Configure and use process manufacturing in Dynamics 365 Supply Chain Management

The life cycle of production begins with the creation of the production order, batch order, or kanban. It ends with a finished, manufactured item that is ready for either a customer or another phase of production. Each step in the life cycle requires different kinds of information to complete the process. As each step is completed, the production order, batch order, or kanban shows a change in the production status. Different types of products require different manufacturing processes.

Process manufacturing is associated with formulas and manufacturing recipes, whereas discrete manufacturing uses discrete units and bills of materials. Process manufacturing is used in manufacturing environments where production is completed in batch or semi-continuous processes.

In process manufacturing in Dynamics 365 Supply Chain Management, a formula defines the materials, ingredients, and outcomes of a specific process.

Often, customers demand specific requirements for the finished goods results from process manufacturing. For example, in the cheese industry, milk is one of the raw materials that is used to produce the cheese and it can have attributes such as fat content and percentage weight. The cheese that is produced from the milk can have other attributes, such as moisture and age. If the customer requirement is not met, you will either have to rework the process or start a new batch process. To ensure that process manufacturers meet customer demands, you must define batch attributes that reflect customer requirements. Additionally, after a quality check, the finished goods must meet the value or range of values from batch attributes.

The fall and rise of prices for commodities such as renewable energy, natural gas, coal, and oil in manufacturing affect the cost of production. In this module, you'll learn how to set up commodity pricing and stay in compliance for your finished goods.