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Executive summary
• Improved legibility, more variable data, better chosen print • Code Assurance is an approach to proactively preventing
locations, faster production lines and more problematic errors by designing message creation and job selection
flexible packaging formats are all putting coding under processes to be as foolproof as possible.
the microscope. • Videojet is pioneering the concept and implementation of
• Coding errors affect product quality and drive unacceptable Code Assurance through an interface, a PC-based message
costs throughout the enterprise due to scrap, rework, design and rule creation software, and a network control
regulatory fines, damage to the brand reputation package. This solution is a critical, and often ignored link in
and more. the chain of error prevention in coding and labelling
• The majority of miscoded products are caused by operator technologies.
error; but not all operator errors originate on the
This paper examines the key factors in the total coding
production line.
process and how to improve them to benefit from a
corresponding improvement in productivity, waste
reduction, lower costs and risk management.
Contents
The actual cost of coding errors 3
Implementing an intelligent 9
user interface
2
The actual cost
of coding errors
Correct product coding is important to
manufacturers of snack foods, helping
improve supply chain efficiency and visibility
while providing customers with important
information about the products they buy.
Coding errors are costly, not only to plant The real costs may be all but invisible
operations but to the entire business. There Most organizations struggle to quantify the Today, getting
is the cost of rework – assuming that the
product can actually be reworked and the
actual cost of lost product and lost production
capacity as a result of coding errors – let alone
codes right
plant has the capacity to do so. In a 24/7 lost reputation. isn’t just
production environment, rework may not be
Most evidence is anecdotal. In many cases,
important –
possible. Or, once the product has been
coded, it may be impossible to recode or management is simply unaware of the scope of it’s crucial.
repackage. The need to scrap miscoded coding problems.
product can be even more costly than rework Another factor that complicates accurate cost
but it may be the only option. accounting is that many companies tend not to
And that’s nothing compared to the trouble and highlight coding errors within their plant
cost of miscoded products that end up on the efficiency reporting. Often, there’s an
retail shelf or in the homes of consumers. assumption that coding errors are detected by
Beyond the risk of regulatory penalties and fines, regular inspection and then rectified.
the brand’s reputation itself can suffer costly The specific costs associated with rework remain
damage. The product may be unavailable while entangled with general measurements of line
restocking takes place, forcing customers to inefficiency, so that there is often no knowledge
switch to competing brands, possibly never of the cumulative effect of these mistakes.
to return.
3
The true frequency of coding errors
Of course, much can be done to
build a form of Code Assurance into
your organization organically.
For example, you can start with initiatives as For your business to truly benefit from
simple as retraining operators, improving Code Assurance, it is mission critical to move
ergonomics at data-entry points and performing beyond behavioral methods and adopt solutions
cross-checks before committing to a print job. that deliver maximum automated accuracy
These and other operator-centered methods can while minimizing the risk of human error.
measurably reduce errors. However, assuming
most snack food companies undertake these Why correct coding matters
simple steps already, the room for further
improvement is still staggering. Manufacturers are looking for ways to:
• remove operator error from message
The truth is that coding errors happen setup and job selection processes
4
It’s better Reducing coding errors
cut running costs by
almost 50%
to prevent
During a cost analysis exercise,
a global FMCG manufacturer
discovered that coding errors
errors than
were almost equivalent to their
total annual equipment running
costs.
to calculate
for nine lines were calculated
to be 291,200€ broken down
as follows:
the damage
Annual cost element
Capital
investment costs 9,400€ 3%
Equipment
running costs 54,000€ 19%
Scheduled
non-operational time.
Maintenance and
line set-up 177,600€ 61%
More than half of coding errors are caused Preventing errors by design: Coding errors 50,200€ 17%
by operator error – our surveys suggest a range mistake-proofing coding processes
of 50 to 70 percent. The most common mistakes Total 291,200€
Manufacturers need proactive solutions to
are incorrect data entry and incorrect job address all these issues – from unaccounted
selection. In our survey, we found that those costs, to ineffective countermeasures, to partner
two mistakes accounted for 45 percent of all 177,600€
mandates – instead of reacting to coding
coding errors. problems after they occur and their costs accrue.
54,000€
Up to 70 percent of coding There are two ways to deal with coding 50,200€
problems at the source, actually on the
errors are caused by operator production line: Running
9,400€
Coding errors
error, with almost half caused • proactively reduce the likelihood of errors Non Operational Invest
by mistakes in code entry and • try to catch errors when they happen to
Cost of coding errors at this
job selection. minimize waste, correct the error and get back
particular site turned out to be a
to production as soon as possible.
huge 17% of total running costs.
