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Assemble vs Make to Order Strategies

The document discusses various stocking strategies used in manufacturing and distribution including make-to-stock, pick-to-order, assemble-to-order, make-to-order, and engineer-to-order. It also summarizes the typical order flows and integration between modules for simple sales orders, drop ship orders, internal sales orders, returns, and purchasing in an ERP system like Oracle. Key manufacturing and distribution concepts like demand lead time, delivery lead time, bill of materials, work orders, and inventory management are referenced in relation to the different stocking strategies and order processes.
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0% found this document useful (0 votes)
34 views16 pages

Assemble vs Make to Order Strategies

The document discusses various stocking strategies used in manufacturing and distribution including make-to-stock, pick-to-order, assemble-to-order, make-to-order, and engineer-to-order. It also summarizes the typical order flows and integration between modules for simple sales orders, drop ship orders, internal sales orders, returns, and purchasing in an ERP system like Oracle. Key manufacturing and distribution concepts like demand lead time, delivery lead time, bill of materials, work orders, and inventory management are referenced in relation to the different stocking strategies and order processes.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Module Integrations

(All Basic Modules {Dist & Mfg})

4/22/2014

What is Going to be Taught!!!


Understanding the Module Integrations
Stocking Strategies. Explaining each of the Flows with Module Integrations of each strategy. Question and Answers.

4/22/2014

Stocking Strategies

MTS Make To Stock


Add Line to Order

Ship

Invoice

PTO Pick To Order

Select Option

Add Line to Order

Ship

Invoice

ATO Assemble to Order

Select Option

Add Line to Order

Build

Ship

Invoice

MTO Make To Order


Stocking Strategy Make To Stock

Desi gn Yes Yes Yes Yes No

Raw Material Yes Yes Yes No No

Compon ent Yes Yes No No No

Finished Goods Yes No

ETO Engineer To Order 4/22/2014

Pick To Order Assemble To Order Make To Order Engineer To Order

No No No

Timings
ETO

Delivery Lead Time

MTO

ATO

PTO

MTS

Demand Lead Time


4/22/2014 4

Simple Sales Order Make to Stock

Inventory Material Allocation

Receivable Invoice

Order Management Sales Order

Run Work Flow Background Process

Pricing Modifier/Qualifier

Shipping Execution Delivery/Trip-Stops

4/22/2014

Simple Sales Order Pick to Order (CTO)

Inventory Material Allocation

Receivable Invoice

Order Management Sales Order

Run Work Flow Background Process

Configurator

Pricing Modifier/Qualifier

Shipping Execution Delivery/Trip-Stops

4/22/2014

Simple Sales Order Assemble to Order (CTO)

Shipping Execution Delivery/Trip-Stops

Inventory Material Allocation

Work Order Receivable Invoice Order Management Sales Order Planner

Purchase Requisition

Configurator

Pricing Modifier/Qualifier Payable Invoice Purchase Order

Bill Of Material Costing Quality

Run Work Flow Background Process

4/22/2014

Simple Sales Order Pick to Order (Model) Sales Order Cycle

Start

Enter Sales Order

Configured Item

Model Item

Book Sales Order

Schedule Sales Order

Yes

Hold On Shipment?

Release Sales Order

No

Release the Hold

Generate Packing Slip

Ship Confirmation

Invoice

4/22/2014

Simple Sales Order Assemble to Order (Model) Sales Order Cycle

Start

Enter Sales Order

Configured Item

Model Item

Book Sales Order

Schedule Sales Order

Create BOM & Routings

Create Work Orders

Yes

Hold On Shipment?

Release Sales Order

Complete Work Orders (Job Completion)

No

Release the Hold

Generate Packing Slip

Ship Confirmation

Invoice

4/22/2014

Engineer to Order Sales Order Cycle (ETO)

Select Model & Options

Select the Std CTO or ETO

ETO

Request Quote for ETO

Review Changes In ETO (Engg- BOM)

CTO

Review the Cost of all Items

Book the Order

Finalize the Quote

Need to Generate Item Costs / Price for ETO Items

Make the Design for all New Components -ETO Items (Mfg- BOM)

Generate Mfg BOM

Create the Work Order & Issue the Material

Complete the Job & Move to Stores For Pick Release

Shipment

Invoice

4/22/2014

10

Drop Ship Sales Order Functional Overview

Shipping the Tyres Customer MRF Ltd

ice n vo I R

SO

SO

PO

Inv
Maruthi Udyog Ltd.

oic e AP
PO

Note: Assuming that Customer has given order for Tyres to Maruthi Udyog Ltd but Maruthi in turn sources from MRF Ltd and asks him to ship from his warehouse on Maruthi Udyog behalf. Now Maruthi Udyog Ltd will pay to MRF Ltd for Shipping the Tyres and Customer will pay to Mauruthi Udyog Ltd.

4/22/2014

11

Drop Ship Sales Order Oracle Cycle

View the Requisition Number SOLineActions Additional Line info Drop Ship Tab

SO-Entry Shipping Tab Source Type: External

SO-Book

Requests Requisition Import / Purchase Release OR run Work flow

Approved Requisition

Auto Create Select Inv Org

Run Work Flow Background Process

Receive Expense Sub Inventory

Purchase Order

Payable Invoice

Receivable Invoice

4/22/2014

12

Internal Sales Order Oracle Cycle


Destination Org will raise the Internal Requisition

ISO Number Internal Requisition (Lines Order Number) Order Organizer (Query with Source as Internal)

Run Requests Create Internal Order-PO Modules Order Import OM Module

Inter Requisition

ISO-Booked

Release Sales Order

Ship Confirm - SO

Select the Inv Org


Run Work Flow Background Process Receive Sub Inventory

Notes:
Create Shipping Networks between Source Org (Shipping Org) and Destination Org (Receiving Org) -- Check the Internal Order Required Create a Customer like any Normal Customer and assign the Receiving Org Inventory Location to Internal Location in the Ship To of the Customer. Ensure you have right Internal Order Type assigned in the Purchasing Options in the Purchasing Responsibility. Note :Internal Ordered & Internal Order Enabled " Item Attributes " must be checked in the Item definition

4/22/2014

13

Simple Sales Order Cycle

Pick Docment Set

Ship Document Set

Start

SO Entry

SO Book

Release SO

Ship Confirm SO

Run Work Flow Background Process

End

MTS

ATO

Inventory MTS , PTO (Model/Item)

WIP ATO (Model/Item)

Defer Inventory Interface

Defer Invoice Interface

4/22/2014

14

Return Sales Order Cycle

Return Tab: Reference Type, Return Reason & Select the Return Line Type

Inventory Receiving. (MRB Sub Inventory - Do the Inspection if required) Run Work Flow Background Process

Start

SO Entry

SO Book

Inventory Receiving

End

Based on your Line Type Selection Credit Memo will be created

4/22/2014

15

Purchasing Cycle
Requisition Stores/Office/Shop Floor

Tools->Copy Doc

Request For Quotation Bid/Standard/Catalog 2. Automatic Release Auto Create

Quote Analysis Multiple Suppliers

Analysis

Quotation Bid/Standard/Catalog

Approve Auto Create

Purchase Order SPO/ PPO / CPA/BPA

Blanket Release

Select Inv Org

4/22/2014

Receiving Direct/Standard/ Inspection

Select Inv Org

[Link] Create

Tools->Copy Doc

16

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