SAP: PP Notes

Discrete & Repetitive Manufacturing Shawn Mahone DISCRETE MFG Order based production o In individually defined lots or quantities i.e. order for a variety of 10,000 vehicles to supply Autumn/Winter consumer demand in the Midwestern U.S. region: (4,000) cars o o (3,000) 4-door (1,000) 2-door (750) hard-top (250) convertible

(3,500) minivans o o (3,000) 5-door passenger style (500) 3-door cargo style

(2,500) trucks o o (2,000) 4x4 wheel drive (500) 4x2 wheel drive

Product can change frequently Varying sequence of Work Centers o Complex Routing

Semi-finished goods often placed into interim storage Components staged in reference to the Prodn.Ord Status processing can be accomplished Completion Confirmations backflushing can be easily achieved

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SAP: PP Notes
Discrete & Repetitive Manufacturing Shawn Mahone o at the individual operation level (and/or) o initial assembly line intermediate assembly line post-assembly / finish line

at the Prodn.Ord level (4000) cars (3,500) minivans (2,500) trucks

Order based cost control

REPETITIVE MFG Period based production. o Total amount of product is manufactured according to a certain rate or the specified period of time (i.e. 500 toasters in 5 hours)

Product remains unchanged over a greater period of time Steady flow through production o Simplified Routing.

Semi-finished products are further processed without going into interim storage Components are staged to the production line w/out respect to the Prodn.Ord o Periodically and anonymously

Reduced status processing possible

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SAP: PP Notes
Discrete & Repetitive Manufacturing Shawn Mahone o o No status procedures Period based backflushing i.e. 500 toasters in 5 hrs Bill of Materials (BOM) / components: o o o o o o MRP Material Master: MRP Views o MRP 1 Procurement Type Defines whether the material is: o o o Produced in-house (E) Procured externally (F) Both (X) Period based cost control (1) casing x 500 (1) housing bracket x 500 (4) heating coil packs x 500 (1) track & lever assembly x 500 (1) AC current insulated chord x 500 (4) casing-to-housing bracket screws x 500

MRP Controller Person or group responsible for planning material requirements

In House Production Time Independent of order quantity

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SAP: PP Notes
Discrete & Repetitive Manufacturing Shawn Mahone Determines the dates for planned orders in materials planning (if order-quantity dependent; then times DO NOT EXIST)

o o o

MRP 2 MRP 3 MRP 4

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