Issue

As a good practice, batch is globally used in Syensqo to track and trace the movements for homogenous partial quantities of required materials/products. 

However, in Composite Materials business, batch is also used to track and trace the movements for individual piece of materials in some scenarios, even if they have the same characteristics and should belong to the same batch. This KDD is to assess the option of using SAP serial number to manage the individual piece of items in the relevant scenarios. 

Recommendation

Introduce SAP Serial Number (SN) concept and combine serial number and batch management to track and trace the movements for the individual item rather than using batch number only. 

Background & Context

In the following 2 scenarios, batch number is used to track and trace the movements for individual piece of materials in Syensqo.

1). Sublot Scenario

For example, a Process Order is created in SAP to make the Master Roll, which is a piece of carbon fabric of 1 meter wide x 100 meters long. A SAP batch number, for example MROLL1, is generated and assigned to the Master Roll. Later, another Process Order is created to consume Master Roll (MROLL1) and produces 5 separate pieces. Each is 20 CM wide and 100 meters long. Then another 5 SAP batch numbers are generated to identify each of the sublots: MROLL10001, MROLL10002, ... , MROLL10005. 

2). Non-Sublot Scenario 

In another case, for example, 500 liters of a liquid adhesive (bulk finished goods) is produced with SAP batch BATCH1. It's been packed in 5 liter cans (packed finished goods). In total, there are 100 cans of  the adhesive in BATCH1. Business may number each individual cans by using unique numbers related to adhesive BATCH1, eg. BATCH1001 for can#1, BATCH1002 for can#2, etc. Those unique numbers look like sub-batch numbers, but they will only be used to physically identify the cans. They are not SAP batch numbers and are not stored in SAP currently. So those sub-batch numbers cannot be used for tracking or tracing. In other words, business can't track & trace each individual cans in SAP at the moment.

Business will print the Master and/or Sub Batch depending on the requirement. Batch numbers are limited to 10 characters. Most are 6+4 or 6+3, but other schemes are also possible.

Assumptions

1. Business needs to track & trace the relevant materials at the individual item level.
2. Master Roll and Sublot Rolls use different material numbers.
3. Bulk finished goods and related packed finished goods use different material numbers. 

Constraints

1. SAP standard serialization numbering doesn't reflect the relevant Batch numbering. 
2. Some standard Fiori Apps don't support serial number feature, for example F1061 Transfer Stock - In Plant. In this case, classic GUI transaction MIGO will be required. (Refer to SAP Notes# 3459964)

   https://userapps.support.sap.com/sap/support/knowledge/en/3459964

3. QM inspection at serial number level in conjunction with EWM is NOT (yet) supported in S/4HANA. 

Impacts

1. Impacts on Processes

• To perform relevant material transactions, such as goods receipt and stock transfer, user need to not only specify batch number but as well as serial numbers for all the relevant individual materials. This can also combine with the handling unit (HU) management. And in this case, user will need to specify each serial number for all the items in a HU. 
• Since serial number doesn't directly reflect the batch numbering, user won't be able to tell the batch number by relevant serial number. (However, since batch can be configured as mandatory for the relevant serialized material, batch number will be also associated with relevant serial numbers.) 

2. Impacts on Other Domains

1). WM/EWM

When moving serialized material (meaning, material with serial number) in and out warehouse, user also needs to specify the relevant serial numbers.

2). Data and Migration

• New data object is introduced: Serial Number
• Data Uploading: Serial Numbers need to be added when uploading the relevant stocks (Stock-on-Hand) or legacy transactions from legacy SAP ECC systems.     

3. Impacts on Developments

Developments may be required to:

• Enhance the standard Fiori Apps to support the serial number features.
• Build the visual connection between the batch numbering and serial numbering.       

4. Impacts on Interfaces

If serialized materials are transacted in 3PLs (Third Party Logistics) or other TPAs (Third Party Applications), such as Neptune and Weighbridge, serial number information will need to be communicated in the relevant interfaces.  

5. Impacts on Change Management

Additional training is required for serial number management functionalities. 

Business Rules

Potential business rule if adopt Serial Number management:

- Serial number will be activated for the materials requiring track & trace at individual item level.

Options considered

Option A: Introduce Serial Number (SN) combined with Batch Management

With this option, during goods receipts from production, relevant Serial Numbers (SNs) will be generated and assigned to each of the material items. It is also possible to generate the required SNs in advance and prepare the relevant labels before goods receipt. SN and relevant Batch number should be printed on the label with the scannable barcode to streamline the downstream transactions such as stock transfer, stock take, picking/packing and goods issue etc.  

1. Sublot Scenario

For the above Sublot scenario, with introducing SN, the Sublot Rolls will be received into the same batch number as the one for Master Roll, and with serial numbers generated for each of the Sublot rolls.

Note: a development may be required to force receiving Sublot Rolls with Master Roll batch number. Otherwise, discipline will need to be established to follow the batch rule. 

2. Non-Sublot Scenario 

Similarly, for the above Non-Sublot scenario, packed FG (Finished Goods) will be received using the bulk FG (eg. 500L liquid adhesives) batch number, and serial numbers will be generated for each of the packed FGs (eg. 5L cans).

Option B: Replicate AS-IS Batch Number Logic 

With this option, different batch numbers will be generated for either Master Roll or Bulk FG, as well as each of the individual FG items. Development will be required to maintain the numbering link between the original batch and the subsequent batches.

1. Sublot Scenario

For the above Master Roll example:

2. Non-Sublot Scenario 

For the above liquid adhesives example:

Evaluation

Based on four different criteria, the below matrix compares the pros and cons of above 2 options when tracking and tracing the movements for individual piece of materials. Each option is assigned with a Harvey Quarter to indicate the extent of alignment with each criteria. A four quarter means fully aligned, whereas a zero quarter means not aligned at all.

See also

Change log

Workflow history