Even where the problem is recognized, many It’s not a question of either/or. Even if you’re
effectively preventing coding errors, you still By identifying the errors and
companies respond by simply introducing more
need the ability to quickly respond if something putting process in place to remove
checks during the packaging operation. However,
goes wrong in order to limit the damage. But these coding errors before they
this does not address root causes such as the
clearly, resources invested in prevention can pay happen, the customer was able to
wrong codes being entered in the first place, nor
back many times over when compared to the cut their annual equipment
does it tackle the problems and costs associated
expense of putting errors right. running costs by 50%.
with product rework or the resulting decrease in
plant efficiency. Traditionally, running costs have
held the center of attention for
It’s in the manufacturer’s own self-interest to
competitive justification and cost
understand the scope and cost of coding
saving projects. In reality, there
mistakes and take counter measures to eliminate
are far greater rewards to be had
them. Moreover, many retail partners are now
from eliminating coding errors
requiring compliance with coding standards that
through Code Assurance
include implementation and documentation of
measures. Error prevention
methods to eliminate such errors.
opportunities are realized through
continuous improvement in
usability, data handling and
equipment capability.
5
Poka-yoke
and its role in Code Assurance
In recent decades, manufacturers have increasingly
turned from quality assurance based on statistical
sampling of products bound for market to a more
proactive philosophy of prevention.
6
Poka-Yoke:
mistake-proof by design.
The term ‘poka-yoke’
pronounced PO-kah YO-kay,
might be translated literally
as ‘prevent-mistake’.
1 2 3 4
Simplify message selection, Restrict operator input to the Automate messages Use authoritative data
so the operator selects absolutely essential points of as much as possible, with sources – such as MES,
the right message for the contact only. pre-defined rules that help SCADA, ERP or other
right job. prevent incorrect entries. enterprise IT systems –
so that the appropriate
information is pulled to the
printer automatically when
the operator selects a job.
Videojet By utilizing this, error prevention becomes part of The poka-yoke principle has since been applied to
the process, so that mistakes are difficult (ideally, countless, more sophisticated processes, but the
incorporates impossible) to make, and easy to identify and essential principles of the first poka-yoke solution
poka-yoke correct should they occur. still apply more than 50 years later:
concepts into its The concept of poka-yoke began in 1961 with The solution should…
execution of these a simple change in the way workers were 1. be cost-effective
assembling switches. Instead of grabbing parts
principles to help from the parts bin as they worked, employees
2. be easy to implement
reduce operator were taught to place the necessary parts in a 3. ensure correct operation without
depending on constant attention or
mistakes and tray before beginning assembly.
infallible input from the operator
coding errors. This simple change in process design completely
4. ideally, work without depending on
eliminated the common problem of missing parts
the operator at all.
in many of the switches that had been shipped
to customers.
7
Code Assurance –
from the ground up
3
for the right jobs. Network controls can distribute coding
Windows-based software provides additional support for
messages to multiple coding and labelling equipment
poka-yoke principles 2 and 3
technologies across the plant – and even across multiple
Automate A Windows-based software isolates code design from the
plants – to simplify management and practically eliminate
messages production floor and eliminates the need to load individual
coding errors due to incorrect operator input.
messages onto each printer interface.
8
Implementing an
intelligent user interface
When evaluating and implementing Code Assurance
solutions, many companies begin with the user
interface. The goal here is to manage and enforce
acceptable parameters for the coded message and to
eliminate operator error from the job selection process.
The printer’s user interface can be These goals must be achieved while still making it simple and
designed with several features to help efficient for the operator to perform their role. In designing
advance these goals, including: the interface for the DataFlex® line of thermal transfer
• Requiring separate user authorizations for overprinters, for example, Videojet specified a large 213mm
code creation and job selection. (8.4") touchscreen and designed the display for easy
operation – with fonts that are easy to read, colors that are
• Restricting the types of coding parameters
easy to interpret and buttons that are easy to press.
the operator can enter, or allowing job
selection only from a list of valid jobs that Along with the calendar selection, drop-down menus, field
have been created and stored in advance. prompts and other Code Assurance features listed above, the
• Providing stored jobs with a meaningful physical design of the interface makes it almost impossible for
name that describes the actual product a reasonably careful operator to get code creation and job
being coded. selection wrong.
9
Code Assurance benefits include:
• Reduced overhead, with no need to create different code designs for
different printer types, and no need to learn and work with different
printer-specific software.
10
Getting started with
Code Assurance
11
Peace of mind comes as standard
Videojet Technologies is a world-leader in the product identification
market, providing in-line printing, coding, and marking products,
application specific fluids, and product life cycle services.
Our goal is to partner with our customers in the consumer Our customers rely on Videojet products to print on over ten
packaged goods, pharmaceutical, and industrial goods billion products daily. Customer sales, application, service, and
industries to improve their productivity, to protect and training support is provided by direct operations with over
grow their brands, and to stay ahead of industry trends 3,000 team members in 26 countries worldwide.
and regulations. With our customer application experts and In addition, Videojet’s distribution network includes more
technology leadership in continuous ink jet (CIJ), thermal ink than 400 distributors and OEMs, serving 135 countries.
jet (TIJ), laser marking, thermal transfer overprinting (TTO),
case coding and labeling, and wide array printing, Videojet has
more than 325,000 printers installed worldwide.
Global Headquarters
Videojet Sales & Service Offices
Manufacturing & Product
Development
Countries with Videojet
Sales & Service
Countries with Videojet
Partner Sales & Service