Mto /mts/eto -process difference

Hi
what is the diffrence between
1. make to order
2.make to stock
3. engineer to order
pl explain & what configuration setting differences does these process have

Please make a search in this forum as umpteen number of times, this topic was discussed.
Production will be initialized only after sale order creaation is Make To Order scenario.
Irrespective of sales requirement, materials will be produced is Make To Stock scenario
thanks
G. Lakshmipathi

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HI All --MTO-MTS-ETO

Hi All
can any one explain
What is the procedure of MTO , MTS & ETO
Explain

Hi Prakash,
make to order:
it is a buisness scenario where the company produces goods according to the
needsand specifications of the customer,the product sold is not stored on the shelves.the product could be very similar but merely change a portion for differen t of its forms for different sales orders.the production cycle is trigered according to how the customer likes to see the product but not the company.
Make to order Scenario
1. Make-to-order production is a process in which a product is individually manufactured for a particular customer. In contrast to mass production for an unspecified market where a material is manufactured many times, in make-to-order production a material is created only once though the same or a similar production process might be repeated at a later time.
2. You can use make-to-order production: (a) For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured (b) When a product has to be assembled particularly for a sales order.
3. Stock keeping is not usually carried out for products that are made to order. In companies using make-to-order production, the demand program only determines the production area, in which various variant types are produced. Depending on how you track the costs associated with make-to-order production, there are two ways to process make-to-order items during sales order processing.
(a) Make to order using sales order
(b) Make to order using project system (not relevant for SD application)
4. for make to order production using the sales order, all costs and revenues involved for an order item are held collectively at that item. A particular rule is used that can be changed manually to transfer costs to profitability analysis.
5. make to order production is largely a production planning configuration. It is also controlled by the requirements type, which is determined by three things
the strategy group (MRP 3) in MMR
the MRP group (MRP1) in MMR
the item category and MRP type (MRP 1)
6. Make-to-order production is controlled by the requirements type. The requirements type is determined on the basis of the MRP group (MRP1) and the strategy group (MRP3) in the material master record. In addition, a plant must be assigned for make-to-order items in the sales order.
make to stock:
here the production is done irrespective of the customer orders, it is usually done on the basis of the sales forecasts not on the customer specifications, it is usually a push strategy,company produces the products and they are sold.
there is no customising of the product.
STO
Whenever you need to transfer the materials from one plant to another plant belonging to one company or belonging to two company code stock transfer order is raised by the delivering company.
STO:
Transfer of goods from one location to another location,it may be between plants within the same company code or in different company code's plants.
within the company code,bet plants, receiving plant will raise the STO in Supplying/issuing plant-ME21n,
Supplying plant will deliver the goods to receiving plants , then we need to pick n post the Goods Issue-VL02n, nw when we can observe that the STO qtty will be added into receiving plant and reduced in Delievering plant.
Configure Intercompany Stock Transport Order
Material should exist in both the plants (Delivering & Ordering),
Internal customer should be assaigned to the ordering plant ( MM -> Purchasing -> Purchase Order -> Setup stock transport order -> assign the internal customer to the ordering plant and assign the Sales area of the internal customer.
Assign its Sales area to the delivering plant
Assign the document type and Delivery type NB and NLCC
Assign the Supplying plant --> Receiving Plant --> NB
Take the delivering plant and assign the sales area.
Vendor master has to be created and assaign the supply source ( Delivering Plant).
Create a puchase order ME21N ---> Save
Delivery VL10 G ---> Calculation rule (appropriate) --> Assaign the purchase order number here nt. and execute.
Select the Delivery creation line and do the back ground process.
Start the log display and see the delivery document number by the documents button
Goto VL02N --> do picking and PGI --> Then do the MIGO with respect to the delivery docume
Billing (Intercompany pricing conditions should be set).
Assign points if useful

Difference between MTO/MTS vs Consumption Based Planning?

