Make to Order strategies – Strategy 20
Strategy 20 – Pure make to order is one of the strategies of Make to Order in Demand Management..In this 20 strategy product is specifically manufactured for a sale order or customer order…There is no forecasting involved. Sale order or customer order will be the trigger point for production…
This strategy is useful or applied in the following situations in the industries..
1. Product is very slow moving product in the market…
2. You cannot anticipate the future forecast of the product
3. Product is newly launched in the market
4. Product is very costly product and you can not keep the inventory or stock in the plant…
The sales order quantities are planned for production using the sales order number. The quantities produced for the individual sales orders cannot be changed. Each quantity is maintained specifically for the individual sales order. A separate segment is created in the MRP list or Stock req. list (MD04) for make-to-order production.
Process flow of Strategy 20:
1. Creation of sale order – VA01
2. MRP run – MD01/MD02
3. Planned order conversion to production order – MD04
4. Production Execution – CO02, MB1A, CO15, MB31
5. Sale order stock in plant- MD04
6. Delivery of the stock to customer against the sale order – VL01N
Settings Required for Make to order strategy 20 :
Maintain planning strategy 20 in the material master in MRP 3 view in as shown below….
Detailed Process flow…
Initial situation of material with 299.5 KG unrestricted use stock..this stock is kept make the understanding of difference between unrestricted stock and sale order stock…
Now create sale order for the product with VA01
Now save the order…
Now check in MD04…
Now create one more sale order for qty 200 same as above with VA01…after the creation of second sale order situation in MD04…
Now check in MD04..You can observe that two separate planned orders are created for each sale order…even though there is a stock of 299.5 KG it is not considered in the net requirement calculation..
Now convert the first planned order to production order and then release
here you can observe the sales order reference in the production order as shown below….
Now release the order and save the order…after this situation in MD04…
Now after the completion of production activity complete the Goods issue, Confirmation and Goods receipt of the two production orders….
Now you will sales order stocks as shown below in the MD04…these stocks are not unrestricted use stocks like 299.5 KG
Now make the delivery of the first sale order
Now complete Post goods issue…
Now complete the delivery for the second sale order also with VL01N as per the procedure shown above….
Now final situation of MD04….