In complex assembly manufacturing, serialization is typically used for:
- Final assemblies like engines and aircraft.
- Expensive or hazardous parts requiring recycling or maintenance, such as gears. Serialization helps trace their treatment and manufacturing conditions.
- Time-sensitive materials that need removal or replacement after a certain usage duration, like parts with a 15,000-hour limit. Removed parts can be repurposed in different assemblies.
Sub-assemblies often follow a non-serialized production approach, without tracking individual quantities, and rely on final quantity confirmations at the order’s last operation. This simplifies the process, allowing manufacturers to handle materials in bulk rather than monitoring each item. Examples include bolts and turbine housings.

The difference between serialized and non-serialized production lies in the way the production data is collected and stored, and later viewed.
- Serialized production envisions the creation of an individually tracked serial number for each instance of a production order. For example, if the production order quantity is 3, the system creates three serial numbers. Execution and yield/scrap confirmation is done separately for each of them. The production data, such as inspection results, defect information, and component consumption, is stored and viewed per serial number using the Product Genealogy app.
- Non-serialized production allows you to process the quantities without uniquely identifying them. If the production order quantity is 3, the production worker can report 2 as yield and 1 as scrap accordingly. Production data such as inspection results and defect information is recorded and stored against production order. Consumption of components happens based on the BOM item quantity assigned to an operation activity with respect to the order header quantity to be produced at the operation activity.
To start non-serialized production, it is required that the following steps are completed:
- The main material (without serial number profile assignment) has been defined in the system
- The material components have been defined and added to the manufacturing BOM
- The routing for non-serialized production process has been created in the system and the corresponding material with the MBOM has been assigned to it
- The production order for non-serialized material has been created and released in SAP S/ 4HANA PEO
To process a non-serialized production order, you can use the following apps:
- Manage Work Center Queue
- My Work Queue
- Perform Work (Order/Operation)
In the Perform Work (Order/Operation) app, when you enter a production order and operation name, the system navigates to the Perform Operation app and displays all operation activities of the selected operation.

In SAP S/4HANA PEO, operations can include Setup and Teardown segments, along with the Produce segment. If a setup segment is defined in the shop floor routing, its activities must be completed before starting activities in the Produce segment. Teardown activities do not block the start of Produce activities, but must be completed to close the production order.
Setup and Teardown segments are independent of quantity but are included in scheduling, with their duration tracked.
To begin processing an operation activity, select the Execute button, which takes you to the Perform Operation Activity screen. In the Components view, either enter the serial/batch number or use the scan icon in the Action column to define consumed quantities for non-serialized components.
To report yield or scrap, use the Post button in the footer bar, which opens the Post Quantity dialog box. The system defaults to the planned quantity as yield, which can be adjusted if necessary.

- Choose Post if you need to go on working on the current operation activity or if a buyoff has to be performed.
- Choose Complete if you can complete the operation activity with the posting of yield and scrap.
In the action log for the operation activity, you can display the posted quantities. To open the operation activity action log, choose the Action Log icon in the footer bar.
Note
You can also use the Production Action Log app to view this information; there, you need to specify order number and start search to view the results.

If you can complete the operation activity, you can continue working on the next operation activity.
An operation activity can be skipped if allowed by status and action schema (SAS) assigned to an operation activity.
Summary
This lesson explains non-serialized production processes in SAP S/4HANA PEO, highlighting methods and tools for efficient production management.
- Non-serialized Production: Handles materials in bulk without tracking individual quantities, simplifying assembly processes.
- Process Requirements: Define main material, BOM components, routing, and release production orders for non-serialized items.
- App Usage: Use Manage Work Center Queue, My Work Queue, and Perform Work apps to navigate operation activities.
- Quantity Reporting: Post quantities for yield or scrap using the Perform Operation app with real-time adjustments.
- Operation Segments: Complete setup and teardown segments independently, ensuring smooth transitions in production workflow.