Asset Management and Quality Control. These are two systems that ensure a company’s equipment is working properly and that its products are built correctly. For the MB-920 exam, you need to understand how Dynamics 365 Supply Chain Management helps businesses keep their machines running and their product quality high.
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A simple way to picture Asset Management and Quality Control
Ever wondered how a massive library keeps track of every single book, from the newest bestseller to a dusty 100-year-old novel, and makes sure they are all in good condition for readers?
Think of that library as a company's physical assets – all the machinery, vehicles, buildings, and tools it owns. The Library Catalogue is an 'Asset Management' system. It doesn't just list the book's title and location. It records its purchase date, how many times it has been borrowed (its usage), when it was last repaired, and its expected date to be replaced. The Library's Repair Workshop is 'Quality Control'. Before a book goes back on the shelf, a librarian inspects it. Is a page torn? Is the spine cracked? If it's damaged, it goes to the workshop for repair. If it's beyond repair, it is 'scrapped' and removed from the catalogue.
Without the catalogue, the library wouldn't know if it owned a copy of 'War and Peace'. Without the workshop, it would lend out damaged books. In a business, Asset Management tracks the lifecycle of equipment (procurement, maintenance, retirement), while Quality Control ensures that goods and processes meet defined standards before they reach the customer or next stage of production.
Let’s break down these two concepts. They sound like they belong on a factory floor, and they do, but they also apply to any business that owns stuff and makes stuff.
What is a Fixed Asset? First, understand the 'asset' part. In business, a fixed asset is something a company owns and uses for a long time, usually over a year, to run its operations. Think of a delivery truck, a factory robot, or a laptop computer for an employee. These are not things the business sells to customers; they are things the business uses to make money. Asset Management is the process of tracking these items from the moment they are bought to the moment they are sold or thrown away. This is called the 'asset lifecycle'.
Asset Management in Dynamics 365 Dynamics 365 Supply Chain Management has a module (a section of the software) called 'Asset Management'. It is a digital file for every piece of machinery. This file records: - Purchase details: When was it bought? From whom? How much did it cost? - Location: Where is it physically? On the factory floor, in Warehouse B? - Maintenance history: When was it last serviced? What was fixed? What is the next service due date? - Condition: Is it in 'Good', 'Needs Repair', or 'Scrapped' status?
The software can automatically schedule 'preventive maintenance'. For example, if the manual says the machine needs an oil change every 6 months, Dynamics 365 creates a work order (a task for a technician) automatically. This stops machines from breaking suddenly, which is called 'unplanned downtime'. The goal is to maximise 'uptime' – the time the machine is actually working and making products.
Quality Control in Dynamics 365 Quality Control is a separate but related system. It makes sure that what the company makes (raw materials, parts, finished goods) meets certain standards. Think of it as the inspector on the production line. In Dynamics 365, this is the 'Quality Management' module. It works by creating 'quality orders'.
Here is how it works: 1. You define 'quality standards'. For example, a bolt must be exactly 5cm long. 2. When a batch of bolts is produced, the system triggers a 'quality order'. This is a task saying: 'Inspect these 10 bolts out of the batch of 1000.' 3. The inspector enters the test results into the system: '5.1cm, 4.9cm, 5.0cm...' 4. The system compares the results to the standard. If all are within an acceptable range (e.g., 4.9cm to 5.1cm), the order is 'passed'. If not, it is 'failed'. 5. If the order fails, the system can automatically block the entire batch of bolts from being shipped to customers. The batch is put 'on hold' until someone decides if it can be reworked, scrapped, or used for a less important job.
You can link quality controls to different stages:
Incoming goods: Checking raw materials from a supplier before they go into storage.
In-process: Checking products while they are being made, halfway through production.
Outgoing goods: Checking finished products just before they are shipped to a customer.
Nonconformance and Corrective Actions When quality fails, the system creates a 'nonconformance' record. This is a formal document saying 'This thing did not meet the standard'. Then, a manager can create a 'corrective action' – a plan to fix the problem. Maybe the machine needs recalibrating, or the supplier needs better training. The software tracks whether the corrective action was completed.
