Make to order

[Former Member]

Hi All

Can any body help me providing cofiguration step for Make to Oredr process.

How its flow is?

[Former Member]

hi rohit rathi....... ru frm rajasthan.....coz all maheshwari's are frm rajasthan...i m frm raj. tht y i m asking ....

Shailesh Lodha

[Former Member]

HI,

Make-to-order:

Make-to-order processing takes place when inventory is not generally stoked but instead the firm wants until an order hass been placed and then produces just what has been ordered.

Ex: In this case, a deluxe motorcycle gas tank that must be produced form an unpainted tank, paint and gas cap. These are two processes that must be completed in the production -

---

paint the tank and when tank is dry, attach the gas cap.

The BOM are needed to create a given product. The routing information gives what processes need to be carried out in what order and even how long each process should take. All this information together can be used to determine what the total cost of the product and determining the profitability of the product.

A—Creation of materials:---

T code: MM01

Ex; 1400-7—1xx

Enter material, ind. Sector and material type.

Select the org. levels plant, stor. Location, sales org, DC, Warehoused no, storage type.

Repeat the same process for all components.

B—Creation of BOM:--

T code: CS01

C—Set up routing:--

T code: CA02

D—pricing conditions:--

T code: VK11

E—purchasing materials:--

Create a purchasing order req. for components from vendor.

Create PO: ME21

F—Receiving materials:--

GR:- MIGO

Go through MMBE then u will get stock available or not.

Process:

1. creating a sales order for product not kept in the inventory. This will atomically generated the relevant production order.

2. we assume production is done ahead of \schedule. After production is completed you will confirm production order as fully completed .

3. Newly determine the availability of sales order.

4. shipment

5. TO for delivery

6. Billing

7. Payments

Reward points if u helpful.

Cheers

Govind.

[Former Member]

Hi,

MTO Planning strategies are specific to sales orders

costa need to be tracked at sales order level

No specific product structure ie item may or may not have Bom

Settings for finished product

1. strategy group 20

2. schedule line category cp ,item categiry TAN, item category group NORM

3. Requirements type KE

4. No PIR Creation

5. So procurement before sales order is not possible

6. sales orders are created for finished product

7. Run the MRP - MD02

8. Planned orders will be created.

9. convert it to production orders /confirm /GR is made

10 stock will be placed in customer stock.

Regards,

nandha

[Former Member]

hi rohit,

also pl check this useful link ;

<a href="http://help.sap.com/bestpractices/industry/indusmachinerycomp/v1470/IMC_DE/html/E71_MTOSalesOrdProc_EN_DE.htm">MTO</a>

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.

You can use make-to-order production:

For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured

When a product has to be assembled particularly for a sales order

Stockkeeping 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:

Make-to-Order Production: Cost Management Using the Sales Order

Make-to-Order Production: Cost Management Using the Project System

However, as its a vast topic involving a lot of complexity and integration, this can only give a theoritical tip of the ice berg.

Hope it helps.

Thanks

Sadhu Kishore

[Former Member]

Hi Rohit,

Check this thread its having detailed explanation alongwith the documentation for MTO:

_Rohit

[Former Member]

Hello Rohit,

<b>Make to order production</b>

1. Make to order production means that the materials (finished products) are not stored in the warehouse but produced especially for a particular sales order or a sales order item. An individual customer requirement is generated from the sales order item and transferred to materials planning (MM/PP). You can use materials planning to plan requirements. Once this has been done, production is carried out. After the product has been manufactured, you post it by goods receipt to sales orders stock specifically for this sales order item. As soon as the delivery is due, you can enter the delivery in SD and post goods issue which reduces the sales order stock and then a billing document can be entered.

2. The item category in the sales document is found using the sale document type and the item category group from the material master found on the tab page sales org 2 i.e.

<b>a. sales document type – OR

b. item category group – 0001

c. item category - TAK</b>

3. MTO without assembly processing – the requirement quantity (planned independent requirements), delivery date and configuration specifications are transferred from the sales order to materials planning as an individual customer requirement. A planned order is generated using a planning run where the bills of material are exploded and dependant requirements (i.e. multi-level BOM) for the assemblies and components are generated. As soon as the production starts, a production order is created from the planned order. The system returns the confirmed quantity and delivery date from the production order to the sales order.

4. MTO with assembly processing – in this case the individual components for the final product have already been produced. You only need to assemble the components according to the customer’s wishes. In this process, you only need a one level BOM and generation of dependent requirements is not necessary. In this case no planning run is generated and a production order is created directly from the sales order. The system returns the confirmed quantity and the delivery date from the production order to the schedule lines in the sales order. Any changes made to the confirmed schedule lines or the delivery date is immediately visible in the sales order and/or in the production order.

5. After production department has finished making the material, goods receipt is posted in the sales order stock i.e. special stock which can only be used for a specific sales order. After posting goods issue for outbound delivery, the sales order stock is reduced accordingly.

6. 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.

7. You can use make-to-order production: (a) For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured (b) When a product has to be assembled particularly for a sales order.

8. 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)

9. 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.

10. 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)

11. 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.

<b>Reward points if helps</b>

Regards

Sai