Juice production. Dynamics 365 for Finance and Operations

Transcription

1 Juice production The document takes you through a high-level end-to-end make-to-order flow for a process manufacturer in the food and beverage industry. Demo script May 2018 Send feedback. Learn more about Finance and Operations. Dynamics 365 for Finance and Operations

2 Contents Target audience 3 Demo scenario 3 Overview 4 The processes 4 The products 4 Suggestions for a lightweight demo 4 Demo step-by-step 5 Before you begin 5 Demo 1: Planned orders for product P Demo 2: Confirming and receiving purchase orders 10 Demo 3: Producing product P Demo 4: Producing and inspecting product P Demo 5: Producing and inspecting product P Demo 6: Producing and inspecting product P Demo 7: Delivering product P Juice production 2

3 Juice production This document shows how to create a demo for a high-level end-to-end make-to-order flow for a process manufacturer in the food and beverage industry. Target audience The script in this document should be used to demonstrate the value of Microsoft Dynamics 365 for Finance and Operations to a business decision maker (BDM). The script uses the PIFB legal entity, which is a manufacturer of orange juice. This legal entity uses data that is related to the following activities: Defining formulas Substituting ingredients Running bulk process manufacturing Using containerized packaging Registering batch information for bulk production Requiring First Expired, First Out (FEFO)/shelf-life control Demo scenario The script focuses on the following processes: Satisfying the safety stock of juice and procuring raw materials: The end-to-end flow starts with the following steps: Orders are planned. There will be planned orders to satisfy the safety stock of the products. These products have an expiration date. After orders are planned, master planning makes sure that there are planned purchase orders and production orders so that the safety stock can be satisfied. We will follow the process to produce the first safety stock of juice, product P9000. Shelf life is controlled for raw materials and, eventually, for finished products. Raw materials that were purchased are received, and automatic batch allocation helps guarantee that production can start. Production of juice and frozen concentrate: The production process includes the following steps: Production that is done in bulk is batch-tracked. Packaging is containerized. This step is the final step of the production process. Quality orders are generated. Updating quality orders after production: As part of completing juice production, quality assurance is done to measure and update batch attributes. Delivering the juice that was ordered and invoicing the customer: At a minimum, completion of the end-toend flow requires delivery of the juice that was ordered. For this step, the sales order is delivery-updated, and automatic reservation of the batch is done. Juice production 3

4 Overview The processes The PIFB company represents Contoso Orange Juice, an American juice manufacturer. This company extracts the juice from oranges from Florida, and then sells and distributes Contoso orange juice in three states. Four main processes are enabled in PIFB: Extracting concentrate from fresh oranges (P6000) Mixing the concentrate inline to produce orange juice (P7000) Producing frozen juice concentrate and filling/packing it (P8000) Reconstituting juice concentrate and filling/packing it (P9000) Besides producing finished products that are mentioned in the preceding list, Contoso Orange Juice has two sellable co-products: Orange pulp (P6001) Extracted orange peel oil (P6004) The products For all raw materials and finished products, shelf life is enabled, and quality associations are set up for products P7000, P8000, and P9000. Therefore, users must specify attribute values for the batches after they report the production orders as finished. Product P9000 represents a three-level formula item, because you must first extract product P6000, then mix product P6000 with water to get product P7000, and then reconstitute product P7000, adding additives and sugars, to get product P9000. Although this demo script doesn t explicitly showcase ingredient substitution, planning groups are assigned to the formula for product P9000 to show how ingredients are grouped for substitution when inventory doesn t exist for an ingredient. Suggestions for a lightweight demo Although product P9000 might seem to be a slightly complex product, it represents a realistic product setup. If you want to minimize the demo steps, you can showcase one of the following products instead: P6000: In this case, the demo will show how the batch-controlled/shelf life controlled oranges are used to make concentrate. Batch numbers are automatically assigned when products are picked for the production order. Although there is no quality control of this product, you will see that the production process also produces several co-products. Juice production 4

