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Linda HopeSenior Industry SpecialistEdgewater Fullscope
See What’s New In R2How Microsoft Dynamics AX R2 addresses potency, sequencing and lot inheritance
Process Manufacturing R2 – Enhancements
Process Manufacturing R2 – Enhancements
Process Manufacturing R2 – Enhancements
Potency Management
Potency managementPotency is the measurement of active material in a specific lot, normally expressed in terms of an active unit.*
* APICS Dictionary (American Production and Inventory Control Society)
Active ingredients
Compensating ingredients
Filler ingredients
Other ingredients
Compensating
.
C
Active and Compensating ingredientsOpposing effectStandard Potency
% Caustic
Potassium Hydroxide
Sodium Hydroxid
e
As Potency increases, less Quantity of the
Active Ingredientis required
As less Quantity is needed, more Compensating
Quantity is required
Active
Compensating
.
C
Active and Compensating ingredientsOpposing effectStandard Potency
% Caustic
Potassium Hydroxide
Sodium Hydroxid
e
As Potency decreases, more Quantity of the
Active Ingredientis required
As more Quantity is needed, less Compensating
Quantity is required
Active
Active and Compensating ingredientsComplimentary effect
OliveOil
As Potency decreases, more Quantity of the
Active Ingredient is required
As more Quantity is needed, more Compensating
Quantity is required
ActiveStandard Potency
% Fatty Acid
Compensating
Active and Compensating ingredientsComplimentary effect
OliveOil
As Potency increases, less Quantity of the
Active Ingredient is required
As less Quantity is needed, less
Compensating Quantity is required
ActiveStandard Potency
% Fatty Acid
Compensating
Active and Compensating ingredientsComplimentary and Opposing effect
Active Compensating
Compensating
Complimentary Effect
OpposingEffect
Compensation Principle
Filler
12
System Demonstration
Batch Balancing in Production
•Define the batch production formula interactively based on the concentration of key ingredients.–Easily select inventory batches or lots based on current potency of the Active ingredient–Automatically calculates the required Active ingredient quantity–Determines quantities needed for any Compensating or Filler ingredients–Updates the batch production formula based on the adjusted formula
Batch Balancing in Production•Define the batch production formula interactively based on the concentration of key ingredients.–Easily select inventory batches or lots based on current potency of the Active ingredient–Automatically calculates the required Active ingredient quantity–Determines quantities needed for any Compensating or Filler ingredients–Updates the batch production formula based on the adjusted formula
Batch Balancing in Production
A batch of lower concentration (42.5%) has been selected which results in a increased required quantity for the Active ingredient.
When the Balance batch ingredients is clicked, the Balanced quantity for the Compensating, Filler and other ingredients are calculated.
Batch Balancing in Production
A batch of lower concentration (42.5%) has been selected which results in a increased required quantity for the Active ingredient.
When the Balance batch ingredients is clicked, the Balanced quantity for the Compensating, Filler and other ingredients are calculated.
Attribute-based Pricing & Accounting Pay Suppliers and value inventory based on the active ingredient quantity received.
85% Active
= $655.5
0
50Gallon
s50
Gallons
82.5% Active
= $636.2
2
50 Gallons
86.7% Active
= $668.6
1
Price calculation may vary by supplier and item
Most common price calculation: Price / Target Potency * Actual Potency received
Attribute-based Pricing
Set purchase price and inventory value based on the received item’s concentration Required in chemical industries
where potency fluctuates from batch to batch
Required in oil and specialty chemical industries where pricing is based on percentage caustic, acids, or other intrinsic efficacies
Standard business practice for pricing precious metals
Attribute-based Pricing
• Provides a flexible formula that allows companies to pay their suppliers based on the actual results for potency
• Assigns actual inventory value for each inventory batch that is potency price controlled
• Margins will be computed based on the actual potent value of materials sold or consumed
20
System Demonstration
Batch Order Sequencing
• Ability to sequence products on a resource according to a defined priority based on product characteristics– Ability to define Sequences and Sequence groups– Assign Sequences to items– Assign Sequence groups to resources– Apply Sequence principle to the master schedule
Batch Order Sequencing
From this…
Batch Order Sequencing
To This…Flavor – Pack Size - Tablet Size
Cleanup!
Batch Order SequencingSimple Sequencing : Flavor
Grape
Banana
Orange
Minimizes ChangeoverAnd Cleanups
Lemon
Chocolate
Batch Order Sequencing
Safe Sequencing : Drugs
Ensure different products that look similar are never sequenced to follow each other
Batch Order Sequencing
Using multiple sequences ranked within a sequence group provides the desired sequence
Sequence 2: Pack Type
Sequence 1: Flavor
27
System Demonstration
Lot Inheritance
Lot Inheritance
• Ability to automatically transfer properties of a raw material batch to a manufactured item’s batch
• Transfer key batch characteristics (batch attributes)
• Transfer shelf life date properties
Lot Inheritance: Chemicals
Chemical 123
Batch AttributesAppearance white crystalline substanceMelting point app. 65°CSolubility in water 680 g/l (20°C1400 g/l (60°C)Alkaline resistance goodAcid resistance decompositionOdour slight internal odourDelivery form powder, granulesHS-Code 28 31 10 00
Batch AttributesAppearance white crystalline substanceMelting point app. 65°CSolubility in water 680 g/l (20°C1400 g/l (60°C)Alkaline resistance goodAcid resistance decompositionOdour slight internal odourDelivery form powder, granulesHS-Code 28 31 10 00
Co-Product A
Batch AttributesAppearance white crystalline substanceMelting point app. 65°CSolubility in water 680 g/l (20°C1400 g/l (60°C)Alkaline resistance goodAcid resistance decompositionOdour slight internal odourDelivery form powder, granulesHS-Code 28 31 10 00
Co-Product B
Lot Inheritance: Pharmaceuticals
Human Skin TissueBlood Type: O +
Cell Culture 1Blood Type: O +
Cell Culture 2Blood Type: O +
Cell Culture 3Blood Type: O +
Cell Culture 4Blood Type: O +
Lot Inheritance: Shelf Life
Example: Assembly
Expiry Date: 12/21/2012
Expiry Date: 12/19/2012
Expiry Date: 12/17/2012
Assembly Components
Assembly will inherit the earliest shelf life of 12/17/2012
33
System Demonstration
Lot Inheritance
Example: Consumed inventory lots include these attributes and shelf life
Shelf Life: Earliest Expiration date is 04/01/2013
Attribute Values: Unique attributes and values for each item and batch
Lot Inheritance
Example: Batch for the formula item includes the batch attributes and shelf life dates of the consumed raw material batches
Inherits attributes of consumed lots and their respective values
Inherits earliest expiry date for consumed batches
Process Manufacturing R2 – Enhancements
