process industry – Devlicious.net

Overproduction in Microsoft Dynamics AX 2012

With the introduction of the new warehouse management capabilities in Microsoft Dynamics AX 2012 R3, it is possible to Report as finished a production or batch order from a handheld device. The only disadvantage of using this capability is that you can’t overproduce. The user will be blocked by the error: Quantity reported as finished exceed the quantity started, and have no option to override the setting.

With Hotfix KB 3034999, we leverage the quantity validation parameters, originally built for the Manufacturing execution module, so the user can now report overproduction from a handheld device.

Overproduction is the term used in Microsoft Dynamics AX 2012 for reporting a production or batch order as finished when the quantity produced is greater than originally planned. This is a common scenario in the process industry and can be caused by many factors, for example, potency and yield.

When you produce more items than planned for a production or batch order, you will get the following blocking error: Quantity reported as finished exceeds the quantity started.

In order to allow for overproduction, you have to select the parameter Accept error in the Report as finished parameters. This will bypass the quantity validation check and then allow for overproduction.

For companies that use the Manufacturing execution module in Dynamics AX2012, there is a more advanced support for overproduction. In this module, you can set up a quantity validation based on different criteria. For example, you can accept overproduction in percent based on the planned quantity, the started quantity, or the quantity reported on the previous operation.

To show an example of how overproduction is reported, I have changed the demo script for CU8 “SCM Demo Script – Batch orders and WMS integration” (Attached). I have changed the section:

DEMO: REPORT THE PRODUCTS AS FINISHED AND MOVE THEM TO LOCATION FOR FINISHED PRODUCTS

The following diagram shows the complete logic. The logic was originally only applicable for reporting overproduction from the job registration form in the Manufacturing execution module, but is now applicable for the scenario where the user needs to report overproduction from a handheld device.

SCM Demo Script – Batch orders and WMS integration – Overproduction.pdf

Generating put away work when reporting as finished from the Dynamics AX client

This new functionality is available with KB 2999768 and will be included in Microsoft Dynamics AX2012 R3 CU8. To find the HF you can use LCS Issue Search.

What’s new?

In the AX2012 R3 release put away work could only be generated when you used the reporting as finished process on a mobile device for a production or batch order. In CU8 put away work can now also be generated when you use the reporting as finished process for a warehouse-enabled item from the AX client.

In this blog I am going to walk through two scenarios showing how put away work is now created when reporting as finished from the Dynamics AX client. In this example I am going to use item L0101 from the USMF demo data company

Simple scenario : Shannon has completed the assembly of ten speakers in her work cell. She reports the speakers as finished in the route card journal and put away work is generated.

A production order for twenty pieces of mini-speakers exists and is in the status Started:

Shannon completes the assembly of the twenty Mini-speakers and reports the quantity as finished in the route card journal:

Shannon provides the journal line with a license plate number:

When Shannon posts the journal, put away work is generated:

Advanced scenario : Shannon is working on a production order assembling ten Mini-speakers. Shannon has completed the assembly of eight speakers and reports them as finished in the job registration terminal form and put away work is generated. Shannon completes the assembly of the remaining two speakers but does not have time to report them in the terminal, because she has to rush home. Lars promises Shannon that he will take care of reporting the remaining quantity as finished.

A production order for ten pieces of mini-speakers exists and is in the status Started:

Shannon has started the assembly of 10 mini-speakers:

Shannon is now going to report eight pieces as finished from the Job registration form in the manufacturing execution system. In the feedback form Shannon provides a license plate number. This number identifies the goods that Shannon is reporting to the output location of her work cell. The license plate number will be used by the warehouse worker to identify the goods that he is going to put away from the output location to the finished goods locations:

Note: The license plate field is enabled in the feedback form under the following conditions

The item is enabled for the new warehouse processes
The shop floor operator is reporting on the last operation in the production route

After Shannon has confirmed the feedback of eight pieces of mini-speakers, put away work is generated:

As it can be seen this work suggests that the eight Mini-speakers are put away from the production output location to the finished goods location.

In order to report the remaining two Mini-speakers, Lars opens the production order form and selects the Report as finished function. Here he enters the remaining two pieces and the license plate. In this case he uses the same license plate as Shannon did when she reported the first eight speakers:

After confirming the report as finished, put away work has been generated for the remaining two speakers that were reported by Lars:

The different options for reporting as finished is outlined in the table below. All these options now supports the generation of put away work:

Option	Description
Report as finished	Dedicated function on the production/batch order form or list page. Has advanced options to for example back flush materials. Typically used by the shop floor supervisor role
Report as finished journal	Journal to post the quantity reported as finished for production or batch orders. Typically used by the shop floor operator role
Job card journal	Journal to report time and quantity for route operations. Option to report a quantity as finished when reporting on the last operation. Typically used by the shop floor operator role
Route card journal	Journal to report time and quantity for production jobs. Option to report a quantity as finished when reporting on a process job for the last route operation. Typically used by the shop floor operator role
Current operations	List page showing ongoing operations on the shop floor. Option to report a quantity as finished when reporting on the last operation. Used by the shop floor operator role
Report feedback in job registration form	Form that is optimized for manufacturing execution on the shop floor in a kiosk or terminal installation. Option to report a quantity as finished when reporting on the last operation or a process job for the last operation. Used by the shop floor operator role
Hand held device	Menu items on hand held device offering reporting production or batch orders as finished. Used by the shop floor operator role

Summary

In CU8 it is now possible to have put away work generated when reporting quantity on a production or batch order in the Dynamics AX client. For example this can be useful for customers who wants to enable the new warehouse processes offered in the R3 release, but wants to continue to use the shop floor terminal for manufacturing execution, or also want to enable the shop floor supervisor to make corrections.

