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• Evaluation of Implementation Proposals by Dynamics AX R&D Solution Architecture & Industry Experts

• Gain further insights on Dynamics AX Industry Solution Offerings

• Resolution Guidance on Solution Roadblocks

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Tuesday 2.15pm – 5.45pmRisso 6C

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registered trademarks and/or trademarks in the U.S. and/or other countries. Other names and brands may be claimed as the

property of others.

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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.

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NICE,FRANCE

LEARN | INSPIRE | INNOVATETECHNICAL CONFERENCE 2011

UNIFYING THE PREVIOUSLY DISPARATE CONCEPTS OF LEAN, MRP, DISCRETE, AND PROCESS MANUFACTURING

ULRIK MØLGAARD HONORÉ

SESSION CODE : BRK233

SENIOR PROGRAM MANAGER

MICROSOFT CORPORATION

Today we will show you…

Unified concepts of lean, MRP, discrete, and process manufacturing

Mixed-mode manufacturing

How Microsoft Dynamics AX 2012 enables agility in a supply chain

How Microsoft Dynamics AX 2012 enables visibility across a supply chain

Intercompany

Components in Action Today

Lean

BOM / Route

Supply Chain Planning

Products

Vendor / Customer

Client

Public SectorServices SectorManufacturing Distribution Retail

Financials SCM Inventory Projects

CPM and GRC CRM HCM: HR & Payroll SRM

Horizontal Applications

Reference Data

Application Foundation

Master Data Application Primitives

Clients

Framework

Servers Tools

Technology Stack

Industry Sector Applications

Process

Period Template

Calendars

Pains and Challenges

Charlie – President• Needs supply chain agility to be able respond to changing

marketplace conditions and macroeconomic cycles

Vince – Operations Manager• Needs to continually improve operations efficiency – e.g.,

wants to gradually introduce lean manufacturing• Needs operations agility – e.g., wants ability to easily change

the supply policy for a product from build to buy

Eduardo – Production Planner• Needs master planning to work holistically in a multi-mode

manufacturing environment – e.g., plan material and resourcerequirements for both discrete and process manufacturing

• Needs full visibility into supply and demand across the supply chain

Unifying Manufacturing ConceptsProductionStrategy

ProductionControl

ProductionProcess

ProductStructure

Make to stockMake to order

Assemble to orderConfigure to order

ConvergentDivergent

Variant/Configurable

PushPull

DiscreteProcess

Product

Supply Policy

Pull /Push

Product Demos

# Title Key Features1. Supply policy and

supply visibility

Default order typeSupply schedule

2. BOMs and resources Reuse BOMs and resourcesacross supply policiesDynamic material andresource assignment

3. Intercompany planning and supply visibility

Intercompany supply policiesIntercompany planningIntercompany multilevel pegging

Product Structure

• A simple Bill of Materials Item A

Item B

Item C

Item D

Product Structure with Supply Policies DefiningMulti-Mode

• A simple Bill of Materials• Adding supply policies

Kanban

Production

Purchase

Intercompany

Batch / process

Item A

Item B

Item C

Item D

Customer

Comp1

Comp2

Comp3

Supply Chain Using Multi-Mode

Item A

Item BItem C

Item C Item C

Item D

Item D

Item D

Kanban

Production

Purchase

Intercompany

Batch / process

Item A

Demo 1: Supply Policy and Supply Visibility

•Supply policy

•Supply schedule

•Kanban rules

Persona Pain Points and Challenges

Features Covered

Results and Benefits

Eduardo Changing the supply policy for a product – e.g., from build using production orders to build using lean

Default order type

Easy to set and modify how products are suppliedMore agile supply chain

Eduardo Visibility to supply and demand for a product across all supply policies

Supply schedule

Central navigation and overview for planner

With Microsoft Dynamics AX 2012

Concepts and Definitions

•Supply policies – Define how a product is supplied in Microsoft Dynamics AX 2012 –

We can supply products by production (discrete/process), purchase, kanban, and transfers

•Planned kanban order– A new planned order type introduced in Microsoft Dynamics AX 2012 – Carrier for derived demand through the LEAN process– Demand for a product with a scheduled kanban rule will generate a

planned order of type Planned kanban

Demo 2: BOMs and Resources

• Reuse of bill of materials and resources across supply policies

• Dynamic allocation of material and production resources based on production location and resource capability

Persona Pain Points and Challenges

Features Covered Results and Benefits

Emil Has little knowledge of where or how the product is produced. Difficult to maintain specific warehouse and resource information

Bill of materialsResource modelDynamic material and resource assignment and consumption

Material location and specific production resource decoupled from supply policyEnables supply chain agility

