You are using Microsoft SQL as database engine, and you're experiencing one of the following.
This is not a PPM problem, but a database one.
Besides increasing the space in the logs drive, a way to workaround this is to shrink the transaction log.
The query below will drop the existing Transaction log.
After doing this, do a full backup (since point-in-time rollbacks will not be possible), and shrink the log file to regain disk space.
After shrinking the log file, you can set the Recovery model to Simple, and also set the new size limit for the log file.
If Auto-growth is enabled, the Log file will grow up to that limit. Once the limit is reached, it will overwrite itself.
Considerations to have about Simple mode:
When you switch over to Simple mode, you lose what it's called 'point-in-time' restore.
You can only go back to the latest full backup.
This is really up to your DBA's consideration, and backup/recovery schema for the affected environment.
In Full mode, you'd receive an error that the transaction log is full, and the operation could not be completed.
How to shrink the Transaction Log: