Microsoft Dynamics 365 Business Central can help various manufacturers manage production, inventory, supply chain, and financials seamlessly and seamlessly. Manufacturers can enhance visibility, reduce operational costs, and improve productivity by utilizing key manufacturing features within Business Central.
Here are a few core manufacturing features in Business Central and how they’re commonly used!
Production Order Management
The Production Order feature allows users to create and manage production orders, which are used to track goods, manage raw materials, and monitor product completion time. Production order management is critical for discrete manufacturers, where products are made in distinct, individual units or batches. These could be automotive, electronics, machinery, or consumer goods manufacturers, where it’s critical to ensure all materials are available when needed and track resource usage throughout the manufacturing process.
Primary benefits:
- Create and track production orders
- Work orders and routing definitions
- Monitor production costs, materials, and output
- Update inventory and production status in real time
Bill of Materials (BOM) and Routing
BOM describes the materials and components required to manufacture an item. The BOM ensures that the correct materials are used in production, streamlining procurement and inventory management by linking materials directly to production needs. Routing, on the other hand, defines the production process with details such as work centers and operations. It ensures processes remain efficient while allocating the right resources to the right tasks. An example of this would be an industrial equipment manufacturer planning operations based on lead times for each step in addition to resources needed.
Primary benefits:
- Create multi-level BOMs for complex products
- Define manufacturing steps, work centers, and machine resources in routing
- Associate BOMs and Routings with production orders
Master Production Schedule (MPS) and Material Requirements Planning (MRP)
MRP and MPS allow for the planning and forecasting of material, as well as capacity requirements based on demand, sales orders, and production schedules. MPS aligns production capacity with market demand; this is critical for consumer goods manufacturers to ensure their output meets customer orders (while simultaneously preventing overproduction and financial loss). Similar to this, MRP helps make sure production materials are available when needed, therefore ensuring all production maintains its schedule and also preventing excess inventory.
Primary benefits:
- Create a master production schedule to optimize production capacity
- Run MRP to plan material needs and generate purchase or production orders
- Maintain accurate stock levels for raw materials and finished goods
- Plan for lead times and buffer stock
Inventory Management
Inventory management is crucial in manufacturing to ensure raw materials, work-in-progress (WIP), and finished goods are tracked efficiently. Business Central helps manage stock levels, inventory locations, and inventory movements. As an example, automated inventory management is critical for manufacturers with multiple warehouses or locations; it allows tracking of where the inventory is located, what stage in the production process it is in, and if reallocation is needed to optimize any necessary flow of materials.
Primary benefits:
- Real-time tracking of raw materials, WIP, and finished goods
- Barcode scanning for inventory management
- Lot and serial number tracking for traceability
- Integration with production orders to adjust inventory based on usage and production outputs
Capacity Management with Work Centers & Machine Centers
In Business Central, capacity management ensures the proper and efficient use of resources by managing the availability of Work Centers and Machine Centers, which track and manage production processes. It can also track production and resource usage costs at both the Work Center and Machine Center levels. Also, using Production Journals, you can record work done and track production progress accurately.
Primary Benefits:
- Make the most out of available resources with proper capacity management
- Manage production costs more effectively and stay within budget
- Accurately capture subcontractor costs
- Generate reports that show actual performance against planned performance
While there are many more relevant manufacturing features in Business Central, these are just a few to highlight the powerful benefits it can provide to many different types of manufacturers. The benefits experienced with Business Central are significant, especially for those laden with manual processes, Excel spreadsheets, and lack of visibility.
For those considering Business Central for the first time or searching for the best options to make Business Central work for them, DSWi is a trusted implementation partner that specializes in manufacturing, supply chain, and project-based businesses. To start the conversation, book a discovery call today.
