Microsoft Dynamics 365 Manufacturing

Dynamics 365 Manufacturing, part of Dynamics 365 Supply Chain Management, is a set of end-to-end manufacturing capabilities that help securely connect people, assets, workflow, and business processes, empowering organizations to be more resilient. Learn how you can strengthen your manufacturing business by connecting systems and data to anticipate change and minimize disruptions to reduce the time to market.

Dynamics 365 Manufacturing

Drive smarter manufacturing with Dynamics 365

Rand Group helps manufacturers leverage Dynamics 365 for Supply Chain Management to modernize operations and maximize efficiency across production, inventory, and logistics. By combining AI, machine learning, and IoT-enabled insights, this solution provides end-to-end visibility of your manufacturing processes, predicts potential disruptions, reduces downtime, and improves product quality. With connected, data-driven operations, your team can optimize production performance for scalable growth.

As a trusted Microsoft partner, Rand Group helps manufacturers unlock the full potential of Dynamics 365 solutions for manufacturing to address industry-specific challenges. We support improved operational agility, enhanced production visibility, balanced supply and demand, and accelerated time to market. For over two decades, we’ve supported manufacturers in sectors ranging from industrial products and construction materials to steel and energy equipment, helping them embrace digital transformation and achieve lasting improvements in efficiency, scalability, and operational success.

Forecast

Real-time insights for smarter decisions

Dynamics 365 solutions for manufacturing provide a unified view of production, inventory, and operational performance. With AI-driven analytics and predictive insights, manufacturers can quickly identify bottlenecks, prevent disruptions, and make informed, data-driven decisions.

Automate

Enhance manufacturing efficiency and asset utilization

Dynamics 365 supports all types of manufacturing processes including discrete and process. IoT and mixed reality capabilities enable predictive maintenance, real-time monitoring, and process optimization, helping manufacturers maximize throughput, minimize downtime, and deliver higher-quality products.

Response Time

Respond faster to changing demand and market conditions

With connected operations across production, inventory, and logistics, Dynamics 365 for manufacturing empowers teams to adapt quickly to fluctuations in demand. Integrated planning, automation, and actionable insights help optimize resources, streamline workflows, and ensure reliable, on-time delivery.

Microsoft Dynamics 365’s manufacturing capabilities

Bill of Materials (BOM)

Multi-level & phantom BOMs

Build comprehensive, multi-level BOMs that reflect real-world assemblies with nested relationships and dependencies. For simplified flows, phantom BOMs allow you to include subassemblies that don’t require their own production orders, keeping production lean and efficient.

Version & revision control

Track engineering updates with full revision control. Dynamics 365 maintains historical versions, approval statuses, and audit trails to ensure every BOM change, from minor adjustments to major redesigns,is properly documented and compliant.

Product variants & configurations

Support make-to-order and configure-to-order production through powerful variant and configuration models. Manufacturers can define products by dimensions like size, color, or style, giving customers flexibility without increasing design complexity.

Component substitutions & expiration dates

Manage material changes with confidence. Alternate items, expiration dates, and phase-outs are fully supported, helping planners respond quickly to supply chain disruptions or engineering changes while maintaining accurate costing and traceability.

Cost roll-up & analysis

Dynamics 365 automatically calculates material, subassembly, and overhead costs to provide a real-time view of product profitability. With cost roll-ups and variance analysis, manufacturers gain deeper insights into cost drivers and margin opportunities.

Bill of Materials (BOM) in D365 Manufacturing

Routings & resources

Operation routings

Define each step of the production process, including setup, run, and queue times, for precise scheduling and cost calculation. Routings create a digital blueprint of operations that supports predictable lead times and repeatable quality

Resource groups

Assign work intelligently by linking operations to machines, work centers, or labor resources based on skills, capacity, or certifications. This resource-based planning ensures that every job is performed by the right asset at the right time.

Scheduling & planning

Prevent bottlenecks and overloads with real-time scheduling that considers available capacity and dependencies. Dynamics 365’s constraint-based engine ensures that production plans remain achievable and balanced across all resources.

Alternate & parallel routes

Increase flexibility and throughput with alternate or parallel routes. Whether rerouting for equipment maintenance or running concurrent operations, Dynamics 365 keeps production moving without disrupting the schedule..

Work center efficiency

Monitor utilization, performance, and cost rates at every work or machine center. By tracking efficiency in real time, manufacturers can identify bottlenecks, improve productivity, and enhance cost control across the shop floor.

Delivery alternate routes

Planning

Material Requirements Planning (MRP)

Generate actionable procurement and production orders based on demand, inventory, and BOM data. The MRP engine ensures timely replenishment and prevents shortages, optimizing both cost and service levels.

Master planning & forecasting

Simulate future demand scenarios and align production with business goals. Dynamics 365 lets planners model short- and long-term strategies using sales forecasts, historical trends, and capacity constraints.

Planning optimization engine

Powered by in-memory processing, Planning Optimization provides real-time updates and faster calculations across large datasets. Manufacturers can react instantly to demand changes and supply disruptions without waiting for overnight runs.

