S37 Make-to-Order

with Component
Availability Check

Scenario Overview
SAP Best Practices for
Supply Chain Management
SAP AG
 Business View
Business Benefits Customer Sales representative Production planner Business Benefits

Place a sales order Reduced inventory of

High level of finished products;
commitment, better production is only
service Sales order entry triggered when a
particular sales order
arrives
Perform ATP
check at finished
product level

BOM explosion
and component
availability check
Increased forecast
More reliable delivery accuracy at
ATP result display subassembly level
dates

Confirm the sales order

Save the order Increased production

Creation of the ATP tree
ATP tree conversion
transparency; missing
components of the
finished product are
identified during sales
order entry

Production planning
and execution

 SAP AG 2004, Scenario Make-to-Order with Component Availability Check

 Interaction View
Customer Sales representative Production planner
Data

Place a sales order Purchase order

Sales order entry

Perform ATP
Data
check at finished
product level
Delivery
proposal BOM explosion
and component
availability check

Data

ATP result display Planned

order,
purchasing
requisition
Confirm the sales order

Data
Save the order Creation the ATP tree
Confirmation

ATP tree conversion

Production planning and

execution

 SAP AG 2004, Scenario Make-to-Order with Component Availability Check

 Component View
Manufacturer
SAP R/3 SAP APO
ATP
ATP check for
Sales order entry
finished product

SD
BOM explosion

PP/DS

Check of
components

ATP result
Sales order
display

Save Creation of the

sales order ATP tree

ATP

ATP tree
conversion
PP
Manufacturing order/ Permanent
purchase order receipt elements

PP/DS

 SAP AG 2004, Scenario Make-to-Order with Component Availability Check

 Multilevel ATP: Business Requirements

 The discrete industry is increasingly operating in a „make-to-order /

configure-to-order“ environment.

 In this environment, checking the availability of components is the

principal requirement for „Available-to-Promise (ATP)“.

 If a component is not available, the product needs to be substituted or

its availability has to be be checked in another location (rules-based
ATP). Stock transfer orders have to be created directly out of the sales
order.

 At the time of order entry, no receipt elements (i.e. purchase orders)

may be available at component level. In this case, a check against a
supplier commitment (product allocations at component level) is
required.

 SAP AG 2004, Scenario Make-to-Order with Component Availability Check

 Multilevel ATP: Highlights

 Multilevel BOM explosion

 ATP check at component level

 Rules-based ATP at component level

 Material allocations at component level („supply commit“)

 Possibility to exclude components from the check

 Receipts can be created at a later point of time with a planning run or

immediately if the order is within a certain horizon

 Presentation of „constraining“ items/characteristics

 SAP AG 2004, Scenario Make-to-Order with Component Availability Check

 BOM Explosion / Rules / ATP Tree Structure

Bill of material Rules-based ATP ATP tree structure

(PDS) Customer order end item

2
1 3
Change of source location

BOM explosion
C1

2
1 3
Change of source location

C2
BOM explosion
2
1 3
Change of source location

 SAP AG 2004, Scenario Make-to-Order with Component Availability Check

 Multilevel ATP Result Screen

 SAP AG 2004, Scenario Make-to-Order with Component Availability Check

 Good to know

 The configuration has to be passed on by the calling system.

 Configuration model and rules-based ATP substitutions have to be
consistent
 Material substitution at component level does not lead to a new product
or to a new configuration at finished good level
 Only planned orders with according status can be deleted during change
of sales documents
 Restricted characteristic combinations for allocation check on
component level
 Multilevel configuration is possible only with iBase but not with CDP
 Multilevel ATP only supports exact lot sizes
 The ATP check does not recognize phantom levels
 Location substitution with cross system stock transfers is not possible
 „By-product“-production is not supported
 References between sales documents that have ATP tree structures are
not possible
 Combining functions of Capable-to-Promise (CTP) and multilevel ATP is
not supported
Please check the configuration documentation for further information!

 SAP AG 2004, Scenario Make-to-Order with Component Availability Check

 Order-Pegging during Production Planning

Sales order
10 20 10 40 60 (-10)

10 20 10 40 50

30 100 Undercoverage
Distribution
orders
30 100
20
30 50 30
50 50 50 (+20)
Production
orders
Overcoverage
50 50 50

50 30 20 50
80 70
Purchase
orders Delay

 SAP AG 2004, Scenario Make-to-Order with Component Availability Check

 Optional Scenario Enhancements

Forecasting with bills of material

 Allows planners to forecast dependent requirements
 Enables planners to immediately see the impact of the product
forecast at fixed component level
 Is a valuable enhancement for planning and improving the supply of
components with long replenishment lead times

 SAP AG 2004, Scenario Make-to-Order with Component Availability Check

 Forecasting with Bills of Material

 SAP AG 2004, Scenario Make-to-Order with Component Availability Check

 Legend

Business partner or
department taking part in the
Scenario
Activity of business partner
involved in the Scenario

Information flow illustrating

the sharing of information
between business partners
Business documents
exchanged between business
partners, e.g., Delivery note

 SAP AG 2004, Scenario Make-to-Order with Component Availability Check

 Legend: Component View

Title
business Component
Data
document

roles
Title
Data Function
Data

e-Service 1
activity box
Process Flow

Business
Partner e-Service Process Flow

 SAP AG 2004, Scenario Make-to-Order with Component Availability Check