Your Perfect Plant with SAP

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1 Your Perfect Plant with SAP Local Execution Combined with Global Coordination Tony Aschwanden Pre-Sales Principal Manufacturing EMEA 27 th January 2011

2 AGENDA 1.Overall SAP Manufacturing Strategy 2.Manufacturing Execution with SAP 3.MES Integration with the Enterprise 4.Real-time Visibility 5.Manufacturing Outlook 2010 SAP AG. All rights reserved. / Page 2

3 Touchpoints between Plant and Enterprise Products Speed to Market Supply Chain Manufacturing Network Assets Plant Execution

4 Now is the time for Manufacturing Transformation Business Transformation Manufacturing Operations Transformation Coordination Integration Manufacturing Network Plant to Enterprise Execution Plant Operations

5 SAP Manufacturing Partner Landscape Perfect Plant - Manufacturing Processes SAP SCM SAP ERP SAP SAP Partner Eco System SHOP FLOOR SAP MII SAP ME SAP PCo Machine 1 Machine 2 Machine n Integration, Process- & IT Architecture Process- Application Implementation Knowhow Special product and process expertise to complement SAP Go-to-market and deliver implementation projects High-touch engagements with selected partners to drive co-innovation for specific markets (e.g. industry-specific Add-Ons, Equipment Integration)

6 SAP Manufacturing Execution SAP ME Customers

7 AGENDA 1.Overall SAP Manufacturing Strategy 2.Manufacturing Execution with SAP 3.MES Integration with the Enterprise 4.Real-time Visibility 5.Manufacturing Outlook 2010 SAP AG. All rights reserved. / Page 7

8 Integrated Manufacturing Operations COMPONENT MANUFACTURING DISTRIBUTED MANUFACTURING BUILD AND TEST DELIVERY IN SERVICE SAP ME Manufacturing Execution WORK INSTRUCTIONS, BOM MANAGEMENT, ENGINEERING CHANGES TRACEABILITY & GENEALOGY, CERTIFICATION, AUDIT TRAILS PRODUCTION ORDERS, ROUTINGS, TOOLS, MBOM MRP/ERP MANUFACTURING ENGINEERING NON- CONFORMANCE TRACKING CORRECTIVE & PREVENTIVE ACTION QUALITY INFORMATION, GENEALOGY INFORMATION QUALITY MANAGEMENT REGULATORY REQUIREMENTS CUSTOMER REQUIREMENTS

9 Key Capabilities of SAP Manufacturing Execution Data & Processes Visibility Flexible Enhancements Vertical Integration SAP AG All rights reserved. / Page 9

10 SAP Manufacturing Execution PLM - Enterprise & Supply Network Planning - Order Fulfillment - Controlling & Financials Roles Enterprise Plant Integration Processes User Planner Bi-directional, buffered data transfer Fine-granular, event-driven shop floor processes Real-time Dashboards Plant Mgr Production Reporting Machines Plant Connectivity Product and Process Data (WIP and archive) SAP MANUFACTURING EXECUTION Core components ME MEINT/MII PCo Operator-UIs Quality Mgr Operator People SAP AG All rights reserved. / Page 10

11 SAP Manufacturing Execution Data & Processes Stand-alone Manufacturing Execution System (MES) for discrete manufacturing Detailed modeling of production processes, and dynamic control of WIP execution Real-time production information Product and process quality improvement: role-specific provisioning of relevant information Zero-defect production Compliance with internal and external regulations Serialized Traceability Full Integration between shop floor and enterprise Production and Process Management Process planning and modeling Process data collection and monitoring Paperless production (Operator Terminal) Alerm/Event Management Quality Management & Traceability Tests & SPC Defect recording and Non-conformance management Serial number / Batch / Time-based material Traceability Process-Traceability Plant /Machine Data Collection Time recording Machine connectivity Production monitoring (WIP, OEE, Yield, Line monitor, machine status, etc.) Production-Reporting Enterprise Integration (ERP, PLM, etc.) SAP AG All rights reserved. / Page 11

12 Forward and Reverse Traceability Forward and Reverse Traceability (comb) If a nonconformance is identified on the shop floor, a combination of backward and forward traceability can be used to see where faulty materials originated from and where the finished goods containing the faulty materials are located: WIP, inventory or customer SAP AG All rights

13 Touch-Screen Terminal Interface Software Demo

14 AGENDA 1.Overall SAP Manufacturing Strategy 2.Manufacturing Execution with SAP 3.MES Integration with the Enterprise 4.Real-time Visibility 5.Manufacturing Outlook 2010 SAP AG. All rights reserved. / Page 14

15 SAP Manufacturing Execution Application Enterprise Enterprise & Supply Network Planning Order Fulfillment Shop Floor SAP Manufacturing Execution RFC BAPI IDOC Enterprise Integration Process & Production data UI Web Service Real-time Process Monitoring & Visualization Work in Progress ODS Aggregation, Audit Log, Archive Machine & Equipment Integration Enterprise & Productions Reporting

