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<ManualTopic ID="/baanerp/ti/onlinemanual/000345" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Lean PCS projects</Title>
		<Keyword><Level1>Standard-to-order production in PCS</Level1>
		</Keyword>
		<Keyword><Level1>PCS</Level1>
			<Level2>lean projects</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>In a make-to-order production environment, production only starts when a customer places an order. Contrary to an engineer-to-order environment, a product in a make-to-order environment has, for the most part, fixed features and specifications that are unlikely to be changed. In SSA ERP, the type of make-to-order without any engineering is also called standard-to-order. The product then has a standard BOM and a standard routing, and is, therefore, a standard product.</Paragraph>
		<Paragraph>Standard-to-order products are mostly products that are not desired to keep in stock, for example, because the product is very expensive or very voluminous. If you produce standard-to-order, the finished products can be transported directly to the customer that ordered them, which saves you most of the inventory costs.</Paragraph>
		<GeneralSection><ProcedureSection><SectionTitle>How to handle standard-to-order production in ERP</SectionTitle>
				<ProcIntro><Paragraph>You can use the <GUIRef href="/baanerp/ti/pcs" role="module">Project Control</GUIRef> module in SSA ERP to support to-order production for standard items. You then make use of so-called lean PCS projects. The purpose of a lean PCS project is that the activities under the project can be pegged to a specific sales order, and that costs are known by PCS project. The items to be produced are copied to a PCS project, but without the BOM and routing because those are standard. Consequently, engineering is no longer possible. Because the BOM and routing of a standard-to-order item are not copied, the BOM and routing are stored only once, independent of the number of generated PCS projects, which prevents redundant data in SSA ERP.</Paragraph>
					<Paragraph>To use PCS for standard-to-order production, carry out the following steps:</Paragraph>
				</ProcIntro>
				<Steps><Step><StepTitle>Create a sales order for the item that you want to produce standard-to-order.</StepTitle>
						<Paragraph>The <GUIRef href="/baanerp/tc/ibd/tcibd2101s000#tcibd201.opol" role="formfield">Order Policy</GUIRef> of the item in the sales order line must be <GUIRef href="/baanerp/tc/domains/opol#on.order" role="enum">To Order</GUIRef>, which you can define in the <GUIRef href="/baanerp/tc/ibd/tcibd2501m000" role="session">Items - Ordering Defaults (tcibd2501m000)</GUIRef> session and/or in the <GUIRef href="/baanerp/tc/ibd/tcibd2500m000" role="session">Items - Ordering (tcibd2500m000)</GUIRef> session. As a result, the <GUIRef href="/baanerp/td/sls/tdsls4101m000#tdsls401.opol" role="formfield">Make Customized</GUIRef> check box in the <GUIRef href="/baanerp/td/sls/tdsls4101m000" role="session">Sales Order Lines (tdsls4101m000)</GUIRef> details session is selected, which indicates that a PCS project can be generated.</Paragraph>
					</Step>
					<Step><StepTitle>Trigger the production of a standard-to-order item</StepTitle>
						<Paragraph>In SSA ERP, you can trigger the production of a standard-to-order item directly from the sales order. Select a sales order line, and start the <GUIRef href="/baanerp/td/sls/tdsls4244m000" role="session">Generate (Project) Structure for Sales Orders (tdsls4244m000)</GUIRef> session from the <GUIRef href="" role="menu">Specific</GUIRef> menu to generate the project structure for the standard item. You must select <GUIRef href="/baanerp/tc/domains/cpge#sto" role="enum">Standard-to-Order</GUIRef> in the <GUIRef href="/baanerp/td/sls/tdsls4244m000#meth" role="formfield">Generation Method</GUIRef> field. The item in the sales order line is copied as a customized item to the PCS project. In other words, a project code is added to the standard item, which makes the item a customized item. However, the BOM and the routing are not copied to the project, so no customized BOM or routing is created at any level in the project structure.</Paragraph>
						<Paragraph>Dependent on the settings in the <GUIRef href="/baanerp/td/sls/tdsls4244m000" role="session">Generate (Project) Structure for Sales Orders (tdsls4244m000)</GUIRef> session, the project code for the newly created customized item is based on the sales order number, if the <GUIRef href="/baanerp/td/sls/tdsls4244m000#cprj.eq.slso" role="formfield">Equate Project with Sales Order</GUIRef> checkbox is selected, or on a project series, if the <GUIRef href="/baanerp/td/sls/tdsls4244m000#project.serie" role="formfield">Project Series</GUIRef> field is filled.</Paragraph>
					</Step>
					<Step><StepTitle>Generate planned orders</StepTitle>
						<Paragraph>After a project structure is created for the standard-to-order item by running the <GUIRef href="/baanerp/td/sls/tdsls4244m000" role="session">Generate (Project) Structure for Sales Orders (tdsls4244m000)</GUIRef> session, planned orders can be generated for all items under the PCS project in the <GUIRef href="/baanerp/cp/rrp/cprrp1210m000" role="session">Generate Order Planning (cprrp1210m000)</GUIRef> session in <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef>. Planned orders are created for materials in the project that are standard-to-order items, but also for materials that are <GUIRef href="/baanerp/tc/domains/opol#anonymous" role="enum">Anonymous</GUIRef>. For this purpose, the BOM is exploded. The BOM that is used for the BOM explosion is the standard BOM of the item from which the customized item is derived. The item from which the customized item is derived can be found in the <GUIRef href="/baanerp/tc/ibd/tcibd0101s000#tcibd001.dfit" role="formfield">Derived-from Item</GUIRef> field in the <GUIRef href="/baanerp/tc/ibd/tcibd0501m000" role="session">Items - General (tcibd0501m000)</GUIRef> details session for the customized item.</Paragraph>
						<Paragraph>The BOM is exploded in the following way: if the encountered material in the BOM is a <GUIRef href="/baanerp/tc/domains/opol#on.order" role="enum">To Order</GUIRef> item, <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> checks the item's inventory to determine the lowest inventory level in the future. The calculation is as follows:</Paragraph>
						<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">on hand inventory + future receipts - future deliveries</Paragraph>
						</Formula>
						<List><ListIntro>Excluded in the calculation are:</ListIntro>
							<ListItem>Production plans.</ListItem>
							<ListItem>Purchase plans.</ListItem>
							<ListItem>Planned orders.</ListItem>
						</List>
						<Paragraph>If sufficient inventory is available, <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> creates a customized item for the standard-to-order item, and allocates inventory for the customized item instead of for the standard item. After this, the BOM explosion comes to a halt.</Paragraph>
						<Paragraph>If inventory is insufficient, <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> creates a customized item for the standard-to-order item, and BOM explosion continues.</Paragraph>
						<Paragraph>If the material on the BOM line is an anonymous item, a planned order is created in case of insufficient inventory. However, the item is not customized.</Paragraph>
						<Paragraph>In short, every material in the BOM with order system <GUIRef href="/baanerp/tc/domains/opol#on.order" role="enum">To Order</GUIRef> that is encountered during BOM explosion, is changed by <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> into a customized item. BOM explosion stops when sufficient inventory is available for a material.</Paragraph>
					</Step>
				</Steps>
			</ProcedureSection>
		</GeneralSection>
	</GeneralSection>
</ManualTopic>
