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The difference between MTO and MTS is MTO--> Make to Order Production is the process where the production order is triggered from a Sales Order. Ex: The Prod process will start only after receiving the sales order from the customer. In this case the product could be customer specific only (Variant) MTS--> Make to Stock MTS scenario can be accomplished by the following settings Need to use strategy group 20 in material master MRP view-Stretgy group 20 is assigned to strategy 20 Strategy 20 is assigned to Requirement type KE (Individual customer requirement) Requirement type KE is assigned to requirement class 040 (Indiv.cust.w/o cons.) Requirement class has all the parameters where we can define Prodcution order type that will be used to create the prod order. The above link needs to be established. Also the MTS can be achieved using Sales Order schedule line catagory which will be assigned to Requirement type/class. Item category is assigned to Reqtype/class and the Item category is maintained in the material master. You can use any of the baove config settings. For MTO --> you just need to have all PP cycle settings in place nothing special needed as it is a plain PP cycle. 1. Make-to-order production is a process in which a product is individually manufactured for a particular customer. In contrast to mass production for an unspecified market where a material is manufactured many times, in make-to-order production a material is created only once though the same or a similar production process might be repeated at a later time. 2. You can use make-to-order production in two scenarios - (a) For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured (Variant Configuration). (b) When a product has to be assembled particularly for a sales order (Individual Customer Requirement). 3. Stock keeping is not usually carried out for products that are made to order. In companies using make-to-order production, the demand program only determines the production area, in which various variant types are produced. Depending on how you track the costs associated with make-to-order production, there are two ways to process make-to- order items during sales order processing. (a) Make to order using sales order (b) Make to order using project system (not relevant for SD application) 4. For make to order production using the sales order, all costs and revenues involved for an order item are held collectively at that item. A particular rule is used that can be changed manually to transfer costs to profitability analysis. 5. Make to order production is largely a production planning configuration. It is also controlled by the requirements type, which is determined by three things the strategy group (MRP 3) in MMR the MRP group (MRP1) in MMR the item category and MRP type (MRP 1) 6. Make-to-order production is controlled by the requirements type. The requirements type is determined on the basis of the MRP group (MRP1) and the strategy group (MRP3) in the material master record. In addition, a plant must be assigned for make-to-order items in the sales order. MTO - Make to Order

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Page 1: make to stock vs make to order

The difference between MTO and MTS is

MTO--> Make to Order

Production is the process where the production order is triggered from a Sales Order. Ex: The Prod process will start only

after receiving the sales order from the customer. In this case the product could be customer specific only (Variant)

MTS--> Make to Stock

MTS scenario can be accomplished by the following settings

Need to use strategy group 20 in material master MRP view-Stretgy group 20 is assigned to strategy 20

Strategy 20 is assigned to Requirement type KE (Individual customer requirement)

Requirement type KE is assigned to requirement class 040 (Indiv.cust.w/o cons.)

Requirement class has all the parameters where we can define Prodcution order type that will be used to create the prod

order. The above link needs to be established.

Also the MTS can be achieved using Sales Order schedule line catagory which will be assigned to Requirement type/class.

Item category is assigned to Reqtype/class and the Item category is maintained in the material master.

You can use any of the baove config settings.

For MTO --> you just need to have all PP cycle settings in place nothing special needed as it is a plain PP cycle.

1. Make-to-order production is a process in which a product is individually manufactured for a particular customer. In

contrast to mass production for an unspecified market where a material is manufactured many times, in make-to-order

production a material is created only once though the same or a similar production process might be repeated at a later

time.

2. You can use make-to-order production in two scenarios -

(a) For branches of industry or products where a small quantity of products with a large number of different characteristics

are manufactured (Variant Configuration).

(b) When a product has to be assembled particularly for a sales order (Individual Customer Requirement).

3. Stock keeping is not usually carried out for products that are made to order. In companies using make-to-order

production, the demand program only determines the production area, in which various variant types are produced.

Depending on how you track the costs associated with make-to-order production, there are two ways to process make-to-

order items during sales order processing.

(a) Make to order using sales order

(b) Make to order using project system (not relevant for SD application)

4. For make to order production using the sales order, all costs and revenues involved for an order item are held collectively

at that item. A particular rule is used that can be changed manually to transfer costs to profitability analysis.

5. Make to order production is largely a production planning configuration. It is also controlled by the requirements type,

which is determined by three things

the strategy group (MRP 3) in MMR

the MRP group (MRP1) in MMR

the item category and MRP type (MRP 1)

6. Make-to-order production is controlled by the requirements type. The requirements type is determined on the basis of the

MRP group (MRP1) and the strategy group (MRP3) in the material master record. In addition, a plant must be assigned for

make-to-order items in the sales order.

MTO - Make to Order

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Make-to-order production with capacity checking enables vendors to trigger production of a requested product as soon as a sales order reaches the system. An automatic process checks machine capacity, schedules production, and determines the requested product’s availability date. This enables vendors to make immediate, reliable offers and commitments to their customers for the requested quantities and delivery dates. While particularly well-suited to high-tech manufacturers and makers of industrial machinery and equipment, this method also addresses the requirements of other make-to-order manufacturers.

MTS - Make to Stock

Make-to-stock production is designed for manufacturers that usually operate on the make-to-order model – configuring their finished goods after sales order entry – but that nevertheless manufacture the components of the finished goods in a make-to-stock process. The SAP best practice definition describes how manufacturers can accurately predict the future demand for components, communicate with suppliers of critical parts, and plan the production and distribution of finished goods, all based on actual material and capacity restrictions.

The difference between MTO and MTS is

MTO--> Make to Order

Production is the process where the production order is triggered from a Sales Order.

Ex: The Prod process will start only after receiving the sales order from the customer.

