Unrestricted Siemens AG 2017

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1 Presentation date: Tuesday, , 16:00 Presenter Name: Martin Michel, Udo Buschbeck Room name: Room 2 (Foyer 1) Presentation Title: From Integrated PLM-ERP Environments to CLM Page 2

2 Page 3

3 Warm Up Survey Page 4

4 Digitalization changes everything The next trillion dollars will be earned with data for our customers and for our industries. Michael Dell, founder of Dell Inc. Digital is the main reason just over half of the companies on the Fortune 500 have disappeared since the year Pierre Nanterme, CEO Accenture

5 New business models in the internet age are disrupting complete markets to e-book to streaming From bookstore From record store to marketplace to ride sharing From Yellow Pages From taxi Siemens AG 2017 Page 6 April 2017 siemens.com

6 Siemens AG 2017 Page 7 April 2017 siemens.com

7 PLM Teamcenter ERP SAP S/4HANA SAP Business Suite Oracle E-Business Suite 2nd tier ERP Siemens AG 2017 Page 8 April 2017 Active Integration Solutions Key factor in realizing the Digital Enterprise Based on the proven integration products (Teamcenter Gateway Product Family) Tools combined with dedicated business process and enterprise system integration consulting MES Camstar Interspec SIMATIC IT UA 3rd party MES EA 3rd party enterprise applications siemens.com

8 From Integrated PLM-ERP Environments to CLM* Active Integration, what s next? *Closed Loop Manufacturing

9 Session Goals Explain current situation and challenges Initiate discussion how enterprise system integration can support your way on road to digitalization

10 Agenda Retrospective The known challenges The Golden Triangle How to run integration projects successfully Take away Page 11

11 What we ve done

12 Retrospective Last 15 years TDM / PDM mutate into PLM Increasing number of engineering driven integration projects Tools & implementation methodology are mature. Processes are what matters Integration of PLM and ERP is part of almost all PLM projects First TDM / ERP integrations Page 13

13 From integrated PLM ERP environment to CLM Lessons learned from previous 15 years Integration technology is available and mature. Discuss to-be processes first! They determine the needs for integration technology. Keep people, tools and processes aligned and focus on business goals. Page 14

14 The Well Known Challenges

15 To boot ERP people did not join in that example ;-) Page 16

16 Challenges Integration tools are available and proven (>400 customers) Active Integration solutions bridges the gap between PLM and ERP, MES, or other enterprise applications through Data Integration, Data Federation and Process Integration People and organizations are asked to change how they work, so organizational change management should be part of the plan Right setup of project team is key (experienced, encouraged, commonly accepted) Processes are described pretty well, but often silo scoped Discussing end-to-end processes requires efficient change culture supported by senior management To-be process definition meant to enable seamless cross organizational collaboration Everybody needs to understand what s new and changed, so don t forget teaching the benefits of new processes and how to operate them. Page 17

17 The Golden Triangle

18 The Golden Triangle Page 19

19 Level 0, 1, 2 Automation & Controls Level 3 MOM Level Level 4 Enterprise Level Business-to-plant-floor communications model ISA-95 PLM ERP MES Batch Control Continuous Control Discrete Control Page 20

20 The Golden Triangle We ve already did it years ago Page 21

21 Type of manufacturing drives process / tool landscape MTS MTO ETO MES users face a critical choice: PLM or ERP (white paper issued by ) Page 22

22 Golden Triangle survey Page 23

23 Objects to be typically bridged Material Master Material Master BOM(s) PLM ERP BOM(s) MES As Built / Maintained Production Order Service Event Service Order Service Order others Production Order As Built / Maintained others Production Data Acquisition Performance Analysis Quality Management Page 24

24 Object overlaps Master data questions (MM, BOM) Material Master BOM(s) As Built / Maintained Service Event How can different object behavior be linked to the extend needed? Where is different level of master data stored? PLM ERP Who authors this information? Who needs what pieces of information? When? Which types of BOM(s) do we have and do we really need? MES Who creates BOMs initially? Who consumes BOMs? What s the impact if existing data model is changed/extended? Is configuration used in context Work of Area BOMs? Service Order Material Master BOM(s) Production Order Service Order others Production Order As Built / Maintained others Production Data Acquisition Performance Analysis Quality Management Page 25

25 Object overlaps Master data questions () Material Master BOM(s) As Built / Maintained Service Event others What drives routing definition and content? Who is consuming routing information? Which is the context? PLM ERP Who is creating routing initially? Who is consuming routing? How is routing change managed in general? How are last minute changes handled? What level of detail of routing is MES required in the 3 domains? What are he workflow steps, and what is the data flow supporting that, for closed-loop manufacturing with ERP (PLM-MES-ERP)? What s the impact? Production Order As Built / Maintained Service Order Material Master BOM(s) Production Order Service Order others Page 26 Production Data Acquisition Performance Analysis Quality Management

