2. Agenda
Manufacturing - Purpose and basic overview
Different types of manufacturing -Discrete, Process,
Repetitive
Manufacturing strategies - MTS, MTO, MTO-VC
Material flow in manufacturing
Overview of integration in manufacturing across modules
Assessment of points covered
Tuesday, February 2, 20XX Sample Footer Text 2
3. Manufacturing - Purpose and basic overview
Tuesday, February 2, 20XX Sample Footer Text 3
Manufacturing refers to the processes of converting the
raw materials into useful products. This is normally
accomplished by carrying out a set of activities such as
product design, selection of raw material, and materials
processing
The manufacturing function is primarily responsible
for implementing and operating the production system
in order to produce the product. Manufacturing may
also include purchase, distribution, and installation as well
as the physical manufacture of the component.
Manufacturing methods
Batch production- is a method of manufacturing where the products are made as specified groups
Job production - sometimes called jobbing or one-off production, involves producing custom work
Flow production - also known as flow production or continuous production, is the production of
substantial amounts of standardized products in a constant flow,
4. Tuesday, February 2, 20XX Sample Footer Text 4
Different types of manufacturing -Discrete, Process, Repetitive
Based on different nature of products and complexity, there are 3 types of manufacturing process followed in
SAP PP:
Discrete Industry– MTS- 10,11,40 & MTO-20,MTO-25
Process Industry- MTS-10,11,40 & MTO-20
Repetitive Industry
Discrete Industry Manufacturing Process
In discrete scenario, the manufacturing process is based on production orders. Discrete
manufacturing is characterized by requirements that occur on an irregular basis and a
workshop-oriented process. Basically, the demand and supply varies time to time in this
scenario.
Discrete manufacturing forms an industry type where in the products which are
manufactured can be easily assembled and dis-assembled. They can be reworked upon
easily to a large extent. You can say making pumps, engines, cars, airplanes.
any more
5. Tuesday, February 2, 20XX Sample Footer Text 5
Different types of manufacturing -Discrete, Process, Repetitive
Discrete Industry Manufacturing Process
Facts in Discrete Process:
Production based on the production orders
Planning and manufacturing depends on production orders.
Products change frequently.
Production is carried out on different production lines (scattered- discrete).
Product costing and settlement is done through production orders.
Planned orders are stock type later converted into production orders.
Production orders are required.
Materials will be issued always with reference to production orders.
Master Data includes work center , Production version , Routing and BOMs.
Industry Type: Mechanical engineering, Consumer goods, electronics, and many more
6. Tuesday, February 2, 20XX Sample Footer Text 6
Different types of manufacturing -Discrete, Process, Repetitive
Discrete Industry Manufacturing Process with VC
Facts in Discrete Process:
Production based on the production orders
Planning and manufacturing depends on production orders.
Products change frequently.
Production is carried out on different production lines (scattered- discrete).
Product costing and settlement is done through production orders.
Planned orders are stock type later converted into production orders.
Production orders are required.
Materials will be issued always with reference to production orders.
Master Data includes work center , Production version , Routing and BOMs.
Industry Type: Mechanical engineering, Consumer goods, electronics, and many more
7. Tuesday, February 2, 20XX Sample Footer Text 7
Different types of manufacturing -Discrete, Process, Repetitive
Process Industry Manufacturing Process
The component Production Planning for Process Industries (PP-PI) provides an integrated
planning tool for batch-oriented process manufacturing. It is primarily designed for the chemical,
pharmaceutical, food and beverage industries as well as the batch-oriented electronics industry.
Facts in Process Industry:
Batch oriented process manufacturing.
Process order-based manufacturing.
It is primarily designed for the chemical, pharmaceutical, food and beverage industries as well as the batch-
oriented electronics industry.
The integrated planning of production, waste disposal, and transport activities within a plant.
Master Data includes Master Recipes and resources.
Process Manufacturing can be used in Continuous production, discontinuous production, Regulated
production as well as Process-oriented filling
Industry Type: Chemical, Pharma, Poultry, Dairy and many more
8. Tuesday, February 2, 20XX Sample Footer Text 8
Different types of manufacturing -Discrete, Process, Repetitive
Repetitive manufacturing
Process
Company manufactures product in large numbers and production is quantity based and period based not order
based. we can use repetitive manufacturing as either make-to-stock REM or make-to-order REM such as in
the automotive industry.
Repetitive manufacturing form an industry type where in the products manufactured can be discrete manufactured
or process industry type, produced repetitively or continuously in production lines. This forms the continuous
production scenario.
9. Tuesday, February 2, 20XX Sample Footer Text 9
Different types of manufacturing -Discrete, Process, Repetitive
Repetitive manufacturing Process
Facts in Repetitive Manufacturing:
Production is based on the planned orders/Material .
Planning and manufacturing is based on period wise.
Normally single products being manufactured for a longer period.
Normally production are carried out on a single production line (repetitively).
Product costing and settlement is done through product cost collector.
Planned orders are known as Run schedule quantities. Means quantity which is being manufactured in a
certain period.
Planned orders are sufficient to carry out production at shop floor area.
Master data includes production version, product cost collector and rate routing.
Materials will be issued anonymously to production lines means without reference to planned orders.
Creation and revision of production quantities on a period and quantity basis (reduction in individual lot and
order-specific processing).
Reduction in the production control effort and simpler back flushing (with the option of using the full scope of
the PP functionality).
Repetitive manufacturing is mainly used for the production scenarios with high product stability, high
repetition rates, and low product complexity.
Industry Type: Mechanical engineering, Consumer goods, electronics, and many more
10. 10
Manufacturing strategies - MTS, MTO, ETO
In a made-to-stock scenario, the incoming customer requests are fulfilled from the inventory. The
made-to-stock products are normally the consumer products or products which have a monopoly
market and are sold out of the existing inventory. Such products are developed and produced
continuously over the years till the product comes to the end of its life cycle.
SAP- MTS
SAP- MTO
In a made-to-stock scenario, the incoming customer requests are accepted and produced thereafter and ultimately
delivered to the very customer. The example of such a scenario can be high end products like jewelry or high-end
equipment's or very costly product. These products are normally configured by the customer and the order is
produced according to the customer requirements or by the design provided by the customer. The Sales order is
created or configured according to the customer requirements and passed on to the production team.
Engineer To Order is used when complex structures are build. In most cases these projects organize many tasks
and follow a long timeline to produce large, highly customized products to specific customer specifications. The
finished product, and also many components and subassemblies, have never been built before and receive brand
new product codes. Work Breakdown Structures and Projects are used to structure and manage the procurement of
long lead-time purchased parts, the dependencies in production and procurement and cost and timely delivery of
the final product.
SAP- ETO
14. Material flow in manufacturing
Material Staging
Material staging is used to stage the material from issue storage location to production storage
location. it is used for the materials which are staged irrespective of production orders.
Goods Issue to Production order
In SAP PP, goods issue takes place when the raw material is consumed to produce material as
per Production order. When goods are issued, the system decreases the inventory of
components at the storage location in the Production Planning system. Movement type 261 is
used for goods issue.
Goods Receipts from Production order
Good receipt is performed when the material is produced as per Production order and goods are
placed at the storage location. The stock quantity is increased, and the movement type 101 is
entered
15. SAP PP
SAP-CO
SAP-PM
SAP-QM
SAP-MM
At the time of
MRP
At the time of
MRP
Product costing
Break-Down
Inspection Process
In-process
Final inspection
Overview of integration in manufacturing across modules
