2 intro to manufacturing


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  • Nutraceutical, a portmanteau of the words “nutrition” and “pharmaceutical”, is a food or food product that reportedly provides health and medical benefits, including the prevention and treatment of disease.
  • Logo slide example 1 (highlight many customers)
  • In order to deliver on the promise of the Microsoft Services Operations Solutions, here is a solution overview of Microsoft Dynamics AX including: Core Business Processes: those are the main business processes that Microsoft Dynamics AX delivers out-of-the-box. This view allows customer to understand the wide coverage of Microsoft Dynamics AX and also the workstreams that could be implemented to cover completely or partially a business process in a larger company that would use another ERP solution as its Administrative ERP. A workstream can be a subset of a business process that is end-to-end such eProcurement that would be a subset of Procure-To-Pay and focuses on enabling people to procure indirect goods by navigating through catalogs and submitting purchase requisition for approval workflows, purchase order and payment can be processed in a different system.Industry-Specific Capabilities: Microsoft is investing in 5 majors industries: Manufacturing, Distribution, Retail, Services Sector and Public Sector and delivers solutions that meet those specific business requirements. For Manufacturing Microsoft Dynamics AX proposes to addresses both Discrete and Process Manufacturing concepts but also Lean principles and allows customers to mix those in order to take full advantage of their solution. Unlike a lot of its competitor Microsoft Dynamics AX offers to enable some or all of those component onto the same environment so a Public Sector company could benefit from Manufacturing processes (i.e. Mint company producing money for the government).Complementary solutions are contributing factor for Microsoft Dynamics AX low Total Cost of Ownership (TCO) and shorter Time To Value. Customer can benefit from Microsoft Dynamics AX breakthrough Solutions but also integration with rest of the Microsoft stack for BI, collaboration, maintainability. And ultimately benefit from leveraging existing competencies and assets. Inplementation Methodology & Tools: is another important piece of Microsoft Services Operations Solution, with Sure Step customers can feel confident their project is going through the right steps and nothing is left aside. On top of this, InformationSource and RapidStart provide all the tools necessary to understand the solution and its capabilities as well as how to implement them in a quick an secure way.This view summarize the different components of Microsoft Services Operations Solutions and what Microsoft Dynamics AX can do for a customer beyond just features. This overview explains that business processes can span the entire company and actually involve multiple functional areas of Microsoft Dynamics AX. i.e. Order-To-Cash involves all the steps necessary to identify a prospect and manage customer interaction, offer/bid process, sales order management and execution, delivery and invoicing and collection. This involves modules from Customer Relationship Management, Trade & Logistics and Account Receivables.Value Proposition:Powerful,deliver more value faster with a single, powerful solution: Industries,Business Insight,Global,ScalableGain value quickly with purpose-built industry and operational capabilities in a single solution.Scale your organization quickly with a single global solution.Gain immediate insight and unlock greater productivity with a RoleTailored user experience.Agile,increase opportunities and reduce risk with an agile solution: Workloads, Two-Tier,Choice of Deployments,FlexibilityPlan, visualize, and change your business by using unified natural models.Support your business today and tomorrow with flexible deployment alternatives.Differentiate your business easily with model-driven layered architecture.Simple, drive user involvement and innovation with an easy-to-use solution: Familiar,Role-Taylored,Collaboration,Microsoft stackProvide access to data and business processes with an ERP solution that is simple to useConnect employees, customers, suppliers, and partners easily through integrated collaboration capabilitiesStreamline IT processes by simplifying management of your ERP solution at every stage of the life cycle
  • Order-to-Cash is the end-to-end business scenario that allows the customer to provide the right services and products to their customers through multiple sales channels, by managing the relationship, and by driving targeted campaigns for better satisfaction and loyalty. This business scenario also provides a great customer interaction experience by delivering accurate information instantly, while keeping track of payments and managing cases.Here are the different components that allow customers to efficiently manage their order-to-cash process:Manage Customer Relationship: drive your sales and marketing activities. Segment your prospect and customers and manage your pipeline. Interact with, and track, your customers via phone calls and customer visits. Drive marketing campaigns and telemarketing activities.Collaboration: drive customer loyalty with improved services. Benefit from a variety of Solutions in order to communicate with your customer and provide the customer with adequate, real time information and thereby increase customer satisfaction.Multi-Channel: open new business opportunities. Improve customer loyalty by utilizing all technologies available to reach out to customers, including the internet, market places, social media, call centers, EDI, enterprise portal, and so on.Quote to Sales Order: sales tools for improvedcustomer satisfaction. Enable your employees to provide improved customer service with an easy user interface, by defining the correct sales agreement, and by committing to quantity and delivery at the time the sales order is entered.Invoice and Collection Management: get paid faster and manage litigation. Centralize the collection management process, define collection priorities, automate collection letters, interest rates, and manage the litigation process using case management to keep track.Order-to-Cash Benefits:Facilitateemployee ordering experienceEnforce policy controlEnable efficient purchasing processEmpower vendor interaction
  • Product Portfolio Managementin Microsoft Dynamics AX 2012 helps you conceive, maintain and release products according to company policy. It supports larger organizations in a centralized, structured approach in creating and maintaining core master data.  Smaller organizations that require a more decentralized approach can, with some restrictions, create and maintain their respective products while their products are automatically added to the shared products repository.  Through authorization process release the products to different entities.Classify the product into tangible or intangible (products vs. services)Enter descriptions and product names for multiple languages which can be used for external documentsImport, create, edit, stage, publish, and search catalogues of items for internal consumption on an internal shopping siteProduct dimensions provide the uniqueness of a variation in a productClassify items using hierarchies based on use of the hierarchyDefine attributes to further define items and attach them to hierarchies so they can be inherited or not.Manage your items inventory through batches, lots, serial numbers.Specify units of measure for purchase orders, inventory, and sales orders Define products into stocked or not stocked (Ex: Stationary items which are expenses and not considered as stock)Define costing rules per items groups.Manage compliance rules for FDA (Good Manufacturing Practices and CFR21 Part 11) so changes need to be approved using digital signature so every change can be tracked.Specific to process: define catch weight items.
