Key considerations while moving from Discrete to Repetitive Manufacturing

Key considerations while moving from Discrete to Repetitive Manufacturing

Going for Discrete or Repetitive Manufacturing is a key business decision which company has to take before implementing SAP. This decision is based on various factors like:

• Made to Stock vs. Made to Order scenario
• Work Order Driven vs. Schedule Driven
• Long vs. Short Work in progress lead time
• Order based vs. Period based cost controlling
• Order vs. Period based back flush

In case organization decides to move from Discrete to Repetitive Manufacturing post SAP implementation due to various business reasons following key changes are required to be done at system level in order to achieve so.

1. Master Data changes:
   1. Bill of Material
      – No changes required at BOM level
   2. Work Center (T-Code: CR01)
   3. Movement from Routing to Rate Routing
      (T-Code: CA21)
   4. Introduction of Production Versions (T-Code: C223)
   5. Introduction of REM Indicator (This is maintained in Material Master| MRP 4 view)
   6. Introduction of REM profile (This is a configuration)
   7. Introduction of Product Cost Collector (T-Code: KKF6N)

2. Production Confirmation process changes:

1. Create and Confirm production order (CO01, CO11N, CO15 etc.) to Production Confirmation (MFBF, MF42N)
2. Post processing error records (CO16N, COGI to MF47)

3. Reporting

1. From COOIS to custom report (Shift report)

Prerequisites:

1. Ensure that no post processing records exist in t-code COGI.
2. Settle and close all the open production orders using CO88.
3. Delete all the existing planned orders.

Recommendation:

Whenever planning to move from Discrete to Repetitive Manufacturing it is advisable to start with new financial year. This may lead to elimination of financial reporting errors.