S4 PEO 1809 L2 - July19

S/4HANA Manufacturing for Production Engineering
and Operations
July, 2019
PUBLIC
Overview
SAP S/4HANA Manufacturing for Production Engineering and Operations
Apps and Capabilities
Production Engineering Production Operations
Manufacturing Change Management Production Order Management & Control

Manufacturing Change BOM / Routing Shop Floor Order Production Monitoring
Assign new
Change Impact Version • Operation/Activities • Qualifications required
BOM versions
Record Analysis Management • 3D Visuals • PRTs
• Work Instructions • Buyoffs Engineering Change
• Data Collection • … Incorporation
BOM Production Process Planning
Management Complex Assembly Execution
Manage Manage Standard
Manage BOMs Shop Floor Routings Texts Non-Conformance /
• Operation/Activities Work Assignment Defect Handling
• 3D Visuals & Work Queues
• Work Instructions Manage Qualification
• Data Collection Requirements Tracking of Batches
Visual Enterprise • Qualification required and Serialized Parts
Manufacturing • PRTs Perform Operations
Planner • Buyoffs Manage Buyoff
Templates and Activities Action Log & Genealogy
• …
Major Assemblies / Installation Kits
Model-Unit-Effectivity
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

Production Engineering
Production Engineering Overview
§ Production engineering bridges the gap between product engineering and production
operations by converting the product design into production process design that is the
basis for production order management and shop floor execution.
Production Engineering § Manufacturing change management orchestrates the end-to-end production
engineering process:
Manufacturing Change Management – Assign New BOM Versions informs about new EBOMs or MBOMs versions and triggers
the production engineering process.
– The Manufacturing Change Record is used to orchestrate the whole production
Manufacturing Change BOM / Routing engineering process and keeps track of all changes made to manufacturing objects
Assign new when incorporating a new EBOM version.
Change Impact Version
BOM versions – The Change Impact Analysis identifies all objects that are impacted by a product
Record Analysis Management engineering change.
– BOM and Routing Version Management controls the life cycle and usage of different
revision levels.
BOM Production Process Planning § The Visual Enterprise Manufacturing Planner is used to do the handover from the
EBOM to the MBOM by converting the design-driven EBOM structure into a
Management manufacturing, built-sequence driven MBOM structure.
Manage Manage Standard
§ Production process planning is used to create shop floor routings that include all
Manage BOMs Shop Floor Routings Texts information needed for production planning, production costing, and shop floor
• Operation/Activities execution:
• 3D Visuals – Operations are used for planning and costing purposes as in classic PP-SFC.
• Work Instructions Manage Qualification
Requirements – Operation activities are used for shop floor execution and describe in detail how an
• Data Collection
Visual Enterprise • Qualification required
operation has to be performed: work instructions, data collection required, qualifications
Manufacturing needed, PRTs, buyoff procedures, …
• PRTs
Planner • Buyoffs Manage Buyoff § Production process planning includes a set of “supporting” features:
• … Templates – In the Manage Standard Texts app, you can maintain a library of reusable text elements
for efficient work instruction authoring.
– Qualification requirements can be predefined for work centers and materials and are
inherited by related operations and activities.
– Buyoff templates can be defined and used during routing maintenance.

Manufacturing Engineering
Process Flow
Change Impact
Analysis
Manage
Visual Enterprise Production
Manufacturing M-BOM Version
Planner
Change Record
Manage § BOMs Manage Production
PLM Source-BOM unassigned § Routings
Routings Routing
BOMs § Production Orders Version
§ Purchase Orders
Production
Order Change Production
Management Order
Manage
Change Records
§ The picture above describes the typical manufacturing engineering process in PEO.
§ PEO receives new or changed BOMs from a PLM system and incorporates them into manufacturing master data and production orders (if required). The
source BOM can be an EBOM, preliminary MBOM, or shop floor MBOM.
§ The change record is used to analyze, plan, and execute the changes required in a change cycle. It is an integrated environment that provides visibility and
access to all artifacts involved in the change cycle. Manufacturing engineers can plan and execute the changes to MBOMs, shop floor routings, production
orders and so on directly from the Change Record app.
§ The change impact analysis supports the manufacturing engineer to identify all manufacturing objects that are impacted by a change.

Manufacturing Change Management
Manage Unassigned EBOMs
§ Display new/modified engineering BOMs
waiting for manufacturing handover as a
worklist.
§ Assign EBOMs to relevant change records in
the context of the planning scope.
§ If the relevant planning scope and change
record are already available, they are
displayed and user can select them.
– Also allows you to create them quickly with
most important attributes.
§ Handle multiple versions of EBOMs.
§ If changes are made directly to the MBOM and
not from the EBOM-MBOM, handover is not
required. The app, Manage Unassigned
MBOMs can be used to assign the MBOMs to
a change record.