  • Here’s a snapshot of the solution’s manufacturing, sales-driven scheduling, kanban and inventory management, and lean accounting functionality that support efforts to create demand-driven organizations with value-stream-based accounting that reflects true costs and performance. This lean manufacturing functionality comes on a foundation of integrated sales, purchasing, financial, business intelligence, and collaboration tools for an end-to-end business management solution.
  • Project Accounting in Microsoft Dynamics AX 2012 has the following capabilities:Define and maintain projects master and also project hierarchy.Estimate the project by creating project budget.Post all the actual costs to the project like hour, item, fee, expense, and time sheets.Raise invoice to the customer.Review project summary.Analyze cash flow, performance and utilization.Revenue recognition and capitalize costs.Reporting project financials.
  • Procure-to-Pay is the end-to-end procurement business scenario that allows the customer to have a full experience of budgeting procurement, managing vendor relations and performance, sourcing for new vendors, negotiating contracts, executing procurement, and verifying accuracy of invoices and pay.Here are the different components that allow customers to efficiently manage their procure-to-pay process:Budget: build and maintain your procurement budget utilizing Excel. Track budget alignment, potential variation to the plan, and potentially adjust the plan. Use workflow to check if your purchase order is within budget boundaries.Spend Analytics: accessible Key Performance Indicators (KPIs) and Business Intelligence (BI).Prebuilt reports and KPIs on category, vendor, organization and time dimensions, with critical spend management attributes.Supplier Management and Sourcing: Onboard vendors and send Request for Proposals (RFP) online. Manage your vendor relations from onboarding process to contract negotiation. Use vendor portal to improve vendor collaboration.Material Requirement Planning: balance your need in resources & inventory. Manage your planning cycle and forecasting to lower your stock while meeting customer needs and keeping satisfaction levels.Procurement: catalog based procurement.Rich requisition and purchase order processes, with configurable policy, catalog and punch-out support, approval workflow, and sophisticated tracking to budget and financials.Procure-to-Pay Benefits:Facilitateemployee ordering experienceEnforce policy controlEfficient procurement process for direct and indirect goodsEmpower vendor interaction
  • Supply Chain Management is the end-to-end business scenario that allows customer to provide the right services and products to their customers through multiple sales channels, to manage the relationship and drive targeted campaign for improved satisfaction and loyalty, and to provide a great customer interaction experience by delivering accurate information instantly, while keeping track of payments and managing cases.Here are the different components that allow customers to efficiently manage their plan-to-ship process:Plan and Schedule: balance your need in resources and inventory and manage your planning cycle and forecasting to lower your stock while meeting customer needs and keeping satisfaction levels.Inbound Logistics: optimize your receipt and put-away process.Quality Management: make customer satisfaction a priority.Outbound Logistics: create efficient customer deliveries and distribution.Returns: manage return process and track issues.Plan-to-ship benefits:Empower users with role-based access to information.Manage supply chain across geographies and time zones.Enable efficient purchasing process.Empower vendor interaction.
  • Plan-to-report is the end-to-end process of managing all areas of financials within Microsoft Dynamics AX.Here are the different components that allow customers to efficiently manage their company and get business insight:Reporting: get great business insight benefiting from role center that allows you to easily access reports, visual charts and key performance indicators (KPIs) that will allow you to make decisions based on facts.Budget: build and maintain your budget. Create budget structure within Microsoft Dynamics, easily retrieve all information within Microsoft Excel® spreadsheet software to manage your budget templates, enter all budget information, simulate your plan before updating Microsoft Dynamics AX and track budget implementation, potential variation to the plan, and potentially adjust the plan.General ledger: define your companies chart of account, accounting structure and accounting rules and comply with local regulation to meet electronic accounting expectations.Account payable: manage your vendors disbursement process defining invoice matching policies and rules, track budget compliance, collaborate with vendors through Enterprise Portal and potentially manage your account payables via a shared services desk that could serve your company procurement centrally.Account receivables: drive your collection process through improved capabilities to make sure you customers are on track with their payments including central shared services and case management capabilities to help you track and follow on late payments.Cost accounting: translate your accounting information into business insight and manage your company profitability and analyze your costs using powerful allocation schemes integrated wit your budget exercise.Fixed assets: manage the full life cycle of assets management from acquisition, depreciation to disposition.Project accounting: manage the different investment projects that your company is dealing with, and track project completion, and costs associated therewith for improved control of your investments.Consolidation: streamline and simplify consolidation process for accurate reporting. Consolidate companies across different Microsoft Dynamics AX instances.Financials Benefits:Enable users to make decisions based on factsComply with local regulationsComply with global regulations (such as International Financial Reporting Standard (IFRS) and the Sarbanes-Oxley Act (SOX))Powerful account structure for deeper analysis.
