Manufacturing with Dynamics AX

Zerone TechnologiesState of Qatar

In Association with

Microsoft, QatarVenue: Hilton, Qatar

28 Sep 2015

Gagandeep Garg | Senior Manager – Software Solutions | Zerone Technologies

Agenda

Dynamics AX Manufacturing Overview

Dynamics AX Discrete Manufacturing

Dynamics AX Process Manufacturing – Formula Management

Microsoft’s Vision of a dynamic manufacturerInnovative

Increase innovation by connecting customers, suppliers, and employees

Agile and responsive

Adapt quickly to changes in demand, supply, and regulations

Engaged people

Inspire action through operations’ intelligence

Manufacturing – “Day in the life”Shop floor tour• Manufacturing

Execution Systems (MES) resources

• Lean work cell

Forecast review meeting• Plan result• Resource

shortages

Product change case• Case creation

Bill of materials (BOM) and route for subcontracting• Create base data, BOM, and

route• Calculate planned cost

BOM and route cost review• Review cost breakdown• Complete the activity

and assign for approval

BOM and route approval• Run approvals• BOM and route versions not

activated due to subcontracting

Updating the plan• Update order quantities• Create and approve the planned

orders• Rerun master scheduling

Changing resources• Reprioritizing jobs• Change resource

calendar

Plan around blockage• Determine order impact• Create case to inform

customer

Service agreement• Create agreement• Update the case

Change case• Review case log• Check feedback• Close the case

A Short Video – Dynamics AX

Manufacturing

Discrete

Type of Manufacturing Supported in AX• Worldwide

manufacturing exists in different forms

• Dynamics AX is having robust functionality to handles its various types and sub-types out-of-the-box

Process Lean

JITKanban

Plastics Industry Metal Working Electrical Engineering

Automotive Suppliers Building Material Suppliers Packaging Industry

Machine Tool Industry Furniture Industry Wood Industry

Mechanical Engineering

Element Production(Industrial

Prefabricated)Assembly (Diff.

Kinds)

Discrete Manufacturing

Process ManufacturingChemical Industry Pharmaceutical

Companies Cosmetics Industry

Cleaning Products Industry

Food & Beverages Industry Recycling Plants

Bottling Industry Ready-mix Companies

Extrusion Industry – Aluminum/ Other

Metals

Brick/ Pavement Making Companies Meat Processing Paint Industry

Conductor

➢ Electrical Wire➢ Batch orders➢ Master

planningAluminium

Copper

Wire Drawing Annealing Wiring Insulation Phase

Wiring

Additional Covering

Outer Sheath

Quality ControlShippingSustainabi

lity

”Electric Cables”

Food & Beverages

Diary Products

Bakery Products

Juices, Drinks

Length: 100 meters

Width 82 cmBatch Attributes- Grade A Paper- Color: Flat White- Thickness: .18 Gauge--Weight: 80 gsm

Physical Dimensions

Item ABCJumbo

Roll

Length: 100 meters

Width 41cm

Physical Dimensions

Item BBB

Slit Roll 1

Length: 100 meters

Width 41 cm

Physical Dimensions

Item CCC

Slit Roll 2

Batch Attributes- Grade A Paper- Color: Flat White- Thickness: .18 Gauge--Weight: 80 gsm

Batch Attributes- Grade A Paper- Color: Flat White- Thickness: .18 Gauge--Weight: 80 gsm

Packaging

Printing & Publication

Pulp and Paper

Parent Item ABC: Steel Beam 100 ft.

Child Item A: Steel Beam 60 ft.

Batch Attributes:•Tensile Strength•Compressive force•Shear strength•Duct ability•Coating

Sheet Metal

Child Item B: Steel Beam 40 ft.

Batch Attributes:•Tensile Strength•Compressive force•Shear strength•Duct ability•Coating

Wood & Furniture

Pre-fabricated Building Materials

Primary Metals/ Wood

Human Skin TissueBlood Type: O +

Cell Culture 1Blood Type: O +

Cell Culture 2Blood Type: O + Cell Culture 3Blood Type: O +

Cell Culture 4Blood Type: O +

Pharmaceuticals

Aggregate, Ready-mix, AsphaltTyres RecyclingWater Treatment & Bottling Plant

Setup Your Operations As You Want• Every Industry is Different• The Processes of One Company Can’t be Imposed on

Another• The Market is Dynamic• Frequent Changes in Type of Products with Specifications/

