Dynamics 365 Business Central – Basic Manufacturing Part 2

Hello and welcome to TMC’s “How-to” demo series for Dynamics 365 Business Central where we explore the features of Business Central for basic tasks within your organization. If you can’t find a demo you’re looking for let us know in the comments below and we’ll try to make it happen.

Today we’re going to continue with basic manufacturing. In part one of this manufacturing video, we covered:

Items
Build materials
Routes
Capacities in Business Central

Now in part two we’ll go through the manufacturing orders. My name is John Hoyt, Solutions Specialist for TMC. Let’s get started!

In this video we’ll cover five types of production orders and their specific purpose in the manufacturing system:

Simulated
Planned
Firm planned
Released
Finished

Let’s see how this works. I’ll put my Business Central System. Once again I’m logged in with the Production Planning role and I’m going to start by doing the drop down to my Production Orders. Now before we go through the different types I just want to show you what a production order transaction looks like and we’ll do that with a Planned Production order for that same gas plasma system we’ve been working with. Very similar to the other transaction records in Business Central, the general tab allows me to issue the manufacturing production order, description of what I’m going to be producing, the quantity of finished goods that I’m going to be producing due dates responsible users etc. In the line item I can have a single line to produce all of the finished goods desired in a single step or I might have in the case of limited capacities and a large quantity be produced, break this out into multiple lines for scheduling purposes with a quantity and dates appropriate for each of those groups. Scheduling start and end time again goes into some of the capacity and planning requirements and then down at the bottom I’ll indicate all of the posting details. Now if I return back and take about the different production types themselves let’s start with the simulated production orders.

The main purpose for a simulated production order really is for quoting and costing you’re doing research and development want to get a cost estimate for a new item or significant changes to an existing item. You can go through all of that with a simulated production order and see the impact as you change various inputs or different work centers machine centers etc. Simulated production orders do not influence the planning of true production orders that is the planning components. MPS and MRP will ignore anything that you have in the simulated production order when it comes terms for planning or capacity.

The planned production order like the example we just looked at… these can be created directly from a sales order or they can come out of the planning, whether that’s based upon a forecast or something of that type.

Released production orders basically allow us to provide input into those capacity requirement planning showing the total capacity requirements by work center or by machine center. They represent the best estimate of the future load for those work centers or machine centers. Typically they’re generated from planning but they can also be created manually but we recommend doing them through planning because a manually created production order can be erased during subsequent planning generations.

Now the firmed planned production order, very much a twin of planned production order but it’s a placeholder. It’s simply taking up room in the calendar and reserving or holding capacities at work centers are at machine centers because I’m not ready yet to finalize the true production order that will eventually take its place.

The released production orders – they can again come directly from a sales order so direct link to demand and then straight onto the floor for production. Just because I’ve released a production order though does not mean i have necessarily consumed the raw materials and components that go into that. That again is going to be a function of my back or my fulfillment method on the item card we talked about that in the first video. In some cases i may forward flush in other cases i may backward flush my materials at the completion or at the initiation of my production order itself.

And then finally the finished production orders – these are completed they’ve gone through the manufacturing process. This is very important in completing the costing life cycle again this is where I’m going to finalize the consumption either through a manual entry or through a back flush operation but I’ll know my final costs for the finished good at that time I can also use these of course for statistical analysis and talking or referring back as part of my planning procedures. Final note on the finished production orders -they cannot be changed they are completed and they have been posted through the system.

So in this video we went through the different types of manufacturing production orders and the specific purpose for each type. That wraps up this video series on basic manufacturing. If you have any questions would like to make a suggestion on what we should cover in the next video, please comment down below I’ll do my best to answer your comments but if you need immediate technical support, I invite you to visit our website www.abouttmc.com . Also don’t forget to like this video and subscribe to our channel.