyze current and future production flows for improvement. When all stakeholders are in alignment, the manufacturing company can use their findings as an example for future projects and to benefit all customers.
Peoria Production Shop strives to add value to every product we touch. We use Value Stream Mapping to help identify waste and create the most efficient systems possible. Visit our website to learn how we can add value to your next project.
A contract packager, co-packager, co-packer, and contract manufacturer refers to a company that manufactures and packages products for their customers, usually the original equipment manufacturers (OEMs). The secondary packaging process is when various pre-packaged products are packaged together.
Co-Packing has become a competitive advantage for manufacturers. OEMs have the ability to take on large projects without the need for extra staff and equipment because they can outsource the packaging services. Companies are realizing many benefits of outsourcing co-packing and repacking for their products.
Money Saving Potential When Using a Co-Packing Company
Outsourcing allows for companies to utilize the co-packer’s existing space, technology, and staff. Also, companies can save on labor costs and overhead costs by not adding packaging staff and devoting capacity to packaging.
Contract manufacturers build relationships with raw material suppliers and other companies. These relationships allow the co-packers to provide lower costs because of their networking connections.
Peoria Production Shop has many capabilities allowing their customers a one-stop shop for all of their packaging needs. For instance, PPS has auto-labeling services, shrink sleeves, imprinting services for lot codes and expiration dates, heat sealers and more.
Co-Packers Provide Increased Efficiency
Co-packers specialize in efficiency and have an established processes for packaging production. Peoria Production Shop uses Value Stream Mapping (VSM) to identify and eliminate waste and create the most efficient processes which provide the greatest value.
Also, co-packers like PPS provide services in other areas such as kitting, sewing, mechanical assembly, cutting, finishing and more.
Save Time With Co-Packing & Repacking Partners
Co-packers have the ability to free up the original manufacturer’s time. Outsourcing contract packaging allows the OEM to focus on other areas like marketing and networking.
Freeing up the company’s time allows the co-packer to do what they do best. In fact, contract packagers have their own methods of quality control that can detect errors and damaged materials in addition to meeting all customer specifications.
Wider Skill Set In Outsourcing
Outsourcing projects to a co-packer allows the original manufacturer to be involved with true professionals in the industry. Certain co-packers have certain qualifications that set them apart from competitors.
Also, contract packers work with original manufacturers to share knowledge and pass along cost savings from their proven efficient processes. For instance, contract packagers might have more skills on handling material, designing the secondary process flow, or pricing from established vendors based on previous experience.
Outsourcing to a co-packer allows for businesses to spend time and money in other areas that grow their business. You can have confidence in Peoria Production Shop to add value to your packaging needs. Visit our website to learn more about our co-packaging capabilities.
Recently, a group of three Bradley University engineering students conducted a lean assessment for the auto-bagging system. The three students; Lauren Boden, Holly Korte, and Adam Heintzman met with their professor Joseph Chen at the Peoria Production Shop facility.
The team of students gathered data regarding the current process used at the facility. The process begins with receiving, goes through sorting, then to several bagging and picking. The products are then packaged and ready to be shipped out.
The students created a process flow and a process chart for the multi-bagging area. After many calculations and analyses, the team concluded there are some areas for improvement. For instance, there is an over processing of waste. During downtime, waste accumulates in the bagging areas. The students recommended a redistribution of workers when waiting.
Another issue the students discovered is the long changeover time between parts on the automatic machines. The students suggested reducing the guess and check method to speed up the processes.
Likewise, they found that there was extra movement around cupping and bagging which could potentially result in damage to the products. They recommended the two areas be combined into one cell to reduce the movement.
All in all, the Bradley engineering students proposed a Kanban system floor plan. Each area of proposed solutions would provide the company with around $98,000 in savings.
Peoria Production Shop is looking into the areas mentioned above and will act accordingly. Additionally, PPS is a company who strives to find solutions for clients so we are thankful that a local university is interested in providing services and continuing to educate students.