top of page
Beau Schwieso

Implementing Cell Manufacturing in D365 F&O


Ah, cell manufacturing. It’s like the cool cousin of the manufacturing world... efficient, lean, and always a step ahead of wasteful processes. If you’re in the world of Dynamics 365 Finance & Operations (D365 F&O), you’re in luck because this powerhouse ERP has the tools you need to make cell manufacturing not just a theory but a game-changing reality.


Let’s roll up our sleeves and dive into how you can implement cell manufacturing in D365 F&O, complete with industry examples that’ll make you say, “Why didn’t we think of this sooner?”


What Is Cell Manufacturing Anyway?

Imagine your factory floor as a giant kitchen. Instead of running back and forth to grab ingredients, you organize everything into small, efficient stations (cells) where all the steps for making a particular dish (or product family) happen. In manufacturing, these "cells" reduce waste, streamline processes, and make life easier for your workers.

Key principles of cell manufacturing include:


  • One-Piece Flow: Products move step-by-step, avoiding piles of unfinished work.

  • U-Shaped Layouts: Workers and materials don’t waste time zigzagging across the factory.

  • Self-Contained Teams: Teams are cross-trained and responsible for their cell's output.


Now, let’s turn theory into reality in D365 F&O but this time, let’s look at how this implementation connects to broader business goals and strategies.


Why Choose Cell Manufacturing in D365 F&O?

Before diving into the how-tos, let’s understand why you should implement cell manufacturing in D365 F&O. Beyond just improving your factory floor, cell manufacturing in D365 enables you to:

  • Adapt to Market Changes Faster: With cells dedicated to specific product families, you can switch production to new variants without disrupting other lines.

  • Reduce Lead Times: The U-shaped layouts and Kanban setups minimize wait times between production stages.

  • Enhance Sustainability Goals: Less waste and optimized resource use contribute directly to green initiatives.

🌍 Example: A sustainable packaging manufacturer uses D365 F&O to align cell outputs with customer orders, reducing overproduction and material waste.

When Cell Manufacturing Shines: Industries That Nail It

Cell manufacturing thrives in environments where efficiency, flexibility, and lean principles take center stage. These industries leverage the power of dedicated cells to reduce waste, improve quality, and adapt quickly to changing demands. Here are some industries where cell manufacturing is a match made in heaven:


Key Characteristics for Success

If your industry involves:

  • Repetitive tasks that require precision (e.g., electronics or medical devices).

  • Custom or small-batch production (e.g., high-end goods or custom food products).

  • Frequent design changes or model variants (e.g., automotive or aerospace).

Then cell manufacturing is a perfect fit! D365 F&O provides the tools to implement and scale this strategy effortlessly, enhancing efficiency and delivering on customer expectations.


Automotive

  • Why It Works: Automotive production involves repetitive tasks for assembling components like seats, dashboards, or engines. Cells allow specialization without bottlenecks.

  • Advantage: U-shaped layouts and cross-trained workers make it easy to adapt to new vehicle models or variants.

  • Example in D365: Use kanban rules to manage material flow between cells, ensuring just-in-time delivery for assembly tasks.


Electronics

  • Why It Works: From assembling circuit boards to testing and packaging, electronics manufacturing relies on small, precise steps that fit perfectly into dedicated cells.

  • Advantage: Cells streamline high-mix, low-volume production, improving quality control at each stage.

  • Example in D365: Configure production flows with embedded quality orders at critical steps to prevent defects.


Medical Devices

  • Why It Works: Manufacturing pacemakers, surgical tools, or diagnostic machines demands precision and traceability, making self-contained cells ideal.

  • Advantage: Cells can handle small batches with high customization while meeting stringent regulatory standards.

  • Example in D365: Use workspaces for real-time monitoring of production progress and compliance checks within each cell.


Food and Beverage (Custom Products)

  • Why It Works: While mass production may not suit cells, customized food products like meal kits or premium snacks benefit from segmented workflows.

  • Advantage: Cells enable one-piece or small-batch flow, ensuring freshness and reducing waste.

  • Example in D365: Configure lean scheduling to synchronize production and packaging cells for high-demand periods.


When Cell Manufacturing Doesn’t Fit the Bill: Industries to Rethink the Approach

While cell manufacturing is a superstar for many industries, there are scenarios where it might not be the best fit. The key is to understand whether your production processes align with the principles of lean and efficient workflows. Here are some industries and situations where cell manufacturing might struggle to shine:


Key Considerations

If your industry involves:

  • Continuous flows of materials (e.g., oil refining or steel production).

  • Large-scale, one-off projects (e.g., construction or shipbuilding).

  • Highly variable production processes (e.g., bulk chemicals).


Then cell manufacturing might not be the best choice. Instead, lean on other D365 F&O capabilities like process manufacturing, project accounting, and advanced resource planning to drive efficiency and visibility.


Large-Scale Agriculture

  • Why It Doesn’t Work: Agricultural processing, such as grain milling or dairy production, involves bulk inputs and outputs with minimal discrete manufacturing steps.

  • Challenge: A cell structure would be redundant, as the workflow is linear and continuous.

  • Better Approach: Use warehouse management and production orders to manage bulk material handling and logistics.

High-Volume Food & Beverage (Mass Production)

  • Why It Doesn’t Work: While some parts of food production (like assembly lines for packaged snacks) fit cell manufacturing, large-scale operations like bottling beverages or baking bread on a massive scale rely on conveyor systems, not isolated cells.

  • Challenge: Creating cells in these scenarios could slow down overall production and complicate coordination.

  • Better Approach: Utilize process manufacturing with D365’s batch tracking and automated replenishment to ensure smooth operations.

Shipbuilding and Large-Scale Construction

  • Why It Doesn’t Work: Building ships, skyscrapers, or bridges involves massive projects that require custom work at every step, often spread out over vast areas.

  • Challenge: The complexity and scale make it nearly impossible to isolate tasks into small, repetitive cells.

  • Better Approach: Implement project-based manufacturing in D365, using tools like work breakdown structures (WBS) and advanced scheduling.


The Long Game: Scaling Cell Manufacturing

One of the best things about implementing cell manufacturing in D365 F&O is that it scales effortlessly. Whether you're a boutique workshop or a global manufacturing powerhouse, D365’s flexibility lets you grow without compromising efficiency.

🚀 Growth Example: A startup in renewable energy began with two cells for assembling solar panels. As demand grew, they added new cells for storage and shipping, all seamlessly integrated into D365.

Dad Joke to Brighten the Mood

Why don’t chemical plants use cells?

Because their processes are too reactionary for that!




Peace out girl scout

DynamicsDad

bottom of page