In this blog, you will find the latest collection of new capabilities in SAP S/4HANA Cloud in the area of Process Manufacturing with the focus on the ERP End-to-End processes of Make to Order and Make to Stock.
Process Manufacturing is the production of goods using a master recipe by combining or treating one or more components/ingredients. The process generally involves use of heat, pressure, and time. This kind of manufacturing is commonly used in industries such as chemical and fertilizer, pharmaceuticals, consumer goods and food, oil and gas etc. Process manufacturing is markedly different from the practices followed in a discrete industry. Output of discrete manufacturing are individual units that can be separately counted, stored, and tracked whereas the output of process manufacturing is usually identified through batches and are not countable individually.
In an operation of process manufacturing, the product passes through phase(s) before the operation can be set to be complete. The ingredients required for these operations and the resource where it is produced is stored in a master recipe. In SAP S/4HANA Cloud, master recipes are the primary source of data for the resources to be employed and the ingredients to be used to perform basic planning and execution of the process manufacturing operations. Process orders will be part of SAP S/4HANA Cloud and will use the data in master recipe.
SAP S/4HANA Cloud will focus on the logistics of process manufacturing with straight forward execution process.
Advanced and complex manufacturing execution is planned* to be covered by integration of SAP Digital Manufacturing Cloud (DMC) in future. This means that the On-Premise capabilities like control recipe, PI-sheets/X-Steps, and process messages & instructions are not supported in SAP S/4HANA Cloud. The successor of PI sheets will be in SAP Digital Manufacturing Cloud (DMC) with Worker UI (current terminology, may change in future).
You can find the latest list of available best practices for Process Manufacturing within SAP S/4HANA Cloud here:
You can use the best practices to evaluate the functionality of process manufacturing within SAP S/4HANA Cloud.
- Companies with simple execution processes can onboard the logistics and controlling aspects of Process Manufacturing in SAP S/4HANA Cloud. They can utilize available features of master recipe data, planning, process orders, confirmations and goods movement.
Future releases* can expect to include more scope with focus on process manufacturing, such as –
- Make to Stock production for pipeline materials as components
- Tank trailer filling process considering the residue in the tanks as well
- Make to Order production with batch managed materials
- APIs to integrate 3rd party Manufacturing Execution Systems
*This blog and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This blog is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or noninfringement