What is the difference between 0001 Make-to-order and 0003 Make-to-order/pr

[Former Member]

Hi,

Can anybody explain what is the difference between 0001 Make-to-order and 0003 Make-to-order/proj.

thanks in advance.

Edited by: neel06 on Mar 2, 2011 10:59 AM

[Shiva_Ram]

Refer the SAP help link documentation at http://help.sap.com/saphelp_47x200/helpdata/en/dd/5600b1545a11d1a7020000e829fd11/frameset.htm There are couple of links inside Make-to-Order Production: Cost Management Using the Sales Order and Make-to-Order Production: Cost Management Using the Project System, which provides the details.

Regards,

[Former Member]

Hi,

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.

Thanks

Arbind

[Lakshmipathi]

Please go through the question once again and then suggest suitably.

thanks

G. Lakshmipathi