Overview

Introduction

Advanced Manufacturing Statistics (AMS) is a Bricklead extension for Microsoft Dynamics 365 Business Central that enhances standard manufacturing reporting by providing detailed production statistics based on net weight and advanced cost analysis.

The application extends the standard Production Order Statistics functionality, allowing organizations to analyze manufacturing performance from multiple perspectives, including weight-based costing, cost category segmentation, and overhead allocation analysis.

AMS is particularly valuable for manufacturers operating in industries where production is measured and evaluated based on weight, such as food processing, beverage production, and other process manufacturing environments.

Key Usage Scenario’s

• Detailed Production Statistics based on the net weight of each production order.
• Enhancing profitability by segmenting indirect costs and overhead rates by specific cost categories, identifying high-cost areas and implement cost-saving measures.
• Evaluate trends in net weight production and related costs.

Key Concepts and Definitions

Understanding the core concepts used by Manufacturing Planning Optimization (MPO) will help planners configure the solution correctly and maximize scheduling efficiency.

Net Weight: Refers to the actual weight of a product, excluding any packaging materials, containers, or other non-product elements. It represents the weight of the product itself. The Net Weight field is located on the item card, under the inventory section.

Production Order Statistics: Provides a comprehensive overview of key performance indicators (KPIs) and metrics related to a specific production order. This page allows users to monitor and evaluate the financial and operational aspects of a production order, offering insights into cost breakdowns and variances.

Material Costs: The cost of raw materials used in the production order. Typically, the material cost is derived from the direct cost of the components consumed in a production order.

Capacity Costs: Costs related to the use of production resources, such as labor and machinery. Typically, the capacity cost is derived from the direct cost of the capacities (work center/machine center) used to produce an item.

Subcontracting Costs: Expenses incurred from outsourcing parts of the production process.

Overhead Costs: Indirect costs associated with production, such as utilities and maintenance. These include:

• Manufacturing Overhead Rate
  • Manufacturing Overhead (also known as Overhead Rate on the Item Card) represents the indirect costs associated with production that are not directly tied to specific products but support the overall manufacturing process. These include costs like facility utilities, maintenance, indirect labor, depreciation on manufacturing equipment, and other costs that facilitate the production environment. By applying these rates, companies can allocate these indirect costs proportionally to each product or production batch, helping to accurately calculate the true cost of goods manufactured.
  • Item Indirect Cost %: Specifies a percentage that represents the additional indirect costs associated with producing a specific item. These indirect costs could include handling, warehousing, inspection, and other ancillary expenses necessary to bring an item to its finished state but aren’t directly tied to the raw materials or direct labor for that item.
• Capacity Overhead Rate
  • Capacity Overhead (also known as Overhead Rate on the work center/machine center Card) refers specifically to costs associated with the utilization of production resources, such as machinery and labor, based on the time these resources are actively used in production. These rates focus on the capacity of the production resources and are calculated per time unit (like per hour or per shift) or per unit produced.
  • Work/Machine Center Indirect Cost %: Represents the costs related to using specific work/machine centers in the production process. These indirect costs might cover maintenance, electricity, setup time, and other operational expenses required to keep a work/machine center running efficiently.

Cost Categories: Because some of these costs can consolidate several elements (e.g., indirect costs can include labor as well as real estate costs), all the above-mentioned costs can be broken down into cost categories that provide better insight and detailed views of the costs affecting a production order.

Production Statistics Views: AMS introduces multiple Production Order Statistics views, allowing users to analyze manufacturing results using different perspectives such as standard costing, net weight costing, and cost category analysis.