Production planning with Microsoft Dynamics 365 and the benefits of APS

Production planning is at the heart of every manufacturing organization. An efficient planning process ensures that production resources and raw materials are optimally allocated, employees are deployed efficiently, delivery times are met and costs are minimized.

Microsoft Dynamics 365 is a powerful ERP system used in many industries. But when it comes to complex production planning, experienced planners will find that the system falls short in a number of ways. Often, planning is then done in Excel, with all the error proneness and dangers that entails. In this blog, we discuss Dynamics 365’s main limitations when it comes to production planning and show how Advanced Planning & Scheduling (APS) systems can be a valuable addition.

1. Limited capacity planning

Dynamics 365 provides basic capacity planning functionality. But the functionality falls short for companies dealing with complex production lines or multiple production sites. The system often assumes fixed capacity and schedule per line, making unexpected disruptions or capacity issues difficult to manage. This can lead to delays and inefficiencies.

Advantage of APS:

APS systems provide advanced capacity analysis and real-time updates, allowing companies to react quickly to changes. In a proper configuration, a thorough and well-designed planning system actually has a virtual replication of the plant, in which all constraints and boundary conditions are simulated. This allows the system to make all possible simulations and very flexibly anticipate any disruption or capacity demand. This leads to better utilization of resources, less downtime and shorter delivery times.

2. Insufficient real-time optimization

Another disadvantage of Dynamics 365 is the limited ability to optimize schedules in real time. Responding flexibly in many cases requires additional analysis and manual adjustments, which is time-consuming and error-prone.

Advantage of APS:

APS software is separate from the ERP system and can therefore use computing power more efficiently. In addition, a limited number of solutions, such as Planwisely, use AI to quickly calculate the most optimal production scenario. This allows adjustments to be made at any time when deviations occur in production processes. For example, when an operator is sick or a large order comes in between. Because of the speed, daily schedules can be adjusted flexibly and quickly with new insights.

3. Integration with external data sources

Dynamics 365 has limited planning capabilities to integrate data from external sources. Consider, for example, integration capabilities with supplier portals, inventory systems and Manufacturing Execution Systems (MES). As a result, real-time relevant planning data is often not readily available. This limits the ability to make quick adjustments when deviations occur.

Advantage of APS:

APS solutions with open APIs can integrate seamlessly with an MES system, for example, making production data available in real time. This makes it possible to react quickly and optimize processes based on up-to-date information.

4. Limitations of Dynamics 365 in complex production environments

Dynamics 365 is ideally suited for standard make-to-stock production environments with predictable demand. But when it comes to, for example, production environments with a high product mix, complex batch rules, dynamic demand or many different volumes, the stranded functionality falls short. Standard scheduling options are then often insufficient to efficiently manage more complex production scenarios.

Advantage of APS:

APS systems are designed precisely to address these types of complex planning challenges and provide support for detailed planning strategies.

5. Multisite and multilevel planning.

Dynamics 365 does offer support for multisite manufacturing, but the capabilities are limited when there is a complex supply chain with multiple levels. For example, you can set products, parts lists, operations and scheduling parameters per site. But Dynamics plans separately for each site, so there is no advanced cross-site optimization. This makes it difficult to optimally plan centralized and distributed production.

Advantage of APS:

A number of APS solutions offer extensive multisite and multilevel planning capabilities. This makes it easier to coordinate production processes across multiple sites.

Conclusion

Although Microsoft Dynamics 365 is a powerful ERP system, it often proves inadequate for companies with advanced production planning needs. By integrating a separate APS solution, companies can benefit from advanced capacity planning, real-time optimization and deep integration with manufacturing processes. This creates a more flexible and efficient planning environment that can respond quickly to changing conditions.

Wondering how Planwisely APS can take your production planning to the next level? Then contact us for a no-obligation consultation!