SoftGuide > Functions / Modules Designation > Lot formation

Lot formation

What is meant by Lot formation?

In the field of production, “batch formation” refers to the process of combining similar or identical products or components into groups in order to run them through the production process together. This enables efficient and cost-effective production as well as better planning and control of production. Lot creation in production typically involves calculating and optimizing the optimal lot size, automating the creation of production lots, managing created production lots, prioritizing orders for different lots, tracking products within a lot through the manufacturing process and integrating with other systems such as ERP (Enterprise Resource Planning) and MES (Manufacturing Execution System).

Typical functions of software in the area of “lot creation” are:

In the area of awarding contracts, “lot formation” refers to the grouping of subcontracts or projects into a group or package of contracts that are awarded jointly to one contractor. This can be particularly relevant for complex projects or construction projects where various subcontracts or trades need to be coordinated. Lot formation in contracting typically involves identifying subcontracts or trades, forming contract lots based on specific criteria such as location, schedule, specialty or budget, and awarding these contract lots to contractors or subcontractors.

Typical functions of software in the area of “lot formation in the context of awarding contracts” are


In both areas, be it production or contracting, lot creation serves to increase efficiency, optimize costs, deploy resources effectively and simplify and improve the overall process.

The function / module Lot formation belongs to:

Tenders and bills of quantities (BOS)