Running the PMA Cycle in Engineer to Order (ETO) Manufacturing
Microsoft D365 PMA – Engineer to Order (ETO) The PMA (Project Management and Accounting) cycle in Dynamics 365 can be customized to support Engineer to Order (ETO) manufacturing, which involves designing and manufacturing products based on specific customer requirements. Below is an outline of how the PMA cycle can be run in this context:
1. Project Initiation:
- Sales Order Creation: A sales order is created based on customer requirements. This is converted into a project in D365, with specific milestones, budgets, and deliverables.
- Quotation & Proposal: The team prepares a detailed quotation that includes design, development, and manufacturing costs, then submits the proposal to the customer for approval.
2. Project Planning:
- Work Breakdown Structure (WBS): Define the project’s scope by creating a WBS, breaking down the project into smaller, manageable components such as design, procurement, and production.
- Resource Allocation: Allocate resources such as engineers, designers, and production staff to different phases of the project.
- Scheduling: Use the project scheduling tool to set timelines for each task, considering dependencies and resource availability.
3. Engineering & Design:
- Design & Prototype: Develop engineering drawings and prototypes based on customer specifications. Manage engineering changes and approvals within the project.
- BOM & Routing: Create Bill of Materials (BOM) and routing instructions in D365 to guide the manufacturing process based on the approved design.
4. Procurement:
- Material Requirements Planning (MRP): Use MRP to ensure all required materials are available for production. Generate purchase orders and track material deliveries.
- Vendor Management: Manage vendor contracts and purchase agreements, linking them to the project to track costs and timelines.
5. Production:
- Production Order Creation: Convert BOM and routing into production orders. Monitor production progress, tracking each stage in the manufacturing process.
- Quality Assurance: Implement quality checks and validations as defined in the project plan.
6. Project Execution:
- Cost Tracking: Monitor project costs in real-time, including labor, materials, and overheads. Adjust project budgets as needed to keep the project on track.
- Time & Expense Management: Track employee time and expenses against the project. Automate approvals and integrate with payroll as necessary.
7. Project Billing:
- Invoicing: Generate invoices based on project milestones or completed work. Automate billing processes using predefined rules for progress billing or time and materials billing.
- Revenue Recognition: Recognize revenue based on project completion or other criteria defined in the project contract. (Ref: Microsoft D365 PMA for a fixed-cost project)
8. Project Closure:
- Final Review: Conduct a final review to ensure that the team has met all deliverables according to customer requirements. Resolve any outstanding issues.
- Project Closure: Close the project in D365 by reconciling all financials and completing the documentation.
9. Post-Project Analysis:
- Performance Analysis: Analyze project performance using built-in analytics tools. Review key metrics like budget variance, resource utilization, and profitability.
- Lessons Learned: Document lessons learned and best practices for future projects.
Key Benefits of Using D365 PMA in ETO Manufacturing:
- Improved Project Visibility: Real-time tracking of project costs, schedules, and performance.
- Enhanced Collaboration: Integrated tools for collaboration between engineering, production, and finance teams.
- Better Cost Management: Detailed tracking of all project-related costs ensures better budget control.
- Streamlined Processes: Automated workflows for approvals, billing, and reporting reduce administrative overhead.
If you need a more detailed walkthrough or specific configurations for this scenario, feel free to ask!