Project -production

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Posted on by lally

Hi All ,

As we all know that project module can be used for service industries and manufacturing industries also , i already has the sound knowledge on the AX application project module for service industry point of view .

Could any one tell me how Ax project module support for manufacturing companies , please explain with an example.

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lally 8 on at

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Could any one tell me how Ax project module support for manufacturing companies , please explain with an example.

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lally 8 on at

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Could any pioneer guide me how Ax project module support for manufacturing companies , please explain with an example.

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Weaveriski 23,620 Moderator on at

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So a manufacturing company may manufacture a machine that takes weeks to make, the machine maybe part of a project or it maybe the project. This enables the business to hold costs associated with the delivery like the design or installation, elements that are not direct to the cost of the product but form part of the cost of the project.

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Tim Schofield on at

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Agreed. A manufacturing company might use a Dynamics AX project to manage tool development; or new product development (especially for instance if there was some R&D aspect that might attract grants; or a partnership with another company which was going to cover some of the costs). Or a project might be used to capture the costs of plant maintenance activities - or even a marketing campaign. You might even use projects to manage after sales activities like installation and commissioning, and of course you've already mentioned service. although if you're a manufacturing company you'd read that as 'after sales service'

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Ludwig Reinhard Microsoft Employee on at

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Hi Lally,

An example would be a production company that wants to analyze all costs associated with a customer separately to get a "LifeCycle" cost analysis. Example: If you simply sell products to a customer via an ordinary sales order you can identify the costs and revenues associated with this sales order. By using projects you can better track what happened with the customer over ... years for analysis purposes. In such a scenario you could setup one project for each customer and use subprojects for each sales order (and everything associated with it) to track all costs in a single project.

Anther example would be a production company that produces customized items not on stock but rather based on specific customer orders. If it is not sufficient to only analyze the direct material costs of the items sold, you can use Projects to track the whole costs associated with a customer order incl. separate production costs, Engineering hours, etc.

I believe that you can find several other scenarios for using projects in production companies.

Hope it helps,

Ludwig

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lally 8 on at

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Thanks pioneers for your replies ,

Assume that our company is a manufacturing company may manufacture a machine that takes weeks to make and required many components required to make the machine.

Can we plan that against the sales order what are all the rawmaterials required and on which date required like MRP ,create the PO from there against the project , create production order for the project , receiving the material against the Project PO...

Do we have the above all functionality in Ax 2012 for the project manufacturing point of view ?

Thanks in advance.

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Weaveriski 23,620 Moderator on at

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Yes. It is a works order from a project, so everything else is as though it was a works order - the cost of the raw material to make the BOM is not a project PO because that would double the cost as it is absorbed into the project at receipt and then part of the production cost, but you really need to start working through and understanding the concepts. Raise a works order from a project, run MRP.

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