  • Link to full case study: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=710000001255Lotus F1 Team chose Microsoft Dynamics. The team can use Microsoft Dynamics to collect live, accurate information, make informed decisions, compete for funding, and ultimately, build a faster car. Lotus F1 Team expects to improve manufacturing productivity, avoid wasted resources, and deliver information safely and quickly to remote employees. The team can interoperate Microsoft Dynamics with its HR environment to manage the skill sets it needs for new manufacturing processes. With a central portal for all information, Lotus F1 can realize the value of research and innovation, better manage sponsor relationships, and meet its goals for 2014.
  • Link to full case study: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=4000009924Met-Pro is a Pennsylvania-based manufacturer of solutions for product recovery, pollution control, and fluid handling. With an aging enterprise resource planning (ERP) system, Met-Pro relied on multiple manual processes that took place outside the system. Consequently, the company lacked holistic insight into its manufacturing business. To solve this and ease future growth, the company deployed Microsoft Dynamics AX. With a complete and integrated solution in place, the company has gained better insight into its customers, sales pipeline, and overall business; gained tighter control over operations; and laid a foundation for continued growth both organically and through acquisition.
  • Link to full case study: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=710000001218Vitamix Corporation is a world leader in high-performance blending equipment. It sells products to businesses and consumers. The company’s business has doubled in the past three years, in part because it adopted Microsoft Dynamics AX, a complete enterprise resource planning solution for financial, human resources, and operations management. It also uses Microsoft Dynamics CRM, a solution for managing sales, customer Mfg., and marketing. Vitamix employs these cloud Mfg. to ensure that it has up-to-date information that reflects its business situation and ensures high levels of customer satisfaction. The two Microsoft Dynamics products interoperate well with Microsoft Office, which makes it easy to train employees. The company reduced the time required to do one return sales order from 3.5 minutes to 45 seconds. It also is able to incorporate new processes quickly and flexibly.
  • Link to full case study: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=710000000748Talley Group, a United Kingdom–based manufacturer of medical devices, needed to identify and reduce waste in its manufacturing process. Because many of its activities are focused on the rental market, it also had to ensure that any new enterprise resource planning (ERP) system would meet both its needs and the needs of customers. With Microsoft Dynamics AX, the company has streamlined its processes and reduced costs.
  • Link to full case study: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=5000000012Piaggio Aero Industries operates a complex business with multiple locations, diverse business units, stringent regulatory and quality standards, and demanding customer commitments. The company’s legacy software was difficult and expensive to operate and maintain and was unable to support efficient operations. Engaging with Microsoft partner MHT, Piaggio Aero implemented Microsoft Dynamics AX as a centralized business management solution. The solution offers information and insight to the people who need it and helps rebuild business processes for best productivity. Now, Piaggio Aero realizes substantial cost savings, higher returns on investments in skills and expertise, and easier, more dependable regulatory compliance. With its new, streamlined business infrastructure, the company also can quickly take new products to market and adjust to market changes.
  • Link to full case study: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=710000001033Jinasena (Pvt) Ltd, one of Sri Lanka’s largest industrial and trading businesses, wanted to increase visibility into real-time business information, enhance inventory control, and streamline processes. With Microsoft Dynamics AX, Jinasena successfully eliminated its labour-intensive annual stock-take, tightened quality control, and cut financial reporting by more than90 percent.
  • Link to full case study: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=4000009577Hydra-Power Systems, a distributor and manufacturer of hydraulic and pneumatic systems, has used Microsoft Dynamics AX for years. Presented with the opportunity of joining the Microsoft Technology Adoption Program to gain early access to Microsoft Dynamics AX 2012, the company chose to participate. Hydra-Power enjoys connecting with the community of business technologists in the program and helping to advance the business value of the solution. With the business management software as a strategic business enabler, Hydra-Power has equipped people with the information and tools to serve customers more effectively, make the company more competitive, and generate efficiencies and savings. In Hydra-Power’s experience, Microsoft Dynamics AX 2012 is a highly dependable, flexible, and scalable solution, which the company can deploy and run efficiently and economically by using its own resources.
  • Link to full case study: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=4000011138Dellas, a global manufacturer and distributor of diamond cutting tools, wanted to fully adopt lean manufacturing, accelerate global growth, and provide customers with a streamlined way to engage. The company, which used Microsoft Dynamics AX 2009 as its ERP system, realized that Microsoft Dynamics AX 2012 would provide all the additional capabilities it sought. Working with Microsoft partner MHT, Dellas implemented Microsoft Dynamics AX 2012 at its headquarters before taking the solution to subsidiaries worldwide. Dellas now can complete its transformation for lean manufacturing, streamline worldwide business with globally shared data and transactions, and offer customers and resellers access to the product configurator through a web portal. Employees find their work much simpler, and executives gain advanced methods to direct the company in the most profitable way.
  • Link to full case study: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=710000000256In 2007 Spolchemie was looking for a new, comprehensive enterprise information system. It first decided to use a competitor’s solution. However, problems arose during implementation and ultimately the system failed integration tests. So the company opted for Microsoft Dynamics AX, which already runs successfully in seven companies within the Spolchemie Group and actively helps company management streamline overall manufacturing processes.
  • Link to full case study: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=4000011037Amalie Oil Company is a manufacturer of oils and lubricants. Facing the challenges of its legacy enterprise resource planning (ERP) system JD Edwards, the company sought to implement a new ERP system that would help support operations well into the future. The company chose Microsoft Dynamics AX and worked with Microsoft Gold Certified Partner Blue Horseshoe Solutions to drive the implementation forward. With Microsoft Dynamics AX in place, Amalie Oil now has a single solution to support all business processes. The company has also improved business insight, helping to streamline reporting and manufacturing operations. Amalie Oil has also been able to reduce IT costs, speed development, and support growth. In fact, the company currently doubles in size every six years, but with Microsoft Dynamics AX in place has only had to increase staff 25 percent.
