Realize a Faster Design Build by Procuring Components without Building the Assemblies

  • by Janev K. Veettil, Specialist Master, Deloitte Consulting, LLP
  • Mohan Thiruvadi, Senior Manager, Deloitte Consulting, LLP
  • January 8, 2014
SCM
Procuring components without building assembly production orders is a common requirement for creating product prototypes. You can meet this demand by creating a forecast for the assembly material and running material requirements planning (MRP). Discover the material master settings to use and walk through a test procedure for verifying the functionality.
Learning Objectives

In this article, you will learn:

  • The material master settings for procuring only the needed components without building subassemblies
  • How to create demands for components
  • A method for testing the functionality
Key Concept

Planning without assembly, without make to order is a strategy that is used to procure components on the basis of planned independent requirements and to initiate production of the finished product based only on actual sales orders. This planning strategy ensures that you can react quickly to customer requirements even if the finished product has a long overall lead time. You can avoid the main value-added process until you have a customer order.

In a normal industry scenario for established products, building subassemblies to stock to meet the expected demands of a final product is a norm to reduce the lead time of production. However, in many engineering design scenarios, procuring components in advance is required without building subassemblies and final assemblies. This is because the subassemblies can be built only after a design is finalized. This is applicable for almost any industry that uses engineering builds. A good example is semiconductor motherboards for which assemblies cannot be built until the design configuration is complete, but components need to be procured in advance.

Janev K. Veettil

Janev K Veettil has more than 15 years of SAP experience in SAP Production Planning and logistics modules. He has worked on various SAP implementation projects for different industries and his key focus is on manufacturing. 

 

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Mohan Thiruvadi

Mohan Thiruvadi is a Senior Manager at Deloitte consulting with more than 18 years of consulting experience. His focus areas are Supply chain Planning, Procurement, Manufacturing and Logistics. His SAP experience over the last eight years has been in the High Tech and life sciences industry.

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