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Background

Fabrikam Inc. is a manufacturer of sanitation cleaning solutions and equipment including carpet/floor cleaners, pressure washers, scrubbers and vacuums.

Fabrikam Inc. is a single legal entity based in New York city.

_ Current environment

Products manufactured
- Cleaning equipment
o floor cleaner
o pressure washers
o scrubbers
o vacuums
- Liquid cleaning solutions
o No scent
o Orange scent (subcontracted to a vendor named VendorA)
o Pine scent (subcontracted to a vendor named VendorA)

The production quantity for the finished unscented liquid cleaning solution is 40-liters. IngredientC 'or unscented liquid cleaning solution Is stored in inventory in 50-liter barrels and allocated in 50-liter increments. Two barrels of IngredientC are uses to produce a barrel of unscented liquid cleaning solution.

Production sites
- The Eastern United States facility manufactures equipment.
- The Western United States facility manufactures liquid cleaning solutions.
- Raw materials and finished products are stocked at the warehouse and distributed from the warehouse.

Warehouse facilities

The warehouse consists of the following zones:



Requirements:
Cleaning equipment manufacturing

You identify the following require merits for manufacturing cleaning equipment:
- Production is Make to Stock and must be scheduled at an operational level.
- Machine equipment is produced on an assembly line. Scheduling must be based on production orders.
- Finished products must be packaged and shipped directly from the warehouse.
- To reduce delivery times and excess inventory, equipment must be produced as needed.
- The ability to schedule production must be based on resource capacity and the availability of required materials.
- Production order operations must be scheduled to start only when capacity and materials are available at the same time and in the required quantities.

Liquid cleaning solution manufacturing
- Production is Make lo Order and is scheduled at the job level. Products must be manufactured in batches.
- Finished products must be packaged and shipped directly from the warehouse.
- You must be able to calculate the estimated consumption of ingredients and ensure that the amount is divisible by the number of units the raw material «s available.
- Formula changes must be reviewed and approved. You must ensure that approved formulas cannot be deleted or edited. Approved formulas may be deactivated.
- An ingredient used to manufacture unscented cleaning solution is defined as a restricted product. You must be able to automatically print a product safety data sheet (PSDS) with the packing slip for any order that includes unscented cleaning solution.
- Production must be scheduled to start by date and time according to the order that is specified by the production route.
- You must implement a scheduled Kanban rule that meets the following requirements:
o Prevent overloading a work cell for scheduled Kanbans.
o Visualize excess inventory in a supermarket.
o Store products in supermarkets before they are consumed or shipped.
- You must link relevant financial dimension data to the inventory transactions at each site to ensure that you can trace profit and loss figures directly to East site and West site respectively.
- You must set up production operations for sub-contracting of Pine scent and Orange scent solution to VendorA to ensure that a purchase order is automatically created based on estimation of a production order.

Costing
- The price of raw materials used for manufacturing unscented cleaning solution must be tracked based upon commodity exchange pricing. The margin and cost multiplier must be set up for commodity traded raw material.
- You must set up cost calculation groups to ensure that indirect costs that originate in the manufacturing of finished goods are recognized and absorbed into the product cost.
- The production manager needs to set up picking list journals and BOM item consumption.

Reporting
- Production control parameters must be setup for reporting of automatic BOM and Route consumption.
- You must create reports that include information about cost records and categories for items, and calculation formulas for indirect costs.
- You must treat manufactured items as purchased items for cost roll-up purposes during BOM calculations and reporting.
- You must configure automatic route consumption in connection with the automatic running of Report as finished.

Inventory control

You must not be required to track the tot number for items when you enter inventory information into the system. Lot numbers for items must be entered when items are picked from inventory.

Issues

Users report the following issues:
- The production manager observes that items are being deducted from inventory two times on production jobs. A shop supervisor mistakenly registers the process for assembling batteries for the pressure washers to Registered as prepared. You must reschedule the process for a future date.
- Customer1 orders 20 barrels of unscented solution. The order is confirmed. Production must be scheduled to start on December 21 to meet the customer's delivery deadline.
- User2 reports that costs for manufactured items are twice as high as expected.
- UserD reports that the formula for the liquid cleaning solution sometimes changes during production. You must enforce the policies regarding formula editing for current and future use.

General information

A manufacturing company produces custom configured-to-order motorcycles. The company plans to implement Dynamics 365 Supply Chain Management. The company contains one legal entity located in Missouri where all production and warehousing operations occur.

