Managing Make to Order Process for Product Variants

Objective

After completing this lesson, you will be able to use the Make to Order (MTO) Production with Variant Configuration.

Make to Order Process with Variant Configuration

When and Why to Use Make to Order

Make to Order (MTO) is used to produce a finished product in response to a customer order.

A sales order for a finished product, triggers the automatic creation of a production order, which is used to produce a variant configuration item. The following video shows the roles individual users play in the MTO process.

Applicable Process Steps

As you just saw, the process steps for an Engineer to Order process include:

Internal Sales Representative: Creates a sales order for a configurable material
Production Planner: Executes a MRP run and works with production order
Production Operator: Picks components and confirms activities
Warehouse Clerk: Posts goods receipts
Shipping Specialist: Creates a delivery, executes picking and post goods issues

Benefits

The benefits of the Make to Order process for Variant Configuration are:

Improve your company's sales and manufacturing performance with integrated Advanced Variant Configuration covering single-level and multi-level configurable materials
Enable your business processes to handle highly individualized products in sales and manufacturing
Leverage the sophisticated algorithms in the performance-optimized rules engine within a state-of-the-art configurator
Use dependencies to prevent combinations of options that are not allowed and can be used to select exactly the right components
Get sales pricing and print-out according to the configuration

Note

This process flow is covered in scope Item: 1YT- Make-to-Order Production with Variant Configuration.

How to configure Product Variants using Make to Order

Introduction: Make to Order Process with Variant Configuration

These process videos show a Make-to-Order Production scenario using the Advanced Variant Configuration for an efficient state-of-the-art configuration of a material ordered by a customer, covering single-level and multi-level configurable materials.

Task 1: Create a Sales Order

In this first scenario, Kate, our Internal Sales Representative, creates a sales order for a configurable material. The main forklift material is a configurable one and also one component, the forkseat. This is captured by defining the different component characteristics desired by the customers and considering the constraints and dependencies of the components.

At the end Kate checks also the sales price and the variant conditions. The sales price calculation is then based on the individually chosen characteristics of the components.

The following video demonstrates this task.

Task 2: Perform a MRP Run for a Sales Order

The sales order creation is finished. Kate sends out this information to Nikhil, the Production Planner. He starts a MRP run for the forklift sales order. The created planned order becomes visible.

A MRP run is also executed for the component forkseat. A purchase requisition number becomes visible.

The following video demonstrates this task.

Task 3: Post Goods Receipt for Sales Order Components

The forkseat is ordered. Purchaser Tom creates a purchase order.

Goods arrive at warehouse. A goods receipt is posted by Jim, our Warehouse Clerk.

The following video demonstrates this task.

Task 4: Create a Production Order for the Main Component

After the MRP run took place, a planned order is created. Production planner Nikhil converts this planned order into a production order and releases it.

Kathy, Production Operator, picks all components and confirms their processing.

Warehouse Clerk Jim posts the goods receipt.

The following video demonstrates this task.

Task 5: Perform a Forklift Delivery

Shipping Specialist Marc creates an outbound delivery to the customer.

The following video demonstrates this task.

Task 6: Perform a Component Picking

The outbound delivery is done. Marc performs a picking before he posts the goods issues.

The following video demonstrates this task.

Task 7: Create a Customer Invoice

Shipping Specialist Marc handles the billing. At the end he creates a customer invoice.

The following video demonstrates this task.

Now you should have an impression of "How to maintain an Make to Order process with Variant Configuration".

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