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Manufacturing Functionlity in Dynamics GP


Gain complete control over your inventory,
production and orders.

Costing and Inventory Control
Are you confident and in control of your costing and inventory?
How your inventory is accurate?
What about costing methods; are they set according to your business requirements?
You might think because you have some complex ways of doing things that there isn’t software that can meet your requirements. That is not always the case.
Microsoft Dynamics GP Manufacturing allows you greater control of your inventory both from a costing and a quantity control perspective.
1.       Cost (periodic) or Average Cost. Each with Last In First Out (LIFO) or First In First Out (FIFO) options.
2.       Individual items, whether purchased or produced, can be set to be either Lot Tracked, Serial Number Tracked, or not tracked at all.
3.       Each item can be designated as a Made item, a Bought item or an item that you can either buy or make, depending your manufacturing constraints at a given point in time.

If the item is a Made item, you can further designate whether that particular item is to be Made to Stock, Made to Order – Manual (which requires intervention at the time the sales order is taken) or Made to Order – Silent (which requires no intervention at the time the sales order is taken but system level defaults are used).
These options give you timely, detailed and accurate tracking of production costs and inventory. The Manufacturing series of modules in Microsoft Dynamics GP can help you improve efficiency, cut costs and improved profitability.


Controlling Inventory Quantities
When purchasing raw materials or manufacturing items, you can utilize item information to indicate controls such as:
                        Effective Date of the item
                        The primary buyer and planner for the item at a given facility
                        Order Replenishment Quantities at a given facility
                        Purchasing Lead Times per vendor at a given facility
                        The Average Quantity for this raw material
                        The ability to link associated schematics, diagrams and/or videos to an item for viewing on the production floor
                        The ability to indicate if an item has a standard shrinkage percentage
                        Indicating Alternate Items that can be used as substitutes if you are unable to meet specific demand for raw materials or subassemblies that are required for the manufacture or a specific item

Controlling Manufacturing Production with Bill of Materials and Routing
Each manufactured item can have multiples BOMs and multiple Routings giving you virtually unlimited adaptability in you manufacturing processes.
If the item in Inventory is marked as Make or Make/Buy, Microsoft Dynamics GP Manufacturing requires a Bill of Materials (BOM) to associate the different components needed to manufacture the Item. These components can be either raw materials, subassemblies or even outsourced processing.

The Bill of Material can be designated as one of several things:
                        It can be one that the Engineering Department is currently doing design work on.
                        One that is ready for manufacturing.
                        One that is a copy of one you are no longer utilizing on a regular basis.
                        Or one that allows for configuration at the time the sales order is taken.

The Routing for a Made item indicates the location, times (Setup, Cycle, Queue and Move) that it takes to build the item at each stage of the manufacturing process. Here is also a great place to link the schematics, drawings and/or videos so the production staff can see what they are to build without having to have papers moving around the manufacturing floor and getting misplaced or unreadable.
So that you can easily make changes, Microsoft Dynamics GP Manufacturing has utilities to be able to copy BOMs and Routings with an easy click of the mouse. Additionally, BOMs that need to change a specific raw material or subassembly can easily accomplish that task with a built-in utility called Level Code.
The Level code is used to describe how low in the BOM process this item will go. Level code is a part of MRP. A Work Center has to be set up as a site within GP; a site does not have to be a Work Center. BOM Mass update is a utility that is used similar to Class ID’s for rollups or roll downs of changes to the BOM. The routine is located at Tools>Utilities>Manufacturing>MRP Low Level Codes.

Understanding the Status of Manufacturing Orders Microsoft Dynamics GP Manufacturing allows for various statuses of a Manufacturing Order:
                        Quote/Estimate (this can be set from the Sales Order)
                        Open (this can be set from the Sales Order)
                        Released
                        On Hold
                        Cancelled
                        Partially Received
                        Complete

Where do you start? Before materials can be issued to the manufacturing floor for production, the Manufacturing Order must be in a status of Released. Once it has been decided that the Manufacturing Order is going to be built, material inventory can be allocated specifically for that Manufacturing Order or it can be issued to the manufacturing floor. If the Manufacturing Order gets cancelled, the unused materials can either be put back into the warehouse for other orders or they can be unallocated.
Changes to items? No problem. If changes need to be made to the items that need to be sent to the production floor for a particular order, this can easily be accomplished via the Picklist process. Once materials are issued to the Manufacturing Order, those materials are removed from their inventory storage location (site) and transferred into a Work In Process (WIP) site. (Also during this process you can see if you have material shortages or select serial or lot numbers for the component items.)
Once the Manufacturing Order is either Partially or Fully Received, the related costs are removed from Work In Process and used to make up the cost of the finished good.
When you create a MO through SOP there is an automatic link between the line item and the MO that is generated. Through SOP you must backorder (B/O) the part or MO will not see a need to be created. The part must be a Made to Order part from the Item Card.

Build and link parts: From the MO window you can build a part and then you can link it to a back order (B/O) or SOP (Sales Order Process) so that they tie together. Once you have stock, the SOP will automatically go from a B/O state to the parts being allocated. You must then fulfill the SOP in order to process it throughout the system. You can enter shipping information, BOL (Bill of Lading), freight charges from that box and it will populate the SOP for you.

Material Resource Planning (MRP)
For those of us in manufacturing, a common term is Material Requirements Planning or MRP. With Microsoft Dynamics GP, MRP enables the Production Managers and Buyers to have visibility on when made items and purchased items are needed to meet Sales and/or Manufacturing demands.
A few of the useful pieces of information include:
                        Gross Requirements - how many units of a specific item are needed in a specific timeframe
                        Scheduled Receipts - how many units of a specific item have been confirmed and are a firm order.
                        Net Requirements - what MRP looks at when planning

MRP provides you with manufacturing and purchasing SUGGESTIONS. You still have control as to what you manufacture and purchase. MRP says “I see the need to produce this item on these dates based on orders in the system” leaving you in control, with information at your fingertips to make the most educated decision.
As the Buyer and/or Production Manager you can then create Purchase Orders or Manufacturing Orders from within MRP based upon the suggested quantity. Plus, all of this information is date driven so you can easily look at supplies and demands by Days, Weeks, or Months.

Modules Included in ManufacturingManufacturing Order Processing: Track detailed production costs and manage work orders and the shop floor more efficiently.
Job Costing: Capture all costs when they occur and consolidate them in one location that’s easy to access and manage, giving you a comprehensive view of production profitability.
Materials Requirements Planning: Adjust procurement and production with greater precision, and ensure that supplies arrive when and where they are needed—helping reduce stock outages, drive down inventory costs, and streamline the production process.
Engineering Change Management: Collect, organize, and review changes to orders before they’re authorized. Adjust processes and components to accommodate new technologies and customer changes while maintaining efficiency and profitability.
Manufacturing Bill of Materials: Deliver complete, consistent, and current product information. Manage materials, components, and assemblies more precisely.
Sales Forecasting: Increase collaboration and bridge communication gaps to promote effective, efficient product delivery.
Quality Assurance: Ensure the product consistently meets or exceeds demanding customer requirements with tight control of quality-testing processes.
Sales Configurator: Define items manufactured by your business with the flexibility to include or exclude certain options based on customer specifications.
Capacity Requirements Planning: Establish and measure capacity, and compare capacity defined for your production floor to work completion goals.
Master Production Scheduling: Gather information from sales forecasts to form a single, comprehensive production schedule and createmanufacturing orders.



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