In Dynamics 365 F&O/SCM, a production order represents a task to manufacture a specific quantity of an item. It serves as the central hub for tracking and managing production activities, including the consumption of materials, labor, and machinery. The production order goes through multiple stages like creating, scheduling, releasing, starting, and reporting as finished, ensuring that the entire process from raw materials to finished goods is accurately recorded.
Steps in a Production Order:
1. Creation: A production order is created based on a sales order or demand forecast. It specifies the item to be produced, the quantity, and the due date.
2. Scheduling: This step involves assigning resources such as labor, machines, and tools to ensure the production timeline is feasible. The scheduling can be forward (starting as early as possible) or backward (working from the due date).
3. Release: When all materials and resources are available, the order is released, signaling the start of production. This allows material picking and production tasks to commence.
4. Production: During this phase, the raw materials are consumed, and work progresses on the production floor. Time and resource consumption are tracked, along with the status of the production.
5. Report as Finished: Once the production is completed, the items are reported as finished, and the produced quantity is moved to inventory.
6. Costing: Finally, the system calculates the cost of production based on material usage, labor, and overhead costs.
Use Case Scenario for Lifestyles:
At Lifestyles, you may create a production order for a batch of condoms. For example, if there is an order to produce 10,000 condoms of a specific type (e.g., lubricated), a production order will be generated specifying this quantity. The necessary materials, such as latex and lubricants, would be allocated. The scheduling ensures the availability of machines used for molding and quality checks. Once production is completed, the finished goods will be recorded in inventory, and the total cost of producing these condoms will be calculated, including materials, labor, and machine usage.
This process helps Lifestyles track production costs and ensure timely manufacturing to meet demand efficiently.