what is the differnce between MTO AND MTS process?
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Answer Posted / peter
1 Difference: "Make to order vs. make to stock"
A configured machine is produced for a specific customer
order. This "make to order" machine is based on the
customer demand and specifica.
A "make-to-stock-machine" is produced for an anonym
customer. Who ever has a demand for such a machine will get
it.
2 Difference: SAP-specific
The production order for a "make-to-order" machine is
linked to the customer order. All the costs will be settled
to the customer order as WIP/COS.
The production order for a "make-to-stock" machine is
linked to the material number. All the costs will be
settled to the Inventory + the production variance.
3 Difference: Material ID-Number
The "make-to-order" machine has only one material number
for a range of machines (e.g. all Audi A6) but for each
configuration SAP will create an additional "internal
object number" to specify the machine.
The "make-to-stock" machine has one material number. The
specifications are fixed. This number can be stocked on a
storage location.
WBR
Peter
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