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Subhrant Kumar bal

October 23, 2019 6 minute read

Discrete Vs repetitive Vs Process Industry in SAP PP

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Discrete Vs repetitive Vs Process Industry in SAP PP

Hi SAP Folks, Good Day! This document  is regarding various Manufacturing Process in SAP PP .

Along with the technical di erences within all process.

Based on di erent nature of products and complexity, there are 3 types of manufacturing process followed
in SAP PP:

Discrete Industry
Process Industry
Repetitive Industry

There are 2 methods of manufacturing in SAP PP:

Make to stock ( MTS )

Make to order ( MTO )

Discrete Industry Manufacturing Process

In discrete scenario, the manufacturing process is based on production orders. Discrete manufacturing is

characterized by requirements that occur on an irregular basis and a workshop-oriented process. Basically
the demand and supply varies time to time in this scenario.

Discrete manufacturing forms an industry type where in the products which are manufactured can    be
easily assembled and dis-assembled. They can be reworked upon easily to a large extent. You can say
making pumps, engines, cars, airplanes.
Facts in Discrete Process:

Production based on the production orders

Planning and manufacturing depends on production orders.
Products change frequently.
Production is carried out on di erent production lines (scattered- discrete).
Product costing and settlement is done through production orders.
Planned orders are stock type later converted into production orders.
Production orders are required.
Materials will be issued always with reference to production orders.
Master Data includes work center , Production version , Routing and BOMs.

Industry Type: Mechanical engineering, Consumer goods, electronics, and many more

Process Industry Manufacturing Process

The component Production Planning for Process Industries (PP-PI) provides an integrated planning tool for
batch-oriented process manufacturing.It is primarily designed for the chemical, pharmaceutical, food and
beverage industries as well as the batch-oriented electronics industry.

Facts in Process Industry:

Batch oriented process manufacturing.

Process order based manufacturing. You copy the process described in a master recipe and adjust it to
the actual production run.
It is primarily designed for the chemical, pharmaceutical, food and beverage industries as well as the
batch-oriented electronics industry.
The integrated planning of production, waste disposal, and transport activities within a plant.
Master Data includes Master Recipes and resources.
Process Management: In this area, you coordinate the communication between PP-PI and process
control during the execution of a process order.

Process Manufacturing can be used in Continuous production, discontinuous production, Regulated

production as well as Process-oriented lling

Industry Type: Chemical, Pharma, Poultry, Dairy and many more.

Steps in Discrete / Process Industry with MTS / MTO Scenario:

Discrete / Process  with MTS scenario Discrete / process with MTO scenario

Create Planned independent Create Customer Independent

requirements – MD61 Requirement / Sales Order – MD81 /
VA01

Check the Demand management – Check the Demand management –

MD04 MD04
 Creation and revision of production quantities on a period and quantity basis (reduction in individual lot
and order-speci c processing).
Reduction in the production control e ort and simpler back ushing (with the option of using the full
scope of the PP functionality).
Repetitive manufacturing is mainly used for the production scenarios with high product stability, high
repetition rates, and low product complexity.

Industry Type: Mechanical engineering, Consumer goods, electronics, and many more

Process steps in REM

Create necessary Material master, BOM, Rate Routing, Production version, Product cost collector.
Then do standard costing run for all materials and release – CK11N / CK40N and preliminary costing run
for product cost collectors – MF30 / KKF6N
Create demand or PIR – MD61 or create demand forecast in planning table – MF50
After run the MRP with help of the MD01N for nished material ,  MRP element is RS and order type is PE 
or From planning table we can directly create planned orders
Check stock Requirement analysis – MD04
Back ush through  planned order or nished material – MFBF
Planned Orders and RS quantities will be reduced as per period set in REM Pro le

Di erences between Discrete, Process and repetitive Process

Process point of view:

Discrete Process Process Industry Repetitive Industry

Discrete manufacturing Process manufacturing You produce the same

forms an industry type forms an industry type or similar products
where in the products where in the products over a lengthy period
which are manufactured which are
of time. You do not
can be easily assembled manufactured cannot
manufacture in
and dis-assembled. They be easily assembled
individually de ned
can be reworked upon and dis-assembled. It is
easily to a large extent. impossible to be lots. Instead, a total
Eg: making pumps, reworked upon these quantity is produced
engines, cars, airplanes. products. Eg: making over a certain period
chemicals, medicine, at a certain rate per
Paper, Steel etc. part-period. Your
products always
follow the same
sequence through the
machines and work
centers in production.

