Supply Chain Challenge: How Chemical Manufacturers Can Use Microsoft Dynamics AX for Quality Management Concerns

The concerns of quality management typically extend across every aspect of supply chain management in chemical manufacturing companies.  This broad viewpoint of quality management, for example, ranges from the definition of item and formula information through sourcing purchased material, actual production, sales shipments, and returns.  Special considerations apply to lot-controlled items, such as the assignment of lot numbers, lot attributes, and lot disposition codes that restrict material usage.[1]

Since Microsoft Dynamics AX addresses nearly the full range of quality concerns with out-of-the-box functionality, it represents a strong ERP solution in the world of chemical manufacturing.  The customization and integration capabilities within Dynamics AX can also be used to support additional requirements. The list of out-of-the-box capabilities is no small matter, and they cut across many different functional areas.  The capabilities can be roughly grouped into several categories, as described below. More detailed explanations of these capabilities are provided in a separate white paper about quality management.

Item and Recipe Definition. Item and recipe information provide a logical starting point for quality concerns, where a recipe consists of the formula ingredients and routing steps. Some of the major concerns include:

• Item identification, including the optional use of variant codes (such as color or grade) as part of the item identifier
• Specify and enforce authorized units of measure for an item
• Specify and enforce approved vendors for a purchased item or outside operation
• Approval of authorized formula versions for an item
• Approval of substitute ingredients within a formula
• Approval of authorized routing versions for an item
• Identify quality factors ...

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