How to use Resource Materials to teach this course As part of the Resource Materials there are several elements including; Student Online Companion Guide, Instructor Presentation (PPT), Test Your Knowledge Questions (TYKQ’s) , and Lab/Practices. All of these materials are for the instructor use, except for the Student Companion Guide, this is the students take away from this course. Instructor Notes: The slide deck for this course is the primary guide for the instructor this will correspond to the companion guide to some degree. However, the printed transcript may not align 100%. Suggestion would be to review this deck and polish it to fit your needs. Practice the labs and demonstrations ahead of time, add own content to add additional student value outside of the eLearning. However the two can be used in conjunction. eLearning - You might choose to complement your classroom experience by leveraging various components of the eLearning for this course. If you look within the notes of the PowerPoint slide deck for this course, you’ll find the names of the various sections within the eLearning where each lesson and demonstration are covered. The eLearning will cover the following topics:

Timeline – Course Duration: 1 Hours Module Description Time to Complete Process Manufacturing Overview 1   Total Class Presentation 1 Hours

Disclaimer: This courseware is provided “as-is” Disclaimer: This courseware is provided “as-is”. Information and views expressed in this courseware, including URL and other Internet Web site references, may change without notice. Unless otherwise noted, the examples depicted herein are provided for illustration only and are fictitious.  No real association or connection is intended or should be inferred.  This courseware does not provide you with any legal rights to any intellectual property in any Microsoft product. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this courseware may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means or for any purpose, without the express written permission of Microsoft Corporation.   Copyright © 2016 Microsoft Corporation. All rights reserved.  Microsoft®, Microsoft Dynamics®, Microsoft Dynamics® CRM 2015, Microsoft Dynamics® CRM Online, Microsoft® SQL Server® data management software, Microsoft Office® Outlook and Microsoft PowerPoint® are trademarks of the Microsoft group of companies. All other trademarks are property of their respective owners.

81088AE – An Introduction to Process Manufacturing in Microsoft Dynamics 365 for Operations Welcome to course 81088AE – An Introduction to Process Manufacturing in Microsoft Dynamics 365 for Operations. In this course we will review the basic concepts around Process Manufacturing in Dynamics 365 including a review of the tools available, and the Enterprise and Item Level Setup required to use these tools.

Course Objectives Explain the differences between Process and Discrete Manufacturing Describe the additional tools available in Dynamics for Process Manufacturing Review the Enterprise Level Setup required for Process Manufacturing Review the Item Level Setup required for Process Manufacturing The objectives of this course are to: Explain the difference between Process and Discrete Manufacturing Describe the additional tools available in Dynamics for Process Manufacturing Review the Enterprise Level Setup required for Process Manufacturing Review the Item Level Setup required for Process Manufacturing

Module 1 – Process Manufacturing Overview In this module we will review the unique features of process manufacturing and the setup required to use process manufacturing in Dynamics 365 for Operations.

Overview of Process Manufacturing

Overview of Process Manufacturing Products manufactured in batch or semi-continuous processes Batch methods include mixers, batch reactors and extruders Semi-Continuous methods include plug-flow reactors, fiber manufacturing and looms Production completed in batches with a standard batch size Production process allows for yield loss along with scrap Consumption of materials may be linear or non-linear based upon batch size Sales, Procurement and Inventory managed in dual unit of measure Batch (LOT) tracking requirements along with quality inspection and testing Shelf life tracking on manufactured and purchased materials Process Manufacturing is used in manufacturing environments where production is completed in batch or semi-continuous processes. These manufacturing systems may include batch methods such as mixers, batch rectors, and extruders or semi-continuous methods such as plug-flow reactors, fiber manufacturing, and looms. The production is completed in batches with a standard batch size and may contain an overall yield along with a scrap factor, such as found in chemical reaction manufacturing. Process manufacturing may also be used in production environments where the consumption of materials may be linear or non-linear based upon the production order size. Process manufacturing also allows for the sales, procurement and inventory of material in dual units of measure. Batch tracking with quality inspection and testing and shelf life tracking on manufactured and purchased materials would also be an indication that a company should use the process manufacturing model in Dynamics.

