MIS 445 -Caselet-4 Production Process - SAP Production Execution Process In this caselet we explained the SAP Production Execution process, involving a few key steps In reality, production is far more complex and may involve many more steps. However, the purpose here is to focus on the fundamentals A production process begins with a need for finished goods. The need is either due to a specific customer order, when a make-to-order strategy is in use, or due to a need to increase inventory of products on hand, when a make-to-stock strategy is used. There are in fact three types of production process that can be executed in SAP. They are: 1. Discrete Manufacturing 2. Repetitive Manufacturing 3. Production - Process Industries First, it is good to understand what is happening in the system prior to the production execution process a. Planning quantities are derived and maintained in the system b. Material Requirement Planning run will generate the planned order for the net required quantity with the start date of the production process. c. Master data (BOM and Routing details) will be copied in to the planned order automatically during MRP run. Above given are the steps involved prior to the production execution process. Next, in turn is the production execution process. The SAP Production Execution Process contains five important steps. They are : 1. Converting planned order to production order. Planned order has to be converted to production order to account the entire production Entire master data will be copied to the respective order when converting the planned order 2. Releasing the production order Releasing of production order indicates the commencement of production Unless the order is released further processing of order is not possible 3. Goods Issue for production order. Goods issue covers issuing required components to make the finished product to a production order. Goods issue can be made in parallel duning confirmation of operation. While making the goods issue, the document number can be updated in the production order 4. Confirmation of production order Reporting of usage of components and activities are temmed as confirmation. Confirmation to the each operation will be executed according to the control key attached with each operation 5. Goods Receipt against production order Once the production is completed, finished products will be received from the production order into the respective storage area To Do: Read the given caselet, Involve in active research and investigation of Caselet's Subject Matter, and delineate the given queries. Q-1 Delineate, the difference between Make-to-Order and Make-to-Stock strategies, in terms of Types of Production Process? Q-2 Define the steps of SAP prior to its Production Execution Process? Q-3 Describe the sequence of SAP Production Execution Process