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BC - Manufacturing or Assembly

  • 1.  BC - Manufacturing or Assembly

    Posted Jan 21, 2021 12:20 PM
    I'm looking to recommend either manufacturing or assembly.  The process is taking materials (designated more or less by BoMs) and putting them together for a mixed finished product.  Everything is either liquid or granular using a combination of gallons, cubic yards, liters and cubic meters (depending on the BoM design specs).  We have a plant in Canada and another in US which does add complexity but I'm getting off topic here.

    Which product would be best suited for this application?

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    Stephen Hoffort
    4036500530
    Calgary AB
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  • 2.  RE: BC - Manufacturing or Assembly

    TOP CONTRIBUTOR
    Posted Jan 22, 2021 05:56 AM
    I typically recommend manufacturing unless the operation is very simple like picking 2 different items from a shelf to make a kit.  Manufacturing has much more flexibility and features compared to Assembly orders.  FYI Assembly orders were originally called Kitting and that description better fits what I use them for.

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    Kevin Fons
    Senior Application Consultant
    Innovia Consulting
    Windsor WI
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  • 3.  RE: BC - Manufacturing or Assembly

    NAVUG ALL STAR
    Posted Jan 22, 2021 09:13 AM
    I agree with Kevin's assessment. Manufacturing provides a much more robust feature. Assembly orders are "instantaneous" in the system, whereas manufacturing allows for a more stepped approach as well.

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    Amanda Mayer
    NAVUG All Star
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  • 4.  RE: BC - Manufacturing or Assembly

    TOP CONTRIBUTOR
    Posted Jan 22, 2021 10:02 AM
    Hello,

    The simple answer, and I use often to explain the difference, is that Manufacturing is used to build finished products from components that, generally, you wouldn't sell on their own.  For example, Manufacturing is used to build a bicycle from the frame, chain, and wheels, etc.

    Assembly is most frequently used to combine finished goods into a pack size that the customer wants.  Following in the above example, you may manufacture a bicycle to stock, but then use assembly to combine completed bicycles into a case pack in the situation where WalMart wants a 6 pack case, but Target wants a 4 pack case of finished bikes.

    They two systems are not mutually exclusive.  As in the above situation, I have had many clients that use both manufacturing to build finished goods, AND assembly to build those finished goods into a case pack that is different by customer.

    I hope this helps,
    Victor Diercksen

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    Victor Diercksen
    CIO
    CIO/NOW Inc.
    Sandy UT
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  • 5.  RE: BC - Manufacturing or Assembly

    TOP CONTRIBUTOR
    Posted Jan 22, 2021 10:47 AM
    Stephen,
    I am fairly experienced in Assembly orders so here are the questions you should answer before chosing assembly order process ( at least IMHO):

    1. Do you have a need to schedule these orders? ( Assemblies generally are not scheduled are planned nor scheduled - difficult if you are using resources that need to be)
    2. Will you have the need to have alternate BOMS or alternate routings. This will include the need to have historical BOMS or routings? ( Assembly parts can have only one BOM and one set of resources)
    3. Are the Assembly orders closed within a single accounting or measurement period ( the assembly process doesn't really recognize WIP processing and wants to flush thru the P&L ( it shares the posting table with the adjust in/out functionality).

    If you answer YES to 1,2 or 3 --- you are probably better off with manufacturing orders.

    ------------------------------
    Michael Carr
    VP , Finance
    Philadelphia Scientific LLC
    MONTGOMERYVLE PA
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  • 6.  RE: BC - Manufacturing or Assembly

    Posted Jan 22, 2021 11:16 AM
    Edited by Stephen Hoffort Jan 22, 2021 11:18 AM
    All of your information was incredibly valuable:

    1. no need to schedule
    2. we do not resell original materials
    3. the product is prepared and completed in one day

    So basically either will work but manufacturing offers an more fluid and manageable path for future growth.

    Thank you

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    Stephen Hoffort
    4036500530
    Calgary AB
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  • 7.  RE: BC - Manufacturing or Assembly

    TOP CONTRIBUTOR
    Posted Jan 22, 2021 12:21 PM
    Stephen,

    I would tend to agree as a principle.

    .

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    Michael Carr
    VP , Finance
    Philadelphia Scientific LLC
    MONTGOMERYVLE PA
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  • 8.  RE: BC - Manufacturing or Assembly

    TOP CONTRIBUTOR
    Posted Jan 25, 2021 06:47 AM
    All good advice,, I would add, take into account the sophistication of your users. Manufacturing, while flexible may not fit with the experience level of your people. Use Assembly Orders if tracking actual labor is not important.



    Sent from my T-Mobile 4G LTE Device






  • 9.  RE: BC - Manufacturing or Assembly

    GOLD CONTRIBUTOR
    Posted Jan 25, 2021 09:24 AM
    Edited by Iaroslav Pankovskyi Jan 25, 2021 09:31 AM
    Adding to the previous replies. Think also about whether you need Routings (to make sure that users know how to "cook" all the ingredients). If you do, then you are quite likely looking at the manufacturing module.