Manage Unassigned EBOMs
§ The net change of an EBOM version displays
the delta between the given version and its
previous version. This gives you an idea of the
scope of the change that has taken place in
the BOM.
§ The EBOM assignment need not be always

done one by one. While performing the
assignment for one EBOM, the system
automatically identifies related EBOMs from
the list which may be grouped together in the
same change record and allows the user to
assign them together in one click.

Manage Unassigned MBOMs
§ Sometimes the engineering changes may
come in the system directly as a new version
of the manufacturing BOM (not engineering
BOM), so no handover or EBOM to MBOM is
required.
§ In such cases, it is the MBOMs and not the
EBOMs that trigger the changes. Hence the
MBOMs are assigned to a change record to
get the change process started.
§ The Manage Unassigned MBOMs app works
similarly to the Manage Unassigned EBOMs
app but, since the EBOM to MBOM handover
is not required, the planning scope is not used.
– You can simply select the MBOMs and
assign them to an existing CR or create a
new CR.

Manufacturing Change Record
§ The Manage Unassigned EBOMs app creates
and updates the change record with the
EBOM and planning scope.
§ The change record defines the scope and
phases of a change cycle.
§ It documents all changes by adding the
impacted and related objects to a change
record.
§ Serves as an integrated entry point to access
all related objects and to trigger actions.

Manufacturing Change Record - Items
§ The primary purpose of a change record is to
contain references to all the objects that are
relevant for the change cycle.
§ The following objects are supported:
– Master data: EBOM, MBOM, shop floor
routing, planning scope
– Transactional data: Production order
§ Change items can be configured depending
on the change record type.
§ The context of the object in the change record
is indicated using the change relevance. For
example ‘Create’, ‘Change’, ‘New Version’,
‘Reference’ and so on.
§ The status network of the change record is
configurable.

Manufacturing Change Record - Navigation
§ You, as a manufacturing engineer, can use the change

Manage BOM record as a single entry point where you can access all
the relevant objects for the change cycle.
Manage § The change record enables you to navigate to the
Routing
corresponding apps to view or manipulate the objects.
BOM
Handover-
Change VEMP
Record
Manage Order
Impact
Analysis

Manufacturing Change Record – Workflow
§ Workflow can optionally be used to coordinate
work among the different contributors and
stakeholders of the change process.
§ Workflow can be defined using the ‘Process
Routes’ tab in the change record.
§ One or multiple sequential steps can be
created using the workflow. The steps define
the task details and also the agent property
that is used to determine the recipient of the
task when the workflow runs.
§ You can also select the change record status
that should be triggered when the step is
invoked. This enables the automatic transition
of the CR status via workflow step completion.
§ When workflow is running, the recipient is
determined and the task is delivered to his/her
inbox.
§ From the inbox, the agent can navigate to the
Manage Change Records App to view or make
changes to the change record. Also the
available actions can be performed for the
task itself.

Change Impact Analysis
§ The change impact analysis identifies all
manufacturing objects impacted by a BOM or
routing change. Objects considered are
BOMs, shop floor routings, production orders,
and directly related purchase orders
(MTO/MTP/Direct Procurement) .
§ You can select one or more objects from the
context of the change record as the trigger
object for the analysis.
§ The analysis result can be displayed in a list or
in a network view mode. While the list is useful
to display all the impacted objects in a
consolidated manner, the network provides
insights on the relationships between the
objects.

Change Impact Analysis
§ Details of the impacted objects can be
visualized in the details area.
§ Items, operations, and operation
activities affected by the change are
highlighted to visualize where the impact
is.
§ In case of model/unit effectivity, the
change impact analysis also identifies
the units impacted by the change.
§ Some quick actions can be done for the
impacted objects, for example, add to
change record, hold order, and so on.

