MICROSOFT DYNAMICS AX FOR PROCESS...

MICROSOFT DYNAMICS AX

FOR PROCESS INDUSTRIES

Tectura (Thailand) Ltd.

Property of Tectura Corporation.

What is Microsoft Dynamics AX?


• Adaptable, integrated, cost effective ERP solution Initial release – 1998

28% customer growth since 2004

7,500 customers and 1,500 partners in 39 countries

Midsize to enterprise organizations from 20 to 3000+users

40 languages and 36 country localizations

400 developers within Microsoft alone

60% of install base is Manufacturing

3000 concurrent user benchmark

ManufacturingProject

AccountingDistribution

Enterprise Portal Human ResourceManagement

Financial Management

Customer Relationship Management

Supply Chain Management

BusinessAnalysis

Core Small Business

Lower Middle Market

Core Middle Market

Upper Middle Market

Corporate

Global

Strategic

Moving intothe Enterprise

Market

4520

5100

6186

6900

4000

4500

5000

5500

6000

6500

7000

Nov/04 May-05 Jan/06 Jun/06

Microsoft Dynamics AX Vertical Focus Areas


Microsoft DynamicsDevelopment/Support

Industry Development

Manufacturing Project Accounting Distribution Enterprise Portal HRM

Financial ManagementCor

e

CRM SCM Analytics

Verti

cal

AX Industry Module – Microsoft Core & Support

Automotive Suppliers

ND CPGIndustrial Equipment

ProcessManufacturing

Life SciencesWholesale

and Distribution

Apparel andTextiles

ConstructionHigh Tech and Electronics

Metal

Fabrication

ProfessionalServices

Retail

EU PublicSector

Aerospace andDefense

Microsoft Premier Advantage Business Solutions – Deluxe Support

Process Industries Modules

Process ManufacturingProcess Distribution

ProcessIndustries

Key Features


• Recipe/formulation management

• Co-product and by-product management

• Multi-dimensional item tracking and traceability Packaging/containerization

Storage and shelf life

Lots

• Flexible scheduling

• Network routing model

• Integrated quality assurance (QA) and quality control (QC) management

Key Benefits


• Implementing industry best practices

• Better communication between departments internally and with trading partners

• System that adapts to “customer’s” operations

• Provide real-time insight into production processes and costs to manage resources core effectively

• Respond quickly to changing market conditions

• Adapts well to hybrid Manufacturing operations

Nucleus Study – Return On Investment (3rd Party neutral source)


75% OF

Dynamics AX Customers

ACHIEVED A POSITIVE ROI

WITHIN 2 YEARS !!

Key findings included:

•75% of customers achieved ROI

•Average payback of 23 months.

•56% of customers reduced staffing costs

•44% of AX customers reduced IT costs

•75% of AX customers reported improved operations and visibility

Common Inventory Issues


SUGAR

5 Kg.

Lot 123

Warehouse: AA

Location: Aisle 1 , Row 2, Bin 1

Lot Number: 123

Sub lot Number: AA

Lot Status: Available, Quarantine

QC Specs: Inspection Order

Grade: AAExpiration

Substitutions

Item Number: 5501

Site: 01

SUGAR

5 Kg.

Lot 123

SUGAR

5 Kg.

Lot 123

Other Inventory Issues


SUGAR

5 Kg.

Lot 123

Std. UOM Conversions

5 Kg.= 11 lbs &

User defined UOM

Vendor Lot Number

Vendor Expiration Dates

Certificate of Analysis

Shelf Life

Expiration Date

Test /ReTest

Laboratory Data

Test Plans

Workflow

QC Spec

% H2O

PH

Acid

Certificates

of Analysis

8 oz

Honey

Valid Substitutions

SUGAR

5 Kg.

Lot 123

Five Dimensions of Process Inventory


Product

Container

Lots

Status/Disposition

Potency

Multi-Dimensional Inventory


Physical on-hand inventory is: 22,500

Actual gallons of potent equivalent is: 20,500

Pack Qty. Qty. Lot Status Potency

25 Cylinder 200 5,000 L0003 Grade 1 80% (4000 Gal)

50 Drum 200 10,000 L0004 QC 90% (9000 Gal)

75 Cont 100 7,500 L0005 Fail 100% (7,500Gal)

Product Number 1234 On hand inventory 22,500

Product Description Liquid Chemical Unavailable 17,500

Unit of Measure Gallons Net Available 5,000

22,500 20,500

Product

1234

5000

Gallons

Available

(net able)

Catch Weight (Dual Units)


(1) = Ham 2 kg. Avg.

$ Value = 10 Euros /kg.

Lot 1:

50 Hams Total Actual Weight: 110 kg.

Value: 5.500 Euros

Lot 2:

50 Hams Total Actual Weight: 90 kg.

Value: 4.500 Euros

Report as Finished Catch weight


Product: Prime Sirloin Cuts: 6 oz. each

Lot Number: 08/08/0001

Quantity: 50 steaks

Actual Weight: 305 oz.

Product: Prime Sirloin Cuts: 6 oz. each

Lot Number: 08/08/0001

Quantity: 50 steaks

Actual Weight: 315 oz.

Formula: Beef Primary

Batch Order: BO-00045

Shelf Life and Disposition


Shelf advice date = Batch Date + Shelf Advice (Days)Best before date = Expiry Date – Best Before (Days)Expiry date = Batch date + Shelf Life (Days)

Vegetables: Lot 001

Quantity: 500 kg.

