Hybrid Production (MTO and MTS)

I. Business Overview

The same product produced by a company has no special requirements under normal circumstances. Therefore, the business model of stock-based production is adopted, but occasionally the customer changes very slightly, this small change basically does not affect BOM and process. At this time, no matter whether there is a normal inventory, we need to produce products that meet the customer's needs.

Ii. system background configuration Implementation Instructions

1. Define the method for determining the requirement type (transaction code: ovzi)

In this tutorial, the System Standard settings are used: The requirement type is determined by the Plan policy in the material master data. In this example, the requirement type is used as an example.

You can also set a value based on the project category. In this way, different project categories can be used to determine different requirement types.

2. Create a Plan and Policy Group Z1 (transaction code: OPPT)

The Policy Group includes two standard policies.

By inventory production (MTS) select the most common system standard MTS strategy 40 (with final assembly plan)

By Order Production (MTO) select the most common one of the system standard MTO Policies 20 (by order production)

3. Definition of Planning Policy (transaction code OPPs)

This operation uses the system standard settings, as shown in

Plan policy 40 defines the requirement type ksv when creating a sales order (customer requirement)

Plan Policy 20 defines the requirement type ke when creating a sales order (customer requirement)

5. The requirement class is assigned to the requirement type (transaction code: ovzh)

6. Determine the requirement class (transaction code: ovzg)

This operation uses the system standard settings, as shown in

Demand category 040 is configured with special inventory E (sales order inventory ).

Requirement category 050 is normal stock

6. Summary of system background Configuration

The two business modes used in this example are compared as follows:

Business Model	Plan Policy	Requirement type)	Requirement class)	Special stock
MTS production by inventory	40	Ksv	050	Blank
MTO production by order	20	Ke	040	E (production by order)

Iii. system operation instructions

1. Set the planned strategy group of the item to Z1 (transaction code mm02)

Zf100 unlimited stock of materials is 1000.

2. Create a sales order with 10 orders. Check the availability and confirm that the number is 10.

The default requirement type of the system is the requirement type defined in policy 40 (produced by inventory)

3. create order 2. Manually change the requirement type to ke. Even if there is inventory, because the requirement type is changed to MTO mode, the confirmed quantity is 0.

Input the text "production record" (production memo) of the Line Project of the sales order with Special Requirements)

4. Run MRP. The system will generate a planned order for the sales order (transaction code md02)

5. Convert the planned order to the production order (transaction code md04 or co08)

The special requirements (text) entered in the sales order are displayed in the "production memorandum" in the production order.

Note: This text cannot be modified in the production order. When the text in the sales order is changed subsequently, it is changed synchronously here.

6. Check Availability again in the sales order, and the number of sales order requirements will be confirmed

Iv. Summary

1. in SAP, the same item sets two (multiple) planning policies in the Planning Strategy Group to implement different business models (MTO and MTS in this example ).

2. When creating a sales order, you can select the requirement type defined in the primary policy and secondary policy. The primary policy in the Planning Policy Group determines the default requirement type in the sales order.

3. The system determines the business model (MTO and MTS) by defining the requirement class and planning policy. The requirement classification is the most important definition.

4. MTO and MTS production arrangements and availability check rules are independent of each other. In the MTO business, even if a large number of warehouse inventory exists, they still need to be met through dedicated production.