Make-To-Order Production
Implementation Considerations
Make-to-order production is a process in which a product is individually manufactured for a particular customer. In contrast to mass production for an unspecified market where a material is manufactured many times, in make-to-order production a material is created only once though the same or a similar production process might be repeated at a later time.
You can use make-to-order production:
For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured
When a product has to be assembled particularly for a sales order
Stockkeeping is not usually carried out for products that are made to order. In companies using make-to-order production, the demand program only determines the production area, in which various variant types are produced. Depending on how you track the costs associated with make-to-order production, there are two ways to process make-to-order items during sales order processing:
Make-to-Order Production: Cost Management Using the Sales Order
Make-to-Order Production: Cost Management Using the Project System
Using Assembly Orders
You can also use a sales order to create an assembly order for a make-to-order item. The assembly order triggers the automatic creation of a production order, planned order, or network and provides you with an accurate delivery schedule. The schedule is based on the availability and the manufacturing requirements of the relevant components and assemblies. For more information, see the LO Assembly Processing