SAP Mii Implementation at Dätwyler

SAP Mii Implementation at Dätwyler SAP Digital Manufacturing 30 th of May 2017 Stepan Picka Head of Applications Dätwyler IT Services Polní 224, 504 01 Nový Bydžov, Czech Republic stepan.picka@datwyler.com, www.datwyler.com

Agenda 1 Short introduction: Dätwyler 2 The need for change 3 Our way to SAP MII 4 Building the business case 5 Selection of the right partner 6 Our success story: What did we achieve with SAP MII? 2

Stock price (max. value) Dätwyler: Stability & strength of a large industrial group Key Facts Swiss origin, established in 1915 50 operative organizations worldwide 20 manufacturing sites Revenues around CHF 1,200 million Listed on the SIX Swiss Exchange: 150 140 130 120 110 100 90 153,00 147,20 148,70 125,00 99,25 2012 2013 2014 2015 2016 Year Organizational Structure Dätwyler Sealing Solutions Dätwyler Holding Dätwyler Technical Components Dätwyler IT Services Dätwyler Cabling Solutions 3

International presence with more than 8 000 employees worldwide 4

Dätwyler Group Dätwyler Sealing Solution Dätwyler Cabling Solutions Technical Components Industries Health Care Automotive Consumer Goods Civil Engineering Communication- Engineering Electrical Engineering Commercial & Non-Commercial Online Distribution Products Medical Devices Brake Systems Liquid Sealing Applications Building Construction ICT- & FTTx Networks Safety Cabling Building Automation Systems Electronic & IT Devices Automation Products Measurement Technology 5

Key factors starting the change Current landscape not compliant with ISA 95 High dependencies on single system DSS Healthcare Level 4 Level 3 Level 2 Level 1 Establish plant schedule production, material use, delivery and shipping, inventory Workflow, recipe control to produce desired end products, optimizing production Supervisory Control & Data Acquisition Monitoring supervisory and Automated control of the production process Sensing and manipulation of the production process SAP ERP 80% own developed SQL Database Manufacturing Control SAP (global) Switzerland Local MES USA India Belgium Italy No supplier Outdated IT Dependency on 1 single person and internal know how Non supported HW Windows 2003 Servers / SQL 2000 7

Shop floor assessment Problem statement Disparate manufacturing systems Dependency on SAP for manufacturing operations Legacy MES unscalable Assessment Analysis Advice Site visits Stakeholder interviews Study of current landscape MES & SCADA Requirements workshop Current state analysis document Product evaluation Fitment analysis products & requirements Product validation with key stakeholders Solution Fitment Analysis Stage 1 Pre-screening of MES products based on dimensions & criteria Stage 2 Detailed assessment based on user requirements and ISA-95 framework High level architecture Cost & benefit analysis Solution roadmap Sample scenario demonstration on recommended MES platform(s) Benefit analysis As-Is process map URS document Solution Fitment Analysis Snapshot High level architecture Solution roadmap 9

Results of the tool selection Wonderware Archestra Rockwell Factory Talk SAP MII Pros Leveraging current investments in plant automation Good integration capabilities with L2 & L4 systems Deep knowledge in automation technology Open integration platform enables broad interoperability & real-time information flow Modular architecture of MES solution MES solution comes with extensive experience in multisite implementations Support for local, centralized or mixed deployments over multiple sites with high localization capabilities Huge installed base of industrial automation customers Deep knowledge of automation technology Significant lower licensing cost Can be seamlessly integrated with SAP ERP Ability to meet the needs of Dätwylers divisions Full fledged MES solution can be developed to manage production Meet reporting needs Meets reporting needs of Dätwyler through one common system Cons High licensing costs Highest licensing costs Lower level of interfacing advantage with L2 & L4 systems compares to Wonderware Archestra Lack of configurable, out of the box functionalities focusing on MES Being a development platform may have a higher cost associated with services, lead time for implementation & subsequent support 10

Expected Benefits of SAP MII Enhanced customer satisfaction Singe & reliable source of data on customer orders Improved customer order traceability across shop-floor Enhanced capability to handle and resolve customer complaints Reduces dependency on SAP & local MES MES decouples shop floor from SAP and hence impact of SAP outages reduces significantly Reduces the effort required to restart the whole systems after every SAP outage Smoother plant operation and reduced inconveniences due to SAP outages Reduced manual effort / Enhanced employee engagement Improved metrics & KPI monitoring Reduced paper based data acquisition Faster, easier data acquisition and analysis to leading to effective root cause analysis (eliminate waste, scrap & downtime) Reduction in manual data entry effort More user friendly User Interface (UI) Reliable and faster OEE calculation with wide range of real time data availability (only for linked equipment) Improved productivity analysis to identify root cause of failures, to reduce breakdowns and enhance quality SAP simplification SAP customizations will be minimized making future maintaining of SAP less costly SAP upgrade cost will be lower 11

13 The electric light did not come from the continuous improvement of candles. Oren Harari

Facts for the IT community Current landscape compliant with ISA 95 Low dependencies on single system ERP SAP (global) Switzerland MES ISA-95 Manufacturing Control Local MII server USA India Belgium Italy Global supplier + internal team Newest standards More independency as well as global supply Supported HW Windows 2012 Servers / SQL 2008 14

Additional facts used to sell the project Transformation to a digital factory Faster performance by moving to zero paper-based on barcode scans & non-productive time reduction Higher efficiency due to less entry errors, strong central ERP & better growth management More homogeneity will improve manageability of heterogeneous manufacturing system environment Embedded analytics will support daily & local operations with real time analytics and KPIs Better traceability by automated batch san from the shop floor back to the ERP system Better distant asset control by removing obsolesce systems, especially in case of acquisitions 15

Motivation of our choice for the implementation partner Movilitas was recommended by SAP in different countries Many successful projects (since 2004) with SAP Manufacturing platform SAP-certified SAP MII Rapid Deployment Solution (RDS) based on ISA95 standards (best practice), accelerating the deployment up to 40% because the data model comes out-of-the-box Largest specialist player in this space in Europe (> 40 MII consultants) Global presence to support deployments (Belgium, France, Germany, USA) Reference visits/calls with satisfied customers/reference 17

Prototype for Alken as a start Replacement of SAP PI sheets Communication with Scada system Mobility for line clearance Recipe management 19

Roadmap & first achievements 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Belgium Roadmap USA 1 USA 2 India Italy China Belgium India China Processes accomplished Processes started Processes accomplished First achievements Weighing Mixing Color Service Washing Weighing Mixing Omniflex Weighing Mixing Carousel Extrusion Processes started Moulding Trimming Moulding Trimming Inner packing Steam sterilization Vision Omniflex 20

Lessons learned Project management Scope definition Availability of key people within the organization Dependency on other suppliers Interaction between external parties Technical integration Setup of MII landscape Setup of mobile devices Connections using to Archestra using Kepware Connections to scales from Metler Toledo 21

China Case: Integration with 586 presses 3.500 PO s per day 25.000 labels printed per day 10.000 IDocs per day 28.000 RFC calls per day (MII-SAP) 5.000 picking movements in warehouse 22

Alken Case: Washing and Mixing 23

Team spirit and cooperation with Movilitas Strategic partnership with Movilitas Full transparency, flexibility and cooperation Movilitas = extension of our own team Support with recruitment and training for internal MII team 24

I am happy to answer your questions! 25