Digital Manufacturing & Operations. Mohammad Kawasmi

Transcription

1 Digital Manufacturing & Operations Mohammad Kawasmi

2 Trends and Challenges in Manufacturing Operations

3 Digital Transformation and the Internet of Things» Enable a step-change in productivity» Reimagining new business models and processes» Changing how people will work» Manage and mitigate risk Business Value Benchmarks Source: IDC White Paper, sponsored by SAP, The Future Services Sector: Continuous Delivery for Competitive Advantage, 2017 Productivity improvements e.g. lower maintenance costs (up to 60%), or lower capital appropriations (25%) New business models resulting in higher net promoter scores that deliver 15%-25% faster revenue growth than the industry average People process optimization leading 10 to 30% higher productivity in the form of higher outputs and lower costs Lower risks e.g. better worker safety or lower claims payout (5-10%) in insurance industry SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 45

4 Internet of Things as a Key Driver of Digital Transformation Business Megatrends Consumerization Digitization Networks Product personalization Consumer experience Sharing economy Fast demand cycles Real-time visibility Data-driven business models Everything-as-a-service Circular economy Distributed manufacturing Logistic & Manufacturing networks Agile supplier networks Smart Contracts Technology Trends In-Memory computing, Big Data Mobile & conversational Machine learning, Artificial intelligence Sensors built in / intelligent things Cloud scalability, elasticity, availability Ubiquitous connectivity, Edge computing Blockchain & smart agents Autonomous systems & robotics 4

5 Global Manufacturing Trends Transformation of business models and processes Yesterday Mass Production Outsourced manufacturing Offshoring Fixed production lines Standard products Manual processes Hierarchical decision process Plant Based siloed information Today Mass customization Distributed manufacturing networks Nearshoring Cyber physical systems Individualized products Fully automated processes Decentralized flexible decision process Global transparency Manufacturing Insights Deterministic models Paper based work instructions Capital Intensive Manufacturing models Analog products Predictive models Smart 3D work instructions Service based manufacturing models Smart Products 3D Visualizations 5

6 More Challenges to Manufacturing Today Source: Cyber-Security» Increasing Interoperability = Increasing Vulnerability» Manage Complexity AI / Machine Learning» Insight to Automation (immediate action)» Pattern Recognition» Autonomous Systems, Edge Processing Modular Assembly» Assembly Line replaced by Cellular Manufacturing» New organizational structures require ad-hoc decisions» Increasing Interoperability AI : Artificial Intelligence 48

7 Industry 4.0 The Fourth Industrial Revolution Major shifts in customer demands and manufacturing capabilities are accelerating business transformation with Industry 4.0 Industry 4.0 is the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things and cloud computing. Industry 4.0 creates what has been called a "smart factory". Design Principles Interoperability Information Transparency Technical Assistance Decentralization of Decisions 49

8 What is Industry 4.0 About Examples of Industry 4.0 requirements 8

9 Industry 4.0 requirements have different purposes Smart Factory Operations Factory Operational Analytics 9

10 Digital Supply Chain Overview & Strategy

11 The Intelligent Digital Supply Chain of One, Powered by SAP Leonardo Analyze and Manage the Supply Chain of ONE Manufacture the Lot Size of ONE Digital Manufacturing Digital Logistics Design and Maintain the Product of ONE Digital Product Network of Digital Assets Plan and Deliver to the Customer Segment of ONE Digital Business Planning Digital Twins Analytics Blockchain Internet of Things Powered by Leonardo Machine Learning Big Data SAP Cloud Platform Microservices Open APIs Flexile Runtimes Integration Multi-Cloud Infrastructure SAP Data Center Google Cloud Platform Mircrosoft Azure Amazon 11

12 SAP S/4HANA Suite Introducing the next generation core and lines of business solutions for the digital economy Suite SAP S/4HANA FINANCE SAP S/4HANA HUMAN RESOURCES SAP S/4HANA SOURCING & SAP S/4HANA MANUFACTURING SAP S/4HANA SUPPLY CHAIN PROCUREMENT Products Digital Core S/4HANA EnterpriseManagement Streamlined Procure to Pay Accelerated Plan to Product Optimized Order to Cash Enhanced Request to Service HR Connectivity Core Finance Products Suite SAP S/4HANA SALES SAP S/4HANA SERVICE SAP S/4HANA MARKETING AND COMMERCE SAP S/4HANA ASSET MANAGEMENT SAP S/4HANA RESEARCH & DEVELOPMENT Cloud for Sales Cloud for Service Cloud for Marketing INDUSTRIES 12

