Dear Sir,
The scenario relates to a custom Industrial Machinery Manufacturing . It is a typical engineer to order type situation . The manufacturing time is almost 6 months .
The engineering BOM is a multilevel hierarchical one and comprised of more than 1000 components and out of these there are approx 300 nos in-house manufactured one .
In case of a standard adopted procedure , the typical MRP run on the basis of engineering BOM shall result into 300 nos production order and some of the production order have manufacturing cycle time of less than 1 day . So keeping in view operational difficulty in managing of so many production orders and efficiency , one can really question that whether it is right approach to have so many production orders , or one should go with some other alternate approach .
As an alternate approach , one can think for clubbing of these individual orders into broader level component (i.e assembly level) orders . This approach shall have few production orders .
To illustrate the scenario further , I explain below a case .
a) Typical Scenario
An assembly called "SHELL" need to be manufactured . The engineering BOM of Shell is as shown below . In the BOM , the boxes represent components . There is Raw Material requirement below components BELTS and NOZZLE .
In the existing scenario , there shall be 4 nos production orders for manufacturing of SHELL .
B) Alternate Scenario
We make only one production Order i.e for SHELL and the requirement / manufacturing of the sub-level components (i.e Drum /Nozzle/Belts) is included in the SHELL production order itself .
I seek the expert advise from forum members that between the above 2 approaches , which is the better option to be opted in a ETO long cycle manufacturing scenario and how the companies are addressing such situation .
In case approach B) to be adopted then what are the steps to be followed in SAP to realize this . If there is some good literature or SDN links available on this , kindly mention the same also .
With Rgds
B Mittal