  • Link to full case study: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=315000000081Replacing several older, unwieldy software systems with a single instance of Microsoft Dynamics AX, Kent Watersports brings advanced agility to six watersports product companies. With the new ERP system, the entire family of companies benefits from higher efficiencies and better control in finance, manufacturing, distribution, IT, and sales. Global distributors, retailers, and vendors can engage more productively with the Kent Watersports companies. Business owners, with access to real-time, comprehensive financial and operational information, can direct products, brands, distribution channels, and go-to-market initiatives, to give each company the best chance of success. For such highly regarded brands as O’Brien, HO Sports, and Connelly, Kent Watersports will have an increased ability to grow and thrive in a highly competitive market.
  • 2 intro to manufacturing

    1. 1. Gilbert Garcia Director US Dynamics Manufacturing
    2. 2. AGENDA
    4. 4. DISCRETE MANUFACTURING VERTICALS Ranges from Make to Stock thru Engineer to Order Automotive Industrial Equipment • • • • • • • Special and Large Machinery Oil, Gas, & Mining Machinery Commercial Machinery High Tech Machinery Refrigeration and Air Handling Misc. Industrial Machinery Metal Working Machinery • • • • Automotive Components and Parts Aftermarket Parts Shipping and Railroad Vehicles Recreational Vehicles High Tech • Audio and Video Equipment • Communications Equipment • Computer Equipment Mfg.
    5. 5. PROCESS MANUFACTURING VERTICALS Batch Chemical, Primary Metals, Life Sciences Batch Chemicals • • • • • • Industrial Inorganic Industrial Organic Plastics, Materials, Synthetics Soaps, Cleaners, Toilet Goods Agricultural Chemicals Misc. Chemical Products -sealants -printing ink -carbon black -chemical preparations Life Sciences Primary Metals • • • • • • Blast Furnace and Steel Products Iron and Steel Foundry Ferrous and Non Ferrous Metals NF Drawing and Rolling Non Ferrous Casting Foundries • • • • Pharmaceuticals Bio Technology Medical Devices* Nutraceutical & Vitamins *Discrete Mfg. pr Mixed Mode
    6. 6. Manufacturing
    7. 7.    Industry-strength product  its intuitive and easy-to-learn healthy mix of strong out-of-the-box functionality for the selected industries customer-specific functionality built by or together with partners     certifications to make sure that their partner
    8. 8.     higher TCO for the same number of users, increased end-user complexity and less flexibility to adapt the solution to changing business requirements   complexity of the product    
    9. 9.  none of these product enhancements have been designed specifically for midmarket companies   higher operating costs,  exceed the resources and capabilities of midmarket companies  is not specifically designed for the midmarket and will not include deep industry-specific functionality.   the ratio between IT staff needed to operate the system and business end users range from 1:25 and better, but can be up to 1:10, especially in accounts with less than 70 users  too expensive for midmarket companies
    10. 10.            the UI is not yet as flexible and intuitive as some competing solutions. Data export to Microsoft Excel is supported, but writing data from Excel to JD Edwards is not possible without additional effort
    11. 11.  mixed-mode manufacturing companies  adaptations are unaffected by upgrading the underlying application code   Epicor 9 offers more than 100 predefined, role-specific dashboards       on prepackaged best-practice process templates
    12. 12.    no major transformational development has happened since then .       high complexity and costly implementation large number of ERP solutions
    13. 13.    although built by a third-party provider, has proved to be strong     SyteLine does not support running multiple legal entities or business units in one single instance.
    14. 14. DYNAMICS AX MFG. SOLUTION FOOTPRINT Core Four ERP Opportunity Management Bid /Quote Forecasting Trading Partners Order Management Planning and Scheduling Shop Floor Control Work /Batch Orders Lean Kanban Scheduling Mfg. Execution & Reporting MSDS Compliance Process Mfg. Interplant Multi-Site Performance Management WMS Test/Test Plans Logical Disposition Batch Attributes Lot Genealogy Potency HR/ Payroll GL/AR/AP/FA & Procurement Sampling Policies Financial Control Project Accounting Interoperability Microsoft Office Compliance Microsoft SharePoint Microsoft SQL Server Microsoft Lync Microsoft Project BI & Reporting Microsoft Fast Office 365
    15. 15. DYNAMICS AX CORE CAPABILITIES Governance-Risk-Complianc Corp Performance Mgt. US Payroll Supplier Relationship Mgt. Supply Chain Mgt Financials Human Resources Inventory Customer Relations Projects
    16. 16. MANUFACTURING COMPONENTS Governance-Risk-Compliance Planning/Scheduling Demand Management IEM Options (ISV) Plant Maintenance (ISV). Manufacturing Execution Automotive Options (ISV) Inventory Control Core Quality Control ISV Solution Core Project Management
    17. 17. Manufacturing Industries Ecosystem Lean (one example)
    20. 20. ISV Solution
