SAP MRP/MPS - Batch Expiration Date Management

Batch Expiration Date Management in SAP MRP/MPSSAP MRP/MPS

&M t i l Ob lMaterial Obsolescence

• SAP ECC 6 0• SAP ECC 6.0

Solution BriefSolution Brief

Index

Synopsis11

Batch Expiration Date Mgmt in MRP/MPSRequirements

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IT Sapiens’ Solution Features33

S l ti M it55

Solution Demo44

Solution Merits55

Our Value Proposition66

May 27th 2014 © 2014 IT Sapiens, Inc. Proprietary and Confidential

Questions ?77

p

1

Synopsis11

Standard SAP MRP/MPS Functionality in all R/3 and ECC versions: MRP considers inventory stock categories at a material level, based on the

configuration of the MRP related availability checking ruleconfiguration of the MRP related availability checking rule For a material, per stock category (unrestricted, blocked, quality,

returns) MRP considers the cumulative inventory of batches, irrespective of the expiration date of respective batchesirrespective of the expiration date of respective batches

It is expected that when batches expire out into the future, the system should recognize the batch expiration date and decrement the availability of the stock such that a planned order/pur.reqn could be suggested for internal/external procurement vis-a-vis a requirement/issue. This is a GAP in SAP.


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Batch Expiration Date Mgmt in MRP/MPS Requirements22

Industry Requirements for Batch Expiration Date Mgmt in MRP/MPS: For Regular Stock items, Customer Stock items, Subcontractor Stock

Items, Vendor Consignment Stock Items, Project Stock itemsItems, Vendor Consignment Stock Items, Project Stock items If a material is batch managed and shelf life managed, MRP should

during planning, dynamically take into consideration the expiration date of balance batches in inventory after consumptionexpiration date of balance batches in inventory after consumption

Calculate the inventory quantity of a batch (for all batches in general) that will expire on the expiration date

reduce the ‘net available material inventory’ per requirement date, by the inventory of batches whose expiration date is less than the requirement date of the requirement.

The batch numbers of the expired batches and their quantities should be displayed in the batch line (MRP Element) on the MRP Results/Evaluation Screen and in Stock/Requirements ListsResults/Evaluation Screen and in Stock/Requirements Lists

Material Obsolescence Reports should be based on Net Expiring Qty.May 27th 2014 © 2014 IT Sapiens, Inc.

Proprietary and Confidential3


Solution Excerpts: For Regular Stock, Customer Stock, Subcontractor Stock, Vendor

Consignment Stock and Project Stock materials, the Solution dynamically takes into consideration the expiration date of

balance batches in inventory after consumption Calculates the inventory quantity of a batch that will expire on the y q y p

expiration date Reduces the ‘net available material inventory’ per requirement

date by the inventory of batches whose expiration date is lessdate, by the inventory of batches whose expiration date is less than the requirement date of the requirement

Expiring Batch numbers and their quantities are displayed in the batch line (MRP Element) on the MRP Results/Evaluation Screen and the Stock/Requirements List Screen

Stock/Reqts List shows expiring batches even for Materials planned by APO/SCM

Functionality includes Materials planned by “Re-order Point Planning’ too May 27th 2014 © 2014 IT Sapiens, Inc.



Solution Excerpts: Functionality works with and without MRP Areas too Ability to run On-Demand MRP/MPS Runs “WITH Shelf Life Expiration

Date Planning (SLED)” and “WITHOUT Shelf Life Expiration Date Planning (SLED)”

Functionality can be activated by Plant and in combination with any other Functionality can be activated by Plant and in combination with any other delimiters e.g. Plant, MRP Type, Division Pl t MRP T M t i l G e.g. Plant, MRP Type, Material Group


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Solution Excerpts: Scope of SAP Transactions that the Solution works with is:

MD01 – Total planning (Online) (MRP) MD02 – Single Item, Multi-level (MRP) MD03 – Single-Item, Single-Level (MRP) MD04 & MD07 – Stock/Requirements List MD05 & MD06– Individual and Collective Display of MRP List MD41 – Single Item Multi-level MPS MD42 – Single Item Single Level (MPS) MD43 – Single Item Interactive (MPS) MD50 – Single Item –Sales Order – (MRP) MDBT – Total planning (Background) (MRP) MDBS – Total planning (Background) (MPS)


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Solution Demo – Material Batch Stock44


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Solution Demo – MRP Run44


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Solution Demo – MRP Run Results44

Regular Stock Expiring Batches shown

Customer Stock segmentExpiring Batch shown


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Solution Demo – MRP Run Results44

Subcontractor Stock SegmentSubcontractor Stock SegmentExpiring Batch shown


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Solution Demo – MRP Evaluation List44

Regular Stock Expiring Batches shown

Customer Stock segmentExpiring Batch shown


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Solution Demo – MRP Evaluation List44

Subcontractor Stock SegmentExpiring Batch shown


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Solution Demo – Stock/Requirements List44

Ability to run MRP:y• with SLED Plng. OR• without SLED Plng.


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Solution Demo – Stock/Reqts List for Materials Planned in APO/SCM44

Expiring Batches shown even for Materials Planned in APO/SCM/External System


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Solution Demo – Stock Requirements List - Materials with Reorder Point Planning44

“Expiring Batches” – REAL TIME Disposition on the time scale

15 May 27th 2014 © 2014 IT Sapiens, Inc. Proprietary and Confidential

Solution Demo – Material Obsolescence Report44


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Solution Merits55

“Batch Expiration Date Mgmt in MRP/MPS” Merits: Real time net requirements planning taking into consideration Batch

expiration date / last ship date / next inspection date or any other date from p p p ythe 6 additional Batch dates

Standard SAP MRP/MPS configuration and master data leveraged Scalable to factor any ‘Batch characteristic’ driven Batch Inventory Scalable to factor any Batch characteristic driven Batch Inventory

consideration, e.g. Potency, Batch Statuses, Batch Usage decision, Quality score, etc.R li MRP ti i Pl d O d P h R Reliance on MRP suggestions viz. Planned Orders, Purchase Reqn, instead of Custom “Point-in-time” reports

Real time visibility of ‘Discounted Batch Inventory’ in MRP Lists, Stock/Requirements List. Accurate Material Obsolescence Projections.

Functionality can be activated/de-activated per Plant or any other combinations of delimiters

Functionality works with and without MRP Areas too NO SOURCE CODE MODIFICATION OF ANY KIND May 27th 2014 © 2014 IT Sapiens, Inc.


Our Value Proposition66

Reduced TCO, Highest First Pass Yield and Highest Quality from: Strong expertise in providing end-to-end Supply Chain Solutions Strong Expertise implementing SAP, enriching Business processes and

alleviating GAPs in SAP, for Life Sciences, Consumer Products, Food and Beverage, Chemical and High-Tech Industry segments

Experienced in Implementing cGMP compliant SAP Solutions for Regulated Environments

Very experienced consulting resource base with 12+ years experience and deep cross-functional expertise

Rich Knowledge base of custom solutions to address GAPs in most SAP applications

Ability to demonstrate end-state on Day 1 using in-house SAP Systems rich with: Pre-configured Solutions demo-able SAP Functionality Demo-able IT Sapiens custom solutions Framework to develop strawman solutions

Our “Say-To Do” Ratio is 1:1May 27th 2014 © 2014 IT Sapiens, Inc.


Questions ?77

For more information…kindly contact

Vijay PisipatyDirector-ERP Solutions & ConsultingIT Sapiens, Inc.e-mail: [email protected]


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SAP MRP/MPS - Batch Expiration Date Management

Technology

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