Hi,
What is the Difference between MTO/MTS vs Consumption Based Planning?.
In what scenario we used these types?? could you please explain me with examples...
Regards,
Raj

Hi,
MTS = Make to stock, you are simply wanting to build up stock and so this will generate requirements even if there are no Sales orders or demand of any kind. This is the most common option
MTO = make to order, you only want these items when there is a specific
But consumption based planning is not completely different, you are still using MTS / i.e. you are creating requirements based on the settings in MRP instead of any demand (but the same applies to MTS)
So MTS and consumption based planning are more or less the same thing.
You would use MTO if you produce items only when you have an order.
So if you have warehouse space and sell a lot of an item, you can use MTS or consumption based planning because you know that you will always be likely to be able to sell the stock.
If you make things for specific orders (such as special sizes or specifications to match the customer's requirements. Or if you don't sell many of an item and the lead times for production are very short (or you don't have much warehouse space) then you would wait for an order before making the item (MTO
Steve B

ETO/MTO/MTS

Hey All
Can anyone tell me what the implications are of choosing a specific strategy group in create material (MRP 3). Does my choice here affect anything elsewhere in SAP?
(For example: Is it possible to put a product into inventory if it is registered as MTO or ETO?)
Thank you
Nina
Message was edited by:
Nina Henriksen

Strategy group will decide how the production planning is to be carried out.
How the sales orders to be treated, how the PIR to be treated, how the net qty to be produced - is calculated.
There are many stg groups which will give different results depending on the fields in MRP3 view.
To get the detailed idea please go through the link below
http://help.sap.com/saphelp_47x200/helpdata/en/cb/7f9b7043b711d189410000e829fbbd/frameset.htm

Reg. Accounting Revenues for MTO & MTS in SAP PP

Hi all,
I am having few doubts in Costing aspects of SAP PP.
What is Accounting revenues for MTO & MTS scenario how its to be defined.Please explain?
What are the Costing impacts of SAP PP.How the Costing of a Product in the production aspects to be addressed.What are the prerequistes for that.Please provide me help materials with detailed examples.
Thanks in advance,
M.Badrinarain.

Dear Badri,
Plz refer the below link, this is current thread of CO Forum, Reply by Mr. Mangalraj
[Product Costing;
Regards
kumar
Edited by: kumar kumar on Nov 9, 2009 11:07 AM

Material Issue for both MTO & MTS

Dear Guru's
I have to do REM Backflush for a MTO scenario.
The corresponding raw material are available in stock which was not purchased over a period of time.
When I try to do post with correction the system is not allowing me to do the posting, the system is giving error as sales order item is not available.
Can anyone help me consumming the raw material available in the stock .
Is there any settings to be done to consume the material which is available in the stock for bothe MTO & MTS.
Kindly do the needful.
Helping hands will be appreciated with good points.
Thanks & Regards,
Arul.

Hi Arul
Please check the below in your DEV server.
If you put the Individual/coll indicator to 2 in MRP 4 view in material master the raw materials can be taken from unrestricted use stock while back flushing.
Or
IN MB1B you can use mvmt type 412E to convert unrestricted use stock to sales order stock.
SO u can do the backflushing after the conversion.
Cheers
JOJI

FOR MTO & MTS scenario when the Production order shows the Sysy status DLV?

Hi ALL,
In the MTO & MTS scenario when the Production order system status become DLV ?
Regards
Satish

Hi Satish,
For both the planning strategies (MTO/MTS)..
The status of the production order becomes DLV ,
when you do GR for the order with 101 movement type.
(OR)
At the time of final confirmation if automatic goods receipt is activated.
Regards,
Anil

MTO & MTS

Hello Gurus,
What are the MTO & MTS. Explain me clearly with example.
Bye

Hi,
MTO - Acronym for Make -To- Order. Material which are made against a specific sales order / project / network order. The requirement created for MTO materials will be individulal. Stock of the materil will be maintained in separate stock segment of the order / project. Stocks can be valuated on non-valuated. In valuated stock, every material movement creates a corresponding accounting document, whereas in non-valuated stock materal movements do not create aaccounting document. production orders / puchase orders for MTO materilas will be account assigned to sales orders / networks / WBS element etc.
MTS - Acronym for Make-To-Stock. Stock is maintained at plant level. There is no separate stock segment. Production order / Purchase order etc. are not account assigned. Every material movement creates an accounting document.Requirements / inventory are mainatained and tracked at plant level.
Hope it provides basic information sought by you.
Regards
Muraleedharan.R

MTO/MTS--------------------Yesterday

Hi all
Very one Explined MTO/MTS Yesterday very nice
Can any one send materail for configration
pls

hi,
Business procedures material based on MRP irrespective of the sales order ie Make to order
If the standard product is going to be change slightly according to the customer requirement then businss manufacturing that particular material for particular customer called as Make to order.
Inventory is going to be maintained in special stock indicator E order inhabd
Configuration
Create material master by maintaining general item category group- 0001(make to order)
Availability check - 02
Transportation Group - 0001
go to va01 and raise sales order
item category:TAk
Schedule line category : cp
Requirement type KE
Requirement class 040
Check TOR and avalability check
special stock : E
VOV7
of TAK
billing relivence : A
Pricing :X
go to mb1c
maintain stock with a special stock indicator E
mavement type 61
Special stock E
specify sales order number line item number and saveit
go to VL01N main data
Go to VF01
save it
note for make to order you cannot maintain availability check
sreekanth.vaka

