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Product Information
Author's profile photo Rahul Chandra Kini

SAP S/4HANA Project Manufacturing Management & Optimization

We are very excited and happy to announce the General Availability(GA) and first public release of Project Manufacturing Management & Optimization (PMMO) solution with the SAP S/4HANA 2020 On-premise release!!

Quick Overview

Here is a Digital Product experience video for a short introduction to PMMO and its value proposition for our customers.


PMMO will provide advanced capabilities for Make To Order (MTO), Make To Project (MTP) & Engineer To Order (ETO) manufacturing processes and also provide cost tracking in S/4HANA. It includes features that provides logistical tracking of replenishment orders to the end products. It contains functionality that allocates the individual cost types from grouped stock to the WBS elements that drive demand requirements.

Built natively in S/4HANA, PMMO will be the successor solution to GPD (Grouping, Pegging,  Distribution). The open design of PMMO will enable broader use across industries and support future cloud enablement.



Product Highlights for 2020 Release:

  1. PMMO integration with materials and logistics management to enable project driven manufacturing
  2. Pegging
  3. Flexible cost distribution
  4. Migration report for moving from GPD to PMMO
  5. Runs with EWM

Improvements over GPD solution (selected highlights):

  • Pegging and cost distribution program uses parallel processing.
  • Improved data structure by capturing additional MRP data
  • Enhancement via Subclasses (BADIs replaced by classes and methods)

Additional Links

There is more functionality and scope planned in the SAP S/4HANA 2021 release which can be found in the roadmap link or in Innovation Discovery

More information about PMMO on the SAP Help Portal – PMMO Help Portal


Please leave your feedback or questions if any in the comments section below.

I will look to add more posts in the coming weeks with more details on each of the Product Highlights listed above.


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      Author's profile photo Pablo Dominguez
      Pablo Dominguez

      Hi Rahul

      Thanks for the info and the blog. One question about effectivity and PPMO. How does PPMO deals with effectivity and complex manufacturing projects (P&EO)?. If a grouping WBS element groups WBS elements for which more than one effectivity value is defined, how does pegging and distribution deals with the effectivity assignment to the planned / production order? Hope the question is understood!

      Thanks again for the blog and the info.

      Author's profile photo Hank Schrandt
      Hank Schrandt

      Hi Pablo,


      Rahul has asked me to follow up.

      Your question about "Effectivity" is a little vague.  The are various forms of "Effectivity" that uses Change Documents that controls which data set from the Master Data is to be used.  The is Date Effectivity, Serial Number Effectivity used by Serial Numbers on Order Headers for selecting the appropriate data set within the Master Data and a thing called Model-Unit  (say like F16 Tail# 1001 verses F16 Tail#1002).  For A&D, I will assume you are referring to Model-Unit.

      Model-Unit specific data is tied to other nodes and branches at the top of the Engineering BOM tree that can be unique by tail#  (which can be the same as the MRP BOM tree depending on where on the Engineering BOM tree MRP planning starts while the top part of the Engineering BOM Tree can be built within Project Systems using Network-Activities).

      FYI for other readers.   PMMO is an optimization tool to procure and manufacture common part numbers collectively on common Replenishment Orders used for supporting multiple projects to optimize the supply chain process.   PMMO Pegging program uses MRP logic to create records to identify the Project WBS Elements that share ownership of those orders so that PMMO Cost Distribution program can expense their costs to these WBS Elements.

      PMMO (unlike GPD) could support a Model-Unit process.  Parameter effectivity by material number, date, serial number and characteristics/classification is used by MRP to find the appropriate Bill of Materials and Routing operation steps for planning while the Model-Unit number is a representation of the Engineering Change Number and the Serial Number as the End Product. For lower level assemblies (when appropriate) inherit the Model-Unit from the Top down.  FYI, PMMO Pegging records include Nexh Higher Order Number, qty and requirement date, as well as, the Top Level Customer Demand, qty and ship date.  MRP by material number within a planning segment still aligns supply with demand according to date using FIFO.  MRP must plan for Model-Unit so that PMMO can support Model-Unit.  Using the "Collective Order" process MRP can support Model-Unit.  From top down, each order within this chain would be supporting a common Model-Unit number because this chain of orders are planned separately from any other planniing segments within a plant MRP Area MRP, even when these Planned/Prod Orders have a Group WBS Element.   If multiple model-units for a particular part number are within the same MRP planning segment, there are no assurances that MRP planning/ execution is correct as to its NHA Order.