Customization options

The custom motorcycles have a variety of selections that can be selected in the listed order by the end customer, including the following:



Customization restrictions

The following restrictions on customizations are in place:
* Green color can only be sold with the Legend Trim.
* Orange color can be sold with the Sport or Legend Trim.
* The ML seat must be included in the Legend package.
* The MS seat must be included in the Sport package.

Manufacturing facilities

The company includes the following manufacturing groups: Assembly and Plastic Molding. The Assembly group is responsible for assembling the motorcycles with purchased and manufactured goods. The Plastic Molding group is responsible for manufacture of all plastic parts used in the assembly area.

Motorcycle manufacturing

The parts for the product assembly are picked from the warehouse and staged at the correct workstation by a warehouse operator for each production order.

Plastic manufacturing

Plastic parts are molded using dyes that create multiple parts at once. The parts are machined in the same production process to remove excess plastic and add additional holes for assembly. Excess plastic is recycled back into the feedstock of the same color plastic chips for use in the molding process.

Metal Parts

Raw metal parts are purchased fully machined but without primer or paint. The parts are subcontracted to a vendor for primer and paint based upon the color requirements.

Facility

The company has a single warehouse that supports both the assembly and plastic manufacturing areas. The warehouse consists of three aisles with 15 bins and three shelves. The facility has no Wi-Fi capacity but has hardwired terminal stations throughout the assembly production line.

Transactions are currently completed by office staff. Raw materials transfer must support capacity constraints for paint and primer.

Requirements:
The company has a single warehouse that supports both the assembly and plastic manufacturing areas. The warehouse consists of three aisles with 15 bins and three shelves. The facility has no Wi-Fi capacity but has hardwired terminal stations throughout the assembly production line.

Transactions are currently completed by office staff. Raw materials transfer must support capacity constraints for paint and primer.

Sales Order

The company has the following requirements for sales orders:
* During the configuration of a sales order, invalid combinations must be prevented.
* Each configuration must create a unique bill of material (BOM) and Route based on options selected.
* Sales pricing for the sales order must be based upon options selected.
* Due to emissions regulations, the motorcycles cannot be sold to the state of California.

Motorcycle manufacturing

The company has the following requirements for motorcycle manufacturing:
* Schedule labor only at the labor pool level without machines by day
* Produce motorcycles within a scheduled day in any order.
* Record actual production labor with start/stop times.
* Record manager approval of labor entered prior to posting.
* Post actual material consumption after production is finished.

Plastic manufacture

The company has the following requirements for motorcycle manufacturing:
* Schedule both labor and machines.
* Adjust schedules by using a Gantt chart.
* Backflush standard labor by operation.
* Post actual material consumption at the start of production.
* Track and allocate costs to the excess plastic.
* Report multiple molded part numbers during the same production run.
* Determine the correct mold to use on a production order.
* Generate a batch number for each production order.

Metal Parts

The company has the following requirements for metal parts manufacturing:
* Schedule shipments to the vendor for painting.
* Receive painted parts into inventory from the vendor.
* Track vendor inventory levels.

Default

You must configure defaults for manufacturing execution production orders to meet the following requirements:
* Ensure accuracy for production order pick list posting.
* Ensure correct pick list creation.

Issues

A. In the current system, the company cannot calculate overhead rates and determine the breakdown of material, labor, machine, and overhead costs for production.
B. The company is manually calculating an 8% overhead on materials and posting a journal manually.

This is a case study. Case studies are not timed separately. You can use as much exam time as you would like to complete each case. However, there may be additional case studies and sections on this exam. You must manage your time to ensure that you are able to complete all questions included on this exam in the time provided.

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Background

Adventure Works Cycles is a high-end bicycle manufacturer in North America. Their standard model bicycles are available year-round. Limited-edition bicycle models are released several times a year to boutique retailers domestically.

Adventure Works has had the most success with their limited-edition bicycles. These bicycles have high margins, are in high demand, and have a strong following with the younger generation biking community.

Current environment

General

Adventure Works expects to triple their manufacturing capabilities in the next few years due to increasing demand. The company plans to invest in Dynamics 365 Finance, Dynamics 365 Supply Chain Management, and the Power Platform products to migrate from a custom-built enterprise resource planning (ERP) solution and Microsoft Excel worksheets.

Adventure Works sells only to the United States and Canada. Despite their limited market, they cannot keep up with current demand. Over time, they want to expand their market to remain profitable.

Adventure Works has no capabilities or budget to undertake any development beyond Excel formula- level tasks.

