Manufacturing SAP

Repetitive or Discrete SAP Manufacturing What is the Right Fit for my Business?

Publish Date: December 13, 2017

Introduction
In most manufacturing scenarios, the project team decides upfront whether the need is for a REM (Repetitive Manufacturing) or Discrete solution to be implemented. But there are many instances where multiple decisions around whether the need is for REM or Discrete. A clear understanding of both these industry solutions is essential for the present manufacturing process.
Repetitive Manufacturing
Repetitive manufacturing is a period-based production and not an order or lot based. The same product will be manufactured over specific periods of time, and they might not change frequently. The product is processed at a constant flow, and interim products are not stocked. Order confirmation is done from back-flushing, and the settlement is carried through the product cost collector. Planned orders are sufficient to carry out the shop floor activity.
Discrete Manufacturing
Discrete Manufacturing is about the manufacture of a product based on production orders and is characterized by requirements that do not occur on a regular basis. The Discrete Manufacturing scenario can be used in different variants, in production by lot size, make-to-order production, and assembly processing. The variants differ mainly in the planning conducted before-hand and about the sales order. Confirmation and costs will be settled order wise.
Understanding Some Key Differences

REM	Discrete
Confirmation is done against planned orders, firmed planned order or material	Confirmation is done against released production order
Planned orders can be set with firmed indicator when the schedule is firmed	Planned orders need to be converted to production order
Delivery tolerance is not predefined	Delivery tolerance can be predefined
Backflush components	Either backflush or manual goods issue of components
The settlement is not for each planned order. It is against internal order (per production version)	Each production order is settled
Delete the residual/unprocessed qty planned orders. Deleted orders cannot be displayed, and they are removed from the system.	Technically complete (TECO) the production orders. TECO orders or Closed orders can be displayed in later time.
Operation based confirmation is not possible	Operation based confirmation is possible
No Shop paper/Traveler printing	Shop paper printing function is available
Status management is not applicable	Production orders have status controls

Conclusion
Discrete manufacturing is applicable more in order-based manufacturing scenarios where the product change is frequent in a different sequence of work centers (complex routings). Semi-finished products can be put into interim storage, and components staged concerning the order. Discrete Manufacturing facilitates complete confirmation (backflush) for individual operations or orders, and the order-based cost is controlling.
Repetitive Manufacturing is most suitable for manufacturing scenarios which involve period-based production (production with certain quantities per period) and where the product produced remain unchanged over a longer period. There is a steady flow through production (simplified routings) and semi-finished products are often directly processed without interim storage. The components are staged at lines periodically and anonymously. There is reduced control effort (no status procedure) and a period-based cost controlling. A raw material for production is consumed and product delivered, there is lesser time wastage.

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Velmurugan Arunachalam -Solution Architect – SAP PP/QM @ YASH Technologies