Why replace paper records? Before software like this, companies used paper logbooks, spreadsheets, and filing cabinets. A mechanic wrote 'Serviced machine 42' on a paper slip, and someone typed it into a spreadsheet a week later. If the paper got lost, nobody knew. If a quality inspector in the factory found a problem, he had to walk to the main office to report it. The software replaces all of that slow, error-prone paper work with instant, centralised data. This is crucial for the exam – you must know that these modules automate processes and reduce human error.
Define a Fixed Asset Record
First, you create a record in the Asset Management module for each piece of equipment. You enter details like the asset ID (a unique number), its location, purchase date, and expected lifespan. This is the digital file for the machine.
Set Up Preventive Maintenance Schedule
You configure rules in the system. For example, 'Run a service check on the conveyor belt every 200 hours of operation' or 'Lubricate motor every 60 days'. The software will automatically track usage or time to know when to act.
Generate Work Orders Automatically
When the time or usage count is reached, Dynamics 365 automatically creates a 'work order'. This work order includes the specific job to be done (e.g., 'Replace air filter'), the required spare parts, and the assigned worker. No human needs to write this down.
Define a Quality Standard and Test
In the Quality Management module, you define what 'good quality' means. For example, 'Temperature of finished bread must be between 20-25°C'. You then set up rules so that the system automatically creates a 'quality order' every time a batch of bread is completed.
Inspect and Record Results
The quality inspector receives the quality order on a tablet or computer. They physically measure the bread temperature and type in the result. The system compares this to the standard and marks the quality order as 'Passed' or 'Failed'.
Handle Failed Inspection
If the quality order fails, the system creates a 'nonconformance' record. It also places a 'block' on the inventory batch – meaning the batch cannot be moved, used, or shipped. A manager then reviews the nonconformance and decides: scrap, rework, or accept as-is with a note.
Meet Sarah, the maintenance manager at a company called 'FreshBake', which makes factory-produced bread. She uses Dynamics 365 every day.
Morning: Preventive Maintenance Sarah logs in to the Asset Management module. She sees a dashboard showing 'work order' notifications. The software has automatically created a work order for the main dough mixer, Machine M-101. Why? Because the system knows it has been running for 2,000 hours, and the manufacturer says it needs new belts every 2,000 hours. The work order tells her mechanic, Dave, exactly what to do ('Replace belts') and lists the exact spare parts needed ('Belt, Part Number 456-78'). Dave grabs the parts from the warehouse, does the job, and marks the work order 'completed' on his tablet.
Afternoon: Unplanned Downtime An alarm goes off. The oven temperature probe has failed. The oven can't bake bread properly. Sarah creates an 'emergency' work order. Inside the system, she links the work order to the specific 'Asset' record – Oven-OV-01. She can see on the asset record that the same probe was replaced six months ago. Now she can use that history to ask the finance team if they should buy a better-quality probe from a different supplier. The system tracks this cost. This is 'asset lifecycle management' – knowing the total cost of owning that oven, including repairs.
Quality Control: The Daily Test Meanwhile, the quality inspector, Priya, gets a notification. A batch of 500 loaves has finished baking. The system has automatically created a 'quality order' for this batch. Priya takes three loaves from the batch to the lab. She weighs them, measures their height, and tests the texture. She enters the data into the 'quality order' form in Dynamics 365. The software automatically compares her results to the 'quality standard' defined for 'Whole Wheat Loaf'. All three loaves pass. The system then 'releases' the batch. It is now available to be shipped to the supermarket. Had they failed, the system would have 'blocked' the batch, and Priya would have had to create a 'nonconformance' record.
Manager Review At the end of the week, Sarah’s manager looks at a report in Dynamics 365 called 'Asset Downtime'. It shows that the oven was down for 2 hours this week (the probe failure) and the mixer was down for 30 minutes for preventive maintenance. He uses this data to decide whether they need to buy a backup oven next year.