Re: MTS to MTO+MTS

Dear Expert,
we are currenlty using MTS scenario & now plannig for MTO + MTS scenario. For fert level we will do MTO & Semifinish, raw material level will do MTS scenario.
can any one tell how to map this scenario/any configuration changes ?
which plannig strategies are need to be used in material master?
i have tested with Planning stratgies 20 but it is not generating accounting document, so please help me.
Regards,
Ishwar J

Dear Ishwar,
1.First check whether planning strategy 50 will be suitable your business requirement,here PIR's will be entered at FERT
material level and all the planned orders for the dependent requirements can be converted and produced and kept in stock ,but
for the final product alone only after recieving a sales order its planned order can be converted into production order.
The system generates a planned order which is convertable.
2.In this case if this not suitable check with planning strategy 40.
3.If this is not suitable means create a strategy group by combining one make to stock and one make to order planning strategy
and check the output.
Regards
Mangalraj.S

Re: MTO & MTS for same product

Hi Experts,
How to configure both MTO & MTS for a same product.
Regards,
Vivek

Hi Experts,
I am having a requirment for MTO Subcontracting order.The customer issues raw material for the production for the FG product. Now I want that the system should do the Planning for the FG by MRP & also to calculate the the raw material required. The system should also be able to created purchase requisition for the deficit raw material. The raw material should not have any financial implication i.e. they are are only relevent for stock posting & not for any valuation purpose.
Here my client is the subcontractor. So he does production for Other clients as well.
Please advise.
Regards,
Vivek

DIFFERENCE BETWEEN ----MTO & MTS PROCESS

HI,
CAN ANYBODY EXPLAIN THE DIFFERENCE BETWEEN MTS AND MTO.I WANT TO CONFIGURE MRP RELATED CUSTOMIZATION.BASICALLY I AM AN MM CONSULTANT.SO KINDLY GIVE YOUR SUGGESTIONS.
FLEMMINGS

Hi,
In make to order process, u plan ur production on the basis of the orders u get. So, its like if u get some 10 orders, u'll plan ur production in a way that u can fulfill those 10 orders.
While in make to stock, u produce to stock ur materials, its like u plan ur production on the basis of ur production capacity and after production u stock that material. Now when the orders come u service them from the materials which u have already produced and is stocked....
Reward, if helpful
Noopur

What is Discrete Mfg and MTO,MTS

Hi Gurus,
Can any one tell What is discrete mfg. And what is MTO and MTS in Discrete Mfg.
Thanks
Kevin

Discrete Manufacturing pertains to industry which frequently switches the manufactured products for eg: Speciality Electrical products, Heavy engineering products(Pressure vessels, Fermentors etc), Computer assembly etc. So every product you make in discrete manufacturing industry will have different components, work centers, routings etc. This is in contrast to repetitive / process industry where the product configuration and process remain fairly constant over a period of time.
MTO (Make to Order):
In make-to-order production (strategy 20), every sales order is planned individually and managed in its own segment in the MRP list or the current stock/requirements list.
The system does not perform a net requirements calculation between individual sales orders or with the anonymous warehouse stock.
The lot-for-lot order quantity is used as the default setting for the lot-sizing procedure, regardless of the entry you have made in the material master record. You define the lot-sizing procedure for make-to-order production in Customizing for MRP in the workstep "Checking the lot-sizing procedure" in the field "Lot-size calculation for MTO production". Depending on the setting of the lot-size indicator in the material master record, you can define a different lot size for make-to-order production from the one used in make-to-stock production.
MTO (Make to Stock):
The demand program is defined without reference to sales orders.
Sales orders are not relevant to MRP, but can be displayed for information purposes. You make this setting in the "No MRP" field in Customizing for the appropriate requirements class (workstep, "Defining Requirements Classes" in Customizing for SD).
Sales orders are covered by warehouse stock. In Sales and Distribution, you can carry out the availability check according to ATP logic. Material withdrawals for a sales order reduce this sales order's quantity.
The consumption of the demand program (that is of the planned independent requirements) is carried out at goods issue (the indicator "PIR reduction" in Customizing of the requirements class 30 must be set if you want to reduce the demand program when delivering to a sales order). The oldest planned independent requirement is reduced first according to the FIFO (first-in-first-out) principle using the requirement date. Future planned independent requirements are also reduced by goods issues, if allowed by the consumption mode and the forward consumption period.

