Introduction: When a quality issue strikes – say a defective batch or a customer complaint – many organizations turn to an 8D report (Eight Disciplines) to drive root cause analysis and corrective actions. With the Microsoft Dynamics 365 Finance (and Supply Chain) 10.0.44 update, there’s a new way to manage this process digitally. Dynamics 365 introduces Corrective and Preventive Actions (CAPA) functionality, using case management workflows, to handle quality investigations within the ERP[1]. This means you can run a structured 8D or even 9D process directly in D365. Let’s explore how this works and why it’s a big deal for partners and customers across industries.
8D/9D Meets CAPA in Dynamics 365
By default, the CAPA feature in D365 comes with a standard template of stages (e.g. problem identification, investigation, action, verification). However, this template isn’t an exact 8D/9D report out-of-the-box. For example, it might not explicitly prompt you to “Form a Team” (D1) or “Recognize the Team” (D8 of 8D, D9 in 9D). The good news: D365’s CAPA is configurable.
Because it leverages the case management system, you can add or modify steps to match all nine disciplines of your 9D process[2]. In practice, you would load the provided CAPA process template and then tweak the stages and activities:
- Include missing steps: Add an initial activity for assembling the cross-functional team (D1) and a closing activity for final team recognition/report closure (D9).
- Rename or re-sequence: Align the stage names with familiar 8D terms (e.g. “Containment” for interim actions, “Root Cause Analysis” for investigation).
- Assign responsibilities: Leverage case management to assign each discipline to owners (e.g. Quality engineer for root cause, Production manager for corrective action), with D365 sending notifications and enforcing stage-gating (one phase must be completed before moving to the next).
This configuration effort is usually one-time. Once set up, every CAPA case you create in D365 will guide users through the tailored 8D/9D steps in order[2][2]. In other words, you get the rigor of the 9D methodology combined with the efficiency of an integrated system.
Why Run 8D/9D in D365?
Added value: Running your 8D/9D problem-solving within Dynamics 365 brings several advantages:
- Centralized Data & Visibility: All CAPA information (issue description, root cause, actions, etc.) is stored in D365 and tied to the relevant transaction or item. Managers can view the status of all ongoing CAPA cases in one place, improving oversight.
- Accountability and Efficiency: Each discipline of the 8D is an actionable task in D365. The system nudges the right people at the right time (with task assignments and reminders) so nothing falls through the cracks. This structured approach ensures, for example, that root cause analysis isn’t skipped and preventive measures are truly implemented before case closure[1].
- Better Compliance & Audit Readiness: Because the process is system-driven, you inherently get a timestamped log of every action. Combined with optional e-signatures for approvals[2], it’s easier to comply with quality standards. In fact, using a formal 8D within CAPA is recognized as a best practice to meet frameworks like ISO 9001 or FDA QSR[3].
- Continuous Improvement: Over time, having CAPA cases in one system allows trend analysis. You might discover recurring issues across multiple cases, leading to broader improvements. This is essentially the “apply learnings elsewhere” ethos of 9D, aided by data.
Conclusion: Dynamics 365’s new CAPA functionality bridges the gap between classic quality methodologies (like 8D/9D reports) and enterprise processes. It gives Dynamics partners an opportunity to deliver more value: instead of handling quality issues in separate spreadsheets or third-party systems, organizations can use D365 to drive both corrective and preventive actions in a unified way. The standard template might need a bit of tailoring to become a perfect 8D/9D workflow, but that flexibility is built-in[2]. The result is a smarter, more traceable problem-solving process. For any company looking to strengthen their quality management, this integration of 8D/9D into D365 Finance and Supply Chain offers a modern, efficient path to finding and fixing the root cause – and keeping it fixed.
This post was first published on the 31.07.2025 on the A business improvement blog by Andreas Raithel.
References
[2] CAPA management administration (preview) – Supply Chain Management …