Direct Production 
Use
If you do not use direct production, no link exists between the planned orders/production orders within the BOM structure. This means that the production order is scheduled individually and costs are dealt with individually for every assembly and component (with the exception of make-to-order production - here you can jointly consider the costs for several production levels). Once production is finished, the goods receipt for these components is posted in the warehouse so that goods issue of the components can be carried out for the production order of the superior assembly.
In contrast, the aim of direct production is to jointly regard scheduling and costing procedures for finished products, assemblies and components within a BOM structure.
The components that are produced directly are connected with each other in a multi-level collective order by entering the respective superior and leading planned order or production order. The collective order can be scheduled together and the costs incurred for the collective order can also be dealt with together (see
A further advantage of direct production is the simplified process: Components that are produced directly are not placed in stock and are consumed directly by the superior production order. No manual goods receipt/issue postings are necessary. These postings are increasingly executed automatically during the confirmation of an operation in a production order.
Direct production does not take into account available plant stock.
Prerequisites
- If you want to use direct production for a particular component all the time, you have entered the special procurement key for direct production in the material master for the component (MRP 2 view).
- If you want to use direct procurement for a particular BOM only, you have entered the special procurement key for direct procurement in the corresponding BOM item in the MRP data area. This entry overwrites the entry in the material master.
If you have activated direct production in the material master, you can switch off direct production for a particular BOM, if you deactivate direct production in the MRP data area of the corresponding BOM item under Explosion type. This entry overwrites the entry in the material master.
Features
Direct production is always triggered in the planning run.
- A special indicator is set internally for dependent requirements of the components that are produced directly. This passes on the relevant information for direct production to MRP. During the planning of these components, the system creates corresponding planned orders for direct production for these dependent requirements. The system displays dependent requirements and planned orders for direct production in a separate direct production segment in the MRP list and the stock/requirements list.
- When the planned order for the finished product is converted into a production order, all planned orders for subordinate components that are to be produced directly are automatically converted into production orders.
- The system adapts planned orders for direct production to changes in date and quantity of the superior assembly, even if they are firmed, so that the consistency of the collective order is kept. Manual changes are reversed.
When firmed purchase requisitions for direct production are changed, the system automatically sends the MRP controller a mail with the data for the change (see Message Transmission in Direct Production).
You can find further information on the direct production in the SAP document