PMMO Solution overview and PMMO Grouping
Purpose of this blog
In this blog post, I would like to provide more details about the PMMO solution and also try to describe some of the key features/improvements over GPD with regards to PMMO Grouping. For a full list of functionality please refer to the official SAP documentation on the SAP Help Portal – PMMO Help Portal.
In the previous blog post, I mentioned about the new solution PMMO announcement – https://blogs.sap.com/2020/10/20/sap-s-4hana-project-manufacturing-management-optimization/
It is also assumed that the readers have some knowledge of SAP GPD/Project Manufacturing solution because a lot of the terms such as Grouping, Pegging and Distribution are retained in PMMO as well.
PMMO is the next generation Project Manufacturing solution in SAP S/4HANA.
To recap, What is PMMO?
PMMO is an optimization tool for project based manufacturing that drives MRP planning for procuring, manufacturing and movement of common part numbers required by various WBS elements within a Project and across Projects resulting in fewer orders and process steps while improving logistics and operation efficiencies. Standard Engineer to Order (ETO) MRP planning only supports single WBS Element requirements which is why grouping them using PMMO provides benefits which customers are demanding.
This PMMO solution expenses all costs directly to the Project WBS Elements that share ownership of these orders, using the PMMO Cost Distribution feature when “Non-Valuated Costs Method is involved.
As of 2020 Release, PMMO is in core S/4HANA On Premise. Its component application is LO-PMM.
PMMO Grouping: Efficient lot-sizing in project-based manufacturing
Configuration in SAP Project System (PS) to combine requirements across multiple WBS elements with option of different types of “Grouping” strategies.
Enhancements in Grouping (available since S/4HANA 1909)
- Standard API for Grouping maintenance (Function Module MAINTAIN_GROUPING_WBS_PARAMS)
- Change Documents for Grouping maintenance
- New Transaction GRM8 that combines GRM4 & GRM5
- Input range selection for GRM7
Business Benefits of PMMO Grouping
- Plan and optimize resources for planning “common parts” cross projects in MRP and the supply chain
- Enable more efficient lot-sizing strategies
- Economies of Scale
- Consolidation of demand to reduce setup overheads
- Improve inventory consumption across contract and project level
For more information on the Business Impact of considering GPD and PMMO, please check out more information in these 2 SAP Notes:
Let me know if there is any specific topic about PMMO that you would like to know more about. In further posts I will look to describe more PMMO key features.