Manufacturing
An operations department is responsible for managing many processes,
including manufacturing and distribution. Operations roles need to provide the
right number of products and services at the right time. Supply-chain
relationships with vendors and business partners are critical to effective
distribution. Close connection with sales and finance ensure that realistic
projections influence production and accurate costing informs the company's
financial management.
Microsoft Dynamics serves as a shared source of data and processes for
engineering, materials, production and shipping and receiving. It helps these
departments work together to succeed. This page describes the major challenges
faced by operations teams.
Efficient order entry and distribution
To effectively meet customer needs, operations groups need to keep tight
control over order processing. They need to transmit orders quickly to the right
departments, and keep sufficient stock on hand to complete the orders. As the
daily experience of order processors shows, a number of issues may complicate
these tasks. Order processors must verify product or quantity changes with all
departments involved, and inform salespeople of customer activity that affects
their accounts.
Microsoft Dynamics gives order processors the tools they need to
effectively communicate with customer service, sales, purchasing and warehouse
departments. It presents the necessary information in a well-designed
order-entry system that looks and feels like familiar Microsoft Office system
software. With these tools, workers can quickly create invoices or purchase
orders directly from a sales order form. Microsoft Dynamics also allows you to
create order types and customise order management based on your business needs.

Screenshot of the Production Manager Role Center
Integrated demand planning
In manufacturing and distribution companies, demand planning determines
whether production is efficient or wasteful, and whether delivery is rushed and
costly, or comfortably and economically on-time. Up-to-date information and
visibility throughout the company are important to predict demand accurately and
respond to customer needs.
Microsoft Dynamics helps operations managers create accurate demand
forecasts based on historical sales and customer data. Reports and access to
ongoing key performance indicators help provide insight into emerging trends.
Materials, production and logistics departments use this information as a basis
for their own planning.
As well as features like automatic notification to help buyers make sure
sufficient inventory is on hand, Microsoft Dynamics simplifies demand planning
by integrating with Microsoft Office Excel. People can create and analyse
forecasts in familiar Office Excel spreadsheets, then upload the documents into
the Microsoft Dynamics demand planning function, which also looks like Office
Excel.
Capably manage exceptions
Producing and delivering what customers want, when they want it, is the
way to customer satisfaction with manufacturing operations departments. To
achieve this, manufacturers must be effective in managing orders that call for
customised products and that might require special materials or process
adjustments.
Microsoft Dynamics supports exceptions management with flexible planning
and production options. It can also account for non-inventory parts or add items
to the inventory. And because Microsoft Dynamics sales and manufacturing
functionality is integrated with financial management, employees can easily make
accounting adjustments.
On the shop floor, Microsoft Dynamics provides flexibility to make
exceptions as efficiently as possible. With visibility into processes, you can
organise your workload for maximum process and operational efficiency, such as
by grouping production orders when appropriate.
Production in Microsoft Dynamics™ AX gives you real-time insight into your manufacturing processes to help increase both your production efficiency and profitability, while helping to reduce your overall costs.