Production management system MS Dynamics 365 Business Central

Technological production preparation

Production preparation involves a series of activities aimed at optimizing processes and allocating resources. It consists of the following stages.

Defining products

In order to properly prepare the production process, the first step is to define the basic elements of the product, the materials for its production (semi-finished products or components) and raw materials (unprocessed elements). Example: flour and water make dough, and bread is made from it, which is then foil-wrapped to keep it fresh longer. Our product is therefore packed bread, materials – dough and bread, and raw materials – flour, water and foil.

Defining phantoms (apparent semi-finished products)

Phantoms are elements used for production that cannot be obviously produced, invoiced or kept in stock, and which are used in many different activities. An example may be a spice mix that is added to baked goods. Its ingredients are entered into the inventory, but there is no need to define its recipe for each production process.

Creating production BOMs

The production bill of materials, or BOM, is a list of components that specifies all the elements that are necessary at each stage of production of a given product. The BOM should contain a description of each element along with the exact quantity or measure that is needed to produce the finished product (e.g. one kilogram of flour and half a liter of water are needed to produce one and a half kilograms of dough). The ERP system enables comprehensive handling of even very complex, multi-stage BOMs.

Developing the course of production processes – routes

A route is a sequence of steps defined in the program that are necessary to produce a finished article, taking into account the entire production environment. It specifies the workstations, devices needed for production and all the subsequent stages. So it indicates in turn who makes the dough, who bakes it and in which oven, and who finally packs it.

Versions of BOMs and routes

Many products can be made using alternative recipes, i.e. BOMs (e.g. natural sourdough ran out, so yeast will be used), and the production process itself can be designed in different ways. In the case of a bakery, the dough can be made on the spot, or in larger quantities and frozen before baking. The choice of version will depend on the resources, internal conditions (for example, route versions are created in case of failure of specific devices) or optimization requirements.

Linking BOM components to production process operations

The entire production process is based on linking the route (sequence of production stages) with the BOM components. Such a link provides information on what material is to be used at each stage and when it should be delivered. This eliminates the need to deliver all materials at the beginning of production, and only when they are needed.

Managing production resources

The aim of resource management is to ensure appropriate access to the resources available at the right time and place, as well as to minimize costs, reduce downtime, and increase efficiency.

Information systems, such as MES or ERP systems, are often used to support resource management, enabling better monitoring and control of resources throughout the production cycle.

Defining the machine park

Efficient production management must be based on accurate knowledge of technical resources. Therefore, it is necessary to define the machine park, in which structure specializations, i.e. production departments (in a bakery, for example, it will be the dough making department, the bread baking department and the packing department), as well as slots and workstations and all available tools should be distinguished.

Defining production calendars

Production calendars should also be created, which should contain data on the availability of work slots and stations in each department, divided into shifts.

Planning the availability of production resources

Production calendars should be supplemented with production journals, in which the time of use of individual workstations is recorded. Based on this, the degree of resource utilization (their load) and their availability can be determined.

Planning and reporting downtime and machine maintenance

Production calendars and logs should also include data on downtime, its causes, and non-productive time (when a given resource is not used). This makes it possible to monitor the technical condition of machines and choose the optimal time for equipment maintenance.

Allocation of production resources

Using the production calendar, it is possible to efficiently allocate production resources, i.e. plan the use of the machine park in the most economically appropriate way (minimizing downtime and non-productive time).

Balancing the capacity of production resources 

Defining all the elements of the machine park and the stages of the production process enables comparing the demand and capacity of individual stations. This makes it possible to determine their workload and effective use of processing power.

Maintaing resources available in a collaboration 

All operations that are not carried out independently in the company, but outsourced, can be included in the production process and monitored in the information system. The handling of resources available in cooperation is extended by the possibility of sending orders and invoicing.

Production forecasting and planning

Production forecasting is a key process in operational management, which aims to efficiently use resources and ensure the appropriate amount of products. Here are some important aspects related to production forecasting.

Creating production forecasts

Creating production forecasts Thanks to ERP Microsoft Dynamics 365 Business Central, it is possible to create production forecasts based on data generated in all key departments of the company (sales, warehouse, and production itself). This allows for creating the current Main Production Schedule (MPS) and Material Requirement Plan (MRP).

Multi-level production planning

Production planning, i.e. determining tasks and providing resources necessary for their implementation, is based on current sales data, orders and inventory levels, as well as forecasts for these areas. These plans must cover both external demand (for sales) and internal demand (for semi-finished products manufactured within the enterprise), so they are supported by tools for multi-level production planning, and each stage of the production process must have resources to implement it.

Simulating production orders

Production order simulation is a tool for checking resources, in order to determine whether it is possible to start production at a given moment, or not. Simulation can take into account many factors (including multiple BOMs and routes), which is very helpful in the decision-making process.

Component production planning

Thanks to the fact that both the finished product and its components and raw materials are elements of a single production order in the ERP system, it is possible to manage all levels of orders in such a way as to guarantee satisfying the production demand and reserving component for the production of (semi) products.

Production planning sheets

Production planning sheets contain all the data needed to create a plan, allowing to compare the available inventory levels with the current level of production, as well as with forecasts, giving the possibility to estimate the future demand.

Checking the availability of stocks in multiple sections

Thanks to the integration with the warehouse, it is possible to check the stock level in terms of their location, variants (e.g. color, size, production date), as well as data periods in which they are to be available.

Releasing production orders

Production orders are divided into four categories: planned, approved, released and completed. The first two obviously relate to the production planning stage, while releasing the order is otherwise the start of the production process. From that moment on, the system counts the production time, resource consumption and registers the amount of produced stocks.

Production management

Integrated IT systems help companies optimize processes, better use resources and improve operational efficiency. ERP improves communication and prevents downtime. In addition, it enables:

Recording of released production orders

The recording of released production orders allows for monitoring all production activities, as well as details regarding working time, quantity of produced stocks, material consumption, production costs, etc.

Planning and control of raw material availability 

Thanks to detailed production forecasts, production plans and records of orders in progress, effective planning and control of available raw materials is possible.

Planning inventory operations for production

Thanks to the integrity of functions in the IT system, it is possible to constantly adjust and plan warehouse operations so that they support production needs as efficiently as possible.

Recording of raw material consumption and finished products 

Recording all production processes by the system allows for keeping a very detailed record of raw material consumption, resource utilization, and product execution, which enables far-reaching analysis, control and optimization actions.

Recording of performed operations

Each operation performed during the production process should be recorded, which makes it possible to track the progress and level of plan execution.

Job load control

Thanks to detailed data on production processes and operations, it is possible to carry out continuous monitoring of the load on the sockets and workstations, in order to balance them and prevent excessive operation or overloading of individual components.

Control of production implementation

Detailed data on production processes enable control of the state of implementation of specific production processes, including personal, daily and monthly production plan execution, control of the state of execution of each order separately and the entire production together, as well as the state of execution of a specific product instance.

Change the status of production orders

Thanks to the system, it is possible to process production orders in the cycle of their execution, i.e. from planning, through confirmation, release (i.e. starting production), to order completion. This gives insight into the processes in the enterprise that are important from the point of view of planning and production itself.

Calculation of the actual cost 

Due to the fact that the production process may contain many elements spread over time, such as periods of production of individual elements, the production time of the proper product, as well as storage of elements and the finished product, the calculation of the actual (i.e. full) cost of its production can be complicated. Therefore, the ERP system calculates the actual cost at the moment when the production of a given product has been completed (the order has been completed) taking into account every element of production from the time of releasing the order (starting production).