Business scenario for collective orders

Question

Hello folks,
Can somebody explain the business scenario associated with collective orders? why we need collective orders? what is the business requirement that calls for collective orders?
Regards,
Sravan Kumar

Answer 1

You may create several production orders from several planned orders, provided that the planned orders exist in the same plant and belong to the same MRP controller. This is called collective order conversion.
A collective order is a linking together of planned orders or production orders over several manufacturing levels.
Every production order has its own routing and order number.
When you are in the collective order structure, you can edit an individual order, a subtree, or the entire collective order.
Goods movements are not required for sub-assemblies. The material is passed on directly to the next
order up.
The special procurement key determines whether direct production is involved.
Since no goods movements are required for sub-assemblies, this means that you have less data to maintain. Goods movements are only required for the leading order and for components whose special procurement key does not stipulate that direct production should be used.
Changes to dates and quantities affect all related orders.
The actual costs of the production process are more realistic because they are not influenced by the
predefined price in the material master.
Master Data.
Special procurement key "52" on MRP 2 view
Individual Collective Flag MRP4 view
Bills of material and routings at each assembly level
Any structure possible