Bicycle manufacturing

Bicycle models are measured and reported against how well a single model performs as a sum of all the variations of that model. For example, the Street Kid YOLO model sold 25,000 units in 2019 across all variations of the product, but the Purple Female frame made up 30 percent of that model's sales.

The Street Kid YOLO models sell in different volumes depending on the market.

The creation of production orders for bicycles occurs monthly and is based on historical sales.

Each part of a bicycle's assembly occurs at a different station in the Adventure Works production facility.

A piece of paper that has eight sections accompanies a bicycle throughout the manufacturing process. As each step is completed, the respective section is completed and signed off by a production worker.

The completed paper is used in the put-away process by the warehouse workers.

Financials

The standard model and limited-edition bicycle teams are separate operating units within the manufacturing division. Financials are tracked and reported separately even though they are produced and sold in the same sales channels.

Updates to the standard model bicycle models are created when a part for a bicycle becomes unavailable. This can change the cost of the product.

An updated model of a bicycle with new parts will be maintained as a new item and have a new price. However, it will look like the exact same product to retailers and distributors.

Manufacturing process

The bicycle manufacturing process is shown in the following graphic:



Limited-edition bicycle process

The limited-edition bicycles are made up of an Adventure Works custom frame with all other parts created by local artists and manufacturers.

Each bicycle has a unique set of new items that make up the bill of materials (BOM) because all parts are created to specification.

A single pilot limited-edition bicycle is created as a proof of concept.

Adventure Works occasionally reuses components from existing bicycles, but most limited-edition bicycles are made of handcrafted components designed to specifications.

Each limited-edition bicycle is built, and hand signed by a single Adventure Works artisan.

Sales price must be auto calculated after the cost price is derived.

Before creating the proof of concept limited-edition bicycle, the approximate sales price needs to be determined through a cost-plus 20 percent calculation.

All items except for the frame in the prototype process are considered finished items and can be sold individually.

The frame items require modifications in accordance with the manufacturing process as well as painting.

Each Adventure Works limited-edition bicycle artisan is scheduled to create a specific number of bicycles in a production run that must be completed by a certain date.

Limited-edition bicycle artisans work exclusively on a given run of limited-edition bicycles and are not able to work on other tasks.

Limited-edition bicycle BOM assembly process

The prototype process for the limited-edition bicycles is shown in the following graphic:

Requirements:
General

Adventure Works will consist of three legal entities: the primary legal entity of the United States (AWUS), sales in Canada (AWCA), and an international expansion (AWIN).

AWIN must be able to sell only standard model bicycles.

AWUS and AWCA must be able to sell both standard model and limited-edition bicycles.

Warehouse workers must use the Warehouse Management mobile application to manage all inventory inbound and outbound from the warehouse.

Bicycle manufacturing

The handlebars, back wheels, and front wheels must not change for any of the bicycle model configurations.

Standard model bicycle production scheduling must be configured to start as soon as possible.

Bicycle components must be automatically reserved when the item is released to the production floor.

Standard model bicycle production must be automatically created on a predefined schedule.

As soon as bicycles are completed, they must be available to fulfill the backlog of orders.

Limited-edition bicycle production must be configured to meet the end date for when the bicycles must be completed.

Production orders need to track financials by standard model or limited-edition bicycle manufacturing teams.

The system must log the immediate consumption of BOMs for traceability.

All inventory is warehouse enabled.

Finished goods are reported as finished by the warehouse worker who picks up the finished product from the packaging area.

Finished products must automatically have put-away work completed for them.

New limited-edition bicycle process

Adventure Works is creating a new, limited-edition bicycle to commemorate the company's tenth anniversary. The limited-edition bicycle will be designed for charity events and be produced for the summer season.

The bicycle must be available in men's, women's, and unisex frame styles. It will be painted in one of 50 hand-painted designs representing the charity of the customer's choosing.

A limited run of 100 bicycles must be created.

The limited-edition bicycles must use the same production process as the standard model bicycles.

The limited-edition bicycles must use the same parts used for previous limited-edition bicycles, except for the unique paint colors.

Frames must be painted in-house.

Five painting options are available only in the unisex frame style.

New limited-edition bicycle orders

Customers must be able to place sales orders for the item in the chosen frame configuration, including style and color.

When an order for the new limited-edition bicycle is created, payment must be provided.

An approval for an order must exist for the order to be processed.

Upon approval of an order, production must start immediately and not require re-entry of data.

Fabrikam, Inc. Is a discrete manufacturer of outdoor patio furniture. The company originated as a sole owner working from a home garage, then moved into a commercial storage space, and later into a full manufacturing facility. The company operates as two operating legal entities, one in the United States and the other in Mexico.

