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PROCESS MANUFACTURING module is a Microsoft Dynamics 365 Finance and Operations Industry Solution for process manufacturing and the chemical, pharmaceutical, food & beverage, semiconductor and oil compounding fields, among others. Unlike assembly-oriented manufacturing, these business fields require inventory management of catch weight items, rigid quality control and delicate lot tracing.
PROCESS MANUFACTURING module is the solution that covers these requirements.
* Customers operating in the pharmaceutical or cosmetics industry should visit AX for Pharma, an industry solution that adheres to Good Manufacturing Practice (GMP).
Solution Overview
PROCESS MANUFACTURING module covers various features, such as the automatic generation of a production and supply schedule based on MPS and MRP, formula management, co-products and by-products, and catch weight items.

Features of PROCESS MANUFACTURING module
Process Manufacturers are required to have a different management method from lean manufacturing.
Here we introduce some of the distinctive features of PROCESS MANUFACTURING module.
Formula Management
Formula is the equivalent of BOM in Discreate Manufacturing.
Distinctive features for process manufacturing in Formula are detailed below.
- Flexible Formula Master
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- By specifying substitute materials and their order of precedence in advance, users can allocate substitute materials when calculating material requirements in the event there is a shortage of the main material.
- This feature allows users to specify the minimum and maximum order quantity. If the maximum quantity is exceeded, production orders will be split up automatically.
- In addition to quantity, users can also specify the formula ratio.
- Version Control
- By registering several formulas, by date, production volume and site, the feature lets users respond smoothly to complex business requirements such as different ratios depending on production volume or different suppliers depending on production timing and site.
- Co-Products / By-Product Management Management
- Formula allows users to register, not only finished products but also co-products and accessory products in advance. For co-products, users can allocate costs by specifying rates. Moreover, it can be manually allocated upon completion so that it enables users to manage accessory products which are produced unintentionally.
Production Schedule / Production Order
The Master Scheduling feature calculates production schedule and raw material requirements, allowing users to make various plans depending on the type of production, such as a make to stock (MTS) production or make to order (MTO) production.
- Master Planning
- This feature is for generating production plans or purchase orders based on forecasted demand, inventory and formulas. This allows a user to plan a stock transfer between multiple sites and warehouses.
- Supply Schedule / Gantt Chart
- This feature lets users forecast an inventory transition based on Master Planning and to confirm the production schedule using a Gantt Chart.
- Allocation of Material Lot
- Allocations of materials can be configured manually or automatically. When allocated manually, processing can be performed with a lot allocation specifying the component content of materials.
- Batch Production System
- The Batch Production System allows users to manage a production process and its related multi-packing process.
- Management of Material Input Records and Operational Results
- This feature lets users manually enter the actual input quantity of a material while referencing the suggested quantitiy (a theoretical value) automatically displayed. Operating time can also be manually entered or automatically imported from attendance management records.
Quality Inspection / Inventory Management
In Process Manufacturing, strict quality control is required due to the nature of the items handled.
PROCESS MANUFACTURING module enables improved business efficiency and a greater level of management because the Manufacturing, Inventory and Quality Inspection Modules are closely integrated with one another in the same database.

- Quality Inspection
- Various quality inspections can be conducted at any time, such as Final Inspection, Acceptance Inspection, Inspection In-Process, and so on. Users can design inspection items tailored to the business of each customer. Destructive inspections are also supported, and troublesome tasks that require adjustments for each inspection are eliminated.
- Inventory Status / Quality Maintenance Period
- The results of quality inspections are reflected in the Inventory Status retained by lot number. These records contain more information such as the validity period, and users can utilize the information to perform delicate inventory control such as a shipment restrictions, the display of an alert upon expiry, and the exclusion of specified items from inventory when requirements are calculated.
- Inventory Control of Catch Weight Items
- Aside from SKU, users can perform inventory control by Catch Weight unit. For example, this allows users to set up two different combinations of unit against one item such as “Box” and “Weight” or “Can” and “Mass”.
Integration with Other Modules
As the Manufacturing modules of Dynamics 365 Finance , Supply Chain Management feature powerful integration with other modules including Sales, Purchasing, Inventory, Financing and Quality Management, support for made-to-order production, order placement for the raw materials required for manufacturing orders and integration with finished product quality management are supported as standard in Dynamics 365 Finance , Supply Chain Management. Furthermore, these processes work together with the Finance Module to automatically sort related journals.
Industry Solutions for Microsoft Dynamics 365 Finance , Supply Chain Management
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