SAP Manufacturing


Manufacturing Defined

Manufacturing refers to the creation of finished goods with the help of equipment, labor, machines, tools, parts, and raw materials. It includes variable factors like supplies, equipment, overhead, parts, and skilled workers. Production planning and scheduling contain comprehensive planning features and integrated scheduling to create efficiencies and lower costs. Modern manufacturing solutions include on-premise deployment, collaboration enterprise-wide, seamless digital capabilities, and real-time analytics for problem-solving and robust decision-making.

SAP Manufacturing

Key Capabilities of SAP S/4HANA Manufacturing for planning and scheduling include:

  • Comprehensive end-to-end planning: Planning production resources beyond material requirements planning (MRP) functionality, considering capacity and material availability constraints in the planning model, and integrating manufacturing master data.
  • Integrated scheduling: Streamline scheduling through global production environments, use industry scheduling for block, campaign, shelf-life and model mix planning, and perform detailed scheduling.

Manufacturing Defined

Manufacturing refers to the creation of finished goods with the help of equipment, labor, machines, tools, parts, and raw materials. It includes variable factors like supplies, equipment, overhead, parts, and skilled workers. Production planning and scheduling contain comprehensive planning features and integrated scheduling to create efficiencies and lower costs. Modern manufacturing solutions include on-premise deployment, collaboration enterprise-wide, seamless digital capabilities, and real-time analytics for problem-solving and robust decision-making.

SAP Manufacturing

Key Capabilities of SAP S/4HANA Manufacturing for planning and scheduling include:

  • Comprehensive end-to-end planning: Planning production resources beyond material requirements planning (MRP) functionality, considering capacity and material availability constraints in the planning model, and integrating manufacturing master data.
  • Integrated scheduling: Streamline scheduling through global production environments, use industry scheduling for block, campaign, shelf-life and model mix planning, and perform detailed scheduling.

Key Capabilities of SAP S/4HANA Manufacturing for production engineering and operations include:

  • Streamlined engineering: Digital collaboration with master data, design handovers, process planning, and change management. Simplify build package creation, management, and delivery for global environments.
  • Enhanced operations management: Analyze change impact and change implementation. System-optimized monitoring of shop floor operations with issue detection, root cause analysis, and decision support.

The importance of manufacturing is that it leads to research and development, innovation, productivity, exports, and jobs. It helps to raise living standards and generates more economic activity than any other business sector.

3 benefits are:

  1. Simplify functionality: Digital enterprise collaboration to simplify product planning, change management, and operations. Decrease days in inventory by integrating scheduling and execution for a full view of product data.
  2. Optimize adaptability: Minimize production disruptions in shop floor execution. Reduce cycle time by adapting production schedules to plant conditions.
  3. Enhance planning capabilities: Streamline build package creation, planning, and shop floor operations. Reduce revenue loss from stock outs by improving flexibility into production planning scenarios.

Vendor partners to modernize your manufacturing and increase efficiency include: Forcam, SAP, and Movilitas.

Key Considerations for SAPinsiders are:

  • Expert Panel Discussion: Boost Manufacturing Agility and Flexibility with SAP HANA. Listen to leaders engage about the state of manufacturing agility and flexibility by using SAP HANA.
  • Belmo Increases Warehouse Productivity and Order Fulfillment by 30%. Read the case study on how the use of technology, like machine learning, can have significant benefits.
  • Industry 4.0: The Journey to the Future of Productivity. Read about the importance of digital technologies, but also understand automation and collaboration are the path to success.

498 results

  1. Inside a Multi-Phased SAP Digitization Journey

    Reading time: 10 mins

    In 2006, the European Union passed a new regulation that heralded dramatic changes for Varian Medical Systems, a producer of medical devices for oncology, imaging, and proton therapy. Under the Restriction of Hazardous Substances (RoHS) directive, Varian had to reengineer many of its products in order to make their chemical compositions environmentally compliant. This was…

  2. Use the Primary Cost Component Split to Explain the Factors Behind Your Activity Rates

    Reading time: 17 mins

    You probably know that manufacturing costs are charged to production orders using an activity rate for the time worked. What you might not realize is that since Release 4.0, it has been possible to set up an alternative cost component split to view primary costs such as energy, wages, and depreciation. Without the split, these…...…

  3. Manage Complex External Manufacturing Operations with a Full Contract Manufacturing Solution in SAP

    Reading time: 22 mins

    See how to implement a full contract manufacturing (CM) solution in an SAP system. Gain details about the main master and transactional data needed to implement this solution along with the most important customizing details from a logistics point of view. Key Concept An outline agreement (contract or vendor scheduling agreement) is set up once…...…

  4. SAP S/4HANA Primer: How to Visualize Live Manufacturing Reports in Excel

    Reading time: 10 mins

    Learn how to use the SAP BusinessObjects Analysis integration with SAP S/4HANA to see manufacturing reports directly in Microsoft Excel. Key Concept SAP BusinessObjects Analysis consists of three plug-ins for Microsoft Excel: Analysis, Enterprise Performance Management (EPM), and Business Planning and Consolidation (BPC). It works with PowerPoint and Excel in Microsoft Office 2016 (as of…...…

  5. Make-to-Order Manufacturing Planning Strategy with Planned Cost

    Reading time: 14 mins

    Organizations often experience challenges in a make-to-order (MTO) environment when managing “planned customer changes” mapping to standard product structure. This article will teach you how to separate “planned” vs. “un-planned” changes integrating planning, shop floor execution, inventory management and finance/controlling with accurate value on the books. It will explain inventory valuation with a step by…

  6. Manage Outsourced Manufacturing with New Features in 6.0 Enhancement Package 4

    Reading time: 13 mins

    If you use contractors for some of your manufacturing operations, new functionality for managing them is designed to save you some time. See how to configure SAP Outsourced Manufacturing, what master data needs to be maintained, and the functional steps required to implement six new features. Key Concept Outsourced Manufacturing is a new SAP capability…...…

  7. Legal Entity Design Considerations in Global SAP Implementations

    Reading time: 7 mins

    Tanya Duncan’s experiences with global SAP finance implementations in Europe, Mexico, and Singapore have all had one commonality: complex legal entity structures. Designing company codes and plants in an SAP system is not always straightforward and this article presents several considerations in building these structures effectively. Key Concept Maquiladora is a factory in Mexico run…...…

  8. Sappi Limited Gains Real-Time Visibility into Production Costs with SAP MII

    Reading time: 8 mins

    Sappi Limited has grown to become a leading global producer and supplier of dissolving wood pulp, paper pulp, and paper products — with an expanded system landscape to match. Its Southern Africa division recognized an opportunity to improve efficiency by consolidating the data spread across its multiple manufacturing systems. Learn how Sappi Southern Africa used…

  9. a photograph of a neon sign depicting a handshake - collaborations concept

    What Long-term Benefits SAP Users Can Expect from B2B Collaborations

    Reading time: 2 mins

    Those businesses seeking modernization of their operations should watch out for collaborations between leading technology suppliers.

  10. Use a Custom ABAP Report to Find “Labor Hours Confirmed on Production Orders” Data Entry Mistakes… Before Your Month-End Closing

    Reading time: 9 mins

    At some R/3 sites, the labor time spent on any given Manufacturing Order is recorded at a standard value, possibly as part of a backflushing transaction; at others, the hope is to have the operators record their actual time spent on each given Manufacturing Order, leaving wide open the possibility that operators may introduce data…...…