19-20 November, 2008 | Copenhagen

Christian Rytt & Thomas JensenChristian Rytt & Thomas JensenProgram ManagersProgram ManagersMicrosoft CorporationMicrosoft Corporation

NAV08NAV08

Why implement NAV Manufacturing?Why implement NAV Manufacturing?●BenefitsBenefits

● More Visibility More Visibility ● Delivery Delivery

PerformancePerformance● Product Cost Product Cost ● On time product launchOn time product launch● Engineering ChangesEngineering Changes

How?How?

● Manufacturing Master DataManufacturing Master Data● Bill of MaterialBill of Material● Capacities and RoutingsCapacities and Routings● Item/SKU planning optionsItem/SKU planning options

● One Visible PlanOne Visible Plan● Production Orders & PlanProduction Orders & PlanMake To Stock (MTS)Make To Stock (MTS)● Forecasting and PlanningForecasting and Planning● Adjusting the schedule Adjusting the schedule Make to order (MTO)Make to order (MTO)● Seamless integrationSeamless integration● Pegging or PlanningPegging or Planning

● Shop Floor – ExecutionShop Floor – Execution● Plans and Actual Plans and Actual

● Analyze and Corrective ActionAnalyze and Corrective Action● Take away / conclusionsTake away / conclusions● Q&AQ&A

ItemItem

RoutingRouting

Routing No.Routing No.

Production BOM Production BOM No.No.

1100

2200

3300

4400

Wheel assembly

Chain assembly

Final assembly

Control

BOMBOM

1100 Front 1100 Front wheelwheel

1200 Back wheel1200 Back wheel

1400 Mudguard 1400 Mudguard frontfront

1300 Chain assay1300 Chain assay

BOMBOM 1100 Front wheel 1100 Front wheel 1200 Back wheel1200 Back wheel 1400 Mudguard front1400 Mudguard front 1450 Mudguard back1450 Mudguard back

BOMBOM 1100 Front wheel 1100 Front wheel 1200 Back wheel1200 Back wheel 1400 Mudguard front1400 Mudguard front 1450 Mudguard back1450 Mudguard back

Item 1400Item 1400Mudguard frontMudguard front

BOM 1300BOM 1300

1310 Chain1310 Chain

1320 Chain wheel front1320 Chain wheel front

1330 Chain wheel back1330 Chain wheel back

Item 1200Item 1200Back WheelBack Wheel

Item 1100Item 1100Front wheelFront wheel

Item 1400Item 1400Mudguard frontMudguard front

BOM 1300BOM 1300

1310 Chain1310 Chain1320 Chain wheel 1320 Chain wheel frontfront1330 Chain wheel 1330 Chain wheel backback

Item 1200Item 1200Back WheelBack Wheel

Item 1100Item 1100Front wheelFront wheel

BOM 1000BOM 1000

1100 Front wheel1100 Front wheel

1200 Back wheel1200 Back wheel

1400 Mudguard 1400 Mudguard frontfront

1300 Chain assay1300 Chain assay

ItemItem

Routing No.Routing No.

Production BOM Production BOM No.No.

RoutingRouting1100

2200

3300

4400

Wheel assembly

Chain assembly

Final assembly

Control

BOMBOM

1100 Front 1100 Front wheelwheel1200 Back 1200 Back wheelwheel

1400 Mudguard 1400 Mudguard frontfront

1300 Chain 1300 Chain assayassay

● Work center GroupWork center Group● Work centerWork center● Machine CenterMachine Center● Consolidated calendarConsolidated calendar● SubcontractingSubcontracting● Routings:Routings:

● Serial or ParallelSerial or Parallel● Multiple versionsMultiple versions

1100

2200

3300

4400

1100

2200

3300

4400

2255

3355

RoutingRouting1100

2200

3300

4400

Wheel assembly

Chain assembly

Final assembly

Control

ItemItem• Production BOM No.Production BOM No.• Routing No.Routing No.

ItemItem• Production BOM No.Production BOM No.• Routing No.Routing No.