Forecasting models & AI insights

AI-enhanced forecasting uses predictive analytics to improve accuracy and reduce excess inventory. Machine learning models continuously adapt based on real-world performance, helping planners make smarter decisions.

Pegging & traceability

Gain full visibility from demand to supply. Dynamics 365 shows the entire chain of dependencies, from sales orders through BOM levels, making it easy to trace materials, evaluate impact, and plan effectively.

Multi-site & multi-entity

Coordinate production and distribution across multiple sites, warehouses, and legal entities. Shared planning models help global manufacturers balance workloads and resources across their entire network.

Master planning & forecasts

Production order execution

Production order lifecycle

Handle all stages of production, from planned and firmed to released and completed orders, across discrete, lean, and process environments. Dynamics 365 ensures a smooth flow from planning to finished goods.

Shop floor control

Empower operators with intuitive shop floor terminals that capture time, material usage, and progress directly from the line. This real-time feedback drives visibility and accountability across shifts and work centers..

Real-time material consumption

Record consumption automatically or manually based on actual usage. Integration with inventory and costing ensures that every transaction reflects real-time material flow and production accuracy.

Work in process (WIP) tracking

Track and value WIP throughout production. Dynamics 365 automatically accumulates material, labor, and overhead costs to support accurate financial reporting and performance monitoring.

Scrap & quality tracking

Identify and record defects, scrap, and rework during production. These insights support continuous improvement and quality initiatives by pinpointing root causes and trends.

Cost accounting integration

Production costs flow seamlessly into financial management, providing real-time margin visibility. Integrated costing ensures that decisions are based on current, accurate data.

Production lifecycle management

Assembly

Kanban scheduling & execution

Manage material flow visually with Kanban boards and cards. Dynamics 365 supports event-driven replenishment and production signals that keep operations moving smoothly./p>

Lean work cells

Design adaptable work cells that support just-in-time manufacturing. Workflows can be easily reconfigured to accommodate demand shifts or product changes without major disruptions.

Assemble & configure to order

Support flexible production strategies with on-demand assembly and configuration. Build customized products directly to customer specifications while maintaining efficiency and control.

Pull-based replenishment

Trigger material replenishment automatically based on consumption or demand. This pull-based approach minimizes inventory while ensuring materials are always available when needed.

Performance & throughput analytics

Analyze cycle times, utilization, and lead times to uncover bottlenecks and improvement opportunities. Dynamics 365 provides actionable analytics for continuous process optimization.

Connected factory & IoT insights

Process manufacturing

Formula & recipe management

Replace static BOMs with flexible formulas that define ingredients by weight, percentage, or ratio. Support co-products and by-products to fully account for process outputs.

Batch balancing & scaling

Automatically adjust formulas based on actual yields or batch sizes. This ensures consistent product quality and accurate material usage across all production runs.

Product compliance & labeling

Centralize regulatory information and manage Safety Data Sheets (SDS), certifications, and labeling requirements. Dynamics 365 ensures compliance from production through packaging.

Quality management

Define and enforce quality checkpoints across the production lifecycle. Capture test results, manage sampling plans, and handle nonconformance workflows directly within the system.

Batch attributes & potency management

Track batch-specific characteristics such as potency, concentration, or grade. This data integrates with costing, quality, and inventory management for end-to-end precision.

Tracebaility & recall management

Maintain complete forward and backward traceability from raw materials to finished goods. Dynamics 365 enables rapid recall response and full visibility into batch history.

Formula & recipe management in D365 Manufacturing

Proven results

%

Improvements in inventory returns

%

Reduction in operational costs

%

Improvements in internal schedule compliance

Analyze demand plans with Copilot

Unlock AI to optimize production and quality

Microsoft Dynamics 365 for manufacturing harnesses artificial intelligence to help manufacturers enhance efficiency, product quality, and operational decision-making across all types of production. With AI-driven analytics, machine learning, and predictive insights, manufacturers can anticipate disruptions, optimize processes, and make data-driven decisions throughout the production lifecycle. At Rand Group, we help manufacturers unlock these AI capabilities to drive measurable improvements in performance and profitability.

Key AI capabilities for manufacturers:

  • Intelligent demand and inventory planning: Predict customer demand, balance supply, and optimize inventory levels to reduce waste and prevent stockouts.
  • Optimized production and quality: Analyze production data to improve sequencing, resource allocation, and quality control, ensuring consistent, high-quality outputs.
  • Automated scheduling and workflow optimization: Generate optimal production schedules based on demand forecasts, resource availability, and lead times to minimize bottlenecks and maximize throughput.
  • Predictive maintenance: Monitor equipment in real time to detect potential issues before unplanned downtime occurs, reducing maintenance costs and disruptions.
  • AI-powered insights: Streamline reporting, operational monitoring, and repetitive tasks with intelligent recommendations, allowing teams to focus on higher-value work.

