Configure to order – As for the Make to order principle, the final operations of the value chain are made to order. Although pre-production might be done by using the Make to stock principle, expensive steps of the value chain, or steps that create variants, are triggered by a sales order or transfer order. Make to order – Standard products are made to order or finished to order. Make to stock – This is the classic manufacturing principle, where products are produced for stock, based on forecast or minimum stock refill (the latter is typically calculated based on forecast or historic consumption). To select the manufacturing principle that best applies to a particular product and related market, you must consider the requirements of production and logistics, and also customer expectations about delivery lead times. The manufacturing part of a project can be delivered through any of the other order types. Project – A manufacturing project combines products and services with a given schedule and budget. Kanban – Kanbans are used to signal repetitive lean manufacturing processes that are based on production flows, kanban rules, and BOMs. Batch orders use Formula type BOMs and routes. Batch order – This order type is used for process industries and discrete processes where the manufacturing conversion is based on a formula, or where co-products and by-products can be end products, either in addition to or instead of the main product. Production orders are based on bills of materials (BOMs) and routes. Production order – This is the classic order type to produce a specific product or product variant in a given quantity on a specific date. In other words, all order types can occur during the end-to-end process of producing one finished product. Supply Chain Management can apply the various order types in a mixed mode. Mixed mode manufacturingĭifferent products and production topologies require the application of different order types. Typically, actual cost methods require accurate reporting on the job level, whereas periodic costing methods allow for less granular reporting of material and resource consumption. The choice of the cost measurement methods also defines the requirements for reporting about material and resource consumption during the production process. Lean manufacturing is implemented based on the backflush costing principle. Supply Chain Management supports both actual cost (first in, first out last in, first out moving average and periodic weighted average) and standard cost methods. The production process is typically influenced by the cost accounting and inventory valuation methods that are chosen for a specific production process. 
This integration supports the information flow that is required to complete the manufacturing of a finished item.
The Production control module is linked to other modules, such as Product information management, Inventory management, General ledger, Warehouse management, Project accounting, and Organization administration.
Different types of products require different manufacturing processes. As each step is completed, the production order, batch order, or kanban shows a change in the production status. Each step in the life cycle requires different kinds of information to complete the process. It ends with a finished, manufactured item that is ready for either a customer or another phase of production. The life cycle begins with the creation of the production order, batch order, or kanban. The production of products, a process that is also known as the production life cycle, follows specific steps that are required to complete the manufacture of an item. It describes the various stages of production orders, batch orders, and kanbans, from order creation to closing of the financial period. This article gives an overview of the production processes.
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