13 SAP Leonardo Innovation Portfolio 13

14 SAP Digital Manufacturing & Operations Strategy / Portfolio Overview

15 Trends Impacting Digital Manufacturing Internet of Things and Industry 4.0 S A P Digital Manufacturing runs industrial IoT with Industry 4.0 scenarios Internal INDUSTRIAL scenario External scenario Internet of Things SMART Industrial ERP (PLM, PP) M ES SCADA / HMI Machine Layer Industrie 4.0» Manufacturing industries» OT-ITconvergence» Systems, things, and devices on the shop floor» All industries» All thingsand devices» Ubiquitous» Personalized THINGS & DEVICES 15

16 Accelerate the Enterprise Success Higher Productivity due to Simplification How to accelerate and grow productivity and profitability in complex business environment? How to run business and production seamlessly integrated? Need for SMART SIMPLIFICATION (1) Top Floor to Shop Floor Consumer/customer Business Networks SAP ERP SAP IBP (2) Customer to Operations SIMPLIFY HARMONIZE REDUCE SAP Digital Manufacturing SAP PCo to Automation 16

17 SAP Manufacturing Execution Suite Innovation strategy SAP Digital Manufacturing Insights (Cloud) Rapid innovation through side-by-side extensions in the cloud SAP Distributed Manufacturing (Cloud) SAP MANUFACTURING EXECUTION SUITE (On-premise) +++ CONTINUOUS INNOVATION +++ SAP MANUFACTURING EXECUTION SUITE (On-premise) SAP MII SAP ME SAP PCo SAP MII SAP ME SAP PCo Includes SAP Manufacturing Execution, SAP Manufacturing Intelligence and Integration, and SAP Plant Connectivity Side-by-side with S/4HANA innovations SAP S/HANA (on premise) Manufacturing Engineering ** Manufacturing Planning 17

18 SAP Digital Manufacturing Industrial IoT Digital Manufacturing Insights Distributed Manufacturing Network S/4 HANA Enterprise Management Asset Intelligence Network OEM Cloud (Mindsphere)» Business Context» OEE, Energy Management Connected Digital Manufacturing SAP ME SAP MII SAP ME SAP MII SAP QIM SAP CAMS» Multiple vendors» Multiple machines SAP PCo SAP PCo SAP OEE 18

19 SAP Digital Manufacturing Solutions and Factory Automation Automation Pyramid in conjunction with IoT Cloud approach ERP (PLM, PP) SAP ERP Partner Applications Digital Manufacturing Insights Operator MES SAP Manufacturing Execution Suite SAP PCo SAP Cloud Platform DIGITAL TWIN Asset Intelligence Network Manufacturer SCADA / HMI GREEN FIELD BROWN FIELD Supplier Machine Layer IO-LINK GATEWAY SMART BRIDGE SAP Leonardo Edge Device DATA DATA 19

20 Connectors SAP Digital Manufacturing Architecture The Digital Plant in the Extended Supply Chain MONITOR DESIG N PLAN RES P O N D PRODUCE DELIVER OPERATE ERP» Production plan» Bill of materials (BoM)» variant management» production steps» Serial Numbers» Quality results per lot» Order confirmation» Inventory update, Equipment usage M E S (ME & MII)» Production details management» Detailed and flexible» production step routing» Shop floor controls for each step» Log parametric data» tolerance checks» Return conformance or non-conformance decisions PCo» Mapping of ME production details to PLC control parameters (recipe)» Mapping of ME production details toplc control parameters (recipe) PLC (Machine)» Sensor detects material carrier» Requests control parameters from ME» Machine reports completion and requests next operation 20

21 SAP Digital Manufacturing Solutions The foundation for Industry 4.0 in the Cloud and On-premise Distributed Manufacturing Digital Manufacturing Execution Predictive Quality Digital Manufacturing Insights Manufacturing Integration & Intelligence Manufacturing Planning & Scheduling Production Engineering & Operations Environmental Health & Safety (Cloud) (On Premise) (*New Cloud) (Cloud) (On Premise) Digital Manufacturing Suite S/4 HANA 21

22 SAP Digital Manufacturing Cloud Solutions The foundation for Industry 4.0 in the Cloud and On-premise Distributed Manufacturing Digital Manufacturing Insights Predictive Quality Connected Worker Safety (Q2 2017) (Q3 2017) (Q2 2018) (Q2 2018) 2018 Digital Manufacturing Cloud 22

23 Use Case: Digital Twin Closed Loop Engineering Cost Stress Simulation Geometries Designs... Quality Fingerprint Production data... Ramp Up Cost Stability Issues Performance... Ideas The Digital World ENGINEERING PRODUCTION SHIP OPERATION DECOMMISSION The Physical World? AS DESIGNED AS BUILT AS DELIVERED AS MAINTAINED 23