In short, the IT professional (Sarah, in this case) doesn't just fix machines. They use the software to plan work, track history, control quality, and provide data for managers to make business decisions. This is what Dynamics 365 does: it connects the physical world (machines, loaves of bread) to a digital record system.
The MB-920 exam is not asking you to be a mechanic or a quality inspector. It is asking you to understand the *concepts* and *capabilities* of the software. Here is exactly what they test for this topic.
Key Concepts They Love to Test:
- Asset Lifecycle: They want you to know the stages: Procure -> Operate -> Maintain -> Retire (sell or scrap). - Preventive vs. Corrective Maintenance: This is a big one. - 'Preventive maintenance' is scheduled work to prevent failure (e.g., oil change every 6 months). The system *automates* this. - 'Corrective maintenance' is repair work done *after* a failure (e.g., fixing a broken belt). - Quality Orders vs. Nonconformance: - A 'Quality Order' is the test itself (e.g., 'Test batch X'). - A 'Nonconformance' is the result of a failed test (e.g., 'Batch X failed because of incorrect weight'). - Corrective Actions: The step taken to fix the root cause of a nonconformance. This is not the same as just repairing the item – it is about preventing it from happening again. - Linking to other modules: Quality Control links to 'Inventory Management' (blocking stock) and 'Production Control' (testing during production). Asset Management links to 'Project Management' and 'Finance' (cost tracking).
Common Exam Traps (what they try to trick you with):
Trap 1: Confusing 'Preventive' and 'Predictive'. The MB-920 tests 'Preventive' (scheduled by time or usage). 'Predictive' maintenance (using sensors to predict failure) is a more advanced concept not emphasised at this level. If the question says 'scheduled oil change', that is Preventive. If it says 'sensor detecting vibration', that is Predictive (though you rarely need to know that for the fundamentals exam).
Trap 2: Thinking Quality Control only happens at the end. The exam tests that you can set quality checks at *any* point: incoming, in-process, or outgoing goods.
Trap 3: Forgetting the 'Automatic' nature. A frequent question is: 'How does the system start a quality test?' The answer is almost always: 'The system automatically creates a quality order based on predefined rules.' It does not require a manager to manually start each test.
Trap 4: Confusing 'Asset Management' with 'Financial Assets'. This module is about *physical* assets (machines, trucks), not bank accounts or bonds.
How to Answer a Typical Question:
If the question says: 'A company wants to ensure its factory machines are serviced every 3 months to avoid breakdowns. Which feature should they use?' - Correct answer: 'Preventive maintenance in the Asset Management module.' - Wrong answer: 'Corrective maintenance' – that is after the breakdown. - Wrong answer: 'Quality orders' – that is for checking product quality, not machine health.
Memorise these definitions cold. Know that 'Asset Management' is for *equipment* and 'Quality Management' is for *products*.
Asset Management in Dynamics 365 tracks the entire lifecycle of physical equipment from purchase to retirement, focusing on maintenance and repair scheduling.
Quality Management creates quality orders that automatically trigger inspections on raw materials, work-in-progress, or finished goods.
A failed quality check generates a nonconformance record and blocks the inventory until a human decides the outcome.
Preventive maintenance is scheduled work done to prevent breakdowns, while corrective maintenance is done after a failure has occurred.
Work orders in Asset Management assign repair tasks to technicians, whereas quality orders assign inspection tasks to quality inspectors.
Both modules work together with Inventory and Production modules to ensure equipment reliability and product quality.
These come up on the exam all the time. Here's how to tell them apart.
Asset Management
Focuses on machines and equipment.
Uses work orders for maintenance tasks.
Goal is to maximise machine uptime and lifespan.
Quality Management
Focuses on products and materials.
Uses quality orders for testing tasks.
Goal is to ensure product meets defined standards.
Preventive Maintenance
Scheduled in advance based on time or usage.
Aims to prevent breakdowns before they happen.
Usually less urgent and more predictable to plan.
