MTS FG to MTO FG

[Former Member]

Dear All,

We are producting the CNC machine basic model (FG) using the forecasting based Make to stock scenario and keep in the FG stores. 1.When the sale order is entered, customer required the the basic model with some of the components change ( list from add on). So based on the sale order required, we take the CNC machine and do remove some basic components and replace new customer required components.  2.In some cases, in the production of SFG level, the sale order will be come and we ca use this SFG and add required components and sell it.

How to mapp this 2 scenario in SAP. i tried to use variant configuration, but user create indiviual material number if any change in specification for the same type of components. moreover the final FG is taken and change some of the components based on sale order requirement.

How the Masters has to be created and what process we have to follow,

Thanks,

RajV

[Former Member · Accepted solution]

Hi Bakyaraj,

Use of Variant Configuration is a good choice.

If the number of 'Final versions' of the machines that you deliver are limited, you can also set up Material variants (individual material numbers for specific version of the product).

You can set up the Standard version of the product(say FERT*) as one material and keep producing them based on your forecast. And the Final changes (addition / removal of components) can take pace based on the Sales order configuration values (Characteristic values chosen in the Sales order).

You can set a Super BOM (probably usage 3-universal).

You can add the following items as components -

• Standard product (FERT*) as input (with positive qty to allow consumption)
• All possible additional components for all versions (with positive qty to allow consumption), and include the Object dependencies (most of them could be simple 'Selection conditions' and few 'Procedures' or 'Pre-conditions'); So, the actual production orders will have only the sub-set of these items based on the Object dependencies.
• All possible item that you would remove (with negative qty, to allow Goods receipts as by-products); and include the Object dependencies (most of them could be simple 'Selection conditions' and few 'Procedures' or 'Pre-conditions'); So, the actual production orders will have only the sub-set of these items based on the Object dependencies.

If needed, You can also have Super Routing; and include Object dependencies for the operations.

Few useful links for ref -

http://scn.sap.com/docs/DOC-25224

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/LOVC/LOVC.pdf

http://10.155.92.23:15871/cgi-bin/blockpage.cgi?ws-session=538996527

Regards,

Senthil

[Former Member · Accepted solution]

Dear Senthil,

Thanks for your update.

I have following doubt from your reply. kindly clarify

1. The FG code should not be changed even after changing the components in the basic model (FG). so how to use the Material variants (individual material numbers for specific version of the product),

2. When the Super BOM should be created. Can be included in MRP with what planning stretegy for fert.

3. Other than handling this scenario with variant configuration, can we handle this with normal rework production order. Create new rework order without material. create BOM with components ( add and removal) and FG material. So when we confirm the FG will be same.

Thanks,

Raj V

[Former Member · Accepted solution]

Dear All,

Any suggestion for the above scenario.

[sjeevan · Accepted solution]

Bakyaraj V wrote:
Dear Senthil,
Thanks for your update.
I have following doubt from your reply. kindly clarify
1. The FG code should not be changed even after changing the components in the basic model (FG). so how to use the Material variants (individual material numbers for specific version of the product), 
2. When the Super BOM should be created. Can be included in MRP with what planning stretegy for fert.
3. Other than handling this scenario with variant configuration, can we handle this with normal rework production order. Create new rework order without material. create BOM with components ( add and removal) and FG material. So when we confirm the FG will be same.
Thanks,
Raj V

I think the third option you mentioned would be more suitable for your requirement. You do not have to create any rework order. You can maintain one BOM and create production order and then change the components inside the production order. Here I'm assuming that price you're charging the customer is taken care by sales people.

Variant configuration can make your process pretty complex and maintaining data for that set up is a headache.

[Former Member · Accepted solution]

Hi,

I had a similar scenario in my previous implementation. I can suggest you something. But please answer following.

Is production driven only by Forecasting or also by sales order.

Will sales order sonsume PIR or not.

Is final product after GR valuated (Even after minor chnage) Since number will reamin same I assume yes.

Note: - My response will be delayed.

[Former Member · Accepted solution]

Dear Jeevan sagar,

1.As you suggested, if i donot want to create Rework order, How can we use the production order, as my Output FG and input FG is same with add and removal of components.

2. Is it require to create a BOM for the FG or simply maintain the components in Components overview is enough. If BOM is required, should i create with new alternative.

3. How the production people knows the new add on components from sale people through SAP system

4. Is the production should be created manually. Any possibility to have sale order req consideration to create prod order

kindly clarify the above points.

Thanks,

Raj V

[Former Member · Accepted solution]

Dear Senthil.

Could you comment on this Mr. Jeevan sagar suggestion.