As the company grew, the existing software systems failed to grow with it. This meant that financial reporting was managed in an outdated accounting system; raw materials planning, production, and inventory control were managed in another system; and cost calculations were tracked in multiple spreadsheets managed by analysts.

Current environment

The Fabrikam. inc. engineering team uses a third-party computer-aided design (CAD) system for drawings. These drawings are later introduced into one or more companies for sale. A customer service center handles complaint calls and places orders for distributors.

The current system landscape creates a lack of controls and visibility across the systems, leading to overages of some raw materials, shortages on others, and large quantities of scrap. Heavy production volume provides little to no room for system downtime. The staff manually creates production orders, which leads to double work for system entry later. This delay has a ripple effect into the materials planning.

The company currently sources teakwood from India, making it a more expensive and high-end material. Cedar and redwood are both sourced from the Western US. Truck driver shortages across the nation have caused shipping costs to rise sharply.

Fabrikam, Inc. recently decided to expand into the gas firepit market. All products are currently being prototyped. The company decides that the firepit prototype should be initially available only in the United States. The firepits will be manufactured only in Nevada and Arizona. The firepits are produced as prototyping: this production line operates only on Mondays.

Fabrikam, Inc. has purchased new manufacturing equipment for the firepit metal fabrication. This purchase includes a warranty, which requires that the company perform routine maintenance.

Fabrikam, inc. elects to complete the maintenance in house on a quarterly schedule and maintain appropriate records for warranty purposes. The metal fabrication equipment consists of three separate machines used in a single production process.

Fabrikam. Inc. made the decision to move to Dynamics 365 Supply Chain Management.

Application and environment
- Fabrikam, inc. must move systems and processing to software as a service (SaaS) whenever possible because the company does not have enough IT staff to support hardware.

Inventory and costing
- Finished goods fall into three categories:
- Wood furniture (teak, cedar, redwood) o Outdoor heating (firepits. gas heaters)
- Each outdoor heating item with slight variations, such as a chrome or steel finish, must have a unique item number, o Repair parts (nuts and bolts, ignitors. and other parts)
- The system must account for the fact that Fabrikam. inc. must take legal ownership of teakwood at the time of shipment, not at the time of receipt into the warehouse.
- The company must accrue for the costs of the teakwood materials as soon as the company takes ownership. The company takes ownership at the time of shipment, which is posted prior to physical receipt at the warehouse.

Engineering
- Engineers who specialize in gas consumer goods will design the firepits and ate the only users with authority to release the products for sale.
- Engineering must notify customer service of any open orders that may contain a released product version that may be discontinued or delayed.
- The change request workflow must route to the engineer.

Production
- The raw material and subcomponent goods for the firepit must be managed by the engineer. This means the engineer must oversee any new items, material changes, address problems, and so on.
- The metal fabrication equipment must be tracked at the locations where the firepits are produced.
- The production team must operate on an all-day/everyday model, with each team operating in a 12-hour shift. This is a recent change to keep up with high demand for products, as well as for planning a new product line.
- Raw material and subcomponent items for the firepit prototype must not be available for use until engineering is ready for the prototype product release.
- Due to the production staff schedule, all equipment must be planned according to the staffing.
- Maintenance for each of the three pieces of machinery must be scheduled at the same time so that only the local maintenance technician works on the equipment.
- When the firepits are ready for the test market they must made be available for sale.
- The United States operating company must review any engineering products before they are available for sales or production orders,
- The engineering team must release the engineering product into the United States operating company,
- The engineering BOM lines must not be removed by the United States operating company.

Application and environment
- The operations manager is concerned that system downtime is so frequent that It is impacting efficiency due to the all-day/everyday production operation model.

Inventory and costing
- Fabrikam, inc. marketing campaigns in the desert states of Arizona- Nevada, and New Mexico have led to an increased demand for teakwood furniture to endure weather elements. Supply and demand for this wood lowered expected margins with increased shipping costs and price increases from the vendors.
- User1 reports that the inventory value of the teakwood is not on the financial reports, even though ownership of the product begins at the port of shipment,
- Upon receipt into the physical warehouse, User2 reports that the warehouse workers received less teakwood than the ordered amount on the purchase order.