Expiration date: 01/15/2009

BOM Structure: One Dimensional


• Scientific Output and Input• To Build A needs finite number of b,c,d and or 1,2,3• One Work Order per product output

A

B C D

1 2 3

BOM Versus Formula


Formula Structure – “Multi Dimensional”

A1 A2 A3

CO 1

CO 2

BY 1

A

B C D

1 2 3

Main Item

Finished Item

Manages: Hour Glass Formula


White PepperGarlic Lemon JuiceChicken

Breasts

Lemon Garlic

Chicken

Breasts

1 LB

Pack of Lemon Garlic

Chicken Breasts

5 LB

Pack of Lemon Garlic

Chicken BreastsSKU

Level

Intermediate

Intermediate

Complex Routing for Integrated Manufacturers


HCN ACRYLONITRILE

STYRENE

POLYMERS

ACETIC ACID

BENZENENAPHTHA

ETHYLENE

ACETYLENE

ETHYLBENZENE

RESINS

BYPRODUCTS PROPYLENE

CUMENE

ACETONE

PHENOL

VINYL ACETATE

FORMALDEHYDE

Supply Main Plant Derivative Plant Customers/

Plants

Flexible Routing


Normal ERP systems = 6 work orders

Process ERP systems = 1 production batch/ run

Mix tank 1, Batch 1

Mix tank 2, Batch 2

Mix tank 3, Batch 3

Main Line

Pasteurize line

Non Pasteurize line

Milk 3.6% bf

Milk 3.4% bf

Milk 3.5% bf

Milk 3.5% bf

Sheet Stock Metals (Batch Attributes)


Numeric & alphanumeric specifications:

Intelligent part numbers and routings

Length: 100 meters

Thickness

.18 Gauge

Width

82 cmWeight

2 Tons

Color

Flat Black

Quality: Grade A

Roll Stock

Dimensional Products

1882100FB= 18 gauge, 82 cm width, 100 meters length, flat back color

l

Same Lot Reservation


Chemical A

Lot 0002

1000 Bags-50 kg

PH 6.5

Chemical A

Lot 0001

1000 Bags-50 kg

PH 5.6

Chemical A

Lot 0001

1000 Bags-50 kg

PH 5.6

Chemical A

Lot 0003

1000 Bags-50 kg

PH 6.0

Order: 100

kg. of

Chemical A

Trace Inventory Dimensions


Rework Orders


Batch 001

Product 1234

Latex Paint: White

A B C

Labor/OH $

Materials $

Rework Batch 001-1

Product 1234

Latex Paint: White

D E F

Labor/OH $

Materials $

Adding Co/By products on the fly…


Product 1234

Production

Batch

1000 HL

(planned)

Planned : 500 HL

Product A: Grade A

Planned : 500 HL

Product B: Grade A

Un Planned : 500 HL

Product C: Grade A

ADD

Approved Vendor List


Fresh Ingredients

Additives/

Chemicals

MRO

Supplies

Purchasing

Packaging

IT

Equipment

Office

Supplies

Material Regulatory Compliance


1. TSCA Section 8(a)

2. SARA Title III, Section 302, 304, 311, 312 & 313

3. OSHA Regulation 29 CFR 1910

4. WHMIS (Workplace Hazardous Materials Information System)

5. Various Environment Protection Agency (EPA) regulations.

Material Safety Data Sheets (MSDS) are typically used by the industry

to determine the health hazards and precautions for safe handling and use of

regulated materials.

Metal Bank : Commodity


750 Kilo Spool

Copper Content

$ Price per Kilo

Down Load Daily Prices Copper: Chicago Board Trade

Remove Value of Metals

Flexible Scheduling


• Finite or infinite capacity and materials scheduling

• Backward or forward scheduling

• Incorporation of recurrent items or rework

• What-if scenario analysis

• Daily view or hour/minute detail

Safety Stock


Shelf Life added to Master Planning


Vegetables: Lot 001

Quantity: 500 kg.


Vegetables: Lot 002

Quantity: 500 kg.


Vegetables: Lot 003

Quantity: 500 kg.


Time

ATP Vegetables

Quantity: 1500 KG Quantity: 1000 KG Quantity: 500 KG

Multisite


Site

• Geographic location

• Confined within company

• Linked to financial dimension

Warehouse

• Must be within site

• Unique within company

• Cannot be shared

• Hold inventory

Conclusion


Process Industries for Microsoft Dynamics AX can

Optimize production and business processes for increased profitability

Enhance and streamline formula, product, inventory, and supply chain

management

Help ensure a positive ROI and low TCO

Q&A


Page 33Page 33

This presentation contains information that is privileged, confidential or otherwise protected from disclosure. Any review, dissemination or use of this document or any of its contents by persons other than the company named is strictly prohibited.

Special Note Regarding Forward-Looking Statements

This presentation may contain “forward-looking statements” relating to, without limitation, future economic performance, plans, and objectives of Tectura Corporation for future operations and projections of revenue and other financial items that are based on the beliefs of, assumptions made by, and information currently available to Tectura Corporation. The words “expect,” “estimate,” “anticipate,” “believe,” “intend,” “plan” and similar expressions and variations thereof are intended to identify forward-looking statements. The cautionary statements in this presentation and the assumptions used in the preparation of the forward-looking statements identify and involve important factors with respect to such forward-looking statements, including certain risks and uncertainties, which could cause actual results or the benefits that Tectura Corporation might derive to differ materially from those expressed in or implied by such forward-looking statements.

www.tectura.com

Property of Tectura Corporation. This information is intended only for use of “company name inserted”.

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