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

Description

The scenario MaketoStock (MTS) Production describes a business process which is typical for companies with salesorderindependent lot size oriented production. The production is triggered by a production plan (planned independent requirements). The scenario consists of a twolevelproduction for subassembly and finished part using production versions, material staging and goods movements (goods issues and receipts) and confirmation of completion of the production orders. Furthermore, the scenario is supported by the main cost object controlling functions required, such as preliminary costing and periodend closing

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

A part of annual operating planning (AOP), sales and operation planning (SOP) is a forecasting and planning transaction to enable sales, production, and to enable inventory targets to be reached on the basis of historical, existing, estimated, and future data.

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

Fit/Partially Fit/GAP

FIT

FIT

FIT

FIT

FIT

FIT

FIT

FIT

FIT

FIT

FIT

Key Process

Creating Planned Independent Requirements, Material Requirements Planning at Plant Level, In-House Production (subassembly), In-House final assembly (Finished Good), Material staging for production order, Capacity Leveling, Good issue, Confirming Assembly Activities, Goods receipt.

Planned Independent Requirements Creation, Material Requirements Planning (MRP), Convert Planned Order to Process Order, Material staging for process order, Goods Issue of Components, Posting Goods Receipt for Process Order, Confirmation of Production after Goods Receipt Posting.

Process follows creation of sales order, Availability check, Carry out material planning, Carry out Scheduling activities, Firm plan and release to production, Receive shop floor papers, Raw material staging, Production execution, Provide material for quality, Finished goods quality checks, Material delivered to customers, Shipment, Billing.

Process follows creation of sales order, Availability check, Carry out material planning, Carry out Scheduling activities, Firm plan and release to production, Receive shop floor papers, Raw material staging, Production execution, Provide material for quality, Finished goods quality checks, Material delivered to customers, Shipment, Billing.

Sales order entry for configurable material, Characteristic value assignment, Material variant determination based on characteristic value assignment, Credit management check for sales order, Manufacturing steps, Delivery processing, Delivery due list, Post goods issue, Credit management check for delivery note,Plant or company closing activities.

Creation of the quotation header, Creation of follow on quotation with reference to first quotation, Customers request to change the quotation, Create sales order with reference to accepted follow on quotation, Customers credit limit is checked, Order confirmation is sent to the customer and the production process is started, Milestone Billing down payment after order confirmation, Customer requests a technical change, Sales order and bill of material are recalculated, Delivery and billing of the finished good.

Create sales plan and transfer to SOP (Sales and Operations planning), Rough matching of budgeted sales quantities and production resources in SOP. Create planning scenario in Long Term Planning to simulate production planning for the budgeted sales quantities. Based on simulated production and operative production data (bills of material, routings), work center capacity and material requirements are calculated. Use material requirements for AOP purchase material price planning. Use work centers capacity in AOP general cost center planning. Create sales order, Create project with clear deliverables and responsibilities, Plan material requirements, Develop technical structure of the product according to requirement, Manufacture/Assemble product against network, Finished goods quality checks, Material delivered to customers, Milestone billing (Resource related and/or fixed price billing). Generate demand forecast, Carry out material planning, Detailed scheduling by production line, Production confirmation or production backflush against cost collector, Provide material for quality,Carry out in-process quality checks, Stock material at plant or distribution center, Sales order processing, Shipment, Billing.

This process involves Creating Purchase Order for External Processing, Goods Receipt for subcontracting Purchase Order, Enter Invoice, Periodic Payment.

The process involves Creation of rework production order, Release Rework Production Order, Goods issue for defective material, Confirmation of rework production activities, Posting goods receipt for rework production order.