05 March 2024

PEO: high efficiency and quality even with small batch sizes

SAP's PEO module (Production Engineering and Operations) makes an important contribution to an integrated, efficient and, above all, economical process chain from product development to production by intelligently networking all process participants in production.

SAP PEO provides companies with a tool that covers processes such as order management and production control (Production Order Management & Control), work execution (Operations) as well as tracking and quality assurance (Tracking & Genealogy) and thus supports work planners, foremen and workers in order execution. Until now, SAP's core system did not offer a sensible interface for transferring data to SAP PP - which is why users had to work with lists without 3D models. S/4HANA, on the other hand, is equipped with the new TDMI interface (Team Data Management Interface). In this way, engineering bills of materials (EBOM), for example, can be enriched with 3D models and additionally with PMI (Product Manufacturing Information) data such as tolerance specifications or welding points and transferred to the SAP core system. This enables complex workflows with a very granular resolution that are linked to 3D parts lists. An integrated QM module also provides an inspection during production.

PEO
Figure: Detailed documentation and tracking of the work steps carried out as well as simpler processing and feedback of serialized products increase the efficiency and quality of production

The module can work with both EBOMs and all types of MBOMs. Both types of BOMs are documented independently of each other in the change record through versioning. Different versions of both BOMs can be active. An "impact analysis" can be carried out on this basis. It is the central tool for analyzing, planning and executing changes to EBOMs and MBOMs - such as work plans or production orders - and thus supports production in quickly and efficiently determining all production objects that are potentially affected by a change. This results in a smooth transition of parts lists from development to production with the versioning of EBOMS and MBOMs.

Another highlight of PEO is the use of operation activities. This allows production planners to display individual production operations of a routing in multiple activities in order to significantly increase the level of detail. Compared to the familiar sub-operations from ERP, for example, they have full functionality. All aspects of a work process, such as component assignment, work instructions, inspection characteristics, production resources/tools, documents, acceptances, qualifications and task handlers can be assigned to operation activities.

Summary

PEO brings the concept of "people - technology - organization" even closer together by providing relevant information in even more detail and in a more digitalized form - for example by visualizing products and components in 3D. This further reduces the burden on employees in terms of decision-making and allows them to concentrate on the work to be carried out. Detailed documentation and tracking of the work steps carried out as well as simpler processing and feedback of serialized products increases the efficiency and quality of production and enables the adjustment of production activities/production orders during the ongoing production process.

Do you have further questions about SAP PEO? We will be happy to advise you!

Markus Aliskiewitz, Principal Consultant CONSILIO GmbH Contact us

Further informations:

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