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Manufacturing Process

 

Types of Manufacturing

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• Discrete Industry

• Process Industry (PI)

• Repetitive Industry

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Methods of Manufacturing

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• Make to Stock (MTS)

• Make to Order (MTO)

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Discrete Manufacturing

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It is based in production orders, with products that can be assembled and dis-assembled.

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Benefits:

• Planning and manufacturing depends on production orders

• Materials will be issued with reference to production orders

• Products can change frequently

• Production is carried out on different production lines

• Product costing and settlement is done through production orders

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Master Data:

• Bill of Materials (BOMs)

• Routings

• Work Centers

• Production Version

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Example of Industries:

• Mechanical Engineering (Cars, Airplanes, Etc...)

• Consumer Goods

• Electronics

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Process Industry Manufacturing

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It is based on process orders, with products batch-oriented, with integration tools PP-PI (Production Planning / Process Industry)

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Benefits:

• Batch oriented process manufacturing.

• Copy the master recipe and adjust it to actual production

• Process Management between PP-PI and process control during the execution of a process order

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Master Data:

• Master Recipes

• Resources

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Example of Industries:

• Pharmaceutical

• Chemical

• Food

• Beverage

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Repetitive Manufacturing

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It is based on planned orders, produced repetitively or continuously in production lines, in a continuous production scenario.

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Benefits:

• Production is based on the planned orders

• Planning and manufacturing is based on period wise

• Production are carried out on a single production line (repetitively)

• Product costing and settlement is done through product cost collector

• Simpler back flushing 

• Scenarios with high product stability, high repetition rates, and low product complexity

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Master Data:

• Product Cost Collector

• Rate Routing

• REM Profile

• Production version

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Example of Industries:

• Mechanical Engineering

• Consumer Goods

• Electronics

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Step Process in Discrite / Process (MTS / MTO)

• Create Independent Requirements:

  • Create Planned Independent Requirements | Make-To-Stock T-Code: MD61

  • Create Customer Independent Requirement / Sales Order | Make-To-Order T-Code: MD81 / VA01

• Check Demand Management | Make-To-Stock T-Code: MD04 | Make-To-Order T-Code: MD04

• Run MRP | Make-To-Stock T-Code: MD01N | Make-To-Order T-Code: MD01N

• Production Orders:

  • Convert Planned Orders to Production Orders | Make-To-Stock T-Code: MD04 | Make-To-Order T-Code: MD04

  • Create Production Order Manually | Make-To-Stock T-Code: CO01| Make-To-Order T-Code: COR1

• Release Production Order | Make-To-Stock T-Code: CO02 | Make-To-Order T-Code: COR2

• GI to Production Order | Make-To-Stock T-Code: MIGO | Make-To-Order T-Code: MIGO

• Production Order Confirmation | Make-To-Stock T-Code: CO11N | Make-To-Order T-Code: COR6N

• GR to Production Order | Make-To-Stock T-Code: MIGO | Make-To-Order T-Code: MIGO

• Production order Teco | Make-To-Stock T-Code: CO02 | Make-To-Order T-Code: COR2

• Overhead calculation | Make-To-Stock T-Code: KGI2 | Make-To-Order T-Code: KGI2

• WIP Calculation | Make-To-Stock T-Code: KKAO / KKAX | Make-To-Order T-Code: KKAO / KKAX

• Variance Calculation | Make-To-Stock T-Code: KKS1 / KKS2 | Make-To-Order T-Code: KKS1 / KKS2

• Production Order Settlement | Make-To-Stock T-Code: KO88 / CO88 | Make-To-Order T-Code: KO88 / CO88

• Close Production Order | Make-To-Stock T-Code: CO02 | Make-To-Order T-Code: COR2