The Buzz on Blockchain

  It’s no secret that the next big term in manufacturing is Blockchain. First, I think we should start with what it is. Blockchain can be described as a data structure that holds transactional records while ensuring security, transparency, and decentralization. You can also think of it as a chain or records stored in the forms of blocks which are controlled by no single authority that adds additional levels of security as data is collected and stored. 

Other industries have taken on applications of blockchain technologies such as the finance, education, and retail fronts. The manufacturing industry is continuing to dip their toes into this type of technology mainly for traceability and security  reasons. As regulatory agencies tighten grips and consumers are more concerned with where their products are coming from, manufacturing companies are being forced to provide accurate answers. Blockchain is enabling organizations to prove the origin and quality of products in 6 key areas: Safety & Recalls, Regulatory Compliance, Food Fraud, Social Issues, Sustainability, and Consumer Information. 

How do companies get there? 

There are a few important steps to identifying and setting up systems to get ready for complete blockchain traceability and security. Let’s break them down. 

1. Identify what data needs to be collected from suppliers, in plant locations, and throughout the supply chain
2. Set up systems for the data collection and make sure they communicate well with other services
3. Create a culture of Continuous Improvement 

Identifying the Data Points: 

• To identify the right data points, you’ve first got to ask what the goals are, how you can achieve them, and what is your plan of action to control these data points. They can be found in product and worker safety, quality management, and/or  production environments. For Blockchain to succeed in manufacturing, their operations, their supply chains, all raw materials, components, sub-assemblies, and production actions must be recorded as transactions or events. For more information on how to find other data collection points for your organization, inquire here on our site. 

Set up the Systems:

• Another key point for Blockchain’s success is to ensure that it can openly connect with other systems such as MES, ERP, QMS, and others you may currently operate. Without these other systems to support Blockchain technology, there will most likely be a lack of information and insight to achieve the full benefits of security and traceability. 

Create a Culture of Continuous Improvement:

• The final and most important point of action is to create a culture of continuous improvement. This means going past the data collection, traceability, and security phase. Then, build into reporting and KPI’s for employee engagement. Without employee engagement, Blockchain seems to be another tool that  management wants to employ for performance monitoring. With the right management review process tying into KPI’s, organizations can then set up appropriate CIP (continuous improvement process/plan) goals to meet audit standards internally and externally (GFSI required). 

In order to successfully implement Blockchain technology, there should be many considerations of previous, current, and future systems. Although it is a long process, Blockchain can be implemented from within your plant (custom-built) or licensed from a technology vendor that has the capabilities for a quicker solution. Our piece of advice is to make sure you follow the steps above, start small, and scale as you feel comfortable. Safer products come from safer procedures; so make sure your team is well equipped before taking on the next big thing.