What is Discrete Manufacturing, REM and Demand Management?

1. What is Discrete Manufacturing? 2. What is REM? 3. What is Demand Management? Here are difference between Discrete and REM and small explanation about discrete and repetative manf.: - A typical characteristic of discrete manufacturing is the frequent switching from one manufactured product to another. The products are typically manufactured in individually defined lots, the sequence of work centers through production varying for each one of these. Costs are calculated on the basis of orders and individual lots. - In Repetitive Manufacturing, products remain unchanged over a longer period and are not manufactured in individually defined lots. Instead, a total quantity is produced over a certain period at a certain rate. - Discrete manufacturing typically involves varying the sequence of work centers through which the products can pass during production. The order of work centers is determined in routings, which can often be very complex. There can be waiting times between the individual work centers. Also, semi-finished products are frequently placed in interim storage prior to further processing. - Repetitive Manufacturing, on the other hand, normally involves a relatively constant flow on production lines. Semi-finished products are usually processed further immediately without being put in interim storage. Routings tend to be relatively simple. - In discrete manufacturing, component materials are staged with specific reference to the individual production lots. Completion confirmations for the various steps and processes document the work progress and enable fine-tune controlling. - In Repetitive Manufacturing, components are often staged at the production line without reference to a particular order. Completion confirmations are less detailed, and the recording of actual data is simplified. - The function of Demand Management is to determine requirement quantities and delivery dates for finished products assemblies. Customer requirements are created in sales order management. To create a demand program, Demand Management uses planned independent requirements and customer requirements. To create the demand program, you must define the planning strategy for a product. Planning strategies represent the methods of production for planning and manufacturing or procuring a product.

Using these strategies, you can decide if production is triggered by sales orders (make-toorder production), or if it is not triggered by sales orders (make-to-stock production).You can have sales orders and stock orders in the demand program. If the production time is long in relation to the standard market delivery time, you can produce the product or certain assemblies before there are sales orders. In this case, sales quantities are planned, for example, with the aid of a sales forecast. SAP Manufacturing Manufacturing Planning -- Production Planning and Scheduling Production planning enables the planner to create feasible production plans across the different production locations (also with subcontractors) to fulfill the (customer) demand in time and to the standard expected by the customer. For the long and medium-term time horizon, rough-cut planning is based on time buckets and determines requirements of resources (machines, humans, production resource tools) and materials. Solvers, real-time data, and high supply chain visibility (KPIs, alerts) support the planners decision-making process.

Detailed Scheduling delivers optimized order sequences that can be released for production. Scheduling heuristics and solvers take into account constraints and costs to schedule the optimized order sequence, based on business objectives. Dynamic alerts and order pegging structures improve the visibility of the product flow. What-if simulations and evaluations of orders sequences support the planer with flexibility and control. Due to the seamless integration with the execution and inventory management system, material shortages or critical resource situations can be seen immediately and the schedules can be manually or automatically adjusted accordingly. Detailed Scheduling fulfills requirements of process as well as discrete industries (takt-based and job-shop scheduling for configurable and non-configurable products in an make-to-stock and/or make-to-order environment; block planning, campaign planning, push production for process industries). Customer-specific planning needs can be served with individual heuristics and optimizers to extend the standard planning tools with user- and industry-specific components, like trim optimization algorithms in mill industries. These individual heuristics and optimizers are launched directly from PP/DS planning screens. Combined with standard optimizers and heuristics, they form one integrated planning system.

Production Planning and Scheduling Sales & Operations Planning Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which sales, production, and other supply chain targets can be set on

the basis of historical, existing, and estimated future data. Rough-cut planning can also be carried out to determine the amounts of the capacities and other resources required to meet these targets.

Use SOP to streamline and consolidate your company's sales and production operations.

SOP is particularly suitable for long-term and medium-term planning.

Master Planning: Demand Management The function of Demand Management is to determine requirement quantities and delivery dates for finished products assemblies. Customer requirements are created in sales order management. To create a demand program, Demand Management uses planned independent requirements and customer requirements.

Master planning: Long-term Planning This component provides support for long-term production planning and for carrying out simulations in short and mid-term planning.

To carry out an annual planning or a rolling quarterly planning run you require information on the future stock and requirements situation. This means you need to know how sales and operations planning influence resources. That is, whether the results of sales planning can actually be produced with capacity on hand. If such information is available it is possible to decide at an early date whether extra work centers will be required to cope with bottlenecks, or whether additional machinery will have to be purchased to reach the sales target.

