1. 19-20 November, 2008 | Copenhagen

2. Christian Rytt & Thomas Jensen Program Managers Microsoft Corporation NAV08

3. Why implement NAV Manufacturing? ●Benefits ● More Visibility ● Delivery Performance ● Product Cost ● On time product launch ● Engineering Changes How?

4. ●Manufacturing Master Data ● Bill of Material ● Capacities and Routings ● Item/SKU planning options ●One Visible Plan ● Production Orders & Plan Make To Stock (MTS) ● Forecasting and Planning ● Adjusting the schedule Make to order (MTO) ● Seamless integration ● Pegging or Planning ●Shop Floor – Execution ● Plans and Actual ●Analyze and Corrective Action ●Take away / conclusions ●Q&A Master Data One Visible Plan Collect Actuals Analyse Corrective Action

5. ItemItem RoutingRouting Routing No. Production BOM No. 1010 2020 3030 4040 Wheel assembly Chain assembly Final assembly Control Master Data BOM BOM 1100 Front wheel 1200 Back wheel 1400 Mudguard front 1300 Chain assay

6. Master Data BOM  1100 Front wheel  1200 Back wheel  1400 Mudguard front  1450 Mudguard back BOM  1100 Front wheel  1200 Back wheel  1400 Mudguard front  1450 Mudguard back BOM  1100 Front wheel  1200 Back wheel  1400 Mudguard front  1450 Mudguard back BOM  1100 Front wheel  1200 Back wheel  1400 Mudguard front  1450 Mudguard back Item 1400 Mudguard front BOM 1300 BOM 1300 1310 Chain 1320 Chain wheel front 1330 Chain wheel back Item 1200 Back Wheel Item 1100 Front wheel Item 1400 Mudguard front BOM 1300 BOM 1300 1310 Chain 1320 Chain wheel front 1330 Chain wheel back Item 1200 Back Wheel Item 1100 Front wheel BOM 1000 BOM 1000 1100 Front wheel 1200 Back wheel 1400 Mudguard front 1300 Chain assay

7. Master Data

8. ItemItem Routing No. Production BOM No. RoutingRouting 1010 2020 3030 4040 Wheel assembly Chain assembly Final assembly Control Master Data BOM BOM 1100 Front wheel 1200 Back wheel 1400 Mudguard front 1300 Chain assay

9. Machine Center Workcenter Workcenter Group Production Equipment Assembly machine Quality tool Workers Assembly worker Quality worker ●Work center Group ●Work center ●Machine Center ●Consolidated calendar ●Subcontracting ●Routings: ● Serial or Parallel ● Multiple versions 1010 2020 3030 4040 1010 2020 3030 4040 2525 3535 Master Data RoutingRouting 1010 2020 3030 4040 Wheel assembly Chain assembly Final assembly Control

10. Master Data

11. Item Production BOM No. Production BOM No. Routing No. Routing No.Item Production BOM No. Production BOM No. Routing No. Routing No. Item Production BOM No. Production BOM No. Routing No. Routing No.Item Production BOM No. Production BOM No. Routing No. Routing No. ItemItem Route o 10 Operation A o 20 Operation B o 30 Operation C o 40 Operation D Route o 10 Operation A o 20 Operation B o 30 Operation C o 40 Operation D Route o 10 Operation A o 20 Operation B o 30 Operation C o 40 Operation D Route o 10 Operation A o 20 Operation B o 30 Operation C o 40 Operation D RoutingRouting Routing No. Production BOM No. 1010 2020 3030 4040 Routing link codes 100 Wheel assembly Chain assembly Final assembly Control Master Data BOM  1100 Front wheel  1200 Back wheel  1400 Mudgard front  1450 Mudgard back BOM  1100 Front wheel  1200 Back wheel  1400 Mudgard front  1450 Mudgard back BOM  1100 Front wheel  1200 Back wheel  1400 Mudgard front  1450 Mudgard back BOM  1100 Front wheel  1200 Back wheel  1400 Mudgard front  1450 Mudgard back BOM BOM 1100 Front wheel 1200 Back wheel 1400 Mudguard front 1300 Chain assay 100