5 To run this demo, follow the steps in these parts of the script: Demo 1: Planned orders for product P9000 (but change the product number to P6000) Demo 2: Confirming and receiving purchase orders Demo 3: Producing product P6000 Demo 7: Delivering product P9000 (but change the product number to P6000) P7000: In this case, the demo will show how to use batch/shelf life. As for product P6000, the system is set up to automatically pick and consume the batches for the production order. However, because of the inline mixing of the concentrate, quality control is enforced, and you must validate the results of the attribute measurements. To run this demo, follow the steps in these parts of the script: Demo 1: Planned orders for product P9000 (but change the product number to P7000) Demo 2: Confirming and receiving purchase orders Demo 3: Producing product P6000 Demo 4: Producing and inspecting product P7000 Demo 7: Delivering product P9000 (but change the product number to P7000) Demo step-by-step Before you begin This script assumes that there is a safety stock of 1,000 units of product P9000 (100% Orange Juice from Concentrate). Product P9000 is an organic product that has an expiration date. Therefore, planned orders will be placed to keep a constant, non-expired safety stock of product P9000. The script shows all the steps that are required in order to make sure that the first safety stock of product P9000 is produced. The script also assumes that shelf-life restrictions are applied to all raw materials and finished products. The shelf-life restrictions vary from 30 days for finished products to 180 days for additives and sugars. The system automatically writes the shelf advice date, the best before date, and the expiration date. However, you will learn how to change these dates. At the end of the script, you might want to reflect on the fact that you neither settled and paid the purchase orders, nor sent an invoice for the product P9000 that was delivered. This script is focused solely on the process steps for juice production at Contoso Orange Juice, not on financials (although those financials might be interesting). Juice production 5

6 Demo 1: Planned orders for product P9000 Scenario and background To follow the planned orders and the production process to fulfill the satisfaction of the safety stock, you will run master planning and see how the orders for product P9000 (100% Orange Juice from Concentrate) are automatically placed. Eduardo, the production planner, will complete this task. You will also start production of the first planned order. Note: This demo requires that formula For be activated. Before you start the demo, go to Product information management > Products > Released products, and select product P6000. Then, on the Action Pane, on the Engineer tab, select Formula versions, and make sure that formula For has been activated and is used for calculations. You re now ready to start the demo. 1 Sign in as Eduardo, the production planner. (For the sake of simplicity, you can sign in as Administrator.) 2 Go to Master planning > Run > Master planning. 3 In the Master plan field, select the plan that is named Master Plan. 4 Select OK to run the scheduling. Juice production 6

7 5 Go to Master planning > Common > Planned orders. Note: Another fast way to run master planning is to use the Master planning workspace. a Select the button for the workspace on the Finance and Operations main page, or enter master planning in the search field. The Master planning workspace appears. Note that no orders are shown if master planning hasn t previously been run. b On the Master planning tile on the left side of the workspace, select Run. c After master planning has run, select the Planned orders tile to view all the orders. On the Planned orders page, you can see all the planned orders that have been scheduled to satisfy the safety stock of product P9000. Next, the demo will show the steps to produce the first order of product P9000. First, you must learn which batches are included in this order. Juice production 7

8 6 Select the planned order for product P9000 that has the earliest delivery date. 7 On the Action Pane, on the View tab, select Explosion. You see that production of product P9000 requires product P8000. Juice production 8

9 8 Expand the node for product P8000. You see that the production of product P8000 requires products P6000 and P7000. Note that P6000, P7000, and P8000 are planned batched orders that you will have to produce. Juice production 9

10 9 On the Action Pane, select Planned orders. 10 Select all the lines in the grid by selecting the check mark next to the heading for the Number column. 11 On the Action Pane, select Firm. 12 Select OK. The formula for product P9000 refers to the formula for products P7000 (Concentrated Orange Juice Extract), P8000 (Frozen Concentrate Orange Juice), and P6000 (Pure Orange Juice Extracted). Therefore, to fulfill the demand for product P9000, you must first produce those products to get the concentrate that can be reconstituted. From the Planned orders page, you can view all the purchase orders or production orders that are required in order to eventually produce product P9000, the juice from concentrate. To produce product P9000, additional raw materials are required and must be purchased first. (The lines that have planned purchase orders represent these additional raw materials.) Note: To view the planned purchase orders separately, go to Procurement and sourcing > Purchase orders > Planned purchase orders. To view the planned production orders separately, go to Production control > Production orders > Planned production orders. Demo 2: Confirming and receiving purchase orders Scenario and background The person who is involved in the demo 2 is Alicia, the purchasing agent. She will be responsible for following up on the planned purchase orders from demo 1. The demo will continue with the production of the first planned order for production P9000. Juice production 10