In this case the product could be customer specific only (Variant)

MTS--> Make to Stock

MTS scenario can be accomplished by the following settings:

- Need to use strategy group 20 in material master MRP view-Strategy group 20 is

assigned to strategy 20

Strategy 20 is assigned to Requirement type KE (Individual customer requirement)

- Requirement type KE is assigned to requirement class 040 (Indiv.cust.w/o cons.)

- Requirement class has all the parameters where we can define Production order type

that will be used to create th prod order. The above link needs to be established.

Also the MTS can be achieved using Sales Order schedule line category which will be

assigned to Requirement type/class. Item category is assigned to Reqtype/class and

the Item category is maintained in the material master.

You can use any of the above Config settings.

For MTO --> you just need to have all PP cycle settings in place nothing special

needed as it is a plain PP cycle.

1. Make-to-order production is a process in which a product is individually

manufactured for a particular customer. In contrast to mass production for an

unspecified market where a material is manufactured many times, in make-to-order

Page 3: make to stock vs make to order

production a material is created only once though the same or a similar production

process might be repeated at a later time.

2. You can use make-to-order production in two scenarios -

(a) For branches of industry or products where a small quantity of products with a

large number of different characteristics are manufactured (Variant Configuration).

(b) When a product has to be assembled particularly for a sales order (Individual

Customer Requirement).

3. Stock keeping is not usually carried out for products that are made to order. In

companies using make-to-order production, the demand program only determines the

production area, in which various variant types are produced. Depending on how you

track the costs associated with make-to-order production, there are two ways to

process make-to-order items during sales order processing.

(a) Make to order using sales order

(b) Make to order using project system (not relevant for SD application)

4. For make to order production using the sales order, all costs and revenues involved

for an order item are held collectively at that item. A particular rule is used that can be

changed manually to transfer costs to profitability analysis.

5. Make to order production is largely a production planning configuration. It is also

controlled by the requirements type, which is determined by three things

the strategy group (MRP 3) in MMR

the MRP group (MRP1) in MMR

the item category and MRP type (MRP 1)

6. Make-to-order production is controlled by the requirements type. The requirements

type is determined on the basis of the MRP group (MRP1) and the strategy group

(MRP3) in the material master record. In addition, a plant must be assigned for make-

to-order items in the sales order.

We also run a MTO and MTS environment. I have tried to list all of the configuration here (my own checklist so not sure if it is everything) that you will need to configure. Also, somethings to consider/ plan for. If you are generating Production Orders from the Sales Order and you are performing a credit check there are some production deletion steps that take place if the sales order is placed on credit hold (specifically during update of the sales order). This can cause potential impacts on the shop floor. Configuration checklist: Define Requirements Classes (OVZG) Define Requirements Types (OVZH) Planning Strategy: SPRO -->Production --> MRP --> Master Data --> Indpendent Requirement Parameters --> Planning Strategy

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If using MRP groups you will need to define via OPPR Other OPPR items to review configure in OPPR Stragety group Consumption/adjustment Period split Control keys (OP67) Plant parameters for Production Order Type (OPL8) Production scheduling profile (OPKP) Default settings for Automatically Generated Operations (OPJG) Scheduling Parameters (OPU3) Confirmation Parameters (OPK4) Availability Checking Rule (OPJK) Determination of Requirement types: IMG--> Sales and Distribution -->Basic Functions -->Availability Check and Transfer of Requirements -->Transfer of Requirements -->Determination Of Requirement Types Using Transactions

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PRODUCTION ORDER PROCESS

SAP Production /Process Order Configuration required

So as to create a production order the following configuration is required:

a) Order type Definition settings

b) Order type Dependant parameters settings

c) Assigning a number range (external or internal) to the order type

d) Scheduling parameters for an Order type

e) Define Confirmation Parameters

f) Configure production scheduling profile

g) Default operation for the generation of operations

h) Default values for availability checks

Define Order type and Order type Dependant Parameters

Define Order type and Order type Dependant Parameters:

Before even you try to create a production order or a process order, you have to define an order

type for your production order scenario.

For a regular production, you can as well use the Order type - PP01,

Note - If PP01 is not exactly what you wanted, then never make changes in PP01 order type

settings, try to copy the PP01 order type and create your own order type ZP01 for SAP

production purposes. In ZP01, you can make whatever changes you may want to. Another nice

use of creating a ZP01 is that you would not be overwritting PP01 and it would always be there

for your reference.

Changing existing PP01 or creating a new Order type ZP01:

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The parameters in an Order type are explained below with the use of a Screen Photo.

CO Partner Update:

This is a SAP Controlling related Parameter. This will not be discussed here and you need not

worry much about it. Ask your SAP CO Consultant to take care of it.

Classification Indicator:

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Classified orders can be selected in the information system for Controlling in a list showing all

orders that have certaincharacteristic values and statuses.

The values of the classified orders can be grouped with the Product Drilldown Function and

Order Hierarcy function.

Again this is a SAP Controlling related Parameter. This will not be discussed here and you need

not worry much about it. Ask your SAP CO Consultant to take care of it.

Commitment Management:

Controls whether commitments are updated for this controlling object.

Residence Time 1 and 2:

Again there is nothing much that is decided through this setting. But it can be useful in some

cases. If you dont understand this setting, there is no harm in keeping them with values 1 and 1.

The SAP meaning provided is:

Residence time 1 determines the time interval (in calendar months) that must elapse between

setting the delete flag (step 1) and setting the deletion indicator (step 2).

Settlement Profile:

This is a SAP CO Activity and it is a very important task for the SAP CO consultant to maintain

this value. This value decides the settlement rule for orders. It is normally maintained as PP01

for Production orders and PI01 for Process orders.

