In classic ECC, the areas of development and production are separated by a chasm that can only be overcome with various tools, third-party systems or additional interfaces. The result is an increased complexity of the system landscape, which is accompanied by an increased susceptibility to errors in the processes. With S/4HANA, SAP has addressed this problem and, starting with version 1709, has integrated a solution into the system with Production Engineering & Operations (PEO) that overcomes this divide with on-board resources alone.
DEVELOPMENT AND PRODUCTION COMBINED
As already mentioned, there is no native interface in ECC for the data transfer of 3D models from CAD or PLM systems to SAP PP. Many users therefore previously handled lists and drawings that they had to transfer manually to the ERP. Under S/4HANA, SAP has introduced the new TDMI interface (Team Data Management Interface), which communicates directly with common CAD and PLM systems such as those from Siemens, Solidworks, Windchill or Teamcenter. This makes it possible to enrich engineering bills of materials with 3D models and additionally with PMI data (Product Manufacturing Information) such as tolerance specifications or spot welds and to transfer them to the ERP without losses.
PEO: FUNCTIONS AND HIGHLIGHTS
A standard process in PEO starts when a modified or new BOM for a product is transferred from the PLM system. PEO then converts, for example, an EBOM into an MBOM using drag-and-drop. The module can handle both engineering BOMs (EBOM) and all types of manufacturing BOMs (MBOM).
With the "Visual Enterprise Manufacturing Planner" (VEMP), PEO also 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.
For the management of changes, PEO is assigned the Change Record function, on the basis of which an impact analysis can be performed. The "Impact-Analysis" app in particular closes a gap that has been identified in many SAP projects to date. It thus supports production in quickly and efficiently determining all production objects that are potentially affected by a change - such as routings, bills of material, production orders, or purchase orders. As a result, it provides the central tool for analyzing, planning, and managing changes. A linked, integrated QM module also enables inspection during production. More details on this topic can be found in the blog article: Documenting changes sustainably with S/4HANA Change Record.
A highlight that is predominantly found in MES software solutions is the use of operation activities. This allows production planners to represent individual production operations of the routings in multiple activities in order to significantly increase the level of detail. In doing so, they have full functionality, for example, compared to the familiar sub-operations from ERP. All aspects of a workflow, such as component assignment, work instructions, inspection characteristics, production resources/tools, documents, acceptances, qualifications and task managers can thus be assigned to operation activities.
INTEGRATED, BUT COSTLY
The avoidance of data silos and the reduction of system complexity characterize integrated applications. Since version 1709, PEO has been a fixed component of S/4HANA and can be activated via customizing under the item "Manufacturing Technology and Manufacturing Processes". However, despite the deep integration, use is not free of charge. SAP charges license fees for it.
The situation is different with 3D integration. Like PEO, it is not part of the functional scope of S/4HANA. To use it, users must implement the Visual Enterprise Manufacturing Planner (VEMP) tool, which is also subject to a fee.
CONCLUSION
Users make the collaboration between development and manufacturing as well as the data exchange between both areas considerably more efficient with PEO. Especially if their portfolio includes complex products whose design or composition is constantly changing, for example due to legal requirements. In addition, PEO, in contrast to classic PP, enables a considerably higher resolution of the production process, in which the individual steps can be linked to operation activities, including detailed work instructions for production employees. A high degree of flexibility with regard to technical changes is ensured by the Change Record and Change Impact Analyses apps - even if the production process has already started, as this also allows a comprehensive analysis of the impact of changes to be displayed. Advanced data recording capabilities for serialized parts and batches also ensure product traceability and a detailed production action log that supports root cause analysis, among other things.
Users make the collaboration between development and manufacturing as well as the data exchange between both areas considerably more efficient with PEO. Especially when their portfolio includes complex products whose design or composition is constantly changing, for example due to legal requirements.
