In manufacturing, having control over changes to product designs and specifications is crucial. Engineering change management (ECM) is a process that ensures these changes are adequately reviewed, approved, and implemented. With the release of Dynamics 365 for Finance and Operations, Microsoft has integrated ECM into its supply chain management. In this post, we’ll explore what ECM is and how it works in Dynamics 365 F&O.
How Engineering Change Management (ECM) Works in D365 FO
ECM is a crucial process in product development that allows manufacturers to make changes to product designs, processes, materials, or components while preserving the integrity of existing products. The ECM process typically consists of four stages – request, analysis, implementation, and review.
In Dynamics 365 Finance and Operations, users can initiate an ECM request by creating a change proposal, which includes essential details such as the reason, impact, priority, and urgency of the change. The proposal is then routed for approval, and upon approval, a change project is initiated. The change project manages the implementation of the change, including task assignment and necessary modifications to the item or process.
Benefits of Engineering Change Management
ECM in D365 FO offers several advantages. It ensures efficiency by streamlining the change management process, which often involves collaboration among multiple teams. The system’s automation and integration capabilities facilitate collaboration and reduce the risk of errors.
Similarly, ECM allows users to track and manage changes efficiently. They can monitor changes from start to end and access real-time data on the change’s status, enabling them to make informed decisions.
The efficiency of tracking and managing changes in D365FO ECM comes from its robust and comprehensive features. Users can easily initiate and monitor changes from inception to completion, providing a clear and concise overview of the entire process. Each change proposal is assigned a unique identifier that allows for easy tracking. Furthermore, the system allows for the assignment of tasks related to the change to specific team members, ensuring accountability and transparency.
Changes can be segmented by various factors such as status, priority, or urgency, allowing users to prioritize their tasks effectively. Furthermore, due to the system’s integrated nature, changes made are updated in real-time across all relevant modules. This means that all stakeholders can access and review the latest data, which enables quick decision-making and ensures all team members are on the same page. This combination of features makes D365FO ECM a powerful tool for efficiently managing engineering changes.
ECM in D365FO enables organizations to maintain high product quality by ensuring that product changes undergo a rigorous review process that includes analyzing the impact on related processes, inventory, and documents.
Challenges of Engineering Change Management in Dynamics 365 Finance and Operations
One of the main challenges is the need for effective communication and collaboration among different teams. For example, the change analyst needs to consider the impact of the proposed change on business processes, inventory, and documents. Therefore, communication and collaboration are crucial to ensure that all stakeholders are well-informed and aligned.
Setting Up an Engineering Organization in Dynamics 365 Finance and Operations
To establish an engineering organization in Dynamics 365 F&O, you need to define it as a named group of workers who have a formalized responsibility within the ECM process. This setup is important as it enables accurate task assignment and efficient collaboration during the change management process. Here are the steps:
1. Navigate to the ECM Page: Go to Engineering Change Management > Setup > Engineering Organization. Select + New or Edit. Save your changes.
Creating an engineering organization in Dynamics 365 F&O enhances change management by providing structure and defining roles. It improves efficiency, and transparency, and ensures the right skills are involved at each stage. This leads to successful change implementation and maintains product quality and process integrity.
Engineering Change Severities
In Dynamics 365 Finance and Operations, Engineering Change Severities represent the classification of changes according to their impact and urgency. They are crucial in prioritizing and managing the changes. For instance, high severity might be assigned to changes that have a significant impact on the product’s performance, while low severity could be assigned to minor amendments. To set up Engineering Change Severities in Dynamics 365 F&O:
1. Navigate to Engineering Change Management > Setup > Change Severity
2. Click + New to create a unique code for the security level.
3. Provide a description of the severity level.
4. Save your changes.
Setting Up a Product Owner in Engineering Change Management in Dynamics 365 Finance and Operations
The Product Owner holds a pivotal position in ECM in Dynamics 365 F&O. They are entrusted with reviewing and approving change proposals, while also overseeing the implementation of accepted modifications. Additionally, they have the authority to release the product. Here is a guide on how to establish a Product Owner:
1. Navigate to Engineering Change Management > Setup > Product Owner.
2. Click + New to open a form where you can enter the details of the Product Owner.
3. Choose from the dropdown menu to specify your details.
4. Save your changes.
Setting Up Engineering Workflows
Engineering workflows are crucial for managing the review and approval processes in the Engineering Change Management module. They ensure that tasks are completed in a systematic and controlled manner, improving efficiency and reducing errors. To set up engineering workflows in Dynamics 365 Finance and Operations, follow these steps:
1. Navigate to Engineering Change Management > Setup > Engineering Workflows. This will open Power Automate.
2. Click + New to initiate the creation of a new engineering workflow.
3. Enter a unique code and description for your workflow. This helps users understand the purpose and function of the workflow.
4. Define the sequence of tasks that should be followed in the workflow. Each task can be assigned to a specific role or individual. Make sure to define the conditions that need to be met for the workflow to progress to the next step.
5. Save your changes.
Remember, well-defined workflows are essential in the ECM module as they map out the entire process of change management, ensuring that every step is executed as planned and that all stakeholders have a clear understanding of their roles and responsibilities.
Engineering Change Management Parameters in D365FO
The Engineering Change Management (ECM) parameters in D365 FO allow users to customize their ECM module to fit their specific needs. They control various aspects of the ECM process, such as defining default values, setting up notifications, and controlling the interaction with other D365FO modules. These parameters help to streamline the workflow, enhance communication, and ensure the effective implementation of changes.
To set up ECM Parameters in Dynamics 365 F&O, follow the steps below:
1. Navigate to Engineering Change Management > Setup > Engineering Change Management Parameters.
2. Fill out the fields on the ECM Parameters page based on your organization’s requirements. Set default values for category and severity rules, re-release impact, priority, and BOM level release for engineering change requests and orders. change requests, configure notification settings
Product Life Cycle States in D365FO
The Product Life Cycle (PLC) states in D365FO represent the various stages a product undergoes, from its inception to market removal. With the Product Life Cycle module, you can effectively manage and control these stages, from concept to retirement. Key states include “Under Development,” “In Production,” “Mature,” and “End of Life.” Effectively managing these states is crucial for product success, enabling companies to strategize, plan, and make informed decisions based on the current life cycle stage.
To set up Product Life Cycle states in Dynamics 365 FO:
1. Access Product Information Management > Setup > Product Life Cycle < Life Cycle States.
2. Click + New to define a unique state for the product’s life cycle.
3. Provide a description.
4. Assign a status.
5. Save your changes.
Final Thoughts
In summary, Engineering Change Management (ECM) plays a vital role in product development, allowing manufacturers to implement changes while minimizing the impact on existing products. Dynamics 365 for Finance and Operations offers a robust ECM module that empowers users to efficiently create, track, and manage changes.
By leveraging ECM in Dynamics 365 Finance and Operations, users can streamline their change management process, foster collaboration, and uphold high product quality. While implementing ECM in D365 FO may present challenges, effective communication and collaboration among teams, meticulous planning, and leveraging the system’s capabilities can help organizations overcome them.
The post Understanding Engineering Change Management (ECM) in Dynamics 365 Finance & Operations appeared first on Dynamics Communities.