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©2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be
registered trademarks and/or trademarks in the U.S. and/or other countries. Other names and brands may be claimed as the
property of others.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of
this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment
on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation.
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THIS CODE REMAINS WITH THE USER.
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UNIFYING THE PREVIOUSLY DISPARATE CONCEPTS OF LEAN, MRP, DISCRETE, AND PROCESS MANUFACTURING
ULRIK MØLGAARD HONORÉ
SESSION CODE : BRK233
SENIOR PROGRAM MANAGER
MICROSOFT CORPORATION
Today we will show you…
Unified concepts of lean, MRP, discrete, and process manufacturing
Mixed-mode manufacturing
How Microsoft Dynamics AX 2012 enables agility in a supply chain
How Microsoft Dynamics AX 2012 enables visibility across a supply chain
Intercompany
Components in Action Today
Lean
BOM / Route
Supply Chain Planning
Products
Vendor / Customer
Client
Public SectorServices SectorManufacturing Distribution Retail
Financials SCM Inventory Projects
CPM and GRC CRM HCM: HR & Payroll SRM
Horizontal Applications
Reference Data
Application Foundation
Master Data Application Primitives
Clients
Framework
Servers Tools
Technology Stack
Industry Sector Applications
Process
Period Template
Calendars
Pains and Challenges
Charlie – President• Needs supply chain agility to be able respond to changing
marketplace conditions and macroeconomic cycles
Vince – Operations Manager• Needs to continually improve operations efficiency – e.g.,
wants to gradually introduce lean manufacturing• Needs operations agility – e.g., wants ability to easily change
the supply policy for a product from build to buy
Eduardo – Production Planner• Needs master planning to work holistically in a multi-mode
manufacturing environment – e.g., plan material and resourcerequirements for both discrete and process manufacturing
• Needs full visibility into supply and demand across the supply chain
Unifying Manufacturing ConceptsProductionStrategy
ProductionControl
ProductionProcess
ProductStructure
Make to stockMake to order
Assemble to orderConfigure to order
ConvergentDivergent
Variant/Configurable
PushPull
DiscreteProcess
Product
Supply Policy
Pull /Push
Product Demos
# Title Key Features1. Supply policy and
supply visibility
Default order typeSupply schedule
2. BOMs and resources Reuse BOMs and resourcesacross supply policiesDynamic material andresource assignment
3. Intercompany planning and supply visibility
Intercompany supply policiesIntercompany planningIntercompany multilevel pegging
Product Structure with Supply Policies DefiningMulti-Mode
• A simple Bill of Materials• Adding supply policies
Kanban
Production
Purchase
Intercompany
Batch / process
Item A
Item B
Item C
Item D
Customer
Comp1
Comp2
Comp3
Supply Chain Using Multi-Mode
Item A
Item BItem C
Item C Item C
Item D
Item D
Item D
Kanban
Production
Purchase
Intercompany
Batch / process
Item A
Demo 1: Supply Policy and Supply Visibility
•Supply policy
•Supply schedule
•Kanban rules
Persona Pain Points and Challenges
Features Covered
Results and Benefits
Eduardo Changing the supply policy for a product – e.g., from build using production orders to build using lean
Default order type
Easy to set and modify how products are suppliedMore agile supply chain
Eduardo Visibility to supply and demand for a product across all supply policies
Supply schedule
Central navigation and overview for planner
With Microsoft Dynamics AX 2012
Concepts and Definitions
•Supply policies – Define how a product is supplied in Microsoft Dynamics AX 2012 –
We can supply products by production (discrete/process), purchase, kanban, and transfers
•Planned kanban order– A new planned order type introduced in Microsoft Dynamics AX 2012 – Carrier for derived demand through the LEAN process– Demand for a product with a scheduled kanban rule will generate a
planned order of type Planned kanban
Demo 2: BOMs and Resources
• Reuse of bill of materials and resources across supply policies
• Dynamic allocation of material and production resources based on production location and resource capability
Persona Pain Points and Challenges
Features Covered Results and Benefits
Emil Has little knowledge of where or how the product is produced. Difficult to maintain specific warehouse and resource information
Bill of materialsResource modelDynamic material and resource assignment and consumption
Material location and specific production resource decoupled from supply policyEnables supply chain agility
With Microsoft Dynamics AX 2012
Concepts and Definitions
•Resource consumption– Setting on the bill of materials, indicating that the ”where” of the BOM line is
dependent on where the product is produced, at what resource
– Will work across multiple supply policies
– If supply is a production order, the warehouse will be determined when the resource is
scheduled
– If kanban, the warehouse would be found from the work cell definition
Demo 3: Intercompany Planning and Supply Visibility•Intercompany supply policies•Intercompany master planning•Intercompany supply visibility
Persona Pain Points and Challenges
Features Covered Results and Benefits
Eduardo Supply and demand visibility across companies
Multilevel pegging
Very easy to get supply and demand overview
Eduardo Master planning across companies
Intercompany planning
Products can be supplied based on individual company needs
With Microsoft Dynamics AX 2012
What We Showed Today…
• How Microsoft Dynamics AX 2012 unifies disparate supply policies into an integrated supply chain
• How Microsoft Dynamics AX 2012 flexibility enables agility in the supply chain
• How Microsoft Dynamics AX 2012 provides visibility into supply and demand across a supply chain
With This Release You Now Can…
• Have a fully integrated supply chain that uses multiple supply policies
• Minimize the complexity of your data setup by reusing BOMs and resources across multiple supply policies
• Gain visibility into supply and demand across a supply chain that uses multiple supply policies
• Evolve your supply chain by gradually introducing new supply policies – e.g., introduce lean manufacturing
What Did We Do in This Release?