16 SAP Manufacturing Execution 5.2 Discrete Industries System Landscape Business Process View Planner Administrator Manager Supervisor Operator Inspector SAP ERP SAP MII SAP ME Order Management 1. Create Order Floor Stock Management 4. Receive Inventory Return BAPI Start WIP 3. Receive Equip Usage BAPI Nonconformance Mgmt 3. Receive Quality Notification BAPI Equipment Status 3. Create Maintenance Order IDOC Floor Stock Management 6. Receive Inventory Scrap BAPI 1 Order Management 2. Import Order Floor Stock Management 2. Import Inventory Receipt Floor Stock Management 3. Export Inventory Return Floor Stock Management 5. Export Inventory Scrap Start WIP 2. Export Equip Usage Nonconformance Mgmt 2. Export Nonconformance Equipment Status BAPI 2. Export Equip Status Change Order Management 3. Manage Orders Floor Stock Management 1. Manage Floor Stock 2 Time Base Components 1. Process TBC Start WIP 1. Process WIP Assembly 1. Assemble Components Quality Data Collection 1. Collect Data Equipment Status 1. Manage Equip Status Nonconformance Mgmt 1. Manage Nonconformance 7 Equipment Status IDOC 4. Import Maintenance Order Equipment Status 1. Manage Equip Status Equipment Status Equipment Status BAPI 6. Update Maintenance Order 5. Export Equip Status Change WIP Management 3. Receive WIP Scrap SAP 2007 / Page 16 BAPI Complete WIP 3. Confirm Operation Complete BAPI Genealogy Management 3. Process Goods Movement WIP Management 2. Export Scrap Complete WIP 2. Export Data Collection Genealogy Management BAPI 2. Export Component Removal Equipment Status 7. View Resource OEE KPI s Production Monitoring 1. Monitor Production Genealogy Management 1. Manage Genealogy WIP Management 1. Manage WIP Complete WIP 1. Complete WIP Electronic Signature 1. Perform Buyoffs

17 AGENDA 1.Overall SAP Manufacturing Strategy 2.Manufacturing Execution with SAP 3.MES Integration with the Enterprise 4.Real-time Visibility 5.Manufacturing Outlook 2010 SAP AG. All rights reserved. / Page 17

18 SAP ME - Digital Manufacturing Production Overview

19 Graphical Line Monitor

20 Graphical Machine Line SAP 2008 / Page 20

21 SAP ME 5.2 Exploration with Bobj Landscape (Regional) Production Back-office Management Exploration SAP ME BIAR ME Universes Create Explorer Manage Spaces SAP Business Objects Explorer on a PC (InfoView) Explorer ME WIP ETL ODS Manufacturing Analytic with Explorer More Effective Decisions Real-time Data (Detailed) Historical Data (Summaries) SAP Business Objects Explorer on ipad ME 2010 SAP AG. All rights reserved. / Page 21

22 Explorer on ipad 2010 SAP AG. All rights reserved. / Page 22

23 SAP Value Proposition Productized integration Predefined integrated processes and data flows Reusable standards-based templates Fast time to value Adaptive to organizational and mission change Functional advantages Flexible process model and configuration ability Ease of use Deep genealogy and traceability Strength in enforcing the build process Low risks Deep experience with large-scale systems projects Leveraging of common program office and leadership Single point of support for strategic business solutions Commitment of SAP management to your success Enabling lean strategies Low total cost of ownership Total cost of ownership less than other point solutions (over 5 years) Minimized integration, support, and upgrade costs

24 AGENDA 1.Overall SAP Manufacturing Strategy 2.Manufacturing Execution with SAP 3.MES Integration with the Enterprise 4.Real-time Visibility 5.Manufacturing Outlook 2010 SAP AG. All rights reserved. / Page 24

25 Manufacturing within the SAP Strategy New Opportunities Emerge Ideas that keep Solution Managemet busy at the moment Manufacturing in the Center of the Value Chain Intelligent Analytics and Dashboards on Mobile Devices Mobile Workflows for Plant Managers and Supervisors Mobile Work Instructions for Operators Self-suffcient Easy-to- Consume Solutions Co-Innovation with Partners for Industry specific Add- Ons In-memory Technology to manage production performance with High-volume Production data.

26 Key Trends Driving Future Innovation Areas for Manufacturing Increasing complexity through distributed and collaborative product development and production supply processes Enable tighter integration between engineering, production, partners, subcontractors, and service providers to accelerate product introductions and increase manufacturing efficiency Need for real-time transparency and visibility across an ever-changing value chain for fast decision making Low total cost of ownership infrastructure to support enterprise-wide harmonization of manufacturing performance metrics and best business practices Continued pressure to drive down the costs of local or owned production plants and assets State-of-the-art shop floor execution capabilities across different manufacturing styles encompassing industry nuances Event-driven execution control FUTURE DIRECTION

27 Thank you!

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