BOM Version Management
§ A new mechanism of version-controlled material BOM is introduced where
different change states of the BOM are represented using versions instead of
date effectivity.
§ The following table lists some important differences:
Attributes Classical BOM Version BOM
Identification Identified by material, plant, usage, alternative. Identified by material, plant, usage, alternative +
version.
Change states In case of BOM with history, the change states No change states of BOM header or BOM item.
BOM Alt 1 are identified using ECNs. Each version is a distinct instance of the BOM. Any
change in one BOM version shall not affect another
version.
01/01/17 01/07/17 Edit control The BOM alternative is always open for editing. Once released, a BOM version is frozen and does
ECNs are used to ensure the date effectivity of not allow any further changes. If changes are
<- Production Version (for Classical BOM) -> the change states. necessary, you have to create a new version of the
BOM alternative by copying the previous version.
BOM Alt BOM Applicability of MBOM alternative for production Applicability of MBOM version for production is
1Version 3 determination for is determined by the production version but determined by the production version. There is no
production applicable components are determined based on further determination of BOM components as per
BOM Alt 1 the production date. production date.
Version 2
Parameter Supported Unitized parameter effectivity supported from 1809
BOM Alt 1 effectivity OP.
Version 1 App access Accessible using legacy SAPGUI transaction as Not accessible via legacy SAP GUI transactions.
well as new FIORI ‘Manage Bill of Material’ app.
01/01/17 01/03/17 01/05/17 01/07/17
<- Production Version (for Version BOM) ->
Routing Version Management
§ The new shop floor routing is a version-controlled routing which enables
additional capabilities for the operation activities in the operations This, in
turn, enables an improved shop floor execution.
BOM Alt 1/Routing Group 1-Counter 1 § Supports many new functions including operation activities, work instructions,
buyoffs, qualifications, and change alerts.
01/01/17 01/07/17
§ The following table lists some important differences:
<- Production Version (for Classical BOM) ->
Attributes Classical Routing Shop Floor Routing
Identification Identified by group and group counter for task list Identified by group and group counter + version.
type N.
Change states In case of routings with history, the change No change states of routing. Each version is a
states are identified using ECNs. distinct instance of the routing. Any change in one
BOM V2 / routing version shall not affect another version.
Routing V3 Edit control Routing is always open for editing. ECNs are Once released, a routing version is frozen and
used to ensure date effectivity of change states. cannot be changed. If changes are required, a new
BOM V1 / version of the routing is created by copying the
Routing V2 previous version.
BOM V1 / Routing Applicability of routing for production is Which routing version and BOM version are to be
Routing V1 determination for determined by production version but applicable used for production is determined by the production
production operations are determined based on production version. There is no further determination of BOM
date. components and routing operations according to the
01/01/17 01/03/17 01/05/17 01/07/17 production date.
<- Production Version (for Version BOM) -> Parameter Supported Unitized parameter effectivity supported from 1809
effectivity OP.
(Determines a BOM Alternative and
Routing Group-Counter) App access Accessible using legacy SAPGUI transaction. Can be accessed using the new Manage Shop Floor
Routings app and using the SAP GUI transaction
(MSFR4).
Manage Production Version
§ The production version is the single
source of supply for in-house production
which provides the exact BOM and
routing alternative and versions to be
used for production for a given date and
order quantity.
§ The Manage Production Versions app
has been created and enhanced to
support the version-controlled BOM and
shop floor routing.
– You can only assign a released BOM and
shop floor routing version to a production
version.

MBOM Management
MBOM Management
Visual Enterprise Manufacturing Planner
§ Enables the handover of the engineering
structure to the manufacturing structure
assisted with an interactive 3D model.
– Source panel contains the EBOM structure
and the visual (multi-level BOM).
– Target panel contains the MBOM structure
and corresponding visual (multi-level BOM).
– Working panel is the editing area where a
single-level BOM can be extracted from the
target structure, and edited. The visual only
shows the corresponding visual of the
single-level BOM.
§ The components in the source panel are
disabled once they are fully
planned/converted in the MBOM.
§ VEMP reconciles the EBOM (source)
with the MBOM (target) to check
whether any component is over or under
assigned. If any discrepancy is found, it
is highlighted in the corresponding
nodes.
MBOM Management
Visual Enterprise Manufacturing Planner
§ VEMP allows you to restructure the
EBOMs in a different MBOM structure
using a quantity or parameter effectivity
based split or merge of EBOM
components into MBOMs.
§ You can create synthetic MBOMs which
are only relevant for manufacturing
using VEMP while ensuring the design
intent in the EBOM and the EBOM
component coverage.
§ You can load the routing in the working
panel to allocate the components to the
relevant operations.

Production Process Planning
Shop Floor Routing – Entry Screen
§ The entry screen allows you to search

for routings and to display, create, edit,
and delete routings, or to set a routing to
obsolete.
§ You can adjust the layout and the search
criteria to the individual needs of the end
user.
§ You can also create a new version or
copy a version to a new routing, and
release a routing.
§ Each version of the routing has a status.
Once you have released a routing
version, it cannot be changed.

Shop Floor Routing - Header
§ You can assign a version profile in the

routing header (controls successive/non-
successive versions, for example).
§ You can assign an MBOM to the routing
and either assign a manufacturing
change record (MCR) to the routing or
create a new one.

Shop Floor Routing – Operation Activities
§ Operation activities contain further

detailing options within an operation.
§ There can be several operation activities
in an operation that are executed one
after the other.
§ Operation activities can belong to the
following segments: Setup, produce, or
teardown.
§ The operation activities are executed in
production not the operations.
§ All aspects of the operation such as
component allocation, work instructions,
inspection characteristics, PRTs,
documents, buyoffs, qualifications, and
action handlers can be assigned to
operation activities.

Shop Floor Routing – Simultaneous and Any-Order Groups
Any-Order Groups for Operation

Activities
§ Enable operation activities to be
executed in any sequence on the shop
floor.
§ You define any-order groups during
routing maintenance. They are used to
group sets of operation activities that can
be completed in any sequence. Within
each group, however, you can also
define dependencies between activities.
Simultaneous Groups for Operation

Activities
§ Ensure that all operation activities in the
group can be executed simultaneously
on the shop floor.

