Formulating by Cost. Enginuity 5.0 by DS ENOVIA Dassault Systèmes
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1 Formulating by Cost Enginuity 5.0 by DS ENOVIA 2014 Dassault Systèmes
2 Contents About This Guide... 1 Cost Formulation Workflow... 2 Define Ingredient Substitutions in the Formula... 4 Choose Ingredient Substitutions... 6 Choose Plant Manufacturing Sites... 9 Compare Formula Raw Material Costs Alternates Raw Material Supplier, Cost and Alternates Administration Supply Raw Material Cost Information Specify an Alternate Raw Material Add Suppliers Glossary About This Guide This guide provides instructions about how to create substitutes for raw materials used in your formula and then compare costs for different formulas in multiple plants. The last section, Raw Material Supplier, Plant Cost and Alternates Administration, describes for raw material administrators how to assign raw material plant costs and create raw material alternates. This guide assumes you are familiar with basic skills and concepts in Enginuity. You should be able to create a formula, insert columns, and add ingredients. If you need help with basic skills, refer to the Enginuity online help, or the Enginuity Building Blocks guide. Page 1
3 Imagine you are tasked with creating both an enhanced formula of your company s successful dish detergent Nature Pure, and a variation for a different market. The original formula will continue to be promoted and sold for hand washing dishes in the home; the variant is for oil companies and conservation organizations for clean-up of oil contaminated wildlife and is sold by the drum. The only difference in the formula is the industrial version has no perfumes or dyes. The detergent will be made in several plants around the world. In addition to creating a better product, you need to make sure the raw materials you specify are available at the various manufacturing plants and at the lowest cost. You also want to see how much the formula without the perfumes and dyes will reduce the manufacturing costs. This information can be exported to the sales and marketing team to help them determine the price in the marketplace. As you formulate you need to have at your fingertips essential raw material cost information to create viable substitutes in the event your primary choice is either not available, or at the right price. Cost Formulation Workflow The tasks associated with cost formulation include defining raw material substitutions; applying substitutes; and comparing raw materials costs for different plants, suppliers, and formulas. In a nutshell, you will: 1. Define raw material substitutions from within the formula. For example, Page 2
4 2. Optionally, choose ingredient substitutions. 3. Choose plant manufacturing sites for the formula. 4. Choose formulas and plants to compare. And then compare. Each of these tasks is described in the following sections. Page 3
5 Define Ingredient Substitutions in the Formula Figure 1 shows the formula for Nature Pure dish and wildlife detergent. We are going to create a substitute for the 25% Sodium Laurel Sulfate. Note that ingredient substitutes can be either a raw material specification or a supplier raw material (refer to the glossary on page 16 for information about each of these raw material types). Figure 1: Sample formula to create a substitute ingredient To define a substitution for an ingredient, 1. Highlight the ingredient you want to define a substitution; for this example, Sodium Laurel Sulfate. 2. Right-click in the icon row and choose Define Substitution. The Substitution Wizard screen appears where you specify what ingredients you will be removing in order to replace with substitutions. Page 4
6 Primary Ingredients panel: The ingredient you highlighted is listed in the grid along with the Wet %. NOTE: In the instance where you are substituting more than one ingredient (many-for-many substitution), you can add other ingredients that are used in the formula. Balancing Ingredients panel: In this instance, we are going to leave this empty. A balancing ingredient is any other ingredient that may be completely or partially removed as part of the substitution. For example, if you were removing a 100% solution and replacing it with a diluted strength material, then you would add water as the balancing ingredient. 3. Click the Next button to display the Replacement Ingredients screen. In steps 4 and 5 you are specifying the material(s) that will be the replacements. 4. Click in the Raw Material Name field. Type all or part of the name and press the Enter key. 5. Choose the raw material from the search results and click OK. 6. Type the percent of the substitution for each ingredient. For this example, Sodium Dodecyl 100% solution is replacing Sodium Laurel Sulfate 25% solution. So, the Sodium Dodecyl Sulfate will be 25% of the substitution, and the water contribution is 75% so the active ingredient exchange is equal. 7. Click the Next button after you have completed supplying the replacement ingredients and levels. A summary of what you have removed and added in the substitution appears. 8. If you are satisfied with the result, click the Finish button. If you want to change any of the ingredients or levels, click the Back button. Page 5
