Technical Articles
Discrete Vs repetitive Vs Process Industry in SAP PP
Discrete Vs repetitive Vs Process Industry in SAP PP
Hi SAP Folks, Good Day! This document is regarding various Manufacturing Process in SAP PP .
Along with the technical differences within all process.
Based on different nature of products and complexity, there are 3 types of manufacturing process followed in SAP PP:
- Discrete Industry
- Process Industry
- Repetitive Industry
There are 2 methods of manufacturing in SAP PP:
- Make to stock ( MTS )
- Make to order ( MTO )
Discrete Industry Manufacturing Process
In discrete scenario, the manufacturing process is based on production orders. Discrete manufacturing is characterized by requirements that occur on an irregular basis and a workshop-oriented process. Basically the demand and supply varies time to time in this scenario.
Discrete manufacturing forms an industry type where in the products which are manufactured can be easily assembled and dis-assembled. They can be reworked upon easily to a large extent. You can say making pumps, engines, cars, airplanes.
Facts in Discrete Process:
- Production based on the production orders
- Planning and manufacturing depends on production orders.
- Products change frequently.
- Production is carried out on different production lines (scattered- discrete).
- Product costing and settlement is done through production orders.
- Planned orders are stock type later converted into production orders.
- Production orders are required.
- Materials will be issued always with reference to production orders.
- Master Data includes work center , Production version , Routing and BOMs.
Industry Type: Mechanical engineering, Consumer goods, electronics, and many more
Process Industry Manufacturing Process
The component Production Planning for Process Industries (PP-PI) provides an integrated planning tool for batch-oriented process manufacturing.It is primarily designed for the chemical, pharmaceutical, food and beverage industries as well as the batch-oriented electronics industry.
Facts in Process Industry:
- Batch oriented process manufacturing.
- Process order based manufacturing. You copy the process described in a master recipe and adjust it to the actual production run.
- It is primarily designed for the chemical, pharmaceutical, food and beverage industries as well as the batch-oriented electronics industry.
- The integrated planning of production, waste disposal, and transport activities within a plant.
- Master Data includes Master Recipes and resources.
- Process Management: In this area, you coordinate the communication between PP-PI and process control during the execution of a process order.
Process Manufacturing can be used in Continuous production, discontinuous production, Regulated production as well as Process-oriented filling
Industry Type: Chemical, Pharma, Poultry, Dairy and many more.
Steps in Discrete / Process Industry with MTS / MTO Scenario:
| Discrete / Process with MTS scenario | Discrete / process with MTO scenario |
| Create Planned independent requirements – MD61 | Create Customer Independent Requirement / Sales Order – MD81 / VA01 |
| Check the Demand management – MD04 | Check the Demand management – MD04 |
| Run MRP – MD01N | Run MRP – MD01N |
| Convert planned orders to Production orders or create production order manually – MD04 / CO01 | Convert planned orders to Production orders or create production order manually – MD04 / COR1 |
| Release Production order – CO02 | Release Production order – COR2 |
| Goods Issue to Production order – MIGO | Goods Issue to Production order – MIGO |
| Confirmation of production order – CO11N | Confirmation of production order – COR6N |
| Goods Receipt against Production order – MIGO | Goods Receipt against Production order – MIGO |
| Teco of Production order – CO02 | Teco of Production order – COR2 |
| Overhead calculation – KGI2 | Overhead calculation – KGI2 |
| WIP calculation – KKAO / KKAX | WIP calculation – KKAO / KKAX |
| Variance calculation – KKS1 / KKS2 | Variance calculation – KKS1 / KKS2 |
| Settlement of Production order – KO88 / CO88 | Settlement of Production order – KO88 / CO88 |
| Close Production order – CO02 | Close Production order – COR2 |
Repetitive manufacturing Process
Company manufactures product in large numbers and production is quantity based and period based not order based.You can use repetitive manufacturing as either make-to-stock REM or make-to-order REM such as in the automotive industry.
