Make to Order

[former_member720197]

Hi Gurus,

Can u brief me Make to Order process.

Regards,

Anand

[Former Member · Accepted solution]

Hi Anand,

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

The Made TO Order Cycle:

The sale department passes on the Made to order-Sales Order to the Material department so that material requirement is analyzed. This is done in SAP by carrying on an MRP Run for all the levels of the product BOM. This MRP Run would create Planned Orders for the shortages. Here the planned orders for fert sub assemblies, Components etc, are created. This planned orders for materials produced in house are converted in to Production order and planned orders for materials

procured from outside are converted in to Purchase order. The creation of Production order through the planned orders will convert all the dependant requirements in to dependant reservations.

The dates of production or purchase are decided through the total replenishment time mentioned in the material master, If it is, in-house production, then the Route times precede over the total replenishment time entered in the material master. And the availability of all the components is ruled by the availability checking rules and by availability checking scopes. Thus whenever the system declares a product to be ready or available by a date it implies that the system has checked the availability of the material with respect to the Ware house stock, in coming stock (Receipts) and all other planned orders already existing for the product or material.

In the Made to order production, sales order produced for Fert and Sub assemblies are converted in to production order during MRP run. The production orders created have a specific quantity, specific Basic start date and a specific Basic Finish Date, a set of operations and a set of component attached from the BOM. In course of production the quantities produced in the operation for an order should be confirmed so that the current status of work is available in real time situation. The components required for production are issued to the production order through goods issue by a movement type 261 and the issue is always made to the reservations or to the order, thereby clearing the reservations. Issues of unplanned components are made as new items issue and not as order issue. The quantities, for an order which are produced completely are the put in to stock i.e. a Goods Receipt is done.

Thus the made to order cycle starts with the sales orders and converting them to Production Orders through MRP Run and there off confirming produced quantities for an order and finally putting the order in to stock.

The Cycle of Made to order: Steps: MTO Scenario

1. Material Creation (Made To order Material with major changes of: Item Category: 0004-make to order/assem.,or 0001-make to order)

2. Route Creation

3. Creation of BOM

4. Sales order

5. Production order Scheduling, Costing, Release and Save

6. Production order Quantity confirmations for operations, Parallel task of material issue to order or to reservations (261)

7. Fully Produced Production Quantities will be put into stock (GR)

8. Delivery against sales order

9. Invoicing.

You have to configure following;

1. OVZG - Defining Requirements Classes SD

Requirements

Availability X

Requirement Transfer X

Allocation ind. 2

Assembly

Special Stock E

Account assignment

Acct Assgt Cat. M

Changeable 0

2. Maintain Account Assignment/Costing  Basic Functions Sales and Distribution Requirement Classes For Costing/Account Assignment

Assembly/Requirements

Assembly type 0

Account assignment

Acct Assgt Cat. M

Valuation M

Without Val. Strategy X

3. OVZH - Defining Requirements Types

4. VOV8 - Defining Sales Document Types

5. Sales and Distribution Assign sales Area to Sales Sales Document Header  Sales Documents Sales Document Types

6. VOV7 - Maintaining Item Categories

 Sales Documents  Sales 7. Sales and Distribution Assign Item CategoriesSales Document Item

8. VTFA / VTAA - Copy Control: For Billing document and Sales document

9. KE4I - Assigning SD Conditions to CO-PA Value Fields

10. VOK0 - Pricing Procedure Setup for MTO Sales

Thanks and Regards,

Sateesh.Kandula

Edited by: VijayaSateeshKumar Kandula on Aug 6, 2008 3:15 PM

[former_member720197]

I need settings for the make to order.

[Former Member]

Hi,

Apart from the above replies, the below links can be of use to you.

Make-to-Order Production with Variant Configuration

[http://help.sap.com/bp_blv1600/V5600/BBLibrary/HTML/147_EN_IN.htm]

Make-to-Order Production without Variant Configuration

[http://help.sap.com/bp_blv1600/V5600/BBLibrary/HTML/148_EN_IN.htm]

Regards,

Ajit

[Lakshmipathi]

Dear Anand

Please go through this help link

[Make-To-Order Production|http://help.sap.com/saphelp_47x200/helpdata/en/dd/5600b1545a11d1a7020000e829fd11/frameset.htm]

thanks

G. Lakshmipathi

[Former Member]

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