SAP PP MTO Planning Strategy 20 User Manual

This document, created by Ajay Nagargoje, provides a comprehensive guide to the Make-to-Order (MTO) production planning scenario in SAP’s Production Planning (PP) module. It explains the MTO strategy, where manufacturing is initiated only after receiving a customer or sales order, as opposed to producing goods based on forecasts. This approach is suitable for highly customized or expensive products, where holding inventory is not desirable.

The MTO process is detailed, from updating material master data to creating sales orders, executing production orders, deliveries, and billing. The document emphasizes the criticality of sales orders as the trigger for MTO production and the generation of sales order-specific stock, which cannot be used for other orders. The planning strategy 20, also known as the pure MTO strategy, is thoroughly discussed, including its configuration and practical implementation.

Key sections covered in the document:

  1. Introduction to Make-to-Order (MTO) Scenario
  2. Planning Strategy 20 (Pure MTO Strategy)
  3. Configuration Steps for Planning Strategy 20
  4. Practical Implementation of MTO Scenario
    • Creating Material Master, Bill of Materials, Work Centers, and Routings
    • Creating Sales Orders
    • MRP Run and Planned Order Generation
    • Conversion of Planned Orders to Production Orders
    • Goods Receipt and Stock Generation
    • Delivery Execution and Billing
  5. Sales Order-Specific Stock Management
  6. Step-by-Step Guide with Screenshots

The document provides a comprehensive understanding of the MTO production planning scenario in SAP PP, from theoretical concepts to practical implementation, making it a valuable resource for SAP users and consultants involved in production planning processes.

Download – SAP PP MTO Planning Strategy 20 User Manual

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