1. Configuring the organization for Lean manufacturing
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Configuring the organization for Lean manufacturing
Production flows, activities, and work cells
MICROSOFT CONFIDENTIAL
© 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista 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.

2. Lean Manufacturing - Overview
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Lean manufacturing
Organization
Planning / scheduling
Kanban and pull-based execution
Costing for Lean manufacturing
Production flow
Period templates
Manufacturing
kanbans
Kanban board
for process
Cost calculation without route
Work cells / resource groups
Enhanced forecast scheduling
Withdrawal
kanbans
Bar codes
Backflush costing
Activities
Production schedules
Manufacturing without PO
Kanban inventory overview
Value stream operating unit
Lean Manufacturing for Microsoft Dynamics AX is build on 4 pillars:
Mapping the lean organization
Planning and scheduling
Kanban and pull based execution
Costing for Lean Manufacturing
In Microsoft Dynamics AX a Lean Manufacturing Organization is modeled with the following entities
Production flows model Lean Manufacturing scenarios in versions. The versions can be activated with date/time effectiveness
Work cells are modeled as Roles of Resource groups
Production flows are modeled as a sequence of process and transfer activities Activities are tied to the work cells or locations they are executed for, but not specific to output products, however a throughput ratio can be set for a specific output product.
Storage, logistic and production locations are modeled by Site, Warehouse and location breakdown.
The production flow is the cost accumulator for Costing for Lean Manufacturing:
Standard cost calculation can be done based on the production flow instead of a route, what makes the existence of a route optional for lean manufacturing.
WIP is accumulated per Production flow – throughout the versions.
At the end of a costing period backflush costing calculates the variances per cost group during the period based on material and services consumed by the production flow and the products received. This on-hand of semi-finished products in the kanban supermarkets is equally considered than the value of kanban jobs in process.
Locations
Scheduled kanbans
Cycle time performance indicator
Event kanbans
Financial
dimensions
Kanban scheduling
board
Subcontracting kanbans
Printing
(kanban cards, picking lists)
Supply schedule form
Kanban quantity calculation
Kanban inventory integration
Capable to promise (CTP)
MICROSOFT CONFIDENTIAL
© 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista 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.

3. Mapping the lean organization
Value proposition
Mapping the lean organization
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Flow manufacturing
Model production scenarios as production flows consisting of process and transfer activities
Implement standard work
Cellular manufacturing
Support shop floor logistics
Subcontracting
Continuous improvement
Production flow versions
Date effective active versions
Simulation versions
Activation and version replacement support
Tact and cycle time simulation based on versions
The production flow and activity concept enables Microsoft Dynamics AX to support true flow manufacturing.
Flows can be modeled using process and transfer activities.
Activities should be understood as a group of operations, that are grouped to flow within a work cell.
It is recommended to work on the concept of cellular manufacturing to ensure a successful implementation of lean manufacturing.
The production flow combines production and logistics. A production flow can span over multiple locations, warehouses and even sites. Subcontracted activities and work cells are modeled in the production flow.
The production flow is modeled in date effective versions. This allows working on process improvement on a new version, while the active versions are in production and are not affected by the change, unless a new version is activated.
MICROSOFT CONFIDENTIAL
© 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista 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.

4. Mapping the lean organization
Value proposition
Mapping the lean organization
4/19/2017 7:14 PM
Costing for Lean manufacturing
Uses standard cost framework
Production flow as primary cost accumulator
Cost breakdown on cost groups
Supports cost calculation without route based on production flow
Backflush costing per period
Calculation of variances per period by cost group
The pull concept of lean manufacturing can cause a disruption in costing, as production and replenishment of kanbans can be independent of a finished product and the traditional cost accumulator “Production order” is removed.
Lean manufacturing for Microsoft Dynamics AX 2012 uses the production flow as cost accumulator. A new implementation of costing for lean allows periodic backflush costing of the production flows, to calculate material, work and subcontracted work variances for a given period.
MICROSOFT CONFIDENTIAL
© 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista 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.

5. Example of a production flow
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A production flow consists of process and transfer activities.
The process of value stream mapping – applied according the guidance of the Lean Enterprise Institute – results in a model of a future state value stream map.
This result can be modeled in Microsoft dynamics AX as a production flow version.
Warehouses, supermarkets, picking and output locations are modeled in the Microsoft Dynamics AX Inventory breakdown.
The production flow as such is defined independent of a specific output product, however product structures and BOM-Levels need to be considered when modeling the activities.
For output products, semi-finished products and consumed material, kanban rules and lean scheduling groups model the individual behaviour of the products in the production flow:
What activities are needed to create a specific product
What replenishment principle is applied
Fixed quantity - a fixed number of kanbans with fixed product quantity circulate between source of supply and source of demand
Scheduled – Kanbans are created based on individual demand. This concept is integrated in master scheduling that automatically loads the production flow with demand based on scheduled kanban rules.
Event – Kanbans are created on direct Pull from a Sales order, a BOM Line or a Kanban Line. This system is independent of master scheduling. The event creation can be triggered instantly or deferred to a batch job.
The concept of production flows in lean manufacturing for Microsoft Dynamics AX helps modeling a broad range of business processes and supports modeling standard work for manufacturing execution. It separates the definition of product specific behavior from the core production processes.
MICROSOFT CONFIDENTIAL
© 2010 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista 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.

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