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Business Central Manufacturing Show

Business Central Manufacturing Show

Von: Martin Karlowitsch
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This podcast is primarily meant for people working in an SMB manufacturing company that either uses Microsoft Dynamics 365 Business Central (or Dynamics NAV) or considers using it. (Or is on a similar system and just want to get smart). The podcast does not focus on a role (e.g. production planner or marketing or operations or IT), but just on the industry (manufacturing) and the size of the company they work for (SMB, not enterprise).Of course, this podcast is also for any person working with a Microsoft Dynamics 365 Business Central partner (VAR or ISV) who helps manufacturing clients.© 2024 Business Central Manufacturing Show Ökonomie
  • An insider's view on planning worksheet and reservation entries
    Mar 26 2024

    In episode 35 of his podcast, Martin welcomed Martin Blaha from the Czech Republic, who moved to the UK in 2016, where he still lives and works. While Martin worked in various consulting roles for various Business Central partners for 11 years, he embarked on an entrepreneurial journey last year. Hence, Martin now owns MB365 Consulting – a new generation Business Central partner.

    Being asked why he calls his new company a "new generation Business Central" partner and what distinguishes the "old" generation from the "new " one, Martin B. outlined that his way of working, compared to traditional partners, is characterized by flexibility, agility, and a focus on delivering quicker results at a lower cost, the lower cost resulting from working remote and thus having no corporate debts. He referred to his small but very efficient team, consisting of the best developers on the market. While many traditional partners still adhere to the so-called waterfall-project methodology, meaning that each project step runs over many months, he works in a hybrid agile environment as Microsoft recommends, allowing him to run a first iteration quickly and collect feedback very quickly.

    Leading over to the, as Martin K. called them, "hard facts of Business Central", they started to talk about the topic of Martin B.'s latest blog post "Five things you didn't know about planning worksheets" and why he is so passionate about it. According to Martin B., his enthusiasm for production stems from his journey from working with manufacturing software to transitioning to Microsoft Dynamics NAV and Business Central. He emphasizes the value of understanding manufacturing processes and the desire to share knowledge to prevent common pitfalls in implementations. He has seen, as he puts it, "so many missed or failed implementations where people just did not know what they're doing". His passion for the planning worksheet is rooted in the fact that it brings significant value to the customer "by sorting out the daily work in logic sequence and manner".

    Talking about the "Frozen Period", a key concept of the planning worksheet, denoting a period where the schedule is fixed and shouldn't be altered, Martin B. stressed the importance of setting the start date in the future to analyze urgencies, such as unshipped sales orders or missed planning opportunities. Lead times and communication also play crucial roles.

    Another best practice recommended by Martin B. is to define the worksheet process plan and then run it in small steps to achieve specific goals and balance supply and demand for each area individually. Moreover, utilizing filtering options extensively allows for running planning worksheets for bespoke purposes. Categorizing items is another key aspect, helping streamline the planning process by organizing products based on their characteristics. However, these practices might require adjustments to fit each company's unique needs. Additionally, Martin B. places a lot of emphasis on the significance of personal relationships in successful ERP system implementations, stressing the value of on-site interaction over remote communication alone. While planning worksheets in Business Central play a crucial role in balancing supply and demand throughout the manufacturing process chain, reservation entries serve as the glue holding everything together by ensuring alignment between supply and demand, and orders being fulfilled in the correct sequence.

    The conversation ended with discussing the importance of finding a balance between flexibility and strictness when using reservation entries in Business Central for manufacturing.

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    30 Min.
  • Plea to a pragmatic approach to Business Central manufacturing
    Sep 20 2023

    In episode 34 of his podcast, Martin welcomed José Miguel Azevedo, a Microsoft Dynamics 365 Business Central Senior Solution Architect with KPMG in the UK, one of the BIG4 consulting companies. José has more than 24 years of experience with different ERPs, ranging from SAP and Oracle to Dynamics 365 Business Central, his focus areas being Navision and Business Central, where he held various roles in consulting, like business consultant, functional consultant, project manager, program manager, etc. He has worked in companies of all sizes and with clients from the fashion, food, pharmaceutical, manufacturing, and services industries. Although Jose admitted that speaking foreign languages is not big fun for him, he dared to move to and work in London and join Martin for the podcast.

