Dynamic Order Processing

The general idea behind Dynamic Order Processing (DOP) can be found in what is usually referred to as make-to-order production. The functionality involves configuration possibilities, pegging, and actual costing for customer orders, purchase orders, and shop orders. Basically, all of the necessary components to build a final product are ordered for each customer order and managed/monitored by DOP ID, so-called Seiban in Japanese. 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. The method is widely used in different types of production and is characterized as follows: 

• In general, the total lead time is rather long; however, it is easy to track the progress of a component's orders by DOP ID.
• Each component's order due is defined by DOP ID; therefore, it can be easily adjusted if necessary.
• Actual cost data is gathered by DOP ID and can be utilized for management purposes.

IFS/Dynamic Order Processing

IFS/Dynamic Order Processing is highly integrated with MRP and customer order processing to provide more flexible ordering capability for each product based on it's characteristics, as well as flexible and powerful management capability. It can very easily be applied to many different areas; engineer-to-order, make-to-order, assemble-to-order, and make-to-stock.

IFS/Dynamic Order Processing manages everything from flexible order structure creation, order release, order progress monitoring, and pegging to customer order and shipping. It is a part of IFS/Manufacturing, but it is also integrated with IFS/Distribution IFS/Project and IFS/Financials. The Inventory module is common to IFS/ Manufacturing and IFS/Distribution. The modules work together so that you can automatically create dynamic orders directly from a customer order in IFS/Distribution or create dynamic orders independently and peg them to customer orders when you need to do so. Similarly Integration of DOP with IFS/Project enables users to create dynamic order headers directly from IFS/Project or create DOP headers independently and connect them to IFS/Project activities.

In IFS/Dynamic Order Processing, you can:

• Define necessary basic data for Dynamic Order Processing.
• Easily create an order structure and maintain it.
• Specify whether netting should be done for each DOP ID or DOP order; therefore, it is possible to control at the detail level.
• Net any excess DOP order and/or excess inventory.
• Provide an efficient ordering capability by integrating with MRP and customer order processing.
• Monitor the progress by DOP ID, making it possible to take proper action in time.
• Calculate standard, estimated, and actual cost by each DOP ID.

A comparison between DOP and MRP

DOP is a way of planning, focused on the final product. On the other hand, MRP is a component based mode of planning. In MRP, planned orders are generated for each type of components considering their characteristics, e.g., lot size, lead time, etc.