Discover how Dynamics 365 manufacturing can meet your business needs

Explore the transformative power of Dynamics 365 Manufacturing with a 3-day roadmap workshop or a 3-week personalized pilot to help you visualize your future state solution. Work with our team of manufacturing specialists, integration engineers, and analytics consultants to identify high value initiatives to deliver business success.

3-day workshop to build your manufacturing roadmap

In this one-on-one workshop, Rand Group will guide you through prioritizing high-value transformation scenarios to help you achieve ongoing manufacturing innovation. At the end of the engagement, we deliver a roadmap to success and execution plan for next steps.

3-week pilot to visualize and evaluate manufacturing

Visualize how Dynamics 365 Manufacturing can optimize your manufacturing and financial operations with a 3-week personalized pilot. Rand Group will run a live simulation using your data and processes to demonstrate to key stakeholders how Dynamics 365 can help transform your business.

Reduce cost, improve quality, and enhance productivity through smart maintenance

White Paper

Reduce cost, improve quality, and enhance productivity through smart maintenance

The global pandemic significantly accelerated the need for remote monitoring and diagnostics of operations and assets. As the supply chain is impacted from all directions, maintenance can be the steady, reliable part of the puzzle that helps get things back on track. In this white paper, learn about five maintenance approaches that fit into a smart maintenance model.

Explore the entire Dynamics 365 Finance & Operations suite

Microsoft offers a range of purpose-built Dynamics 365 applications that all seamlessly connect together to manage your entire business. View the cloud-based applications below that can transform your operations beyond manufacturing.

Dynamics 365 Supply Chain Management

Discover what Dynamics 365 Supply Chain Management can do beyond manufacturing through AI, machine learning, and mixed reality to enable businesses to predict future outcomes, reduce costs, and increase product quality.

Dynamics 365 Finance

Add financial management and ERP capabilities through Dynamics 365 Finance, which allows you to monitor the performance of global financial operations in real-time, automate business processes, gain efficiencies, and drive financial visibility for better decision-making.

Dynamics 365 Project Operations

Combine Dynamics 365 Project Management with Manufacturing to help you win more deals, accelerate project delivery, and maximize profitability. The application offers enhanced project management to optimize resources to complete projects efficiently.

Frequently Asked Questions (FAQs)

How is Dynamics 365 Supply Chain Management licensed?

Dynamics 365 Supply Chain Management follows a modular, subscription-based model that allows businesses to select specific capabilities such as inventory, production, warehouse, and logistics management. Licensing options include full users, who require complete access to all features, and Team Members, who have limited or read-only access. This flexible structure enables manufacturers to scale the solution as their supply chain needs evolve.

How much does Dynamics 365 Supply Chain Management cost?

Supply Chain Management is $210 per user per month for full users. Team Member licenses are available at a lower cost, $8 per user per month. Costs may vary based on whether the solution is deployed independently or alongside other Dynamics 365 applications such as Finance or Project Operations. Deployment model and partner services for implementation and support will also impact total cost. Rand Group can assist manufacturers in designing a licensing strategy that aligns with their operational goals and maximizes return on investment.

Is Dynamics 365 Supply Chain Management suitable for multi-entity manufacturers?

Yes, Dynamics 365 Supply Chain Management is well-suited for multi-entity and multi-site operations. It enables manufacturers to manage multiple plants, warehouses, and legal entities within a unified system. The platform supports intercompany transactions, centralized financial consolidation, and standardized processes across locations, providing full visibility and control across global supply chain operations.

How does Dynamics 365 Supply Chain Management handle Product Information Management (PIM)?

The solution offers robust Product Information Management capabilities by centralizing and managing product data such as bills of materials, formulas, routings, and version control. It includes tools for engineering change management and product lifecycle tracking, allowing manufacturers to maintain consistent product specifications, improve collaboration between engineering and production teams, and enhance quality control across all production sites.

Why partner with Rand Group?

Microsoft manufacturing experience

As a certified partner for Microsoft Dynamics 365, Rand Group delivers flexible solutions designed to meet the unique needs of manufacturers. We implement and optimize ERP and CRM systems to streamline production, improve supply chain efficiency, and enhance overall operational performance.

Committed partner for long-term support

With a 90% client retention rate, Rand Group builds lasting partnerships with manufacturers who rely on us to support their evolving needs. Beyond implementation, we provide continuous optimization, proactive support, and reliable service to ensure your Microsoft Dynamics 365 ERP and CRM systems deliver lasting value and grow with your business.

Providing services across North America

Rand Group is recognized as a leading Microsoft Dynamics 365 consulting partner, delivering ERP and CRM solutions for manufacturers with precision and quality. Our U.S. and Canada-based team provides end-to-end, in-house services, ensuring accountability, seamless collaboration, and solutions tailored to the complexities of manufacturing operations.

Decades of experience

Rand Group has decades of experience helping manufacturers implement and optimize Microsoft Dynamics 365 solutions. We understand the unique challenges of the industry, including fluctuating demand, regulatory compliance, and supply chain complexity, and tailor Dynamics 365 to improve efficiency, visibility, and long-term performance.

Let’s talk about how we can transform your business