16 Dynamics 365 Features Designed to Enhance Production Processes

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Dynamics 365 is a powerful ERP solution manufacturers can use to take control of their operations and data and built to save time and resources doing it.
powering intelligent manufacturing

It is truly a next-generation system built around optimizing various processes, and this blog will take a look at how it enhances production capabilities through its versatile features.


Workspaces are customizable, role-based interfaces of Dynamics 365. A redesigned, yet familiar user interface allows interactions between your workforce and real-time data to happen effortlessly on all devices. Dynamics 365 offers roles such as: Operations Manager, Production Manager, Environmental Manager and Shop Supervisor. These improve decision making by presenting employees with key performance metrics and optimization suggestions.

Material and capacity planning

This feature helps organizations optimize production and materials planning, forecasting and scheduling. You can simultaneously schedule materials and capacity, as well as calculate available-to-promise and capable-to-promise deliveries. Additionally, you can plan and execute routing and operations, as well as use finite or infinite planning.

Production scheduling and sequencing

Within this feature, you’ll be able to use finite or infinite scheduling, forward and backward from various dates. Quickly (re)scheduling jobs and simulating alternatives by dragging Gantt chart items is also possible. Scheduling overloads can be resolved by reassigning operations to alternative work centers. Scheduling can be optimized across the organization with a unified resource model and scheduling engine. Apart from that, you can improve machine utilization by combining similar products while letting customers request multiple quality specifications per product (product batch sequencing).

Resource management

This capability of D365 lets you schedule and track material, shop and manpower resources. Plan resources based on production activities and capabilities of resources. Types of resources include: tool, machine, vendor, location and human resource. Resource allocation principles include resource requirement types: resource (group), type, capability, skill, course, certificate and title.


With this feature, you can manage different ways of partnering with subcontractors, including outsourcing of route operations, vendor-supplied items and item provisioning to subcontractors. You can also link subcontractor purchase order to production order.

Production Bill of Materials (BOM, formulas, recipes)

Create a bill of materials for production, including phantoms, with the help of a graphical BOM designer. You can also modify and track individual line items. Manage multilevel formulas or recipes, co-products and by-products. Use version control to release the right BOM and electronic signatures to track changes.

Product configuration

This feature lets you configure custom products with a unique bill of materials and routing by using the product configurator. The product configuration models are based on constraints and can be used from sales order, sales quotation, purchase order and production order


This is where you’ll manage your routing. You can plan simple, sequential and complex networks or use simultaneous routes in the same network. Use rough-cut capacity and detailed scheduling capabilities. Organize the shop floor into logical production units at individual sites.

Production orders

Within this feature, you can create, schedule, view, track, split, roll back or categorize production orders to maximize efficiency. Create production orders from sales orders. Follow production through creation, estimation, schedule, release, started, finished and cost. Use scrap on BOM, resource and route. Trace products and components through the entire manufacturing process and enable bi-directional traceability from customers back to vendors—and vice-versa.

Production reporting

With production reporting, you’ll gain insight with predefined KPIs in the SQL Server analysis data cube for production.

Inventory dimensions for process manufacturing

Define multiple inventory dimensions, including dual units of measure, catch-weight calculations, packaging codes, variations to the main item and lots.

Potency management

Manage the concentration of an active ingredient through the entire manufacturing process. Enable manufacturers to model potency at each and every step of their manufacturing processes, which allows them to meet their industry-specific requirements while giving them a significant competitive advantage.

Lean manufacturing

Model manufacturing and logistics processes as production flows. Use kanbans and kanban boards to signal demand requirements.

Production costing

Understand work in progress (WIP) and actual cost through production tracking and reporting. Track detailed resource and throughput costs, including work center costs. Report production variances to standard costs.

Product change management

This feature enables you to effectively manage product changes through a formal product changes methodology. With it, you’ll be able to have a defined process to initiate, document, approve and release changes to product during the planning and production cycles.

Shop floor control

Within this feature, you can manage and track shop floor operations. You’ll also be able to register products and resources and items for operations and jobs including touch-enabled data entry.

Provide shop floor workers with visibility via an overview of the production jobs that need attention. Quickly perform daily production tasks such as starting jobs, reporting jobs as finished and registering breaks and absence.


With these capabilities, D365 becomes an awe-inspiring system designed to get the most out of manufacturing processes.

Whether it’s minimizing time-to-value processes, helping organizations fulfill customer demand, enhancing resource management or preparing you for a lean approach to business, there is no shortage of options when relying on it.

Flexibility and change are part of the Dynamics 365 core mechanisms, so you’ll never feel like you’re behind when handling manufacturing operations and preparing for the future.

With Merit Solutions as your partner, you can not only implement a powerful system to help you drive better results, but learn from our industry expertise and count on our support at any moment.

To get a more detailed view of what upgrading to D365 offers, visit this page.

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