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Case study · Discrete manufacturing

Plans the shop floor can actually follow

Discrete manufacturers juggle engineering changes, capacity limits and customer dates. This is how we set up Dynamics 365 Supply Chain Management with clean BOMs and routes, master planning and shop floor execution, so plans reflect what the factory can really do.

Project overview

Production planning and execution on D365 SCM.

Industry
Discrete manufacturing
Client
Confidential
Solution
Manufacturing ERP
Platform
D365 SCM + Finance
Timeline
9–14 months
Team
6 people
Planning
Master planning with capacity
Shop floor
Production floor execution
Costing
Standard cost with variances

Expected business outcomes

What the client set out to achieve

Planning accuracy and on-time delivery are the headline measures.

  • 5–15 pts Better on-time delivery

    Plans respect capacity and material availability.

    Percentage-point range; depends on starting data quality

  • 10–25% Lower work in progress

    Production released according to plan, not by habit.

    Target range after two to three planning cycles

  • Per order Production cost variances

    Actual versus standard cost visible for every production order.

    Where time and material are reported on the shop floor

Business challenges

How manufacturing planning worked before

The ERP holds orders; the plan lives in a spreadsheet next to it.

Engineering

BOMs maintained in engineering tools and copied into the ERP by hand.

Planning

A planner's spreadsheet decides what gets made each week.

Shop floor

Paper travellers and end-of-shift reporting.

Materials

Shortages discovered when a job is about to start.

Costing

Product costs updated once a year and rarely compared with actuals.

Proposed solution

What the Supply Chain build covers

Standard manufacturing features, with data quality as the foundation.

  • BOMs and routes

    Engineering data with versions, operations and resources, synchronised from engineering.

  • Master planning

    Planned orders from demand, stock and capacity, reviewed by planners.

  • Production control

    Release, scheduling and tracking of production orders.

  • Shop floor execution

    Operators report time, quantities and scrap on tablets.

  • Quality management

    Inspection plans and non-conformances tied to production.

  • Costing

    Standard costs and variance analysis per order and product.

Project requirements

What the client asked us for

The request was better planning. Planning is only as good as BOMs, routes and capacities, so engineering data quality is a first-class workstream.

Shop floor reporting closes the loop: without real times and quantities, plans and costs drift.

What the project had to deliver

  • 01Accurate BOMs and routes
  • 02Plans that respect capacity
  • 03Real-time shop floor reporting
  • 04Costs compared with actuals

Key challenges & considerations

What made it harder, and what we did

  1. Engineering changes during implementation

    What we did

    Engineering data was run as its own workstream, with changes controlled through release management.

  2. Inaccurate routing times

    What we did

    Routing times were validated with operators on the shop floor and corrected before planning relied on them.

  3. Operators unused to reporting

    What we did

    Shop floor reporting was piloted on one line, with screens designed for a gloved hand.

  4. Mixed make-to-stock and make-to-order

    What we did

    Planning was configured for both make-to-stock and make-to-order items and tuned over several cycles.

What we watched for

  • Treat engineering data as a workstream
  • Tune planning parameters over several cycles
  • Pilot shop floor reporting on one line
  • Validate routing times with operators

Development process

Data, planning, execution, costing

Each layer depends on the one before it.

  1. Stage 1

    Engineering data

    BOMs and routes cleaned, validated and loaded.

  2. Stage 2

    Planning design

    Coverage rules, capacities and planning parameters set and simulated.

  3. Stage 3

    Shop floor

    Production floor execution piloted on one line.

  4. Stage 4

    Quality and costing

    Quality orders and standard costing configured.

  5. Stage 5

    Go-live and tuning

    Full go-live and several cycles of planning parameter tuning.

Technology stack

Dynamics 365 SCM for manufacturing

Microsoft's manufacturing capabilities with engineering integration.

ERP

  • D365 Supply Chain Management
  • D365 Finance
  • Planning Optimization

Shop floor

  • Production floor execution
  • Tablets

Engineering

  • Engineering change management
  • PLM integration

Reporting

  • Power BI
  • Production KPIs

Quality assurance & deployment

Rehearsed until cut-over was routine

Finance and supply chain systems cannot be tested in production. Processes were proved end to end in test environments, and the cut-over was rehearsed until it held no surprises.

  • End-to-end process tests across finance and operations
  • Automated regression tests for standard and extended processes
  • Data migration rehearsals, reconciled entity by entity
  • User acceptance testing by business process owners
  • Performance tests at real transaction volumes

Deployment

  • 01Quality and costingQuality orders and standard costing configured.
  • 02Go-live and tuningFull go-live and several cycles of planning parameter tuning.
  • 03Rehearsed cut-overA timed cut-over plan, rehearsed at least twice, with a go or no-go decision by the business.
  • 04Hypercare and warrantyOn-site or remote support through the first period close, and six months of free bug fixing.

Final deliverables

A factory that runs to plan

Plans are built from accurate data and real capacity, operators report on the shop floor as they work, and material shortages surface before they stop a line.

Finance sees production costs per order and understands variances while they can still be acted on.

  • Clean engineering data
  • Capacity-aware plans
  • Live shop floor reporting
  • Order-level costing

Handed over to the client

  • 01Configured Dynamics 365Production and test environments
  • 02Extensions and integrationsSource code and documentation
  • 03Migrated dataReconciled entity by entity
  • 04Process documentation and trainingBy business process
  • 05Six-month warrantyFree bug fixing after delivery

Success metrics

How success is measured

MeasureOutcomeHow it is measured
Better on-time delivery 5–15 pts Percentage-point range; depends on starting data quality
Lower work in progress 10–25% Target range after two to three planning cycles
Production cost variances Per order Where time and material are reported on the shop floor

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