Routing tend to be
simple and do not
vary much.
 Used in both MTS and Used in both MTS and Used in both MTS and
MTO scenarios MTO scenarios MTO scenarios

Order based Production ( Order based Production Period based

Production in individual ( Production in Production ( with
Production order ) individual Process order certain Quantities per
) period) – Lean
Manufacturing

Product change Product change Steady ow without

frequently frequently much changes

Semi- nished Products Semi- nished Products Semi- nished

often put in interim often put in interim Products often
storage storage directly processed in
to interim storage

Dependent components Dependent Components staged

staged with respect to components staged with respect to
Production orders with respect to Process Production versions in
Orders lines periodically

Back ush possible Back ush possible Period based

Back ush

Order based cost Order based cost Period based cost

controlling – Main cost controlling- Main cost controlling – Main
object is production object is process order cost object is Material
order

Technical point of view:

Discrete Process Process Industry Repetitive Industry

PRT availability check – PRT availability check – PRT availability check

Yes No – Yes

Order splitting – yes Order splitting – No NA

Trigger point – Yes Trigger point – No NA

Order Approval process – Order Approval process NA

No – yes

Process management – Process management – NA

No yes

Digital signature – No Digital signature – Yes NA

Material Quantity Material Quantity NA

calculation – No calculation – Yes
 Active Ingredient – No Active Ingredient – Yes Active Ingredient –
No

Change-over from one Change-over from one Change-over from

product to another – product to another – one product to
frequent frequent another – No

Order-related production Order-related Order-related

production production – No ( it’s
based on planned
orders)

Master data point of view:

Discrete Process Process Process Repetitive Process

Master data used : Master Data Used: Master Data Used :

material master Material master Material master

BOM BOM BOM

WorkCentre Resources Production line

Routing Master recipe Rate Routing

Production version Production version PRT

PRT PRT – Not available Production version

    Product cost collector

REM Pro le

Line Hierarchy

Operations that can be automated in SAP Manufacturing Process

Operations which can Pre-requisites Control data

be automated

Print Order Release Production / Production scheduling

Process Order Pro le

WM Transfer order Release Production / Production scheduling

Process Order Pro le
 Post Goods Issue / con rmation Material master
Back ush
Work center

Routing

BOM

Con rm Operations Milestone Operation control key

PDC entry PDC interfaces

MES or third party Idocs from MES or

systems Third party systems

Post Goods Receipt con rmation Production scheduling

pro le

Operation control key

Rework order / special Status con rmation Trigger points

Instructions / work
ows

Scheduling methods in Discrete, Process and Repetitive Industry

Scheduling methods in Discrete and Process Industry:

1) Basic dates scheduling

2) Lead time scheduling

Scheduling methods in Repetitive manufacturing:

1) Detailed Planning

2) Sequencing / Takt based scheduling

Di erent MRP techniques used in SAP PP:

Manual reorder point planning

Automatic reorder point planning

Forecast-based planning

Material requirements planning with forecasts for unplanned consumption

Master production scheduling (MPS)

Demand-driven replenishment

Conclusion : Based on the above parameters we can di erentiate all the above mentioned manufacturing
processes.

Reference taken from : Help sap , SAP Library.

https://help.sap.com/viewer/9fbed5ee4a6745ed90e67716f93e3205/1809.002/en-
US/3adbf75305610114e10000000a174cb4.html

https://help.sap.com/viewer/8308e6d301d54584a33cd04a9861bc52/1809.001/en-
US/97ac0a14e77544598a1c924e1bee4146.html?q=manufacturing

thanks for your feedback.

Regards

Subhrant

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Assigned tags

MAN Production Planning (PP) | MAN Material Requirements Planning | PLM (Product Lifecycle Management) | SAP

Manufacturing Execution |

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5 Comments

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Alexandra Gummels

February 25, 2020 at 9:54 am

Thanks Subrant, that is one of the best overview/comparisons for this topic,  I´ve seen so far.

Like(1)

Subhrant Kumar bal | Post author

March 28, 2020 at 7:56 am

Thanks Alexandra Gummels

Like(0)

SURESH NAIDU MAHAREDDY

March 4, 2020 at 2:45 pm

Thanks Subrant – Good Explanation, Great Document

Like(1)

Subhrant Kumar bal | Post author

March 28, 2020 at 7:57 am

Thanks SURESH NAIDU MAHAREDDY

Like(0)
 Maya Todorova

April 3, 2020 at 3:17 pm

Thank you, Subhrant Kumar bal Very useful information.

L k (1)

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