Solutions for Made to order manufacturing process discussion

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Verified
Equinox119 asked a question on 16 Dec 2013 6:35 AM

Hi,

I'm looking for the generally solutions for production type "Made to order", which the FG are so various and rarely to be the same item code or BOM.

They depend on the sizes of FG, their components and especially depend on the CAD layout of components located.

So, I'd like to know and have the discussions that

- Which feature in AX 2012 R2 could help for this type of production?

- Generally, which type of costing calculation will be used for this kind of production and what is the benefits?

- Should we create BOM every time or an order comes?

Please help to share your consulting experiences. I'm quite new to this totally "made to order" production

Many thanks

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Verified Answer
Steven Weaver responded on 17 Dec 2013 11:34 PM

You would use a BOM or a Formula. I have seen technical quotations on add-ons but that is more ETO. MTO however is repeat and you state it is rarely the same item.

Costing depends upon the business and the process, a standard cost can be created as part of the BOM construction process and variances analysed, but in addition average or FIFO can be used. Indeed standard on finished and other on raw material is as common.

Creating a BOM each time depends upon your process. I have worked where they want the independence and others where the drive is the reuse. The choice is yours.

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Verified Answer
Ronald Richter responded on 18 Dec 2013 12:31 AM

Hi,

according to you description I assume that the production type is more engineer to ordert (ETO) than make to order (MTO). In this case standard costs will not be appropriate because you cannot have a Standard BOM in the product which can be calculated.

One way creating a BOM could be by creating a new version in the sales order.

As Weaverisiki already wrote: it is a complex topic and you have a variety of choices. It is overall an intensive consulting topic.

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Equinox119 responded on 19 Dec 2013 10:37 PM

Thanks for all you guys discussed

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Verified Answer
Steven Weaver responded on 17 Dec 2013 11:34 PM

You would use a BOM or a Formula. I have seen technical quotations on add-ons but that is more ETO. MTO however is repeat and you state it is rarely the same item.

Costing depends upon the business and the process, a standard cost can be created as part of the BOM construction process and variances analysed, but in addition average or FIFO can be used. Indeed standard on finished and other on raw material is as common.

Creating a BOM each time depends upon your process. I have worked where they want the independence and others where the drive is the reuse. The choice is yours.

Reply
Verified Answer
Ronald Richter responded on 18 Dec 2013 12:31 AM

Hi,

according to you description I assume that the production type is more engineer to ordert (ETO) than make to order (MTO). In this case standard costs will not be appropriate because you cannot have a Standard BOM in the product which can be calculated.

One way creating a BOM could be by creating a new version in the sales order.

As Weaverisiki already wrote: it is a complex topic and you have a variety of choices. It is overall an intensive consulting topic.

Reply