Engineering and production
- As the firepits are produced and feedback received from the test market, records must be maintained of each revision to the firepit design.
- Firepits must have attributes associated with them to specify the type of gas line that is available for the firepit such as natural gas or propane.
- Customer service is receiving calls that the firepit ignition switch does not always work as expected. This issue was reported through an engineering change request.
- User3 reports resource issues on the production shop floor due to system maintenance issues and other delays. The company does not want User3 or the other workers to stop production.
- User4 reports that a bolt needed for cedar wood furniture is out of stock. A temporary substitution bolt was identified prior to starting the production order.
- User5 reports that a hinge for redwood furniture will be discontinued at the end of the year.
Production must reflect an updated part.
- A large order was placed for 1,500 pieces of teakwood furniture and production orders must start as soon as possible.
- Users reports the following:
- Only 100 pieces of furniture can be produced on the night shift due to resourcing. Enough raw materials are on hand to complete 100 pieces, but not enough to produce all 1.500 pieces.
- The production floor is organized into dedicated production lines, each with their own warehouse. The warehouse workers must pick the raw materials to the correct warehouse location.

Adatum Corporation is a multi-entity corporation located in Seattle, Washington in the United States. The company is a leading producer of specialty cakes and cookies. The company also manufactures specialty chocolates that use ethically sourced ingredients from around the world. The company plans to launch a new product line of organic chocolates later this year.

Adatum plans to implement Dynamics 365 Finance and Dynamics 365 Supply Chain Management to manage financials, inventory, and manufacturing capabilities across the entire organization.
- Manufactured products are stored at the distribution warehouses until they are shipped to customers.
- Individually branded pre-packaged cake and cookie mixes are supplied to specialty cafes and restaurants. The mixes are shipped directly to the cafes and restaurants from the production factories.
- The company maintains a fleet of trucks and also subcontracts shipments between the factories and warehouses to outside vendors.
- The mixes and specialty chocolates are based on standard recipes that use precise ingredient ratios. There are strict rules around ingredient substitutions.
- All mixes use one of three base recipes as their foundation: BaseA, BaseB. and BaseC. Additional ingredients, spices, and flavorings are then added to make the final product.
- BaseA and BaseB are made in large batches and stored until they are used in the other mixes.
- Mixes with BaseA have a shelf life of six months due to the type of flour it uses.
- Specialty chocolates are manufactured only during the holiday season.
- Specialty desserts are offered during the holiday season. This year, customers may specify additional icing colors and cake layers when placing orders. Depending on the popularity of two of the new colors, they may be offered the next year.
- Cocoa oil that is extracted during the production of some of the specialty chocolates is used in the BaseB foundation mix.
- Cleaning and setup of machinery between products has been causing delays in production.
- Prices of raw ingredients such as sugar can fluctuate greatly depending on seasonal and worldwide demand.
- To properly record profitability, ail raw materials use the first in, first out (FIFO) costing method, while finished products are recorded at standard costs.
- Large fluctuations have been occurring at month end in costs reported due to the inability to track production runs that span from month-to-month.
- Leftover flour and sugar from production runs are collected, packaged, and donated to local food banks if the amount is too small to use in other runs.
- To maintain Adatum's certification as a manufacturer of ethically sourced ingredients, the traceability of every ingredient in all products to their source must be tracked.
- All products must be randomly tested for adherence to quality standards for ingredient makeup and weight.
- Similar recipes must be able to be produced in succession to limit machinery cleaning and setup times.
- All costs must be tracked for each production run and be able to be reconciled at the end of the monthly accounting cycle, including any work in process (WIP) costs and donations.
- The organic chocolate line must be set up. The ingredients cannot be mixed with non-organic ingredients in inventory.
- Mixes are generally stored and sold in 16-ounce bags. Some quantities are sold and distributed in
5. 10. and 20-gallon containers to large restaurants.
- Each mix has a single unique item number and is tracked per batch produced.
- Specialty chocolate products must be stored in climate-controlled areas of the warehouse.
- QA TesterA discovers during a random test that the batch of a mix does not contain the necessary amount of IngredientB.
- VendorZ, who transports finished goods from PlantA to Warehouses, is consistently late picking up product.
- OperatorA must consolidate partial mix batch group runs into saleable package quantities.
- UserB must set up the mix items.
- UserC learns that mixes containing BaseA have been stamped with a batch date from the flour vendor and is not being calculated from the mix manufacturing date. The mixes from the past month that might be impacted need to be identified and the calculation needs to be corrected.
- UserD must update the costs of finished goods. Accounting wants labor calculated in WIP based on how much time an individual spends performing the operation, as well as the finished goods to post to a specific different ledger account.
- UserE must set up and maintain the cost of sugar.
- UserF must decrease downtime for the machinery.
- UserG must plan the specialty desserts for the current holiday season.

This Exam Topic does not have a case study.