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. cloud image

    SAP Asset Performance Management for Circular Manufacturing

    Reading time: 4 mins

    The manufacturing industry is a major contributor to carbon emissions, accounting for around 20 percent of global emissions. These emissions are primarily caused by energy usage during the manufacturing process. However, new approaches to designing, producing, and disposing of goods can reduce waste by eliminating it from products and processes, as well as by recycling…

  2. ChatGPT SAP

    Leveraging AI for “Segment of One” Supply Chain Planning

    Reading time: 6 mins

    A couple of decades ago, leveraging the strategy of delayed differentiation in supply chains was the rage. Delayed differentiation offered a relatively higher level of personalization without creating inefficiencies like excess inventory in the supply chain. For example, a manufacturer would color a lot of polo shirts only after demand trends started trickling in on…

  3. Digital Twin

    Digital Twin Enabled Manufacturing Planning

    Reading time: 3 mins

    This article discusses how SAP customers have numerous options for building digital twin-enabled manufacturing planning capabilities. This content is for SAPinsider Monthly Subscription, SAPinsider Annual Subscription, and SAPinsider Premium Annual Subscription members only.Log In Join Now

  4. How to Enable Logistics and Manufacturing Execution with SAP Extended Warehouse Management Kanban Replenishment

    Reading time: 10 mins

    Learn how to execute multi-level manufacturing production orders through component replenishment driven by SAP Extended Warehouse Management (SAP EWM). Understand the overall concept, implementation best practices, and configuration steps involved. Key Concept SAP ERP Central Component (ECC) has provided Kanban functionality for many years. With this functionality, operators on factory floor’s manufacturing lines obtain component…...…

  5. Complete the Engineer-to-Order Process with Period-End Postings for Project Valuation

    Reading time: 16 mins

    In an engineer-to-order manufacturing environment, you iteratively design a product with your customer and then produce the product based on these newly developed specifications. These projects typically run over many financial periods. At the end of each period, you need to ensure that you correctly value the work in process, the cost of goods sold,…...…

  6. Streamline SAP ME Routing Maintenance Using Routing Scripts

    Reading time: 15 mins

    Learn how to implement custom scripts in SAP Manufacturing Execution (ME) to influence decision making on factors other than just non-conformance scripts that come documented with the product. Key Concept SAP Manufacturing Execution (ME) supports the use of routing scripts to help in decision making when a branch exists to multiple next possible operations. The…...…

  7. Man drawing business plan

    5 Steps of S&OP to Achieve an Integrated Business Plan

    Reading time: 14 mins

    Sales and operations planning (S&OP) is a set of decision-making processes that regulate and coordinate overall capacity, inventory levels, and lead times across engineering, projects, manufacturing, finance, supply chain, and operations based on forecast information about the market. S&OP focuses on changes from the previous plan and links that with the strategic goals of cost…

  8. Implement the Appropriate Contract Manufacturing Solution

    Reading time: 12 mins

    Decide the appropriate solution for contract manufacturing in an SAP system based on your business needs. Learn about the possible options available across the main logistics modules. Gain details about the main master data and transactional data needed to implement the manual and subcontracting solutions. Key Concept Contract manufacturing (CM) is the process by which…...…

  9. Experience Management Could Take Supply Chains from Operational Parity to Brand Differentiation

    Reading time: 8 mins

    Many organizations do not use the supply chain or logistics management tools within SAP ERP or SAP S/4HANA as the developers intended. This misuse often leads to poorly aligned data sources that impede inventory accuracy and negatively affect company strategies. By using standard SAP tools for supply chain management (SCM) correctly, maintaining data integrity, and…

  10. Manufacturers Use Agile and Intelligent PLM to Reduce Time to Market

    Reading time: 2 mins

    This research brief examines how companies in the manufacturing sector align their business strategies to meet pressures and goals such as reduced time to market through the use of intelligent technologies such as generative design, topology optimization, additive manufacturing, and a combination of edge and cloud computing. The most recent SAPinsider survey shows that more…...…