What is new in S/4HANA Manufacturing for Production Engineering & Operations (PEO) in 2025 FPS0

[DeepakRaiSharma]

What is new in S/4HANA Manufacturing for Production Engineering & Operations (PEO) in 2025 FPS0

The 2025 release of SAP S/4HANA Manufacturing for production engineering and operations (PEO) offers significant enhancements that streamline manufacturing processes, improve operational flexibility, and enhance user experience across the production lifecycle. This blog post explores the key innovations in the areas of product rework capabilities, production engineering efficiency, flexible production operations, and extensibility improvements.

Product Rework

PEO now enables comprehensive rework capabilities for products at any time after completion of their production order, including externally procured products. This functionality allows replacement of defective or degraded components identified for completed orders, as well as repairs or maintenance on products that have been in storage or returned from the field. The system provides the same level of traceability for product rework orders as for standard shop floor orders, ensuring complete visibility throughout the process.

For more information, see Performing Product Rework | SAP Help Portal.

Production Engineering Efficiency

Automatic Plan-as-Designed with Phantom Flattening

The shop floor BOM in PEO does not expect phantom assemblies. But many customers define mBOMs in PLM systems with phantom assemblies. Using this new capability in PEO, the upstream PLM system can now send mBOMs with phantom assemblies to PEO, which are then automatically processed to create shop floor BOM by doing automated plan-as-design with phantom flattening. Shop floor BOM is created as a mirror of the incoming mBOM but if phantom assemblies are found, they are automatically flattened. The phantom hierarchy information is available for production engineer while working with shop floor routing management and also for production worker while using Perform Work Apps.

Business benefits include:

• Valuable information on phantom hierarchies is not lost
• Huge time savings when combined with workflow automation

For more information, see Automatic Plan-As-Designed | SAP Help Portal.

Work Instructions: Usability Improvements

Usability has been improved in both interactive and non-interactive work instructions. When adding references to inspection characteristics and PRTs, you can now add multiple references in one step. Multiple selection is also now supported when you add document links.

In addition, logical components can now be cross-referenced in work instructions.

For more information, see How to Maintain Work Instructions for Operation Activities | SAP Help Portal.

Manage Production Model: Support for Unitized Products

The Manage Production Models - Materials app now enables you to create and manage production models for unitized products. You can define production models at unit level to support different customer requirements, thereby optimizing your production planning.

A Parameter Effectivity section has been added to the details page for components, operations, and operation activities.

You can also release a production model version for a subset of the MBOM effectivity range.

For more information, see Manage Production Model – Materials | SAP Help Portal.

Manage Production Model: Create Sales-Order-Specific BOM and Routing for Non-Configurable Products

The Manage Production Models - Engineer-to-Order app now supports the creation of ETO production models for non-configurable materials such as material type HALB (Semifinished Product) or FERT (Finished Product). A simple guided procedure takes users through the steps to create an ETO production model using a sales order for a non-configurable material and engineer it further by adding components and production steps. This enables meeting special customer requirements even when the material in the sales order is not configurable.

For more information, see Manage Production Model – Engineer-to-Order | SAP Help Portal.

Assign Documents to Operations in Routings

You can now assign documents at operation level in shop floor routings. Documents applicable to all operation activities of a specific operation now only need to be assigned once, saving time and effort while eliminating the risk of different and contradictory information being displayed for each operation activity.

For more information, see How to Assign Documents to Operations | SAP Help Portal.

Usability Improvements for Shop Floor Routing Template Handling

To allow for easier organization of templates in the folder view, you can now cut a template and paste it at a different position in the structure.

When you display the template library, the system automatically filters the list of templates by the production plant of the template that you're editing. This improves performance and usability by reducing the number of templates initially displayed.

Flexible Production Operations

Perform OA: Usability Improvement for Displaying Documents

In the Perform Operation Activity app, document service control has been replaced by a responsive table to enable file previews within the app. You can now view and download documents and attachments more easily directly within the app.

For more information, see Perform Operation Activity | SAP Help Portal.

Parallel Operations Using Parallel Sequences

PEO shop floor routing now supports the creation of sequences for scheduling order operations to run in parallel, like classic routings. A parallel sequence branches from and returns to operations in a reference sequence, with operations in a parallel sequence performed in parallel to operations in the reference sequence. This functionality provides greater process and scheduling flexibility to reduce production time, better utilize resources, and support different manufacturing scenarios.