24 SAP S/4HANA: Manufacturing Engineering & Operations is a solution capability extending the S/4HANA digital core to bridge the gap between engineering and manufacturing byfacilitating digital collaboration of manufacturing master data, design structures handovers, process planning and intelligent change management.. Key Capabilities Product Engineering Manufacturing engineering Manufacturing Plant Bridge the gap between product design and manufacturing Hand over an engineering bill of material to a manufacturing bill of material Define routings and component allocationsand author work instructions Manage changes coming from engineeringor manufacturing Analyze change impact and support change implementation 3D visual support for BOM items and animated work instructions 24

25 S/4HANA: Manufacturing Planning & Scheduling Key Capabilities Manufacturing Planning Cockpit Comprehensive planning environment comprising Material Requirements Planning Production Planning Capacity Planning Advanced planning capabilities Heuristics and optimizers for finite planning & scheduling Industry specific planning logic (e.g. block planning, model mix planning) Decision support Simulation and what-if analysis Comprehensive multi-level planning runs Covering all kinds of materials and planning methods in one run Leveraging new planning approaches e.g. Demand-driven replenishment: stock-level management 25

26 SAP Plant Connectivity (PCo) enables the exchange of data between Information Technology (SAP Systems) and Operational Technology (logiccontrollers, devices, plant historian systems) in a manufacturingenvironment. Key Capabilities Bi-Directional data exchange High-performance Interoperability Machine protocol conversion and secure communication with SAP systems Configurable process sequences; orchestrationof independent machine units OPC UA client and flexible WebService invocation (REST, SOAP, OData) Web Socket Sever, Web Server, OPC UAServer; MQTT source and destination Bundling and buffering of notifications; notification delivery retry; rule framework Remote configuration of PCo from SAP MII Open for customer specific enhancements (proprietary protocols and complex processing logic) SAP Manufacturing Integration & Intelligence Shop Floor DCS & SCADA SAP Plant Connectivity PLC Devices and Equipment SAP Manufacturing Execution Supported protocols: RFC, SOAP-WS, ABAP Push Channels (WebSocket), ODBC,ODATA, REST OPC UA, MQTT, OPC DA, OPC HDA, OPC A&E, Citect, IP21, Osisoft PI (2), Proficy Historian, File-Monitor (2) ODBC, OLE DB, Socket, Modbus SDK for proprietary, specific agents (e.g. ifm Linerecorder, UDP, RFC1006, Euromap 6x, Atlas Copco Open Protocol and multiple other project specific implementations, Kafka) Plant DB & Historians SAP ERP or S/4HANA Devices & Sensors LIMS 26

27 SAP Manufacturing Integration and Intelligence (MII) enables you to integrate your plant and enterprise systems and display integrated data to your employees. You can use SAP MII to view, measure, and compare the performance of plants and assets with different automation system infrastructures. Connect toyour shop floor equipment using SAP Plant Connectivity. Key Capabilities Top Floor SAP ERP or S/4HANA Universal: Extensible manufacturing platform allowing rapid adaption to any manufacturing process. Applicable to all manufacturingindustries and utilities Integration: Provide interoperability (in)between shop floor solutions and enterprise ERP Out-of-the-box Integration SAP MII KPI & Alert Management Composition & Visualization Energy Monitoring Overall Equipment Effectiveness Intelligence: Visualize data using plant information hierarchy from corporate ERP and design own dashboards Integration Process Orchestration Business Intelligence Orchestration via business logic to enable customer-specific processes for planning, execution, maintenance and quality SAP Plant Connectivity Plant Performance Management with out-of-thebox content on OEE management. Capabilities to build and visualize customer specific KPIs with KPI framework Plant DB & Historians Shop Floor DCS & SCADA PLC Devices and Equipment Devices & Sensors LIMS 27

28 SAP Manufacturing Execution (ME) a powerful, enterprise-level, scalable, manufacturing business solution that enables global discrete manufacturers to manage and control manufacturing and shop floor operations and realize Industry 4.0 scenarios. It provides a multi-faceted set of features that integrates business systems to the shop floor, allowing for complete componentand material-level visibility for single and global installations. Key Capabilities Industry 4.0 A thing is born Multi-plant Industry 4.0 enabled shop floor execution solution featuring lot size one production and paperless production Tracking & Tracing / Genealogy Non-conformance management including in-line sampling, visual test and repair Process interlocking and zero failure Role-specific access and personalized dashboards for operators with browser-based UI Easy integration out of the box to SAP ERP and via SAP Plant Connectivity to the shop floor 28

29 SAP Digital Manufacturing Insights is a centralized, cloud-based, data-driven manufacturing performance management solution which enables key stakeholders ofmanufacturing operations to take tactical and strategic decisions to achieve best-in-class manufacturing performance. Key Capabilities Global Analytics Multi-plant Analyze manufacturing performance within and across manufacturing plants of an enterprise Data acquisition from multiple disparate manufacturing application and harmonization of manufacturing data Pre-configured industry standard manufacturing Key Performance Indicators (KPIs) and flexibility to extend or create new KPIs Advanced algorithms for root cause analysis of quality defects, pattern detection and prescriptive suggestions for continuous manufacturing performance improvement 29

