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make to order

Former Member
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130

what is make to order scenario?

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Answers (4)

Answers (4)

Former Member
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db

Former Member
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Hi,

Give me your e-mail id will mail you the entire process.

Regards

Atul Keshav

Lakshmipathi
Active Contributor
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Dear rajam

If you do not want to produce finished products until you receive a sales order, then follow make to order strategy which will always support a very close customer-vendor relationship, because your sales orders are closely linked to production.

thanks

G. Lakshmipathi

Former Member
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Hi Friend,

MAKE TO ORDER (PROCESS FLOW)

First Create a material with MM

Basic data1:

Give Material name : Cycle

Material group : 010

Division : MA

Net Weight : 10 Kg's

Gross Weight : 10Kgs.

Sales: Sales org.1 :

Base Unit of Measure : EA

Delivering Plant : RAMA

Output Tax : 1 ( Full tax)

Sales: General/Plant :

Availability Check : 01 ( Daily Requirements)

Trans.,group : 001

Loading Group : 0003

MRP 1:

MRP Group : 020 ( Make to Order Production)

MRP type : PD (MRP)

MRP controller : 000

Lot size : EX ( Lot-for-Lot order quantity)

MRP 2:

In-house Production : 1

Schedule Margin Key : 000

Forecasting:

Forecast Model : D (Constant Model)

Accounting 1:

Price control : V ( Variable Price)

Variable Price : 4000

Price Unit : 1

Then enter & Save.

Material 769 created.

Create a Sales order with VA;

Order type : OR

Sales Organization : RAMA

Distribution Channel : RA

Division : MA

Sales Office : RAMA

Sales Group : RAM, .............. Enter

Sold to Party: 6000000000

PO number : 55 , PO Date : 04.06.2007.

Item Overview Tab:

Material 769, Quantity : 100

Enter & Save the Document.

Sales Order 8212 Created

Create Production Order with CO:

Enter Sales order number: 8212, Item No. 10

Order type: PP, Enter

Click on FLAG,

Select Generate Operation and enter NO,

save the Document.

Production Order Created: 60002725

Confirm the Production Order with CO15.

Enter Production Order No. 600075 and save the Document.

Now the confirmation Order will be saved.

Create Goods Receipts with MB31.

Movement type: 101

Order: 6002725

Plant: RAMA

Storage Location: RAMA

Enter and Save, you will get Document Posted: 50000068931posted.

Check the Stock Position with MMBE

Material: 769

Plant: RAMA

Storage Location: RAMA

Execute (F8), here we can see the stock at Sales Order Stock.

Create Delivery with VL01N, Billing with VF01 and Post to Accounts.

Make to order Scenario

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: (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.

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.

Make a small search in sdn for further details