Shop Floor Routing – BOM Management
§ One or more BOMs can be assigned

to a routing (depending on routing
profile).
§ You can assign MBOMs to the
routing that are not yet released.
§ You can upgrade to a newer MBOM
version without loosing the
corresponding component
assignments.
§ You can release an MBOM in the
routing application.

Shop Floor Routing – Component Allocation
§ You assign components to operation

activities in the corresponding
workspace.
§ The BOM items are displayed on the
left pane which shows the current
state of component allocation.
§ Components can be partially
allocated to different activities in an
operation.
§ You can explicitly define the
assembly sequence of the
components. Enforcement during
shop floor execution can be turned
on or off.
§ If available, a 3D visual can be
shown next to the MBOM item list. A
selected item in the MBOM list is
highlighted in the 3D image and vice
versa.
Shop Floor Routing – PRTs and Documents
§ You can assign PRTs

(equipment and/or materials) to
operation activities in the PRTs
tab.
§ You can assign documents to

operation activities in the
Documents tab.

Shop Floor Routing – Qualifications
§ You can assign one or more

qualifications to operation activities.
§ You can define the proficiency level
required for the operation activity.
§ Only an operator with the required or
a higher qualification is allowed to
perform the operation activity.

Shop Floor Routing – Buyoff
§ The buyoff is a process to signoff on a

complex task by getting it reviewed by
experts.
§ You can define a sequence of buyoffs
for an operation activity.
– You can also copy buyoffs using the
buyoff template.
§ A buyoff step consists of the description
and the team and/or function that can
perform the step.
§ Some buyoff steps may require
qualification checks too. These buyoff
steps can only be performed by
personnel with required qualifications.

Shop Floor Routing – Inspection Characteristics/Data Collection
§ You can define and assign inspection
characteristics to the operation activities.
These readings can be utilized for
quality management or for analytical
purposes such as root cause analysis.
§ You can use predefined master
inspection characteristics or create
inspection characteristics specifically for
the routing.
§ Characteristics can also be grouped
together to capture the readings in a
table format. See the section for Embedded
Data Collection to see how these grouped
inspection characteristics are represented in
table format.
§ You can copy appropriate characteristics
from other routings.
§ The data for the inspection is collected
by operators using the “Perform Work”
apps.

Shop Floor Routing – Work Instructions
§ You can define rich text work
instructions for each operation activity.
§ The work instructions editor enables you
to create content using rich text which
can be authored directly in the editor.
The editor supports features such as
background color, foreground color, font
selection, font size selection,
highlighting, and bulleting.
§ The instruction can also contain images
based on external source or using DMS
attachment service.
§ Standard texts can also be used to
enrich the work instruction content. The
standard texts are rich text snippets
which can be reused across several
work instructions.
§ Work instructions and standard texts
can be authored in different languages.
During execution, they will be shown in
the logon language of the operator.

Shop Floor Routing – Work instructions with embedded data collection
Interactive work instructions allow the

production operators to record the data
collection required for component serial
numbers and batches as well as the readings
for inspection characteristics:
§ Clickable hyperlinks can be added in the
work instruction which, when selected,
highlight the corresponding part in the
component list and the 3D model in the
Perform Work app.
§ Serial number and batch collection for
components can be configured.
§ The inspection characteristics can also be
collected multiple times in an easy-to-use
table format.

Shop Floor Routing – Action Handler
§ The action handlers contain business logic, for

example, checks or determinations.
§ You can assign different action events to
operation activities.
§ If a production operator triggers the action
during production order execution, the system
executes the checks or events associated with
the action handlers.

Shop Floor Routing – Copy/Paste and Favorites
You can copy and paste operations and

activities, but also OA-related objects such as
work instructions, inspection characteristics,
and PRTs within the same routing or to a
different routing.
Favorites are organized in folder structures:

§ Private folders and their content can only be
changed and used by the user that created
them.
§ Common folders can accessed and used by
all users, but can only be maintained if you
have special authorization.

Shop Floor Routing - Compare Routing Versions
Different versions of a routing can be
compared by turning the compare mode
on:
§ For each operation, operation activity,
and operation activity object (such as
inspections characteristics, PRTs, …),
you can see whether they are the same
in both versions or not.
§ The system also shows the attributes of
both versions for a given element (such
as standard values).
§ Work instructions are compared for all
available languages and differences are
highlighted.
§ You can easily copy operations,
operation activities, or operation activity
details from one version to the other.

Shop Floor Routing - Workflow
§ A workflow can be defined for
maintaining and reviewing a
shop floor routing.
§ Individual users will receive

workflow tasks in their inboxes
based on responsibility
definitions.
§ Manufacturing engineers can

access and perform their work
using these tasks.

Shop Floor Routing – Additional Capabilities
§ Production Version Creation and

Updates during Routing Release:
Streamlines the process for engineers - no
need to navigate to another app.
§ Routing Check:
You can execute this pre-check to make sure
that the routing is ready to be released.
§ Extensibility:
You can create customer-specific data for
routing header, operation and operation
activity.