11 Alicia will make sure that the raw materials are purchased and arrive, so that production can start. 1 Switch your role to Alicia. (For the sake of simplicity, you can sign in as Administrator.) 2 Go to Procurement and sourcing > Purchase orders > Purchase order entry > Purchase orders not sent. (Alternatively, enter Purchase orders not sent in the search field at the top of the page.) On the Purchase orders not sent page, Alicia has an overview of the purchase orders that were previously firmed, planned, and approved, but that she must still confirm with the vendors. 3 Select all the purchase orders in the grid by selecting the check mark next to the heading for the Purchase order column. Then, on the Action Pane, on the Purchase tab, in the Actions group, select Confirm. 4 In the message box, select OK to confirm that you want to confirm the purchase order. After purchase order confirmation, Alicia will await the arrival of the raw materials. Sammy in shipping and receiving will update the arrival of these raw materials. As a shortcut in this demo, Alicia herself will do the product receipt update for the selected purchase orders. 5 Go to Procurement and sourcing > Purchase orders > All purchase orders. The newly confirmed purchase orders appear at the bottom of the grid of purchase orders, and they have an approval status of Confirmed. Next, you must do the product receipts for every purchase order. 6 Select the first confirmed order by selecting the check box for the line. 7 On the Action Pane, on the Receive tab, in the Generate group, select Product receipt. Juice production 11

12 8 In the Product receipt field, enter a value. 9 Select OK to post the product receipt. 10 Repeat steps 6 through 9 for the remaining open purchase orders. Notes: The purchase order status will be changed from Open order to Receive. You can also generate the product receipt of multiple orders at the same time. Select the orders, and then, on the Action Pane, on the Receive tab, in the Generate group, select Product receipt, as shown in the following illustration. The system has been set up to automatically allocate batch numbers with the use of a batch number group. Therefore, expiration dates and shelf dates are automatically assigned to all the products when the product receipts are posted. To see and change the dates, follow the steps: 1 Go to Procurement and sourcing > Purchase orders > All purchase orders. 2 Select the number of the purchase order. Juice production 12

13 3 Select the item number that you want to view the expiration date or shelf date for. (If the product information page appears, select the item number again to view the details of the item.) Demo 3: Producing product P6000 Scenario and background In demo 3, Tony, the production manager, will start the scheduled production order for product P6000, which is the sub-production that is used to produce product P7000. Typically, Shannon, the machine operator, picks up production jobs and reports them as finished. But to make the demo easier, Tony will report the production order as finished in sequence. In this way, Ricardo, the quality controller, can do the final measurements of the batch attributes and update those attributes before the production orders are ended. 1 Switch your role to Tony. (For the sake of simplicity, you can sign in as Administrator.) 2 Go to Production control > Production orders > Productions scheduled to find the newest production orders that are scheduled for products P6000, P7000, and P9000. Note: If you firmed all the planned orders earlier, not just the planned orders that are relevant to the first batch of product P9000, you can view the relevant batches in the same way: select the earliest batch of product P9000, and then, on the Action Pane, on the View tab, select Explosion. 3 Select the production order for product P6000, and click to open the order. Juice production 13

14 4 In the Date scheduled field group, make a note of the value of the Start date field. 5 On the Action Pane, on the Production order tab, in the Process group, select Start. 6 In the Start dialog box, on the General tab, in the Start field group, make sure that the Date field is set to the Start date value from the Production order details page. Note: In the dialog box, make sure that the Post picking list now option is set to No, because you will have to manually pick the batches for the production order for product P6000 when you start the production and report it as finished. 7 Select OK to start the production order. 8 Close the message that you receive. After the actual start of the production, Tony must pick the raw materials to use for it. Because you didn t select to automatically update the picking list when the order was started, Tony manually update the picking from the picking list journal. 9 On the Production order details page, on the Action Pane, on the View tab, in the Journals group, select Picking list to open the production journal so that you can pick the raw material batches. 10 In the Lines section of the production journal, you can see that the system has proposed non-expired batches. (If the system doesn t propose the batch number, you can select it by selecting the order, selecting Edit, and then selecting the desired batch among the options that are provided.) Juice production 14

15 11 On the Production journal details page, on the Action Pane, on the Production Journal tab, select Post to post the picking list for the production order. 12 In the Post journal dialog box, select OK. 13 Close the new dialog box. 14 Close the journal. 15 On the Production order details page (Production control > Production orders > All production orders), on the Action Pane, on the Production order tab, in the Process group, select Report as finished. Note: Once again, dates are very important when the production order is reported as finished. 16 In the Report as finished dialog box, on the Default values tab, set the Date reported as finished field to the end date that is scheduled on the production order. 17 Select OK to report the production of product P6000 as finished. 18 On the Production order details page, on the Action Pane, on the Production order tab, in the Process group, you can select End to end the production for P In the dialog box, on the General tab, make sure that the date matches the end date of the production order. 20 Select OK to end the production. Juice production 15

