What is make-to-order production in SAP CO-PC - Product Cost Controlling?

SAP Term: make-to-order production

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: Production approach whereby a product is produced for a specific customer. The make-to-order production comprises sales-order-related production and engineer-to-order.

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• Key Concepts: 
  Make-to-order production is a type of production process in which goods are manufactured only after a customer order has been received. This type of production is used when the customer requires a customized product or when the product is not available in stock. In SAP, make-to-order production is managed using the CO-PC Product Cost Controlling component. 
  
  How to use it: 
  The CO-PC Product Cost Controlling component allows users to manage the cost of make-to-order production. It provides tools for calculating the cost of materials, labor, and overhead associated with the production process. It also allows users to track and analyze the cost of each step in the production process. 
  
  Tips & Tricks: 
  When using the CO-PC Product Cost Controlling component, it is important to ensure that all costs associated with the production process are accurately tracked and accounted for. This will help ensure that the cost of make-to-order production is accurately calculated and that any potential savings are identified. 
  
  Related Information: 
  The CO-PC Product Cost Controlling component is part of SAP's ERP system. It can be used in conjunction with other components such as Materials Management (MM) and Production Planning (PP) to manage and optimize the cost of make-to-order production.