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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.

https://help.sap.com/viewer/9fbed5ee4a6745ed90e67716f93e3205/1809.002/en-US/3adbf75305610114e10000000a174cb4.html

https://help.sap.com/viewer/8308e6d301d54584a33cd04a9861bc52/1809.001/en-US/97ac0a14e77544598a1c924e1bee4146.html?q=manufacturing

thanks for your feedback.

Regards

Subhrant

 

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