Production Operations
Production Operations Overview
Production operations is about initiating, preparing, executing, and documenting the
actual end-to-end production process.
Production Order Management & Control:
§ The shop floor production order is an extended version of the PP production order:
Production Operations – Operations are used for planning and costing as in classic PP-SFC.
– Activities are used for shop floor execution and describe in detail how an operation
Production Order Management & Control has to be performed: work instructions, data collection required, qualifications
needed, PRTs, buyoff procedures, …
Shop Floor Order § Production monitoring provides a comprehensive overview about the expected and
actual status and progress of production orders and operations by automatically
• Operation/Activities Production Monitoring detecting exceptions, providing decision support, and immediate actions.
• 3D Visuals § Engineering change incorporation allows you to update production orders with the
• Work Instructions latest engineering changes.
• Data Collection
• Qualifications required Complex assembly execution is primarily designed for complex, low volume production
• PRTs Engineering Change processes with high change frequency and focus on manual work – typical for complex
• Buyoffs assembly and engineer-to-order businesses:
Incorporation
• … § Work assignment and work queues orchestrate the actual execution of production
order operations and activities. Operators can access their tasks in work center work
queues or supervisors can explicitly distribute work to their team members by moving
tasks to personal work queues.
Complex Assembly Execution § The perform operations and activities apps support production operators in executing
Work Assignment Defects Handling & their tasks by guiding them through the production process with the help of interactive
work instructions, 3D visual support, data collection with real-time valuations, and so
& Work Queues Production Holds on.
Perform Operations § Defects handling manages non-conformances by placing holds on orders or parts,
Genealogy & Action Log creating defects to be followed up by quality engineers and executing final usage
and Activities
decisions.
§ Serialized parts are tracked and traced during the entire production process. The
genealogy and action log collect all data and create a complete and detailed record of
how a serialized part has been produced and how an order has been executed.

Process Flow
Manage Production Orders /
Production
Production Order Confirmation Manage
Production Production
Holds Hold
Manage Work Perform
Operations Center Queue Operation
Defects Manage
Perform Defects
Activities Activity
Personal My work
Assign Work Work Queue queue Buy Off Manage
Buyoff
Serial Numbers
Genealogy
Action Log
§ The picture above describes a typical process flow of how production orders are executed.
§ Work is either triggered by work center queues or explicitly assigned to operators and accessed via personal work queues.
§ Holds, defects and buyoffs can be initiated from the worker UI (Perform Operation Activity). Holds can also be created from the monitoring apps.
§ All information gathered when performing activities plus all holds, defects, and buyoffs are documented in the genealogy and action log – on serial number granularity.
§ Production confirmations are automatically created and posted.

Production Order Management & Control
Shop Floor Order
This list shows the main functions of a
Serial shop floor order and on which level of
Function Order Operation Activity
Number granularity they are provided:
BOM and routing explosion x
Define due date and priority x § The classic PP functionality on order
Release x x and operations level stays untouched.
Scheduling x
§ Operations are mainly used for
Costing x
planning, scheduling, and costing.
Components required (x) x
Tool requirements (x) x § Activities are used to plan, execute,
Work instructions & 3D visuals x and document shop floor execution
Attachments x steps.
Qualification check x
Track production § When producing serialized parts,
(for example, start, skip, pause, complete) x x information is additionally tracked for
Batches/serial numbers consumed (x) x x each individual serial number.
Inspection characteristics (x) x x
Buyoffs x x § Some information is implicitly
Scrap (x) x x propagated from the activity to the
Production confirmation (x) operation level to ensure compatibility
with existing PP functionality.

Production Monitoring
§ Monitors production processes either on
production order or operation level to make
decisions in the most efficient manner.
§ Automatically detects exceptions/issues:

- Holds
- Delays
- Missing components
- Quantity deviations
- Quality issues
§ Provides contextual information for root

cause analysis and decision support:
- Order schedule and history
- Work center schedule and history
- Material availability in plant and supply area
- Operation activity details providing a complete
overview of the activity layer
- Information on the inspection characteristics
collected and the results in the operation
activity details
§ Provides immediate actions:

- Placing holds (for one or multiple production
orders simultaneously) and releasing holds
- Manual order adjustments including order dates
and quantities
- Order update with latest master data

Engineering Change Incorporation
§ Updating the shop floor order with the latest

version of the routing can be triggered from
the monitoring app or directly from the
change impact analyses.
§ Supervisors can create holds on production

orders that are about to be updated to
prevent shop floor people from starting
production execution.
§ Once the update has been done,

supervisors and shop floor operators are
alerted about the changes that were made.

