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SAP Simple Logistics - Manufacturing
In SAP S/4 HANA, SAP offers various functions for discrete manufacturing and batchoriented process manufacturing. This includes the components of Production Planning and Control such as process management.
You can use different production scenarios in S/4 HANA system.
Discrete and Process Manufacturing
Based on manufacturing conditions, product complexity, requirement and various other criteria, an organization can use various manufacturing types.
Discrete Manufacturing is order based using Production Order. Typical industry sectors where discrete manufacturing is used are mechanical engineering, automotive component suppliers, electronics and aerospace and consumer goods industry. In Discrete manufacturing, raw materials used to create these products are the same from the first job to the next. It is used in Production Planning where specialized products are manufactured.
Process Manufacturing is order based using the Process Order. This is suitable for chemical industry, pharmaceutical industry, food manufacturers, and semiconductor industry. This includes integrated planning of production, waste disposal, transportation of material in the same plant.
This is based on different production scenario, which is quantity and period based manufacturing process and not order based. This is typically used in manufacturing engineering, automotive manufacturing, electronic and consumer goods industry, other industry types.
In a manufacturing process, a production order is created. Following are the key steps involved in production order processing −
Calculation of capacity requirements
Availability checks - material, PRT, and capacity
Printing of order papers
Material staging by using reservations
Confirmation of quantities, activities, and time events (variable confirmation procedures)
Period-end closing - process cost allocation, overhead rate, Work In Process (WIP) determination, variance calculation, and order settlement
Archiving and retrieval
The releasing of an order is a key milestone in processing of production order. With the release of an order, other activities are carried out such as printing order documents, withdrawing materials, etc.
In manufacturing, the status of production orders is managed and the corresponding status is set when an order is released. With the release of an order, an availability check is performed. It is possible to release a single order, all orders, or multiple orders simultaneously.
In SAP S/4 HANA Enterprise Management, it provides you with a new user experience using apps like Material Coverage, Monitor Production Orders.
Using Material Coverage apps, you can perform following functions −
- Check Material Coverage
- Monitor Material Coverage
Using Production Orders app, you can perform the following functions −