With the SAP Business ByDesign Make-to-stock business scenario Your company can produce goods and put them into inventory. You can then meet customer requirements such as customer or service orders from the inventory. You define demand control methods to determine the make-to-stock strategies best suited to the business needs of your company. You can plan periodic requirements using forecast requirements. Customer requirements are then covered by the produced or procured inventory, and they consume the forecast demand according to the predefined demand control methods.
The multi-level procurement planning enables you to plan the incoming goods for all requested products, including product specifications, in a timely manner. This in turn means that you can initiate the creation of purchase orders and production orders on time. When all the requested input products are in stock, you only need to create the production orders. The release of a production order triggers the creation of a production lot and all production tasks (provision, manufacture and testing) that are required to start production. Use inspection tasks to ensure the quality of your manufactured products.

As soon as the final confirmation has been received, the system automatically posts the produced stock in the predefined production output area and triggers the update for stock and financial accounting. You can now use the return tasks to move the stock to the warehouse.

The business process planning procurement enables your company to carry out material and capacity planning efficiently. You receive an up-to-date overview of the requirements and access situation for a combination of product and planning area or for a combination of product, product specification and planning area. The multi-level planning run calculates the required access and then, taking into account the selected product specification, creates the corresponding accesses and the network for verifications of pegged goods. When a planned order is created manually, you must enter product specifications for certain products.
If planning problems arise, the system throws exceptions to notify you. You can then decide which action to take, for example you can create or update planning proposals manually. The utilization leveling function is also available to check the feasibility of the procurement plan and to balance the capacity requirement if it is not possible to increase the available capacity.

With the business process Create and Prepare Production, you can create production requests based on production proposals, create, schedule, and release production orders, and you can assign production tasks to the relevant employees.
When you create a production order, a quality inspection is created at the same time, provided there is an inspection process in the associated production model. This quality inspection is then released together with the production order.
As soon as the production order is released, an inspection task is created to carry out the quality inspection.

All the tools you need for an economical production process are available to you in the Execute Production business process. The production tasks are forwarded to task folders and processed there by the responsible employees. The tasks contain all the information required for production. There are three types of production tasks: provision, manufacture and testing. These tasks enable an integrated supply of production, manufacture and testing. Monitoring tools are available during execution to give you a complete picture of the status of each execution process. To complete the production run, record the results using the feedback functions. When reporting back, execution data such as material flow or activity data are recorded and saved. In addition, the update of the inventory and the data in the financial accounting is initiated.

You can use the Process Inspections in Production business process to edit, monitor, and analyze product inspections.
Part of this process is to take and prepare samples, carry out the test, record results, report activities and quantities, make decisions about the quality of the inspected products and, if necessary, initiate corrective or preventive measures.
Quality inspections are triggered automatically by the system and can be processed using inspection tasks. Test tasks are initiated by a higher-level business process, for example the production process.

Source: help.sap.com, as of March 2017