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Case study · scenarioProduction and quality · Manufacturing (chemicals)

Batch production, quality release and shelf life for a specialty chemicals maker

How MatruOS runs batch production for a specialty chemicals maker: work orders against multi-level formulations, imported raw materials costed with freight and duty and checked before use, each batch held until quality releases it, batch and expiry recorded at output, and the earliest expiry taken first.

By Code Colonies10 min read
Medium businessesPlant head · Quality control

This page works through a scenario. It describes no client and reports no client results. It shows how MatruOS runs batch production records for a business of this type and size. The figures are arithmetic you can check, with the assumptions stated.

01The business

A specialty chemicals maker in Vapi produces resins, additives and intermediates in batches for paint, plastics and textile customers. Its formulations have several stages, with intermediates made in-house and used in finished products. Raw materials arrive in drums and tankers from domestic and imported sources. Many finished products have a shelf life or a re-test date, and customers ask for the batch number and test results with every consignment.

02What yield loss costs

Assume the plant runs 60 batches a month, each using ₹4,00,000 of raw material, and that the formulation should yield 96 percent by weight while batches actually average 94 percent.

Material lost per batch
about 2 ÷ 96 of the material value, so ₹4,00,000 × 2 ÷ 96 = about ₹8,300.
A month
₹8,300 × 60 = about ₹5 lakh.

Yield here is good output by weight against the output the formulation expects from the material charged. The batch count, material cost and yields are assumptions chosen to show the arithmetic. They are not industry averages.

03Where else the money goes

Raw material found out of specification after use
A drum used before it is tested can spoil a whole batch.
Product dispatched before release
A batch shipped before quality control releases it exposes the business to rejections and claims.
Shelf life
Finished stock past its shelf life is written off or sold at a discount.
Imported material costed wrongly
Freight, basic customs duty and clearing charges booked as overheads understate the cost of every batch that uses the material.

04How it usually runs

Batch sheets on paper
Material weighed into each batch is recorded on a batch sheet and typed into a spreadsheet later.
Testing and stores apart
The laboratory keeps its own register, and stores issue raw material that has arrived but not yet been tested.
Release by phone
The plant asks quality control whether a batch is cleared, and dispatch goes ahead on the answer.
Stock by item only
The books know how much of a product is in stock, not which batches or how old.

05How MatruOS runs it

Formulations as bills of materials

Each product has a bill of materials, with intermediates as sub-assemblies, by-products and scrap where the process produces them, and a planned loss percentage for each material, which sets the expected yield. Planning proposes work orders for finished products and the intermediates they need.

Raw materials costed and checked before use

The supplier's bill, entered against its goods receipt, is matched to the purchase order and the receipt within the business's tolerance. Freight, basic customs duty and clearing charges are added to the cost of the goods they relate to as landed cost. A quality plan for goods received sets the checks for each raw material, such as a pass or fail result or a measured value with limits. Lots under a hold plan wait in a quality hold place and cannot be used until checked, and the supplier's bill is held while the check is open or has rejections.

Batches recorded at output

Material is issued to the work order from stock, or used up automatically when output is recorded. Output records the good quantity, rejected quantity, batch number and expiry date. Unused material comes back to stock. Anything left in work in progress when the order closes is booked as a production difference.

Released before dispatch

A quality plan for production output holds each batch until quality control records its results and accepts it. The results stay on the batch's quality check.

Service bills read by the AI team

Bills that come without a goods receipt, such as freight, clearing and testing services, can be sent as files or photos; they are read and prepared for a person to confirm. Raw material bills are entered against their goods receipt, as above. The Payables clerk on the AI team warns the team before supplier bills fall due.

Earliest expiry taken first

When stock is taken for a customer order, MatruOS takes it from the earliest-expiring batch, and each stock movement records the batch and the delivery it went on. The expiry report shows the quantity of every batch expiring within the chosen number of days.

Cost against standard

Each work order shows material and operations against the formulation, and output cost against standard, so yield loss shows batch by batch.

06Who does what each day

WhoWhat they do
StoresReceive raw materials; held lots go to the quality hold place
Quality controlRecords test results on incoming lots and finished batches, and releases or rejects
Payables clerk, AI teamWarns before supplier bills fall due
ProductionRecords material charged and output on each work order
AccountsEnters bills against receipts, adds landed cost, approves held bills
Plant headReviews yield by product and the production difference each week

07One batch, start to finish (sample data)

  1. A drum lot of imported monomer arrives. Accounts adds freight, duty and clearing to its cost as landed cost. The lot waits in quality hold.
  2. Quality control records the purity at 99.2 percent against a lower limit of 99.0 and accepts the lot.
  3. Production charges 2,000 kg of material to a work order for an acrylic resin. Output records 1,880 kg good, batch AR-1031, with an expiry 12 months out. Expected output was 1,920 kg, so yield is 94 percent against 96.
  4. The batch waits in quality hold until its viscosity and solids are recorded and accepted.
  5. A customer order takes the older batch AR-1018 first, then AR-1031, and each stock movement records its batch against the delivery.

The material, quantities and results are sample data.

08Set up in 7 days

Items, suppliers and customers
loaded from a Tally or Busy export, or from spreadsheets.
Formulations
entered as bills of materials, with intermediates and planned loss.
Quality plans
set for key raw materials and finished products, with limits from the specifications.
Opening stock
loaded by batch with expiry dates.

09What to measure

MeasureHowHow often
Batch yieldGood output ÷ expected output from the formulationEvery batch
Production differenceBooked on closed work ordersMonthly
Raw material lots rejectedFrom the quality checks listMonthly
Finished stock within 90 days of expiryExpiry report, quantity per batchWeekly

10Not covered yet

  • A certificate of analysis printed from the batch's quality results.
  • The batch printed on the delivery note when the batch was picked automatically.
  • Re-test dates held separately from expiry. A re-test date can be recorded as the expiry.
  • A report of raw material rejections grouped by supplier.
  • AI analysis of failed quality checks. The Quality inspector role is being connected to quality checks.
  • Bill of entry and import IGST credit on imported material.
  • Reading a photographed raw material bill straight into a bill against its goods receipt.

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AI can make mistakes. Service bills read from files or photos wait for a person to confirm them; test results and every release decision are recorded by people.

Put this into practice On a system that knows your trade.

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See plans and what each includes
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