ERP software for business from the manufacturing industry

Technological production preparation

Define products 

In order to properly prepare the production process, it is necessary, first of all, to define the basic elements of the product, i.e. the final product, the materials for its production (semi-finished products or components) and raw materials (unprocessed elements).  

Example: flour and water make a dough, bread is made from the dough, bread is foiled to keep it fresh for longer. Our product is therefore packed bread, dough and bread materials, while raw materials are flour, water and foil. 

Defining phantoms (apparent semi-finished products) 

Phantoms are elements used for production that cannot be clearly produced, invoiced, state-run, and which are used in many different production processes. An example is the spice mixture, which is added to pastries. Its components are entered in the inventory register, but there is no need to define its recipe for each production process. 

Create production BOMs 

The production bill of materials, or BOM, defines all the components that are necessary for us at every stage of production of a given product. The BOM should contain a description of each element together with the exact quantity or measure needed to produce the finished product (e.g. a kilogram of flour and half a liter of water are needed to produce one and a half kilograms of dough, etc.). The ERP system enables comprehensive support of even very complex, dozens of stage BOMs. 

Development of the course of production processes – routes 

A route is a sequence of steps defined in the program that is necessary to produce the finished product taking into account the entire production environment, i.e. with the workstations, equipment needed for production and all subsequent stages. So, one by one, it indicates who makes the dough, who bakes it and in which oven, and who finally packs it. 

BOM and Route versions 

Many products can be made using alternative recipes, i.e. BOMs (e.g. natural sourdused, so yeast will be used), and the production process itself can be designed in different ways. In the case of bakeries, the dough can be made on an ongoing basis, or in larger quantities and frozen before baking. The choice of a specific version will depend on resources, internal conditions (for example, you create route versions in case of device failure), or optimization requirements. 

Link BOM components to production process operations 

The entire production process is based on the connection of the route (sequence of production stages) to the BOM components. Such a link shall give information on what material is to be used at each stage and at what point it should be delivered. Thanks to this, there is no need to deliver all the materials already at the beginning of production, but exactly when they are needed. 

Manage production resources

Define a machine park 

Efficient production management must be based on accurate knowledge of technical resources, so defining a machine park is essential. In the structure of the machine park, specializations should be separated, i.e. production departments (in the bakery it will be, for example, the dough making department, bread making department and packaging department), as well as nests and workstations and all available tools. 

Define production calendars 

Production calendars should include data on the availability of work centers and positions in each department, broken down by production change. 

Plan production resource availability 

Production calendars should be supplemented with production journals in which the time of use of each work center and workstation is posted. On this basis, it is possible to determine the level of resource utilization (their workload) and monitor their availability. 

Plan and report downtime and maintenance 

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

Allocation of production resources 

Using the production calendar, it is possible to efficiently allocate production resources, and thus such planning of the use of the machine park, which is most appropriate from an economic point of view (minimizing downtime, as well as non-production time). 

Balancing the capacity of production resources  

By defining all the elements of the machine park, the stages of the production process, as well as detailed recording of resource utilization, you can compare the requirements and capacity of individual components (work centers and workstations, and machines and other tools) to determine their workload and efficient capacity utilisation. 

Maintain resources available in a collaboration 

With this feature, production operations that are not carried out independently in the company, but outsourced, can be included in the production process and monitored. Support for resources available in the cooperation is expanded with the ability to send orders and invoicing. 

Production forecasting and planning

Create production forecasts 

With Microsoft Dynamics 365 Business Central ERP, you can create production forecasts based on data generated in all key departments of your business (sales, warehouse, and production itself). With forecast data, it is possible to create the current Main Production Schedule (MPS) and Material Requirement Plan (MRP). 

Multi-level production planning 

Production planning, in other words, determining tasks and providing the resources necessary for their implementation, is based on current sales, order and inventory data, as well as forecasts for these areas.These plans must cover both external (for sale) and internal demand (for semi-finished products produced within the company), so they are supported by tools for multi-level production planning (each stage of the production process must be provided with the resources to implement it) 

Simulating production orders 

Production order simulation is a tool for checking the availability of required resources to determine whether it is possible to start production at a given time 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 order levels in such a way as to guarantee the satisfaction of production demand and component reservation, for the production of (semi)parent products. 

Production planning journals

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

Examine inventory availability across multiple sections 

By integrating with inventory, you can check the availability of inventory for its location, variants (e.g. color, size, date of manufacture), as well as the period data in which you want to make them available, you can also check their availability on the timeline. 

Release production orders  

Production orders are divided into four categories: planned, approved, released and completed. The first two, of course, concern the production planning stage, while the release of the order is otherwise the start of the production process. From that point on, the system counts production time, resource consumption, and records the quantity of manufactured inventory. 

Production management

Records of released production orders 

The records of released production orders allow you to supervise all production activities in progress, as well as details about working time, quantity of manufactured inventory, material consumption, production costs, etc. 

Planning and control of raw material availability  

With detailed production forecasts, production plans, and in-progress order records, you can effectively plan and control available raw materials. 

Plan inventory operations for production 

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

Records of made products and consumption of raw materials  

Recording all production processes by the system gives the possibility to keep very detailed records of raw material consumption, resource use, as well as product execution, which enables far- reaching analysis, control and optimization activities. 

Records of performed operations 

Each operation performed during the production process should be checked in so that you can track the progress and execution level of the plan. 

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 allow you to control the state of implementation of specific production processes, including the execution of a personal, daily and monthly production plan, control of the status of the execution of each order individually and the entire production together, as well as the state of implementation of a particular product copy. 

Change the status of production orders 

Thanks to the system, it is possible to process production orders in the cycle of their execution, that is, from planning, through confirmation, release (that is, starting production), after completion of the order. This gives you an insight into the planning and production processes in your enterprise that are relevant to your business. 

Calculation of the actual cost  

Since the production process can contain a large number of staggered components, such as the production periods of the individual components, the production time of the relevant product, as well as the storage of the components and the finished product, it can be complicated to calculate the actual (and therefore full) cost of its manufacture. 

The ERP system therefore calculates the actual cost when the production of the product has been completed (the order has been completed) taking into account each production element since the order was released (start of production).