• Integrated support for discrete, process, and lean manufacturing using push or pull– Support multi-/mixed-mode manufacturing
– Provide enhanced MES capabilities
• Created a capabilities-based model for resource definition and scheduling that is unified across discrete, process, and lean
• Enhanced planning and visibility across an intracompany and intercompany supply chain
• Enhanced reuse of BOMs and routes
• Created a constraint-based product configuration tool
Top 10 Tips from the Session
• One supply chain, independent of supply policy
• Production strategy, control, process, and structure can be defined independently
• Resources defined once, used in LEAN, Process, Production, MES
• Visibility cross whole supply chain / legal entities
• Intercompany for planned demand and supply
• Product configurator across legal entities, only release selling item
• Reuse BOM definition independent of strategy, control, process,and structure
Related SessionsTime Monday Tuesday Wednesday
10:30–11:45
13:00–14:15
14:30–15:45
16:30–17:45
18:00–19:00
19:15–20:15
BRK233Unifying the previously disparate concepts of Lean, MRP, Discrete,
and Process Manufacturing
Ulrik Molgaard Honore
BRK232Product Information
Management
Ievgenii Korovin
BRK235Materials Planning & Resource Scheduling – A New Approach
Anders Sorensen ; Soren Vagn AndersenCHK202
Upgrading items to products
Ievgenii Korovin
BRK250Introduction to the basics of Lean Manufacturing for Dynamics AX 2012: Kanban framework and
replenishment strategies.Conrad Volkmann; Guido Rennock
BRK246Purchase Order Management
Henrik Andersen; Kenneth Puggaard
CHK221MRP fundamental changes
Anders Sørensen, Roxana Diaconu
CHK209Cost Management Processes in
Dynamics AX 2012
Anders Even Girke
CHK210Materials Planning and Resource
Scheduling – A New Approach Q&A
Anders Sorensen ; Soren Vagn AndersenBRK234
Configuring Products Using the Constraint-Based Approach
Dennis Conrad
CHK203Manufacturing Scheduling
Engine Diagnostics
Anders Sørensen
CHK219Product Configuration – Deep
Dive from a Developer Viewpoint
Dennis Conrad, Najimi Sebghatullah
BRK247Sales Order Management and
Agreements
Henrik Andersen; Kenneth PuggaardBRK251
Introduction to advanced scenarios of Lean Manufacturing
for Dynamics AX 2012: Production flows and activities
Conrad Volkmann; Guido RennockBRK236
Manufacturing Execution and Time & Attendance
Ulrik Molgaard Honore
BRK244Dynamics AX 2012 Process
Manufacturing
Johan Hoffmann
Visit our Focus Rooms
Public SectorServices
IndustriesManufacturi
ngSolution
ArchitectureRetail
• Evaluation of Implementation Proposals by Dynamics AX R&D Solution Architecture & Industry Experts
• Gain further insights on Dynamics AX Industry Solution Offerings
• Resolution Guidance on Solution Roadblocks
• Networking
Focus Topic HighlightBusiness Intelligence
Tuesday 2.15pm – 5.45pmRisso 6C
Risso 8ARisso 7BRisso 7ARisso 6CRisso 6A/B
© 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows 7 and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the
date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.