Production control parameters
You need to define production parameters before you can create or run your production. Production parameters help reflect your production environment. You can specify how you want to work with creation, estimation, scheduling, consumption feedback, and cost accounting for production orders.
To open the Production control parameters page, go to Production control > Setup > Production control parameters.
In addition to setting up the production control parameters at the company level, you can set up the production control parameters uniquely by site. If a site doesn't have parameters assigned to it, Supply Chain Management uses the company-created parameters for that site.
Parameters by company or site
Two versions of the Production control parameters page exist, where you can define production parameters that apply to the company level. Another version allows you to define production parameters that apply to the site level. You can specify the parameters that apply to the site level on the Production control parameters by site page in Production control > Setup.
The value that you set in the Parameter usage field determines whether Supply Chain Management uses the company-level parameters or the site-specific parameters. If the Parameter usage field is set to By Site, the system uses site-specific parameters where they're defined. If the parameters aren't defined, the system uses company-level parameters by default.
The tabs of the Production control parameters by site page follow the same pattern as the Production control parameters page.
The following sections provide an overview of each tab and its parameters.
General tab
The following fields are on the General tab:
The Parameter usage field controls which production parameters that the system uses:
By company - The system always uses company-wide parameters.
By site - The system uses parameters for the selected site. If no site-specific parameters are defined for a certain site, finance and operations apps uses the defined parameters for the company.
Profit setting - Specifies the profit setting that the system should use to determine the sales price of the item. Profit settings are associated with cost groups, which in turn can be associated with cost categories. This setting establishes a reference (relationship) between item consumption, route consumption, and profit-setting. The system uses the selected value by default to determine sales price.
Reservation - Specifies whether the system should reserve items on a production order automatically and whether it should select available inventory as being used for this order. The following options exist:
Manual - The system doesn't make a reservation.
Estimation - The system automatically reserves raw material when you estimate the production.
Scheduling - The system automatically reserves raw material when you schedule the production.
Start - The system automatically reserves raw material when you start the production.
Ledger posting - Shows how the system should post the production order to the ledger, which takes place when the system cost accounts the production order. When you create a new production order, the Ledger field in the production order contains the setting that you enter in the Ledger posting field.
Maximum job lead time - Specifies the maximum lead time for a production order in days. If the lead time is larger than this value when you run Operations or Job scheduling, the scheduling doesn't occur. This parameter can also apply to sites.
Route network - Select this parameter to use a complex network. A complex network means that the production routes have several branches, each started independently of the others. When you work with complex networks, you need to build up the internal sequence in the production route manually. Essentially, you need to define which operation is to follow the current operation. When you work with two or more parallel operations, all simultaneous operations are allocated the same operation number.
If you're only working with simple networks in which the operations run sequentially, then you don't need to use the Route network parameter.
Mandatory date - If you select this parameter, you need to enter a validity period for a route that states when it's valid. When the starting date expires, the route is no longer valid.
Block removal of approval - When you select this parameter, you can't change the status of a route after it's approved.
Block editing - When you select this parameter, you can't edit a route.
Post picking list in ledger - Select this parameter if you want the system to post inventory transactions that derived from the posting of picking lists to the ledger. This parameter can also apply to sites.
Post report as finished in ledger - Select this parameter to allow the posting of production orders that are reported as finished in the ledger. This parameter can also apply to sites.
Post excl.transaction type - Select this parameter to exclude the transaction type from ledger transactions when someone totals and creates them during production posting. This parameter can also apply to sites.
Planned order - Select this checkbox to include capacity that's reserved for planned orders during production scheduling. This parameter can also apply to sites.
Project - Select this checkbox to include capacity that's reserved for projects during production scheduling. This parameter can also apply to sites.
Limited work center search - Use this field to improve the performance of job scheduling. When you select this checkbox, the program searches for the first work center that fulfills the required date and time. If you don't select the checkbox, the program searches for the work center that fulfills the required date, time, and shortest lead time. This parameter can also apply to sites.
Price calculation - Select this field if you want to calculate the estimated cost price for a production order during the estimation stage. You can view the results in the Price calculation page. The system calculates the realized cost price of a production order when you post production journals, regardless of this parameter. This parameter can also apply to sites.
Delete capacity reservations - Select this checkbox to delete capacity reservations when you report production orders as finished. This parameter can also apply to sites.
Use estimated cost price - Select this checkbox to use the estimated cost price to determine the physical value when you report production orders as finished. This parameter can also apply to sites.
Journals tab
You can define which settings should operate by default in each of the four journal types on the Journals tab of the Production control parameters page.
The following list describes the fields in the Default journal names field group. Pick the journal name that you created and want to use as default from the dropdown menu in each field:
Picking list - Select the name of the picking list journal that you want to use to automatically record deliveries from inventory if nothing else is specified on the production order line. This parameter can also apply to sites.
Route card - Select the name of the Route card journal that you want to use to record route consumption if nothing else is specified on the production order line. A Route card provides you with an overview of information on route and operation setups. This parameter can also apply to sites.
Job card - Select the name of the Job card journal that you want to use to record jobs if nothing else is entered on the production order line. A Job card lists the individual job numbers of a particular operation, one job for each page. The jobs on a Job card, and their estimated times, come from the route and operation setup information. You can open the lines (or entries) on each job directly from the Job card to obtain feedback from the shop floor on the production process as it happens. Employees can enter consumption statistics and information, such as the error quantity, directly into the system.