Complex Assembly Execution
Work Assignment & Work Queues - Work Center Queue
§ Lists all operations to be performed at
a given work center.
§ Supports the operator to pick the next
operation to be worked on based on:
- Order and operation status
- Priority
- Scheduled start/end
- Start feasibility
- Issues (holds, missing components,
delays, …)
§ Additionally monitors all operations

currently in process at the work center.
The operator can see which
operations can be processed without
limitations and which ones are blocked
or can only be processed under
certain conditions. This provides the
production operator with more support
when deciding which operation to work
on next.
Work Assignment & Work Queues – Work Assignment and my Work Queue
Work Assignment:
§ Select all unassigned operation activities or check
existing assignments.
§ Assign one or more production operators to
individual operation activities to distribute the work
load.
§ Filter operators' names by matching work centers
and qualifications during an assignment.
§ View a number of current operator´s assignments.
§ Add and edit target duration for an operation
activity during an assignment.
§ Unassign operators from operation activities.
My Work Queue:
§ View the work (operation activities) that has been
assigned to an individual operator.
§ Sort, filter, and group the displayed operation
activities according to your needs.
§ Start working on operation activities by directly
navigating to the Perform Operation Activity app.

§ Supports the operator in performing and confirming
Perform Operations and Activities activities for orders or individual parts (serial numbers).
§ Validates proper execution.
§ Provides actions for reporting activity progress and status:

- Start/Undo Start, Skip/Undo Skip, Pause/Undo Pause,
Complete/Undo Complete
- Applying and releasing holds
- Partial confirmations
§ Supports the operator in understanding the task:

- Rich text work instruction
- Interactive 3D model
- Both linked to components list
§ Supports interactive data collection:

- Serial/lot numbers consumed
- Inspection characteristics
§ Ensures that the defined sequence of operation activities is

considered during execution, considering any-order or
parallel execution of operation activities. If multiple activities
are available to start you can choose which one you want to
start with.
§ Provides buyoff timeline increasing visibility on buyoff

history and upcoming steps.
§ Provides option to record defects during execution against

production order or individual serial numbers.
§ Provides the option of scrapping serialized parts.

Perform Operations and Activities – Interactive Work Instruction with Embedded Data Collection
§ In addition to the tabular data collection,
the Perform Operation Activity app
provides a layout in which the production
operator can collect component and
inspection characteristics details
interactively while reading through the
work instruction.
§ The Perform Operation Activity app

automatically switches to this layout if
predefined for the selected operation
activity.
§ Supports embedded pictures, links to

highlight components in the 3D viewer,
input fields for serial and batch numbers,
as well as quantities.

Perform Operations and Activities – Labor Tracking
The labor tracking functionality can now be
enabled for a work center that is later
associated to an operation in the shop floor
routing, to:
§ Track the time a production operator is logged on to
work on the operation activity at that work center.
§ Provide a possibility for multiple operators to
collaborate at an OA that has been already started
by another operator (by laboring on to the same
serial number at the same OA).
The system starts tracking the time spent on the
serialized product or an operation activity when a
production operator starts or labors on.
At the end of a shift, for example, one production
operator labors off an operation activity while another
operator can still continue working on the operation
activity.
The system automatically stops labor tracking for all
production operators currently labored on to an
operation activity on completion of the operation
activity.

Perform Operations and Activities – Manage Buyoffs
§ Buyoffs verify the proper execution of an
operation activity. Experts of different
domains have to check the work defined for
an operation activity and approve a buyoff.
§ The Manage Buyoff app shows all open

buyoffs which a domain expert can approve
(or reject).
§ Operation activities can have a buyoff

procedure with multiple steps. Every step
has to be approved by a different domain
expert. The buyoff app shows who already
approved buyoffs for the same operation
activity.
§ Ad-hoc buyoff lines can be added during

buyoff execution. That is, you can enhance
the buyoff cycle of an activity on the fly, if
necessary.

Defects Handing
§ Provides an option for production operators
to record defects during the execution of
production activities.
§ Supports the recording of a defect with and

without hold.
§ Displays the list of all recorded defects in the

Perform Operation Activity app.
§ Provides an option for the production
supervisor to process defects.
§ Supports follow-up decisions:
- Use as-is
- Scrap
§ After the decision has been made, it

becomes available for the production
operator in the defects list.
§ Prevents the usual completion of a

serialized product if a scrap decision has
been made. The production operator is
enforced to scrap.

Ad hoc Rework
The unplanned rework feature enables the

insertion of an additional rework operation
into a production order based on a defect:
§ For each plant, you can define one
generic rework routing with one rework
operation and multiple operation
activities.
§ When a defect is recorded for a
serialized product, the rework operation
can be added to the production order. It
is automatically placed after the
operation that is currently in process.
§ The defective part is automatically
moved to the rework operation once the
current operation has been completed.
§ When executing a rework operation, the
as-built list of components is shown. If
defective parts are to be replaced, you
can adjust the serial or batch numbers of
already assembled parts.

Production Holds
The hold functionality provides you with an
option to temporarily block production by
placing a hold on orders, materials,
operations, work centers, or serial numbers.
§ When placing an object on hold, you can specify a

reason code and note.
§ If something is put on hold, production operators

cannot continue with their activities until the hold
has been released.
§ Holds are shown as an important exception on all

supervisor and operator UIs. Once the issue has
been solved, the hold can be released.
§ Enables you to monitor all production holds in the

Manage Production Holds app with a drill-down
capability to view the hold details.

