If you’re anything like me, you’ve found yourself staring at D365 F&O and wondering, "What’s the deal with byproducts and coproducts?". Maybe you’re knee-deep in a production environment, or perhaps you just want to sound smart at the next team meeting.
Either way, today’s blog is your ticket to mastering these often confused concepts. And, as always, I’ll toss in a dad joke or two because, well, it wouldn’t be a DynamicsDad post without one (and for some of you guys, that's all you get out of these blogs)!
Byproducts: The Happy Accident of Manufacturing
What is a Byproduct?
In the simplest terms, a byproduct is something you didn’t necessarily set out to make, but you ended up with it anyway. It’s like when you go to the store for milk and come back with five different snacks you didn’t need. The snacks? Those are your byproducts.
In the world of manufacturing, a byproduct is an incidental result of the production process. You weren’t aiming to create it, but it’s there, and it might have some value. Sometimes it’s recycled back into production, sold off, or just discarded.
How to Set Up a Byproduct in D365
Create the Finished Product BOM (Bill of Materials): First, you’ll set up the BOM for your main product. This is where you’ll list all the raw materials and components needed to produce your primary item.
Add Byproducts: In the BOM designer, there’s a section for byproducts. Here, you can define what byproducts are expected from the production of your primary product. You’ll specify quantities, costs, and even how the byproduct is handled post-production.
Configure Production Routes: Ensure that your production routes account for the byproducts, especially if they need to be further processed or stored separately.
Three Industries Where Byproducts Shine
Chemical Manufacturing: In chemical production, byproducts are common. For instance, producing biodiesel often results in glycerin as a byproduct. The glycerin can be sold as a separate product or used in other processes.
Food Processing: When processing corn into cornmeal, you might end up with corn oil as a byproduct. The corn oil can be refined and sold separately.
Metal Casting: In metal casting, slag—a byproduct of smelting—can be used in construction as a cement additive or simply discarded.
Coproducts: Siblings in Production
What is a Coproduct?
A coproduct is like a sibling to your main product. They share the same process and have equal importance. Unlike byproducts, coproducts are planned outcomes. You intend to produce multiple products from a single process, and each has value.
Think of it like making peanut butter and jelly sandwiches. You’ve got the peanut butter and jelly as the stars of the show—both are essential, and you wouldn’t have one without the other.
How to Set Up a Coproduct in D365
Create the Finished Product BOM: Start by creating a BOM for your primary product, just like you would for a byproduct.
Add Coproducts: In the BOM, add your coproducts. Unlike byproducts, these items are just as critical as your main product. You’ll define quantities, costs, and distribution methods.
Configure Production Routes: Since coproducts are integral to the process, ensure that your production routes reflect their creation and handling. Both products will typically follow similar routes but may diverge based on final packaging or storage needs.
Three Industries Where Coproducts Are Crucial
Pharmaceuticals: In drug manufacturing, it’s common to produce multiple medications from the same batch of raw materials. Each product is valuable and intended for the market.
Dairy Industry: Producing milk and cream is a classic example of coproducts. The same process that yields milk can also produce cream, and both are essential products for the industry.
Meat Processing: When processing a chicken, you get multiple coproducts like breasts, wings, thighs, and drumsticks. Each part is valuable and meant for sale.
So, Byproduct or Coproduct: Which One Do You Need?
It really comes down to intention. If you’re producing something incidental to your main product, that’s a byproduct. If you’re planning to produce multiple key items from one process, those are coproducts.
Here’s a little dad advice: Always know what you’re aiming for in production. Like planning a family road trip, understanding where you’re going (and what you might pick up along the way) is half the battle.
And remember, whether it’s a byproduct or a coproduct, both can add value to your business. It’s all about setting things up correctly in D365 to make the most of what you’re producing.
Closing Dad Joke
Why did the manufacturer cross the road? To create a byproduct of course! (You might have been expecting a punchline, but, like a byproduct, sometimes what you end up with isn’t exactly what you planned.)
Happy manufacturing!
DynamicsDad
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