Hi Anand,
Either I put the matter in inappropriate manner or you just misunderstood it completely 
Anyways, I'll explain it again. And it is somewhat like basic functionality of PM notification (IW21))
Basically, no inspection set up or material movement is involved. Lab 1 is chem lab and Lab 2 is mech testing lab which serves the respective testing for QA users and other users also.
They want to map the process in SAP, for information and communication, as in whenever a user sends a sample for analysis or testing, lab personals need request through SAP and similarly, communicate the same once the job is completed. They would change the status from 'Created' to 'Complete' in SAP. This way they can ensure the correctness and process mapping in the system.
I hope I could explain better this time.
Kind regards,
ntn