Repetitive manufacturing form an industry type where in the products manufactured can be discrete manufactured or process industry type, produced repetitively or continuously in production lines. This forms the continuous production scenario.
Facts in Repetitive Manufacturing:
- Production is based on the planned orders.
- Planning and manufacturing is based on period wise.
- Normally single products being manufactured for a longer period of time.
- Normally production are carried out on a single production line (repetitively).
- Product costing and settlement is done through product cost collector.
- Planned orders are known as Run schedule quantities. Means quantity which is being manufactured in a certain period.
- Planned orders are sufficient to carry out production at shop floor area.
- Master data includes production version, product cost collector and rate routing.
- Materials will be issued anonymously to production lines means without reference to planned orders.
- Creation and revision of production quantities on a period and quantity basis (reduction in individual lot and order-specific processing).
- Reduction in the production control effort and simpler back flushing (with the option of using the full scope of the PP functionality).
- Repetitive manufacturing is mainly used for the production scenarios with high product stability, high repetition rates, and low product complexity.
Industry Type: Mechanical engineering, Consumer goods, electronics, and many more
Process steps in REM
- Create necessary Material master, BOM, Rate Routing, Production version, Product cost collector.
- Then do standard costing run for all materials and release – CK11N / CK40N and preliminary costing run for product cost collectors – MF30 / KKF6N
- Create demand or PIR – MD61 or create demand forecast in planning table – MF50
- After run the MRP with help of the MD01N for finished material , MRP element is RS and order type is PE or From planning table we can directly create planned orders
- Check stock Requirement analysis – MD04
- Backflush through planned order or finished material – MFBF
- Planned Orders and RS quantities will be reduced as per period set in REM Profile
Differences between Discrete, Process and repetitive Process
Process point of view:
| Discrete Process | Process Industry | Repetitive Industry |
| Discrete manufacturing forms an industry type where in the products which are manufactured can be easily assembled and dis-assembled. They can be reworked upon easily to a large extent. Eg: making pumps, engines, cars, airplanes. | Process manufacturing forms an industry type where in the products which are manufactured cannot be easily assembled and dis-assembled. It is impossible to be reworked upon these products. Eg: making chemicals, medicine, Paper, Steel etc. |
You produce the same or similar products over a lengthy period of time. You do not manufacture in individually defined lots. Instead, a total quantity is produced over a certain period at a certain rate per part-period. Your products always follow the same sequence through the machines and work centers in production. Routing tend to be simple and do not vary much. |
| Used in both MTS and MTO scenarios | Used in both MTS and MTO scenarios | Used in both MTS and MTO scenarios |
| Order based Production ( Production in individual Production order ) | Order based Production ( Production in individual Process order ) | Period based Production ( with certain Quantities per period) – Lean Manufacturing |
| Product change frequently | Product change frequently | Steady flow without much changes |
| Semi-finished Products often put in interim storage | Semi-finished Products often put in interim storage | Semi-finished Products often directly processed in to interim storage |
| Dependent components staged with respect to Production orders | Dependent components staged with respect to Process Orders | Components staged with respect to Production versions in lines periodically |
| Backflush possible | Backflush possible | Period based Backflush |
| Order based cost controlling – Main cost object is production order | Order based cost controlling- Main cost object is process order | Period based cost controlling – Main cost object is Material |
Technical point of view:
| Discrete Process | Process Industry | Repetitive Industry |
| PRT availability check – Yes | PRT availability check – No | PRT availability check – Yes |
| Order splitting – yes | Order splitting – No | NA |
| Trigger point – Yes | Trigger point – No | NA |
| Order Approval process – No | Order Approval process – yes | NA |
| Process management – No | Process management – yes | NA |
| Digital signature – No | Digital signature – Yes | NA |
