SAP SD and PP Integration: Make-to-Order Scenarios

Make-to-Order (MTO) scenarios in SAP involve integrating the Sales and Distribution (SD) module with the Production Planning (PP) module. In these scenarios, a product is manufactured only after a customer places an order, ensuring customized production and efficient use of resources.

Understanding Make-to-Order Scenarios

In a Make-to-Order process, the customer's specific requirements drive the production process. The integration of SAP SD and PP ensures seamless communication between sales order creation and production planning, enabling businesses to meet customer needs efficiently.

Step-by-Step Guide to Implementing Make-to-Order Scenarios

Step 1: Configure Requirement Class and Requirement Type

  1. Navigate to the SAP Customizing Implementation Guide using transaction SPRO.
  2. Go to Production > Material Requirements Planning (MRP) > Planning > Define Requirement Classes.
  3. Create or modify a requirement class for MTO. Assign the following:
    • Relevant item category (e.g., "TAN" for sales orders).
    • Strategy Group (e.g., "20" for Make-to-Order).
  4. Link the requirement class to a requirement type in Define Requirement Types.

Step 2: Assign Requirement Types to Planning Strategies

  1. Go to Production > Material Requirements Planning > Planning Strategies.
  2. Assign the requirement type to the appropriate planning strategy (e.g., "20" for Make-to-Order).
  3. Ensure that the planning strategy supports the sales order-driven production process.

Step 3: Configure Item Category in Sales Document

  1. Go to Sales and Distribution > Sales > Sales Documents > Define Item Categories.
  2. Ensure the item category (e.g., "TAN") allows for Make-to-Order processing by:
    • Activating the "Special Stock" indicator.
    • Linking it to the requirement class.

Step 4: Create a Sales Order

  1. Use transaction VA01 to create a sales order.
  2. Enter the customer, material, quantity, and delivery date.
  3. Verify that the system assigns the appropriate requirement type and planning strategy to the sales order item.

Step 5: Generate Planned Orders in PP

  1. Use transaction MD50 (Run MRP for sales orders) to plan the material requirements for the sales order.
  2. The system will create a planned order for the production of the specific material linked to the sales order.

Step 6: Convert Planned Order to Production Order

  1. Use transaction MD04 to review the planned order created for the sales order.
  2. Convert the planned order into a production order using transaction CO40.
  3. Release and process the production order for manufacturing.

Step 7: Delivery and Billing

  1. Once production is completed, create the delivery document using transaction VL01N.
  2. Post the goods issue and complete the billing process using transaction VF01.

Real-World Example

Consider a scenario where a customer places an order for a custom-configured machine:

  • The sales order specifies unique attributes such as dimensions, materials, and performance parameters.
  • The system generates a planned order for production based on the sales order.
  • Production is carried out as per the planned order, and the finished product is delivered to the customer.

Benefits of MTO Scenarios

  • Reduces inventory costs by manufacturing only on demand.
  • Enhances customer satisfaction by delivering customized products.
  • Improves collaboration between sales and production teams.

Conclusion

Make-to-Order scenarios in SAP SD and PP integration enable organizations to produce goods based on specific customer requirements. By configuring the system correctly and following the outlined steps, businesses can achieve seamless integration between sales and production processes, ensuring efficient operations and satisfied customers.




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