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Manufacturing with Dynamics AX
Zerone Technologies
State of Qatar
In Association with
Microsoft, Qatar
Venue: 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 manufacturer
Innovative
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
JIT
Kanban
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 Manufacturing
Chemical 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 planning
Aluminium
Copper
Wire
Drawing
Annealing Wiring Insulation
Phase
Wiring
Additional
Covering
Outer
Sheath
Quality
Control
Shipping
Sustainabili
ty
”Electric Cables”
Food & Beverages
Diary Products
Bakery Products
Juices, Drinks
Length: 100 meters
Width 82 cm
Batch Attributes
- Grade A Paper
- Color: Flat White
- Thickness: .18 Gauge
--Weight: 80 gsm
Physical Dimensions
Item ABC
Jumbo 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 Tissue
Blood Type: O +
Cell Culture 1
Blood Type: O +
Cell Culture 2
Blood Type: O +
Cell Culture 3
Blood Type: O +
Cell Culture 4
Blood 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
Emil
Product designer
Lars
Shop supervisor
Shannon
Machine 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
Production
OrdersBatchorder
Production
Route
MasterPlanning
Capacity
Requirements
Sales Forecast
Direct Sales
Resources
Capacity
Net
Requirement
Transfer ordersEstimation/
Costing
Financial
Management
Budgeting
Cost
Accounting
Warehouse
Management
Transport
Management
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 / routes
Make the route site-less
Use resource consumption when defining BOMs
Re-scheduling with keeping warehouse option
10
Material A
Warehouse 1 Warehouse 2
Speaker Assembly 001
0059 Assembly
1010 Wood
0050 Spkr Assembly
1010 Wood
0050 Spkr Assembly
00101 00102
Packing 003
0059 Assembly
0070 Packing
00301
Material B
BOM in AX
Generic Formula
Make the formula with ingredients
Batch production with tracking of components/ ingredients
Versions of Formulas
Variable Consumption with Different Yield Percentages
ConcreteMixY
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
Formulas in AX
Formula Bill of Material
Raw 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 Manual
allocation
Estimated cost
Formula
Cp-c 20 %
Cp-d 30 %
Formula
Rm-a Cost = 10
Rm-b Cost = 20
Co-product 1
Co-product 2 Cost allocation ?
50 %
6
9
15
Manual
Co-products Produced
Qty
Material Cost Co- Product Cost
Formula 15
Cp-c 5
Cp-d 10
Total Cost Allocation (TCA)
30 30
10
20
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/ Reports
Operational
Intelligence
Supply Chain
Intelligence
Customer
Intelligence
Channel
Intelligence
AX 2012 Production App
Question and Answer
For More Details and Elaborated Demo
Please Contact
Zerone Technologies
+974 555 414 714
info@zeronetechnologies.info
gagandeep@zeronetechnologies.info

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Manufacturing event presentation_zerone technologies

  • 1. Manufacturing with Dynamics AX Zerone Technologies State of Qatar In Association with Microsoft, Qatar Venue: Hilton, Qatar 28 Sep 2015 Gagandeep Garg | Senior Manager – Software Solutions | Zerone Technologies
  • 2. Agenda Dynamics AX Manufacturing Overview Dynamics AX Discrete Manufacturing Dynamics AX Process Manufacturing – Formula Management
  • 3. Microsoft’s Vision of a dynamic manufacturer Innovative 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
  • 4. 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
  • 5.
  • 6. 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 JIT Kanban
  • 7. 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
  • 8. Process Manufacturing Chemical 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
  • 9. Conductor ➢ Electrical Wire ➢ Batch orders ➢ Master planning Aluminium Copper Wire Drawing Annealing Wiring Insulation Phase Wiring Additional Covering Outer Sheath Quality Control Shipping Sustainabili ty ”Electric Cables”
  • 10. Food & Beverages Diary Products Bakery Products Juices, Drinks
  • 11. Length: 100 meters Width 82 cm Batch Attributes - Grade A Paper - Color: Flat White - Thickness: .18 Gauge --Weight: 80 gsm Physical Dimensions Item ABC Jumbo 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
  • 12. 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
  • 13. Human Skin Tissue Blood Type: O + Cell Culture 1 Blood Type: O + Cell Culture 2 Blood Type: O + Cell Culture 3 Blood Type: O + Cell Culture 4 Blood Type: O + Pharmaceuticals
  • 14. Aggregate, Ready-mix, AsphaltTyres RecyclingWater Treatment & Bottling Plant
  • 15. 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
  • 16. Process Emil Product designer Lars Shop supervisor Shannon Machine 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
  • 17. End to End High Level Business Flow- Manufacturing Inventory Availability Bill of Materials Formula Purchase orders Production OrdersBatchorder Production Route MasterPlanning Capacity Requirements Sales Forecast Direct Sales Resources Capacity Net Requirement Transfer ordersEstimation/ Costing Financial Management Budgeting Cost Accounting Warehouse Management Transport Management Human Resource Management
  • 18.
  • 19. 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
  • 20. AX 2012 Production Main Concept - BOM - Formula - Co/by-products - Costing - Strategies
  • 21. Generic BOM / routes Make the route site-less Use resource consumption when defining BOMs Re-scheduling with keeping warehouse option 10 Material A Warehouse 1 Warehouse 2 Speaker Assembly 001 0059 Assembly 1010 Wood 0050 Spkr Assembly 1010 Wood 0050 Spkr Assembly 00101 00102 Packing 003 0059 Assembly 0070 Packing 00301 Material B
  • 23. Generic Formula Make the formula with ingredients Batch production with tracking of components/ ingredients Versions of Formulas Variable Consumption with Different Yield Percentages ConcreteMixY 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
  • 25. Formula Bill of Material Raw 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
  • 26. 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
  • 27.
  • 28. CORE CONCEPT: Costing (Co-product costing) Co-products Manual allocation Estimated cost Formula Cp-c 20 % Cp-d 30 % Formula Rm-a Cost = 10 Rm-b Cost = 20 Co-product 1 Co-product 2 Cost allocation ? 50 % 6 9 15 Manual Co-products Produced Qty Material Cost Co- Product Cost Formula 15 Cp-c 5 Cp-d 10 Total Cost Allocation (TCA) 30 30 10 20
  • 29.
  • 30. 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
  • 31.
  • 32. 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
  • 34.
  • 35. 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
  • 36.
  • 37. AX 2012 Production Dashboard/ Reports Operational Intelligence Supply Chain Intelligence Customer Intelligence Channel Intelligence
  • 38.
  • 41. For More Details and Elaborated Demo Please Contact Zerone Technologies +974 555 414 714 info@zeronetechnologies.info gagandeep@zeronetechnologies.info