Production Engineering & Operations (SAP PEO)

Intelligently network production processes and harmonize your production landscape! Create a common database for all process participants in the production chain with SAP PEO.

The SAP PEO platform is aimed at industries that are active in discrete manufacturing in the broadest sense and networks all process participants here. Designers, planners, production controllers, work planners and workers always work with the same database.

With PEO, SAP provides manufacturing companies with a tool that encompasses processes such as order management and production control (Production Order Management & Control), work execution (Operations), as well as tracking and quality assurance (Tracking & Genealogy), thus supporting work planners, foremen, and workers in order execution. Through this intelligent networking of all process participants in manufacturing, the new solution offers an important contribution with regard to an integrated, efficient and, above all, economical process chain from product development to production - even with batch size 1.

If you take a closer look at the business processes of manufacturing companies, you will notice the large number of heterogeneous system landscapes consisting of various PLM, QM, MES and ERP software solutions.
As a result, the efficiency of production suffers significantly. This is because engineering and order change processes cause high process and quality costs due to insufficient integration and the associated complex bidirectional system interfaces. This is especially true if you take into account the increasing product diversity due to Engineer-to-Order (ETO), Make-to-Order (MTO), Configure-to-Order (CTO) and Assemble-to-Order (ATO), which is typical for special machine manufacturing and its very complex products with a comparatively long lead time. This presents users in particular with the difficult task of establishing solid change management that meets their own and the customer's requirements.

SAP PEO functionalities

With the Visual Enterprise Manufacturing Planner (VEMP), SAP PEO offers a new tool for MBOM management that enables the transfer of the design structure to the manufacturing structure with the help of an interactive 3D model. In this way, the created routings are linked to the corresponding model data and displayed in 3D form.

  • Until now, SAP's core system did not offer a reasonable interface for data transfer to SAP PP - which is why users had to deal with lists without 3D models. S/4HANA, on the other hand, is equipped with the new TDMI interface (Team Data Management Interface). SAP PEO thus understands all common CAD and PLM systems, such as those from Siemens, Solidworks, Windchill or Teamcenter
  • In this way, for example, engineering bills of materials can be enriched with 3D models and additionally with PMI (Product Manufacturing Information) data such as tolerance specifications or spot welds and transferred to the SAP core system. This enables very granularly resolved complex workflows that are linked to 3D BOMs. An integrated QM module also provides inspection during production
  • Impact analysis helps manufacturing quickly and efficiently determine all manufacturing objects potentially affected by a change - such as routings, bills of material, production orders, or purchase orders
  • In engineering, the impact analysis can be used as a where-used list to see where an attached object, for example a material, is still being changed. This makes it possible to identify parallel changes at an early stage and, under certain circumstances, to merge changes
  • The Change Record bundles the SAP objects to be changed and thus forms the central link in the PEO. The change record workflow ensures that each processor, whether it is the requester, engineer or the person who has to approve the change, is always aware of what is currently being changed and what the current status of the changes is
  • The change record historizes changes and decisions, so that in case of future queries, it can be quickly shown why a change was made
  • Since the FPS02 release in spring 2021, the new Change Record can reuse the proven Process Route instead of having to use Flexible Workflows. The Process Route provides more functionality and automation, allowing end users to focus on what's important: Their work

For the entire SAP PEO functions, a variety of user-friendly applications are available in the system in the SAP Fiori Launchpad in addition to classic GUI transactions. On this basis, it is possible to implement and establish end-to-end processes with seamless traceability with regard to engineering changes. This provides designers, planners, production controllers, work planners and workers with a platform that accesses the same database.

  • Operation activities are features that are predominantly known from MES software solutions. With this, production planners represent individual production operations of a routing in multiple activities in order to significantly increase the level of detail
  • For example, you have full functionality compared to the familiar sub-operations from the ERP. All aspects of a workflow such as component assignment, work instructions, inspection characteristics, production resources/tools, documents, acceptances, qualifications and task managers can be assigned to operation activities in this way

Take advantage of SAP PEO

  • Consistent data management and better end-to-end process towards manufakturing
  • Clearer understanding of impact of changes on customer orders or manufacturing processes
  • Traceable chaining of processes in the company
  • Better understanding of production processes from design to real time
  • Faster performance of processes
  • Lean and optimized processes with a workflow tool in the background
  • Easier traceability of processes through workflow control
  • Clear overview of the processing of individual operations of production
  • Simple serial number processing in discrete manufacturing as part of production orders
  • Effektive Steuerung des Fertigungsprozesses aus der Verwaltungs- & Konstruktionssicht
  • Transparent overview of resources
  • More efficient resource planning in production or order allocation
  • Faster and better response in the event of interruptions or quality problems

Efficiently network all process participants in your production chain. We will be happy to support you with our expertise in harmonizing your production landscape.

Dominik Karosser, Partner CONSILIO GmbH

Our services for you

  • Workshop for end-to-end process definition and its validation
  • Implementation and consulting of the SAP PEO solution
  • Implementation of customized and customer-specific extensions
  • Targeted error source analysis for better personnel planning
  • Hypercare and Go-live Support
  • Optimization of master data quality
  • Creation of clear processes
  • Concept for better production control overview



In the SAP in der Produktion special issue of DIGITAL MANUFACTURING magazine, issue 5/21, Dominik Karosser, partner at CONSILIO GmbH, shows how the PEO platform (Production Engineering and Operations) makes an important contribution to an integrated, efficient and, above all, economical process chain from product development to production through the intelligent networking of all process participants in manufacturing - even with batch size 1.

Read the article


The integration of SAP PEO in S/4HANA does not mean that it replaces classic SAP production planning, but rather that it must be thought of as a supplement. All production planning functionalities such as BOM and routing explosion or order creation and release are still available and act completely homogeneously with the new applications and functions.
The operations are mainly used for planning, scheduling and costing, whereas the newly introduced activities are used in store floor execution. The production of serialized assemblies also represents a special feature. Here, Order Management and Order Control as modules of the PO offer extended track and trace functionalities in the context of serialization.
The well-known worklist, which in industrial companies is often created in SAP with the help of Excel or Z-Tools, can now be called up directly in SAP PEO. The new solution differentiates between personalized work queues for workers or workstation/resource-based queues. Backlogs, defects and buyoffs can be initiated directly from the UI (Perform Operation Activity) created for the worker.
All information accumulated during the execution of activities, as well as all backlogs, defects and buyoffs are documented in the action log - at serial number granularity. This increases process reliability and avoids expensive rework. For the entire range of functions, in addition to classic GUI transactions, the system offers a variety of user-friendly applications in the
SAP FIORI Launchpad.
On this basis, it is possible to implement and establish end-to-end processes with seamless traceability with regard to engineering changes. This provides designers, planners, production controllers, work planners and workers with a platform that accesses the same database.

Intelligent networking of complex production processes!

Benefit from our expertise.

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