In the process of product development, it is essential for your project team to determine if they are going to choose repetitive or discrete SAP manufacturing. Both offer different capabilities, and repetitive SAP manufacturing has gained wide acceptance recently despite its late addition. It is important to evaluate the kind of product orders you are receiving before you delve into finding the right solution for your products. Determining your environment will offer you a clear understanding as to which manufacturing solution is more suited to your needs.
Repetitive and Discrete SAP Manufacturing
Discrete Manufacturing in SAP is based on the premise that the production orders are the foundation for manufacturing the product and it shall be produced according to the requirements. If you are looking for a manufacturing cycle wherein the production is carried out depending upon the lot size or make-to-order basis, choosing discrete manufacturing in SAP can enhance your operations. Your project team can address the cost and confirmation corresponding to each order rather than evaluating it on a per-period basis. In the case of discrete SAP manufacturing, regular inventory checks need to be conducted to determine whether there are enough products or not and how much each product costs.
In Repetitive SAP Manufacturing, the production takes place at regular intervals. The product remains unchanged over a period of time without stocking the interim products. Since you offer a product catalog to the customer, the product is repeatedly produced and the flow is constant over time. If you want to measure the production in repetitive SAP manufacturing, you can compare the output with that of the previous period. You will need back-flushing for confirming the orders and the product cost collector will enable proper settlement. If you want to get involved in a kind of planned order processing, repetitive SAP manufacturing is the right fit for you. it You can then leverage SAP capabilities to optimize your processes and reduce your operational costs.
What differentiates one from the other?
Both discrete and repetitive manufacturing have their own benefits. It cannot be suggested that one is better than the other because selecting the right manufacturing solution depends on the environment and requirements of your production.
- While in repetitive SAP manufacturing (REM), you can confirm the orders for planned production or material, released production will form the basis of your order for confirmation in the case of discrete.
- In REM, each order period is considered for the settlement process whereas the settlement is done against each production order in discrete SAP manufacturing solution.
- REM enables you to eliminate unplanned orders from the system, whereas, in discrete SAP manufacturing your previous product orders for manufacturing will be easily displayed.
- Capacity planning in REM becomes simpler by integrating Kanban withdrawals, whereas, in discrete manufacturing, you must evaluate capacity offers against capacity requirements.
Apart from the aforementioned differences, there are some others. For order-based manufacturing where the product changes frequently, discrete SAP manufacturing will enable you to update the production process on lot basis. Complete back-flush of individual operations is possible with the discrete method and you can control the costs depending upon each order.
For period-based production, REM is the perfect choice because the product isn’t changing frequently and your production remains stable for a longer period of time. The costs are controlled depending on each production period which is much more efficient than the discrete method. Choose what works for you, and integrate new efficiencies and intelligence in your manufacturing operations with an intelligent ERP like SAP S/4HANA. Please feel free to reach out to email@example.com for more details, or if you have any questions.