PEO is deeply integrated into the S/4HANA core and promises to eliminate the traditional separation between development and production - without any interfaces, media disruptions or Excel tables. But what exactly can PEO do? And for whom is it worth using? In addition to an overview of the solution, we have collected the most frequently asked questions and answered them in a compact and practical way.
1 Who is SAP PEO intended for?
Originally developed for industries with complex production - for example aerospace & defense or special machine construction - PEO is now of interest to any company with discrete production. Especially when products are modified during production or when work instructions and documentation requirements are high.
2 What makes PEO different from traditional SAP production processes?
One thing is clear: integration. While development and production traditionally work with separate parts lists and work plans, PEO brings both into a consistent model. Design, production and process control finally speak the same language - directly in the system.
Traceability also plays a central role in PEO. The change record enables simple and seamless traceability from the end product to the original e-bom. Every activity is also saved in the production order and can be evaluated at any time using standard apps.
3 how does it work with the parts list?
The design BOM (E-BOM) is converted into a production-ready M-BOM using Visual Enterprise Manufacturing Planner (VEMP). Both are version-controlled and can be active in different versions. The transfer is not only automated, but also traceable (via the change record) - including all changes. This creates clarity in assembly and saves queries.
4 And what about the work plan?
The production routing in PEO is versioned and structured at activity level. Each activity is assigned to a specific work step - including the associated components and documents. This turns a theoretical plan into a real process that can be controlled down to the last detail.
5 What does this mean for production control?
Production orders access the versioned master data directly - i.e. the exact combination of M-BOM and routing that has been released. Changes to the operations are possible via the apps and are also recorded with Change Record. This can mean that these changes, saved in a production routing, can later be transferred to a production routing as a new version.
6 How is work distributed in production?
The Assign work app can be used to assign process activities to individual workers or teams - specifically according to qualifications, updated daily and transparently. The My worklist app shows each employee exactly what they have to do - including feedback options.
7 And how does the feedback work?
It's simple: employees can use the Perform work app to record feedback on their activities - be it via the order number, the material or a serial number. This makes it possible to see at any time where work is currently being carried out in the process - and where it is not.
8 are there also possibilities for analysis?
Yes, and quite comprehensively. The product genealogy allows you to trace exactly what happened in an order: which component was installed when, which errors were reported, which actions were carried out? If you want to go even deeper, you can use the action log - including all manually recorded interventions, status changes and comments.
9 are there any restrictions?
PEO follows clear rules: Dummy assemblies are not permitted in the M-BOM, and mass processing via classic transactions such as CEWB is also not possible. Routings with alternative sequences or milestone confirmations must also be cleaned up in advance. A clean database is therefore mandatory - but also the key to clean processes.
10 can PEO also do detailed planning?
No, PEO is a production control tool. PP/DS is responsible for detailed planning. Like normal production orders, PEO production orders are also planned in PP/DS.
11 are there any additional costs?
Yes, PEO requires a license.
12 Why is it worth switching to PEO?
Because PEO makes many things easier: no interfaces, no duplicate data maintenance, no media discontinuity between development and production. Instead, there is full transparency, integrated reporting and a system that maps processes as they actually run - not as they were intended on paper.
SAP PEO combines design and production data in a consistent model - versioned, traceable and directly integrated in the S/4HANA core.
