Introducing Lot Size of One with Advanced Variant Configuration

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Introduce lot size of one with advanced variant configuration

Introduction of Lot Size of One with Advanced Variant Configuration

Overview Lot Size of One with Advanced Variant Configuration (55E)

This scope item focuses on a make-to-order scenario (Lot Size of One) integrating with production planning and execution, procurement, sales, and logistics execution up to invoicing and incoming and outgoing payments, covering multilevel configurable materials. The configurable material is defined as a bill of material.

In this process, a sales order is created with an individual configuration for a robot. This is captured by defining the different component characteristics desired by the customers and considering the constraints and dependencies of the components. The sales price calculation is then based on the individually chosen characteristics of the components. The sales order is considered for production planning when doing the materials requirements planning (MRP). Configured subassemblies are procured externally based on the procurement proposal generated during MRP.

Stock is placed in special sales order stock at all times and serialized (as of level subassembly). By serializing stock throughout the process this allows customers to gain transparency for items that are built in the configured finished good.

The production execution for the individual robot takes place after one subassembly is procured externally (including configuration information), while another subassembly is internally produced. The finished good (robot) is subject to quality inspection at the end of production and checks against generic master inspection characteristics.

Once production is complete, the goods are delivered to the customer and invoiced. The process finishes with posting of incoming payments from the customer as well as outgoing payments to the vendor for purchased subassemblies.


The benefits of the Lot Size of One with Advanced Variant Configuration (55E) are:

  • Exhibit multilevel configuration and handover of configured products from sales to procurement and production
  • Trigger production execution based on sales orders
  • Explode the bill of material automatically when running the material requirements planning
  • Gain transparency by serialization of products for subassemblies and finished goods
  • Integrate quality management in production process for configurable products
  • Create billing document and postings for financials and controlling

Key Process Steps Covered

The key process steps covered are:

  • Exhibit multilevel configuration of products in sales orders using advanced variant configuration
  • Perform material requirements planning and evaluation of stock requirement list based on sales order demand
  • Procure configured subassemblies including inbound delivery
  • Perform quality inspection in production
  • Handle production order processing: Material staging, order release, order confirmation, material movement postings for goods issue and goods receipts of serialized products
  • Perform inspection (Quality Management) for configurable products
  • Execute purchasing, easing direct procurement
  • Perform outbound delivery and pick items
  • Post goods issue
  • Execute customer billing
  • Post incoming and outgoing payments

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