SAP S/4HANA functionalities in the field of production

The functionalities of SAP S/4HANA in the field of production support production processes from the product design stage, through preparation and production planning to support for the production process and quality control in full integration with other areas such as logistics, finance, controlling, sales, etc.

SAP S/4HANA in production area - benefits:

Provide a 360-degree view

of all relevant aspects in the early stages of a product's life, from the first product idea, through design, to production.

Gain insight

into the cost, time, scope, resources and quality of your products and projects.

Design new products

Define the work breakdown structures as the basis for hierarchical project accounting. Plan costs and budgets, and track actual costs tightly integrated with core business processes.


Plan raw materials and components based on the explosion of BoM finished product requirements. Create internal and external order proposals based on quantity requirements and dates.

Balance requirements

Balance your production requirements with the available capacity of individual workstations and shift calendars.

Execute, control, monitor and validate production

with real-time data from the shop floor, contract manufacturers and suppliers. Submit scheduled orders, release production orders and confirm operations, and track work in progress.

Simplified processing

in recurring scenarios with mass processing and streamlined financial controls in recurring activities.

Support for various models of resource management

eg KANBAN eg an empty container starts the purchasing process with parameters such as: - number of containers in a circle. container status (full / empty) kanban card (source of supply, batch size).

Control full production

on the shop floor from material handling, bill of materials, recipes, routes, batches, parts, components, jobs and resources, all the way to finished products with central dashboards to minimize bottlenecks and mitigate risk.

Outsource production 

by subcontracting orders. Provide the contractor with the components according to the BoM structure. Manage and track inventory of components and WiP on site with the contractor. Consumption of components with reverse flow upon receipt of the finished product.

Outsource operations

Outsource production operations to external suppliers or other production units as part of cooperation. Manage the process with external operations in routes and production orders.

Provide components

Deliver components and subassemblies directly to the customer's production line to avoid inventory buffers. In the case of just-in-sequence, the assembly is delivered in sequence according to the required specification.

Schedule operations

(Routings) during production activities. Operations are the basis for date planning, job site performance requirements, and material consumption.

Define a separate BOMs

for different areas (eg Engineering, Production, Sales, Service).

Plan the quality 

of products, processes and services. Failure Mode and Effects Analysis (FMEA) to prevent and avoid failures

Use inspection plans

to perform integrated inspection planning for goods receipt and production inspection.

Use control lots

to perform and record quality checks concluded with a use decision.

Analyze data

Analyze production data to support decision making and reporting goals.

Functional areas in the field of production at S/4HANA:

Planning and distribution of workload

balance the load on workstations by analyzing their efficiency compared to the demand for products and semi-finished products. Thanks to the scheduling table, with the help of drag & drop function, manage production orders on the timeline by moving them and minimizing production downtime. Check material availability before releasing orders for production, or trigger demand for inventory transfers to production areas.

Production execution 

production realization has never been easier! Thanks to the possibility of integration with MES and WMS systems, confirm production and consumption with scanners. Send components to subcontractors and co-operators, and check the status of production in progress and optimize the time that finished products spend in stock thanks to the use of agile management methods.


Design new products - also in integration with CAD systems. Create BoMs and their versions as the basis for hierarchical project accounting. Simulate and plan costs and budgets, and track actual costs tightly integrated with existing business processes.

MRP live

Real-time demand planning? With SAP S / 4HANA it is possible. Respond to changes in demand and calculate demand even for many factories at the same time - as often as necessary.

Manage quality during production

Examine and manage batches of semi-finished and finished products during the production process and after taking the product into stock.

Reporting and notifications

Be aware of bottlenecks in business and logistics processes to increase efficiency in line with KPIs (Key Performance Indicators)

Plan Requirement

Plan customer demand and respond to them by ensuring timely availability of materials. The possibility of using various production strategies - incl. :
MTS (make-to-stock production),
MTO (make-to-order),
ETO (engineer-to-order),
• as well as based on many input data such as: historical data, market trends, new product launches, price changes, marketing stocks.

Other functional sub-areas in the field of production in S/4HANA:

Designing new products

Production processes support

Plan / schedule optimization

Detailed planning and schedule of orders

Manufacturing operations

Complex manufacturing processes

Quality control

Demand Driven MRP

Real-time analytics and production information

Integration with other areas: Sales, Finance (valuation, costing and planning), Product development (e.g. BoM, routing, design), Purchasing, Warehouse ...