Production Planning Business Processes

Make To Stock - Discrete Industry

Make To Stock - Process Industry

Make To Order - Discrete Industry

Make To Order - Process Industry

Make To Order With Variant Configuration

Make To Order Without Variant Configuration

Sales and Operation Planning Engineer To Order Repetitive Manufacturing Production Subcontracting (External Processing) Rework Processing (Stock Manufactured Material) .

Category Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing .

Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing .

Customer orders decrease the planned independent requirements at time of order entry and cost of sales is recognized in profitability at time of invoicing. Extensive planning steps such as material requirements planning usually run in the background. leveraging the pull list. QM in production. The business process includes analysis. based on the sales orders. subcontracting. Make to order processing is used to sell certain specialty chemicals. food and beverage industries as well as the batch–oriented electronics industry.and company closing. and can be displayed according to customer. forecasting for assemblies is useful in order to reduce the delivery time for the sales order.On receipt of the sale order for the filled material the MRP triggers a planned order for the filled material for the sale order qty. If the sales order configuration is not available as a material variant. The MTO – Sales Order Processing with Variant Configuration scenario demonstrates sales order processing using materials with pre-selected characteristic values (material variants). .The process can be enhanced individually by executing optional steps. the scenario is supported by the main cost object controlling functions required. such as preliminary costing and period–end closing This scenario provides an integrated platform for batch–oriented process manufacturing. This scenario describes the entire process sequence for the standard sales process (Make-to-Order) with a customer.The filled material is planned to plan the dependent requirement of the bulk. Planned orders are converted to process orders for manufacturing execution. This supports processes in the following manufacturing industries: chemical. This planned order can be convened in to a process order to execute the filling process.Bulk is manufactured and kept in stock based on the dependent requirements of the filled material. Material provisioning to the shop floor follows a similar process to that of repetitive manufacturing.The filled material is goods received to sale order stock and then delivered the customer. Orders are generated that are used to plan material requirements across all BOM levels.Description The scenario Make–to–Stock (MTS) Production describes a business process which is typical for companies with sales–order–independent lot size oriented production. These orders represent receipt elements for in-house production and external procurement. like serial number creation. the in-house production or procurement of products is only started when the sales order has been received. planning according to MRP logic. and evaluation of the planning results. The production is triggered by a production plan (planned independent requirements). The business process covers all steps: from the customer quotation to the clearing of a customer account after payment is received. customer service can configure the material on the order by choosing the required characteristic values. and automatic goods issues and goods receipts at time of order confirmation. The material flow between the BOM levels can be harmonized. which are filled and packed only after a sales order is received. The scenario consists of a two–level–production for subassembly and finished part using production versions. This business process is suitable for products with short replenishment lead times for the finished product and all incoming assemblies and components. pharmaceutical. The MRP run is used to plan the requirements. A sales order cost estimate is created on saving the order which is subsequently used to valuate the cost of goods sold. The Sales and Operation Planning process results in independent requirements that are used in material requirement planning (MRP). and components that are produced according to sales quantities planned for these variants. additional storage costs can be avoided in case of incorrect forecasts. This business process is useful if the costs of procurement and production of assemblies and components is very high. In make-to-order production. In case of long replenishment lead times for assemblies and components and low costs. although they may also be planned manually. Furthermore. credit management and plant. material staging and goods movements (goods issues and receipts) and confirmation of completion of the production orders.