ItemItem

RouteRouteo 10 Operation A10 Operation Ao 20 Operation B20 Operation Bo 30 Operation C30 Operation Co 40 Operation D40 Operation D

RouteRouteo 10 Operation A10 Operation Ao 20 Operation B20 Operation Bo 30 Operation C30 Operation Co 40 Operation D40 Operation D

RoutingRouting

Routing No.Routing No.

Production BOM Production BOM No.No.

1100

2200

3300

4400

Routing link codesRouting link codes

100

Wheel assembly

Chain assembly

Final assembly

Control

BOMBOM 1100 Front wheel 1100 Front wheel 1200 Back wheel1200 Back wheel 1400 Mudgard front1400 Mudgard front 1450 Mudgard back1450 Mudgard back

BOMBOM 1100 Front wheel 1100 Front wheel 1200 Back wheel1200 Back wheel 1400 Mudgard front1400 Mudgard front 1450 Mudgard back1450 Mudgard back

BOMBOM

1100 Front 1100 Front wheelwheel1200 Back 1200 Back wheelwheel

1400 Mudguard 1400 Mudguard frontfront

1300 Chain 1300 Chain assayassay

100

100

● Replenishment SystemReplenishment System● PurchasePurchase● Produce Produce

● BOM & RoutingBOM & Routing● FlushingFlushing● Incl. SubcontractingIncl. Subcontracting

● Transfer Transfer

● Planning per item & SKUPlanning per item & SKU● Reordering PolicyReordering Policy

● A items - Demand basedA items - Demand based● B and C items - Inventory level basedB and C items - Inventory level based

● Lead TimesLead Times● Safety StockSafety Stock

Main warehouse

Subcontractor

Manufacturing SiteWarehouse site

Vendor

Demand basedDemand based

PL=25Reorder Cycle

Demands

Time

SO=10 SO=15

Lot-for-Lot

Demands

Time

SO=10 SO=15

PL=15PL=10

Order

Inventory level basedInventory level based

Reorder Point

InventoryFixed

Reorder Quantity

Lead Time

Lead Time

Time(Reorder cycle)

Inventory level Inventory level

Reorder Point

Inventory Maximum Quantity

Lead Time

Lead Time

Maximum Quantity

Time(Reorder cycle)

Inventory level Inventory level

● SimulatedSimulated● For cost and lead time calculationFor cost and lead time calculation

● PlannedPlanned● Modified/deleted by planning system Modified/deleted by planning system

● Firm PlannedFirm Planned● Modified with action messages that must be accepted by userModified with action messages that must be accepted by user

● ReleasedReleased● In production, posting consumption and outputIn production, posting consumption and output

● FinishedFinished● Completed and closed, no postingCompleted and closed, no posting

ExamplesExamples● Choosing different Bill of Material and Choosing different Bill of Material and

Routing VersionsRouting Versions● Changing a Bill of Material lineChanging a Bill of Material line● Add a new routing line Add a new routing line ● Add a subcontracting lineAdd a subcontracting line● Visually changing time and resource Visually changing time and resource

with Gantt chart with Gantt chart

● Production Forecast entryProduction Forecast entry● Multiple Forecasts Multiple Forecasts ● By locationBy location● Sales and component Sales and component

● Planning WorksheetPlanning Worksheet● Calculate Regenerative PlanCalculate Regenerative Plan● Calculate Net Change PlanCalculate Net Change Plan● Carry out planning suggestionsCarry out planning suggestions

ActionsActions● Normal situations that can be handled by Normal situations that can be handled by

the systemthe system

WarningsWarnings● AttentionAttention

● Start date is prior to work dateStart date is prior to work date

● ExceptionException● Initial inventory is below safety stockInitial inventory is below safety stock● The PAB is below the safety stockThe PAB is below the safety stock

● EmergencyEmergency● Negative inventory on planning start dateNegative inventory on planning start date