Support for Recycled By-products in AX 2012 R3 CU8

This new functionality is available with KB 2989470 / HF 2989470 and will be included in Microsoft Dynamics AX2012 R3 CU8. To find the HF you can use LCS Issue Search.

What’s new?
To support recycled or recurrent products in process industry, it is now possible to use the same product as both input and output on a formula. As an example, this is useful in plastic molding where consumed plastic regrind can be recovered from the manufacturing process. Other examples are processes where you put metal scrap from the stamping/forming process in a foundry.
The recurring co-product solution in Microsoft Dynamics AX2009 had some limitations on the costing side and was not ported to AX2012. This new solution use by-products with a stronger support for costing.

Feature solution
This new feature enables the consumption and reuse of the same by-products in the production of formulas and batch orders, by allowing BOM circularity for output that has the production type, By-product.
For costing purposes a new Burden type, Recycled, was added to handle the cost of the recycled by-products. Use of the Recycled Burden type deducts the joint production cost that is allocated to the formula and co-products, by using the standard cost value of the recovered by-product.
By-product output from planned and firmed batch orders is ignored during planning. This is done to ensure that demand for the recycled product isn’t pegged against by-product output from the same order, or other orders from the same process or BOM chain. This means that the recycled by-product cannot be pegged until it is on-hand (posted from the batch order).
Finally as a small additional improvement on the Explosion form, it is now indicated when a formula output is a by-product. This is done by adding ‘(By-product)’ to the line.

Set up recycled by-products
In order to allow BOM circularity, the recycled item must use standard cost and use the production type By-product or in special cases Co-product. On the formula the recycled product input is a normal formula line, and the output on the same or other formulas is a co-product output of the Production type, By-product, and the Burden type, Recycled.

Product

The recycled functionality only supports standard cost, so ensure that you select an Item model group that uses the Inventory model, Standard cost, on the General FastTab:
Ensure that the Production type is By-product on the Engineer FastTab for the product:

Note: Products with production type Co-product can also be used, but then you will have to change the Production type to By-product on the formula or batch order, to use the recycled by-product functionality.

Input – formula consuming the recycled product
The recycled product is added as a normal formula line on the formula:
Output – formula producing the recycled product
On the formula (can be the input, or another formula) that produces the recycled item, the recycled item must be added as a co-product output of the production type, By-product, with the Burden type, Recycled:

We are aware that the name Burden is not full correct with the Recycled option added. However, the nature of a hotfix release didn’t leave room for renaming.

Let’s try an example to see the feature in action:

We have the following three products:
M1 – Main ingredient, Standard cost – $10/Kg, Purchase, 100 kg On-hand
B1 – By Product, Standard cost – $5/Kg, Purchase, 15 kg On-hand
F1 – Formula item, Standard cost, Production, 0 kg On-hand

To produce F1 we use the following formula:
F1-FORM, Formula Size: 10 Kg

With the following lines
M1, 20 kg
B1, 10 Kg

Co/By-Product lines
B1, Production type = By-product, Burden = Recycled, 8 Kg

In AX it looks like this:

With the B1 added as By-product under the Co-products output:

First sales order
To generate a demand for F1 let’s create a sales order for 10 kg:

Running the explosion on the sales order will generate a batch order to produce the 10 kg because we don’t have any F1 on-hand:

Notice that the first line for B1 indicates that we get an additional co-product output of the type, By-product.

As both M1 and B1 are on hand, we can firm the planned batch order and start the production. (Planned orders -> Firm)

Processing the batch order
Let’s report the batch order as finished with the expected input and output:

What happened to the cost?
I have set a material overhead of 10%, so looking at the cost perspective we get the following.

Batch cost:
     M1 20 kg = 20 * $10 = $200
     B1 10 kg = 10 * $5 = $50
     Overhead 10% = 10% * ($200+$50) = $25
     Total = 200+50+25 = $275

B1 cost share (8kg): 8 * $5 = $40 (note this is fixed to the Std. Cost – no overhead)
F1 cost share (10kg): $275 – $40 = $235 (Incl. all $25 in overhead)

For the formula product – F1:

And for the by-product – B1:

Second sales order
Let’s create another sales order for 20 kg F1, to see how planning handles a shortage of the recycled by-product.

Running the explosion on the sales order will generate a planned batch order to produce the 20 kg. Notice the planned order for B1.

We still have plenty of M1:

We have 80 kg and we need 40 kg for the additional order.

However, we are running short of B1:

Initially, we had 15 kg. The first batch order consumed 10 kg and output was 8 kg, so now we have 13 kg.
For the new order we need 20 kg, so a planned order for 7 kg is created to cover the missing ingredient.

Summary:
With HF 2989470 that is included in Microsoft Dynamics AX 2012 R3 CU8, it is now possible to recycle and reuse by-product output from batch orders.

The recycled product must use standard cost and have the production type, By-product or Co-product
On the formula, co-product output must be of the type, By-product, and have the Burden type, Recycled
Planning will now consider only on-hand inventory for by-products. So potential supply from batch orders is not used for pegging until the batch order output is posted.