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 Centre
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.