SAP for Mill Products

Variant Configuration and MTS Production

A wish or reality?

Stefan Soeller, SAP

Solution Management - IBU Mill Products & Mining

Configuration basics

Configuring a sales order line item results in

-

Production: Make-to-Order

Inventory: Customer specific stock

Configuring a production order always requires a

relation to sales order stock / copy characteristics

2011 SAP AG. All rights reserved.

Further Solution Discussion is part of DIMP

SAP ECC 6.0

Industry Extension DIMP

Mill Products

Industry & Enterprise Extensions

EE EE EE IE

IE

IE

Automotive
Aerospace & Defense

SAP ECC Core

Mill Products

Automotive

Engineering & Construction

High Tech

Former add-on has

become Industry
Extension

Industry Extension DIMP

used across several
industries

Processes running in one

industry segment
supported

Functionality still available

Functionality originally
created with background
of only one of the DIMP
industries

Processes across different

DIMP industries not
allowed

Shipped as part of the ERP

Core Component
Only one IE can be active
DIMP : Discrete Industry / Mill Products
2011 SAP AG. All rights reserved.

Individual check by SAP

Custom Development
possible

IE: industry Extension

3

Configuration in MTS possible in three different scenarios

Sales Order

Production Order

Different behavior in

Possible with external planning

tool e.g. APO

ERP
ERP & external planning tool

2011 SAP AG. All rights reserved.

Configuration in MTS

Sales Order
Material Variant (MTS variant)

Production Order
Any variant configuration
material

Different behavior in
ERP

Only possible with external

planning tool e.g. APO

ERP & external planning tool

Pre-requisite:
Material is batch managed
Customizing requirement class

2011 SAP AG. All rights reserved.

Pre-requisite:
Material is batch managed
Active integration model / MRP
type external planning

Changing Characteristic Values of configured MTS Material Variants

Change in sales order ERP only
Business Background
Direct sales (e.g. metal service center, lumber, .) utilizes MTS material
Customer request is different from what is available in stock :
Available material / inventory:
Customer request:

10 feet tube
9 feet tube

Sales rep needs to change material master data in sales order from 10 to 9
No MTO segment / NO individual customer requirement should be created
No production order should / can be involved in cutting tube to length

Execution based e.g. on delivery documents (no capturing of cutting cost). See
transaction MILL_CUT

2011 SAP AG. All rights reserved.

Changing Characteristic Values of configured MTS Material Variants

Change in sales order ERP only
Restrictions
Changed values are only considered during batch determination,
pricing, quantity conversion, and in sales documents
ERP MRP does not consider changed characteristic values.
In case of insufficient material in stock, MRP will create replenishment
order for 10 feet length

2011 SAP AG. All rights reserved.

Changing Characteristic Values of configured MTS Material Variants Example

Sales Order

Material Master
Tube 123
Grade

1b

Core Diam.

150

Width

200

Length

8 10 feet

Specified in Sales Order

Tube 123
Batch 1

Tube 123
Batch 2

Length

8 feet

Length

9.5 feet

Weight

...

Weight

...

Batch Determination
also used for:
Pricing
Print Sales Doc
Quantity conversion
Only production relevant with
external planning system

2011 SAP AG. All rights reserved.

Changing Characteristic Values of configured MTS Material Variants

(ERP&APO) -1Change in sales order ERP & APO
Business Background
Same as before

Behavior of external planning tool e.g. APO

APO planning run is able to plan on characteristic level (while ERP can only plan
on material level), and thus transfers changed sales order characteristics to APO
planned order
APO pegging connects sales order with planned order based on characteristics
APO orders transferred to ERP as a MTS production order with configuration of
sales order

2011 SAP AG. All rights reserved.

Changing Characteristic Values of configured MTS Material Variants

(ERP&APO) -2Change in Sales order ERP & APO
Motivation
Classical Make-to-Order has limitations in planning
Planning run cannot access stock from other sales orders
Inability to increase quantity of planned orders to e.g. utilize its quantity
size optimization not possible

lot

Sales order stock could only be moved into make-to-stock segment with material
master price (not considering sales order configuration)

Use Make-to-Stock production with configurable materials

Provide additional flexibility for supply chain planner in APO
by modeling sales order driven make-to-stock
(Best Practice Primary Steel concept)

2011 SAP AG. All rights reserved.

10

Make-to-stock production with configurable materials (APO)

Support configuration for MTS item in sales order and production

Planned Order
Configure MTS-item APO

Production Order
ERP

Goods
Receipt

MTS-item with own

configuration

MTS-item with own

configuration

of MTS item
(batch)

APO ensures that

characteristic values
are passed to planned
order

Characteristic values
are passed on to
production order in ERP
without sales order
reference

Sales Order

Customizing of
requirement class;
batch managed

APO pegging connects sales order with planned order based on characteristics
2011 SAP AG. All rights reserved.

11

Configuration in MTS
Sales Order
Fully Configured Material
Variant (MTS variant)
Different behavior in
ERP

Production Order
Any variant configuration
material
Possible with external planning
tool e.g. APO

ERP & external planning tool

Pre-requisite:
Pre-requisite:
Material is batch managed

Material is batch managed

Active integration model / MRP
Type external planning

Customizing requirement class

2011 SAP AG. All rights reserved.

12

Configuration in MTS Production Orders

Enable the production planner to generate a MTS production order with the header
material configured to his needs
Use Cases
The production planner has knowledge of future incoming demand and needs to be
prepared with e.g. semi-finished or finished goods in inventory to quickly satisfy the
demand
Material produced is a trial version for internal or external usage
Excess inventory (e.g. cancelled SO) / damaged / doesnt meet original quality
requirements / needs to be processed to be sold at a later time

2011 SAP AG. All rights reserved.

13

Create Production Order DIMP specific

1 Characteristic values can be edited

2 No sales order assignment required

2011 SAP AG. All rights reserved.

14

Thank You!
Contact information:

Stefan Soeller, SAP Canada

Solution Management IBU Mill Products & Mining
Email: [email protected]

 2011 SAP AG. All rights reserved.

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