16 Demo 4: Producing and inspecting product P7000 Scenario and background Now that the juice has been extracted from the raw oranges, Tony can start the production for product P7000. During this production the extracted juice is turned into concentrate. Tony will go through the same basic steps that he went through to produce product P6000. The only difference is that a quality check is required for P7000 batches, to determine the brix value of the concentrate. 1 Go to Production control > Common > Production orders > All production orders. 2 Select the production order for product P7000, and click to open the order. 3 In the Date scheduled field group, make a note of the value of the Start date field. 4 On the Action Pane, on the Production order tab, in the Process group, select Start. 5 In the Start dialog box, on the General tab, in the Start field, group, make sure that the Date field is set to the Start date value from the Production order details page. 6 Select OK to start the production order. 7 Close the message that you receive. Juice production 16

17 8 On the Production order details page, on the Action Pane, on the View tab, in the Journals group, select Picking list open the production journal. You don t have to pick the batches manually, because the system has automatically picked them. You also don t have to post the lines. Note: Either for fun or just to double-check, try to pick an expired batch, You will receive an error message and won t be able to select the expired batch. 9 Close the journal. 10 Select the order, and then, on the Action Pane, on the Production order tab, in the Process group, select Report as finished. 11 Select OK. The production order for product P7000 has been finished. Ricardo will now do a quality check on the order. 12 Switch your role to Ricardo. (For the sake of simplicity, you can sign in as Administrator.) 13 Go to Inventory management > Periodic tasks > Quality management > Quality orders to start to work on the quality orders. 14 In the list, select the quality order for product P7000 that has a status of Open. Juice production 17

18 15 In the lower part of the Quality orders page, select Results to enter the measurement results for the attributes that are associated with the batch of product P7000 that was produced. 16 On the Action Pane, select Edit. 17 In the Result quantity field, enter In the Test result field, enter On the Action Pane, select Validate to register the measurement results. Juice production 18

19 20 Close the page. Note: You can play with the test result value and try to enter different values. The system will validate the values against the test ranges for the batch attribute. You can find these test ranges on the Test tab in the lower part of the Quality orders page. 21 On the Quality orders page, on the Action Pane, select Validate to verify that all values are within allowed boundaries. 22 To complete the validation, select the user who validated the quality order. 23 Verify that the order has now the status Pass 24 Select OK to close the quality order and implicitly end the production order for product P Close the message that you receive. Juice production 19

20 Demo 5: Producing and inspecting product P8000 To produce product P9000, you also need product P8000. Therefore, product P8000 must be produced before product P9000. Therefore, you will next produce the scheduled order of product P Go to Production > Production orders > All production orders. 2 Select the order of product P8000 that has a status of Scheduled. 3 On the Action Pane, on the Production order tab, in the Process group, select Start to start the order. 4 In the Start dialog box, select a start date. 5 Select OK. 6 Select the order, and then, on the Action Pane, on the Production order tab, in the Process group, select Report as finished. 7 Select OK. 8 Switch your role to Ricardo. (For the sake of simplicity, you can sign in as Administrator.) 9 Go to Inventory management > Periodic tasks > Quality management > Quality orders to start to work on the quality orders. 10 In the list, select the quality order for product P8000 that has a status of Open. 11 In the lower part of the Quality orders page, select Results to enter the measurement results for the attributes that are associated with the batch of product P8000 that was produced. 12 On the Action Pane, select Edit. 13 In the Result quantity field, enter In the Test result field, enter On the Action Pane, select Validate. 16 To complete the validation, select the user who validated the quality order. 17 Select OK. 18 Close the Quality orders page. Juice production 20

21 Demo 6: Producing and inspecting product P9000 Scenario and background Now that the batches that are required have been produced and the components that are required have been purchased, Tony is finally ready to start the production for product P9000. The P7000 batch must be released from quality inspection before Tony can pick it for the P9000 production. Because Tony is an experienced production manager and has already gone through the production steps for products P6000 and P7000, demo 6 closely resembles demos 4 and 5, except Ricardo must measure different batch attributes for the P9000 batch. 1 Go to Production control > Common > Production orders > All production orders. 2 Select the production order for product P9000, and click to open the order. 3 In the Date scheduled field group, make a note of the value of the Start date field. 4 On the Action Pane, on the Production order tab, in the Process group, select Start. 5 In the Start dialog box, on the General tab, in the Start field group, make sure that the Date field is set to the Start date value from the Production order details page. 6 Select OK to start the production order. 7 Close the message that you receive. 8 On the Production order details page, on the Action Pane, on the View tab, in the Journals group, select Picking list open the production journal. You can see that the system has automatically picked the batches. 9 Close the journal. Juice production 21

