30 May Microsoft Dynamics AX 2012 Manufacturing with Lean Operations
Stable wage growth, sustained productivity gains, steady exchange rates, and a the 50-percent drop in natural-gas prices due large-scale production of shale gas that began in the US in 2005, has lead to improved profitability of US manufacturering over the past few years, according to a report from the Boston Consulting Group (BCG).
“While labor and energy costs aren’t the only factors that influence corporate decisions on where to locate manufacturing, these striking changes represent a significant shift in the economics of global manufacturing,” said Michael Zinser, a BCG partner who is coleader of the firm’s Manufacturing practice. “These changes should drive companies to rethink their sourcing strategies, as well as where to build future capacity. Many will opt to manufacture in competitive countries closer to where goods are consumed.”
That means US manufacturers are more likely to consider US soil for future manufacturing sites as well as Mexico. Traditionally low-cost manufacturing nations like China and Russia have contrastingly seen increase overhead expenses, the report said.
Microsoft Dynamics AX 2012™ supports low cost manufacturing. This video shows how Dell was able to support a leaner, more agile manufacturing operation with Microsoft Dynamics AX 2012 Manufacturing
As emerging manufacturers go to market in an increasingly friendly environment, and established manufacturers bring their facilities back the to the US, manufacturing management software like cloud based ERP for manufacturing will likely see and increasing adoption numbers.
MIcrosoft Dynamics AX™ 2012 R3, the latest release of Microsoft’s most power ERP package, delivers a comprehensive solution for managing discrete, process, and lean manufacturing including:
- Execute multiple production strategies, including configure-to-order, assemble-to-order,make-to-stock, and make-to-order. Use both push and pull production control mechanisms.
- Optimize production and materials planning, forecasting, and scheduling.Simultaneously schedule materials and capacity.
- Calculate available-to-promise (ATP) and capable-to-promise (CTP) deliveries.
- Create, schedule, view, track, split, roll back, or categorize production orders.
- Understand 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.
- Modelmanufacturingand logistics processes as production flows.
- Use kanbans to signal demand requirements.
- Monitorand manage kanban jobs using kanban boards.
Additionally, Dynamics AX 2012 R3 features improvements to the overall manufacturing capabilities to support
- Product Information Management
- Shop floor Control
- Inventory Management, Master Planning, and Quality Management
- Warehouse Management
- Procurement and Sourcing
Check out the fact sheet above to see more on Microsoft Dynamics AX 2012 manufacturing functionality