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SAP S/4 HANA Cloud for Process Manufacturing

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).

Find overview information about the supported functions and the available Self Service Configuration UIs for Process Manufacturing within S/4HANA Cloud (1908) here::

You can find the latest list (1908) 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
  • 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

10 Comments
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    • Hi Mahe,

      The functionality of browser-based PI sheets and electronic work instructions is still available in SAP S/4HANA on-premise edition (Functionality available in SAP S/4HANA on-premise edition but not considered as future technology. Functional equivalent is not available yet).

      See simplification list (section 27.36) and related note: https://launchpad.support.sap.com/#/notes/0002268070.

      The functionality of Control Recipes, Characteristic-based process instructions, XSteps, is as well still available in SAP S/4HANA on-premise edition (Functionality available in SAP S/4HANA on-premise edition but not considered as future technology).

      In S/4HANA Cloud these capabilities are not available and are not planned.

      Regards Peter

  • Hi Peter Szincsak ,

    Thanks for the info on process manufacturing for S/4 Cloud. I had a question…

    Originally, SAP had released just 2UG. I figured SAP was looking to consolidate the concept of “Production Order” and “Process Order” into a single best practice. This has BOM, Routing, Production Order.

    Then, SAP released BJ8, which returns to what I am used to for on-premise Process Industries (i.e. BOM, Resource, Master Recipe, Process Order).

    My question:  What is SAP trying to differentiate between these best practices?   Or, what is SAP’s roadmap vision for this?  I have researched on the typical SAP sites, but have not found anything discussing differences.

    For our chemical company clients, I would think we would use BJ8 (Master Recipes and Process Orders). However, there isn’t even a master data object available for Master Recipes.

    Any guidance would be great.

    Thanks in advance for your time,

    Joe

    • Hello Joseph,

      some of our customers from process industries do use discrete manufacturing for process manufacturing. That is why we offer also the best practice 2UG Make-to-Stock – Process Manufacturing Based on Production Order.

      Regards

      Peter

    • Hello Joseph,

      could you elaborate a little bit more in detail on the master data object, which you are missing for master recipes.

       

      Thanks & regards

      Peter

      • Hi Peter,

        In the Data Migration Cockpit, “Master Recipe” is not available (only Routing).

        Without this data migration object for Master Recipe, it becomes quite painful…

        All the best,

        Joe

        • Hi Joseph,

          The master recipe is planned to be available in Data Migration Cockpit after completion of the APIs for the master recipe in the course of the year 2020.

          Regards

          Peter

    • Hello Ijaz,

      the master recipe exists in S/4HANA Cloud as business object, Only the migration tools for master recipe are planned to be available next year. => Customers/Partners could evaluate Process Manufacturing within S/4HANA Cloud based on the existing best practices already now.

      Regards

      Peter