SAP ERP Solution for Fine Chemical Industry

The standard processes implemented by fine chemical enterprises have the following characteristics: single input driven multi output production mode, fully automatic assembly line covering multiple processing stages, and products may be output from the production line at each stage.

Most ERP underlying data models are designed for discrete manufacturing enterprises and are not suitable for complex production site management in fine chemical enterprises, making it difficult to model production lines in the chemical industry. For example, in general, BOM usually supports single output in a pyramid shape, making it difficult to handle the management needs of multiple outputs. For example, different processing stages in fine chemical production processes may be parallel or serial, making it difficult for traditional processes to simulate complex chemical product production processes.

TransInfo's fine chemical industry solution can flexibly model production sites, support parallel or serial processing stages within the same processing flow, and even design more complex mesh structures. Three typical production models can be flexibly configured according to different actual production modes: fully automatic production line, discrete production mode, and mixed production mode.

Supporting fine chemical production enterprises, the formula structure of single input multi output in the production process is simply an inverted pyramid shaped list mode, while the formula mode of single input multi output starts from raw materials.

• Based on formula management, fully support the production model of chemical enterprises:

It can support 5 types of inputs: material type, equipment type, labor type, miscellaneous type, and operation specification instruction type.

Three types of outputs can be defined: finished products, by-products, and by-products.

Support the function of expanding formulas, which can combine multiple formulas to form a new processing process, used to define inventory data, simplify and standardize all processes between production, inventory, and cost activities.

In order to collect quality inspection information more comprehensively, a pre-set quality inspection plan is specified for each type of input and output link. With the support of a comprehensive data model, the software can comprehensively collect and produce costs and quality inspection results related to the entire process.

The solution supports batch bidirectional traceability function, which can quickly track all raw materials and finished products, including their batch characteristics and batch numbers. Based on the actual production situation during the production process, the problem products can be quickly located, enabling the enterprise to have a fast response ability.

Through the entire supply chain from supplier procurement, collection of production site information, warehouse storage, to customer shipment, it is possible to flexibly query batch information, and quickly display the business information flow of the entire supply chain based on the receipt of a batch, processing work order, and product batch information. Therefore, bidirectional batch tracking enables fine chemical enterprises to respond to product recalls in just a few minutes.

At the same time, the bidirectional traceability ability of batches allows process manufacturing enterprises to quickly remove problematic products from the shelves through customer simulation recalls and certification audits in actual product recall events, greatly reducing customer risk. At the same time, it also includes the scope of the recall, and taking rapid action helps protect the long-term value and reputation of the brand.

Meet the dual inventory unit management of finished products at various business nodes in the logistics process for precision chemical enterprises to handle formula based production and manufacturing processes.

Support net weight management to assist enterprises in conducting transactions with customers and suppliers based on actual weight, including order submission, cost accounting, procurement receipt, production, sales shipment, pricing, shipping, and invoicing.

Assist chemical enterprises in managing the shelf life and optimal usage period of materials, and solve various problems encountered in the planning and scheduling of "expired waste" in the supply chain.

• Quality visibility

Support the visibility of shelf life and other information of inventory in inventory. Each batch can track management date related information, such as supplier batch time, batch system creation time, best use date, retest reminder date, expiration date, etc.

• Optimize inventory

Integrate shelf life management into the subsequent business processes of the supply chain, control and meet product availability during the production planning process, and minimize expired and scrapped products. In inventory transactions, priority is given to which batch of materials to use based on their expiration date. Depending on the needs of business scenarios, the inventory adjustment principles of first in, first out (FEFO) and first in, first out (FIFO) can be flexibly adopted.

Provide complete quality control and management functions, covering all aspects of the entire supply chain, including procurement and receipt, warehouse inventory, work in progress, finished product shipment, and returns.

• Reward standard quality control system

The solution provides centralized quality control and inspection for all application modules. Based on materials and transaction types, enterprises can specify standard quality inspection plans to collect quality inspection results from the entire supply chain when actual business occurs.

• Flexible customization of quality control requirements

In the actual production process, enterprises can define quality control requirements for each processing stage and process. Quality control testing can be set by target values, maximum limits, and minimum limits. Multiple quality control tests can be combined to form a group to record results and report effectiveness.

• Multi stage quality control

In the early stage of production, you may need to test raw materials, in the middle stage, you may need to test process information such as temperature and time, and in the final stage, you may need to test the properties of the final product. For batch controlled products, the quality test results of the final product can be transformed into the specification properties of the product.

TransInfo Fine Chemical ERP can help fine chemical enterprises calculate product costs correctly, especially when it comes to meeting the multi output production model.

The cost accounting solution pays special attention to the following cost accounting points:

Finished products - The cost of finished products is generally the main output, accounting for the majority of the entire cost.

Joint products - The cost of joint products is generally not the main output, but a product with market value.

Byproducts - The finished products produced during the production process by finished products or joint products are called byproducts, which have lower value compared to the first two. Generally, they can be disregarded or deducted from production costs according to standard costs.

Intermediate products - generated in one processing stage of the processing process and automatically transferred to the next processing stage, with costs automatically transferred to the next processing stage and then allocated to subsequent output costs.

The plan has built an intelligent warehousing system, which achieves refined inventory management through docking with equipment such as PDAs, barcode guns, inventory machines, and various transportation equipment, thereby optimizing the procurement process and improving inventory accuracy.

• Innovative integration of barcode labels and RFID technology

Intelligent devices run through the entire logistics process, achieving data-driven and intelligent control of products.

• Establish application scenarios for automated equipment such as three-dimensional shelves/containers

By using information technologies such as the parent vehicle system, four-way shuttle vehicle technology, multi-layer shuttle vehicle technology, ground four-way light 2 heavy AGV technology, cargo to person picking system, WMS (warehouse management system) system, WCS (warehouse control system) system, etc., the solution of "shelf+robot=automated warehouse material storage system" is achieved.