Based in Humacao, Puerto Rico, Microsoft® Operations Puerto Rico (MOPR) is responsible for producing all optical media sold by Microsoft in the Americas. This fast-growing complex has a complement of 250 employees and produces 250,000 disks a day. Recognizing the need for a comprehensive enterprise resource planning system after recently doubling its production capacity, the organization implemented Microsoft Dynamics® AX 3.0. To enable continued growth and meet the need for better financial reporting and compliance capabilities, executives at MOPR decided to upgrade to Microsoft Dynamics AX 2009. Now, MOPR takes advantage of new features in Microsoft Dynamics AX 2009 to enable increased operational efficiency, better business intelligence, and improved internal audit compliance.
||Microsoft Dynamics AX 2009 gives us the tools we need for maximum flexibility and efficiency to deliver the kind of fast response our customers need.
||Julian Herencia, General Manager, Microsoft Operations Puerto Rico
Microsoft® Operations Puerto Rico (MOPR) is the optical media manufacturing branch of Microsoft that produces the installation disks for all of the Windows® operating system and Microsoft Office system products sold in the Americas. Located in the city of Humacao on Puerto Rico’s eastern coastline, MOPR employs 250 people.
From its founding, the organization has grown dramatically, taking on increasing responsibility for manufacturing and distributing Microsoft products throughout the region. In 2006, Microsoft expanded its investment in MOPR with the construction of a 90,000-square-foot facility, doubling production capacity from 45 million to 90 million disks a year.
To handle this two-fold volume increase in production and meet its mandate as one of the largest distributors of optical media for Microsoft worldwide, MOPR implemented Microsoft Dynamics® AX 3.0. By deploying Microsoft Dynamics AX 3.0, MOPR gained a comprehensive enterprise resource planning (ERP) system to replace the multiple systems used previously. Microsoft Dynamics AX 3.0 also enabled enhanced integration with the SAP system that Microsoft uses to manage its corporate financial data.
As the MOPR manufacturing facility continued to grow, managers recognized an opportunity to take advantage of emerging Microsoft technology to help meet aggressive performance goals, ease financial reporting tasks, and bolster compliance capabilities. Specifically, MOPR recognized that the next generation of Microsoft Dynamics AX could let them automate core manufacturing processes, improve business intelligence capabilities, and strengthen integration with the corporate SAP system of Microsoft.
Managers moved forward with the upgrade to a newer version of Microsoft Dynamics AX after evaluating potential gains in operational efficiency and employee productivity. They also saw the upgrade as an opportunity to improve communication and collaboration with vendors and customers, and to enforce compliance.
IT managers and other executives from the MOPR facility worked closely with members of the Microsoft Dynamics AX product team during the evaluation process. Leaders from MOPR carefully weighed the decision to upgrade to Microsoft Dynamics AX 4.0 against the opportunity to migrate to the latest version of Microsoft Dynamics AX 2009.
“Once we saw all of the new features available in Microsoft Dynamics AX 2009, like the reporting capabilities and the new RoleTailored user interface, we knew that this was the right solution to help us meet our business goals,” said Boris Torres, Director of Manufacturing at MOPR.
MOPR plans to take advantage of several new features and capabilities offered in Microsoft Dynamics AX 2009, including enhanced shop-floor integration, improved business intelligence and reporting, and increased process automation functionality.
Automation of Core Business Processes
To manage high-volume production at the MOPR facility, employees rely on efficient production planning and labor scheduling. Microsoft Dynamics AX 2009 provides enhanced master-planning capabilities, including maintenance tracking for machinery and tools and matching employee skill sets to individual machines and processes. This will enable MOPR to use plant resources more efficiently, while increasing the facility’s ability to measure actual performance against long-term production plans and forecasts.
In addition, the MOPR team looks forward to using the enhanced production management tools in Microsoft Dynamics AX 2009 to fully automate capacity management functions, such as tracking how the team allocates specific projects and orders. And MOPR plans to take advantage of new workflow capabilities in Microsoft Dynamics AX 2009 to further streamline operations through increased standardization of processes.
Business Intelligence and Reporting
MOPR plans to take full advantage of the enhanced business intelligence and reporting functionality in Microsoft Dynamics AX 2009 to further streamline operations and strengthen its ability to meet performance goals. For example, managers are eager to use the RoleTailored user interface of Microsoft Dynamics AX 2009 to easily set and track performance indicators for their teams and departments. Further, MOPR managers and executives anticipate using the powerful new reporting capabilities enabled by the integration with Microsoft SQL Server® Reporting Services to quickly analyze and share information about sales trends and production costs.
Hub-and-Spoke Integration with SAP
Leaders at MOPR are enthusiastic about the improved integration between Microsoft Dynamics AX 2009 and SAP, which will smooth out the transfer of order and financial data between the two systems in a hub-and-spoke manner. Purchase orders that originate in SAP are automatically transferred to Microsoft Dynamics AX 2009 and configured as sales orders. This seamless integration, combined with the rich reporting functionality in Microsoft Dynamics AX 2009, will enable MOPR to gain tighter control over its financial data and greatly simplify accounting and financial reporting tasks.
|The new Role Center makes it easy for MOPR employees to prioritize tasks.|
By upgrading its ERP system from Microsoft Dynamics AX 3.0 to Microsoft Dynamics AX 2009, MOPR expects to increase operational efficiency, improve strategic planning and decision making through better business intelligence, and strengthen its capacity for adhering to internal financial reporting and operational compliance standards.
Increased Operational Efficiency
Through the increased automation of core business functions, such as production planning and labor scheduling, managers at MOPR expect to allocate plant resources even more efficiently than in the past. In addition, MOPR expects to realize significant time savings using the new reporting capabilities available in Microsoft Dynamics AX 2009. Microsoft Dynamics AX 3.0 delivered immediate returns by automating reporting that once took several people each day to complete. Now, MOPR will take advantage of the powerful reporting capabilities in Microsoft Dynamics AX 2009 to further streamline these tasks.
Improved Business Intelligence
MOPR executives expect to see significant benefits around the acquisition of better business intelligence through the implementation of Microsoft Dynamics AX 2009. By integrating Microsoft Dynamics AX 2009 with Microsoft SQL Server Reporting Services, managers can quickly access data across the entire organization and easily share this information through a variety of reports. “The Role Center and reporting capabilities of Microsoft Dynamics AX 2009 give us the ability to gain better business intelligence so that we can make better-informed decisions,” says Herencia.
Stronger Internal Audit Compliance
MOPR will also benefit from the integration between Microsoft Dynamics AX and SAP. A stronger automated exchange of auditable information between the two systems will enable MOPR to strengthen its compliance with internal financial reporting policies. As a result, MOPR executives expect to save substantial time during each audit cycle. Further, the enhanced workflows in Microsoft Dynamics AX 2009 will help increase operational compliance.
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