Sales Order Processing with Engineer-to-Order Production
In this example, the sales order processing for complex products in the engineer-to-order production, such as a turbine, is presented. This is an example of a process, the elements of which are combined with elements from other processes.
As a manufacturer of turbines you produce your products for large, capital-intensive projects. Since you specially tailor each turbine to the requirements of your customers, each sales order involves you spending a great deal of time on design and development.
You canpre- plan one part of your assembly. In your SAP system, you have created material BOMs for all of the assemblies that you produce in either an identical or slightly modified form.
For each sales order, you modify pre-planned assemblies and, when necessary, design new assemblies from scratch. The design takes place in a bottom-up-process, in other words you design assemblies on the lower levels of a multi-level BOM and later insert them into the higher levels.
Design and production take place partlyparallel to each other: Some assemblies have a long replenishment lead-time . You start the production of these assemblies at a time when you are still designing other assemblies.
You have created a material BOM for your T-20000 turbine, which contains, among other things, the following components:
Control unit (rack)
Some of these components are themselves assemblies.
In the course of the sales meeting yourealize that the T-20000 turbine, for which you have already created a material BOM, is the closest match to the requirements of the customer. However , sales-order-specific modifications are necessary for several assemblies.
Furthermore, the customer requires an extra coolant pump due to the climatic conditions at the usage site. Due to the high density of sand and dust particles at the usage site, the casing of the coolant pump has to be especially protected to avoid the penetration of such particles.
Until now, you have not produced a coolant pump that matches these criteria. Therefore, you also do not have a material BOM for it. You have to design this coolant pump especially for this customer.
In the sales order item 10 you enter the material T-20000.
You create a network. You maintain the reference points in the network operations.
The system then creates order BOMs as copies of material BOMs. You carry out the necessary changes to these order BOMs so that the product matches the customer requirements. The changes that you make to an order BOM do not affect the material BOM with the same material number.
You see a
See also:Assemblies with a Long Replenishment Lead Time
If you trigger a multi-level BOM transfer for the T-20000 turbine, the coolant pump P-110 is not transferred with it because it has no relation to the header material for the T-20000 multi-level BOM. Therefore you have to trigger a BOM transfer especially for P-110.
To ensure that the requirements are later correctly allocated in the final BOM transfer, you first generate preliminary requirements.
The system assigns the BOM items to network operations with identical reference points. The components of the coolant pumps P-111 and P-112 are therefore assigned to the network operation 3000.
The system generates planned orders for P-111 and P-112, which you can convert into production orders.
The system settles the preliminary requirements generated by the first BOM transfer against the newly generated requirements.