Big organizations generally have very complex manufacturing scenarios and requirements. One of such requirement revolves around setting up their production process in ERP systems. They may have huge production premise which is further subdivided into various divisions and departments, forming small sublocations within same production facility e.g. automobile production units subdivided into various divisions like Body and Paint shop, engine assembly etc. Generally this requires quiet intensive master data maintenance in mapping the production process in such cases.
In this blog we will be talking on high level how SAP IBP TS Supply helps you in modelling such requirements with spending less efforts on maintaining master data.
Why and how Cross Plant Production helps to model Production Processes across various sublocation?
Manufacturing businesses, while designing their Production Processes, need to take care of different operations in different sublocations, and consuming the output from these sublocations in operations which are performed in main production unit, where all the assembly processes are carried out. The below figure illustrates the setup of main plant and various sublocations associated with it.
This scenario is referred to as Cross-Plant Production in SAP IBP Supply. This process covers production processes that is spread across several sublocations within same production facility. In this scenario:
- the transportation receipts are not generated for the components rather they are consumed directly into higher level operations to produce output product.
- manufacturing plants do not need to perform or maintain additional steps of transferring material from various sublocations to main assembly line, instead they would be directly consuming the output of the manufacturing process into the BoM for Header Finished/Semi-finished Products.
If a business chose to map its production processes using cross plant production setup, they will get following advantages from this scenario.
- No need to define multiple sources of Supply.
- No need to make any transfer posting from one sub-location to main assembly.
- Less efforts are required by the user to perform master data maintenance and other relevant tasks.
Using Cross Plant Production in IBP TS Supply, production processes involving various sublocations can be mapped using more simplified way which is less master and transaction data dependent.
Olivehorse has vast experience in working with Cross Plant Production Scenarios and have many supply planning experts who can provide their expertise in this area. Let us know if you have any further query on Cross Plant Production In SAP IBP TS Supply, we would love to help you.