The document discusses make-to-order (MTO) production processes. It describes key features of MTO including planning each sales order separately, creating procurement elements like planned orders with direct reference to individual sales orders, and allowing MTO production at any level of the bill of materials structure. It also outlines salient features of assembly processing strategies like components being pre-manufactured, checking availability and estimating delivery dates and costs when sales orders are created, and different strategies triggering planned orders or network creation. Key performance indicators for MTO processes are identified like turnaround time, adherence to delivery dates, receivables, inventory availability, and process times.

1. Make to order
Dilip Sadh

2. Standard MTO/ ATO Process Cycle, salient features, review
Make to Order Production (20)
Assembly processing (81, 82, 83)

3. Make to Order Production (20) 1/4
Salient features of MTO Production – Strategy (20).
• Each sales order is planned separately in the stock/ requirement list. The net requirements
calculation is carried out individually for every sales order.
• The procurement elements, that is the planned orders are created with reference to the sales
order and are managed in the individual customer segment. This direct reference to the sales
order also remains in the production order.
• Using the individual/collective indicator, you can allow make-to-order production at any level of
the BOM structure.
Transportation
Planning Point

4. Assembly processing (81, 82, 83) 1/6
Salient features of Assembly Processing – Strategy (81,82,83).
• Assembly processing is a form of sales order processing. The procurement elements are created
when you create the sales order items.
• In general, the components of the finished product have already been manufactured.
• Once you have created the sales order, the system checks the availability of the components (for
the production order). It also determines a possible delivery date and costs the order.
• With strategy 82, creating the sales order triggers the creation of a production order. It is not
necessary to carry out a separate MRP run.
• With strategy 81, when you create a sales orders, the system creates a planned order for
repetitive manufacturing .
• With strategy 83, it creates a network for engineer-to-order production.
• The total confirmation date depends on the date of the components which are last to be available.
The confirmation quantity depends on the available quantity of the components with the lowest
confirmed quantity on the requirements date.
Transportation
Planning Point

5. Key Performance Indicators for MTO processes
MTO turn around time from
order placing to delivery
Adherence to Delivery dates.
Payment receivable as
As Key inputs
per payment terms. to process
performance
measures
Availability of Warehouse
assemblies Inventory.
Avoid procurement process lead
times where ever possible.
Process time (shortest and longest),
Ideal process time
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6. Question & Answer