MB-320 Question #2: Real Exam Question with Answer & Explanation

Case Study 1 Background 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: Current environment 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 Sales orders 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 manufacturing 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. Current environment 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. Defaults 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 In the current system, the company cannot calculate overhead rates and determine the breakdown of material, labor, machine, and overhead costs for production. The company is manually calculating an 8% overhead on materials and posting a journal manually. You need to set up the correct production solution for the assembly area. Which solution should you implement?