Functional Areas:

Functional areas is a SAP CO functionality and is relevant for Funds Management.

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Collective order with goods Movement indicator:

This indicator is set if you are using collective orders in SAP PP or SAP PPPI. This indicator

facilitates automatic goods movement between orders in a collective structure.

In other words if you have a BOM with 3 subassemblies A, B and C define to work in a

collective structure through Special procurement key 52 in MRP 3 view, then if there is a

requirement for Material A, the system will create 3 orders assigned in a collective structure as

shown below:

Order for Assembly "A"

>>> Order for Subassembly "B"

>>> Order for Subassembly "C"

Collective orders groups orders for the assembly and subassembly together in a structure (though

the order numbers for each of the orders in the structure is seperate).

If this indicator is set, then for collective orders methodology, the quantities from Goods receipt

of order "C" is automatically issued to order "B" and similarly the quantities from goods

receipt of order "B" is automatically issued to order "A".

Status Profile for Order Header and Order Operations:

Standard SAP has standard system statuses to offer which clearly explains the current status of

an order, like the CRTD status explaining that the order is just created, the REL status explaining

that the order is just released, the PRT status explaining that the orer is just printed, the PRC

status explaining that the order is just precosted, the TECO status explaining that the order is just

technically completed and the CLSD status explaining that the order is just closed, the LKD

status explaining that the order is just locked and the DLFL status explaining that the deletion

flag is activated for the order header.

Similarly all the above statuses work for the order operations as well.

Nevertheless, if you want to create your own statuses then SAP offers a functionality called

creation of user statuses, for which you would have to create a Status profile that complies all

the user statuses that are required for the object (an order).

For example you want to activate a self created user status called "ZOCL - Order Completely

closed" under the Order header status profile ZST1, which would be activated automatically after

the system status "TECO" is put on the order and what this status would do is that, it would

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completely stop all the goods movements to the order because system status TECO allows goods

movements even after it is activated.

For the above case to work successfully for the order header, you should assign the order header

status profile - ZST1 to the order type, here in this field.

Similarly, you may want to disallow any operation level confirmations, untill all the operation

related components have not been issued completely. To do this you would have to create a

Operation level status profile called ZST2 and assign the same in the order type settings here.

Configuring Order type Dependant Parameters

Changing Order type Dependant Parameters for the existing PP01 order type or creating a

new Order type dependant parameters for ZP01:

Again it is wise to copy the order type dependant parameters from the PP01 Parameters. The

parameters in an Order type are explained below with the use of a Screen Photo.

A) The First Tab of this configuration is the Planning Tab:

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Production versions:

This settings allows you to decide whether the production versions should be selected manually

in the order or it should be selected automatically depending upon the validity dates or the lot

sizes.

Selection ID:

The selection ID mentioned here allows the system to prioritize the selection of Routing/Recipe

types for the order.

Routing/Recipe selection is configured for automatic selection of Routings/Recipe in the orders.

Against every Selection ID that you create, you would be declaring the proirity of selection of

Task list.

Transaction code is OPEB is the place where you should first create your own Selection

ID's. SAP has already pre-configured the automatic Selection.

Note:

Every Selection procedure has a selection ID

>>> Selection ID has Priorities

>>> Selection ID has Task List Usage and Status

Selection

ID

Selection

Priority

Task List

Selected

Usage Status Status Description

01 1 N 1 - Production 4 Released

(general)

01 2 N 1 -

Production

2 Released (order)

01 3 R 1 - Production 4 Released (general)

01 4 R 1 - Production 2 Released (order)

01 5 2 1 - Production 4 Released (general)

01 6 2 1 - Production 2 Released (order)

What the above table or selection ID means -

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This above configuration means that the production order where the selection id is used, should:

First choose the Routings task list which has usage 1 and status 4, if this Routing is not found for

the production order material then as a,

Second priority option, the system should try to find the Routing task list of usage 1 and status 1

if found, if this Routing is also not found, then the system as a,

Third priority option should try to find out a Reference operation set whose usage is 1 and status

is 4 and it has a header material (in question) allocated to it already and if this is also not found

then the system has a,

Fourth option to search for a reference operation set whose usage is 1 and status is 1.

Similarly as a Fifith and Sixth option (last option), the system should try to find a Master

Receipe of usage 1 and Status 4 and if not found then it should try to find a master receipe of

usage 1 and status 2.

Ultimately if SAP cannot find any task list for the order type being created, it will either Abort or

continue creation of Production oeder based on the configuration.

Sequence Exchanges:

You should decide whethere you want the system to automatically exchange task list sequences

in the order based on lot size or you want to manually select the alternate sequences in the order.

Task List type:

You can also select the task list type that you mandatorily want to be selected in the order. As an

example you might want to have a value "N" - Routing. In other words it is not possible to have

another task list type other than "N" selected in the order even though the selection ID has a

option to select one.

Alternative Sequences Can be Transferred:

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If you select this indicator, it is possible to transfer the Alternative sequences available in the

task list, to the order. This indicator works hand-in-hand with the possibility of sequence

exchanges.

Routing Selection:

This settings governs the selection method of Routings in the Order and not the selection of

routing types in the order. Once the routing type and the corresponding routing, that is to be

pulled in the order, is decided by the system, the system decides how it is to be pulled in the

order, i.e., whether it should be pulled in automatically, manually or through production

versions.

For Manual Routing/Recipe Selection:

Configuration: You have to choose in the “order type dependent parameter settings” for an

order type whether you want to select the Routing/Recipe manually or automatically. You can

choose manual selection if you choose to.