      Recommend the Top Level Leading Order uses the Operative (Assigned) WBS Element as its account assignment.  Its material master needs to have its MRP Group number not have "Grouping" active.  This sets the "Fixed Peg". It is okay for the Lower Level orders in the Collective Order chain have group WBS Elements because the Top Level is fixed pegged to its WBS Element and all the Lower Level orders will inherit the same WBS Element.  PMMO pegs all of these orders in the Collective to the Leading Order in the "Leading Order Field" on the pegging records.  GPD does not have this feature which is why it can not support Model-Unit.

      Date Effectivity and Serial Number Effectivity are single MRP level change controls, (unlike Model Unit which is multilevel) so that MRP knows with are the appropriate BOMs and Routings are needed for planning. Single level Parameter Effectivity types are supported by GPD and PMMO.


      Hope this answers your questions.

      Best of Luck.

      Hank Schrandt

      Author's profile photo Flavio Molina
      Flavio Molina

      Hank, has PMMO similar functionalities as we wave in ePPDS?

      Can we integrate PMMO with ePPDS?

      Best Regards.


      Author's profile photo Rahul Chandra Kini
      Rahul Chandra Kini
      Blog Post Author

      Hi Molina,

      PMMO in S/4 on-premise is the next generation solution for project manufacturing and is much more improved compared to the older GPD solution which is in ECC and S/4. Both GPD/PMMO pegging logic follows MRP pegging and hence it differs from PP/DS in that respect. You can find more information regarding PMMO functionality in these links - a) PMMO Help Portal b) PMMO blogs

      There is no out of the box integration available between ePPDS and PMMO. But we ran some tests earlier last year and found the below which might be useful to you:

      PP/DS currently does not recognize lot-size within individual requirement (MTO or MTP) but only supports lot-for-lot. Customer needs to implement enhancement (BADI) to support different lot sizes to group replenishments together to align with demand grouping.

      Please also note below two observations:

      1. PS order (Network) does not get transferred to ePPDS (into active plan version automatically) like PP order but requires active CIF model
      2. WBS requirement grouping does get recognized in ePPDS out-of-box without any CIF enhancement



      Author's profile photo Felix Stålhult
      Felix Stålhult

      Hi Rahul,

      Interesting and good blog post!

      Do you know if there exists any PMMO demo set up in SAP Partner Demo Environment? If so, is it possible to get access for this and a demo script?

      Or alternative, do you know if there exists any other demo material for PMMO and how to access it?

      Best regards,




      Author's profile photo Rahul Chandra Kini
      Rahul Chandra Kini
      Blog Post Author

      Thanks Felix.

      Are you referring to ? If so then yes please search for Project Manufacturing Management and Optimization (PMMO) there or by scenario ID 17963 and you should be find the PMMO demo along with the demo script available.

      Author's profile photo Felix Stålhult
      Felix Stålhult

      Thanks for your reply!

      Yes that's exactly what i mean.

      However, i can't find the demo you are referring to. I don't seem to have access to it. I can see a lot of other available demos in the SAP demostore.

      Could i have some user restrictions?

      Is it possible for you to email a link with the demo?

      Your help is appreciated.

      Author's profile photo Rahul Chandra Kini
      Rahul Chandra Kini
      Blog Post Author

      My apologies sounds like there are some restrictions regarding the availability of PMMO demo on the sapdemostore. Can you give me your email and we can go from there?

      Author's profile photo Felix Stålhult
      Felix Stålhult

      Okay, thank you for this information.

      My email adress is

      Looking forward to hear from you.