| Material Quantity calculation – No | Material Quantity calculation – Yes | NA |
| Active Ingredient – No | Active Ingredient – Yes | Active Ingredient – No |
| Change-over from one product to another – frequent | Change-over from one product to another – frequent | Change-over from one product to another – No |
| Order-related production | Order-related production | Order-related production – No ( it’s based on planned orders) |
Master data point of view:
| Discrete Process | Process Process | Repetitive Process |
|
Master data used : material master BOM WorkCentre Routing Production version PRT
|
Master Data Used: Material master BOM Resources Master recipe Production version PRT – Not available
|
Master Data Used : Material master BOM Production line Rate Routing PRT Production version Product cost collector REM Profile Line Hierarchy |
Operations that can be automated in SAP Manufacturing Process
| Operations which can be automated | Pre-requisites | Control data |
| Print Order | Release Production / Process Order | Production scheduling Profile |
| WM Transfer order | Release Production / Process Order | Production scheduling Profile |
| Post Goods Issue / Backflush | confirmation |
Material master Work center Routing BOM
|
| Confirm Operations |
Milestone PDC entry MES or third party systems |
Operation control key PDC interfaces Idocs from MES or Third party systems |
| Post Goods Receipt | confirmation |
Production scheduling profile Operation control key |
| Rework order / special Instructions / work flows | Status confirmation | Trigger points |
Scheduling methods in Discrete, Process and Repetitive Industry
Scheduling methods in Discrete and Process Industry:
1) Basic dates scheduling
2) Lead time scheduling
Scheduling methods in Repetitive manufacturing:
1) Detailed Planning
2) Sequencing / Takt based scheduling
Different MRP techniques used in SAP PP:
Manual reorder point planning
Automatic reorder point planning
Forecast-based planning
Material requirements planning with forecasts for unplanned consumption
Master production scheduling (MPS)
Demand-driven replenishment
Conclusion : Based on the above parameters we can differentiate all the above mentioned manufacturing processes.
Reference taken from : Help sap , SAP Library.
thanks for your feedback.
Regards
Subhrant
Thanks Subrant, that is one of the best overview/comparisons for this topic, I´ve seen so far. 🙂
Thanks Alexandra Gummels
Thanks Subrant - Good Explanation, Great Document
Thanks SURESH NAIDU MAHAREDDY
Thank you, Subhrant Kumar bal. Very useful information.
Thanks Maya Todorova
Best blog on Manufacturing !
Thanks Nitin
This is what I was looking for for manufacturing study
Thanks Kamal Uddin
It's amazing how you covered almost every aspect one needs to know about manufacturing types and it's also reader-friendly. Thank you for this.
Thanks Ahsan Misbah
Hello, just to confirm, an slaugherhouse should be implementing PP as a process driven manufacturing type, right?
Hi Eliana ,
That might be mapped with catch weight management and batch specific unit of measure .
Thanks Subhrant,
Best summary I've come across on this topic!
Thanks Gilbert
Thank you very much for writing and sharing the Blog on complete overview of different Manufacturing types, relevant significances in general and SAP wise too.
Thanks Govindaraju
This is one of the best document and overview/comparisons for this topic
Thanks Uday
Very good document which I was looking for. Appreciate author efforts
Thanks Prashant
Very help document, Thanks for sharing
Thanks a lot for detailed description.
Very helpful document indeed ! But I have a comment to make: why is Active Ingredient Management marked only to function with PP-PI ? I think it does not have to do with selected production process as such, but it has to do with batch management (batch specific Unit of Measure) and typically QM integration (you measure the batch specific Unit of Measure characteristics coupled with master inspection characteristics value by means of QM). I f.ex have used Active Ingredient Management - (with Production Unit) f.ex for Pulp Industy with even Repetitive Manufacturing process.
Camilla you are right about the batch specific UoM value.
However using active ingredients in Material Quantity Calculation works in PP-PI only.
Very well explained from Production Process, Industries, Technical aspect, Master data, simplicity etc.
Hi, thank you for nice document.
One comment to add: if you mean with process management the Process Instructions, this is possible to maintain also for discrete production orders - it is called Control Instructions or commonly named as XSteps and available since EhP 3.