Production Engineering and Operations in S4 HANA PP

SAP introduced S4HANA and developed new features in many areas and logistics, there are some additional new features added by SAP in S4HANA.

This blog post is all about What is SAP PEO and What is SAP VEMP.

The new features of S4HANA are listed as below,

  1. DDMRP – Demand Driven MRP
  2. MRP Live
  3. Predictive MRP
  4. PEO – Production Engineering and Operations
  5. Fiori features
  6. VEMP – Visual Enterprises Manufacturing Planner

In this blog post PEO – Production Engineering and Operations will be discussed and features of PEO will be explained.

In manufacturing, once a design is finalized for a product, the Bill of materials (BOM) will be created and the same will be ready to manufacture.

There is no hand over of Bill of Material from the design team to the manufacturing team.

And there is no provision from SAP for viewing the assembly or component in a standard system for reviewing and referring the components.

There will be Engineering BOM will have Engineering usage status and the same will be changed production BOM status.

SAP PEO feature allows users to simulate the assembly of the product so that engineer or mechanic can have a clear idea about processing that need to produce a product.

PEO supports converting the Engineering BOM into Manufacturing BOM and its feature and VEMP facilitates viewing the products in 3D models.


In PEO, VEMP enables the R&D team to share or transfer the product in a 3D model, allows the production team to convert EBOM to MBOM, and allows to edit the design of the product if any change is required.

There are two things in Production engineering – Product Engineering and Product Operations.

Production engineering bridges the gap between engineering and operations in SAP. The product design will be added with process or routing so that the user can read the routing and BOM details and can carry out the actual production.

PEO helps in complex assembly execution, final assembly, and installation process.

Production Engineering connects

  1. Product Engineering
  2. Product Operations

Both elements are used to convert

  1. Product Design to
  2. Product Process Design

And this Product Process design is the basis for Shop floor management and production order management.

  1. Production order management
  2. Shop floor management

Manufacturing change management uses different Fiori tiles for product and operation update

  1. Assign new BOM version
  2. Manufacturing Change Records
  3. Change Impact Analysis
  4. BOM and Routing Version Management

What is SAP VEMP?

Visual Enterprise Manufacturing Planner

In SAP manufacturing VEMP allows users to interact with 3D design and process. This allows us to convert EBOM into MBOM, this converts Engineering BOM into Manufacturing BOM.

  1. MBOM – Manufacturing BOM
  2. EBOM – Engineering BOM

There are three panels available in SAP VEMP,

  1. Source Panel
  2. Target Panel
  3. Working Panel

VEMP – Source Panel

In VEMP, the Source panel has the structure of EBOM and its visual. Generally, this kind of EBOM structure will not consider anything from the manufacturing side.

Without considering any manufacturing constrain Engineering BOM will be designed and the feasibility of manufacturing of any part will not be considered here.

VEMP – Target Panel

In VEMP, the Target panel has the structure of MBOM where EBOM will be fetched from the source panel and the same will be converted to the MBOM with the constrain of manufacturing methods.

Here the operations and steps of manufacturing the component will be included. The routings will be added with Manufacturing BOM that is also known as the process.

VEMP – Working Panel

In VEMP, the working panel is used to edit the 3D design and this is known as the editing area. Here single-level BOM can be extracted and the same can be edited.

This shows only single-level BOM only.

Generally, VEMP reconciles the EBOM and MBOM, highlights design elements if any changes in design by colors.

To conclude, SAP had a lack of showing design elements to the user and now in S4HANA, they introduced a Visual Inspection planner that helps the user view the design and assembly simulation.

Ask us in below comment box if you have any questions. Thanks


Hi, is the Brainchild of Mahendran Paramasivan who is interested in bringing the latest technology to the common people and corporates. We are a team and we are providing supports on Technology and innovation as per industrial standard. We are supporting with the help of analysis we made on Technology and innovation to help corporate companies and individuals. We bring the latest updates of technology and innovation in front of the eyes of our readers, clients, and people. We have resources in Cloud computing, IoT, Edge Computing, Dew Computing, 5G, SAP, Web Designing, UI/ UX Design. Regards AskMahe Team

One thought on “What is new in S4HANA?”

Comments are closed.