Business Central features for niche needs in manufacturing
Dynamics 365 Business Central is a no-nonsense mid-market ERP solution that provides essential features and functionalities to businesses across industries while boasting extensive customizability. So, any business can find value in Business Central for their general ERP needs and for more specific use cases.
Manufacturing is an expansive industry with a variety of niche and unique needs. Business Central for manufacturing includes a variety of features, some essential for all manufacturers, and some features that not every manufacturer is going to want to use. In this blog, we will discuss four niche Business Central features that, when used in the right scenarios, bring big value to the table.
One: Version Numbers for Production BOMS
Version Nos is a field within the Production BOM that stores the various iterations of a single product’s Production BOM.
Ideal Use: Version numbers show small changes, especially for custom products and products that undergo small shifts in production. Think of a slight shift in color, or the same part from a different vendor.
They are slight variations on the same product, but each version should likely be interchangeable. This isn’t the place to evolve one product into a new one. When making many or large changes (or some may say that if the form, fit, or function shift), it’s probably best to just make a new item in Business Central. This is a feature we recommend talking to a partner about, because it’s incredibly helpful for some manufacturers—but not so much for others.
Two: Simulated Production Order
Simulated Production Orders are just like they sound: simulations of real production orders that are used as an example of a proposed item that is able to undergo experimentation within Business Central before rolling it out.
Ideal Use: Simulated Production Orders (SPO) are best used to plan, quote, and cost new items. A Research and Development team may create SPOs to test the cost and production viability of a new product before moving forward with it. SPOs do not influence the planning of orders – MPS and MRP do not factor in SPOs, and when its status is changed, it disappears. Though this tool won’t be used in day-to-day routines, Simulated Production Orders can help manufacturers see exactly how a new product will fit into their larger processes.
Three: Lot-for-lot Reordering Policy (with a lot accumulation period)
Selecting the Lot-for-lot Reordering Policy (located in the Planning tab of an item card) essentially means that for each unit used, that same amount of that product will be reordered (or produced, if it is a production order).
Ideal Use: When the other reordering options (Fixed Reorder Quantity, Maximum Quantity, and Order) just don’t cut it for this specific item, lot-for-lot reordering with a lot accumulation period is the way to go. This setup looks at current inventory and anticipated inventory needs for a timeframe you define, and then suggests orders to accommodate those future needs. If ten units of one product are sold on a given day, ten will be reordered.
But no business wants to reorder the same item several times a day or a week—it’s a surefire way to muddle your system with inefficient orders. That’s why we’d also recommend setting a lot accumulation period of a week or a month (or whatever makes sense for the item). By defining a timeframe to forecast that inventory item’s use, you order once and are covered for the next X days/weeks. Set the safety stock quantity, minimum order quantity, and maximum order quantity to further specify reordering rules and automation.
Basically, these settings will say: "Every X days/weeks, suggest an order for me based on the bundled forecasted and scheduled inventory use, and make sure we have a safety stock quantity of X just in case our actual future sales exceed projected. In addition, no matter what the forecasted use is, I don’t want to order more than X or less than X at a time.”
Four: BOM Cost Shares
BOM Cost Shares shows the total cost of all elements that go into making an item—such as individual item cost, scrap, overhead, shift production amounts, machine setup time, run time, etc.—to see how each impacts the overall unit cost. This allows for a certain amount of experimentation and tweaking of parameters within the BOM so you can arrive at the best scenario for cost, efficiency, and need.
Ideal Use: When you’re trying to streamline item production and save on costs (and when aren’t we?), you want the best balance between demand, cost of parts, capacity, machine setup time, overhead costs, run time, etc. that factor into the price of a single unit of an inventory item. By adjusting the minimum quantity made at a time for a product with a long machine setup time, for instance, the unit price may be reduced. On a practical level, cost shares can help you get the most of every movement on your production floor.
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Business Central is an excellent ERP for a variety of industries. Manufacturers will find Business Central to be robust and powerful with the standard, expected ERP features and functionalities, while also offering incredible variation in how each manufacturer uses it. If you’re interested in these features, or Business Central in general, connect with our skilled consultants by filling out the form below. We offer free initial consultations and personalized demonstrations based on your business needs.