Process Industries Process Industries for Microsoft DynamicsTM AX

Process Industries Process Industries for Microsoft DynamicsTM AX

Real business benefits for process manufacturers Improved coordination and performance Function more smoothly, respond more quickly to changes, and cooperate more effectively to achieve your business goals with everyone working to the same plan, using the same information, and focusing on the same objectives. Streamlined and efficient production and delivery Become competitive and effective through real-time visibility and management of production and distribution processes. Better, faster decisions Process Industries for Microsoft DynamicsTM AX gives you real-time access to the information you need to make better decisions more quickly. Increased agility Gaining control of your business processes and understanding shifts in demand, the competition, and the market enables you to respond quickly and effectively when conditions change. Reduced risk Understanding your business commitments, the status of production, and the impact of the challenges you face helps you minimize your company s exposure. Lower total cost of ownership (TCO) With integrated functionality, ease of use, and effective use of computing resources, Process Industries for Microsoft Dynamics AX helps your company deliver impressive results while keeping operating and maintenance costs to a minimum. Improved profits Better understand your customers requirements and the real status of your business to more effectively control costs, deploy resources, and improve delivery performance, helping you to drive more profit to the bottom line.

A solution tailored specifically for process industries Process manufacturers are faced with many challenges. Companies strive to reduce production and supply chain costs, achieve almost perfect delivery performance, and satisfy an avalanche of regulatory requirements just to remain competitive. Many process manufacturers wrestle with the additional complications of managing a combination of process and discrete operations and accounting for materials from delivery into manufacturing and out through the supply chain to the customer. Staying ahead of the competition means you must effectively and effi ciently manage all the variables involved in engineer ing and delivering products that follow custom formulas or recipes and making best use of your manufacturing and supply chain capabilities. Process Industries for Microsoft Dynamics AX helps you to continually improve business processes throughout your organization while meeting environmental and maintaining product and production safety requirements, and achieving your profi tability objectives. OPTIMIZE

Increase the speed and flexibility of your process manufacturing operations Process Industries for Microsoft Dynamics AX provides integrated functionality for planning and managing production and distribution, handling procurement and accounting, and complying with regulatory requirements. It manages and maintains key production information the same way you run your business and specifi cally to support the unique requirements of process manufacturing. Some of the key industry-specific capabilities of Process Industries for Microsoft Dynamics AX are: Co-product and by-product planning and management Recipe and formula management Quality management and quality control Lot traceability and product serialization Regulatory compliance Process costing First expired/first out (FEFO) and shelf life inventory management Product containerization and multiple inventory dimensions Process Industries for Microsoft Dynamics AX supports a range of manufacturing processes, including make to order, make to stock, or mixed mode, a hybrid environment that enables both discrete and process requirements to coexist. Your company can integrate production processes to build a fl exible solution that fi ts your needs. Manage materials and items with multi-dimensional inventory structures Every manufacturer must plan production, purchase and manage materials, execute the manufacturing plan, and deliver products to its customers. Process manufacturing, however, requires a unique set of capabilities, including the management of co-products and by-products, the necessity for multiple packaging confi gurations, lot traceability, and shelf life management. Process Industries for Microsoft Dynamics AX helps you to track and manage materials while taking into account the complexities of multiple inventory characteristics such as weight, container type, and expiration date. In addition, you can defi ne, manage, and cost multiple outputs, such as coproducts and by-products, from a single production process. MANAGE

Work with simplified but flexible packaging configurations Process manufacturers are often required to package their products to meet unique customer expectations and regulatory standards for local markets. For example, engine oil is sold in quarts in the United States and in liters in other countries. Some countries or local markets require or expect over-the-counter pharmaceuticals in 12-unit blister packs, while others require 8-unit packs. Process Industries for Microsoft Dynamics AX can eliminate the complexity of managing these variations and allow you to focus on the real issues of marketing and selling your products. With Process Industries for Microsoft Dynamics AX, you can defi ne a single product number and formula for all packaging confi gurations of an end item, dramatically simplifying product codes. A two-level formula structure enables you to maintain unique packaging components for each packaging type assigned to the main formula. Process Industries for Microsoft Dynamics AX carries this capability one step further, helping you to accept multiple customer orders in various packaging confi gurations and consolidate them into a single production batch. When the batch has been produced, you can then package the product in the confi gurations required to meet the original customer orders.

