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Business Central’s Manufacturing Capabilities – Everything You Need to Know in Five Minutes

Updated: Aug 10, 2021

Digital Transformation for the Manufacturing Industry with Microsoft Dynamics 365 Business Central


What is digital transformation of the manufacturing industry? Industry 4.0 is the digital transformation of industrial markets (industrial transformation) with smart manufacturing currently on the forefront. What’s the point in a so-called digital revolution of the manufacturing industry? The point is the same as with all other digital revolutions, to increase operational efficiencies by becoming a speed and information rich organization that produces higher standard products while bringing costs down.


3D printing software

Manufacturers can choose to either evolve digitally or face certain struggles. The first change that every manufacturer should invest in is a robust Enterprise Resource Planning (ERP) software such as Microsoft Dynamics 365 Business Central.

What is ERP Manufacturing Software? Manufacturing ERP software tracks and controls the operations used to convert material into produced end items. An important part of executing production, from a software standpoint, is to post production output to the database to report progress and to update inventory with the finished items.

Business Central Manufacturing Capabilities and Features


Production Bill of Materials

  • Create bills of materials and calculate standard costs. Required for the configuration of all other Manufacturing modules.

Production Orders

  • Create and manage production orders and post-consumption and output to the production orders and post-consumption and output to the production orders.

Agile Manufacturing

  • Plan rush hours, make exceptions and handle last-minute changes to your processes with multiple planning options.

Version Management

  • Create and manage different versions of the manufacturing bill of materials and routings.

Supply Planning

  • Plan for material requirements based on demand, with support for master production scheduling and material requirements planning.

Demand Forecasting

  • Plan and create production and purchase orders, taking into consideration the demand forecast together with the level of available inventory and parameters of requirement planning.

Capacity Planning

  • Add capacities to the manufacturing process. Set up routings and use these routings on production orders and in material requirements planning.

Finite Loading

  • Take capacity constraints into account so that no more work is assigned to a work center than the capacities can be expected to execute during a given time period.

Machine Centers

  • Manage capacity on several levels; on a more detailed level for machine centers and on consolidated level for centers.


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