7/21/2019 Direct Production_Collective Order http://slidepdf.com/reader/full/direct-productioncollective-order 1/17 Generated by Jive on 2014-06-11+02:00 1 COLLECTIVE ORDER OR DIRECT PRODCUTION - A scenario overview Direct Production or Collective order – Scenario Overview (Author: N. Mohan Raj, Infosys – Chennai ) Introduction: This White paper explains briefly on the scenario of direct production or collective order concept. Basically, collective order is the technical term used for the Direct Production scenario. Main objective of the document is to explain the basic concept of collective order with Business examples as well as sap Process flow. Best attempt has been made to explain key settings, advantages, Disadvantages & Limitations of collective order. I would also update versions based on feedback and comments of SDN experts and consultants on this topic accordingly in future. Collective order or direct Production can be carried out for Discrete Manufacturing or PP-PI. However this document limits to Discrete Manufacturing only. Applies to: ECC 6.0, Sap R/3 4.6 Need for Direct production or Collective order: If subassemblies are produced directly for superior orders within a production process, without physically entering the warehouse, then it is useful to have direct production via collective orders. Example: 1. Joining of Left door & Right door assembly in a car 2. Fitting of Front & rear wheel assembly in cycle or Bike Direct Production: Direct production is the special type of production where components are directly produced for the higher-level assembly, without Stocked @ warehouse as normal and no goods receipt or goods issue postings are made for components that are produced directly. The system flags a direct production segment for the components to be produced directly in the MRP list and the stock/requirements list. When the planned order for the finished product is converted into a production order, the system also converts all planned orders for lower-level components to be produced directly into production orders. The system adapts planned orders for direct production to changes in date and quantity in the higher-level assembly, even if they are firmed, so that the collective order remains consistent. Collective order: Collective order is a network where planned orders or production orders are linked to each another over several production levels. Each order in the collective order has its own order number. The components for which separate production orders are created in the collective order are called directly produced components. Business scenario:
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COLLECTIVE ORDER OR DIRECTPRODCUTION - A scenario overview
Direct Production or Collective order – Scenario Overview (Author: N. Mohan Raj, Infosys – Chennai )
Introduction:
This White paper explains briefly on the scenario of direct production or collective order concept. Basically,
collective order is the technical term used for the Direct Production scenario.
Main objective of the document is to explain the basic concept of collective order with Business examples as
well as sap Process flow. Best attempt has been made to explain key settings, advantages, Disadvantages &
Limitations of collective order. I would also update versions based on feedback and comments of SDN expertsand consultants on this topic accordingly in future.
Collective order or direct Production can be carried out for Discrete Manufacturing or PP-PI. However this
document limits to Discrete Manufacturing only.
Applies to: ECC 6.0, Sap R/3 4.6
Need for Direct production or Collective order:
If subassemblies are produced directly for superior orders within a production process, without physically
entering the warehouse, then it is useful to have direct production via collective orders.
Example:
1. Joining of Left door & Right door assembly in a car
2. Fitting of Front & rear wheel assembly in cycle or Bike
Direct Production:
Direct production is the special type of production where components are directly produced for the higher-level
assembly, without Stocked @ warehouse as normal and no goods receipt or goods issue postings are made
for components that are produced directly.
The system flags a direct production segment for the components to be produced directly in the MRP list and
the stock/requirements list. When the planned order for the finished product is converted into a production
order, the system also converts all planned orders for lower-level components to be produced directly into
production orders.
The system adapts planned orders for direct production to changes in date and quantity in the higher-level
assembly, even if they are firmed, so that the collective order remains consistent.
Collective order:
Collective order is a network where planned orders or production orders are linked to each another over
several production levels. Each order in the collective order has its own order number. The components for
which separate production orders are created in the collective order are called directly produced components.
COLLECTIVE ORDER OR DIRECT PRODCUTION - A scenario overview
Generated by Jive on 2014-06-11+02:00
2
Let us understand Business scenarios where collective order or Direct Production scenario is used before
briefing the sap process flow.
In Our professional life, we used to get below items from our Company or in any events
a) Ball pen or Mug or Bottle embedded with Company name
b) Wrist watch or wall clock with company logo & name
c) Wallet or Bag or Sun glass embedded with Company or sponsorIf the manufacturer uses exclusive components for producing above finished product where he wants to
control production with linkage of header & child orders with no intermediate stock transfer to warehouse, then
Collective order process will be helpful.
Above examples are just for explanation purpose of collective order in a better way but it is not limited .You can
use Collective order concept in general where components has to be issued only to Superior orders instead of
warehouse as unrestricted stock .
Sap Process Flow of Collective order:
1. A. Configuration:
2. A.1 Order Type Setting:
IMG path:
Production --> Shop Floor control --> Master data --> order --> Define order Types
Tcode: OPJH
If this indicator is set , then it means there are
automatic goods movements between the production orders in a collective order. When the goods movement
is posted,costs are credited from the subordinate order& costs are debited to the superior order.