Quality Parameters• Need of a System to Shape in the Way of Floor Plan and

Processes• Dynamics AX Helps Manufacturers in Achieving This

Process

EmilProduct designer

LarsShop supervisor

ShannonMachine Operator

BOM Mgmt. MRP RunProduct creation Production order processing Production control

Create products Create BOM

Create Production

orders

Record on shop floor

Create Planned orders

Approve BOM

End to End High Level Business Flow- Manufacturing

Inventory

Availability

Bill of Materials \

Formula

Purchase orders

Prod

ucti

onO

rder

s \ B

atch

ord

erProduction Route

Master Planning

Capacity Requiremen

ts

Sales Forecast

Direct Sales

Resources

Capacity

Net Requiremen

t

Transfer orders

Estimation/ Costing

Financial Managemen

tBudgeting Cost

AccountingWarehouse Managemen

t

Transport Managemen

t

Human Resource

Management

Top Activities for A Manufacturer

Operations control and resource management

Forecast and planning

Linkage → Projects, Services

Make-to-stock

Make-to-Order

Make-to-Eng..

Case management

Costing & Estimation

Reports & Dashboard

Subcontracting

AX 2012 Production Main Concept- BOM- Formula- Co/by-products- Costing- Strategies

Generic BOM / routesMake the route site-lessUse resource consumption when defining BOMsRe-scheduling with keeping warehouse option

10

Material A

Warehouse 1 Warehouse 2

Speaker Assembly 001

0059 Assembly1010 Wood

0050 Spkr Assembly

1010 Wood

0050 Spkr Assembly

00101

00102

Packing 003

0059 Assembly0070 Packing

00301

Material B

BOM in AX

Generic FormulaMake the formula with ingredients Batch production with tracking of components/ ingredientsVersions of FormulasVariable Consumption with Different Yield Percentages

Conc

rete

Mix

Y

Water – 20%

Plasticizer – 0.5%

Mixing for 5 min

Portland Cement – 53%

Fine Sand – 18%

Aggregate 10mm – 8%

Milled Gypsum – 0.5%

Mixing for 10 min

Mixing @ 25rpm

A B

Concrete

A B

Formulas in AX

Formula Bill of MaterialRaw material ingredients in formulas are often measured by weight or volume instead of pieces

Raw materials are most often measured in pieces

Will usually have one or more standard sizes that are scaled for a quantity greater than one

The standard size refeeres to as a Batch of the product

Are usually scaled for an output of one (1)

May have one or more product outputs Only have one product output

Waste can be accounted for as Yield which is the ratio between output and input of a process

Waste can only be accounted for on raw material lines

Formula management vs. Bill of material management

Production process

Raw Mat 1

Raw Mat 2

Raw Mat 3

Primary output (Formula Item)

Co-product 1

Co-product 2

By-product 1

By-product 2

CORE CONCEPT: Co/By-Products

Production process

Raw Mat 1

Main item (Formula Item)

Co-product 1

Co-product 2

By-product 1

By-product 2

Process with multiple product output

Disassembly

CORE CONCEPT: Costing (Co-product costing)

Co-products

Manualallocation

Estimated cost

FormulaCp-c 20 %Cp-d 30 %

FormulaRm-a Cost = 10Rm-b Cost = 20

Co-product 1

Co-product 2 Cost allocation ?

50 %69

15

ManualCo-products

Produced Qty

Material Cost

Co- Product Cost

Formula 15

Cp-c 5Cp-d 10

Total Cost Allocation (TCA)

30 301020

Make To Stock Strategy

Create Demand Forecast For Products, based on Forecasted

Sales and current On-hand Inventory

run master planning for materials and

capacity requirements

Firm Planned purchase and

production orders required for plan

coverage

Perform Production operations

Stock Finished Products in Warehouse

Release items from warehouse to be sold to customers

Make To order Strategy

Create and Confirm Sales orders or Projects

View and Firm Planned orders

(Purchase & Production), as per order line explosion

Start Production Operation

Sell Items To Customer

Explosion Explanation

Make To Engineering Strategy

Engineering Change

Management

Integration with Product Life

Management (PLM) system – Siemens Team center and

PTC Wind-chill

Start Production Operation

Marketing & Distribution

Product Version

Management

Sales Forecast

AX 2012 Production Dashboard/ ReportsOperational Intelligence

Supply Chain Intelligence

Customer Intelligence

Channel Intelligence

AX 2012 Production App

Question and Answer

For More Details and Elaborated DemoPlease Contact

Zerone Technologies+974 555 414 714

info@zeronetechnologies.infogagandeep@zeronetechnologies.info