    23. 23. Now in R2
    24. 24. Gilbert Garcia Director US Dynamics Manufacturing
    25. 25. FY13 Goal YTD Achievement All Industry VITU Program Mfg. Industries AX 97% 90% Mfg. Industries CRM 107% 90% FY13 Goal YTD Achievement Rank in Program IEM VITU 176% 1st Place
    26. 26. Gilbert Garcia Director US Dynamics Manufacturing
    27. 27. MICROSOFT OPERATIONS SOLUTIONS Meet your business objectives with a comprehensive solution Size Manufacturing Workloads Supply Chain Visibility System of Record Product Engineering Manufacturing Operations Management Financials Systems of Innovation Complementary Solutions Methodology & Tools Sales Order Management Warehouse and Distribution Administrative Workloads Systems of Differentiation Manufacturing Core Solution: Microsoft Dynamics AX Supply Chain Planning Hire-to-Retire Microsoft Dynamics AX Technology Microsoft Stack Integration Model-Driven, Layered Architecture Customer Management Integrated Development Environment Flexible Deployment Security Framework Knowledge Management BI/Analytics Sure Step Methodology Workflow Framework Employee Productivity InformationSource Interoperabilit y Data Storage Integration RapidStart Delivery Expertise = SAP/Oracle = Dynamics AX 28 = PLM
    28. 28. MICROSOFT DYNAMICS AX FOR MANUFACTURING An end-to-end operation solution for manufacturing companies Supply Chain Demand Chain Manufacturing Operations Solution Lean Product Engineering Plan Supply Manufacture Distribute Suppliers Sell Supply Chain Visibility Customers Discret e Procure Manufacturing Operations Management Supply Chain Planning Deliver Manufacture Sales Order Management Product Design - BOMs, Formulation and Configuration, Supplier Relationship Management – Global and Multi-Currency Manufacturing/ Supply Chain Management – Quality, Costs, Skills Logistics Financial Management – Business Intelligence Order Management – Customer Relationship Management 29 Proces s Warehouse & Distribution
    29. 29. ROLE CENTERS: SOLUTIONS FOR YOUR PEOPLE Our version of ―Best Practices‖
    31. 31. SALES ORDER MANAGEMENT Develop a streamlined order-taking and fulfillment process Manage Customer Relationship Collaboration MultiChannel Quote-toSales Order Invoicing and Collection Management Drive customer loyalty with improved services Open new business opportunities Sales tools for improved customer interaction Get paid faster and manage litigation Drive your sales and marketing activities Key Benefits Empower users with efficient sales order entry Connect to web store, marketplaces, social media 32 Track results through KPIs and BI Customer Portal and Online Services for improved service
    32. 32. AVAILABLE TO PROMISE AND ….CAPABLE TO PROMISE ATP looks at materials only, CTP adds capacity view 33
    33. 33. OPERATIONS
    34. 34. ITEM/PRODUCT PORTFOLIO MANAGEMENT Conceive, maintain & release products according to company policy  Manage centrally your portfolio of products.  Manage items & services.  Define product hierarchies.  Basics: name, product group, weight, dimensions, handling & packaging, etc.  Manage variants (color, sizes, etc.)  Attributes & hierarchies classification.  Inventory (batch, lots, catch weight, etc.)  Costing & financial dimensions.  Manage Good Manufacturing Practices (GMP) for CFR 21 Part 11 compliance. 35
    35. 35. TYPICAL PRODUCTION CYCLE AX provides transparency and visibility Benefits: •Material control Planned orders: • Master scheduling • Sales order Consumption ledger • Material Cost • Route Cost Costing Journals • Quantities Finished • Hours used Shop Floor Control • Finished Inventory papers • Pick list Individually created based on information from: • BOM/Formula • Production route Expected • Material Cost Created • Route Cost Cost Estimation Production/Batch Orders Job Scheduling Production papers • Operation/Job cards • Shop Floor Control • Route cards 36 • Visibility of the total process, which leads to reduction of costs Operation Scheduling Planning on date Start Release • Optimal production process & time levels Gantt Chart/Kanban
    36. 36. LEAN
    37. 37. LEAN MANUFACTURING FOR DYNAMICS AX manufacturing, sales-driven scheduling, kanban and inventory management, and lean accounting Integrated Sales, Purchasing, Financial, Collaboration, and Business Intelligence Lean Manufacturing Functionality Organization Planning/ Scheduling Cells LOS (Lean Order Schedules) Kanban Kanban Board Cost Substitution Item Heijunka Board Subcontracting Kanban Kanban Inventory Overview Value Stream as Financial Dimension Sales Schedules Sales Pull Signals (Call Off) Takt Meter Purchase Kanban Barcodes Kanban and Pull-Based Execution Transfer Kanban 38 Lean Accounting
    38. 38. SERVICE DELIVERY LIFECYCLE Great for Project Managed Companies Sales and Marketing Invoicing Project Management Project Accounting Resource Management Expenses Time Sheets 39
    39. 39. PROJECT ACCOUNTING Manage your project-tracking profitability   Control project costs and reporting.  Manage costs and planning using project hierarchies.  Set up and manage project quotations effectively.  40 Monitor profitability with revenue recognition. Integrates in real-time with supply chain and financial management processes.