Genealogy and Action Log
§ Complete as-built and where-used
information for individual parts.
§ Display of serial/batch numbers for

consumed components.
§ Drill in and drill out capabilities for operation

activity details.
§ Detailed log of activities and actions

performed for an individual part:
- Date/Time
- User
- Activities started, completed, paused,
skipped
- Buyoffs approved, rejected, canceled
- Holds applied and released
- Non-conformances raised (future
functionality)
- Inspection characteristics (future
functionality)
§ Action log report with flexible query

mechanism for detailed ad-hoc analysis.

Final Assembly / Installation Process
• Major Assemblies & Installation Kits
• Unitized Effectivity (Model-Unit Effectivity)
Installation Process
Major Assemblies & Installation Kits - Concept Overview
A Major Assembly represents a large section of the product such as a wing or system module.
An Installation Kit is an organizational breakdown of the major assembly: Cutting the large BOM and the immense work that needs to be
done to produce the major assembly into portions that are easier to be handled.
Installation Kits have MBOMs and routings. Shop floor production orders are created for installation kits.
Major Assemblies do not have MBOMs and routings. They are produced by the sum of all their installation kits.
Major assemblies do not show up in
PS End Item PS Project production planning, but are represented by
networks in the project system module (PS).
Major Assembly Network Installation kits are represented in both PS

and PEO: In PS they are represented by the
Network Activity activities of a major assembly’s network.
Installation Kit Shop Floor Installation Order Scheduling and sequence control is done
PEO based on the network activities.
Assembly Shop Floor Order In addition, each activity also has a material
requirement for the installation kit it
represents. MRP reacts to them by creating
Component Shop Floor Order
planned orders for each installation kit that is
converted into shop floor installation orders
used for production execution.
Major Assemblies & Installation Kits – Features & Functions
§ Definition of material types to be used for major
assemblies and installation kits.
§ Installation kits can be defined in the Visual

Enterprise Manufacturing Planner (VEMP).
§ Project Management Enhancement:

- Consistent model/unit assignment within a project is
enforced.
- Serial numbers for major assemblies are automatically
created and linked to the major assembly networks.
- BOM version used for creating the installation kit
requirements of the major assembly are documented
and fixed.
- Defined installation kit precedence is enforced when
releasing network activities.
- Consistency can be checked to ensure that major
assembly projects and networks are in sync with
BOMs and other master data.
§ Shop Floor Order Enhancements

- Installation orders can only be released if the related
network activity is already released.
- By completing an installation order, the related
network activity will automatically be completed.
- Automatic goods issue posting for virtual installation
kits materials after order completion.
- Installation order updates the genealogy of the major
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
assembly. 61
Unitized Effectivity (Model-Unit Effectivity) - Concept Overview Parameter effectivity is a pre-existing functionality
to control the applicability of BOM items and
routing operations in a BOM and routing
respectively, based on parameters such as
material, serial number, model, unit, and so on.
Unitization (or model/unit pattern) is built on the
+ = parameter effectivity function to make use of
certain semantic patterns and rules to ensure:
§ An accurate incorporation of EBOMs into MBOMs
(version-controlled).
The landing gear for Aircraft Units 1 to The landing gear for Aircraft Units 51 to The Super-BOM for all aircraft units § A compatible match between BOM components and
50 100
• Drag Link: for Units 1 to 50 only
the routing operation activities. For example, assign
• Drag Link required • Drag Link not required a component that only applies to units 1 to 10 to
• Wheel of Type A: For Units 1 to 50
• Wheel of Type A • Wheel of Type B
operation activities that are applicable for those
• Wheel of Type B: For Units 51 to 100 units.
• + other common parts • + other common parts
• + other common parts
The shop floor routing (version-controlled) has
been enhanced to support unitized parameter
BOM Routing effectivity for operation activities too.
The user interface for specifying parameter
effectivity for the BOM and routing has been
simplified so that you can directly enter the
effectivity values without first having to generate
an engineering change number (ECN).
§ Matching ECN, if available, is found or a new ECN
is created for the effectivity automatically.

Unitized Effectivity (Model-Unit Effectivity) – in Visual Enterprise Manufacturing Planner
The version-controlled bill of material allows you to maintain
BOM parameter effectivity for BOM components.
The EBOM to MBOM handover is performed using VEMP.
In addition to the material and quantity of the BOM component,

VEMP has also been enhanced to support the EBOM-MBOM
reconciliation and incorporation using the parameter effectivity.
§ The parameter effectivity is displayed in the tree table in a condensed
format and also in the side panel.
§ The effectivity of the BOM item is transferred from the EBOM to the
MBOM on incorporation.
§ If needed, the effectivity of one or more MBOM component can be
modified.
§ An EBOM component can be split into multiple components within one or
multiple MBOMs based on quantity and parameter effectivity.
§ The quantity and effectivity of an EBOM component must match the
overall quantity and effectivity of all the corresponding MBOM splits. Any
mismatch between the EBOM and MBOM item due to quantity and/or
effectivity is highlighted on both the EBOM and MBOM component.
§ A quick report for any EBOM component can show the exact nature of the
inconsistency.
VEMP also allows BOM component assignment to routing

operations:
§ The VEMP validates the applicability of the operation for the BOM
component. The effectivity of the operation must cover the effectivity of
the BOM.