production. existing. and the same material as output. if capacity bottlenecks occur. when a "planned order" for production is converted to a "production order". SAP Project-Oriented Procurement (ProMan) is used as an advanced tool to control the planning/purchasing steps in the order procedure. Routings tend to be simple and do not vary much. from the SD requirement to planning. and are settled into controlling as production variances. the rework process of stock manufactured material is realized in creating a new production order. the SD quotation has already been built in the system. During the manufacturing process. it gives several possibilities:In this scenario. estimated. and a rough project has already been created. case issues with the produced material are observed after it has been posted into inventory. The products produced always follow the same sequence through the machines and work centers in production. that are operations or sub-operations. Instead. The products produced are not manufactured in individually defined lots. At the start of the scenario. In real business. This scenario describes the order procedure in a standard ETO environment. and to enable inventory targets to be reached on the basis of historical. total quantity is produced over a certain period at a certain rate per part-period. . It can also provide a company with a feasible alternative to in-house processing. These steps are performed in the scenario : ETO . production. This process focuses on rework activities and material postings after production execution for the original material (including goods receipt of the product). and delivery. sales and operation planning (SOP) is a forecasting and planning transaction to enable sales. Costs are collected within the new production order. External processing is when you have individual production steps. Input component and product have the same material number. SAP Project System is used to control the whole procedure. purchasing. and future data. with an additional rework production order. In this scenario. For this process. the system checks if there are any routing or work-center operations that require external processing.A part of annual operating planning (AOP). Repetitive Manufacturing is commonly used when a production process meets the following criteria: The same or similar products are produced over a lengthy period of time.Quotation Processing . This type of processing is particularly important for subcontracting. which are performed outside of your company by a vendor. using the material that has to be reworked as input.

Fit/Partially Fit/GAP FIT FIT FIT FIT FIT FIT .

FIT FIT FIT FIT FIT .

Material delivered to customers. Confirming Assembly Activities. Material Requirements Planning at Plant Level. Availability check. Sales order entry for configurable material. Receive shop floor papers. Delivery and billing of the finished good. Convert Planned Order to Process Order. Characteristic value assignment. Manufacturing steps. Finished goods quality checks. Creation of follow on quotation with reference to first quotation. Posting Goods Receipt for Process Order. Billing. Provide material for quality. Order confirmation is sent to the customer and the production process is started. Shipment. Shipment. Material variant determination based on characteristic value assignment. Material delivered to customers. Material Requirements Planning (MRP). Goods receipt. Billing. Confirmation of Production after Goods Receipt Posting. Process follows creation of sales order. Carry out Scheduling activities. Customers credit limit is checked. Carry out material planning. Finished goods quality checks. In-House Production (subassembly). Planned Independent Requirements Creation. Firm plan and release to production. Process follows creation of sales order. Carry out Scheduling activities. Sales order and bill of material are recalculated. Customer requests a technical change. Receive shop floor papers. Delivery due list. Credit management check for delivery note. Capacity Leveling. Good issue. Material staging for process order.Key Process Creating Planned Independent Requirements. Availability check. Credit management check for sales order. Goods Issue of Components. Milestone Billing – down payment after order confirmation. Carry out material planning. Material staging for production order. Firm plan and release to production. Create sales order with reference to accepted follow on quotation. Raw material staging. Customer’s request to change the quotation. Production execution. Raw material staging. Post goods issue. Provide material for quality. In-House final assembly (Finished Good). Production execution. . Delivery processing.Plant or company closing activities. Creation of the quotation header.

work center capacity and material requirements are calculated. Detailed scheduling by production line. Posting goods receipt for rework production order. Milestone billing (Resource related and/or fixed price billing). Based on simulated production and operative production data (bills of material. Carry out material planning. Stock material at plant or distribution center. Shipment. Manufacture/Assemble product against network.Create sales plan and transfer to SOP (Sales and Operations planning). Release Rework Production Order. Periodic Payment. routings). Create sales order. Goods Receipt for “subcontracting” Purchase Order. Provide material for quality. . Goods issue for defective material. Enter Invoice. Use work centers capacity in AOP – general cost center planning. Use material requirements for AOP – purchase material price planning. Rough matching of budgeted sales quantities and production resources in SOP. Material delivered to customers. This process involves Creating Purchase Order for External Processing. Finished goods quality checks. Confirmation of rework production activities. Create planning scenario in “Long Term Planning” to simulate production planning for the budgeted sales quantities. Sales order processing. Plan material requirements. Billing.Carry out in-process quality checks. Develop technical structure of the product according to requirement. Production confirmation or production backflush against cost collector. The process involves Creation of rework production order. Create project with clear deliverables and responsibilities. Generate demand forecast.

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