Product Requirement Specification Object for Custom Order Lead Time
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Solution Overview
Problem
Current make-to-order processes often result in longer lead times for customers, as production is decoupled from sales, leading to increased wait times for customized products and limitations in product variants available for sale due to stock constraints.
Innovation Solution
Implementing a system that maintains master data and forecasts material requirements, generates sales order confirmations and production plans based on customer orders, and determines product specifications using a product requirement specification business object, allowing for flexible production planning and sourcing of components to meet customer demands efficiently.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If goods are made to order, then customer demand coverage is improved, but lead time increases
Solution Approach 1:
The system performs preliminary actions by forecasting material requirements before sales orders are received and maintaining master data in advance. This allows components to be procured and prepared beforehand, so when a custom order arrives, production can begin immediately with the pre-prepared materials, significantly reducing lead time while still fulfilling customer-specific requirements.
2Loss of time
If goods are sold from stock, then lead time is reduced, but product variant selection is limited
Solution Approach 1:
The system segments the product into standardized components and customized final assembly. Standardized components are maintained in stock and can be quickly procured, while the final assembly is customized according to customer specifications. This segmentation allows the system to benefit from both stock availability (for components) and customization capability (for final product), reducing lead time while maintaining product variant flexibility.
3Manufacturing precision
If make-to-order process is used at finished item level, then procurement quantity matches sales order quantity, but production flexibility is reduced
Solution Approach 1:
The system shifts the make-to-order approach from the finished item level to the material/component level. Instead of procuring and producing only what is explicitly ordered, the system forecasts material requirements and maintains master data, creating a multi-dimensional procurement strategy that balances precise order fulfillment with production flexibility for handling variations and customizations.
Data Source
AI summary
In various implementations, a sales order are received from a sales order requester for at least one good, wherein the sales order includes product options for ordered goods via a sales product requirement specification object. A sales order confirmation is generated at least partially based on the sales order and a plan for production of the ordered goods. The ordered goods to be produced based on the plan are allowed. And an outbound delivery request defined by a planning product requirement specification object is generated, wherein the ordered goods are delivered to the sales order requestor based on the delivery request.