In long-term planning you can also plan materials that usually require very little planning in operative planning, such as, materials planned using reorder point planning, bulk material, and materials planned using KANBAN. In long-term planning, you can plan these materials as you would MRP materials. This provides you with an overview of how these materials influence the demand program.

The purchasing department can also use the results of long-term planning. They use the information on the future requirements quantities to estimate future orders. This provides them with a basis for negotiating delivery schedules and contracts with vendors. Vendors also gain from long-term planning as they are sent a preview of future purchase orders.

Capacity Planning The economic use of resources is an objective for many areas of a company. The component Capacity Planning (PP-CRP) is available for this purpose.

Capacity planning supports planning in all its phases:

long-term rough-cut planning

medium-term planning

short-term detailed planning

Material Requirements Planning The main function of material requirements planning is to guarantee material availability, that is, it is used to procure or produce the requirement quantities on time both for internal purposes and for sales and distribution. This process involves the monitoring of stocks and, in particular, the automatic creation of procurement proposals for purchasing and production.

In doing so, MRP tries to strike the best balance possible between

optimizing the service level and

minimizing costs and capital lockup.

The MRP component (PP-MRP) assists and relieves MRP controllers in their area of responsibility. The MRP controller is responsible for all activities related to specifying the type, quantity, and time of the requirements, in addition to calculating when and for what quantity an order proposal has to be created to cover these requirements. The MRP controller needs all the information on stocks, stock reservations, and stocks on order to calculate quantities, and also needs information on lead times and procurement times to calculate dates. The MRP controller defines a suitable MRP and lot-sizing procedure for each material to determine procurement proposals.

Production/Process Orders Production orders are a fundamental part of Production Planning and Scheduling. They are fully integrated in other logistics components and have, among others, interfaces to:

Sales and Distribution

Materials Management

Controlling

The work processes within a company are executed using orders.

A production/process order defines which material is to be processed, at which location, at what time and how much work is required. It also defines which resources are to be used and how the order costs are to be settled.

As soon as a planned order or other request is generated from material requirements planning, the information is passed on to shop floor control; the order-relevant data is also added to ensure complete order processing.

Production/process orders are used to control production within a company and also to control cost accounting. Discrete Manufacturing Discrete manufacturing is the manufacturing of individual components. Machines and operators in the workshop handle a wide range of part types. Manufacturers in the industrial machinery & components, high tech or automobile parts industry tend to be discrete manufacturers as they produce a wide range of different parts.

With discrete manufacturing, production orders are used to control the production processes on the shop floor. The products can easily by identified and if required they can by tracked with serial numbers.

Supported discrete manufacturing planning variants:

Assemble-to-order (ATO)

Configure-to-order (CTO) Engineer-to-order (ETO) / Project Manufacturing Make-to-order (MTO)

Make-to-stock (MTS)

Lean Manufacturing/Kanban The KANBAN method for controlling production and material flow is based on the actual stock quantity in production. Material that is required on a regular basis is continually provided in small quantities in production. Replenishment or the production of a material is only triggered when a higher production level actually requires the material. This replenishment is triggered directly in production using previously maintained master data. The entries you have to make in the system have been reduced to a minimum, for example, the scanning of a bar code. All other actions in the system are carried out automatically in the background.

With KANBAN, the production process controls itself and manual posting is reduced as far as possible. The effect of this is a reduction in lead time and in stock.

In KANBAN, the signal for material replenishment can be triggered, for example, by the work center that requires the material (demand source) by sending a card to the work center that is responsible for manufacturing the material (supply source). This card describes which material is required, the quantity of the material required and where the material is to be delivered. When receiving the material, you can automatically post the goods receipt at the demand source by a further kanban signal by bar code, for example.

Internet Kanban B2B processes is also available to exchange information with business partners. Repetitive Manufacturing This component can be used for production planning and control in a repetitive manufacturing environment.

You can use repetitive manufacturing as either make-to-stock REM or make-to-order REM such as in the automotive industry, for example.

The goals of repetitive manufacturing are the following: Creation and revision of production quantities on a period and quantity basis (reduction in individual lot and order-specific processing). Reduction in the production control effort and simpler backflushing tools(with the option of using the full scope of the PP functionality).

Repetitive manufacturing planning variants: Production Planning (Repetitive Manufacturing) CTO in ERP Production Planning (Repetitive Manufacturing) MTO in ERP Production Planning (Repetitive Manufacturing) MTS in ERP

Production Lot Planning/Individual Project Planning Production lots are created in order to plan finished products and important semi-finished parts. Production lot planning enables you to determine the costs for a product in relation to a certain change status in the preliminary planning stage, that is, before the sales order has been received. This is very important due to the increasingly shorter product life cycles.