Dynamic Order Processing (DOP)

Dynamic order processing (DOP) which is also commonly referred to as make to order (MTO) production, is a production approach where manufacturing starts only after a customer's orders are received. Manufacturing after receiving a customer's orders means to start a pull-type supply chain operation because manufacturing is performed when demand is confirmed, i.e., being pulled by demand. This approach is considered to be good for highly configured products, e.g. automobiles, computer servers, or for products where holding inventories is very expensive, e.g., trains. There are also other production approaches such as:

Pull-type production, which is used by MTO, BTO, ATO, CTO and ETO, is a business model in the assembly industry where the quantity to produce per product specification is one or only a few. The opposite business model is to manufacture products for stock i.e., Make to stock (MTS), which is push-type production.

IFS/Dynamic Order Processing

IFS/Dynamic order processing supports the following pull-type production: MTO, BTO, ATO, CTO and ETO. Dynamic order processing (DOP) enables the possibility to create a multi-level structure for planning, purchasing, and manufacturing with control of time, cost, and pegging. DOP supports pegging to any level in the structure. Below that level, MRP manages the remaining parts. In most make-to-order situations, the challenge is to confirm a delivery date that is both material and capacity checked. This must be done inside the order booking process. Once the order is confirmed, the handling is very similar to normal make-to-stock planning.

Customer Order Connection

There are several ways a DOP header may be connected to a customer order line.

These relationships cause different actions to occur when a date and/or quantity change occurs to a DOP header.

A single DOP header connected to a single customer order line:

A single customer order line connected to multiple DOP headers:

A single DOP header connected to multiple customer order lines:

There is no option available to update the customer order lines automatically.

DOP Structure

When DOP is used in your production process, a DOP header is created as a start, containing the basic information about the demand. You must then generate the DOP structure of the DOP header in order to proceed.

A DOP structure is a logical hierarchy of orders that reflects the actual product structure of the parent DOP part and the component DOP parts. There are three ways you can create a DOP structure:

When you create a DOP structure, any intermediate steps like parts with planning method K, Blow-Through, and P, Phantom parts, in the structure are deleted.

Before any pegged orders are created for the DOP orders in the structure, the DOP header is set to the Unreleased status. As long as the DOP structure has this status, you can change it as much as you desire. When pegged orders are created, the status changes to Released.

Byproducts and expense parts - Byproducts are additional parts received as a result of the manufacturing process related to actual part, and cannot be handled in DOP structures. DOP structures can, however, handle expense parts. Expense parts are those parts where the quantity per assembly is equal to 0 (zero) as either the cost or the quantity is insignificant.

Project connection - It is possible to connect a DOP header to a project and all project specific connected DOP headers and DOP orders will be tagged with project ID and activity sequence. When releasing project specific pegged DOP orders, the system will generate project specific shop orders or purchase requisitions/orders dependent on the part type.

Supply Orders

For more information, see the about description for DOP Header/Order.

Alarm

For more information, see the about description for DOP Alarms.

Propagate Changes

If you change the quantity or date needed on a DOP order, this information can be propagated downwards or upwards through the whole structure. This functionality is useful when the customer initiates quantity or date changes related to the order in focus after that the DOP structure is created.

Cost Analysis

Several costing techniques are available: standard, order-unique, and actual. Performance monitoring lets you analyze the cost progress for any given order in a DOP structure.

For more information, see the about description for DOP Costing.