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Typical of order-based production is the frequent switching from one product to another. Each product is manufactured in
individually defined lots. Costs are calculated per order. Inrepetitive manufacturing, the same product is produced on a
certain production line over a longer period of time. In production, a total quantity is produced according to a certain
production rate over a certain period of time. Costs are collected periodically at a product cost collector.
In order-based production, you usually have a changing sequence of work centers where the products are processed. The
order of work centers is determined in routings, which can often be very complex. Semi-finished products are frequently
placed in interim storage prior to further processing. Repetitive manufacturing usually involves a relatively constant flow
through production lines. The routings of the individual products are very similar.
With production orders, component materials are staged with specific reference to the individual production orders.
Confirmations for the various steps and orders document the work progress and can be used for fine control. In repetitive
manufacturing, components are often staged at the production lines without reference to a particular order. The
confirmations (backflushes) are usually executed periodically with no reference to an order (for example, all the quantities
produced in one shift).
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