Process Manufacturing Production Tools Microsoft Dynamics 11/25/2017 Process Manufacturing Production Tools Retention of complex formulas Manage shelf life products Manage commodity pricing Manage product compliance Process Manufacturing in Dynamics is used to allow manufacturers to quickly define complex formulas to accurately control production costs and inventory. The key features of process manufacturing production include the following: Retention of complex formulas such as a formula where the compounds are based upon the potency of an active ingredient such as the monomer number in a polymerization process. Manage shelf life products that contain expiry, best before and shelf life extension dates for example food products such a yogurt, milk, or orange juice. Manage commodity pricing for goods that are commodity based on an exchange traded commodity, such as crude oil, coffee, or steel Manage product safety compliance for the goods that you are handling, such as hazardous acids and other chemicals. Setup and apply complex rebates to realize cost savings or to pass on sales discounts. Additional features on the next slide Setup and apply complex rebates © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Process Manufacturing Production Tools Microsoft Dynamics 11/25/2017 Process Manufacturing Production Tools Advanced lot / batch tracking and control Manage quality standards and testing results Enhanced cost management of multiple outputs Procure, store and sell products in dual units of measure Continued from previous slide Advanced lot tracking and control to keep accurate storage and sales records in case of recall. Ability to manage quality standards and test results by batch number to show product compliance to standards. Enhanced cost management of multiple outputs for the production of products, co-products, or by products. Ability Procure, store and sell products in dual units of measure for items such as items that are stored in both pounds and boxes, for example oranges in 55 lb boxes. Manage production for packaging of a single product in multiple container sizes, such as paint than is packaged in gallons, quart and pint containers. Manage production for packaging in multiple containers © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Formula vs BOM item Formula item BOM item Microsoft Dynamics 11/25/2017 Formula vs BOM item Formula item BOM item A series of mixing operations into a final, sellable product. Assembled from a fixed quantity of components With or without co-products and by-products. No co-product or by-product Specific sizes called batches With or without a standard production quantity. In Dynamics 365, the items that are produced (semi-finished or finished) in process manufacturing are called formula items. However, products that are produced in other industries, such as assembly, repetitive manufacturing, are called Bill of Material (BOM) items. There are many differences between a formula item and a BOM item. Formula: Formula items are produced from a series of mixing operations, chemical reactions, extraction or other actions that transform raw materials into a final, sellable product. The formula item is produced together with or without co-products and by-products. The formula item is produced in specific sizes called a batch size, and can be tracked with a batch number. Yield will cause the ingredient quantities to differ to achieve the planned output of the formula item. BOM Item Discrete products are assembled from a fixed quantity of components in a bill of material. No co-product or by-product is produced with a BOM item. The BOM item is produced with or without a standard production quantity. Sometimes it might not be tracked with a batch number or serial number. The output from a production order, which the BOM item uses, is generally equivalent to the estimated output quantity. Yield will cause the ingredient quantities to differ Estimated quantities rarely change © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Enterprise Level Setup

Enterprise Level Setup Catch Weight items defined at the global level Products are specified as Product masters at the global level Product variants created at the global level and released to an enterprise Storage and tracking dimension groups are setup at the enterprise level Enterprise Level Setup Catch weight items are defined as a catch weight item as the global level when the product is created. All enterprises that utilize that product must utilize the catch weight functionality. A product is defined as a product or a product master as the global level when the product is created. The product dimension group (which product dimensions are utilized) is also specified at the global level. Product variants are created on the product at the global level and can be released to different enterprises through the product release process. Storage and tracking dimension groups are setup at the enterprise level to be used on the released product. Various parameters must be setup in the enterprise including the by-product burden category and the formula and batch order number sequence parameters. Setup of by-product burden and number sequence parameters