0 No routings or reference operation sets to be used

1 Always reference operation set (no routings selected)

2 Routing/ref. op. set mandatory (automatic selection)

3 Routing/ref. op. set optional (automatic selection)

4 Routing/ref. op. set optional (manual selection)

5 Routing/ref. op. set mandatory (manual selection)

6 Routing mandatory (automatic selection)

7 Routing mandatory (manual selection)

8 Routing optional (manual selection)

9 Routing optional (automatic selection)

If you choose any of thee manual selection option in the order type dependent parameter settings,

SAP will offer a Task list pop-up selection in the “order creation” allowing you choose from the

list of Routings/Recipes group counters created for the material as a part of master data.

What Criteria are checked when it is pulled in the Order: When the system offers a list of task

lists to choose from, it pulls in Routings/recipes for the production order header material which is

valid from the order start date and whose lot sizes matches with the production order quantity.

A) For Automatic Routing/Recipe Selection:

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In the Routings or the Recipes configuration, we have to create a “Selection ID” and assign the

same in the “Order type Dependent Parameter settings”, thus allowing the SAP to choose a valid

Routing/Recipe during order creation.

Normally for SAP PP, you can choose the standard “01” Selection ID and for SAP PPPI you can

choose the “02” Selection ID or create your own.

Actual Selection: When the system chooses a Routing/Recipe, it pulls in Routings/recipes for

the production order header material which is valid from the order start to order finish date and

whose lot sizes matches with the production order quantity.

Jeopardy: When automatically selecting a valid Routing/Recipe, if the system comes across

more than one selection, it again throws the ball in your court and asks you to select manually

from that list.

Unfaithful: During automatic Routing/Recipe selection, if the system results in not finding a

valid Routing/Recipe it would abort the creation of the production order unless and until the

below case is true.

B) Automatic Routing/Recipe Selection Along with BOM selection through Production

Versions:

When you choose automatic Routings/Recipe selection and at the same time if you have chosen

BOM selection through Production versions, in which case if there is a Routing/Recipe also

assigned to the Production version the system would choose that Routing/Recipe instead of using

the automatic Routing selection (through selection ID set in configuration).

Operation Increament:

You can enter you own increments to be used when operations or activities are automatically

numbered.Normally the increaments of 0010 is used.

Also remember to put on the "Entry tool" indicator.

BOM Application:

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Use the standard PP01 BOM Application for Productin orders and PI01 BOM Application for

Process order.

Before assigning a BOM Application, you should make sure that the BOM Application has a

BOM selection ID assigned to it. The BOM Selection ID contains the list of BOM usages that

should be automatically selected during order creation listed in priority, for example BOM

selection ID = 01 has BOM of Usage 1 (production BOM) as Priority 1, BOM of Usage 3 as

Priority 2.

Selection

ID

Selection

Priority

BOM

Usage

01 01 1

01 02 3

The Selection ID is assigned to the BOM Application as shown below:

The BOM application not only decides the selection procedure of BOM usages but also decides

the following:

Whether the alternative multiple BOM are allowed for use

Whether BOM from Production Versions are allowed for use

Whether the BOM is allowed for use in MRP, in Planning, in Costing, in Orders, in Sales

orders

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Batch Determination Procedure:

So as to carry batch search strategy for components to be used in production, you need to create

a batch search procedure that contains various search strategies arranged in priorities of use.

For example the Search Procedure CO0001 - Standard CO Search Procedure, contains the

following search strategies to be used in a sequence of priority:

Search Procedure Step Strategy Strategy Condition CO0001 10 CO01 OrdType/Plnt/Component

CO0001 20 CO02 Order Type/Plant/Production Material/Component

CO0001 40 Z001 Plant

Therefore the batch search Procedure works, to select the batch in orders, in a given

fashion as below:

Step 1: Components whose batches are to be selected automatically or manually through a batch

search criteria, are set for batch searching in MRP 2 View.

Step 2: A batch search strategy master data should be maintained in SAP under COB1

transaction code, using a Batch Search Strategy set in the Batch Search Procedure of the order

type. Here the batch search strategy master data can be maintained for either of the three

methods as below:

Step Strategy Strategy Condition 10 CO01 OrdType/Plnt/Component

20 CO02 Order Type/Plant/Production Material/Component

40 Z001 Plant

Firstly - You can Maintain a Batch Search Master data for the levels maintained in C001 - for the

order type ZP01, at the plant C002 and Component (that is to be searched). This level is a

detailed level and the extent of master data maintainance is huge, for every order type, at every

plant and every component that needs to be searched for batches in the order.

Secondly - You can Alternatively Maintain a Batch Search Master data for the levels maintained

in C002 - for the order type ZP01, at the plant C002, for the Production order header material

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and every component that needs to be searched for batches in the order. This level is a detailed

level and the extent of master data maintainance is huge, for every order type, at every plant and

every header material that is to be produced and every component that needs to be searched in

the order.

Thirdly - You can Alternatively decide to maintain a simplier Batch search master data for the

levels maintained in Z001 - For the plant C002 all the components or materials which are marked

for batch search would be searched for batches in the order. This is a very generic strategy but it

will save you the time in maintained details batch search strategies in the tranaction code COB1.

Other Important Configurations in the Batch Search Strategies:

The other important configuration included in the Batch Search Strategies is the restriction of the

Batch classes that should be used in the search or restricting through a sort rule like FIFO or

restricting through Batch class characteristics values set (for example search for batches which

has characteristics - Label_Color as "Blue" or which has batch characteristics "Batch_Status as

"Unrestricted")

Check Batch in Batch Search Procedure:

The manually entered batches in the order component overview are checked against the Batch

search strategies maintained in the Batch Search procedures for the order type. If a certain

selected Batch still does not match that criteria, the batch is not allowed for use.

Substitute MRP Controller and Production Schedulers:

If a MRP Controller or a Production Scheduler is not maintained in the header production

material, then a default is choosen from here.

