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Case Study 10: Chemical Processing Custom Formula Management

A. The Company Industry:

Chemical processing for petroleum refining producing specialized lubricants, additives, and industrial chemicals with complex formulation requirements.

B. What needed to be done:

The chemical processor required enhanced capabilities within the Production module of Dynamics 365 F&O to manage custom formulas with variable ingredient ratios based on raw material specifications and desired product characteristics. The solution needed to support formula versioning for different product grades, enable catch-weight processing for bulk chemical inputs, calculate co-products and by-products with appropriate cost allocation, and apply dynamic formula adjustments during production based on laboratory test results at specific bill of materials (BOM) steps.

C. How Dynatuners accomplished the deliverable:

Dynatuners configured the Process Manufacturing module leveraging formula management capabilities to define base formulas with ingredient percentages, processing instructions, and quality specifications for each finished chemical product. Formula versions were established for different product grades (premium, standard, economy) with automated version selection based on sales order specifications. Catch-weight functionality was enabled allowing production operators to record actual weights of bulk chemical inputs rather than discrete quantities, with formula calculations automatically adjusting dependent ingredient quantities to maintain ratio specifications. Co-product and by-product output was configured on formulas with cost allocation methods (sales value, quantity-based) to appropriately value multiple outputs from single production runs. Custom X++ development extended the production module to enable mid-process formula adjustments at designated BOM route steps where quality control testing occurs. The customization allowed laboratory results (viscosity, specific gravity, chemical composition) to trigger recalculation of remaining ingredients to achieve target specifications. Integration with laboratory information management systems (LIMS) automated the flow of test results into Dynamics 365 triggering formula adjustment workflows. Batch attributes were configured to track product characteristics through production enabling traceability and quality documentation required for customer certificates of analysis and regulatory compliance.

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