Mixed Mode Mavericks: Running Discrete and Process Manufacturing on One Site in D365 F&O
- Beau Schwieso
- 3 days ago
- 3 min read
Dad‑joke warm‑up: My kids like peanut‑butter‑and‑jelly sandwiches. Mixed‑mode manufacturing is the ERP equivalent; two flavors, one bite, no sticky fingers on the keyboard.
Why bother with mixed mode?
Modern plants rarely stay in a single lane. A pet‑food plant extrudes kibble (process) and assembles treat packs with toys (discrete). Keeping two ERPs or shoe‑horning everything into one mode is like forcing every bolt and every bottle into the same drawer.... eventually something leaks. Dynamics 365 Supply Chain Management already supports all four production modes in the same legal entity, so you can let each product follow its natural path without losing scheduling, costing, or traceability control.
Core concepts you have to nail
Concept | Discrete angle | Process angle |
Item type | Production item with BOM | Production item with Formula |
Recipe | Bill of Materials (BOM) + Route | Formula + Route (or single Operation) |
Order type | Production order | Batch order |
Outputs | Single finished good | Finished good + optional co‑/by‑products |
Quantity basis | Eaches or pieces | Weight, volume, or catch weight |
Key takeaway: Discrete and process share the same resource model and inventory dimensions. The difference lives in the recipe and order type you choose when releasing. learn.microsoft.comlearn.microsoft.comlearn.microsoft.com
Executing orders without chaos
Releasing: The same Release to warehouse button pushes both Production and Batch orders to WMS.
Scheduling: The Gantt chart shows all orders; color code the route‑operation type so supervisors spot a process clean‑down before a discrete changeover. learn.microsoft.com
Shop‑floor feedback: Production operators scan license plates; process operators enter actual yields and attainments.
Quality: You can attach test groups to either order type. Batch attributes ride the lot number so a later discrete sub‑assembly can inherit allergen data automatically.
Costing and finance - keep the bean‑counters smiling
Co‑product cost allocation keys distribute the batch cost pool across marketable outputs.
Route card vs batch journal postings both land in WIP but use different voucher series to keep auditors sane.
Inventory valuation stays unified. You can report by cost group to split discrete labor from process energy spend.
Common pitfalls (and how to dodge them)
Mixed costing versions: Forgetting to activate the same cost version for both recipe types leads to negative margins.
WMS work templates: A discrete pick to Production input location colliding with a process bulk tank refill creates routing locks.
Formula rounding: Small batch pilots can blow out yields if minimum quantities aren’t set.
Planning buckets: Batch orders ignore min‑max days coverage if you copy discrete settings blindly.
Industry snapshots
Pet food – Extrude chicken‑and‑rice kibble (process) in 6 000 kg batches, then run a discrete packing line to seal 3 kg bags with promotional scoopers. Separate cost groups capture extrusion energy vs cartoning material.
Throughput metric: kg/hour extruded vs bags/minute packed.
Key setup: Two resource groups; extrusion mixer uses continuous‑capacity; bagging line uses finite capacity with calendar‑based breaks to avoid over‑promising.
Traceability trick: Lot attribute records vitamin premix potency; discrete bag inherits via lot inheritance rules so QA can block out‑of‑spec inventory instantly.
Nutraceuticals – Blend vitamin powder (process) during night shift, capsule and bottle on a discrete line by day. A single lot number flows from bulk blend to bottle, streamlining FDA recall readiness.
Regulatory must‑have: Attach an electronic‑signature workflow to batch order QA test results for FDA Part 11 compliance.
Yield management: Use Attainment in route operations—if actual fill weight drifts ±2 %, Copilot suggests route‑card adjustments.
Specialty vehicle plant – Weld chassis frames (discrete) while mixing proprietary two‑part epoxy (process) in small sealed drums seconds before application. Lot attributes record pot life so QA blocks any expired drum at pick time.
Just‑in‑time resin: Formula batch size = daily weld schedule; if production Gantt slips, Planning Optimization auto‑shrinks the adhesive batch order so the two‑part epoxy never expires.
Cost insight: Costing sheet group “Energy” pulls resin heater kWh into overhead, letting finance compare vehicle models on true power consumption.
Quick‑start checklist for project teams
Map each finished good to its natural order type.
Align coverage groups and minimum batch sizes.
Create shared resource calendars but separate resource groups.
Build one costing version with dual valuation methods enabled.
Test end‑to‑end traceability across both orders in a sandbox.
Keep learning
Topic | Learn module |
Discrete manufacturing basics | |
Process formulas & co‑products | |
Costing sheets & variance | |
Production order posting to GL |
Dad‑level sign‑off
Remember: whether you are bagging bolts or blending butter, the real recipe for success is the same; measure twice, cost once, and always keep the snack machine stocked for those late‑night MRP runs.
Catch you on the shop floor
DynamicsDad out.
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