Reservations and Purchase requistion Creation:

This settings governs the creation of reservation and purchase requisitions for external operation

processing. It allows you to set when it should created - at order creation (immediately) or at

order release or it should never be created.

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Inspection Type:

You can fix an inspection type which should be used for Quality Inspections in SAP, like

inspection at order GR, In-Process inspection or By-product inspection. If you have multiple

inspection types for the material to be produced then you should not fix one here.

B) The Second Tab is the Implementation Tab:

The Second View stresses more on passing information of the order to the database information

systems. It is not harmful is you just tick mark on the indicators.

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C) The Third Tab is the Controlling Tab:

The Third View is always configured by the SAP CO consultants and it deals with the

SAP controlling aspects related to costing of the order and the maintaining the cost sheets.

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D) The Foruth Tab is the Display Profile Tab:

The final tab is the Display Profile tab that wants you to enter the reporting profiles for collective

orders and missing part list. You can as well keep the standard profiles here.

Configuring Order Type Number Range

Configuring Order Type Number Range

If you are going to use any of the standard order types, you dont have to worry about assigning a

number range to the order type.

As a process you need to create a number range or use an existing number range and assign the

order type to it. When you are creating a number range, you can mark it as an allowed internal

number range or you can mark it as an allowed external number range.

But if you have created a new order type like ZP01 (copied from PP01 or PI01 - as an example)

then you may need to assign to an existing number range or a newly created number range.

Note - There can be cases where you are using a standard order type, but they may not have been

assigned to a number range; in which case you need to select the order type and assign it to a

number range. This job is a really tricky job and that is why it is explained thoroughly here.

Assignment of Order type to a number range:

Select the Number range to which you want to assign the order type to. In this example - You

would be assigning order typePI01 to the "Process order (Internal number assignment)"

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Method step 1 - Select the number range that you want to assign the number range to

"Process order (Internal number assignment)".

Method step 2 - Select the order type that you wish to assign to a number range, from the

"Not Assigned order types section". Here we are selecting order type PI01. When you

select the order type by double-clicking on it or by press the "Select Element" button as

shown in the screen shot below; the order type turns in to blue colour from its

existing black colour representation.

Method step 3 - Once you have selected the number range to which you want to assign

the order type to and you have selected the order type from the non-assigned order type

section, you should press the "Element Group Button" so as to make the assignment. This

is clearly shown in the screen shot 2 below.

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Screen shot 2

Removing the Assignment of Order type to a number range:

As an example we would be removing the assignment of PI01 from the number range group -

"Process order (Internal number assignment)".

Method step 1 - Select only the Order type which is already assigned to a number range

by Double-clicking on it or by pressing the "Select Element button", once you have

selected the order type the color turns from black to blue. Do not select the indicator of

the number range group - "Process order (Internal number assignment)".

Method step 2 - Then Select any of the order type from the "not - assigned order types"

section at the bottom of the screen by double-clicking it or by pressing the "Select

element" button.The order type that is selected is the position of the order type (PI01 in

the example) to where you want it to be brought back to.

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Method step 3 - Press the "Element /Group" Button to remove the assignment and bring

back the assigned order type (PI01) to the "not-assigned order type" section at the bottom

of the screen.

Configuring Default Values for an Operation in an Order type

Configuring Default Values for an Operation in an Order type

When you configure a default operation for an order type, it is possible to proceed creating an

order without a Routing or a Recipe.

If you have not created this configuration, then the order creation is aborted in the absense of a

task list. If your intensions are to abort creation of an order in the absense of a task list then you

should not configure the default operation.

If you wish to have an order created without a task list then you should create this

configuration. It is a fact that you cannot create an order without any operation, therefore you are

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indirectly fooling the system by including a default operation and having it proceed ahead

without aborting the creation.

Lateral Thinking - if your organization has only one workcenter to be assigned to an operation

in case of this order type, you may as well create a default operation with a default workcenter

instead of creating a material routing or a material receipe. This makes it easier for all.

See the figure below to create this configuration.

Configuring Order Availability Controls

Configuring Order Availability Controls

When you configure the Order availability checks at the point of Order creation or Order release

the following controls are available:

1) No check is made on Material (component) Availability when the order is created and

saved or released and saved.

2) Check is to be made on Material (component) Availability when the order is created and

saved or released and saved.

3) The Checking rule is included that would be used for the component availability (if the

availability is checked on). Normally you would use the availability checks - PP01 or a copy of

PP01.

4) In cases where you are using collective conversion of planned orders to production order or

process order in SAP PP or PPPI, and components are missing in stock for production, then there

are 3 options for configuration - a) the user decides the conversion - b) creation to proceed even

if components are not available - c) creation to abort if missing materials.

Lateral thinking - It is wise to stop or let the user decide, the creation of an order if the

components are no available. But if you are planning for mass conversions of planned order to

create production/process orders then it is not wise to have the user decide the creation, as the

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system will always prompt you a pop-up message for a decision where components are not

available, which will defeat the purpose of mass conversions.

5) The above point is also applicable in the release setting of availability controls - where the

user can decide release or the release proceeds automatically even if components are not

available or the release is stopped.

Lateral thinking - It is wise to stop or let the user decide, the release of an order if the

components are no available. But if you are planning for mass release of orders, then it is not

wise to have the user decide the release, as the system will always prompt you a pop-up message

for a decision where components are not available, which will defeat the purpose of mass release

of orders.

6) There are settings availble for PRT Checks similar to components checks and the

creation/release can be allowed or stopped in a similar way. You can even decide to not have a

PRT check atall by checking the "No Check" indicator.

