Introduction

In today’s complex manufacturing landscape, businesses need a reliable solution to optimize operations, cut costs, and boost productivity. Microsoft Dynamics 365 for Finance and Operations (D365 F&O) is a powerful solution is designed to tackle every aspect of manufacturing, from material requisition to quality control.

In this article, we will delve into how D365 F&O (also known as Microsoft Dynamics 365 Finance and supply chain) can revolutionize your manufacturing processes. Discover the game-changing features that will help you create accurate bill of materials, manage shop floor operations flawlessly, and ensure top-notch quality control.

This top-tier ERP solution is designed to handle every aspect of your manufacturing processes with its comprehensive set of features. From planning and scheduling to production and quality control, D365 Finance & Supply Chain’s manufacturing module offers an array of tools to streamline your operations. With D365 you get seamless production planning, efficient shop floor control, effective inventory management, accurate cost accounting, and stringent quality control.

Key features and steps of the D365 manufacturing process

Listed below are some critical steps that can be managed by D365:

  1. 1.Create Bills of Materials (BOMs)
  2. 2.Create and release production orders
  3. 3.Plan and schedule production
  4. 4.Manage shop floor operations
  5. 5.Track inventory and costs
  6. 6.Manage quality control

Figure 1:D365 Manufacturing Features & Steps

D365 Manufacturing Features and Steps

Create Bills of Materials (BOMs):

BOMs define the materials, components, and instructions required to produce an item. You can create BOMs for each item you manufacture, including any subassemblies or raw materials required.

Create and release production orders:

Production orders define the quantity of items to be produced, the start and end dates, and the BOMs to be used. Once a production order is created, it can be released to start the manufacturing process.

Plan and schedule production:

The system allows you to plan and schedule production based on available resources, capacity, and demand. You can use the Production Control module to view the production schedule, monitor progress, and adjust as needed.

Manage shop floor operations:

Includes tools to manage shop floor operations, such as labor tracking, job scheduling, and work order management. You can use the Shop Floor Control module to track the status of each production order, view resource availability, and make real-time adjustments.

Track inventory and costs:

Provides real-time visibility into inventory levels, allowing you to manage raw materials, work-in-progress, and finished goods. You can also track costs associated with each production order, including materials, labor, and overhead.

Manage quality control:

Includes features to manage quality control processes, such as inspection plans, test results, and non-conformance reporting. You can use the Quality Control module to define quality standards, monitor compliance, and track issues.

90%

of manufacturers believe that implementing an ERP system like D365 F&O can help them improve their production planning and control.

Source: Aberdeen Group

Manufacturing processes require efficient tools and processes to manage production across multiple locations. Microsoft Dynamics 365 for Finance and Operations offers comprehensive features that help businesses handle manufacturing processes. With Dynamics 365 companies can create bills of materials (BOMs) that define the materials, components, and instructions required to produce an item. This feature ensures that the production process runs smoothly and that all necessary components are available when needed.

Production orders can be created and released after approving BOMs. This feature provides visibility into the production schedule, allowing you to track progress and make real-time adjustments. Microsoft Dynamics allows you to plan and schedule production based on available resources, capacity, and demand. These features all come together to help optimize production schedules, reduce lead times, and improve delivery performance.

The Shop Floor Control module allows businesses to track the status of each production order, view resource availability, and make real-time adjustments. This ensures that the production process runs smoothly, minimizing delays and downtime. Companies can manage raw materials, work-in-progress, and finished goods. You can track costs associated with each production order, including materials, labor, and overhead, letting you optimize your production processes and further reduce waste leading to increased profitability.

Quality control is vital in any manufacturing process. Dynamics 365 offers features to oversee such processes, including inspection plans, test results, and non-conformance reports.

You can use the Quality Control module to define quality standards, monitor compliance, and track issues. This feature ensures that your products meet the highest standards of quality, minimizing the risk of product recalls and ensuring customer satisfaction.

A Manufacturer user story:

A manufacturer of high-performance blenders implemented D365 F&O to streamline its operations and improve its supply chain management. When the implementation was complete, the company was able to reduce its inventory carrying costs by 20%, improve its production cycle time by 30%, and increase its on-time delivery rate by 20%. The company also gained real-time visibility into its operations, enabling it to make better-informed decisions and respond more quickly to changing market conditions.

This use case demonstrates how the system streamlines manufacturing operations, improves supply chain management, and enhances quality control processes. By optimizing production processes, reducing inefficiencies, and improving customer satisfaction, manufacturing companies can achieve long-term success and growth.

Manufacturing companies seek out an all-inclusive and cohesive ERP system that can accommodate their intricate business procedures. A reliable ERP system should possess advanced production planning and scheduling capabilities to optimize manufacturing operations and meet customer needs. In addition, inventory management is a crucial feature that enables the tracking of real-time inventory levels and facilitates efficient inventory replenishment. Material Requirements Planning (MRP) is also a significant function that permits manufacturers to determine the raw materials required for each product. Quality control is another vital element that supports quality control procedures and manages supplier quality. Supply chain management and cost management are also critical components of an ERP system, and real-time business intelligence and reporting is essential. Finally, a successful ERP system should be user-friendly, flexible, scalable, and can integrate smoothly with other systems employed by the company.

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Conclusion

Microsoft Dynamics 365 for Finance and Operations is a powerful enterprise resource planning (ERP) solution that offers a broad set of features to handle manufacturing processes. By optimizing production processes, reducing inefficiencies, and improving supply chain management, businesses can stay ahead of the competition and drive success. As the global market for ERP software continues to grow, more businesses will be looking at ways to achieve greater productivity, lower costs, and improved customer satisfaction, leading to long-term success and growth. These businesses are most likely looking to adopt a modern ERP like Microsoft D365 that lets them remain competitive in the industry. Unlocking the potential of this application is one way to equip your company to outshine the competition and thrive.

Streamline your manufacturing processes with Xcelpros, a trusted Microsoft partner and ERP systems integrator. Our expertise in leveraging Microsoft Dynamics 365 for Finance and Operations allows businesses to optimize operations, reduce costs, and enhance overall efficiency in the competitive manufacturing industry. From bill of material creation to quality control, we have the solutions you need to stay ahead.