Leverage Batch Derivation to Optimize Batch Traceability

  • by Jawad Akhtar, Head of SAP Delivery, AbacusConsulting
  • July 2, 2014
Learn how to efficiently transfer a batch’s characteristics values from the sender material’s batches to the receiver material’s batches to save time and cost. Implementing batch derivation eliminates the need to manually enter characteristics data, while automatically preventing redundant or even incorrect data entry.
Learning Objectives

By reading this article, you will learn how to:

  • Make necessary configuration settings to activate batch derivation
  • Make necessary settings to configure and implement batch derivation
  • Run the entire end-to-end process to see how batch derivation optimizes the business process 
Key Concept

Batch derivation is an efficient and effective way to automatically transfer the characteristics values of batches of sender materials to receiver materials to maintain end-to-end traceability of products.

Companies managing materials in batches — whether they are raw materials, semi-finished, or finished products — can use batch derivation to optimize their business processes. They can reduce data entry efforts while also ensuring greater visibility and traceability during the entire production process. For example, in the cold rolled coil (CRC) steel industry, there’s a requirement that no matter how many production processes the CRC coil passes through, the very first and unique characteristic value identification Mother Coil Number of hot rolled coil (HRC) must always flow into all production processes of CRC coils.

Whenever a batch-managed material is processed in the production process, its characteristics change, and the batch-managed material attains different physical and chemical attributes. These changed attributes are maintained as characteristics values of the batch-managed materials. With batch derivation, you can control how the system manages the characteristics values flowing from parent material to child material, which in my example is HRC to the CRC sheet.

I cover the basic configuration settings you need to activate batch derivation. I also cover the master data that you need to set up, including settings in material master, classification, and batch derivation-specific settings. Finally, I cover the end-to-end business process in which I show how the settings made for master data reflect in the batch derivation process. For ease of comprehension, I use the sender material’s description as raw material and the receiver material’s description as finished goods. Therefore, raw material as a sender is the parent material, whereas the finished goods receiver material is the child material.

Jawad Akhtar

Jawad Akhtar earned his chemical engineering degree from Missouri University of Science and Technology. He has 17 years of professional experience, of which nine years are in SAP. He has completed eight end-to-end SAP project implementation lifecycles in the areas of PP, QM, MM, PM, and DMS in the steel, automobile, chemical, fertilizer, FMCG, and building products industries. He also has worked as an SAP integration manager and an SAP project manager. He has been proactively involved in a business development and solution architect role for seven years. He is the author of Production Planning and Control with SAP ERP, it's filled with in-depth infomation on discrete, process, and repetitive manufacturing types. His profile on LinkedIn is at http://pk.linkedin.com/in/jawadakhtar. You may follow Jawad on Twitter @jawadahl. Currently, he is associated with AbacusConsulting as Head of SAP Delivery.

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