    They kicked off their conversation by delving into José's personal journey, highlighting his move from Portugal to London. José's decision to leave his comfort zone and embrace new opportunities at KPMG underscores his passion for manufacturing. He emphasized that the industry resonates with him due to its dynamic challenges and the need for out-of-the-box thinking.

    Martin and José explored the essential tools and strategies for successfully implementing Business Central in manufacturing, and José stressed the importance of identifying whether a company is make-to-order or make-to-stock and tailoring the approach accordingly. According to him, simplicity is critical for setting up Bill of Materials (BOM) structures and utilizing lead times to aid Material Requirements Planning (MRP) and Available to Promise (ATP) calculations.

    When discussing Capable to Promise (CTP), José outlined that while it's a powerful tool, it should be introduced only after establishing a solid data foundation. He pointed out that most manufacturing companies already possess historical experience and can set lead times and workarounds at the item level to provide customers with realistic delivery dates.

    The conversation wrapped up with a focus on the significance of relationships in the manufacturing sector. José recalled his challenging implementations, noting that successful projects were marked by solid professional relationships. Both Martin and José agreed that while technology is an enabler, the people behind it genuinely drive success.

    Despite both admitting they're not particularly language-oriented, they exchanged friendly banter about Martin learning some basic Portuguese before meeting at Directions EMEA in Lyon. José ended the podcast by expressing gratitude for the conversation and the opportunity to share his insights.




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    38 Min.
  • The Theory of Constraints and Business Central manufacturing
    Sep 1 2023

    In his latest podcast episode, Martin hosted Ivar Keskpaik, who, amongst a plethora of other roles and positions, works as a Business Consultant for Softera Baltic, Lithuania. 

    He holds an MSc in Physics, is a chartered engineer, a certified Theory of Constraints (TOC) practitioner, and has been titled the “most famous Interim Manager of Estonia” by the Magazine “Director”. Ivar and Martin discussed how manufacturing companies working with Microsoft Dynamics 365 Business Central can apply the Theory of Constraints.

    Martin introduced the podcast's topic by asking Ivar to explain the Theory of Constraints (TOC) shortly. As Ivar outlined, this concept was developed by Eliyahu M. Goldratt in the late 70s of the last century and describes a management philosophy and methodology that allows one to focus only on the constraints in a process and to make good bottom-line results for a short period in any type of company. TOC is more complex than other management theories, such as Lean or Six Sigma, and Ivar admitted that it took him 20 years to grasp it fully.

    As Ivar went on, the high complexity of TOC lies in its being based on a flow-based approach and not on a resource-based one. Flow-based thinking is about making sure things move smoothly and efficiently from start to finish, therefore trying to detect the constraints - or bottlenecks -  in a process and maximizing them to the maximum flow. Transferring this to the typical Business Central manufacturing customers, namely SMBs, their constraints are always on resources. However typically, the bottleneck isn't stable, but it keeps on shifting from one work or machine center to another.

    Once the constraint has been detected - by scrutinizing the workload of the different capacities - the planning must only be done for this resource. The workload should not be distributed equally among all resources to remove the constraint.

    Talking about best practices for implementing TOC at manufacturing companies using Business Central, Ivar related that it always starts with a visit to the customer and talking to the management board to understand the company's problems. Then, of course, there will be an inspection of the shopfloor to see and understand the technologies the customer is using. Based on these findings, the bottlenecks are then analyzed: where are they located? Are they floating or not? etc. After that, the planning and scheduling part will be dealt with. But, as Ivar stressed, the first step always will be to detect the bottleneck.

    Often, customers mistakenly think that their most expensive resource is their bottleneck and hence are not happy when hearing that to remove the constraint, they will have to disbalance their resources and even take away workload from their most expensive machine. They fear that this will bring their production cost up or that the cost per unit of this machine will increase significantly. 

    Ivar encountered these arguments, in which the conflict between the cost-based approach and the flow-based approach becomes evident, by pointing out that both approaches have the goal to make a profit but that the flow-based approach will bring results like better profits, a bigger turnover, and higher customer satisfaction in a comprehensively shorter time than the resource-based approach. The bigger flow through removing the bottlenecks will lead to delivering more work orders in time. Sometimes, Ivar even offers to set up a mini-project for the respective company so that the decision-makers can see the results and then discuss the main project. 

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    31 Min.
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