    40. 40. COSTING METHODS Mixed Mode Costing  Standard  Lifo  Lifo Date  Fifo How are we different better than the competition? MIXED MODE COSTING!  FeFo (reservations)  Weighted Average  Weighted Average Date  Actual 41
    42. 42. SUPPLY CHAIN PLANNING (WITHIN THE 4 WALLS) Set company policies and collaborate with your vendors Procurement Budget Build and maintain your budgets with Excel Key Benefits Spend Analytics Accessible KPIs and Business Intelligence Facilitate employee ordering experience Supplier Material Management Requirement and Sourcing Planning Onboard vendors and send RFPs online Enforce policy control 43 Manage supply & demand across supply chain Efficient procurement process for direct and indirect goods Procurement Catalog-based procurement model Empower vendor interaction
    43. 43. MASTER PRODUCTION SCHEDULING (MPS) Mixed Mode MPS Master Planning Master Planning Forecasting – Items,customer,vendors – Forecast models Forecast schedule Master plans – General settings include : – On-hand inventory – Inv. transactions – Quotations – Forecast model – Time fences – Safety margins Master schedule – Forecast method: – Manual, period, key – Forecast plans: – General settings – Time fences – Safety margins Kanban Process Transfer Planned orders Production order Coverage groups: – General settings – Action message – Futures message Purchase order Op. schedule Lead time Job schedule Delivery date 44 Transfer order From Warehouse To Warehouse
    44. 44. SCHEDULING EXECUTION  MRP/MPS  What if  En Masse  Grouping and Sequencing  Select  Capacity Loading and Planning  Multiple Ways to Issue Material  Shop Floor Control Integration (MES)  Route and Job Scheduling  Finite/Infinite Scheduling (Forward, Backward,)  Material  Capacity  Property  Capable and ATP  Gantt Charts  Scheduling Board (Lean) Understand when to recommend advanced planning and scheduling tools 45
    45. 45. LOGISTICS
    46. 46. WAREHOUSE AND DISTRIBUTION MANAGEMENT/EXECUTION End-to-end visibility throughout the supply chain Plan and schedule Inbound logistics Quality management Outbound logistics Returns Balance your need in resources and inventory Optimize your receipt and putaway processes Make customer satisfaction a priority Efficient customer deliveries and distribution Manage return process and track issues Key benefits Empower users with role-based access to information Manage supply chain across geographies and time zones Know when to recommend WMS optimization 47 Streamline endto-end supply chain processes Manage product compliance and traceability
    47. 47. WMS IN DYNAMICS AX Warehouse Management System •Directed Picking, Packing, Put away •Random or Fixed Locations •Tightly integrated with: Purchase orders Sales orders Production orders Inventory Management Cycle Counting/Tag Counts Multi-site warehouse management Inventory management with dimensions Flexible technology (e.g. use of bar codes)  48
    48. 48. FINANCIALS Make decisions based on facts and comply Reporting and consolidation Budget General Ledger Accounts Payable Accounts Receivable Cost Accounting Fixed Assets Project Accounting Build and maintain your budgets with Microsoft Excel Analyze your finances the way you want Manage your vendor relations and disbursements Efficiently manage customer invoices and collections Distribute costs and analyze profitability Automate your acquire-toretire process Manage your project tracking profitability Key Benefits Enable users to make decisions based on facts Comply with local regulations 49 Comply with global regulations (IFRS, SOX) Powerful account structure for deeper analysis
    50. 50. RACING TEAM PLANS PROCESS TRANSFORMATION WITH INTEGRATED ENTERPRISE RESOURCE PLANNING ―We want to be in a position to win. We're investing in people and technology, and we need to improve our processes. I really think Microsoft Dynamics AX is going to help the team in this challenge for 2014.‖ Challenge Lotus F1 Team wants to win the 2014 FIA Formula 1 auto racing world championship. To that end, it needs to transform many of its business and manufacturing processes. Solution The team chose Microsoft Dynamics AX to collect live, accurate information, make informed decisions, compete for funding, and – ultimately – build a faster car. Graeme Hackland, CIO, Lotus F1 Team View the Case Study Expectations     Improve manufacturing productivity Avoid wasted resources Deliver information quickly to remote employees Interoperate with its HR environment to manage the skill sets it needs for new processes
    51. 51. MANUFACTURER TAKES CONTROL OF OPERATIONS, IMPROVES INSIGHT BY USING ERP SOLUTION ―We want to take this company to $200, $300, $400 million a year in revenue, and to do that, we need a very good ERP solution. With Microsoft Dynamics AX, we have that.‖ Raymond De Hont, Chairman, CEO, and President, Met-Pro Business Challenge  Met-Pro relied on a 20-yearold enterprise resource planning (ERP) system and, consequently, resorted to many manual processes because the solution lacked integration throughout the company’s entire operation. Solution  Met-Pro engaged a Microsoft Gold Certified Partner and deployed Microsoft Dynamics AX and a range of select add-in solutions. Results/Benefits     Insight into business Control over operations Contractual compliance Flexible platform for ongoing growth and change View the Case Study
    52. 52. LEADING MANUFACTURER OF BLENDING EQUIPMENT ADOPTS MICROSOFT DYNAMICS SOLUTIONS ―If you have a great idea here on the production line, we're able to take those ideas and incorporate them into new processes very quickly. Those great ideas turn into better results for our customers.‖ Company Overview Vitamix Corporation is a world leader in high-performance blending equipment. Its business has doubled in the past three years. Solution   Microsoft Dynamics AX Microsoft Dynamics CRM Results    Paul Sems, Director, Information Technology, Vitamix Corporation View the Case Study Up-to-date information reflects the company’s business situation. Interoperability with Microsoft Office makes it easy to train employees. Time taken to do one return sales order went from 3.5 minutes to 45 seconds.
