Describing the Manufacturing Business Process


After completing this lesson, you will be able to Describe the steps involved in the manufacturing business process.

Production Order Processing Overview

The production order goes through many individual activities as shown in the figure, Production Order Process.

Many of these activities can run automatically or in the background so that manual processing of orders is minimized.

A number of settings available in Customizing allow you to perform each step in order processing successfully.

Functions in the figure marked with (1) can be automated via Customizing.

Functions in the figure marked with (2) can be executed via background processing.

WIP determination, variance calculation, and settlement are generally periodic work for Cost Object Controlling (COC), and are usually processed in the background.

You can use the quality management (QM) tools during the production process and for the goods receipt.

Various interfaces for process integration are available for downloading orders and uploading process messages.

Production Types

Depending on the manufacturing process, product complexity, stability of production, and other criteria, a company has various requirements with regard to shop floor control. For this reason, the S/4HANA applications support different production types.

Structure of a Production Order

A production order in SAP S/4HANA has the mapped order structure. A standard sequence of operations may have other (parallel or alternative) operation sequences. You can select from several alternative sequences. The standard sequence must have at least one operation. If routing is already assigned to that FERT material, the system creates an operation automatically. You can choose whether to assign material components, production resources, or tools and trigger points to the operation. Suboperations are permitted within an operation.

You can link documents of the document management system (DMS), such as drawings and text.

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