Thanks,

Raj V

[Former Member · Accepted solution]

Dear Animesh,

The scenario is producting the FG (Basic model) as per forecast plan. When the sale order is comes for basic model, then simply the sale the basic model.

If any change in component for basic model, then they do remove and add the basic model and sell in the same model name.

1. As explained, the sale order cannot consume directly the PIR, as the basic model has to be changed for some components in some case.

2. So production ordere not driven by sale order

3. If i use rework concept, GR post not applicable.

Kindly suggest for the scenario as simple. since my understanding may wrong in my answer.

Thanks,

Bakyaraj V

[Former Member · Accepted solution]

Hi Bakyaraj,

Thanks for the details.

Sure, the use of VC process adds complexity to the Master data as well as transactions. But, if you are truly in the business of manufacturing VC products, you may wish to consider this process to reflect the business processes clearly.

And you can definitely consider various other options and choose the best fit.

1.If i donot want to create Rework order, How can we use the production order, as my Output FG and input FG is same with add and removal of components.
2. Is it require to create a BOM for the FG or simply maintain the components in Components overview is enough. If BOM is required, should i create with new alternative.
 3. How the production people knows the new add on components from sale people through SAP system
4. Is the production should be created manually. Any possibility to have sale order req consideration to create prod order

This does not appear to be the ideal solution, but if it fits your requirement, it is good enough.

Please include the requirements from the Product costing, Inventory tracking, Reporting, etc., also while choosing the processes.

And, if we choose this process, there is no easy solution to communicate to the Production team about the exact changes to the product.

• You can consider the option of using Sales Memo text to pass the instructions from the Sales order to the Production order; and of needed probably print them out as part of Shop floor papers. Ref to these threads as well.
  • http://scn.sap.com/thread/3346269
  • http://scn.sap.com/thread/3326963

And adding on...

• a) For occasional requirements - for the Final product mfg, It is good enough to fill the component overview screen within the Production order with FG#, required additional components (+qty) and items that you are removing out (-qty)
• b) For frequent requirements,
  • You can set up the BOM version 1 for the Standard product --> Assign with Routing version 1 --> Set up Production version 1 ==> use this for regular/Std product mfg to stock
  • Set up BOM version 2, with the Std FG#(recursive) and all possible additional components (+qty), all possible item that you could remove (-qty) (like a Super BOM)--> Set up Routing 2 --> Assign them to Production version 2
  • At the time of creating the production orders, you can choose the production version (Std product or the Final product per S/Ord reqt) and if the second one,... the planner needs to go to the component overview and trim out the list from the default Super BOM, and then proceed with the order processing.

You can also consider Setting up Two different Production Order Types,  assigning them to the Production scheduling profile and use them for the Standard product (MTS) and second one for the MTO - to help with tracking/reporting purposes.

And, You may even consider using Assembly Order processing for the Final product --> so that the Production order (use a different Order type) gets created directly at the time of Sales order creation (use Production version 2) and the component list / instructions can be added/removed,....

Again... There could be many more good options; Kindly explore and choose the best fit, that addresses your unique business process requirements.

Regards,

Senthil

[Former Member · Accepted solution]

Dear Senthil,

Thanks for your detailed reply.

1. For forecast based production, there is no problem, we can create Production order for basic models based on forcase with one order type

2. For the sale order requirement of 2 scenario as below,

1. If the sale order is created for basic model without any change, we take the stock.

2. If the sale order is created for basic model with different add on ( change in material), here i have doubts to clarify,

     a. will sale order create planned order automatically with add on details

     b. How to create BOM, as basic model is component and also FG

     c. we settle for production order, if we do one more production order for already producd FG, How the actual will be captured.

Note: As you suggested the variant confiuration, we cannot implement, because, on which level, the production order is created for the sale required is unknow.  in some cases, when the sale order is created, the already finished FG (basic model) is taken and replace some components. other cases, to cover the sale order requirement, use the some of the sub assemblies and add required components. For this, how we can use variant. As variant configuration can do, if only we do final assembly production based on the variant required.

Thanks,

Bakyaraj V

[Former Member · Accepted solution]

Hi Bakyaraj,

Thanks for the details.

2. If the sale order is created for basic model with different add on ( change in material), here i have doubts to clarify,

a. will sale order create planned order automatically with add on details

• Yes - Only if you use VC;
• Else, You need to manually adjust the component list in the Planned/Production order

b. How to create BOM, as basic model is component and also FG

• Please use the 'Recursive' setting in the BOMs. Refer to the links below -
  • http://help.sap.com/saphelp_470/helpdata/en/ea/e9b3b74c7211d189520000e829fbbd/content.htm
  • http://help.sap.com/saphelp_470/helpdata/en/bc/566916eff011d189be0000e8214595/content.htm
  • http://help.sap.com/saphelp_470/helpdata/en/ea/e9b3aa4c7211d189520000e829fbbd/content.htm

c. we settle for production order, if we do one more production order for already producd FG, How the actual will be captured.

