ERP PRODUCTION MANAGEMENT

ASSIGNMENT # 2 BY SHARIQ AHMED KHAN

ST.ID # 58549

Production industries with master data and execution process in SAP

(Discrete vs. Repetitive vs. Process)

 Discrete Production: Discrete Production is an industry where the production of

materials keeps on changing according to the order, and their costs are also
calculated accordingly.

 Repetitive Production: Repetitive Production is an industry where the produced

materials do not change for a long period of time. Products are produced
according to the total quantity as well as not according to the individual orders.

 Process Manufacturing: Process manufacturing is a production method that

uses formulas or recipes to produce goods by combining ingredients or raw
materials. Most often, ingredients are measured in pounds or gallons. It is
commonly used in industries that produce bulk quantities of goods, such as food,
beverage, chemical, and pharmaceutical.

Discrete Process
Discrete manufacturing forms an
industry type where in the products
which are manufactured can be easily
assembled and dis-assembled. They
can be reworked upon easily to a large
extent. Eg: making pumps, engines,
cars, airplanes.
Used in both MTS and MTO scenarios
Order based Production ( Production in
individual Production order )
Product change frequently
Semi-finished Products often put in
interim storage
Dependent components staged with
respect to Production orders
Backflush possible
Order based cost controlling – Main
cost object is production order
As Execution Process:
Process Industry
Process manufacturing
forms an industry type
where in the products which
are manufactured cannot be
easily assembled and dis-
assembled. It is impossible
to be reworked upon these
products. Eg: making
chemicals, medicine, Paper,
Steel etc.
Used in both MTS and MTO
scenarios
Order based Production
( Production in individual
Process order )
Product change frequently
Semi-finished Products
often put in interim storage
Dependent components
staged with respect to
Process Orders
Backflush possible
Order based cost
controlling- Main cost object
is process order
Repetitive Industry
You produce the same or similar products
over a lengthy period of time. You do not
manufacture in individually defined lots.
Instead, a total quantity is produced over a
certain period at a certain rate per part-
period. Your products always follow the
same sequence through the machines and
work centers in production.
Routing tend to be simple and do not vary
much.
Used in both MTS and MTO scenarios
Period based Production ( with certain
Quantities per period) – Lean
Manufacturing
Steady flow without much changes
Semi-finished Products often directly
processed in to interim storage
Components staged with respect to
Production versions in lines periodically
Period based Backflush
Period based cost controlling – Main cost
object is Material
 As Master Data:

Discrete Process Process Process Repetitive Process

Master data used : Master Data Used: Master Data Used :

material master Material master Material master

BOM BOM BOM

WorkCentre Resources Production line

Routing Master recipe Rate Routing

Production version Production version PRT

PRT PRT – Not available Production version

    Product cost collector

REM Profile

Line Hierarchy