Use Order Change Management to Automatically Apply Last-Minute Changes to Production Orders

  • by Sobhan Vemulapalli, Director — SAP, Radinnova Inc.
  • August 25, 2010
Discover how order change management (OCM) improves manufacturing accuracy and customer satisfaction by ensuring that production orders conform to the latest product structure and sales order data. OCM is well integrated with sales orders for configurable products. It also helps prevent the cancellation and repetition of sales orders by ensuring that changes to product features are transferred to manufacturing. Because OCM is expandable, you can apply it to production orders already in process.
Key Concept

Order change management within SAP ERP Central Component transfers the latest changes from sales orders and master data to existing production orders. Order change management works in tandem with engineering change management (which takes care of future procurement elements) by managing changes to the existing production orders.

You can’t always plan ahead when it comes to changes. In reality, changes are often made at the last minute to accommodate unpredictable events such as testing defects or a customer request. Companies need to have an effective method to manage these changes to avoid building products with the wrong parts, increased operational costs, and reduced customer satisfaction.

Order change management (OCM) is automatically initiated when an engineering change is made to master data or when changes are made to sales orders (Figure 1). A change automatically creates an initiating object record within the system based on master data and preset IMG configuration settings. The initiating object record identifies all the production orders affected by this change and creates a production order change record, which lists the steps that have already been executed and the overall OCM processing status. The proposed changes are checked for approval or rejection and are applied to the production orders. For sales order changes, simulation production orders are automatically created in OCM and are used for comparisons with the original production order.

 

Sobhan Vemulapalli

Sobhan Vemulapalli is an entrepreneur and a director of SAP at Radinnova Inc. He is an SAP, APO, and PLM specialist with 10 years of experience and has implemented 12 projects across the US, Mexico, and India. He is currently focused on building a specialty practice in SCM, PLM, and MDM, targeting their niche areas. Sobhan holds a bachelor’s degree in mechanical engineering and an MBA in general management.

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