With Microsoft Dynamics AX 2012

Concepts and Definitions

•Resource consumption– Setting on the bill of materials, indicating that the ”where” of the BOM line is

dependent on where the product is produced, at what resource

– Will work across multiple supply policies

– If supply is a production order, the warehouse will be determined when the resource is

scheduled

– If kanban, the warehouse would be found from the work cell definition

Demo 3: Intercompany Planning and Supply Visibility•Intercompany supply policies•Intercompany master planning•Intercompany supply visibility

Persona Pain Points and Challenges

Features Covered Results and Benefits

Eduardo Supply and demand visibility across companies

Multilevel pegging

Very easy to get supply and demand overview

Eduardo Master planning across companies

Intercompany planning

Products can be supplied based on individual company needs

With Microsoft Dynamics AX 2012

What We Showed Today…

• How Microsoft Dynamics AX 2012 unifies disparate supply policies into an integrated supply chain

• How Microsoft Dynamics AX 2012 flexibility enables agility in the supply chain

• How Microsoft Dynamics AX 2012 provides visibility into supply and demand across a supply chain

With This Release You Now Can…

• Have a fully integrated supply chain that uses multiple supply policies

• Minimize the complexity of your data setup by reusing BOMs and resources across multiple supply policies

• Gain visibility into supply and demand across a supply chain that uses multiple supply policies

• Evolve your supply chain by gradually introducing new supply policies – e.g., introduce lean manufacturing

What Did We Do in This Release?

• Integrated support for discrete, process, and lean manufacturing using push or pull– Support multi-/mixed-mode manufacturing

– Provide enhanced MES capabilities

• Created a capabilities-based model for resource definition and scheduling that is unified across discrete, process, and lean

• Enhanced planning and visibility across an intracompany and intercompany supply chain

• Enhanced reuse of BOMs and routes

• Created a constraint-based product configuration tool

Top 10 Tips from the Session

• One supply chain, independent of supply policy

• Production strategy, control, process, and structure can be defined independently

• Resources defined once, used in LEAN, Process, Production, MES

• Visibility cross whole supply chain / legal entities

• Intercompany for planned demand and supply

• Product configurator across legal entities, only release selling item

• Reuse BOM definition independent of strategy, control, process,and structure

Related SessionsTime Monday Tuesday Wednesday

10:30–11:45

13:00–14:15

14:30–15:45

16:30–17:45

18:00–19:00

19:15–20:15

BRK233Unifying the previously disparate concepts of Lean, MRP, Discrete,

and Process Manufacturing

Ulrik Molgaard Honore

BRK232Product Information

Management

Ievgenii Korovin

BRK235Materials Planning & Resource Scheduling – A New Approach

Anders Sorensen ; Soren Vagn AndersenCHK202

Upgrading items to products

Ievgenii Korovin

BRK250Introduction to the basics of Lean Manufacturing for Dynamics AX 2012: Kanban framework and

replenishment strategies.Conrad Volkmann; Guido Rennock

BRK246Purchase Order Management

Henrik Andersen; Kenneth Puggaard

CHK221MRP fundamental changes

Anders Sørensen, Roxana Diaconu

CHK209Cost Management Processes in

Dynamics AX 2012

Anders Even Girke

CHK210Materials Planning and Resource

Scheduling – A New Approach Q&A

Anders Sorensen ; Soren Vagn AndersenBRK234

Configuring Products Using the Constraint-Based Approach

Dennis Conrad

CHK203Manufacturing Scheduling

Engine Diagnostics

Anders Sørensen

CHK219Product Configuration – Deep

Dive from a Developer Viewpoint

Dennis Conrad, Najimi Sebghatullah

BRK247Sales Order Management and

Agreements

Henrik Andersen; Kenneth PuggaardBRK251

Introduction to advanced scenarios of Lean Manufacturing

for Dynamics AX 2012: Production flows and activities

Conrad Volkmann; Guido RennockBRK236

Manufacturing Execution and Time & Attendance

Ulrik Molgaard Honore

BRK244Dynamics AX 2012 Process

Manufacturing

Johan Hoffmann

Q&A

Visit our Focus Rooms

Public SectorServices

IndustriesManufacturi

ngSolution

ArchitectureRetail

• Evaluation of Implementation Proposals by Dynamics AX R&D Solution Architecture & Industry Experts

• Gain further insights on Dynamics AX Industry Solution Offerings

• Resolution Guidance on Solution Roadblocks

• Networking

Focus Topic HighlightBusiness Intelligence

Tuesday 2.15pm – 5.45pmRisso 6C

Risso 8ARisso 7BRisso 7ARisso 6CRisso 6A/B

© 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows 7 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.