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Manufacturing Types in Business Central

Jun Wang Profile Picture Jun Wang 4,053 Super User
Manufacturing Types in Business Central

Manufacturing processes are pivotal to the production industry, providing the methods and systems used to produce goods. In Microsoft Dynamics 365 Business Central (BC), manufacturing functionalities are robust, catering to various types of production. Two primary manufacturing types prevalent in the industry are Process Manufacturing and Discrete Manufacturing. This blog delves into these types, highlighting their characteristics, differences, and how BC supports them.
Process manufacturing is a production method that involves creating goods by combining supplies, ingredients, or raw substances using a formula or recipe. It is common in industries where products are produced in bulk, such as food and beverages, pharmaceuticals, chemicals, and cosmetics.
Discrete manufacturing involves assembling products using parts, pieces, or components. It is characterized by distinct items and countable production units. Industries such as automotive, electronics, furniture, and machinery typically use this manufacturing type. BC supports discrete manufacturing through:

1. Bill of Materials (BOM): BC allows for detailed BOM management, where each product can have its list of parts, including quantities and specifications, ensuring accuracy in production and assembly.
2. Routing: It defines the manufacturing process workflow, specifying the sequence of operations, the machines or work centers involved, and the time required, optimizing production efficiency.
3. Production Orders: Supports the creation and management of production orders, scheduling, and tracking, providing visibility into the manufacturing process, from order placement to final assembly and delivery.
4. Inventory Management: Offers precise inventory control, enabling the tracking of parts and components, managing stock levels, and minimizing excess inventory or shortages.
- Nature of Products: Process manufacturing deals with formulas and recipes, producing goods that cannot be disassembled into their constituents. In contrast, discrete manufacturing assembles products from individual parts, which can be broken down into their original components.
- Production Flexibility: Process manufacturing often involves continuous or batch production, while discrete manufacturing is characterized by distinct production runs and assembly lines.
- Inventory Needs: Raw materials in process manufacturing are typically measured in weight or volume, leading to a focus on lot traceability and quality control. Discrete manufacturing focuses on the count, unit measurements, and managing parts inventory.
- Regulatory Compliance: Process manufacturers often face stricter regulatory controls due to the nature of their products, requiring robust tracking and documentation functionalities.

In conclusion, Microsoft Dynamics 365 Business Central offers comprehensive functionalities tailored to both process and discrete manufacturing needs. It provides businesses with the tools to manage their manufacturing operations effectively, ensuring efficiency, quality, and compliance. Whether your business is involved in the intricate assembly of products or the formula-based production of goods, BC equips you with the necessary features to streamline your operations, adapt to market demands, and drive growth.