Process Manufacturing Step by Step Process

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Hellow everyone,
Hope you all are doing great, this will be my first ever blog post for process manufacturing, I will try my level best to cover the complete cycle of processes manufacturing. The approach is to explain all the relevant setups, configurations, and functionalities for process manufacturing in AX2012R3.
Process Manufacturing:
Process manufacturing is the branch of manufacturing that is associated with formulas and manufacturing recipes and can be contrasted with discrete manufacturing, which is concerned with discrete units, bills of materials and the assembly of components
Following are the high-level steps 
  • Generate the demand for finished good formula item by creating the sales order for P5006
  • Run the master planning for finished good formula item P5006
  • AX has generated the planned batch orders and planned purchase orders 
  • First, complete the production cycle for batch order P5000 (subformula item)
  • Complete the production cycle for batch order P5006(Finished good formula item)
  • Once the batch orders report as finished inventory will be available in finished good warehouse
  • Complete the sales order confirmation, picking, registration, packing and invoicing 
1- P5000-Parts Wash Solvent is Sub Formula for P5006, the Storage dimension is only activated for site and warehouse, Tracking dimension Batch number is activated for the item and Item model group is FEFO (First Expiry First Out) cost enabled
2- Item sales tax code by country
The item sales tax can be defined by country.
3- Item P5000 Price calculations
Check the item price and complete formula calculations on below screenshot
4- Formula P5000
Below is the approved and activated formula version for P5000.
5-Route
The route for P5000 contains only one operation that is Liquid mixing. Also, define the runtime and process quantity for the Route.
 
6- Route - Run time category
In the Route form, setup tab, define the runtime category(Direct Machine Cost).
Also, in the costing resource field define the resource which will perform this operation.  
7- Cost Category - Direct machine cost
In cost category form, define the cost group, WIP and cost accounts.
 
8- Resource (Mixer) for P5000
Resource 3201 is the mixer, which will be used on Route form in order to perform the mixing operation. 
9- Resource Capability
10- Resource Group Operation
In resource group form, select the resources, dimensions and runtime category. 
11- Resource Group - Financial Dimension Calendar and Resources
12- P5006 Finished Good Formula Item
P5006 is finished good item, below is the formula for the finished good.
There is only one ingredient for P5006 that is P5000.
13- Sales order for P5006 Finished Good
Create a sales order for the finished good P5006. Based on this sales order run the master plan and AX will generate the planned production order and planned purchase orders. 
14- Routes with operations (P5006)
Below is the screenshot of P5006 Route, there is only one operation (Liquid filling) for this route. 
15- Resource for P5006
The resource filler will be used to perform the filling operation. 
16- P5006 Route - Resource Requirement 
The resource filler is selected in route, in order to perform the filling operation. 
17- Run Master planning
Once all the setups are completed and demand is generated through sales order, run the master planning for the P5006 finished good item.
 
18- Planned Production order generated by Master Planning
Planned order type: Purchase orders
19- Planned Batch orders generated by Master Planning
Planned order type: Batch orders
20- Planned batch order number 2
21- Planned Batch order for Sub Formula Item
22- Planned Production order Created
23- Formula Calculations P5006
 
24- The Batch order is created through master planning for Sub Formula item P5000, Run the estimation for the Batch order
Batch order P5000 - Receipt Status: Ordered
Batch order P5000 Estimates - Price cacluations 
Batch order Update registration for P5000
Batch order P5000 registered
The status is registered in inventory transactions
Batch order Start P5000
After posting the registration for batch order, Start the batch order.
Batch order for P5000 
Create and Post the picking list journal
Route Card Posted 
Batch order Price calculations for P5000 estimated and realized cost updated
Shelf life defined for P5000 item in manage inventory fast tab
Before RAF, create batch order number and post the RAF
Note: Once the RAF posted, the item will be available physical in inventory. 
RAF posted, P500 subformula item received in inventory
P5000 indirect project cost 
End batch order
Once the batch order status is Ended, the financial cost will be posted in GL.
The inventory transactions status is "Purchased"
Batch order status "Ended" - Financial entries 
Batch order for Finished Good (P5006)
Production status is estimated, released and job scheduled

Batch order for P5006 - Post Picking list  
Batch order for P5006 Price calculation
Batch order status Ended
Batch order P5006 finished good sales order, perform the following steps  
- Confirm the sales order
- Post the registration
- Post packing slip
- Post the invoice
What is the difference between process manufacturing and production?
Manufacturing is a process of converting raw material into a finished product by using various processes, machines, and energy.it is a narrow term. production is a process of converting inputs into outputs.it is a broader term. every type of manufacturing can be produced, but every product is not a manufacturing.

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