CONNECT

Improve connectivity and communication within your company and with customers and trading partners Accurate, timely information is key for world-class process manufacturers, helping companies to function effi ciently and respond effectively to customer requirements. With Process Industries for Microsoft Dynamics AX, employees can share real-time information among the sales, planning and scheduling, quality control, delivery, and customer service departments to streamline buying, selling, and production decisions. With access to up-to-date data, managers and employees can make changes and adjustments more quickly and reach better, more informed decisions. With Process Industries for Microsoft Dynamics AX, you can communicate rapidly and clearly with customers and trading partners by using the Internet. Your customers can contact you around the clock and around the world to place orders, track shipping status, and receive online product information. Sales and customer services can respond quickly to queries about product availability, communicate certifi cate of analysis information, and quickly provide order status and delivery updates. By providing trading partners with insight into your production process, you can give them the information they need to better meet delivery dates or rapidly alert you to changing market conditions. Gain real-time insight into performance status and costs With change the only constant in process manufacturing, you need up-to-date information about what you re producing, available inventory, and process costs to manage production resources effectively and meet customer demand. Process Industries for Microsoft Dynamics AX lets you view and manage information at the level of detail you need, when you need it. To manage production and inventory to achieve maximum profi tability, you need an overall status view. You also need to be able to drill down to the details of individual item availability, production activities, and employee performance so that you can match quantities and grades of product to specifi c customer orders, ensure on-time deliveries, and understand the fi nancial impact of manufacturing certain co-products and by-products.

Respond quickly to changing market conditions Capitalize on new opportunities and respond appropriately to changing market conditions by using Process Industries for Microsoft Dynamics AX to fi ne-tune your plans, processes, packaging, and product mix. By using the up-to-date information provided by Process Industries for Microsoft Dynamics AX, you can evaluate whether to accept a new order or handle a new product with existing capacity. Process Industries for Microsoft Dynamics AX helps you to evaluate various product mixes and production scenarios with what-if planning. By gaining insight into capacity planning and operational costs, you can adjust production or move into new markets with confi dence. You can also help compliance with a range of regulatory requirements, including safety and environmental regulations, by quickly validating manufacturing processes. Your company can operate successfully across countries and in different languages and curren cies, while conforming to the legal and market requirements of individual markets. DELIVER

A proven solution developed on a reliable and secure platform When you deploy Process Industries for Microsoft Dynamics AX, you can take advantage of an integrated business solution enhanced by industry-specifi c functions, convenient global support, and a lower total cost of ownership (TCO) right from the start. Process Industries for Microsoft Dynamics AX combines a proven, tested business management solution platform with powerful process manufacturing and distribution capabilities. With Process Industries for Microsoft Dynamics AX, you can expect a familiar user experience, one that looks and works like other Microsoft applications and exploits the capabilities of the full range of Microsoft products, including Microsoft Offi ce Word 2003. Close integration with powerful Microsoft technologies such as Microsoft SQL ServerTM 2000, Microsoft BizTalk Server 2004, and Microsoft Internet Information Services 6.0 maximizes your IT investments. As your business changes, you can always take advantage of the fl exibility and scalability built in to Process Industries for Microsoft Dynamics AX to expand operations or extend your solution. A layered architecture lets you customize one tier without affecting functionality on others, reducing the potential risk of customization and upgrades while ensuring a long-term solution with a lower TCO. You can also look forward to quicker payback on your invest ment. According to a research study by Nucleus Research, Inc. conducted in 2004, 75 percent of participating Microsoft Dynamics AX [formerly known as Microsoft Business Solutions Axapta ] customers achieved a positive ROI within an average of only 23 months. 1 The remainder had used Microsoft Dynamics AX for periods of less than two years and expected to achieve a payback within a few more months. More than half of respondents reduced staffi ng costs as a direct result of their Microsoft Dynamics AX deployments, while 44 percent reduced IT costs in moving from their legacy systems. Other positive results cited in the study ranged from more inventory turns and improved delivery times to productivity gains and increases in working capital. 1 Nucleus Research, Inc. The Real ROI from Axapta. Research Note E116, October 2004.