• Please refer to the Recursive BOM process.
  • http://help.sap.com/saphelp_470/helpdata/en/f8/a3e333bf3d11d189900000e8214595/content.htm

Note: As you suggested the variant configuration, we cannot implement, because, on which level, the production order is created for the sale required is unknown.  in some cases, when the sale order is created, the already finished FG (basic model) is taken and replace some components. other cases, to cover the sale order requirement, use the some of the sub assemblies and add required components. For this, how we can use variant. As variant configuration can do, if only we do final assembly production based on the variant required.

• You may wish to check again. VC processes covers this.

Regards,

Senthil

[Former Member · Accepted solution]

Dear Senthil,

We planned to use the variant configuration as suggested. We have the plan as below

1. We are going to create 2 FG name for single CNC

a. xxx matl for basic model with std bom and routing - It follow production based on forcase (MTS) planning stategy 40 will be used. If any sale order is raised, the produced FG will be sold

b. yyy matl for the add on required in sale order. This will have super bom and routing include XXX ( Basic model). The sale order is raised for yyy material, so sales person can select the variant. component and the basic model. But how to mention the removal components here . Planning strategy 25.

2. I donot work on the Variant configuration. Can u guide me to implement and create Masters - super bom and PV.

Is the above said process is correct. can you suggest

Thanks,

Bakyaraj V

[Former Member · Accepted solution]

Hi

If you have agreed to use seperate material number of modified requirement in sales order, then you can very easily use strategy type to act MTO with cost assigment of MTS so that GR is evaluted.

The basic issue in your case is that your FINAL GR should not have "GR, non evaluated" selected.

You can do this making appropriate requirement class and assigning it to requirement type.

Create new requir. class using OVZG and assign using OVZH. Make sure your requirement class has MRP indicator as 1 and account assigment details like those assigned to strategy 40.

you can create seperate order type to keep a track of this process.

[Former Member · Accepted solution]

Dear Animesh,

As explained in last comment to Senthil,

1. We planned to use the new material number and have super BOM for the sale order requirement with variant. So sale person can choose the variant along with the Basic model.

Planning strategy 25 is thought to use for the new material number. Because, we really donot know what components would be asked by customer.

But as you said, can we use strategy 40 ( for variant materials selection scenario). what what is the need of new requ class for the same

[Former Member · Accepted solution]

Dear Senthil and Animesh,

Any update for this issue plse.

[Former Member · Accepted solution]

HI

I am not saying u can use strategy 40. I am saying that once your decide to make material YYYY, the question arises is if you want to have final material as GR valuated or not. In MTO it is generally GR non vlauted. So you will have to create new strategy to make this possbile.

I am not sure how will variant config work here. So senthil would be better person to select the BOM for this material.

[Former Member · Accepted solution]

Dear Animesh,

As my customer required that the add on materials should be mentioned in sale order, so MRP provide the Planned order in which the the BOM should have the selected add on components.

So other than variant config, any way to achieve this to get the list of components to be added from sale order to production order

Kindly clarify plse...

Dear Senthil, could you guide me to use variant for my case.

Thanks,

Bakyraj V

[Former Member · Accepted solution]

Hi Bakyaraj,

Thanks for the details.

a. xxx matl for basic model with std bom and routing - It follow production based on forcase (MTS) planning stategy 40 will be used. If any sale order is raised, the produced FG will be sold

• Please consider using a Combined strategy (40+70) for the Standard product, to allow the PIR to get consumed by both the incoming Sales order and also the Reservations from the Production order for the new version. Refer to the following link
• http://help.sap.com/saphelp_40b/helpdata/en/d5/9d515fa11e11d191930000e8a5f6e6/content.htm

b. yyy matl for the add on required in sale order. This will have super bom and routing include XXX ( Basic model). The sale order is raised for yyy material, so sales person can select the variant. component and the basic model. But how to mention the removal components here . Planning strategy 25.