Item Model Groups FEFO date-controlled Same batch reservation Microsoft Dynamics 11/25/2017 Item Model Groups FEFO date-controlled Same batch reservation Consolidate requirement Vendor batch Setup in the Item Model group Item model groups must also be set up in a company to transact against products. Along with the standard choices in an item model group, process manufacturing adds the ability to have: FEFO date-controlled which allows the reservation of materials to be controlled by the expiration date of the batch. When setting up the item model group, you specify whether to use the Best before or Expiration date for FEFO selection. Same batch reservation and Consolidate reservation requirements allow the creation and processing of shipments from the same batch for some specific customers that may require the same batch in a shipment. Vendor batch at purchase registration will prompt to enter a vendor batch during the purchase receipt registration process Default Batch disposition code for an item model group, which will be used when any new batch is created for an item in this model group Approved vendor list check method when creating a purchase order for an item Batch disposition code Approved vendor list © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Item Level Setup

Item Level Setup Catch Weight Tracking dimension group Batch Attributes Tracking dimension group Items Packaging setup for bulk and packed items Shelf life Catch Weight Related Setup When you enable the CW product check box at the global level and release it into the individual companies , you must perform catch weight setup on the item including: Create the unit conversion data between the base unit and the catch weight unit. Assign the catch weight unit of measure to the item Enter the Minimum quantity and Maximum quantity fields in the Catch weight field group You must also set the Tracking Dimension Group If you want to track a batch number or a shelf life, a tracking dimension group with the selection if batch active must be selected. Shelf Life Related Setup You can also enter Shelf life related setup can be defined under the Item data field group in the Manage inventory section of the product. The shelf life setup includes setting a Shelf advice period in days which sets a retest period from the date of manufacture for an item Shelf life period in days which sets an expiration date from the date of manufacture Best before period in days which sets a date before the expiration date where the product should be consumed in order to get the best quality. The purpose of the shelf life related setups is to calculate the expiry date for the batches and the expiry date is taken into account in reservation and master planning scenarios. It is also used to report on batches about to expire. Production Type Setup You must define the relevant production types in the Production type field in the Engineer section of the Released product details form. The list of different production types include the following: Formula BOM Co-product By-product Planning item None Packaging Setup for Bulk and Packed Products To set up the consolidated batch orders functionality (containerized packaging) to link a bulk order with packed orders, you must define the bulk item conversion for all packaged formula items. Batch Attributes Setup You can also set up batch attributes for items and customers at the released product level. This is an optional setup for the items that require batch tracking and picking based on specific batch attributes. Production Type

Item Level Setup Item Model Group Product Compliance Items Approved Vendors Item Model Group The item model group must be identified on the released product to specify the reservation and costing methods along with the ability to control batch disposition codes, approved vendors and consolidation requirements. The setup for the item model group was discussed in the Enterprise level setup section. Product Compliance Product compliance setup must be completed on the released product if safety and PSDS data is to be tracked on the item. The product can be listed as a restricted or regulated product and can have various reporting information (such as CAS number) recorded on the item. Approved Vendors An approved vendor list can be set up on the released product to indicate the vendors that the item can be purchased from. If the item model group requires an approved vendor be used for purchases this is a mandatory setup for the item. Batch Number Group A batch number group allows Dynamics 365 to create a batch number automatically for an item based upon specified data such as the date and Number Sequence ID. This is useful when a batch number is required but a company does not want the number manually entered upon a production receipt transaction. Batch Number Group

Course Review

Key Takeaways Process manufacturing allows for the use of yield, co-products and by-products, and other features beyond discrete manufacturing A Formula Item is used for items that are produced in a series of batch manufacturing processes with a specific batch size A BOM Item is used when an item is assembled from a specific quantity of raw materials with varying production quantities. Item Model Group is used to define reservation principle, approved vendor requirements and default batch disposition code Catch weight is setup at the global level on an item with enterprise specific conversions setup on the released product Shelf Life can only be tracked on items with a tracking dimension group where batch is active The key takeaways from this course are: Process manufacturing allows for the use of yield, co-products and by-products, and other features beyond discrete manufacturing A Formula Item is used for items that are produced in a series of batch manufacturing processes with a specific batch size A BOM Item is used when an item is assembled from a specific quantity of raw materials with varying production quantities. Item Model Group is used to define reservation principle, approved vendor requirements and default batch disposition code Catch weight is setup at the global level on an item with enterprise specific conversions setup on the released product Shelf Life can only be tracked on items with a tracking dimension group where batch is active