Report as finished - Select the name of the journal to use when the system automatically reports the production order as finished. This parameter can also apply to sites.
Pick negative - Select this option to allow negative picking in the physical inventory when you're posting.
Physical reduction - Select this option to automatically reduce item consumption to physical inventory if there are out-of-stock items.
Inv. Managed planned order qty. - Select the checkbox for the planned order quantity to appreciate the attached inventory transactions. This field indicates whether the default quantity in the picking list journal is to control and record corresponding inventory transactions. If this field isn't selected, the consumption quantity in the picking list journal controls and records the corresponding inventory transactions. Control means that a quantity is always in the inventory transactions to satisfy the quantity in the journal lines.
Accept error - Indicates whether the system should accept missing feedback on work center and item consumption.
Automatic BOM consumption - Indicates whether the system must automatically picking-list update BOM consumption for the current production.
Mandatory cost category for quantity - Indicates whether the system must associate a quantity category with a production order in the Route and Job card journals. If this option is selected, the system must associate a quantity category with a production order when the production order is started; otherwise, it's not possible to start the production order.
Mandatory cost category for hours - Indicates whether the system must associate an hour category with a production order in the Route and Job card journals. If this option is selected, the system must associate an hour category with a production order when the production order is started; otherwise, it's not possible to start the production order.
Automatic report as finished - Select the checkbox to allow the system to automatically report feedback as finished for the last operation.
Update capacity plan - Indicates whether the system must automatically reschedule the operation in the referenced production route backward from the current ending date and time when someone posts the Route card and Job card. During rescheduling, the system adjusts the reserved capacity so that it reserves only the capacity that's needed for the remaining quantity.
Automatic update tab
You can use the Automatic update tab on the Production control parameters page to define settings that guide automatic updates of the production order as it moves through different production stages. The production order has a different status, depending on its stage. These settings determine that the system will run an update when the production passes a certain stage and is ready for the next.
For example, the system automatically updates the schedule when a production has been cost-estimated and released.
Some fields in the Automatic update tab are:
Scheduling method - Indicates the scheduling method that the system uses when production orders are scheduled automatically. The following methods exist:
Operations scheduling - The system calculates the starting and ending dates for one or more production orders by using a rough estimate based on the capacity of the resource groups.
Job scheduling - The system creates jobs for the specified operations on the attached production route, and then it calculates precise starting and ending times for each job and operation. Job scheduling allows users to schedule the production order's other jobs together with any references on the specific job.
Automatic BOM consumption - Select an option to set up automatic BOM consumption when you update a production order. Then, the program posts a picking list journal for the received quantity on the purchase order. The options are: Flushing principle, Always, or Never.
Automatic route consumption - Specifies the setup for automatic route consumption with the automatic running of Start. Running route consumption is automatic when an update that's mandatory to the production flow is skipped. For example, Report as finished is run and Start isn't run yet.
Group by vendor - Indicates purchases that the system automatically creates when productions are cost-estimated and grouped by supplier. Alternatively, the system generates one purchase with one line for each planned purchase order.
Group by purchase agreement - Indicates purchases that the system automatically creates during estimation.
Find purchase agreements - Select the checkbox to activate the search for purchase agreements during the estimation. If the program finds a corresponding purchase agreement, it copies relevant information, such as price and discount, to the purchase order lines.
Standard update tab
Apply the parameters on the Standard update tab on the Production control parameters page when no other value is specified at a higher level, such as when no journal name is specified for automatic picking. The Standard update tab contains fields relating to End and Scheduling.
Use the Scrap method field on the Standard update tab of the Production control parameters page to select the method for posting item and work center consumption that the program uses for the error-reported quantity.
Use the Scrap account field to specify the ledger account on which the program must post scrap.
The remaining fields on the Standard update tab are:
Finite capacity - Select the checkbox to ensure that scheduling observes capacity limitations.
Finite material - Select the checkbox to ensure that scheduling ensures (by use of futures messages) that materials are available. This field indicates whether the program must consider the material's existence on scheduling as critical or noncritical.
If delivery of the materials before an operation begins is considered critical, then scheduling uses the estimated futures dates for the component materials. The futures dates indicate when the materials are available and calculated with your selecting Yes on the futures setting in scheduling.
If the materials aren't considered critical, scheduling assumes that the materials are available or can be procured immediately.
Finite property - Select the checkbox to ensure that scheduling observes property requirements. The program uses limited property to control the setup times for operations with the same properties. Essentially, if two operations with the same properties follow sequentially, Job scheduling doesn't consider setup time. Property scheduling doesn't apply to work center groups.
Status tab
The Status tab on the Production control parameters page provides an overview of the stages in the production cycle. The checkboxes indicate whether the program can run a given update on the production order, given the production order status.
Inventory dimensions tab
Use the Inventory dimensions tab on the Production control parameters page to select the dimensions that you want to appear in the journals, lines, or tables.
Unit of measure tab
Use the Unit of measure tab on the Production control parameters page to define units of measure that the system uses as time units in production flow activities in lean manufacturing. The time units are as follows:
Days
Hours
Minutes
Seconds
Lean manufacturing tab
Use the Lean manufacturing tab on the Production control parameters page to define default parameters that the program uses when you create production flows and activities in lean manufacturing.
For more information, see Configure and use lean manufacturing in Dynamics 365 Supply Chain Management.