An Overview on SAP Connected Manufacturing supporting Industries 4.0 Chinaplas - April 27, 2016 Dr. Juergen Weiner SVP Products & Innovation SAP SE - Shanghai
Challenges to Manufacturing Today The Market of One Customized offerings to meet the unique needs of individual customers Extreme Variability Multi-faceted configuration and highly variable demand with regional and localized requirements Rapid Innovation Time to market pressure for designing and producing innovative products and services 2015 SAP SE SE or or an an SAP SAP affiliate company. All rights All rights reserved. reserved. Internal Customer 1
Internet of Things and Industrie 4.0 SAP Connected Manufacturing runs Industrial IoT with Industrie 4.0 scenarios Internal INDUSTRIAL scenario External scenario Industrie 4.0 focuses on all manufacturing industries and leverages value inside the four industrial walls and the production networks of the enterprise. Key topics are lot size of one, flexibility, traceability, production documentation and execution leveraging seamless integrated business processes connecting the top floor with shop floor. Internet of Things ERP» All industries» All things and devices SMART THINGS SMART DEVICES 1 MES SCADA / HMI Machine Layer Industrie 4.0» Manufacturing industries» OT- IT Convergence» Systems, things and devices in the Shop floor The external Internet of Things scenarios enable all smart devices and things to be connected wherever they are. Once connected the information can be transformed and new business scenarios can be realized. SMART industrial THINGS SMART industrial DEVICES 2
Made in China 2025 Strategy Goal & Objectives What is Made in China 2025? "Made in China 2025" is an initiative to comprehensively upgrade Chinese industry. The Made in China 2025 plan will embrace the fourth industrial revolution concept - what some call Industry 4.0 - while opening itself to advanced ideas from countries such as the United States and Britain, the MIIT said. What is the Goal? The Ministry of Industry and Telecommunication Technology (MIIT), which led the creation of the Made in China 2025 plan, said the strategy is intended to give China an edge in innovation, green development and quality goods. The goal is to comprehensively upgrade Chinese industry, making it more efficient and integrated so that it can occupy the highest parts of global production chains. The plan identifies the goal of raising domestic content of core components and materials to 40% by 2020 and 70% by 2025. 2015 SAP SE SE or or an an SAP SAP affiliate company. All rights All rights reserved. reserved. Internal Customer 3
Industrie 4.0 What is it? 4
Context of Industrie 4.0 along the Value Chain Transparency, Flexibility, Individualization and Integration are key principles Predictive Maintenance Digital Product Memory Remote Service Management Track & Trace Smart Products Adaptive Logistics Energy Management Resilient Production Performance based Contracting R&D Sales Supply Chain Manufacturing Aftermarket Service Smart Data 5
Connected Manufacturing 5 Scenarios of Connectedness 5 4 Quality Operator 5 Machine Cloud 4 3 Mfg Collaboration 3 Supplier Business Networks Service Provider E-Commerce Consumer 5 Scenarios ERP 1 Shop Floor to Top Floor 5 1 1 MES SCADA/ Historian Machine Layer Manufacturing Company 2 3 4 5 Machine to Machine e-commerce Integration Manufacturing Collaboration Machine Cloud 2 6
E2E Business Process for Lot Size ONE Service Provider Machine Cloud E-Commerce SAP ERP SAP Manufacturing Execution Suite Consumer/ Customer Seamlessly integrated process for Personalized Products: From e-sales Order Entry to Production and Repair Sales Order Entry; Configuration Information + Personalization Automatic update of Manufacturing Process Data based on configuration Planning of Production, Preparation of Production Production Execution of individual product guided by MES; tightly integrated with Machines Lot Size 1 High responsiveness to short term changes High Flexibility Combined Machine Data & Business Data analytics; e.g. Predictive Maintenance High Transparency Service & Repair Individualized Product Tracking 7
E2E Business Process for Lot Size ONE Designing Configurable Products Product Design Team: Service Provider Machine Cloud E-Commerce Consumer/ Customer SAP s connected products strategy allows customers to design and manage their engineering data in a user friendly, integrated environment. In addition to managing their design data, engineers can easily set up the options that will drive their company s product offerings, sales, and ultimately, manufacturing. PLM ERP SAP ME / MII 8
E2E Business Process for Lot Size ONE Handover to Manufacturing Compelling Human support from Engineering to Execution: Service Provider Machine Cloud E-Commerce Consumer/ Customer Handover Engineering Data to Manufacturing leveraging 3D Models (SAP Visual Manufacturing Planner) PLM ERP SAP ME / MII 9
E2E Business Process for Lot Size ONE ecommerce - Selling Products Customer View 1) When a customer comes to your SAP Hybris power eshop, they will see the same configuration options that were defined by engineering Service Provider Machine Cloud E-Commerce Consumer/ Customer 2) The intuitive interface allows them to quickly find the product that suits their needs, add it to their cart, and place their order. 3) For example, you might input the desired payload. PLM ERP 4) When confirmed, the order is now ready to be sent to the shop floor. SAP ME / MII 10
E2E Business Process for Lot Size 1 Producing Products Display of Assembly Step Work Instructions Shop Floor User: Service Provider Machine Cloud E-Commerce Consumer/ Customer Utilizing the POD, the operator accesses the corresponding visual work instruction by selecting the work instruction button on right hand side of the POD to assist in proper assembly of the robot arm wrist component. A work instruction 2D or 3D assembly video is presented in the POD to guide the operator thru each assembly steps at this operation. The steps can be replayed if necessary during assembly ERP SAP ME / MII 11
E2E Business Process for Lot Size 1 Machine Cloud Predictive Maintenance & Service Service Provider: Combined Machine Data & Business Data analytics; e.g. Predictive Maintenance Service Provider Machine Cloud E-Commerce Consumer/ Customer The data is transferred to SAP HANA cloud for big data analysis to evaluate the condition of the robots. ERP SAP ME / MII 12
Summary Not the latest technologies should be in the forefront of the Industrie 4.0 discussion Derive Business benefits Explore new business model based on these technologies A tight integration between ERP-Systems and MES System is key to leverage the potential of Industrie 4.0 Perfect realization of Lot Size of 1 SAP delivers the E2E solution for manufacturing for today and tomorrow supporting the Made in China 2025 Initiative Connected and embedded 13
Thank you & Questions? 2015 SAP SE or an SAP affiliate company. All rights reserved. 14
Take control of your shop floor! Implement SAP ME for discrete manufacturing Configure and customize interfaces and master data per business requirements Apply SAP ME functionality to assembly manufacturing scenarios Implementing SAP Manufacturing Execution 480 pages, 2016. E-book: $69.99 I Print: $79.95 I Bundle: $89.99 ISBN 978-1-4932-1239-2 Purchase the book in China at: ecppc@inspirees.com Purchase the book and e-book at: www.sap-press.com/3868
Thank You Dr. Juergen Weiner SAP SE SVP Products & Innovation juergen.weiner@sap.com 2015 SAP SE. All All rights rights reserved. reserved. Internal 16 16