Process Industries Functionality Backed by support you can count on First Expired/First Out Shelf Life Management Supply Chain Management Lot Traceability and Serialization Production Process Definition and Mgmt Approved Vendor Management The reliability, connectivity, and performance of this comprehensive solution are backed by Microsoft quality assurance and support. To provide high quality and excellent value, Process Industries for Microsoft Dynamics AX has been reviewed by Microsoft s internal Process Inventory Management development and quality assurance staff and is supported by Microsoft Support Services globally. This means that you can count on the overall assurance of receiving support Catch Weight/ Dual Units of Measure Process Item Costing Multi-dimensional Inventory Capability Container Management for your entire solution from one place, rather than having to contact different people and organizations for different support needs. In addition, technical review of the solution Formula Management prior to launch and throughout the product life cycle helps greater overall quality, performance management, and stability through service packs or major releases. Formulation Definition Quality Control Process Item Management Batch Creation and Management Quality Management Quality Assurance Co-Products and By-Products Enhance your business management systems with industry-specific capabilities Process Industries for Microsoft Dynamics AX can provide your company with the capabilities you need to optimize your manufacturing processes as shown in this solution map. Microsoft Dynamics AX Core Functionality Business Analysis SCM Enterprise Portal CRM Human Resource Management Financial Management Process Industries for Microsoft Dynamics AX can integrate your entire process manufacturing life cycle with the Microsoft Dynamics AX business management functionality to help your company increase efficiency, enhance the flexibility of your process control and become more competitive.

Realize measurable benefits across your business Process Industries for Microsoft Dynamics AX helps provide the fl exibility you need to support a wide range of process and hybrid manufacturing activities and environments. By using Process Industries for Microsoft Dynamics AX you can improve production performance, streamline supply chain processes, improve quality and traceability, and capture and evaluate actual manufacturing costs. Process Industries for Microsoft Dynamics AX gives you powerful tools to help streamline your internal business processes, reduce costs, and increase earnings. By exploiting built-in fl exibility and scalability, you can adapt to changing requirements as you pursue new and bigger opportunities. Process Industries for Microsoft Dynamics AX helps you to identify the real costs of products or services and connects you to your customers to help turn your service into a competitive advantage. With the big picture backed by detailed information, you can set competitive pricing, increase market share, and improve profi tability. PERFORM Real Results Process Industries for Microsoft Dynamics AX can provide results that show up on your bottom line, as shown in the following table. Value Opportunity Range Enabler IT maintenance Reduce by up to 40% Improved ease of use; reduction in systems management and support costs requirements and in-house support; reduced maintenance and upgrade costs Order lead times Reduce by up to 35% Better visibility of on-hand and in-process inventory; more efficient production; shelf life management and first expired/first out (FEFO) inventory management Work-in-process Reduce by up to 30% Reduced production cycle times; increased utilization; inventories improved routing and scheduling accuracy Obsolete, expired, Reduce by up to 30% FEFO inventory management, shelf life management or perishable inventory Changeover and Reduce by up to 20% Better order sequencing and batch management; improved set up times visibility of production setup and changeover requirements Finished goods Reduce by up to 25% Overall reduction in cycle times; improved order accuracy inventory and forecast accuracy Planning cycle time Reduce by up to 80% Weekly, daily, and hourly supply/demand netting; what-if planning and simulation; improved granularity of resource constraints by formula, dimension, or other attributes Forecast accuracy Improve by 5 to 15% More complete and accurate order data; integrated forecast netting against inbound orders and rework orders Temporary labor Reduce by up to 25% Greater visibility of actual production requirements; requirements improvement in planning accuracy

This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. 2006 Microsoft Corporation. All rights reserved. Microsoft, Axapta, BizTalk, Microsoft Dynamics and the Microsoft Dynamics logo are either registered trademarks or trademarks of Microsoft Corporation or Microsoft Business Solutions ApS in the United States and/or other countries. Microsoft Business Solutions ApS is a subsidiary of Microsoft Corporation. All other trademarks are property of their respective owners. Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confi dence. Microsoft Dynamics works like and with familiar Microsoft software, automating and streamlining fi nancial, customer relationship and supply chain processes in a way that helps you drive business success. For more information: Worldwide (1) (701) 281-6500 U.S./Canada Toll Free (1) (888) 477-7989 www.microsoft.com/dynamics/ax 01/2006