This scope item enables production planning and execution for a finished good in make-to-stock scenarios, as well as prompt reactions to incoming sales orders (sell from stock).
For a graphical overview on the business process of the scope item Produce and Sell Standard Products -Warehouse Management (54V), refer to the SAP Signavio Process Navigator as described in the lesson The Impact of Warehouse Management.
The process starts with the creation of a demand forecast for finished goods represented by planned independent requirements (PIRs). Based on PIRs, material requirements planning (MRP) creates a production plan for finished goods and explodes the entire bill of material. As a result, raw material demand is planned. Production planners can analyze and manually change the forecast-based production plan.
Raw material demand leads to component demands that trigger external procurement through purchase orders and inbound delivery.
The semifinished product is produced using repetitive manufacturing in the warehouse. With the repetitive manufacturing confirmation, semifinished material is received into the specified warehouse goods receipt bin and the raw material is issued from stock. The goods receipt (movement type 131) and the goods issue (movement type 261) are posted synchronously in one material document. In addition, a warehouse task is generated automatically.
The production process itself covers the conversion of planned orders to production orders, order release, material staging and picking, confirmation of order operations, and goods receipt posting. Upon the acceptance of quality inspection results, the finished product is moved to unrestricted stock.
The process continues with sales order creation, the performance of the delivery satisfied from the stock present in a warehouse-managed location, invoicing, and clearance after incoming payment.
All products used in this scenario use warehouse-managed storage locations. Quality inspection is triggered during goods receipt for production order.
This scenario combines several smaller processes to a whole end-to-end process related to warehouse activities connecting important modules like production planning, manufacturing, procurement, and sales and distribution to warehouse management. This generates the following benefits:
- Trigger production execution with a production plan
- Use warehouse-managed stock in production and outbound deliveries
- Trigger production execution with a production plan
- Explode the bill of material automatically when running the material requirements planning
- Purchase raw materials from an external supplier
- Create billing documents and postings for financials and controlling
- Integrate quality management in production
The major process steps involved are as follows:
- Create demand forecast for finished goods represented by Planned Independent Requirements (PIR)
- Execute a production plan created by material requirements planning (MRP) for finished goods and raw material demands
- Perform repetitive manufacturing for semifinished product
- Purchase raw materials based on material requirements
- Receive goods from a supplier into a warehouse-managed location
- Execute billing Perform production process and quality inspection
- Perform outbound delivery based on sales orders
- Receive payment from customer