Potency Management Or Batch balancing Production in D365

Hello everyone!

I hope you all are doing great!

In this blog, I’m going to share my knowledge and experience related to Batch balancing functionality which is available in the Production module.

Before going to see how it works in Dynamics D365. Let me explain to you what is meant by batch-balancing manufacturing.

Batch balancing basically a formula of the finished goods products that contain an active ingredient along with other components. Batch Balancing is a method to calculate the amount of each ingredient required to produce the product for a specific batch based on the potency value selected for the active ingredient during production order release to maintain the same quality.

Normally pharmaceutical and chemical companies deal with different active ingredients with potency differing slightly from the standard, this will cause a modification in formula contents for each produced batch.

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Ingredient types

There are four types of ingredients available when we are creating the formula.

1. None - It will not change or you can say it’s a fixed raw material quantity that will consume with the same ratio that has been defined in the formula regardless of what potency value you have selected for active ingredient.
2. Active - It’s a main component or raw material which has an attribute. The batch attribute value of the active ingredient is derived other ingredients' consumption quantity to meet the same quality.
3. Compensating – the quantity of a compensating ingredient that is consumed depends on the attribute value of the active ingredient selected.
4. Filler – A filler is a neutral component that is only used to reach the desired output of the quantity of finished goods

?Example:

Let’s take an example of a Paint company which is producing paint. Most paint consists of the same essential components.

1.?????Pigments.

2.?????Liquid

3.?????Binders

4.?????Box

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Now let’s move into the D365 application and see how we can setup a Formula to support the batch balancing process.

Setup of Active Ingredient:

To setup the active ingredient, please make sure you have enabled the batch tracking option and also specify the batch attribute:

For creating the batch attribute go to Inventory Management module > Setup > Batch > Batch attribute.

Here I have created a batch attribute with name concentration and defined the target value along with the Min & Max range which means the concentration of these items is not less than 10 and not beyond 30.

Now go back to Product information management and create a simple raw material with name pigment and select the Batch to enable tracking dimension.

Now go to the manage inventory fast tab and attached the product attribute against this item.

You can see all the default value of a batch attribute has been set by default against this item. You have the option to change only the target value if you want.

The next step is to select the Base attribute in the manage inventory tab so that this attribute will be considered as a potency attribute for the product. ?

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Here we have set up our Active ingredient successfully.

The next step is to setup the batch number against items and defined the attribute value against the batch number.

Go to Management Inventory > View > Batches

Click New and define the batch number.

?To define the batch attribute value, click on the inventory batch attribute and put the concentration value in the attribute value field.

I have setup three different batch numbers as shown below with different attribute values.

The next step is to update the on-hand inventory of items by using the recently setup batch number. You have the option to update the stock from the purchase order or any inventory journal. I have updated the inventory via stock count.

Setup Compensating, Filler & None types Items.

There is no special configuration required for all these items. You have the option to use batch tracking dimension or without batch tracking it’s up to your needs. I just created three more items as a normal process.

Finish Goods Setup:

After setup the all components, let’s configure the finished goods items and formula.

I have created an item with a simple process. The item type is product and the production type has been set to Formula as you can see below:

Setup Formula:

We have already setup all the raw material which is going to use in the finished goods recipe. Now let’s setup the formula of finished goods.

To setup the formula, Go to the engineer tab and click on the formula version:

?Click on new and setup a new formula as shown below:

Note: The formula is setup for 1 Drum or Box in which 100 liters of paint will be produced.

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The next step is to define the compensating relationship with the active ingredient and also how much the compensating consumption can be changed on the basis of the active ingredient batch attribute value.

Open the compensating principle by selecting the compensating item and clicking on the ingredient as shown below:

Here I’ve selected the active ingredient item id from the drop-down and selected the batch attribute which we have setup for managing the concentration and defined the factor value of changes of compensating item raw material.

We have completed the setup of the formula. Now just approve and activate the formula.

Now move to the production module and create a production order of finished goods.

?Click New batch order.

Select the Item “FG-01” which we have setup for this demonstration.

Select site & warehouse.

Enter the quantity “1”.

The formula will auto-pick as it’s approved and active.

Click Ok.

Perform the following operation:

• Estimate
• Released
• Start

Once the production order is in started state. The batch balancing option will be enabled.

Now open the batch balancing form by clicking on batch balancing option:

This form shows the recipe of the finished goods product. You can notice here, Estimated quantity is showing the same value as we have setup in the formula but the balance quantity is blank at the moment.

If you select the active ingredient, you will see the available batch of active ingredients with the attribute value.

Now let’s select the 1st Batch “B1” where the attribute value is 25 which is equal to our standard or base value of active ingredient and click balance batch ingredients.

In this batch, you can see the attribute value is equal to the base value that’s the reason there is no change in balanced quantity.

Now let’s select the second batch “B2” and click Balance batch ingredients.

Since the attribute value of this batch is less than the base value, so systems suggested consuming more active ingredients than estimated also the other ingredient value also changed except for the None ingredient type.

Calculation of Balance Quantity:

Active Ingredient: Base value / Attribute value * Estimated quantity =?(25/20)*40 = 50

Compensating Ingredient: ?Compensating ingredient estimated quantity?- [(Active ingredient Balance quantity?- Active ingredient estimated quantity ) * Compensating factor ] =?45?- [(50-40)*1.10]?= 34

Filler: Sum of estimated quantity (Active, compensating, Filler)?- Sum of Balance quantity (Active, Compensating) =?(40+45+15)?- (50+34) = 16

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Now let’s select the third batch “B3” and rebalance the ingredient again

In this case, the Attribute value of selecting batch is higher than the base value that’s the reason systems suggested consuming less active quantity and higher the compensating ingredient to meet the same quality.

Calculation of Balance Quantity:

Active Ingredient: Base value / Attribute value * Estimated quantity =?(25/30)*40 = 33.33

Compensating Ingredient:?Compensating ingredient estimated quantity?- [(Active ingredient Balance quantity?- Active ingredient estimated quantity ) * Compensating factor ] =?45?- [(33.33-40)*1.10]?= 52.34

Filler: Sum of estimated quantity (Active, compensating, Filler)?- Sum of Balance quantity (Active, Compensating) =?(40+45+15)?- (33.33+52.34) = 14.33.

Once you selected the batch which you want to consume, Click on Confirm the formula to generate the picking list according to the balance quantity of ingredients.

Once you click ok. the batch job will generate the picking list against of the production order. You have the option to auto-post the picking list from the same window by flipping the post-picking list option.

For viewing the picking list. Go to View Tab > Journal > Picking List

Here you can see the system has generated the picking list with a balanced quantity against Batch 2.

That's all for the day.

I hope you guys will like this blog. If you have any feedback feel free to share.

Regards

Muhammad Shoaib Hussain

D365 Supply Chain Management | Production | Retail | Finance Consultant.

Contact # +44 7513826768

Email # m.shoaibhussain@hotmail.com

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