SAP PEO

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SAP S/4HANA Manufacturing solutions

Manufacturing excellence redefined

SAP S/4HANA Manufacturing solutions give you an improved, simplified user experience. This enhancement to the digital core guarantees fully automated processing, along with brief maintenance windows and changeover times. End-to-end processes from order entry to the shop floor can be established to reduce scrap and lower costs.

S/4HANA Production Engineering and Operations (SAP PEO)

Bridges the gap between engineering and manufacturing by enhancing the SAP S/4HANA digital core.

SAP S/4HANA Manufacturing for Planning and Scheduling

Enhances the SAP S/4HANA digital core with fully integrated, highly developed planning functions.

Online sessions on Production Engineering and Operations (PEO)

Efficient, end-to-end processes from product development to production – with SAP PEO!

How you'll benefit

Why SAP S/4HANA Manufacturing solutions?

Simplified functionality

Improved planning capacities

Optimal adaptation

End-to-end processes from product development to production

Motivation

Companies in discrete manufacturing that produce a large number of variants often suffer from the fact that changes introduced during the development and enhancement of products are not always implemented fully or on time in ongoing production. This leads to high process costs (due to considerable reconciliation effort), quality costs (due to incorrect or defective products), and IT costs (TCO).

As a result of the evolving market for enterprise software, nearly all manufacturing companies now have a system landscape that consists at least of PLM, QM, ERP, production planning, and various shop floor (MES) systems. In the worst case, all of a company's products come from different sources and are only insufficiently integrated by means of interfaces. What’s more, they often lack required features. In addition to technical deficiencies, processes between departments are not clearly defined, which makes organizational workarounds necessary.
Objective

In S/4HANA Production Engineering and Operations (PEO), SAP has developed a product that maps the entire manufacturing process from development to production in a single, integrated solution for the first time. On this foundation, end-to-end processes can be implemented in a way that makes changes fully traceable. Product engineers, production and process planners, and production operators work hand in hand because they all use the same data and communication platform: SAP S/4HANA PEO.
Results
- Intelligent operator guidance
  The intelligent preparation and display of all the information and functions relevant to the current process step gives optimum support to shift managers and engineers during order processing. A mobile scanner or RFID reader is enough to identify a component or work step. As a result, the operator can be guided through the process using instructions, inspection plans, or drawings, which makes shop floor papers obsolete.
- End-to-end transparency
  Every process step performed for a single lot is documented. In case of deviations, the effects on other products and production steps can be identified immediately.
- Process reliability
  The controlled planning and execution of changes in production, combined with a strict release and blocking mechanism, increases process reliability. As a result, deviations are reduced and their propagation is contained.

SAP PEO processes

Production Engineering process

In Production Engineering, PEO provides extensive support to the following subprocesses: BOM Management, Production Process Planning, and integrated Manufacturing Change Management.

The workers, designers, and production planners involved can use a variety of apps to execute the Production Engineering subprocesses based on the same dataset. Among other features, graphical support for full BOM transfer practically eliminates the possibility of forgotten components. What’s more, version management and change records enable you to directly review all versions of documents like BOMs and work instructions. As a result, the effects of changes become visible immediately and can be used as a basis for better decisions.

Production Operations process

The Production Operations process encompasses the following subprocesses: Production Order Management & Control, Operations, and Tracking & Genealogy.

As an enhancement to standard order management in the SAP S/4HANA core, S/4HANA PEO supports the production process with additional MES features for the individual control of serialized components and finished products. As a result, custom products and assemblies can be steered through production individually within batch production. Intelligent dialogs guide the operator through the production process step by step, providing all the information relevant to a given serial number in the form of work instructions, quality characteristics, inspection instructions, or drawings.

SAP PEO process solutions

Production Engineering solution

The Production Engineering module manages and controls engineering change requests in production. Changes to engineering or assembly bills of material (EBOM/ABOM), documents, or specifications are examined with regard to their impact on production with the Change Impact Analysis app and summarized in a change record. The Manage Change Record app is then used to plan and execute one or more changes for implementation in production.

Depiction of the solution approach for Production Engineering from Scheer GmbH

Source: SAP

Production Operations solution

The Production Operations module supports process planners, shift managers, and engineers during order execution by providing all the information relevant to the product and operation at hand in an enhanced cockpit.
Every process step is logged and incorrect inputs are validated and displayed immediately. This increases process reliability and prevents expensive reworking.