Hey there, D365 enthusiasts!
DynamicsDad here, ready to dive into some of the manufacturing acronyms that often get tossed around in the world of Manufacturing and I wanted to explain 1. what they are and 2. how they relate to Dynamics 365 Finance and Operations (D365 F&O). Some would say we are diving into this just like I like to dive into some Brummel and Brown butter with a fresh french roll still steaming hot from the oven. Ok, I need to stop writing these while I am craving carbs apparently. So here goes nothing. Also please keep in mind I am in most cases oversimplifying these answers and if you're interested in hearing more in depth answers on any of these, let me know.
DJUF (Dad Joke Up Front):
What kind of cocktail would you have if you mixed vodka, orange juice, and Milk of Magnesia?
Phillips Screw Driver
Ok, back to the D365 content.
I wrote this blog in response to a LinkedIn post about how folks still aren't understanding key manufacturing terms as shown in the below print screen:
BOM: Bill of Materials
Think of a Bill of Materials (BOM) as your manufacturing recipe. Just like you wouldn’t bake a cake without a list of ingredients, you wouldn’t manufacture a product without a BOM. It details all the raw materials, components, and sub-assemblies needed to create a finished product.
In D365 F&O, you can find the BOM under Product information management > Bills of materials. Here’s a Microsoft Learn page to help you dive deeper.
Formula: When to Use It Instead of a BOM
While BOMs are used for discrete manufacturing, where you can count each component (think cars, electronics, etc.), Formulas are used in process manufacturing, where ingredients are often measured in quantities like weight or volume (think chemicals, food, and beverages). Formulas help manage production processes that involve mixing, heating, or chemical changes.
In D365 F&O, you can manage Formulas under Product information management > Formulas. To learn more about setting up and using Formulas, check out this Microsoft Learn page.
Think of process manufacturing as something you can't easily 'undo' if something goes wrong in the manufacturing process and something discrete and something readily available to 'undo'.
When to Use BOM vs. Formula:
Use BOM when you are in discrete manufacturing where products are made up of distinct parts that can be individually counted (e.g., cars, appliances).
Use Formula when you are in process manufacturing where products result from chemical processes, mixing, or ingredients that are difficult to separate (e.g., pharmaceuticals, food production).
OEE: Overall Equipment Effectiveness
Overall Equipment Effectiveness (OEE) is like the report card for your manufacturing equipment. It measures how effectively your equipment is being used, considering availability, performance, and quality. High OEE scores mean you’re running a tight ship.
To track OEE in D365 F&O, head to Production control > Reports > Production performance. Check out this Microsoft Learn page for more details.
TPM: Total Productive Maintenance
Total Productive Maintenance (TPM) is all about keeping your machines in tip-top shape to avoid downtime and ensure smooth production runs. It’s like doing regular oil changes and tire rotations on your car to keep it running smoothly.
You can also categorize maintenance between reactive and proactive maintenance here. It's rather easy to setup and configure the way you want your business to run. #thanksMicrosoft.
In D365 F&O, TPM practices can be integrated into your maintenance schedules found under Asset management > All maintenance plans.
This Microsoft Learn page provides a comprehensive guide on setting up and managing maintenance plans.
DFT: Demand Flow Technology
Demand Flow Technology (DFT) focuses on producing goods based on actual customer demand rather than forecasted demand. It’s about being lean and mean, reducing waste, and increasing efficiency.
To implement DFT in D365 F&O, you’ll look at Production control > Lean manufacturing.
Here’s a Microsoft Learn page that gives you a solid overview of lean manufacturing principles, including DFT.
Understanding these acronyms is like getting the secret decoder ring for manufacturing in D365 F&O. By mastering BOM, Formulas, OEE, TPM, and DFT, you’ll be well on your way to optimizing your manufacturing processes and keeping things running smoothly.
I'll keep those production lines running and dad jokes coming!
DynamicsDad
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