P2M 101 ยท PROCESS OVERVIEW
What is Plan to Make?
Turn demand into feasible manufactured supply, then use actual production results to improve the next plan.
Plan to Make flow
Select any stage to explore
How the process works
Plan to Make is a repeating planning-and-execution loop. Demand creates the requirement, MRP translates it into dated supply proposals, planners make the proposals executable, production turns components into finished goods, and inventory movements give the next planning run a more accurate starting point.
DEMAND STRATEGIES
MTS and MTO use the same P2M engine
Make to Stock starts with forecast or planned independent demand and replenishes common stock. Make to Order starts with a sales-order-specific requirement and creates customer-specific supply. Both use the same planning, commitment, production, and receipt loop.
Planned independent demand drives supply into common stock for later consumption.
A customer-specific requirement drives assigned supply for that order.
Shared execution: Both strategies use planning, commitment, production, receipt, and actual-result feedback; the demand source and stock assignment differ.
- 01
Demand Demand
Demand can be forecast or planned independent demand for Make to Stock, a sales-order requirement for Make to Order, or another planning requirement. Forecast planning is one capability, not the definition of demand.
Creates Planning requirement
- 02
Plan MRP
MRP nets available supply and demand, explodes BOMs, creates dependent requirements, calculates dates, and proposes supply. Externally procured proposals hand off to Procure to Pay; in-house proposals stay on the P2M path.
Creates Dated supply proposals and dependent requirements
- 03
Commit Commitment
Planners review, firm, reschedule, or convert proposed supply. A planned order becomes a production order when in-house supply is committed for execution.
Creates Firmed supply or released production order
- 04
Make Production
The released production order consumes components and capacity, records operations and confirmations, and captures yield and scrap.
Creates Confirmation, yield, scrap, and consumption evidence
- 05
Receive Inventory
Goods receipt turns finished output into available stock and records actual quantities, consumption, stock status, and valuation. Those actuals become the next planning condition.
Creates Goods receipt, stock, valuation, and next-planning evidence
PLANNING EVIDENCE
Connect demand to an explainable supply result
This lens answers a different question from the lifecycle above: what evidence proves the result at each ownership boundary?
ENABLING REFERENCES
Master data enables the loop; it is not a step in it
BOMs, routings, production versions, work centers, lead times, inventory, and capacity make planning and execution possible. A production order is the execution object created when committed in-house supply moves into production.
CONTROL POINTS
What keeps the plan usable?
A technically successful MRP run is not enough. The demand signal, master data, capacity assumptions, and execution feedback must all describe the same operating reality.
Demand quality
Versions, time buckets, forecast review, and exception handling keep noise or bias from becoming unnecessary supply.
Explore demand planning BEFORE EXECUTIONFeasible proposals
Lot sizes, lead times, procurement type, production versions, firming, and planner review turn shortages into realistic decisions.
Explore supply proposals AFTER EXECUTIONAccurate feedback
Timely confirmations, goods movements, stock status, and count corrections prevent yesterday's variance from distorting tomorrow's plan.
Explore inventory feedbackExplore the planning, production, and control capabilities that make Plan to Make work.