7 Figure 2 shows the result of the substitution we defined: Figure 2: Substitution for Sodium Laurel Sulfate Choose Ingredient Substitutions After ingredient substitutions have been defined in a formula, at any time you can apply the substitutes. Figure 3 Substitutions tab and ingredient icon To apply the substitution to a formula ingredient, 1. Select the ingredient you want to substitute (Figure 3). Ingredients that have substitutions are indicated with this icon. 2. Click the Substitutions tab. Page 6
8 3. Click to select the substitution and then click the Apply button. Figure 4 shows the Formula Grid with the substitution applied for 25% Sodium Laurel Sulfate. It is indicated with the green and red arrow icons. Figure 4: Ingredients where the substitutions have been applied Figure 5 shows the Summary view of the formula, where you can see the water has been combined into a single ingredient total. Figure 5: Summary tab To undo a substitution so that it reverts back to the original ingredient and level, select the substitution and then click the Revert button as shown in Figure 6. If you want to undo all of the substitutions for the entire formula, click the Revert All button. When you revert to the original ingredients, Enginuity recalculates the ingredient levels for the original ingredients. Page 7
9 Figure 6: Reverting to the original ingredient To remove a substitution, select it and then click the X button (Figure 7). This deletes the substitution and to restore it, you will have to redefine it. Figure 7 Deleting and editing substitutions Page 8
10 Choose Plant Manufacturing Sites In order to do cost comparison between formulas, you have select plant manufacturing sites using the Formula Properties. 1. Click the Formula Properties button on the tool bar. 2. Click on the Sites tab and using the arrow keys, choose the sites you want by moving them from the Available Manufacturers panel to the Selected Manufactures panel. TIP: The double arrow buttons will move all of the manufacturing sites from one panel to the other. The Reset button sets the Selected Manufacturers to those (if any) from the Preferred Plants panel on the Cost Comparison tab of the User Preferences dialog. 3. When you have chosen the manufacturing sites you want, click OK to save the changes. Page 9
11 Compare Formula Raw Material Costs With the Cost Compare feature you can see at a glance the cost of different materials in different manufacturing plants for a single or multiple formulas. If you want to compare the costs of multiple formulas, you have to have the same number of phases in the formulas for which you are comparing costs. Also, substitutions are shown only in cost comparisons that that contains a single formula. 1. Choose Formula Cost Comparison. 2. In the Cost Comparison Setup dialog, choose the formulas and the plants you want to compare: By default, all open formulas appear in the Selected Formulas list. By default, the combined set of all of the manufacturing sites for the selected formulas appears in the Selected Manufacturing Plants list. Clicking the Formula Plants button results in the same selection. If you want to include only plants that have been designated as preferred, click the Preferred Plants button. This will set the selected manufacturing sites to the ones chosen in User Preferences. 3. Use the arrow keys to change any of the default selections. NOTE: You can search for other formulas and plants not listed by typing keywords in the Search field. 4. Click the Compare button after you have set up your cost comparison parameters. Figure 8 on page 11 shows the plant cost analysis of four plants for a single formula. You can view ingredient cost information based on cost per kilogram, cost per piece (for example, tablet formulas), the cost in the formula, and the percent of the cost in the formula. NOTE: If cost information is missing then the Totals field will contain dashes, rather than a value. Page 10
12 Figure 8: Plant cost analysis for a single formula To view and compare the costs for substitutions, select the ingredient you want to substitute, and then click the green + button. The substitution appears in the Formula grid with the new cost information. To restore all of the original costs, click the Revert button. To export this data to a Microsoft Excel spread sheet, click the Export button. To edit individual cost fields, just select the current values and then type over it. Values you supply are displayed with blue text. This allows you to do what if cost comparisons, or supply raw material cost information that is missing from the raw material properties. To restore a single edited cost, select the entire grid cell contents and then delete the text. The original cost will be restored. Figure 9 shows plant cost analysis for two formulas with two plants. Figure 9: Plant cost analysis for two formulas Page 11
13 Alternates Alternates are universally replaceable materials and defined as such in the raw material database. They can be used in any formula under any circumstances with no impact on suitability, regulatory, or efficacy; e.g., food grade citric acid. Alternates for raw materials are defined by the raw material administrator, whereas substitutions are defined by the formulator for use only in the formula for which it was defined. If an ingredient in the formula has been assigned alternates by the raw material administrator, you can choose to use the alternate. To see if a raw material has been assigned an alternate, look on the Suppliers/Costs tab of the raw material properties. Alternate materials are listed in the Alternates panel (Figure 10). Figure 10 Alternate raw material Page 12
