Introducing Make-to-Order Production – Semifinished Goods Planning and Assembly (1BM)

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Introduce make-to-order production – semifinished goods planning and assembly (1BM)

Introduction to Make-to-Order Production – Semifinished Goods Planning and Assembly (1BM)

How to Access SAP S/4HANA Cloud, public edition Scope Item Process Flows and Test Scripts

  1. Navigate to SAP Best Practices for SAP S/4HANA Cloud, public edition for Enterprise Management.
  2. Select a country localization from the Version dropdown list.
  3. If necessary, select the Login icon in the upper left corner to log in.
  4. Go to the Accelerators section and, under General Documents, select the link SAP Best Practices content library.
  5. Select the relevant scope option checkboxes to filter information and locate scope item test scripts and process flows.
Note
Ignore the BPMN2 version of process flows.

Description

  • This scope item supports production planning for semifinished components within a make-to-order (MTO) environment prior to the receipt of incoming sales orders. This reduces the lead time of sales orders for finished goods received that are received later.

  • Demand forecast is created for semifinished components that are represented through planned independent requirements (PIRs). Based on PIRs, Material Requirements Planning (MRP) creates a production plan for the component and explodes the bill of material structure for higher low-level codes. As a result, the demand for semifinished component production and raw material is planned.

  • The production process is made up of the following:

    • Conversion of planned into production orders

    • Order release

    • Confirmation of order operations with automatic backflush of components

    • Goods receipt posting

  • The scenario is completed with the receipt of an incoming sales order and either the consumption of the component part of this scope item, or by reference to the entire MTO scenario in the BJE scope item.

Key Process Steps Covered

  • Manage demand forecast for semifinished products as PIRs

  • Schedule MRP run

  • Start production for semifinished product prior to incoming sales orders

  • Consume PIRs and stock of semifinished product in sales orders

Benefits

  • Reduce total lead time in MTO production scenarios

  • Create purchase requisitions for raw materials early

  • Produce semifinished products early

  • Consume PIRs and stock of semifinished product in sales orders

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