GATP in MTO/MTS scenario

We have an ongoing implementation for a paper industry using GATP. Ours is basically a make-to-order(MTO) scenario. But we have some stocks (from order cancellation, rejects, etc) which we move to unrestricted stock category (that is without account assignment). So our planning strategy group contains MTO(primary) and MTS (secondary) strategy. We use reqmnt classes 046 and 049 respectively.
Reqmnt types are KEK and KSVS respectively. When we create a sales order we default the reqmnt type to KSVS so we can do a GATP check for unrestricted stock. We use basic availability check, rules-based check, and CTP.
We need solutions for the following:
1. When we do the GATP check it always reduces the required quantity from the available unrestricted stock quantity. In some situations, we don't want to consider the stock even if it matches most of customer requirements (for plethora of reasons). Is there a way to do confirmation bypassing the stock and trigger CTP for the entire required quantity.
Example: Unrestricted stock qty available=100, required qty=200. Instead of producing 100, is there a way to tell the system to produce 200(since we don't want to take the available stock).
2. When we do only the basic availability check (without activating RBA), in the GATP screen when we click on the delivery proposal button, it takes us to the sales order screen and we are able to see the confirmed quantity in the schedule line. In this case when we click the check instruction button in the GATP overview screen, it shows check mode 049 and business event A as expected. But when we also activate RBA and do a GATP check from the sales order it shows the substitution list with buttons for delivery proposal. If we click on a button for delivery proposal where it shows a confirmed quantity, it doesn't show any confirmed quantity in the delivery proposal screen. Also, when we click on the check instructions for one of the substituted rows, it shows check mode 046 and business event A.
Why we are not able to do a confirmation in this case? Are we missing any setting in R/3.
We are using ECC 6.0 and SCM 5.0
Thanks,
Ramesh

Tilman,
Well, it can be executed...but the results are inconsistent. RBA GATP will in some limited circumstances give deceptively reasonable results for MTO, especially with CTP. However, it is not a comprehensive solution as pointed out by Sanjeev. The problem lies in the subitems created in ECC. Each subitem is account assigned to the sales order item or subitem in MTO (although it is not yet clear to me that YOUR 'MTO' orders are so configured). When performing an atp, and during Backorder Processing, when you perform the product check, the first thing the check does is to delete any subitem and all unfirmed supply elements in APO and then run RBA GATP. Now, the account assignment is no longer relevant for the subitem, but is changed to being relevant to the ITEM. Product check can no longer find any firmed supply elements (such as stock, or production orders, or Purchase orders), and will either deconfirm, go to lead time, or create another planned order, depending on your settings. This is unsatisfactory.
You also mention seeing Business Event 'A' in your scope of check. This is typically 'not-account-assigned'. AE is usually used for Sales order account assigned checking. This is hard coded in SD and sent to APO during the ATP check (well, it was before ECC6, I haven't worked much on this rev yet). If you are not getting Business Event 'AE' or 'A-something' when you do a 'scope of check', then you are only checking generic stock.
You didn't mention the strategies you are using, but KEK/046 sounds quite a bit like strat 25. Anyhow, whichever it is, the strategy configuration in ECC should have 'Acct assign cat' set to 'E", if you want MTO. If you are actually creating MTO requirements, I would be surprised that you didn't receive an error during your ATP check, without also having 'AE' configured in SCM under "maintain check control" and also under 'Maintain Check instructions".
Rgds,
DB49

MTO & MTS scenario

Hi,
I am having a requirement where my final product ius MTO and input products are MTS..
PPM is defined at all levels, when a Sales Order is created for the final product and I take a CTM run Order segment is created for that order and corressponding Planned Orders are created at subsequent levels which are assigned to the same order segment eventhough the input material is MTS.
I just wanted to know in this scenario can we generate Planned Order for MTS material which will not be assigned to any order segment and which can be pegged to any MTO Sales Order for the final finished component.
I am using CTM for planning.
Thanks & Regards,
Sanjog Mishrikotkar

Hi Sanjog,
Please refer to SAP thread [Sales Order on 1 product and Need to consume Forecast on another product|Re: Sales Order on 1 product and Need to consume Forecast on another product] .
here forecast product is MTS and Sales order product is MTO.
You can map a planning material scenario to achieve this.
Regards,
Digambar

Mto /mts/eto -process difference

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