What is build-to-order in SAP MFG-ME - SAP Manufacturing Execution?

SAP Term: build-to-order

• Component: MFG-ME

• Component Name: SAP Manufacturing Execution

• Description: A production environment where manufacturers build a product according to the customer's specifications from the raw material stage, rather than building a standard product and applying changes. In a build-to-order environment, each shop order can have a unique configuration.

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• Key Concepts: 
  Build-to-order (BTO) is a manufacturing process in which a customer’s order is used to trigger the production of a product. This process is used in SAP Manufacturing Execution (MFG-ME) to ensure that the customer’s order is fulfilled in the most efficient and cost-effective way. 
  
  How to use it: 
  In SAP MFG-ME, build-to-order is used to create a production plan based on the customer’s order. The production plan includes all the necessary steps for producing the product, such as ordering materials, scheduling production, and tracking progress. The system also allows for customization of the production plan based on customer requirements. 
  
  Tips & Tricks: 
  When using build-to-order in SAP MFG-ME, it is important to ensure that all necessary materials are ordered in advance to avoid delays in production. Additionally, it is important to monitor progress throughout the production process to ensure that the customer’s order is fulfilled on time and within budget. 
  
  Related Information: 
  SAP MFG-ME also offers other features such as material tracking, quality control, and inventory management. Additionally, SAP MFG-ME can be integrated with other SAP modules such as SAP ERP and SAP SCM for a more comprehensive solution.