14 Raw Material Supplier, Cost and Alternates Administration To have access to the features described in this section, you must be logged in as an administrator. As a raw materials administrator, you set up raw material cost, supplier and alternate information that will enable formulators to choose the available materials for selected plants and at the best price (Figure 11). Figure 11: Suppliers/Costs tab allows RM admins to add suppliers, supply cost info, and specify alternates Raw Material Properties allows you to enter the costs for a raw material at multiple manufacturing plants, which is visible to the formulator through the cost comparison feature described earlier in this guide. In addition, you can specify alternate raw materials. An alternate raw material is different from a substitution as it is not specific to a formula. An alternate is a universally replaceable material and is defined as such in the raw material database. It can be used as a replacement material in any formula for any purpose with no impact on suitability, regulatory, efficacy, etc. For example, USP food grade citric acid could be used as an alternate material for use in food and beverages, pharmaceutical products, as well as cleaning agents, cosmetics and other personal care products. Finally, you can add supplier and specify whether or not they are preferred. Page 13
15 Supply Raw Material Cost Information To add or edit the cost information for a raw material on a plant basis, 1. Select the raw material from the formula grid or Raw Material Search Results screen. 2. Choose Administrator Edit Raw Material. 3. Click on the Suppliers/Costs tab. 4. In the Manufacturing Plant Costs panel, double-click in the Manufacturing Plant field. 5. Choose a plant from the drop-down list. 6. Type the cost per kilogram value ($US) in the Cost/Kg field. Specify an Alternate Raw Material To specify an alternate material for a raw material, 1. Select the raw material from the formula grid or Raw Material Search Results screen. 2. Choose Administrator Edit Raw Material. 3. Click on the Suppliers/Costs tab. The Alternates panel is at the bottom of the tab. 4. In the Alternates panel, do one of the following: Type the first several letters of the raw material name or INCI name in the field with the same name and press the Enter key on your computer. A list of matches will appear allowing you to choose the one you want. Copy and paste the alternate material from the Raw Material Search Results window into the Alternates panel. Or, if you know the exact raw material number, you can type that in the RM Number field. 5. Type a Reason for Change in the Profile tab and then click the Save button. Page 14
16 Add Suppliers For a raw material, you can include multiple suppliers and specify one as preferred. To add a supplier, 1. Click inside the Suppliers grid, right-click and choose Add Supplier. 2. Choose a supplier from the Supplier Name drop down list and a status from the Supplier Status. 3. Type the trade name in the field. 4. If it is a preferred supplier, check the box. Preferred suppliers are the ones chosen by default. There can only be one preferred supplier. 5. Click OK. The new raw material supplier appears in the Suppliers panel. Page 15
17 Glossary alternate is a material that may be universally replaced in a formula with no impact on suitability, regulatory or efficacy balancing ingredient are other ingredients that may be completely or partially removed in a substitution primary ingredient is the functional (active) ingredient that is being replaced in a substitution. raw material specification is how an enterprise describes (specify) a material used in Enginuity product formulas. In ENOVIA it is an object referred to as the Enterprise Part (EP) substitution is one or more materials that replace a formula ingredient because it is not available at a particular plant or a less expensive material is required supplier raw material is the specification for a material that is purchased from a supplier or manufacturer and lists the constituent parts and levels so that they are accounted for in the product formulas. In ENOVIA it is referred to as a Manufacturers Equivalent Part (MEP) Page 16
18 Copyright 2014 Enginuity by DS ENOVIA. All rights reserved. Enginuity 5.0. Rev This user guide, as well as the software described in it, are furnished under the license of Enginuity by DS ENOVIA software. It may not be copied, reproduced, or disseminated in whole or in part by any electronic, mechanical, recording, or other means, without written permission of Dassault Systèmes. The content of this guide is for informational use only and is subject to change without notice. Enginuity is a registered trademark of Dassault Systèmes. All other trademarks and names mentioned herein are trademarks of their respective owners. Page 17
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