Industrial Machinery & Components > Manufacturing > Make-to-Stock Manufacturing

Make-to-Stock Manufacturing

Business Scenario

 


Business Scenario Maps

  • Discrete Industry: Make to Stock
  • IM&C: Lean Manufacturing, KANBAN Scenario (Collaborative)
  • IM&C: Make-to-Stock Scenario
  • Manufacturing Execution
  • Key Performance Indicators

  • Number of Orders not delivered complete
  • Capacity Utilization
  • Delivery Date Accuracy
  • Order Fulfillment Costs
  • Order Fulfillment Lead Times
  • Perfect Order Fulfillment
  • Scrap
  • SAP Best Practices

  • IM & C: Make-to-Stock (MTS) - with Serial Numbers, Quality Management and Warehouse Management
  • MTS - Production Versions and Kanban
  • SAP Solution Extensions

  • SAP Manufacturing Execution by Visiprise 5.1
  • Partner Opportunities

  • Partner Opportunities in Industrial Machinery & Components
  • See also

  • Customer Success Stories
  • Customer Success Stories by Sub-Industry
  • SAP NetWeaver Benefits

  • Characteristics of a Make-to-Stock (MTS) process are commodity based end products, production prior to sales order based on forecast, end products sold from inventory, controlling of inventory is critical and distribution and warehousing of end product is the norm.

    Business Goals & Objectives


    Improving Customer Service

    Better service levels
    Collaborate with business partners
    Reduce late orders
    Reduce order lead-time

    Increasing Revenue

    Improve capacity utilization
    Outsource excess capacity

    Lowering Working Capital

    Improve capacity utilization
    Increase inventory turns
    Lower work-in-process inventory
    Reduce inventory carrying costs
    Visibility to vendor/supplier inventory

    Reducing Operating Costs & Increasing Efficiency

    Improve procurement processes
    Lower logistics costs
    Reduce administration, improve business processes
    Reduce inventory levels
    Reduce transaction costs

     



    Business Processes

    Production PlanningSAP Component or Feature Available

    Enables the planner to create feasible production plans across the different production locations and with subcontractors to fulfill the customer requirements in time and to the standard expected by the customer. For the long- and medium-term time horizon, rough-cut planning is based on time buckets and determines requirements of resources (machines, humans, and production resource tools) and materials. Solvers, real-time data, and high supply chain visibility (such as key performance indicators and alerts) support the planner's decision-making process.

    Make-to-stock production is carried out without reference to an sales order.The process includes analysis, planning according to MRP logic and evaluation of the planning results.

    This process is supported by the following SAP and/or partner offerings

  • SAP ERP
  • SAP Extended Manufacturing Planning and Execution for IM&C
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    Production SchedulingSAP Component or Feature Available
    In production planning, detailed scheduling is combined with procurement planning. Detailed scheduling is used to compare the capacity requirements from the production orders with the available production capacity. Detailed scheduling with optimization generates a production plan that is optimized according to certain business criteria. Different criteria (such as setup and lead time optimization) can be combined with one another depending on what the user requires.

    This process is supported by the following SAP and/or partner offerings

  • SAP ERP
  • SAP Extended Manufacturing Planning and Execution for IM&C
  •  
    Manufacturing ExecutionSAP Component or Feature Available
    Supports the process of capturing actual production information from the shop floor to support production control and costing processes.more...

    This process is supported by the following SAP and/or partner offerings

  • SAP ERP
  •  
    Shop Floor IntegrationSAP Component or Feature Available

    SAP xMII enables real-time transactional integration between plant floor and enterprise (SAP ERP) systems out-of-the box through:

    • Universal Connectivity to the data, functionality and processes of existing plant floor systems
    • Business Logic for creating automated events, KPIs and alerts
    • Workflow to synchronize plant and Enterprise business processes
    • Message mapping between MES, SFA, legacy apps. and the ERP system based on industry standards (like ISA-S95, ...)
    • Manufacturing Intelligence: Near real-time analytics engine that aggregates and delivers unified visualization of events, alerts, KPIs and decision support to production personnel.

    This process is supported by the following SAP and/or partner offerings

  • SAP ERP
  • SAP Manufacturing Integration and Intelligence (SAP MII)
  •  
    Supervision and ControlSAP Component or Feature Available

    Manufacturing visibility manages events throughout the production process from release of a manufacturing order through transferring the data to the data warehouse, where it is analyzed. During production, process steps but also exceptions are reported, ensuring a transparent manufacturing process and the possibility to take counter-measures immediately. It is also possible to provide information on events to external parties such as customers, subcontractors or sold-to parties, using various channels to provide the information quickly and to ensure transparency of planned and actual events and to continuously improve the manufacturing processes.

    This process is supported by the following SAP and/or partner offerings

  • SAP ERP
  •  
    Supply Chain Monitoring and ControlSAP Component or Feature Available
    Supply Chain Performance Management (SCPM) enables you to define, select, and monitor key performance indicators (KPIs), giving you an integrated, comprehensive view of performance across the supply chain. SCPM with SAP SCM includes a large number of predefined KPIs based on the Supply Chain Operations Reference model (SCOR) covering all supply chain activities including source, plan, make, deliver, and return.

    This process is supported by the following SAP and/or partner offerings

  • SAP Extended Manufacturing Planning and Execution for IM&C
  •  
    Quality Assurance and ControlSAP Component or Feature Available
    Quality assurance and control involves inspections at all stages, continuous monitoring, and quick intervention to deal with unexpected events. Quality inspections can be triggered by various events such as order release or goods movements, but also by manual actions. To document product quality, certificates can be created.

    This process is supported by the following SAP and/or partner offerings

  • SAP ERP
  •  
    Sales Order ProcessingSAP Component or Feature Available

    This business process makes it possible for you to deliver a specific product configuration and quantity, or to provide a service at a specific time. During sales order processing, a sales organization accepts the sales order and is responsible for fulfilling the contract.

    This process is supported by the following SAP and/or partner offerings

  • SAP ERP
  • SAP Sales Management for IM&C
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    SAP Product Available Partner Product Available SAP Product Available with Future Releases Partner Product Available with Future Releases Future Focus
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