cancel
Showing results for 
Search instead for 
Did you mean: 

Planning strategy MTO or MTS?

swathi_rege
Active Participant
0 Kudos

I have 2 requirements

1. Client has a requirement of producing finished material only when a sales order is eneterd in the system, and they want to tie sales order to production order because the shop floor people want to know some details about the customer when producing the product

2. Client some times (almost 50% of the time) produce some finished products to forecast (customer specific forecast) and keep them in stock.they do that by creating "dummy sales orders". by creating dummy sales orders, shopfloor knows who the customer is and they can produce the product based on some customer specific information. when the real sales order come, they will just attach the purcahse order to the dummy sales order and now the dummy sales order is the original sales order.

my goal is to stop creating this dummy sales orders (manual effort) and use PIR for producing some customer forecasted products. but my problem is

to satisfy requirement 1 - I need to chose MTO scenario

to satisfy requirement 2 - I need to chose MTS scenario, but if I chose MTS, then i wont get sales order to prod order link.if I chose MTO, then I cant use PIR to produce to stock.what is my best bet?

Accepted Solutions (1)

Accepted Solutions (1)

Former Member

Swathi,

...and they want to tie sales order to production order because the shop floor people want to know some details about the customer when producing the product

Exactly what details?  If they make this product for customer A, can the product always be sold to customer B (and all other customers)?  If they make the product for Customer B, can it always be sold to Customer A (and all other customers?)  Exactly what is it that manufacturing has to know?

Best Regards,

DB49

swathi_rege
Active Participant
0 Kudos

HI DB,

Yes they can sell the product to other customers, but when they produce the product based on sales order, the shopfloor will print some customer specific labels at the end of the line. only when they associate the production order to sales order, they will get that information on the line. its just one reason, there are other reasons too (which i ma not aware of at this point of time honestly) for them to have that linkage.

if they for some reason want to reassign the product to other sales order, they will have to just print the other customer specific label s an exception scenario

Former Member
0 Kudos

Swathi,

What you are describing is is closer to MTO than it is to MTS.  In an MTS environment, The shipping department is typically responsible for attaching customer specific labels, at the time of packing the order.

One hybrid solution that will still allow manufacturing to create customer specific labels (but not order specific labels) is to create special material numbers; each of which is specific to a customer.  Contained In the manufacturing specifications are details of the exact type of labelling that must be attached.  In this way, you can also create specific PIRs that would relate only to this material; which means it would also related onto to this specific customer.

Best Regards,

DB49.

swathi_rege
Active Participant
0 Kudos

DB,

thanks for the quick reply.. yes we did look at 2 MTS options

1. creating materials per customer

2. printing label at the time of delivery

but both got turned down for various reasons.

so the only "better" option left for me is going by MTO (strategy 50 or 20) route and still do dummy sales order for forecasted items?? is that right?

Former Member
0 Kudos

Swathi,

You may want to consider the use of Sales Scheduling agreements.

Scheduling agreements contain a forecast component, but shipment and billing only take place when a delivery is created and PGI'd, typically when the order is released by the customer.  Although these document types are commonly supported through EDI, it is entirely feasible to maintain them manually.

See SAP online help for an overview.  For more detailed information, consult with your local SD expert, or enter your questions in one of the SD SCN forums.

Scheduling Agreements for Component Suppliers (SD-SLS-OA) - SAP Library

Best Regards,

DB49

swathi_rege
Active Participant
0 Kudos

sure..we are planning on using SA's where ever necessary because that helps in reduction of creation of number of discrete sales orders...before closing the the thread, one last query

we plan on forecasting at component level and just wait for finished product (we will not load PIR for finished) sales order to build it. so my best bet would be to use 50 and 70 or 20 and 70 or 82 and 70?

Former Member
0 Kudos

Swathi,

This question does not seem to be related to your original question.  I suggest you open a new thread.

I further suggest you first review SAP online help about planning strategies before posting more questions about these basic functionalities.

Strategies for Make-to-Stock Production - Demand Management (PP-MP-DEM) - SAP Library

Start here, expand MTS, study all.  Then, down to "strategies for planning components".  Expand, study all.  Continue down the list until you have reviewed all pertinent Strategy help.

Once you have digested this information, come back with any questions that remain.

Best Regards,

DB49

Answers (0)