Unitized Effectivity (Model-Unit Effectivity) – in Shop Floor Routing
The version-controlled shop floor routing supports
parameter effectivity.
§ The overall parameter effectivity of the BOM is inherited
by the routing. This effectivity is displayed in the routing
header.
§ By default, the operations inherit the effectivity of the
routing and the operation activity inherits it from the
operation. That is, you do not have to specify the
effectivity information for every aspect of the routing
manually which is intended to be same as the effectivity of
the superior node.
§ If you require a custom effectivity, you can specify it for an
operation and/or operation activity. The user-defined
effectivity must still be such that it is covered by the
superior node.
– Effectivity can be reverted back to the inherited
effectivity.
§ Operation activities may be split based on parameter
effectivity. This implicitly creates a group of activities which
have mutually exclusive effectivity so that only one of
them is selected for any given effectivity.

Installation Process The routing validates BOM component assignment to
Unitized Effectivity (Model-Unit Effectivity) – in Shop Floor Routing operation activities to ensure that their effectivities match
and preempt the situation where components remain
unassigned to an activity for any effectivity range.
§ A BOM component can only be assigned to an activity of an
operation if the component effectivity is completely covered by the
effectivity of operation.
– For example, a BOM component with the effectivity range 21 to
40 cannot be assigned to an operation with an effectivity range
Component List with Operation-Activity 1 to 50. The BOM component effectivity must cover the
Assignment Status Structure complete operation effectivity.
§ A BOM component can only be assigned to an operation activity if
Partially Assigned the unallocated effectivity of the component covers the activity
Assigned
effectivity.
Unassigned § A BOM component can be assigned to multiple activities of an
operation. The split is to be done in such a way that the
Assigned Components
aggregation of the quantity and effectivity of all splits is equal to
3D Visual for MBOM
to Activity the quantity and effectivity of the BOM component.
– For example a component with effectivity M1, 1-50; M2, 1-50,
70-100 can be assigned to an operation activity with the
effectivity M1, 1 to 50 and another activity with the effectivity
M2, 1-50. The remaining effectivity of M2, 70-100 remains
unassigned.
– Another example: A BOM component with qty 5 and effectivity
range 1 to 10 can be split into three activities as follows: qty 2/
range 1 to 5; qty 3/range 1 to 5; qty 5/range 6 to 10
§ The BOM component list in the component allocation workspace
displays all the allocation splits and also the activities to which
they are assigned. The remaining quantity and effectivity, if
available, is also displayed as an un-allocated split.
§ In case a 3D visual is relevant for the BOM, the geometric
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC instances are represented in the BOM component list tree. 65
Unitized Effectivity (Model-Unit Effectivity) – Filter in Routing Maintenance
When maintaining a routing, you
can set an effectivity filter:
§ The system only displays the
elements (operations, activities,
components) that are relevant
for the selected units.
§ All changes done within the filter
are only relevant for the selected
units.

Unitized Effectivity (Model-Unit Effectivity) – in Shop Floor Execution
The order generation mechanism based on
parameter effectivity works in same way as it
Order Creation works for pre-existing functionality related to
parameter effectivity.
§ The effectivity parameters are specified in the project
Order Detail network or sales order based on which the production
orders are created for specific effectivity.
§ The BOM and routing are filtered based on the
effectivity so that only the relevant components and
Perform Work operation activities are applicable for the order.
The parameter effectivity is displayed in all

production operation apps.

Thank you.
Contact information:
Stephan Kohlhoff
Product Owner PEO, Manufacturing
stephan.kohlhoff@sap.com
+49 160 889 6921

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S/4HANA Manufacturing for Production Engineering

Production Engineering Production Operations

Manufacturing Change Management Production Order Management & Control

Major Assemblies / Installation Kits

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

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© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8

§ The EBOM assignment need not be always

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© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11

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§ You, as a manufacturing engineer, can use the change

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© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 19

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§ The entry screen allows you to search

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§ You can assign a version profile in the

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§ Operation activities contain further

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Any-Order Groups for Operation

Simultaneous Groups for Operation

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§ One or more BOMs can be assigned

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§ You assign components to operation

§ You can assign PRTs

§ You can assign documents to

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§ You can assign one or more

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§ The buyoff is a process to signoff on a

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Interactive work instructions allow the

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§ The action handlers contain business logic, for

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You can copy and paste operations and

Favorites are organized in folder structures:

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§ Individual users will receive

§ Manufacturing engineers can

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§ Production Version Creation and

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