Use
A batch features properties that provide a unique identification of the batch.
All the reproducible criteria are criteria concerning the material to which this batch belongs, and
not criteria of the batch itself. For example, to produce repeated batches with a viscosity that is
within a particular range, we thus need to set up a material master record with precisely this
range of viscosity and with recipes that control production.
In addition, the same batch might be filled in different types of packaging. A batch of resin might
be filled for example in 10 liter canisters as well as in 50 liter barrels. To be able to trace a
product precisely, we will need to set up material master records for each type of packaging of
each product. You allocate the batch packaged in a 10 liter canister to that material of the
product which features the definition ’packaged in 10 liter canisters’, that is the packaging type,
e.g. a canister or barrel is considered an attribute of the material and is thus of importance to the
definition of material master data.
Warehouse Management
The various batches of our product Resin are now packaged and stored as grade I, grade II and
grade III materials. It is important that the various grades of the product are differentiated, so that:
• The batch can be traced or located
• The batch can be delivered to customers with specific requirements
Sales order
In customer order processing, customer requirements are dealt with on a differentiated basis for
• The grade of the material required
• The type of packaging
Costing
As far as the manufacturer is concerned, the difference between grades of material and types of
packaging also affects costing, as different sales prices can be assigned, depending on these
factors. A higher grade of material, for example, might be more expensive to produce. A more
complicated type of packaging will almost certainly mean higher costs.
Taking the material requirements situation into consideration, our batches are now packed and
filled in the various types of packaging, according to material requirements. It is important to note
that the descriptive specifications of our batches, defined in the laboratory, are retained in the
packaging procedure.
Features
• The connection between production and the filling/packaging process can be shown
uniquely using a BOM. You can define allowed packing types for each product.
• Long-term and short-term planning, and thus material requirements planning, is clearer
and can thus be carried out on a more precise basis.
Based on a customer order, Sales can specify the precise requirements using the
material number:
– the precise batch is identified
– the corresponding packaging type is chosen
– the corresponding grade of the product is identified.
• The various types of package, as well as the operating supplies, can be planned and
assigned by material requirements planning, according to requirements. These
packaging types and supplies are set up in BOMs, which are used for planning and
allocation purposes.
• Production orders can be used to distribute and allocate the costs for each grade and
type of packaging. Hybrid costing is not required.
• Operations such as filling, packaging, etc., can be allocated uniquely to the finished
product.
The same applies for criteria such as grade or viscosity. Here, too, the finished product
can be costed according to the grade. Higher grades of material usually require higher
manufacturing costs.
• Handling in the stores is also more straightforward. Picking and packing activities for
production, sales and shipment are easier and more reliable. Thus picking errors are
avoided, and from the logistics point of view, costs are cut.
• Stocktaking is simpler, quicker and can be carried out with less errors. Although a large
amount of maintenance work is required, this is soon compensated by the cost savings
during stocktaking and handling in the storage location.
Activities
When defining the material master data, you must take the following points into account:
• Only materials, not batches, can be assigned to a BOM, a routing or a
master recipe
• Only materials, not batches, can be planned in Material Requirements Planning
The number of material master records you need to define depends on the respective profile of
requirements. This includes such factors as:
• The level of detail required in the system for storing batches.
This is significant from the point of view of batch tracing.
• The level of differentiation you require for planning purposes.
For example, customer requirements: Are all grades of your material required in all
different types of packaging, or is only one grade of material sold in differentiated
packaging?
• Further processing of the batch.
Is the batch a finished product or a semi-finished product to be used in a further process? In
this case, are the various grades or packaging vessels of significance?
You set up a separate BOM for each grade and packaging type for
• Material requirements planning
• Production order processing
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