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12Hi everyone,
I need some guidance on the best way to model a multi-stage manufacturing + subcontracting process in Microsoft Dynamics 365 Business Central.
Business scenario
We have parts that go through both outside processing and in-house processing before becoming a finished good.
Example:
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AL565= raw material -
raw material is sent to Tool Tech for water jet cutting
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it comes back as
31-4407-1-CMP1 -
then we do de-nubb / de-burr in-house
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it becomes
31-4407-1-CMP2 -
then it is sent to Hohman for plating
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it comes back as
31-4407-1-CMP3 -
after final inspection, it becomes finished good
31-4407-1
So in reality, the item moves through multiple identifiable stages:
raw material → CMP1 → CMP2 → CMP3 → finished good
Current design question
I am trying to decide which Business Central approach is the better fit.
Option 1: Separate item numbers + separate production orders
Create separate item numbers for:
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CMP1
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CMP2
-
CMP3
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Finished Good
And then use:
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separate Production BOMs
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separate Routings
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separate Production Orders for each stage
This seems better for:
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stage-wise inventory tracking
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costing by stage
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traceability
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subcontract receipt visibility
Option 2: One finished good production order
Create only the finished good as the produced item, and handle CMP1/CMP2/CMP3 only as routing stages / operations within one production order.
This seems simpler from a master data perspective, but I am not sure whether it is the best option when outside vendors are involved and when the business informally treats CMP1/CMP2/CMP3 as meaningful stages.
What I want to understand
I would really appreciate opinions from anyone who has implemented a similar process in BC:
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In Business Central, would you model CMP1 / CMP2 / CMP3 as separate item numbers, or only as routing stages?
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For outside vendors like Tool Tech and Hohman, would you recommend handling this through subcontracting linked to production orders, or through normal purchase transactions?
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If the intermediate stages are important operationally, is it generally better to create separate production orders for each stage?
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What are the pros and cons you have seen in real implementations for both approaches?
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Which approach gives better results for:
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costing
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planning
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traceability
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inventory accuracy
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ease of use for the production team
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My current thought
I am leaning toward separate item numbers + separate production orders because the business already thinks of CMP1, CMP2, and CMP3 as separate stages, and the part is physically moving in and out of vendors between stages.
But I would like to hear from people who have handled this in actual Business Central manufacturing/subcontracting setups.
Thanks in advance.
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