Make to order

Dilip Sadh

Standard MTO/ ATO Process Cycle, salient features, review

Make to Order Production (20)

Assembly processing (81, 82, 83)

Transportation Planning Point

Make to Order Production (20) 1/4

• Each sales order is planned separately in the stock/ requirement list. The net requirements

calculation is carried out individually for every sales order.

• The procurement elements, that is the planned orders are created with reference to the sales

order and are managed in the individual customer segment. This direct reference to the sales

order also remains in the production order.

• Using the individual/collective indicator, you can allow make-to-order production at any level of

the BOM structure.

Salient features of MTO Production – Strategy (20).

Transportation Planning Point

Assembly processing (81, 82, 83) 1/6

• Assembly processing is a form of sales order processing. The procurement elements are created

when you create the sales order items.

• In general, the components of the finished product have already been manufactured.

• Once you have created the sales order, the system checks the availability of the components (for

the production order). It also determines a possible delivery date and costs the order.

• With strategy 82, creating the sales order triggers the creation of a production order. It is not

necessary to carry out a separate MRP run.

• With strategy 81, when you create a sales orders, the system creates a planned order for

repetitive manufacturing .

• With strategy 83, it creates a network for engineer-to-order production.

• The total confirmation date depends on the date of the components which are last to be available.

The confirmation quantity depends on the available quantity of the components with the lowest

confirmed quantity on the requirements date.

Salient features of Assembly Processing – Strategy (81,82,83).

5

As Key inputs to process

performance measures

MTO turn around time from order placing to delivery

Key Performance Indicators for MTO processes

Adherence to Delivery dates.

Payment receivable as per payment terms.

Availability of Warehouse

assemblies Inventory.

Avoid procurement process lead times where ever possible.

Process time (shortest and longest), Ideal process time

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