Production Planning (Process Manufacturing)

The area Production Planning (Process Manufacturing) contains the following business processes:

Production Planning (Process Manufacturing) MTS in ERP

• [page 47]

Production Planning (Process Manufacturing) MTO in ERP

• [page 48]

Production Planning (Process Manufacturing) MTS in SCM

• [page 49]

Production Planning (Process Manufacturing) MTO in SCM

• [page 49]

3.6.1.1 Production Planning (Process Manufacturing) MTS in ERP

Overview

You can use this business process to carry out make-to-stock production in SAP ECC. Make-to-stock production is carried out without reference to a sales order.

This business process is used in process industries. This includes the chemical and

pharmaceutical industries, food and beverage industry, and the process-oriented electronics industry.

You can use the order to plan material requirements across all BOM levels, based on the customer requirements for the finished products and components. These orders represent receipt elements for in-house production and external procurement.

This business process includes analysis, planning according to MRP logic, and evaluation of the planning results. Extensive planning steps, such as material requirements planning, usually run in the background, although they can also be planned manually.

3 Business Processes of mySAP SCM 3.6.1 Production Planning (Process Manufacturing)

Technical System Landscape

The following software components are either mandatory or optional, as indicated below, for the technical implementation of this process.

The following table provides just one way to implement the business process. For other combinations, see service.sap.com/scl.

Component Mandatory Optional

SAP ERP 2005 – ECC Server X

For more information about the installation of these components, see Technical Landscapes for mySAP SCM [page 15].

3.6.1.2 Production Planning (Process Manufacturing) MTO in ERP

Overview

You can use this business process to carry out make-to-order production in SAP ECC.

Make-to-order production is carried out with reference to a sales order, that is, the items in a manufacturing order are only manufactured for a certain customer.

This business process is used in process industries. This includes the chemical and

pharmaceutical industries, food and beverage industry, and the process-oriented electronics industry.

You can use the order to plan material requirements across all BOM levels, based on the customer requirements for the finished products and components. These orders represent receipt elements for in-house production and external procurement.

This business process includes analysis, planning according to MRP logic, and evaluation of the planning results. Extensive planning steps, such as material requirements planning, usually run in the background, although they can also be planned manually.

Technical System Landscape

The following software components are either mandatory or optional, as indicated below, for the technical implementation of this process.

The following table provides just one way to implement the business process. For other combinations, see service.sap.com/scl.

Component Mandatory Optional

SAP ERP 2005 – ECC Server X

For more information about the installation of these components, see Technical Landscapes for mySAP SCM [page 15].

3 Business Processes of mySAP SCM 3.6.1 Production Planning (Process Manufacturing)

3.6.1.3 Production Planning (Process Manufacturing) MTS in SCM

Overview

You can use this business process to carry out make-to-stock production in SAP SCM. Make-to-stock production is carried out without reference to a sales order.

This business process is used in process industries. This includes the chemical and

pharmaceutical industries, food and beverage industry, and the process-oriented electronics industry.

The requirement quantities for the finished products are determined in demand planning.

Incoming sales orders are delivered from the warehouse.

You can use the order to plan material requirements across all BOM levels, based on the requirements for the finished products and components from the forecast and demand plan, or when the threshold value for the available stock falls short (reorder point). These orders represent receipt elements for in-house production and external procurement.

In process industries, make-to-stock production is frequently used at the bulk ware level (unpackaged goods), whereas finished products are normally manufactured with make-to-order production.

This business process includes analysis, planning according to MRP logic, and evaluation of the planning results. It is normally carried out in Production Planning and Detailed Scheduling (PP/DS) in SAP SCM. Extensive planning steps, such as material planning (MRP), normally run in the background, in the production planning run; although they can also be carried out manually.

Technical System Landscape

The following software components are either mandatory or optional, as indicated below, for the technical implementation of this process.

The following table provides just one way to implement the business process. For other combinations, see service.sap.com/scl.

Component Mandatory Optional

SAP SCM 5.0 – SCM Server X

SAP SCM 5.0 – SAP liveCache X

SAP ERP 2005 – ECC Server X

For more information about the installation of these components, see Technical Landscapes for mySAP SCM [page 15].

3.6.1.4 Production Planning (Process Manufacturing) MTO in SCM

Overview

You can use this business process to carry out make-to-order production in SAP SCM.

Make-to-order production is carried out with reference to a sales order, that is, the items in a manufacturing order are only manufactured for a certain customer.

3 Business Processes of mySAP SCM 3.6.2 Production Planning (Discrete Manufacturing)

This business process is used in process industries. This includes the chemical and

pharmaceutical industries, food and beverage industry, and the process-oriented electronics industry.

You can use the order to plan material requirements across all BOM levels, based on the customer requirements for the finished products and components. These orders represent receipt elements for in-house production and external procurement.

In the process industry, make-to-order production is frequently used for finished products only (such as packaged goods), while raw materials and unpackaged goods (bulk ware) are often produced with make-to-stock production. After the sales order has been received, the bulk ware is packaged for the customer. In some cases, the bulk ware is packaged using customer-specific packing materials.

This business process includes analysis, planning according to MRP logic, and evaluation of the planning results. It is normally carried out in Production Planning and Detailed Scheduling (PP/DS) in SAP SCM. Extensive planning steps, such as product planning (MRP), normally run in the background in the production planning run; although they can also be carried out manually.

Technical System Landscape

The following software components are either mandatory or optional, as indicated below, for the technical implementation of this process.

The following table provides just one way to implement the business process. For other combinations, see service.sap.com/scl.

Component Mandatory Optional

SAP SCM 5.0 – SCM Server X

SAP SCM 5.0 – SAP liveCache X

SAP ERP 2005 – ECC Server X

For more information about the installation of these components, see Technical Landscapes for mySAP SCM [page 15].

3.6.2 Production Planning (Discrete