7) Similarly there are settings available for Capacity Availability checks at order creation or

release where the consultant needs to assign a capacity availability check profile and configure

whether he/she wants to create/realese the order if capacity is short or abort the same. You can

even decide to not have a Capacity availability check atall by checking the "No Check" indicator.

8) Batch Assignment controls are only available in the case of Order release where you can

decide to stop the order release if the order header batch is not created or you can decide to

proceed even if the order header batch is not created by the system, for various reasons.

Check out the Screen shot below that will explain the above points in details -

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Configuring Production Scheduling Profile

Configuring Production Scheduling Profile

SAP offers Production scheduling profile as a standard profile to configure order controls. Such

controls are material specific. The Profile is assigned to an header material for which you are

creating an order.

SAP makes it easier for planners to have controls set at material level rather than keepinig them

at order level so that you can opt for different set of control for different kinds of producable

materials.

The following controls can be set:

a) On creation

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Automatic Order release on creation of the order (when the order status is CRTD)

Automatic Links of header Material related documents and BOM related documents items to the

order (when the order status is CRTD)

b) On Release

Automatic Printing of Order papers on release of order (when the order status is REL) - If you

are planning to use order related shop floor papers configured in the order list or order print

settings in SAP, then you can use this functionality for automatic printing of papers at order

release.

Automatic Scheduling of Order on order release (when the order status is REL) - This is

recommended to be set. But donot use this if the order planning and scheduling is happening

from an external system like APO or i2 etc.

Automatic Links of header Material related documents and BOM related documents items to the

order (when the order status is REL)

c) Automatic Goods Receipt

If you are planning to receive certain materials automatically in to the finished goods storage

location upon confirmation of the final operation in the order, then you can use this indicator

rather than using the control keys in the order operation. Setting automatic goods receipt at this

level reduces the effort of master data creation.

d) Capacity Planning

If you are planning to carry out Capacity Availability checks in the order for the header materials

(which would carry the production scheduler profile), then you need to select the "Confirm

Capacity indicator" and the "finite scheduling indictor" and choose a leveling profile.

The Capacity overall leveling profile is used by the system to carry out capacity availability

checks in an order when the order is created or release as per the settings in the order availability

controls at creation/release. SAP has provided an option to have the Capacity overall leveling

profile maintained at material level rather than setting the profiles at order levels in the order

availability controls. The Capacity Overall Leveling profiles once assigned here decides the way

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in which the capacity leveling has to be done for the materials (assigned with this production

scheduling profile).

As far as the indicators are concerned, they only come in to play during mass conversion of

planned orders in to orders or mass release of orders when the user does not decide the creation

or release and the system is set to create or release anyways inspite. The below indicators help

the system to make decisions on capacity availability checks and helps it proceed in creating or

releasing the order.

By choosing the "finite scheduling indicator" you are forcing the system to consider all the

operation work center of the header material relavent for finite scheduling during capacity

availability checks, and in cases where there is no capacity availability for loading operations on

work centers, the system loads operations on dates where there is sufficient capacity

(automatically rescheduling to dates where their is availability).

And by choosing the "confirm capacity indicator" for capacity availability checks, you are

indirectly telling the system to incorporate loads in work center loading reports for where there is

sufficient capacity available, in other words the operations for which there is no sufficinet

capacity available will not be loaded on work centers in the work center loading report. You

should choose this indicator wisely.

Recommendation - Aviod using the "Confirm capacity indicator".

e) Confirmations

No Flor/Update of Expected Yield Surplus/Deficit - On Final Operation or order confirmation, if

the confirmed quantity is less than (deficit) or more than (surplus) the operation or order quantity

(confirmed scrap quantities) are not taken in to account , then the system displays the Yield

Variances in the order header.

If you set this indicator the variances (if any) donot flow in to the order and MRP. This is not

recommended to be used under standard circumstances since Material requirement planning

would not consider the shortages and spoil the concept of net requirement planning or netting.

Adjust Operation/Component Quantities to Actual Value - In simple terms the system would

readjust the planned operation qauntities of the order if you confirm the order with a

smaller/larger yield than that planned (including the confirmed scrap quantities). Along with

readjusting the planned operation quantities, the components quantities of the

components assigned to the operation also changes proportionately.

This is applicable for the operation that has a yield variance and all the operations below the

operation that has a change.

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The system carries out the following in case there is a difference in the confirmation of planned

quantities and the actual quantities (during order or operation confirmations)

a) Automatically readjusts the operation quantities for all operations below the concerned

operation, including the concerned operation.

b) Automatically readjust the component quantities for all the components assigned to the

operations below the concerned operation, including the concerned operation.

c) Readjusts the planned costs for all the operations and the order, overall. Though this recosting

has to be done manually and it is not triggered automatically by the system.

d) Automatically reschedules the operations giving new dates and new capacity requirements.

e) Automatically makes changes in the Purchase requisitions created in the order for non-stock

items or for the purchase requisition created for externally operation processing.

f) Automatically readjust the Transport requests created for WM.

For example -

Operation 0010 - Planned Qty = 100

Operation 0015 - Planned Qty = 100

Operation 0020 - Planned Qty = 100 - Component 10 - Qty = 100

Operation 0030 - Planned Qty = 100 - Component 20 - Qty = 100, Component 0030 - Qty = 50

Operation 0040 - Planned Qty = 100 - Component 40 - Qty = 100

Operation 0050 - Planned Qty = 100

If the confirmed qty in Operation 0015 is 102, then all the below operations and the component

quantities are changed proportionately as shown below:

Operation 0010 - Planned Qty = 100

Operation 0015 - Planned Qty = 102

Operation 0020 - Planned Qty = 102 - Component 10 - Qty = 102

Operation 0030 - Planned Qty = 102 - Component 20 - Qty = 102, Component 0030 - Qty = 54

Operation 0040 - Planned Qty = 102 - Component 40 - Qty = 102

Operation 0050 - Planned Qty = 102

f) Batch Creation at Order level

If you want to have batch created at order level for certain header materials, then you can create

a production scheduling profile and assign this profile to them.