For more information, see How to Create Parallel Sequences | SAP Help Portal.

Alternative Components: Simple Discontinuation

Sometimes prescribed components may be in shortage in shop floor. Using the definition of alternative components, the production engineer can specify alternative components that can be used in such cases. In addition to defining alternative components in BOM, PEO now supports the use of global alternatives defined using simple discontinuation in the material master record.

Components in the production order can be exchanged for follow-up materials that have been defined using simple discontinuation.

This provides more flexibility to replace components in a production order due to defects, stock shortages, or changes in safety requirements without having to update the BOM.

PEO tracks the use of global alternatives in the end-to-end process.

For more information, see Using Global Alternatives | SAP Help Portal.

Extended Quality Check (EQC) Groups

PEO provides the capability of extended quality check (EQC) to enable modelling of regulatory and compliance requirements like first article inspection (FAI), first piece inspection (FPI) or other kind of compliances during production. With EQC production engineer can define conditional operations, operation activities or data collection which generally not applicable for normal production but can be exposed in production orders which requires such extended checks.

PEO has introduced EQC groups to support partial extended quality checks. You define EQC groups in Customizing. Through the assignment of EQC groups to operation activities and inspection characteristics in the shop floor routing, it’s now possible to implement partial extended quality checks. During creation of a shop floor order, EQC groups can be selected, resulting in only those operation activities and inspection characteristics assigned to the selected EQC groups being included in the shop floor order, along with non-EQC-relevant operation activities.

In the example below the production engineer has defined some additional activities tagged with relevant EQC Groups. While creating the order, it can be identified as an order which requires for example in this case ‘Full FAI’ or ‘Partial FAI’ or ‘First Piece’ and depending upon these relevant activities are exposed in the order. Multiple EQC groups can also be assigned to an order.

Benefits include:

• Capability to perform delta or selected quality checks after a full EQC
• Flexibility to perform partial quality checks across orders if production-related issues prevent a full EQC in a single order

For more information, see Extended Quality Checks | SAP Help Portal.

Qualifications for Buyoff Steps

HR qualifications can now be assigned to each buyoff step in an operation activity.

This functionality allows control over who can approve buyoff steps at production completion, ensuring higher quality assurance and improving compliance and audit readiness.

For more information, see How to Assign Buyoffs to Operation Activities | SAP Help Portal.

Retain Serial Number Group Across Operation Activities (Pull Scenario)

Production operators can now copy a serial number group that was completed at the previous operation activity to a new group at the selected operation activity when starting an operation activity in the My Work Queue app (pull scenario).

This provides more flexibility in copying serial number groups, especially when the production operator performing an operation activity is not the same operator who completed the previous operation activity.

For more information, see How to Copy Serial Number Groups from Previous Operation Activity | SAP Help Portal.

Data Collection: Capture Test Equipment Used

When collecting data in the Perform Operation Activity app, you can now select the test equipment used for a specific inspection characteristic.

Benefits of this feature are:

• Improved traceability and compliance
• Allows the operator to record unplanned test equipment that was used for the IC

For more information, see How to Record Inspection Characteristics | SAP Help Portal.

Exposing Inspection Method to Production Worker

Inspection methods can now be referenced in shop floor routings. This means that production engineers can:

• Reference an inspection method when adding an IC.
• Include the inspection method when referencing ICs in interactive and non-interactive work instructions.

The production operator can navigate to the inspection method from the Perform Operation Activity app, view the details, and then navigate back to the operation activity.

For more information, see How to Assign Inspection Method to Inspection Characteristics | SAP Help Portal.

Other New Capabilities

Modernization of Tables in Perform OA App Using Smart Tables

SAP Fiori smart tables are now used to display component data, PRTs, and data collection for operation activities that have simple work instructions or no work instructions. This modernization provides app extensibility for key users and delivers better look and feel and behavior of the UI.

Improved Extensibility in Authoring of Interactive Work Instructions

New Business Add-Ins (BAdIs) have been introduced, which you can use to fill custom fields for components, inspection characteristics, and PRTs that are referenced in both interactive and non-interactive work instructions

The custom field values are then displayed in the work instructions in the Perform Operation Activity app.

Want to Find Out More?

You can find more information on all new features provided in SAP S/4HANA Manufacturing for production engineering and operations (PEO) Release 2025 FPS0 here:

• What's New | SAP Help Portal  – just go to Manufacturing for Production Engineering and Operations