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.

Similar Messages

What is discrete manufacturing and REM?

Hello All,
What is discrete manufacturing and REM?
Sincerely,
Ketan

Hi ketan,
-Discrete manufaturing is Lot based production system, Porduction order is cretaed for Every Lot and order based confirmation & Cost control is carried out.
-Repetative manufacturing is period based production system, production order concept will not work, so period based confirmation & cost control is carried out.
Below points helps to underdstand the difference between them.
- A typical characteristic of discrete manufacturing is the frequent switching from one manufactured product to another. The products are typically manufactured in individually defined lots, the sequence of work centers through production varying for each one of these. Costs are calculated on the basis of orders and individual lots.
- In Repetitive Manufacturing, products remain unchanged over a longer period and are not manufactured in individually defined lots. Instead, a total quantity is produced over a certain period at a certain rate.
- Discrete manufacturing typically involves varying the sequence of work centers through which the products can pass during production. The order of work centers is determined in routings, which can often be very complex. There can be waiting times between the individual work centers. Also, semi-finished products are frequently placed in interim storage prior to further processing.
- Repetitive Manufacturing, on the other hand, normally involves a relatively constant flow on production lines. Semi-finished products are usually processed further immediately without being put in interim storage. Routings tend to be relatively simple.
I hope u have understood if yes please reward and close the thread.
Regards
Pardeep

Process loss in Discrete mfg.

Hi experts,
My Input material (raw material) for a product is 40g and the out put (Finished product) weight is 20g. where we will show the material loss in discrete mfg. MTO Or MTS manufacturing scenario.

Hi,
There are two parts in scrap posting:
1) Inventory
2) Costing
If there is no physical scrap generation or no inventory recording of scrap is required as well as there is no cost credit of scrap material is involved then you can simply maintain BOM data as 4 kg of SFG for 2 kg of FG. So, if backflush is activated then during confirmation of 2 kg FG as yield system will issue 4 kg of SFG.
If inventory of scrap material needs to be recorded or cost credit of scrap material to FG production is required then you need to:
Step 1) Apart from SFG maintain material master data for scrap material (not sure backflush require or not)
Step 2) Along with SFG component maintain scrap material as component for FG BOM but with -ve quantity (i.e. - 2 kg of scrap material for 2 kg of FG)
As scrap material is maintained as component in FG BOM, system will add one row for scrap material receipt in Goods Movement list during confirmation. And system will also credit cost of scrap material to production/process order (debit SFG component cost).
Try this and if require get back with your query.
Bye for now,
Devang

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

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

What is diff between OPM modules, MFG Modules, discrete mfg modules, regular supply c

What is diff between OPM modules, MFG Modules, discrete mfg modules, regular supply chain modules.
As a techi guy I have worked on OM but not able to answer the difference between
please help
Thanks

Process and Discrete industries have some fundamental differences in their product development, materials, production procesess and planning procedures. Process industries need to deal with Variable Ingredients, By & Co-products, UOM are that are Material Specific. Multiple Recipes and Formulas are used to make a single product due to seasonality or plant equipment variations. Process industries need Lot, Grades, Potency, Shelf-life.
Manufacturing is different too...think of industries where materials are blended together like paints, or food products, beverages. Also unique is decomposition...breaking something apart, like a chicken into its components: legs, thighs, breasts etc and be able to track the costs.
The Oracle Process Manufacturing suite is capable of supporting all of these industry requirements.

Is there any constrain in using the same order type for MTS and MTO

Hi,
i have the constrain to use single production order type .
Can i use single order type for MTO and MTS.
is there any constrain in using the same order type for MTS and MTO.
pls help me.

Hi,
There is no constraint or limitation in using the same production order type for MTS and MTO . Settings in requirement class and material master will mainly control whether the flow is MTS or MTO.
Regards,
Mrinal

MRP, MTS, MPS and MTO in DP

Hai,
Where do we use MRP, MTS, MPS and MTO in DP? Can somebody refer me to any documentation?
Thank you.

Hi Visu,
I never imagined your question came related to a DP job requirement. While technically these are not relevant for DP, but as a DP consultant you need to be aware of the concepts which are definitely more relevant on the supply side (SNP, PPDS).
"Character Based Forecasting (CBF) deals with variant configuration or nothing but MTO scenario right?" - you can argue that CBF is a functionality for MTO scenario especially when dealing with large variety of similar products.
"Also DP-BOM works with dependent requirements generated from BOM." - DP-BOM or Forecasting with BOM is a special functionality in DP to manage demand for a product which has both independent as well as dependent requirements. Please note it is not for generating dependent requirements only. Classic example - a speaker set that can be sold separately or as part of a packaged audio system. But then this is NOT MRP because we are talking about generating the demand only.
MRP is to generate net requirements for "components" after exploding the BOM for "finished item" and netting against stock to create relevant receipt elements (Purchase Req or Planned Orders).
Somnath

Process Mfg and Discrete Mfg

Hi,
I want to know Wat is the basic difference between Process mfg and Discrete Mfg. ?
thanks in advance

hi namitha,
in both case prodcution is carried out as per production quantity
process industry has master data as follows
1. material master
2. bill of material
3. resource
4. master recipe
there is one more functionality in SAP PP PI is Process instruction sheet,
transaction data
1process order
and for descrite manufacturing
master data is as follows
1. material master
2. bill of material
3. work center
4. routing
transaction data
1 production order

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

ETO and MTO Product Costing

Hi All,
Im joining new project, which is basically Product costing related to ETO and MTO processes. As a design consultant, what would be my tasks in ETO and MTO process?
Any one have Design documents and Configuration documents related to ETO and MTO product costing, please forward to me.
I will assign points.
Thanks,
Rau

Hi,
Refer this:
http://help.sap.com/saphelp_46c/helpdata/en/51/5828e4a44c11d189bf0000e829fbbd/frameset.htm
Regards

Oracle 8i and COM + (MTS) on the same computer

I don't have additional server to follow Microsoft recomendation to have Oracle and COM + on separate computers. What type of problems I may face if I put Oracle and COM + (MTS) on same server computer?

Evgeni, There is no problem. It is just that you will load a single system. Generally, in an n-tier appliation each layer resides on separate machines. But, that is not a hrad-and-fast rule.

Activation of Discrete Industries and Mill Products in existing IDES system

Dear Sir,
I want to activate Discrete Industries and Mill Products in my existing IDES system (EHP4 FOR SAP ERP 6.0 / NW7.01)
Can some one help me with what steps i need to follow.
Also does it will effect the existing data in IDES....?
Thanks in advance .
Regards

Hi Sunnny,
Thanks for your reply.
as i checked in IDES , facility to activate the addtional packages are there.
with transaction SFW5, i can select the required package and activate it.
but during this process system is giving some warning,
*Note, that not all Business Function Sets or Business Functions provided with SAP ECC 6.0,might be covered by the respective customers' license and maintenance agreement. Use of and access to said software components provided with SAP ECC 6.0 may be subject to additional fees and conditions as stated in SAP's then current list of prices and conditions.
Caution: When you activate an industry solution, this results on the following restrictions on your system. Note that you cannot generally combine one industry solution with other industry solutions or add-ons. Furthermore, an activated industry solution cannot be deactivated. The release strategy note for the desired industry solution can be found in note 838003. The release strategy note contains a reference to the installation note. Read the note on installing/activating the industry solution before beginning activation*
so i want to know what will happen if i click I agree for this warning message.
just by following this process its possible to activate the required bussiness function...?
Thanks
Regards

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

What is Discrete Mfg and MTO,MTS

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