Make-to-Order Production w/o Variant Configuration SAP Best Practices

Make-to-Order Production w/o Variant Configuration

SAP Best Practices

© 2011 SAP AG. All rights reserved. 2

Purpose, Benefits, and Key Process Steps

Purpose The business process encompasses all steps from the customer quotation to the delivery and billing of the finished good

and all dependent components in make-to-order production (MTO). Furthermore, the scenario is supported by the main cost object controlling functions required, such as preliminary costing

and period-end closing.

Benefits Quotation history Billing plan including down payment Change management in production

Key Process Steps Creation of the quotation header Creation of follow on quotation with reference to first quotation Customer’s request to change the quotation Create sales order with reference to accepted follow on quotation Customers credit limit is checked Order confirmation is sent to the customer and the production process is started Milestone Billing – down payment after order confirmation Customer requests a technical change Sales order and bill of material are recalculated Delivery and billing of the finished good


Required SAP Applications and Company Roles

Required SAP Applications Enhancement package 5 for SAP ERP 6.0

Company Roles Engineering Specialist Production Planner Sales Administrator Billing Administrator Accounts Receivable Accountant Production Supervisor Warehouse Clerk Shop Floor Specialist Product Cost Controller


Detailed Process Description

Make-to-Order Production w/o Variant Configuration This scenario describes the entire process sequence for a standard sales process (Make-

to-Order) with a customer. The business process encompasses all steps from the customer quotation to the clearing of a customer account after payment is received.

Quotation processing is the first stage of the production process. The scenario starts with an incoming request for quotation. A quotation is then created in the SAP system in response to the customer's RFQ. The customer requests a change to the quotation and a follow-on quotation is created. Finally, the customer accepts the second quotation and a referenced sales order is created. An order confirmation is send to the customer and production process is started. Now, the customer requests a technical change. Sales order and bill of material are therefore recalculated. The process ends with the delivery and the billing of the produced goods.

The process can be enhanced individually by executing optional steps, like serial number creation, subcontracting, QM in production, credit management and plant- and company closing.


Process Flow DiagramMake-to-Order Production w/o Variant Configuration: Quotation Processing MTO

Sa

les

Ad

min

istr

ato

rE

ve

nt

Quotation accepted

?

Plan Forecast

for Finished

Good (144)

Quotation Processing

MTO

Request for MTO

Quotation

Reject First

Quotation

Print Order Confirmation

MTO = Make-to-Order; DMS = Document Management System

Create, Print and Send

Sales Quotation to

Customer

Optional: Use Easy DMS to

Assign Customer

Specification to Quotation

Create Follow-On Quotation and Send to Customer

Yes

No


Process Flow DiagramMake-to-Order Production w/o Variant Configuration: Parts Production for Subassembly

Sal

es

Ad

min

istr

ato

r

Bill

ing

A

dm

inis

trat

or

Pro

du

ctio

n

Pla

nn

erE

ven

tA

cco

un

ts

Rec

eiva

ble

A

cco

un

tan

t

Procurement of

Components Using

Purchasing Processing

(130)

Create Sales Order with Reference to

Follow-on Quotation and Print Order

Confirmation

Need of Raw Material for

Subassembly

Credit Issues Have to be

Solved (108)

Create Invoice, Print Down Payment

Request and Send to Customer

Post Customer Down Payment

Evaluate Stock Requirements

Situation


Process Flow DiagramMake-to-Order Production w/o Variant Configuration: Parts Production for Subassembly; Technical Change for Finished Good, Procurement of Stock for Final Assembly

Pro

du

cti

on

P

lan

ner

Sal

es

A

dm

ini

s-

trat

ion

Eve

nt

Planned Order Has to be Converted to Production Order

Man

u-

fact

uri

ng

Create Production

Order (Subassembly)

Confirm Production

Order

Evaluate Stock /

Requirements Situation after

Technical Change

Customer Change

Request is Considered

Post Goods Receipt

manually

Request for Technical Change

(Finished Good)

Pro

du

ct

Co

st

Co

ntr

oll

er

Bu

yer Procurement of

Stock Material w/o QM

(130)

Procurement of Stock Material with QM (127)

Procurement & Consumption of Consigned

Inventory (139)

MM Subcontracting

(138)

Repetitive Manufacturing

(149)

Procurement of Components Using

Purchasing Processing

Material Staging

Release Production

Orders

Recalculate Customer

BOM

Change Order, Print Order

Confirmation and Send to Customer

(after Adding Material)

En

gin

eeri

ng

S

pec

iali

st

Sh

op

F

loo

r S

pec

iali

st

Pro

du

cti

on

S

up

ervi

so

r Review Order Confirmations


Process Flow DiagramMake-to-Order Production w/o Variant Configuration: Final Assembly; Delivery Processing; Billing Processing

Pro

du

ctio

n

Pla

nn

er

Acc

ou

nt

s

Rec

eiv

ab

le A

cc

.

Eve

nt Planned Order

Has to be Converted to Production

Order

Ma

nu

fact

uri

ng

Convert Planned Order to Production

Order

Release Production

Orders

Optional: Checking

Serial Numbers in Production

Order

Bill

ing

A

dm

insi

tr.

Post Goods Receipt for Production

Order with Serial Number

Assignment

Evaluate Stock /

Requirements Situation

Confirm Assembly Activities

Sal

es

A

dm

inis

tra

to

r

Sh

op

Flo

or

Sp

ec

iali

st

Optional: Printing Shop Floor Papers

Pick Components (Picking List)

Issue Goods

Manually Instead of

Picking List

Material Staging

for Assembly

Sales Order

Processing: Sales

from Stock (109)

Delete Billing Blocks

Create Invoice, Print Payment Request and

Send to Customer

Post Milestone Invoice

Create Invoice, Print Closing

Payment Request and

Send to Customer

Post Closing Invoice End Process


Legend

Symbol Description Usage Comments

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document: Identifies a printed document, report, or form

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Financial Actuals: Indicates a financial posting document


Budget Planning: Indicates a budget planning document


Manual Process: Covers a task that is manually done

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.

Existing Version / Data: This block covers data that feeds in from an external process

Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.

Ext

erna

l to

SA

P

Business Activity / Event

Unit Process

Process Reference

Sub-Process

Reference

Process Decision

Diagram Connection

Hardcopy / Document

Financial Actuals

Budget Planning

Manual Process

Existing Version /

Data

System Pass/Fail Decision

Symbol Description Usage Comments

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.

The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.

Role band contains tasks common to that role.

External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario.Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.

Connects two tasks in a scenario process or a non-step event

Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Does not correspond to a task step in the document

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Process Reference: If the scenario references another scenario in total, put the scenario number and name here.


Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here


Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

<F

unct

ion>


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.

IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.

Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.

Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.

Oracle is a registered trademark of Oracle Corporation.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.

Java is a registered trademark of Sun Microsystems, Inc.

JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

© 2011 SAP AG. All rights reserved

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.

Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG.

This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice.

SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.

SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence.

The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.

Documents

Make-to-Order Production w/o Variant Configuration SAP Best Practices