    If you want to be able to build/put together your kits (assemblies) on the fly, i.e. only when they are ordered, you are quite likely looking at the Assemble-to-Order option.

    Finally, it does not have to be one or the other. It is possible to use both for different things. For highly similar, repeatable, complex things (e.g. build a car - always more or less same process, same components) - the manufacturing module can be used. For simple combinations of Items and Resources, Assemblies (either to Order or to Stock) can be used (e.g. combine an envelope and a post card and sell as a kit to a client).

    PS The manufacturing module requires the Premium license and all users (regardless whether they use manufacturing or not) must be moved to this more expensive type of licenses. Assemblies (to Order and to Stock) only require the Essential license. Either license type can be combined with the Team Member license. To read more about licenses, google "d365bc licenses" or "d365bc calculator".

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    Iaroslav
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  • 10.  RE: BC - Manufacturing or Assembly

    TOP CONTRIBUTOR
    Posted Jan 25, 2021 09:31 AM
    On big limitation I run into in Assembly orders is you can only backflush the material you cannot do manual consumptions where you use more or less of the components / ingredients.

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    Kevin Fons
    Senior Application Consultant
    Innovia Consulting
    Windsor WI
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  • 11.  RE: BC - Manufacturing or Assembly

    Posted Jan 25, 2021 09:52 AM
    Manufacturing is typically the way to go in most cases. Here's a short YouTube clip from a Business Central podcast that talks about the differences between Assembly and Manufacturing that may help you: https://youtu.be/GwvlNwGjc8U


    ------------------------------
    Michael Intravartolo
    Marketing Manager
    Solution Systems, Inc.
    Rolling Meadows, IL
    michael@solsyst.com
    847-590-3000
    www.solsyst.com

    A Shot of Business Central and A Beer Podcast: www.solsyst.com/podcast
    ------------------------------



  • 12.  RE: BC - Manufacturing or Assembly

    Posted Jan 25, 2021 11:45 AM

    We use both Manufacturing and Assembly, and both work fine to meet the need they addressed. One thing I will call out that has been an issue for us is an EDI shortcoming.

    We have a number of customers that require an ASN for shipments. We also use a separate application for managing our warehouse (shipments, receipts, etc.). We use assembly items to essentially pick to order certain Kits (grab X units of finished good A, Y units of finished good B, and Z units of finished good C and it all ships as  V units of finished good ABC). Unfortunately, our WMS never sees item ABC in stock, and the container data shows the components instead (A, B, and C). When this uploads to NAV, we post the assembly order to consume the components and create item ABC, which is then consumed itself as the sales order posts as shipped. We found this was an issue for ASNs because the customer doesn't know what the components are (we can't send an ASN container referencing A, B, or C), and also because there is no shipping container that actually contains ABC (it could have parts spread across multiple pallets). So, for those customers, we had to create a new item ABC2 that is produced by a production order. The routing instructs how to pack it so we can send the ASN (banded cartons, custom Pallets, etc). I'm sure others have resolved this problem, but we never have. Just something to consider if this might apply to you.



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    Jason Luchka
    Senior Enterprise Applications Analyst
    siffron
    Twinsburg OH
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  • 13.  RE: BC - Manufacturing or Assembly

    TOP CONTRIBUTOR
    Posted Jan 25, 2021 11:51 AM
    Edited by Kevin Fons Jan 25, 2021 11:53 AM
    If you set the Assembly items to Assemble to Stock vs Assemble to order, they will be put in inventory and then can be picked against the warehouse shipment.
    Using Assemble to stock will require you create the Assembly order from planning or manually and "output" them but they will then show in stock.

    You can also use the explode function that will explode the assembly order and create individual lines on the sales order for the components.

    There are always trade offs, especially in Make to Order environments.

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    Kevin Fons
    Senior Application Consultant
    Innovia Consulting
    Windsor WI
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  • 14.  RE: BC - Manufacturing or Assembly

    Posted Jan 25, 2021 11:59 AM
    Yes, but those solutions did not fit our need.

    Again, by using a third party to manage inventory and shipments/receipts, our environment is complicated. For example, us posting the assembly order to create FG inventory in NAV would not trigger the consumption of the components and the creation of the FG in the WMS system.

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    Jason Luchka
    Senior Enterprise Applications Analyst
    siffron
    Twinsburg OH
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  • 15.  RE: BC - Manufacturing or Assembly

    TOP CONTRIBUTOR
    Posted Jan 26, 2021 08:50 AM
    When you post the output of an assembly order, it does backflush consume the components from the designated bin and put the FG in stock for Assemble to Stock.

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    Kevin Fons
    Senior Application Consultant
    Innovia Consulting
    Windsor WI
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  • 16.  RE: BC - Manufacturing or Assembly

    Posted Jan 26, 2021 09:03 AM
    Yes, it does, in NAV. As I mentioned, our inventory is managed in a third party WMS system. This is getting off topic from the original post. I just wanted to bring up something regarding assembly orders that might impact others the way it has impacted us.

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    Jason Luchka
    Senior Enterprise Applications Analyst
    siffron
    Twinsburg OH
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