● Seamless integration between manufacturing and Seamless integration between manufacturing and others others ● Link between sales order, purchase order(s), production Link between sales order, purchase order(s), production

order(s) and transfers plus drop shipmentorder(s) and transfers plus drop shipment● Available-To-Promise across locationsAvailable-To-Promise across locations● Capable-To-Promise on sales orderCapable-To-Promise on sales order

● Seamless integration between manufacturing and Seamless integration between manufacturing and others others ● Link between sales order, purchase order(s), production Link between sales order, purchase order(s), production

order(s) and transfers plus drop shipmentorder(s) and transfers plus drop shipment● Available-To-Promise across locationsAvailable-To-Promise across locations● Capable-To-Promise on sales orderCapable-To-Promise on sales order

● Manufacturing Manufacturing ● Order planning – make or buy? - or transfer?Order planning – make or buy? - or transfer?● Manual adjustments as transfer of components from other Manual adjustments as transfer of components from other

locations / siteslocations / sites● Automatic TransfersAutomatic Transfers● Sub-ContractorsSub-Contractors● Pegging or planning as your planning principle?Pegging or planning as your planning principle?

● Pegging or Planning Pegging or Planning

Order Tracking andAction Messaging

Available inventory

TIMEINVENTORY

5 PCS

SU

PP

LY

DE

MA

ND

QU

AN

TIT

Y

Salesorder3 pcs

Salesorder4 pcs

Track B1 PCS

Track A4 PCS

AB

Action messagepurchase order

2 pcs Order A comes first and is covered by

inventory Order B can take 1 from inventory, then

an action message will suggest apurchase order to cover the missing 2

Available inventory

TIMEINVENTORY

5 PCS

SU

PP

LY

DE

MA

ND

QU

AN

TIT

Y

Salesorder3 pcs

Salesorder4 pcs

Purchaseorder2 pcs

Track A3 PCS

Track B2 PCS

Track C2 PCS

Planning

AB Old tracking is removed Order B can be covered by

inventory A purchase order of the

missing 2 can wait until thedue date of order A

PeggingPeggingPlanningPlanning

Source: Microsoft Dynamics NAV Supply Planning in version 5.0 SP1 – Technical White PaperSource: Microsoft Dynamics NAV Supply Planning in version 5.0 SP1 – Technical White Paper

● Sales order direct link to supply Sales order direct link to supply ● Demand based replenishment of stocked Demand based replenishment of stocked

componentscomponents● Automatic generation of Requisition Worksheet and Automatic generation of Requisition Worksheet and

Planning Worksheet with suggestionsPlanning Worksheet with suggestions● Planning including multiple sites / locations and Planning including multiple sites / locations and

subcontractorssubcontractors● Available-To-Promise Available-To-Promise ● Capable-To-PromiseCapable-To-Promise

● Production OrdersProduction Orders● Material Requisition for Warehouse pickingMaterial Requisition for Warehouse picking● Shortage List for actionShortage List for action● Job Card Job Card ● Links to related information e.g. Working Instruction, Links to related information e.g. Working Instruction,

Drawings, CertificatesDrawings, Certificates

● Production JournalsProduction Journals● Actual consumption and output per Production OrderActual consumption and output per Production Order● Actual material consumptions for multiple Production Actual material consumptions for multiple Production

OrdersOrders● Actual output and scrap for multiple Production OrdersActual output and scrap for multiple Production Orders

● AbsenceAbsence● Registration of AbsenceRegistration of Absence● Capacity Capacity

● Analysis Analysis ● Cost Calculation of Production OrdersCost Calculation of Production Orders● Production Orders Statistics Production Orders Statistics

● Standard Product Cost Standard Product Cost ● Work In Process (WIP) Work In Process (WIP) ● Capacity LoadCapacity Load

● Corrective ActionCorrective Action● TasksTasks

BenefitsMore Visibility Delivery PerformanceProduct Cost On time product launchEngineering Changes

NAV Manufacturing help you runa world class manufacturing operation!

by someone who knows by someone who knows what I do and what I need…what I do and what I need…

I love it…I love it…

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