    53. 53. HEALTHCARE MANUFACTURER REDUCES WASTE AND IMPROVES DATA VISIBILITY WITH ERP SYSTEM ―We concluded that Microsoft Dynamics AX was the only true lean ERP solution available on the market.‖ Challenge Talley Group needed to identify and reduce waste in its manufacturing process. Solution Microsoft Dynamics AX Benefits    John Ramage, IT Manager, Talley Group   Accessible information Streamlined manufacturing process Smarter decision making Smoother operations Enhanced customer Mfg. View the Case Study
    54. 54. ―With Microsoft Dynamics AX, we can better devise and run extended processes, manage morethan-doubled data volumes, and meet business challenges with great agility.‖ Enrico Cafiero, Head of Business Information Systems and ERP Program Manager, Piaggio Aero Industries AERONAUTICS LEADER DEPLOYS ERP SOLUTION TO STREAMLINE, CONTROL, AND GROW ITS BUSINESS Business Challenge  Piaggio Aero Industries sought to streamline its business processes, more closely connect locations and business groups, and gain better control over business growth and performanc e. Solution Piaggio Aero deployed Microsoft Dynamics AX in several business units, including the company’s finance management, and integrated the solution with Microsoft Project Server and Microsoft SharePoint Server. Results/Benefits     Generate cost savings through streamlining and control Enable business insight and dependable regulatory compliance Gain higher returns from investments in skills and training Rebuild business processes for growth and best customer Mfg. View the Case Study
    55. 55. LEADING WATER PUMP MANUFACTURER IN SRI LANKA IMPROVES CASH FLOW MANAGEMENT WITH ENHANCED VISIBILITY DEPLOYMENT CASE STUDY ―Month-end reports that used to take two weeks now take just over a day. This has significantly enhanced visibility and sped up decision-making, especially when it directly affects the cash flow.‖ Senaka Attygalle, General Manager - IT, Jinasena (Pvt) Ltd Challenge Solution The company needed to have accurate, real-time business information to support business decisions. It also needed to streamline processes to improve productivity and reduce costs, enhance its inventory management processes, and speed up financial reporting. Designed from the ground up for the manufacturing industry, the easy customizability of Microsoft Dynamics AX allowed Jinasena to incorporate specific import management requirements into the system to align with local standards. Benefits    Enhanced inventory management eliminates laborintensive annual stock-take Streamlined processes cut inventory holding costs by 25 percent Better control over supply chain increases negotiation power View the Case Study
    56. 56. INDUSTRIAL EQUIPMENT COMPANY ADVANCES ITS BUSINESS ON INNOVATIVE ERP SOLUTION Business Challenge ―I get a lot of satisfaction out of Microsoft Dynamics AX 2012. With commitment from Microsoft to enhance the solution, it will always be on the forefront of technology—and we will be there with it.‖ Bob Jablonski, Operations Manager, Hydra-Power Systems Solution   Hydra-Power Systems wanted to increase its ability to serve customers, help employees be more productive, streamline key business processes, and gain greater returns from technology investments. Through the Microsoft Technology Adoption Program, HydraPower implemented Microsoft Dynamics AX 2012 in integration with other Microsoft technologies and businessspecific software tools. Results/Benefits     Enable decision makers to take control Run a scalable solution by using only company resources Enhance the quality and competitiveness of customer Mfg. Help employees boost their effectiveness View the Case Study
    57. 57. LEADING MANUFACTURER OF CUTTING TOOLS SIMPLIFIES MANAGEMENT OF GLOBAL OPERATIONS Business Challenge ―With the help of Microsoft Dynamics AX 2012, we can follow our customers across the globe in the most efficient way possible.‖ Daniele Ferrari, CEO, Dellas View the Case Study  Dellas wanted to simplify its global business, provide a better experience to customers and resellers, and fully embrace lean business practices in all aspects of the operation. Solution With help from MHT, Dellas implemented Microsoft Dynamics AX 2012 as an upgrade to the previous version of the solution. Results/Benefits      Simplify the work environment Enhance customer and reseller engagement Streamline global business Manage a lean operation Boost executive insight and control
    58. 58. THE WÜRTH GROUP (OPERATIONS 2.0) ―With Microsoft Dynamics AX, we can integrate new businesses into the Group practically at the touch of a button. Industry-specific characteristics can be easily implemented.‖ - Bernd Herrmann, Managing Director, Würth Challenge • • • • 400 subsidiaries in 84 countries; multi-industry and LOB operations Diverse languages, currencies, legislative requirements Inefficient processing for high-volume orders Lacked visibility into global operations Solution • • • Deployed Microsoft Dynamics AX as the operational ERP Internal IT developed WürthPhoenix Trade+ for template-based, industry-specific deployments Integrated Microsoft Dynamics AX with Administrative ERP Results • • • • One system meets needs for 60+ locations Optimizes IT resources and costs with reusable implementations Order processing workload reduced by 50 percent Global visibility at both local sites and central administration Why 2.0: Diverse Manufacturing Operations, Geography, Size
    60. 60. Cayman Chemical is an international manufacturer and distributor of high quality biochemical research products and has grown from a fledgling company of 1 employee in a small laboratory space to a spacious 14 acre research and production campus. Steady growth has allowed Cayman to expand its Production, R&D, chemistry and cGMP manufacturing capabilities. Today Cayman is comprised of 250 employees in 4 countries with a catalog of over 2,500 different biochemicals to over 4,000 customers worldwide. Cayman Replaces Legacy Oracle Application Outgrew aging, legacy Oracle ERP application and needed true integration throughout its operations Better manage inventory, sales process, manufacturing and supply chain and accommodate growth Implemented Microsoft Dynamics AX with Process Industries Seamlessly connect operations using industry standard tools and the look and feel of everyday Microsoft products Link to Cayman Chemical webcast Manages complex sales processes and growth overseas Better understanding of customers and meeting them with accurate, timely information More user friendly system
