fbpx
  • Another way of doing consulting.

Start » Dynamics AX » Bills of materials: what they are and how they help in the production process

Bills of materials: what they are and how they help in the production process

One of the challenges faced by companies with a complex production process is the management of components with bills of materials. It is essential to have control of all the materials involved in production because if one of the pieces fails, the product is left unfinished. And this situation would endanger the survival of any company, by not being able to meet two of the requirements demanded by the market: delivery of products on time and meeting quality standards.

For this reason, more and more companies are abandoning the manual process for solutions that allow each step of the production process to be managed, controlled and monitored in real time. One of these solutions is Microsoft Dynamics 365 for Finance and Operations, specifically designed to help companies manage specific business functions, including bills of materials to keep track of the components needed to manufacture products.

The productive process in the manufacture of articles

Product production, also known as the life cycle, is defined as the specific steps that are necessary to complete the manufacture of an item. The life cycle begins at the time the production order is created and ends with a finished manufactured item ready for delivery to the customer or for another phase of production. Each step of the life cycle requires different types of information to complete the process. When each step is finished, the production status changes, so that the entire company has real-time information at their fingertips.

To start the production process, it is necessary to know the components that are going to be used, as well as their quantity. And throughout the manufacturing process it is essential to keep track of the materials needed in each phase, hence the importance of linking the BOM lines to a productive operation of their route, as we will see throughout. of this article.

What are bills of materials

Bills of materials refer to the raw materials, semi-finished products, or ingredients that companies need to make a product. A clear example is found in the manufacture of vehicles: when a production order for the car is generated, all the components that appear in the list of materials must be consumed so that the manufacture is carried out, without errors.

What are the material lines for?

The material lines have the function of selecting the components that are needed for the manufacture, as well as the quantity, in each of the production phases. Another of its functions is to add instructions at each step, in order to reduce errors. In this way, in the event of any incident in the manufacturing process, it is possible to locate the step where the failure occurred.

How the BOM line is linked to each operation in the route

In those lists of materials with a large number of components (or in those processes of long duration) it is likely that these are consumed in different stages of the production process. For these cases, each line of the bill of materials can be linked to a specific production operation within its route.

Here is an example of a BOM with three components:

bill of materials microsoft dynamics 365

And its production route with three operations:

route dynamics 365 for finance and operations

We access the existing designer option in the product:

code article lines of dynamic materials 365

To link the component of the list of materials (located on the left of the screen) to a route operation (located on the right of the screen), you have to position it in the component code and mark the check “component required in ” the corresponding operation:

item code lists of materials

As an example, raw material 1 has been linked to operation 10:

link material lines with dynamics 365

Raw material 2 has been linked to operation 20:

how to link material lines with dynamics 365

And finally, raw material 3 has been linked to operation 30:

linkage lines materials production process

If now we consult in the list of materials of this product, the first line with raw material 1 its consumption is linked in operation 10:

dynamic material lines 365 finance and operations

The second line with raw material 2, its consumption is linked to operation 20:

bonding material lines practical example

And the third line with raw material 3, its consumption is linked to operation 30:

If the operation is modified from this screen, this change will be reflected in the article designer. As an example, if I modify the operation to 20 in the third line (raw material 3):

link-lines-materials-process-manufacturing-dynamics-365

In the designer it would be bound to that operation:

dynamics 365 finance and operations material lines

Microsoft Dynamics 365 for finance and operations

Microsoft Dynamics 365 Finance & Operations is a powerful ERP software equipped with the best artificial intelligence tools and specially designed to help manage the processes and resources of medium and large companies.

Its main functions:

  • Dynamics 365 Finance: Centralize financial data in one place and enable sound decision making through advanced analytics.
  • Dynamics 365 Supply Chain Management: Centralize your supply chain in one place. In addition, it optimizes planning, production, storage systems, among others. With this application, an improvement in production is achieved with intelligent applications; automation of warehouse management and optimization of purchasing processes.

 
 

Do you want to implement Dynamics 365 in your company?
We help you!

In Emiral We know how much your company is worth, whether it is small, medium or large. For this reason, we want to offer you the best ERP management solutions so that your business continues to grow.

Latest related posts