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Manufacturing groups of subassemblies to make the Final product

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Posted on by October Sky

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Our company has a finished product that contains over 200 subassemblies.
As with such a product it takes about 2.5 months to manufacture completly.
We are NOT using Phantom BoMs.
It is completed in 6 phases with each phase representing a group of subassemblies completed. We have the option to create
an Item number representing a group of subassemblies for each phase in BC.
The final phase then takes all the grouped subassemblies (with some welding operations) to complete the final product.
How can I optimally set up routings and Production Orders for this scenario?
Do I still have to create routings for each subassembly and create individual production orders for each subassembly
or can I create a Production Order that represents a Phase to manufacture a group of subassemblies but I'm unsure
how the routing would be setup then. Which Item card would get a routing attached to it (the subassembly or the group of
subassemblies or both)?

The ultimate aim is to reduce the number of Production Orders to have to work with.

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Dynamics 365 Business Central

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Jainam M. Kothari 15,639 Super User 2025 Season 2 on at

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Hello,

To efficiently manage a finished product with over 200 subassemblies and a 6-phase production cycle, you can optimize your setup by creating phase-level item numbers that represent grouped subassemblies.

Each phase item can have its own routing and Production BOM, allowing you to create a single Production Order per phase rather than for each individual subassembly. This reduces complexity and the number of production orders.

The routing should be attached to the phase item card, not the individual subassemblies, unless those subassemblies are also manufactured independently.

The final product’s routing would then include operations for assembling all phase items and any final processes like welding.

This modular approach streamlines planning, tracking, and execution while maintaining flexibility and control.

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Jeffrey Bulanadi 8,760 on at

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Hi October Sky

This is a great use case for phased manufacturing, and Business Central can definitely support it with the right setup

Since you’re not using Phantom BOMs and you want to reduce the number of production orders, grouping subassemblies into phase-level items is a solid approach. You can create an item for each phase, assign a routing to that item, and include the relevant subassemblies in its BOM. That way, each phase becomes its own production order, and you only need one final production order to assemble everything together

Here’s what you can do

Create an item card for each phase

Assign a routing to each phase item that reflects the operations needed to build that group of subassemblies

Set up a BOM for each phase item that includes the subassemblies

For the final product, create a BOM that includes all phase items and any additional components like welding materials

Attach a routing to the final product item that covers the final assembly steps

This setup lets you manage production in chunks, keeps your production orders organized, and avoids having to create one for every single subassembly
There’s a helpful breakdown of this approach in this article https://erpsoftwareblog.com/2023/03/business-central-sub-assembly-manufacturing/

Let me know if you want help mapping out the routing structure or BOM hierarchy. If this helped, feel free to mark it as the suggested or verified answer

Cheers
Jeffrey

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Mansi Soni 8,909 Super User 2025 Season 2 on at

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Hello,
You can structure your production using nested production orders without having to create routings for every individual subassembly. Instead of managing each subassembly separately, define phase-wise production items (one per phase) that group relevant subassemblies logically. Assign a routing only to the final finished item, which includes operations for welding and final assembly. For the subassemblies within each phase, define them as assembly BOMs or standard items (if no routing is needed) and link them to the phase-level item’s BOM.

Then use Planning or Firm Planned Production Orders for each phase, and configure your MRP to auto-generate these based on demand from the final item.

https://dynamics.folio3.com/blog/business-central-manufacturing-setup-for-sub-assemblies/
https://community.dynamics.com/blogs/post/?postid=b1407a31-866b-4995-a966-b68e172f02b1

Hope this will help you as well!

Regards,
Mansi Soni

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Ben Baxter 6,620 Super User 2025 Season 2 on at

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You are not going to be able to get into the detail needed using this forum. The system can do exactly what you're wanting to accomplish, but you need to work with a partner who truly understands BC's Manufacturing. Hopefully you have that partner today, and I would encourage you to reach out to them to schedule time with their Manufacturing expert to discuss this in more detail. There are a lot of moving parts to get this configured how you would need it, and unfortunately this forum won't deliver the same results as 1-on-1 sessions with your partner.

Best Regards,

Ben Baxter

Accent Software Inc

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RockwithNav 8,637 Super User 2025 Season 2 on at

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You may receive multiple suggestions for this scenario-based situation, but even then, it might not be easy to arrive at the right solution. I believe this will require some back-and-forth discussions and configuration trials before making a final decision. No one is entirely right or wrong, as everyone will share insights based on their own experience—which may or may not apply in your specific case. If you'd like to try any of the suggestions, you're welcome to do so, but make sure to evaluate all possible scenarios first. As a general recommendation, I would encourage you to consider using Phantom BOMs, as they can help simplify the process.

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Curator 178 on at

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Hi Jeffrey

What you have proposed is essentially a phantom BoM for each phased item and the preference is not to use the phantom structure. It is unusual the BC does not allow grouping of sub assemblies that are make-to-order (without a phantom structure) to represent something like a phase rather than 1 whole production order for the complete product.

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YUN ZHU 95,729 Super User 2025 Season 2 on at

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I agree with Ben. You can first learn the standard functions of BC Manufacturing. If they cannot meet your needs, please contact the local partner to discuss whether it can be customized.

Thanks.

ZHU

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Gerardo Rentería Ga... 25,236 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

Learn about Manufacturing in Business Central - Watch free videos

Best Regards
Gerardo

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Sohail Ahmed 11,150 Super User 2025 Season 2 on at

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In your case, where manufacturing is done in structured phases using grouped subassemblies, it is possible to optimize the setup by creating one item for each phase (as a group of subassemblies) and assigning a routing to each phase item rather than to every single subassembly. Then, the final item will have its own routing that uses the phase items as components.

This approach lets you create one Production Order per phase, significantly reducing the number of Production Orders overall. However, setting this up correctly requires careful planning of your Item Cards, BOMs, and Routings, especially since you are not using Phantom BOMs.

To get this working properly and avoid disruptions in costing, capacity planning, or inventory tracking, it's highly recommended that you work with your Microsoft partner. They can help design a structure that fits your production flow and keeps it maintainable.

✅ Mark this answer as verified if it helps you.

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