MTS and MTO

[Former Member]

My company is currently set up to use MTS, but we are considering changing to MTO. 

My concern is this:  We  have several hundred products that we actively stock, but several thousand that we manufacture to order.  Will MTO allow us to keep stock levels on the items that we build to stock?  Also, I understand that with MTO, if we need to deallocate from an order, we must then reallocate to a new order, but what if there is no new order?  Will that item stay in unrestricted stock until a new order comes in and takes it? 

Thanks.

Mike

[balaji_parsewar]

Hello Mike,

As Jagdeesh pointed out, It would be difficult to incorporate sudden transition of manufacturing process.

MTO/MTS involve integration  between SD, MM & PP modules.

Especially PP consultant have major role in the same. Hence need to consult with him first.

More over regarding allocation of material to sales orders can be done through MB1B with movement types 412E/413E.

Regards,

Balaji

[Former Member]

Thank you for your response, however, I do not have any consultants to ask.  Please see my further questions above and elaborate. 

[Lakshmipathi]

It is more of PP related than SD related.  So check with your PP consultants on the possibility of changing the settings from PP side.

G. Lakshmipathi

[Former Member]

Thank you for your reply, but I do not have any consultants to ask.  The company used internal resources, and they are only experts in their subject areas and applications.  I have worked on five implementations, and this is the worst I have ever seen. 

Do you have any information to offer about how MTO will change the PP side?  That is specifically what I am looking for.  I understand there will be extra transactions to deallocate and reallocate inventory, but that is an exception that should not occur often. 

Please provide information on:

Will MTO allow me to maintain stock levels on common items?

How will I allocate stock to new sales orders if SAP tries to create a production order first?

[Former Member]

dude,

its not that much easy to change process of existing company? first find the diff between MTO and MTS.

make to stock is always used for you regular stock.

MTO specifically used for special orders like any special manufacturing equipment, or packing changes or special product feature changes.

if client or customer is specific about product features, find deviations from your regular stock manufacturing process, adopt MTO otherwise always MTS only.

warm regards,

jagadeesh

[Former Member]

Thank you for the reply, but I do not understand your question "its not that much easy to change process of existing company?".  Are you asking if the company can change their process, or are you telling me we cannot?

I understand the difference between MTS and MTO, but I need specific information so I can apply it to my application. 

Because of my manufacturing process, the product is always either a stock item or a custom item.  MTS allows me to stock the common items, but it does not allow me to track the orders for nonstock.  Will MTO allow me to stock the common items?

[siva_vasireddy2]

Hi,

   For MTS process there is no link up with the Purchase orders but with MTO you need to go in Specific procedure where sale order will be tracked till the End of the Process.

it is better you go for MTS process

Siva

[Former Member]

Thank you for the reply, but please explain why it would be better to use MTS instead of MTO? 

Specifically, can I maintain stock levels on select items while tying MTO items to specific sales orders?