26 Object overlaps Master data questions () Material Master Material Master BOM(s) As Built / Maintained How does work area definition looks like in each domain? PLM ERP How are work areas consumed in those domains? How are work areas linked to physical assets? Who masters the information? MES Which information is required in which domain? BOM(s) Production Order Service Event Service Order Service Order others Production Order As Built / Maintained others Production Data Acquisition Performance Analysis Quality Management Page 27

27 Process questions (MM & BOM) Material Master BOM(s) As Built / Maintained Which events trigger transfer processes? Who masters PLM which piece of in information in which ERP phase of life cycle? Is there a shift of responsibility? Where are changes initiated? How are changes managed across the domains? MES How to orchestrate cross system MM & BOM processes? Where are make or buy decisions made? Material Master BOM(s) Production Order Service Event Service Order Service Order others Production Order As Built / Maintained others Production Data Acquisition Performance Analysis Quality Management Page 28

28 Process questions () Material Master Material Master BOM(s) As Built / Maintained How to deal with last minute changes of production orders? PLM ERP Which information needs to be synchronized? When? Who is involved in proper design of planning and execution phase? How is engineering & manufacturing change process aligned? MES Who triggers changes? BOM(s) Production Order Service Event Service Order Service Order others Production Order As Built / Maintained others Production Data Acquisition Performance Analysis Quality Management Page 29

29 Process questions (s) Material Master BOM(s) As Built / Maintained Who maintains proper work areas for production engineering? PLM ERP Who maintains proper work areas for operational product execution? Who decides which work area is used in a specific production order context? Who tracks work area load? MES How are work area redirections handled? Material Master BOM(s) Production Order Service Event Service Order Service Order others Production Order As Built / Maintained others Production Data Acquisition Performance Analysis Quality Management Page 30

30 Process questions (MRO) Material Master BOM(s) As Built / Maintained How are service events initiated? In which domain PLM are service events initiated? ERP What needs to be supplied to create a service order? What are the results of the services activities? What happens to the results of MES the service activities? How can they be used for follow up service loops? Material Master BOM(s) Production Order Service Event Service Order Service Order others Production Order As Built / Maintained others Production Data Acquisition Performance Analysis Quality Management Page 31

31 Active Integration Solutions Integration technology Teamcenter Gateway for SAP S/4HANA Teamcenter Gateway for Oracle EBS PLM (Teamcenter) ERP (SAP ECC, S/4HANA, Oracle EBS) MES (Simatic IT, Camstar) Teamcenter Camstar Integration (available for medical devices 11/2017) Teamcenter Simatic (UA DM, planned) Camstar to SAP (planned) Simatic to SAP (UA F, planned) Page 32

32 Active Integration Solutions Integration technology Other 3 rd party systems can be linked using Teamcenter Gateway for Enterprise Applications, similar for MOM-ERP Page 33

33 SIT UA ERP Teamcenter Example process - CLM for discrete manufacturing CLM SITUA Integration Data Flow Delivery - August 2017 Author 150% BOP configurations to define Process, Operation, Document, Tools, Human Resource, WorkArea, Product assignment across Product Variants Review, Approve and Release 150% BOP elements (item revisions) Create Work Order CC object based on ERP metadata info Start export of Work Order specific BOP configurations Create IR and associate Work Order CC, URL to SITUA and GIF image. Generate Work Order based on Demand Planning Create BOP elements (item revisions) along with Master Plan structure (No Variant Conditions or Effectivities). Create Work Order ID with basic metadata info Update Work Order with configured BOP structure (Process, Operation, Product) Execute Work Order Report Issue for Engineering Review Page 34

34 Example process - CLM for medical devices Page 35

35 What s new nowadays Integration technology is available Disruptive Changes Serious market requirements Standard tools are available Page 36

36 How To Run Integration Projects Successfully

37 Seamless end-to-end process integration Best practice approach Target setting (Typically done by customer on their own) Identification of Business Goals Verification Analysis of relevant overall business process (big block) Scoping Roll out Description of processes and derivation of capabilities & functional data model Business Processes Verification of complete processes Definition of technical solution / technical process flows and technical data model Solution Outline Basic integration tests (single process flows & scenarios) and optimization Derivation of building blocks and functional specification Features Unit tests of building block functionality Implementation Page 38

38 Take Away

39 Take away Process integration is a key enabler for end-to-end process optimization because these processes touch PLM, ERP & MES at the same time. Integrated and optimized processes offer biggest potential for improvements, supported by technology. Consider the possibilities of current technology to support streamlined processes, rather than tweaking tools to link old fashioned processes. Page 40

40 Our Conclusion Technology and integration strategy are there! Lets talk about your processes Wenn Sie einen Scheißprozess digitalisieren, dann haben Sie einen scheiß digitalen Prozess. Thorsten Dirks, CEO Telefonica Deutschland AG (IT Summit 2015, Berlin) Page 41

41 Thank you!

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