22 10 On the Production order details page, on the Action Pane, on the Production order tab, in the Process group, select Report as finished. Note: Once again, dates are very important when the production order is reported as finished. Set the Date reported as finished field to the end date that is scheduled on the production order. 11 Select OK. After the Report as finished journal is posted, you receive a message that informs you that a quality order has been created. 12 Close the message. Ricardo will now be responsible for the quality order for batch of product P Switch your role to Ricardo. (For the sake of simplicity, you can sign in as Administrator.) 14 Go to Inventory management > Periodic tasks > Quality management > Quality orders to start to work on the quality orders. 15 In the list, select the quality order for product P9000 that has a status of Open. 16 In the lower part of the Quality orders page, select Results to enter the measurement results for the attributes that are associated with the batch of product P9000 that was produced. 17 Select the Acidity line, select Results, and then select Edit. For the Acidity attribute, in the Result quantity field, enter 1. In the Test result field, enter Select the Viscosity line, and then select Results, and then select Edit. For the Viscosity attribute, in the Result quantity field, enter 1. In the Test result field, enter 4.7. Juice production 22

23 19 On the Action Pane, select Validate to register the measurement results. 20 Close the page. 26 On the Quality orders page, on the Action Pane, select Validate to verify that all values are within allowed boundaries. 21 To complete the validation, select the user who validated the quality order. 22 Select OK to close the quality order and implicitly end the production order for product P9000. Demo 7: Delivering product P9000 The production of a quantity of 1,000 as the safety stock for product P9000 has been completed. Your company can now have a higher responsiveness to customers and process their orders. Susan, the order processor, is creating a sales order for customer US-027 (Birch Company). The order is for product P9000 (100% Orange Juice from Concentrate). This demo will show the steps that are required in order to create a sales order for a customer. The quantity of the sales order will be less than the stock that is available. Therefore, the available stock will be used to satisfy the upcoming demand. 1 Switch your role to Susan. (For the sake of simplicity, you can sign in as Administrator.) 2 Go to Sales and marketing > Sales orders > All sales orders. Juice production 23

24 3 On the All sales orders page, select New, and then, in the Create sales order dialog box, select customer US On the Delivery FastTab, in the Requested receipt date field, select a date. 5 Set the Confirm dates option to Yes. Note: By setting this option to Yes, you avoid having to print a sales confirmation. 6 Select OK to create the sales order header. 7 On the Sales order page, in the Sales order lines section, in the Item number field, enter P In the Quantity field, enter 520. Note: The production of orange juice takes approximately five days. If product P9000 isn t in stock, the requested receipt date must be the system date plus six days, so that the product can be produced. 9 Select Save. The sales order is already in the system. You will now reserve products for the order. 10 On the All sales orders page (Sales and marketing > Sales orders > All sales orders, select the latest sales order for customer US-027 (Birch Company), and click to open the order. Juice production 24

25 11 On the Line details FastTab, on the Setup tab, change the value of the Reservation field from Manual to Automatic, so that you don t have to manually reserve against the batch of juice that was produced for product P On the Action Pane, on the Pick and pack tab, in the Generate group, select Post packing slip. 13 In the Packing slip posting dialog box, on the Parameters FastTab change the value of the Quantity field to All. 14 On the Setup FastTab, set the Packing slip date field. (Remember that the production of product P9000 takes approximately five days. If product P9000 isn t already produced, the date that you enter should be the system date plus six days.) Juice production 25

26 15 Set the Posting option to Yes, but set the Print packing slip option to No. 16 Select OK. 17 Close the dialog boxes and pages. 18 Go back to Sales and marketing > Common > Sales orders > All sales orders. 19 Find the newest order for customer US-027 (Birch Company). 20 Verify that the status of the order is now Delivered. You ve now successfully completed the delivery of product P9000. You ve delivered as promised in the time that was agreed on, and therefore have another happy customer. Juice production 26

27 Send feedback. Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like and with familiar Microsoft software, automating and streamlining financial, customer relationship, and supply chain processes in a way that helps you drive business success. United States and Canada toll-free: (888) Worldwide: (1) (701) Microsoft Corporation. All rights reserved. This document is provided as-is. Information and views expressed in this document, including URL and other Internet Web site references, may change without notice. You bear the risk of using it. Some examples are for illustration only and are fictitious. No real association is intended or inferred. This document does not provide you with any legal rights to any intellectual property in any Microsoft product. You may copy and use this document for your internal, reference purposes.