Generate requisition and purchase order for the configuration item. The Sales Order does not drive the production program but the forecast does. These shops also quote from customer drawings the first time a finished part is produced. Repetitive job shop is often found with make to order.
Manufacturing Software Selection Tools. A more detailed discussion is to be had around SAP planning strategies where there are countless combinations and opportunities.
Disconnect between Sales and Production 3: Here is an overview of three types of manufacturing modes: Keep in mind that most software started as a solution for a single company.
Procuring Configurations Automatic creation of unique configuration item, BOM, and routing for the top-level model as well as lower level models Calculation of list price and blanket price for the configuration based on prices for the model and options Transmission of configuration details through item attachments or the iSupplier Portal Automatic requisition creation for the top-level purchased configuration Automatic transfer of the reservation from the requisition to the purchase order Automatic sales order reservation of top-level purchased configuration upon receipt into inventory Supply chain planning support creation of supply for configurations at all levels across the supply chain Support for drop-shipped configurations The following Oracle Application products are integrated to provide Configure to Order features: Configure to Order CTO Configure-to-Order CTO represents the ability for a user to define the component make-up configuration of a product at the very moment of ordering that product, and a vendor to subsequently build that configuration dynamically upon receipt of the order.
Currently, the majority of automotive supply chains lack a decoupling point and the dominant BTS approach has resulted in billions of dollars of capital being tied up in stock in the supply chain.
Planning support for complex configurations where configurations are sourced across the supply chain. It is not unusual in this environment for a customer to require the repetitive job shop to carry inventories of certain levels of parts.
They create their own engineering drawings, maintain quality systems for the products they produce, and stock raw materials, work in progress, finished sub-assemblies, and finished products. Holding stock of such a high cash value as finished goods is a key driver of the current crisis in the automotive industry - a crisis that could be eased by implementation of a BTO system.
As various detailed concepts exist per industry there is no generic standard. The revision and date effectivity are used to be able to track the product history through time and therefore to have full traceability.
Promise based on matching configurations and option specific sources. Proper use of the planning strategy helps achieving both goals.
A company that converts tanks of chemicals to smaller containers is a process manufacturer even though that process manufacturer has a formula or recipe for the elements that go into producing the tank contents.
The products that they design and build can have features changed in the final design of the product. This model is the most complex to address due to the multiplicity of production modes and requirements. The primary level of design difference addresses how a company produces its products for sale.
The main PLM activity takes places when designing the configurable product. Therefore, the CTO system appears to be an ideal business process model that provides both mass customization and a quick response time to order fulfillment.
Smaller process manufacturers, often called pilot plants, function more like job shops where small quantities of special products are produced in a non-repetitive environment.
Job Shop, Process, and Discrete. All these manufacturing categories come with their unique requirements for managing manufacturing activities and each one needs different forms of shop floor control, scheduling, material handling, supply chain and add-on modules such as quality control.
Given the widespread proliferation of products, there are a number of manufacturers taking a combined approach, where some items are BTS and others are BTO, which is commonly referred to as "hybrid BTO".
This is similar to distributing the products that a company makes on their own. What can be managed is the common platform the baseline and all different options on top of this baseline. Therefore when a customer requests the item, no freely available stock to fulfill the order can be found.
Other software solutions may have been developed independently to serve an entire industry or industries. A configuration item will be deactivated if there is no sales order demand, or open supply or transactions in that organization.
Configure To Order is a strategy that closely resembles MTO or ATO for the finished product and components can be made to stock using a forecast based on probability factors maintained for options and features. Planning strategies are one of the most important drivers to achieve exactly that.
Other people would say its agile and lean at the same time. CTO examples are, the ordering process of a car with all its options, or ordering a personal computer over the internet.
All inventory has value. Which condition depends on the configuration rules for this option. A company that uses numerous components to make equipment is a discrete manufacturer. BTS is the dominant approach used today across many industries and refers to products that are built before a final purchaser has been identified, with production volume driven by historical demand information.
Consider how many orders there are and that this pressure pops up every day from now on until the order is delivered, you can easily see that there is room for improvement in the communication department.A Configure to Order (CTO) system is a hybrid of make to stock and make to order operations.
It is a set of components (subassemblies) that are built to stock whereas the end products are assembled to order. Configure-to-Order (CTO) Production with Variant Configuration and Assembly We are trying to create a Configure-to-Order (CTO) Production with Variant Configuration and Assembly Processing.
I have set up the required master data for variant configuration which is working fine in a sales order. Explain the Stock Transport Order Process between plants & storage locations its detailed mechanism Procedure, Process along with paths and t-codes in detail along with your real time live data examples from your current Project?
Dec 29, · What is Configure to order (CTO)? It is a method of manufacturing which allows you, or your customer, to choose a base product at the very moment of ordering and then configure all the variable parameters (features) associated with that product from defined/available options.
A Configure to Order environment is one in which the product or service is assembled or kitted on receipt of the sales order. Oracle Applications supports the Configure to Order environment with a range of features in order entry, demand forecasting, master scheduling, production.
In the Configure-to-Order process, products are assembled and configured based on customer requirements. Usually, a configure to order manufacturer has a “catalog” and for the different products they sell often have “options” that can be selected by the customer.Download