    61. 61. Focused on manufacturing marine paints, protective coatings, container coatings, decorative paints and yacht paints.The first Hempel factory started production in 1915 in Denmark. Is now a world-wide enterprise comprised of two main and four regional research and development facilities, 20 manufacturing plants, 47 sales offices and more than 130 stock points strategically located around world. Hempel ensures prompt delivery of freshly produced quality coatings supported by Hempel's world-renowned service. Hempel Chooses Microsoft Dynamics AX After Failed SAP and Epicor Implementations Needed solution to support “One Hempel Everywhere”, with all units connected through stock visibility, intercompany sales, better managed inventory, sales processes, manufacturing and supply chain Replace failed SAP and Epicor Scala implementations Link to Hempel Press Release Selected Microsoft Dynamics AX with Process Industries Seamlessly connect operations using industry standard tools and the look and feel of everyday Microsoft products • Standardization and alignment of business processes and procedures • Efficiency gains in production - strong supply chain functionality, such as MRP planning, Production planning, product costing, stock visibility and inventory management
    62. 62. Specialty pharmaceutical company focused on treatments for neurological and psychiatric disorders. Jazz utilizes a combination of licensing/acquisition and in-house development of novel formulations and drug delivery technologies, and a production outsourcing strategy using contract manufacturers. Publicly held company, Public IPO, May 31, 2007, NASDAQ Exchange: JAZZ Jazz Sets an Example for Life Sciences Companies •Aggressive Growth Strategy •Replace Disparate Systems •Replace Manual Planning and Scheduling Capabilities •SOX, Security, Data Integrity, Electronic Signature and transaction level audit and controls critical •Agility – Require ability to quickly add new companies, train new employees, add new product lines •Evaluated Oracle, Ross, and Dynamics AX •Top 5 evaluation criteria were: Functional Fit, FDA Compliance / Industry Experience, Technology / Scalability, Supply Chain Integration with out-sourcing partners, Solution Cost •Required a rapid 3-month implementation to precede IPO •Integrated solution •Ability to track lots through outsourced production process •Managing lot quality data, expiry dates, and inventory disposition •More accurate production planning to meet demand •Simplified the management of inventory, consignment, and order fulfillment Link to Jazz Pharmaceutical webcast
    63. 63. A division of $2B Roll International, Suterra is dedicated to providing an unmatched range of scientifically proven pheromone traps and lures - over 100 lures and the most extensive pheromone selections available. Suterra’s technical team is committed to helping maximize product performance…from pheromone placement to mid-season evaluations to monitoring insect pressure and tracking insect flights. Suterra has been committed to developing environmentally sound pest control products since its inception. Suterra Rolls out AX with Process Industries in Four Countries at the Same Time •Growth through acquisition required a data model and business processes that could be easily rolled out across multiple locations •Global integration and reporting key •Required a set 6-month implementation schedule •Selected Microsoft Dynamics AX with Process Industries over Oracle •Integrated solution •Went live in 4 different countries at the same time: Wales, US, Mexico and Spain • Wales and the US started transactions within 1 hour of each other despite an 8 hour time difference
    64. 64. CHEMICAL MANUFACTURER SUCCESSFULLY IMPLEMENTS ERP SOLUTION, GAINS BETTER INSIGHT TO PROCESSES AND INVENTORIES DECISION CASE STUDY Company Overview Why Microsoft Dynamics In 2007 Spolchemie was looking for a new, comprehensive enterprise information system. The solution it chose ultimately failed integration tests. The company opted for Microsoft Dynamics AX, which already ran successfully in seven companies in the Spolchemie Group. Goals   Adjust the prices of its products to keep the desired margin and minimize the risk of selling below cost Eliminate the risk that production might halt due to lack of certain input materials. View the Case Study
    65. 65. OIL MANUFACTURER IMPROVES DECISION MAKING AND OPERATIONS WITH NEW ERP SOLUTION ―Amalie Oil is doubling in size every six years and we have only had to increase our workforce by 25 percent. We would have been unable to effectively scale to that level of growth without Microsoft Dynamics AX.‖ Gianni Barkett, Chief Technology Officer, Amalie Oil Company Business Challenge  Amalie Oil Company relied on an aging enterprise resource planning system with high support costs and an uncertain future. Solution The company worked with Blue Horseshoe Solutions and implemented Microsoft Dynamics AX. Results/Benefits     View the Case Study Improve business insight and reporting Enhance manufacturing and Mfg. Cut IT costs, speed development Support growth
    66. 66. WATERSPORTS COMPANIES BET THEIR FUTURE ON ERP SYSTEM AND POWERFUL TECHNOLOGY PROVIDER ―With Microsoft Dynamics AX, we will realize huge gains at each of our companies individually and from a consolidated standpoint. The wins will be obvious and very drastic.‖ Sharon Zimmer, Corporate Vice President, Systems and Technology, Kent Watersports View the Case Study Business Challenge  Kent Watersports wanted to streamline business operations and provide greater executive insight and control across all six companies within the Kent Watersports family. Solution The company deployed Microsoft Dynamics AX as the centralized ERP system for all companies. Results/Benefits    Simplify technology management, reduce cost of technology ownership Introduce agility and efficiency into business operations Make key relationships more productive
    67. 67. Thank You Gilbert Garcia gilbert@microsoft.com Mobile: 802-258-1226 Office: 843-757-5626