Is the above said process is correct. can you suggest

• Just to remind the earlier advise - the VC process needs significant efforts on setting up, and also maintaining.
• You can use the Object dependencies to manage the selection of the component and also changing the quantity based on the Sales order configuration (char-values chosen).
• Please search documentation. Ref to links below -
• http://help.sap.com/saphelp_erp60_sp/helpdata/en/9b/0664403899970ae10000000a155106/content.htm
• http://help.sap.com/saphelp_erp60_sp/helpdata/en/92/58c228417011d189ec0000e81ddfac/content.htm
• http://help.sap.com/saphelp_46c/helpdata/en/39/0ee2e6c7d411d190580000e8a49aad/content.htm

2. I donot work on the Variant configuration. Can u guide me to implement and create Masters - super bom and PV.

• Please search documentation. Ref to links below -
• http://scn.sap.com/docs/DOC-25224
• http://help.sap.com/printdocu/core/Print46c/en/data/pdf/LOVC/LOVC.pdf
• http://www.slideshare.net/arun_bala1/variant-configuration-overview

If you believe that the original requirements from the post is fulfilled, kindly close the thread.

If you have specific questions/issues, you can raise new post to the forum

There is also a dedicated forum for SAP VC.

Regards,

Senthil

[Former Member · Accepted solution]

Dear Senthil and all,

Finally confused.....after discuss with users.

Could you suggest me do to my scenario in best way in sap with planning strategy.

1. Forecast plan  and production for basic model

2. Sale order will come. based on time availble for delivery, the below scenario is applicable

a. Production by take the base model and do add addon and remove some components

b. do final assembly based on addon selected for FG and basic sub assembly which are already processed.

c. Do start production from initial.

The add on are choosed in sale order, how we can get information for production ( with Variant or without variant possiblity) to do cover the above all 3 scenario

How can i handle using object dependcies.

Thanks,

Raj V

[Former Member · Accepted solution]

Dear Senthil and all,

Finally confused.....after discuss with users.

Could you suggest me do to my scenario in best way in sap with planning strategy.

1. Forecast plan  and production for basic model

2. Sale order will come. based on time availble for delivery, the below scenario is applicable

a. Production by take the base model and do add addon and remove some components

b. do final assembly based on addon selected for FG and basic sub assembly which are already processed.

c. Do start production from initial.

The add on are choosed in sale order, how we can get information for production ( with Variant or without variant possiblity) to do cover the above all 3 scenario

How can i handle using object dependcies.

Thanks,

Raj V

[sjeevan · Accepted solution]

1. Forecast plan  and production for basic model

You never mentioned how you want get your forecast plan. Normally forecast based planning is for CBP (consumption based planning) materials which are normally raw materials for external procurement. For finished product you use planned independent requirements and data can come from external planner like APO or User market experience or other system.

 a. Production by take the base model and do add addon and remove some components

You never mentioned, what is pattern of add-on or removal of components, is it random every time, meaning you can add any component from your SAP system e.g. the quantity by weight in composition of main ingredient in a shampoo can be anywhere between 50gms to 65gm per every 100gms of finished product (or) does it follow a pattern by that i mean any restrictions, e.g. if you make a car you only let the customer choose between engine capacities of 2.4 liter gasoline engine or 3.2 liter gasoline engine. If your business is the later then you need to go with variant configuration.

[Former Member · Accepted solution]

Dear Jeevan,

1. Forecast based Planning for the Final product. i can use SOP

2. Both the cases are applicable in my case.....But there is defned add on. Here the addon is optional. but the standard products are choosable and should be.

As explained in last comment ... how to map this 3 scenarios in MTO and 1 in MTS.

(

1. Forecast plan  and production for basic model

2. Sale order will come. based on time availble for delivery, the below scenario is applicable

a. Production by take the base model and do add addon and remove some components

b. do final assembly based on addon selected for FG and basic sub assembly which are already processed.

c. Do start production from initial.)

How we can use variant for the FG where MTS also happening

What is the best combination of planning stategy is good to cover both MTS and MTO(considering variant)

[sjeevan · Accepted solution]

How we can use variant for the FG where MTS also happening 
What is the best combination of planning stategy is good to cover both MTS and MTO(considering variant)

I'm assuming that all (or almost all) the possible variations of add-ons and removable components are maintained in BOM of FG and you want to use variant configuration. You need to maintain all the object dependencies, for example when the user selects characteristic value L24 in sales order or material variant the part number 5000102 (2.4 liter gasoline engine) is exploded and spark plug type A (part no. 5000304) are not exploded  to production order, remember they are all present in BOM just based on the configuration they are either exploded (add-on) to the production order or not exploded (removed ) .

Of course later on you can add some low value components directly to the production order which does not affect the cost much.

If you want to plan for the base FG it's better use a separate material variant (separate material number)

You can use one KMAT type FG for your requirement both for MTS and MTO. All  you have to do is add the FG to itself as a material variant. There was discussion recently regarding this matter click here.

Do a testing of the cycle in your IDES or test system and come back.