Configure Lean Subcontracting with Transfer Activities in Dynamics 365 SCM
A company implements Dynamics 365 Supply Chain Management. Due to increased demand and limited space in the work cell area for product L0050, you must subcontract overflow work to another company. You have the following requirements: • Locate a warehouse at the subcontractor building. • Support picking and shipping activity tracking. • Associate costs of transporting materials between the locations in the cost of the finished product. You need to modify the production flow. Which three actions should you perform? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point.
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Community Insight
Lean subcontracting uses production flows with activities; you model the subcontractor as a work cell resource group, add transfer activities for material movement, and assign the overflow activity (not the operation) to the subcontractor.
To subcontract overflow work to another company with a warehouse at the subcontractor, picking/shipping tracking, and transported-material cost, create a subcontractor resource group, create transfer activities assigned to the subcontractor, and modify the overflow work activity to assign it to the subcontractor.
Do not modify the overflow work operation and associate it with the subcontractor - in lean manufacturing the unit of work is the activity, not the operation. Also, creating a new production flow version is not required to subcontract the overflow activity.
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Expert Analysis
Why the Answer Is Correct
The company needs to subcontract overflow work with a subcontractor warehouse, picking/shipping activity tracking, and transportation cost included in the finished product. In Dynamics 365 Supply Chain Management lean manufacturing, subcontracting is modeled through production flows. You create a resource and work cell resource group for the subcontractor (Option A) so the subcontractor is represented as a work cell. You create transfer activities and assign them to the subcontractor (Option C) to handle material movement to and from the subcontractor with activity tracking. You modify the overflow work activity and assign it to the subcontractor (Option D) so the actual overflow work is performed at the subcontractor. These three actions together meet all requirements.Why the Other Options Are Wrong
- Option B (modify the overflow work operation and associate it with the subcontractor) is incorrect because lean manufacturing uses activities, not operations; the work is represented by activities in the production flow.
- Option E (create a new production flow version) is not necessary to subcontract the overflow activity; an existing production flow can be modified.