The SAP PEO platform is aimed at industries that are involved in discrete manufacturing in the broadest sense. Intelligent networking of processes such as order management and production control (Production Order Management & Control), work execution (Operations), and tracking and quality assurance (Tracking & Genealogy) enables an integrated, efficient, and, above all, economical process chain from product development to production to be realized - even with batch size 1.
In detail, this means that PEO consolidates the manufacturing process from engineering to production, while giving users all the tools they will need to handle sophisticated and complex products. This includes functions to model the manufacturing process in detail, or to give guided instructions to workers and record the progress of manufacturing. Due to the high flexibility of the solution, it is also possible to incorporate design changes once the manufacturing process has already started.
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, production efficiency 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 one takes 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.
The life cycle of a product begins with the EBOM - Engineering Bill of Materials, a type of technical bill of materials that depicts the planned product. Once the product is technically developed, it is handed over to production in the form of a manufacturing bill of material or MBOM. Three tools for the handover-to-manufacturing process help to manage the reconciliation of the engineering bill of material with the manufacturing bill of material: SAP Product Structure Synchronization (PSS), SAP 3D Visual Enterprise Manufacturing Planner (3D Vemp) and Intelligent Enterprise Handover, which also combines functions of the first two tools.
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.
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 activities 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.