Rough Overview of DOP?

Hey Jay,

you’ll find some pretty good explanation on the IFS help. Using DOP you will basically always have a connection to specific orders. You will usually not aggregate demands from multiple sources/orders. It’s mostly used for customers who do project specific manufacturing or use the CTO module.

From the IFS help:

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:

• Build to order (BTO) and Assemble to Order (ATO) - Assembly starts according to demand
• Configure to order (CTO) - A production type which supports the option to select a base product and configure all the variable parameters associated with that product
• Engineer to Order (ETO) - Construction by general contractors and plant construction by engineering companies are categorized as ETO.

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…

You will find a lot more if you search for Dynamic Order Processing in the F1 help.

/Johannes

For the Pros and Cons it comes done to how your company is working. If you have a fixed assortment of parts you produce DOP is probably not for you. If you do a lot of customer specific work and larger projects where demand is not planable and cannot be aggregated you should look into DOP. For CTO (customize to order) DPO is commonly used at least on the top level.

Jay,

Attached is an overview of DOP that hopefully will help you understand what it can do.

Basically, you end up with a pegged multi-level structure which can let you have alarms where appropriate but you need to consider if your product changes much after order intake since it does connect everything together once released.

Regards,

Antony