Corrective Maintenance
Performed after a breakdown or failure occurs.
Aims to fix a problem that has already happened.
Often urgent and causes unplanned downtime.
Quality Order
The request to perform a test on a batch.
Created automatically or manually before testing.
Has a status like 'Open' or 'Completed'.
Nonconformance
The record created after a test fails.
Documents what went wrong and why.
Triggers a block on the inventory and prompts a corrective action.
Work Order (Asset Management)
Assigns a task to a technician.
Focuses on repairing or servicing a machine.
Links to asset record, spare parts, and labour.
Quality Order (Quality Management)
Assigns a task to an inspector.
Focuses on testing a product or material.
Links to item record, test results, and quality standards.
Mistake
Asset Management is only about tracking the value of a machine for accounting purposes.
Correct
Asset Management in Dynamics 365 is primarily about the physical maintenance and operation of equipment, not just its financial depreciation. It focuses on scheduling repairs, tracking breakdowns, and managing spare parts.
People confuse the term 'asset' with 'fixed asset accounting'. The exam focuses on the operational side – keeping machines running – not just the financial value.
Mistake
Quality Control only checks the final product before it is shipped to the customer.
Correct
Quality Control in Dynamics 365 can be set up at any point: checking raw materials from suppliers (incoming), testing goods while they are being assembled (in-process), and testing finished goods (outgoing).
Beginners often think of 'inspection' as the final step on an assembly line. The software is more flexible – you can check quality at the very beginning to catch bad supplies early.
Mistake
If a batch fails quality control, the system automatically scraps it.
Correct
The system does not automatically scrap materials. It creates a 'nonconformance' record and 'blocks' the inventory so it cannot be shipped. A human manager then reviews the nonconformance to decide whether to scrap, rework, or accept the goods at a discount.
People assume the software makes a final decision. In reality, the system flags the problem but requires a human decision.
Mistake
A 'work order' in Asset Management is the same as a 'quality order' in Quality Management.
Correct
A work order assigns a task to a technician to repair or service a machine (a job for Asset Management). A quality order assigns a task to an inspector to test a product (a job for Quality Management). They are different modules with different purposes.
Both are 'orders' that tell someone to do something. Beginners lump them together because the names sound similar. The exam tests your ability to separate equipment management from product testing.
Mistake
The software requires a human to manually schedule every maintenance task.
Correct
Dynamics 365 can automatically generate work orders for maintenance based on a schedule (e.g., every 90 days) or a meter reading (e.g., every 500 hours of use). This is called 'preventive maintenance scheduling'.
This mistake stems from not understanding automation. The whole point of the software is to reduce manual paperwork and schedule tasks automatically based on rules.
Reveal each answer, then mark whether you got it right. Score 60%+ to unlock the next chapter.
Yes, you can use it for any physical asset you want to maintain. While it is designed for heavy equipment, you can track anything, from a laptop to a fleet of vans, as long as you want to schedule repairs or track their lifecycle.
Yes. If a batch fails the first quality order, you can typically create a new quality order for the same batch after taking corrective action. The original nonconformance record stays for auditing, but you can re-test to see if the fix worked.
The quality order remains 'Open' or 'In Progress'. The related inventory batch remains 'Blocked' and cannot be shipped or used for production. The system will not allow the transaction to proceed until the quality order is completed.
No. The Fixed Assets module in Dynamics 365 Finance handles the financial side (depreciation, value). The Asset Management module in Supply Chain Management handles the physical side (maintenance, work orders). They can be integrated but serve different purposes.
Yes. You can set up rules in Quality Management to automatically trigger a quality order for items received from a specific supplier or supplier group. This is called 'incoming quality control'.
Yes. When you create an asset record, you can add a Bill of Materials (BOM) listing the required spare parts. When a work order is generated, the system automatically suggests those parts from the inventory, making it easier for the mechanic to gather them.
You've finished Asset Management and Quality Control. Continue through the MB-920 study guide to build a complete picture of the exam.
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