30 SAP Distributed Manufacturing provides a cloud-based collaborative platform that connects customers with (additive) manufacturing service providers, e.g., suppliers of 3D printing services, material providers, original equipment manufacturers (OEM), and technical certificationcompanies. Key Capabilities Customer SAP Distributed Manufacturing Collaboration between customers and service providers on design optimization, quality and pricing Technical and economical part assessment by customers Integration with S/4HANA Cloud for sourcing and procurement Service offering advertisement by service providers Extensibility to enable scenarios specificto domains, customers or service providers. Service Bureaus Back 30

31 SAP Predictive Quality* is a solution dedicated to help manufacturers gain valuable insights into the quality aspects of their manufacturing processes, streamline quality management and apply predictive algorithms to reduce losses incurred due to quality issues and recommend corrective actions Key Capabilities Predictive Quality Improvements Diverse quality and contextual data acquisition Quality key performance indicator (KPI) trend& correlation Intelligent quality management and qualityprocess automation Cost of Quality model builder with predictive analytics capabilities Deep dive into quality defect analysis with digital twins Deep Dive * Planned Innovation Back 31

32 SAP EHS Solution Portfolio EHS Incident Management Incident Management Safety Observations EHS Health and Safety EHS Environment Management Management of Change EHS Audit Management Operational Risk Assessment Regulatory and Permit Compliance Management of Change Chemical Approval Industrial Hygiene and Sampling Emissions Management Chemical Management Occupational Health Real Time EHS Reporting and Analytics Action Tracking and Task Management Maintenance Safety Permit to Work Work Clearance/LOTO 32

33 SAP Connected Worker Safety Solution Approach Business Goal Ensure Worker Safety Monitorworkers for real time awareness Demonstrate compliance at all times Better Decision making Improve work efficiency and lower operating costs Business Need React immediately to a hazardous situation or incident Proactively Manage Worker Fatigue and other hazard inducers Provide worker and coworkers continuously relevant information based on a changing work environment Monitor conditions against regulatory and other boundaries Ability to link the information flowing from the worker to enterprise data for better insight Be able to use aggregated monitoring data to make better decisions Robust Communication protocols for rugged conditions and low bandwidth Worker geofencing Deviation / rule management Analytics Notifications Functionality Wearable monitoring IH Statistics calculations Device Interfaces Environment / Exposure monitoring Device Management 33

34 SAP Digital Manufacturing Success Stories Examples More than 2,000 customers running successful Industry 4.0 projects with SAP Digital Manufacturing 65% to 80% Increase in OEE 20% Reduction in production breakdown 6.5% Increase in final product quality 7% Reduction manufacturing costs 19% Increase in net margin 21days to 6hours Cycle time 10% Increase in productivity 75% Reduction in manual execution & data capturing 99.5% First pass yield 3% Manufacturing productivity improvement 100% Track and Trace 50% Fewer stock corrections 3% Decrease in scrap (material waste) 15% Faster production lead time 34

35 Value Proposition

36 Key Opportunities Areas in Manufacturing Key Areas of Opportunity Key Value Drivers Key Strategic Goals 1. Raw Materials Manage raw material variability in line with customer expectations Increased visibility results in right material right place right time Reduce spend on expedited production, labor and freight costs Improve Cost Structure 2. Energy Reduce wasted energy in mechanical and electrical systems Reduce energy loss due to improper PM frequencies in air/steam systems Maximize use of all available energy throughout plant 3. Maintenance Materials & Labor Reduced maintenance labor cost from improved scheduling and execution Enhanced knowledge management, skills sharing and training effectiveness Reduced MRO inventory levels and increased turns, supplier performance Increase Operations Efficiency 4. Mfg Planning 5. Mfg Execution Increased customer sat. and retention due to accurate order delivery dates Decreased inventory and higher asset utilization due to optimal planning Enhanced ability to sense and respond to schedule and order changes Enhanced process visibility supports early detection of potential issues Increased efficiency from optimal allocation and tracking of labor and resources Detect and resolve manufacturing exceptions minimizing rework and overtime ManageAsset Performance 6. AssetAvailability and Efficiency Increase asset uptime through improved maint. planning and scheduling Improved design and life cycle management of the assets Increased effectiveness of preventive and predictive maintenance techniques Drive Compliance 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTER NAL 7. Compliance 8. Quality Reduced number of EH&S incidents and associated costs Lower overall regulatory compliance costs with increased labor productivity Enhanced management of hazardous goods, disposal, waste, and emissions Decreased variability increases product quality and customer satisfaction Proactive problem and variance detection and management of quality issues Enhanced quality compliance supporting continuous quality improvement 78

37 Thank you. Contact information: Mohammad Kawasmi Digital Supply Chain Executive