12. ●Replenishment System ● Purchase ● Produce ● BOM & Routing ● Flushing ● Incl. Subcontracting ● Transfer ●Planning per item & SKU ● Reordering Policy ● A items - Demand based ● B and C items - Inventory level based ● Lead Times ● Safety Stock Master Data Main warehouse Subcontractor Manufacturing Site Warehouse site Vendor

13. Demand based PL=25 Reorder Cycle Demands Time SO=10 SO=15 Lot-for-Lot Demands Time SO=10 SO=15 PL=15 PL=10 Order Master Data

14. Inventory level based Master Data Reorder Point Inventory Fixed Reorder Quantity Lead Time Time (Reorder cycle) Inventory level Reorder Point Inventory Maximum Quantity Lead Time Maximum Quantity Time (Reorder cycle) Inventory level

15. Master Data

16. ●Simulated ● For cost and lead time calculation ●Planned ● Modified/deleted by planning system ●Firm Planned ● Modified with action messages that must be accepted by user ●Released ● In production, posting consumption and output ●Finished ● Completed and closed, no posting One Visible Plan

17. Examples ●Choosing different Bill of Material and Routing Versions ●Changing a Bill of Material line ●Add a new routing line ●Add a subcontracting line ●Visually changing time and resource with Gantt chart One Visible Plan

19. ●Production Forecast entry ● Multiple Forecasts ● By location ● Sales and component ●Planning Worksheet ● Calculate Regenerative Plan ● Calculate Net Change Plan ● Carry out planning suggestions One Visible Plan

20. Actions ●Normal situations that can be handled by the system Warnings ●Attention ● Start date is prior to work date ●Exception ● Initial inventory is below safety stock ● The PAB is below the safety stock ●Emergency ● Negative inventory on planning start date One Visible Plan

21. ●Seamless integration between manufacturing and others ● Link between sales order, purchase order(s), production order(s) and transfers plus drop shipment ● Available-To-Promise across locations ● Capable-To-Promise on sales order One Visible Plan

23. ●Seamless integration between manufacturing and others ● Link between sales order, purchase order(s), production order(s) and transfers plus drop shipment ● Available-To-Promise across locations ● Capable-To-Promise on sales order ●Manufacturing ● Order planning – make or buy? - or transfer? ● Manual adjustments as transfer of components from other locations / sites ● Automatic Transfers ● Sub-Contractors ● Pegging or planning as your planning principle? One Visible Plan

25. ●Pegging or Planning PeggingPlanning Source: Microsoft Dynamics NAV Supply Planning in version 5.0 SP1 – Technical White Paper One Visible Plan

26. ●Sales order direct link to supply ●Demand based replenishment of stocked components ●Automatic generation of Requisition Worksheet and Planning Worksheet with suggestions ●Planning including multiple sites / locations and subcontractors ●Available-To-Promise ●Capable-To-Promise One Visible Plan

27. ●Production Orders ● Material Requisition for Warehouse picking ● Shortage List for action ● Job Card ● Links to related information e.g. Working Instruction, Drawings, Certificates ●Production Journals ● Actual consumption and output per Production Order ● Actual material consumptions for multiple Production Orders ● Actual output and scrap for multiple Production Orders ● Absence ● Registration of Absence ● Capacity Collect Actuals

29. ●Analysis ● Cost Calculation of Production Orders ● Production Orders Statistics ● Standard Product Cost ● Work In Process (WIP) ● Capacity Load ●Corrective Action ● Tasks Analyse Corrective Action

30. Analyse

31. Corrective Action

32. Master Data One Visible Plan Collect Actuals Analyse Corrective Action Benefits More Visibility Delivery Performance Product Cost On time product launch Engineering Changes NAV Manufacturing help you run a world class manufacturing operation!

33. by someone who knows what I do and what I need… I love it…I love it…

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