Make-to-Stock Repetitive Manufacturing 

Purpose

You can use Repetitive Manufacturing purely for make-to-stock production based on a run schedule header. This means that production is controlled without a direct reference to the sales order. Run schedule quantities determine the dates and quantities. The requirements are created in Demand Management or in a similar component. Sales orders are delivered from stock and settled against planned independent requirements in Demand Management, according to the planning strategy you select.

Actual data is collected and costs are settled via a product cost collector. You can create a product cost collector for one or for several run schedule headers, as required. Backflushing and settlement takes place periodically, rather than individually for products or sales/production orders.

The following section describes the process flow and the prerequisites for this type of repetitive manufacturing.

Process flow

  1. First, you must make certain settings in the material master data:

a. You create a material with a production version.
Note: The production version requires a BOM and a work center. If you want to represent several operations, in Line Design, for example, you also need a routing.

b. In the material master record, you flag the Repetitive manufacturing indicator and select a repetitive manufacturing profile that allows make-to-stock production.

c. In the production version, you must also select the indicator RS header allowed.
  1. You create a run schedule header for this material.
  2. You create a product cost collector (for make-to-stock production) for this run schedule header.
  3. You carry out an MRP run for the material to be produced.

a. If, in the material master record, you choose a BOM selection method by production line, the system directly assigns the planned orders (order type PE) to the production line in the planning table

b. If you have not chosen a BOM selection method, you can assign the planned orders (order type LA) created in the planning run to the production line(s) in the planning table.
  1. You access the pull list to calculate the missing parts for the components at the production line, and to create the appropriate replenishment elements.
  2. When the product is finished, you carry out the backflush. Backflushing includes posting the goods receipt for the product, the goods issue for the components and, if necessary, actual production times. The system posts the actual costs to the product cost collector, reduces the planned orders and updates the statistics.
  3. At the end of a settlement period, you carry out a period-end closing in Product Cost by Period. Here, you can initially post overhead to the product cost collector, recalculate activities to actual prices, calculate work in process (WIP) and carry out a variance calculation.

Then you settle the product cost collector by posting the debit/credit difference of the product cost collector to a price difference account.