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You can configure whether you want Order level header material batch creation at order

creation or release.

Not only, can you configure order header material batch creation, but you can also configure

whether you want the batch created and classified in the order foreground or in the background

(optional or mandatory).

g) WM related Transfer Requirements

Here you can specify whether you want to automatically create WM related transfer

requirements or transfer orders for the order components (whose storage location is maintained,

Storage location is relevant to WM, WM views are maintained for the component) at order

release.

h) Order Type

In the production scheduling profile you can default order types which would be used while

converting a planned order in to order or which can be used for manual creation of production

order.

Configuring Order type Scheduling Parameters

Configuring Order type Scheduling Parameters

The following Order type Scheduling parameters help in scheduling the order. The scheduling

parameters are set for the order type at the plant level for a production scheduler. If you want to

use the Order type scheduling parameters across all the schedulers you should put a * (star) in

the field while creating the configuration.

The following scheduling parameters are included:

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A) Detailed Scheduling, Rate Based Scheduling, Rough Cut Planning -

Here you can enter the Selection ID for which a appropriate Routing is selected for scheduling.

Though in the case of Production orders or Process orders the selection ID is not set here as the

same is selected through the order type dependent settings. Though you can enter the rate based

scheduling routing selection ID and the rough-cut planning routing ID.

For the Rate based scheduling and Rough cut planning, you can enter the selection ID which

would help in choosing the respective task lists, you can select the scheduling indicator if you

want lead time scheduling done, and you can also select the capacity requirement indicator if you

want the capacity requirements to be loaded on the workcenters.

And for detailed scheduling, the "selection ID" is not open for input (as it is taken from the Order

type dependent settings). Also in the case of detailed scheduling, the "scheduling indicator is

always set on. But as far as the capacity requirement indicator is concerned, it is only choosen if

you want to load the capacities requirements generated from orders on workcenters.

B) Adjust Dates

In the case of Lead time scheduling (Scheduling using the task list), every rescheduling, results

in change of basic dates; now it is your choice whether you want these basic dates to be re-

adjusted after every rescheduling.

It should also be noted that in backward scheduling the Basic start date is readjusted and in

forward scheduling the Basic finish date is readjusted.

Lateral Thinking - Normally when the basic dates are pulled in from an external system or set

from a tool (SAP or Non-SAP) you would really not want to reschedule or readjust the dates. If

you readjust the proposed dates will be rewritten, which is not acceptable as the dates proposed

by the tools are more accurate than that of the basic SAP ECC dates.

Now talking about readjusting the dates of the dependent requirements because of a change in

basic dates of a superior level order, you have a choice whether the requirements are to be

rescheduling at the start date of the operation to which the dependent requriements are assigned

to, or whether you want to reschedule the dependent requirements directly to order start date (so

that they are available at the basic start of production of this superior level order).

C) Scheduling Types and Controls

Scheduling types are backward, forward, current date and as per capacity requirements. This is

explained in detail in the"Order creation section of this site".

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The Start date in the past has the number of days in entry, which specifies the number of days

that the order can lie with past dates. Another use of this indicator is that when the number of

days in the past for an order has reached beyond the specified number of days in this setting, the

system reschedules the order using todays scheduling (a type of forward scheduling) with

"current date as the order basic start date", to bring back the order dates to current dates.

The Automatic Scheduling indicator helps in rescheduling the order everytime it is saved, with

the results updated in the basic start date and finish date fields. If this indicator is not set, the

system reschedules the order, but does not update the dates and throws a system status - NTER -

Dates not Current.

Scheduling logs are to be displayed automatically after every rescheduling if you set

the automatic log indictor.

With an Active verison in the capacity of the work center with detailed entry of breaks and shift

schedules, you can use this indicator to taken in to account the breaks in daily activities so that

no job is scheduled in the break time.

Scheduling using the production dates allows you to enter the production dates instead of the

conventional basic dates in the order.

The Shift Order Indicator is used when you dont want to consider the actual dates of the partially

confirmed operation and proceed with rescheduling the entire order. Wise use of this indicator is

recommended.

Reduction in operation lead time is to be indicated here.

Configuring Confirmation Parameters

Configuring Confirmation Parameters

Confirmations parameters are to be set for orders types so as to allow confirmations as per the

clients requirements.

Confirmations in SAP PP/PPPI or even SAP REM refers to booking the completion of

production quantities at each operation (partial completion or final completion). Confirmation is

not receiving goods in stock, it is only about declaration production at each operation and in turn

booking cost incurred in operational activities (in the background).

The method or manner in which these confirmations would happen is configured here.

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I) Generally Valid Settings

A) Checks of Sequence adherances

Whether System should terminate confirmations Operation when the sequence is not adhered or

whether the system should issue an warning message or whether the system should issue an

information message when the sequence of operation confirmations is not followed.

Alternatively, there is an indicator which allows you to set no checking of the operation

confirmation sequencing.

When you are producing in an environment where there are many operations one after the other,

not set in milestone or progressive confirmations, you should mandatorly think about adhering to

the operation confirmations to be made in a sequence; in which case you may want to stop the

confirmation when sequence is not followed or you may want to issue an warning or information

if it is not followed.

Alternatively there may be cases of milestone control key used, where you may want to use

sequence checks, where the task list may have many milestone operations set periodically in the

list of operations. Here adhering checks make it easier.

But when you have just one milestone operation at the end of the operation list, which confirms

all the above operations, having checks is useless. You may as well confirm at the order level.

B) Checks of underdelivery and overdelivery tolerances

The checks govern whether you want a error message or a warning message when the quantity

finally confirmed falls below the undelivery tolerance or above the overdelivery tolerance. These

tolerance are the order level tolerances.

C) Checks for QM inspection results

When you are using "In-process quality management", you would be recording results at the

operation level for the operations marked for result recording and in such cases you can issue

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error or warning messages if you have not recorded results before confirmations of the

operations.

D) Date in Future is allowed

If you select this indicator, you can set a future date of confirmation (during confirmations). An

error message is issued if you use a future date in the absense of this setting.

E) Whether Confirmation information is to be transferred to SAP HR.

F) Goods Movement - For all Components

If you select this indicator, all the components of the component overview list are marked with a

backflush indicator and are issued automatically in the background (provided other information

such as storage location, batch number if batch managed exists and stock is available for the

goods issue). That is, all the components are treated as backflush component regardless of

whether the work center or the materials are marked with a backflsuh indicator or not.

G) Proposing Time unit for the Activity Confirmations

When the activities are confirmed the time units can be defaulted as Hour or min or can be taken

automatically from the cost center tab of the work center that is being confirmed.

H)

II) General Individual Entry

A) Proposing Confirmation Type

Here you have to select whether you want "final confirmation indicator" to be defaulted for all

the confirmations that the user makes and he/she marks it manually according to a partial or final

confirmation that is made or you want a "partial confirmation indicator" to be defaulted and the

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user changes it to final whenever he/she makes a final confirmation or you want to default to

"automatic final confirmations" based on the quantity that is confirmed.

In automatic final confirmations, if the user confirms less than the quantity (planned operation

quantity or the order quantity with the overdelivery tolerance and underdelivery tolerances taken

in to account) then "partial confirmation" is set and if the user confirms equal to or more than the

quantity (planned operation quantity or the order quantity with the overdelivery tolerance and

underdelivery tolerances taken in to account) then the system marks it as "final confirmation".

The confirmed quanty is equal to = yield qty + scrap qty + rework qty.

When confirmations are entered for sub-operations, automatic confirmation is not possible. The

proposal of 'Automatic final Confirmation' is changed to 'Partial confirmation' for sub-

operations.

B) Post Open Reservations

When a final confirmation is created, you would normally want the open reservations to be

closed, if you wish so, then you should select the "Post open reservation indicator". What it

means that, all the open reservations for the order will be closed, not only the reservations of the

backflush items but the reservations of all the components would be closed tagging the

components with a final issue indicator (that is no more issues can be done for the components).

C) Issue Error Log when errors in Actual Activity cost postings and Good Movements

When the system issues errors in actual activity cost postings, the system would allow you to

correct these errors, similarly when the system issues errors in actual goods movement posting

(backflushing or automatic goods receipt) the system allows you to correct these errors.

If the goods movements is not to be corrected at this point of time, the system allows it to go

ahead for post-processing in a transaction code called COGI. These failed goods movements are

corrected in COGI later on and posted. The post-processing adds on an activity in the daily life

of production

D) Issue Terminations when errors in Actual Activity cost postings and Good Movements

But on the other hand if you select the "terminate for incorrect actual cost" or "terminate for

incorrect goods movement" along with the "issue errors in actual cost or goods movement

indicators", the system would not allow you to correct them and would abort the confirmations

and postings.

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III) Operation Individual Entry using Selection Screen

A) Propose quantities

Quantities that are yet to be confirmed for the operation or order are proposed by the system, if

you select this indicator.

If total qty = 200

If confirmed qty = 50

Proposed qty for confirmation = 150

B) Display Confirmed Quantities

Quantities which are previously confirmed before this confirmation is displayed on the screen as

information, if you select this indicator.

C) Display Default quantities

If you select this indicator, quantities that are yet to be confirmed are displayed on the

confirmation screen.

D) Propose quantities for activities

It is a know fact that when you are confirming an operation or order, you are confirming the

quantities that are produced at the operation and the time taken in terms of minutes or hours to

carry out the production at the operation, i.e., you are entering the actual activities.

Actual activities entered results in calculations of the actual costs. Thus it is a nice idea to

propose the activities that are to be confirmed and that are yet to be confirmed.

Activities that are yet to be confirmed for the operation or order are proposed by the system, if

you select this indicator.

If total activity = 200 Hrs

If confirmed qty = 50 Hrs

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Proposed qty for confirmation = 150 Hrs

E) Display Confirmed Activities

Activities which are previously confirmed before this confirmation is displayed on the screen as

information, if you select this indicator.

F) Display Defaults for Activities

If you select this indicator, Activities that are yet to be confirmed are displayed on the

confirmation screen.

G) Propose Dates for confirmations

Operations confirmation dates are to be proposed by the system as per the lead time, if you select

this indicator.

H) Display Confirmed Dates

Confirmation Dates of previously confirmed before this confirmation is displayed on the screen

as information, if you select this indicator.

I) Display Defaults for Dates

If you select this indicator, dates that are yet to be confirmed are displayed on the confirmation

screen.

K) Display HR Defaults

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The System displays the personnel data for the operations that are to be confirmed. During

confirmations it is a nice idea to enter the personnel data - who was the personnel producing the

production quantities or who is the supervisor during the production activities.

L) Select Operations with status Confirmed

During Operation confirmation, the system throws out an initial pop-up that gives you

information on all the operations and the confirmations made on the operations. Here you have to

select the operation number that you want to confirm if you have not selected one in the initial

screen.

If you select this indicator, the system not only selects the operations that are left to confirm, but

also selects all the operations that are previously confirmed.

M) Select Confirmable Operations

In the initial pop-up as explained above, the system only selects those operations which are not

yet confirmed and does not show any information about the operations which are finally

confirmed.