SAP Manufacturing Execution (SAP ME) Integrated and Real Time Production Execution. Eric Thieren Solution Sales Focused Business Solutions EMEA

SAP Manufacturing Execution (SAP ME) Integrated and Real Time Production Execution Eric Thieren Solution Sales Focused Business Solutions EMEA

What typically does an MES do? Sensor sends carrier or product ID Product in Station Correct station confirmed (over check) Control data sent to resources Operator Guidance / Certificate Validation Traceability and serialisation Material Consumption and Inventory Data collection and SPC Resource Status Defects, test & repair, scrap Performance Visibility 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 2

Connectors SAP Digital Manufacturing Architecture The Digital Plant in the Extended Supply Chain Business & Products Network DESIGN PLAN RESPOND 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 MES (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 to PLC control parameters (recipe) PLC (Machine)» Sensor detects material carrier» Requests control parameters from ME» Machine reports completion and requests next operation 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 3

SAP on the Shop Floor Today SAP MII only scenarios SAP MII & ME scenarios Enterprise SAP MII Shop Floor SAP ME SAP MII AS Java AS Java SAP PCo SAP PCo DCS PLC MES Plant DB Plant Data Collection Plant Historian DCS PLC MES Plant Data Plant Plant DB Collection Historian Worker UI Machine Entry ME POD Machine Entry Range of use» Integration and Intelligence» Real time dashboards» Reporting & Analytics» Data entry and collection Target Industries» Energy & Natural Resources» Process Industries» Consumer Industries» Discrete Industries Range of use» Manufacturing Execution System (in addition to SAP MII use cases) Target Industries» Discrete Industries, in specific cases for Process Industries 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 4

SAP Manufacturing Execution Benefits Detailed modeling of production processes, and dynamic control of WIP execution Real-time production information Product and process quality improvement: Deliver quality products on time. Reduce production cycle time and cost. Minimize repair costs associated to quality. Reduce inventory levels. Access and track manufacturing data in real-time. Reduce the number of existing shop floor systems (islands of information). Comply with legal and customer specific requirements. ERP 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 5

Manufacturing Functionalities SAP Manufacturing Execution (ME) SAP Manufacturing Execution»Manages and controls manufacturing and shop floor operations»integrates business systems to the shop floor»complete component and process traceability across global operations 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 6

SAP Manufacturing Execution and its Interoperability Production Planning Inventory Management Quality Management Plant Maintenance Human Resource Engineering Change Management PLAN Production order, BOM, variants, route, serial numbers, operations, work center, resources, standard / planned times, tools, work instructions, etc. Material classification, inventory ID, reservations, batch, stock, storage locations, goods receipt, etc. Inspection lots, characteristics / attributes, No conformance, etc. Equipment, tools, scheduled downtimes, Employee personal data, certificates, etc. ebom mbom, material, components, route changes, versions, etc. 60004750 EXECUTE Shop Order Release Assembly Inspection Test & Repair Packing Yield confirmation, scrap confirmation, rework confirmation, goods movements, material consumption, labor, quality inspection results, no-conformance, data collection, equipment usage, tool usage, etc. 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 8

SAP Manufacturing Execution and its Interoperability Production Planning Inventory Management Quality Management Plant Maintenance Human Resource Engineering Change Management PLAN Production order, BOM, variants, route, serial numbers, operations, work center, resources, equipment, tools, work instructions, etc. Material classification, inventory ID, reservations, batch, stock, storage locations, goods receipt, etc. Inspection lots, characteristics / attributes, No conformance, etc. Equipment, tools, scheduled downtimes, Employee personal data, certificates, etc. ebom mbom, material, components, route changes, etc. EXECUTE Shop Order Release Assembly Inspection Test & Repair Packing Yield confirmation, scrap confirmation, rework confirmation, goods movements, material consumption, labor, quality inspection results, no-conformance, data collection, equipment usage, tool usage, etc. AUTOMATION DCS / PLC via OPC LIMS/ Inspection / Equipment Testing Plant DB Environmental Building Management Wireless Integration SCADA / HMI Plant Historian Sensors Automatic data collection, set-point configuration, machine configuration, etc. 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 9

Digital Manufacturing Linking the physical world to the digital world Business World Digital World Physical World General Ledger Procure to Pay Order to Cash Engineer to Order Configure to Order Make to Stock Inventory Controls Costing CRM SRM Materials $ Digital Twin As Designed As Built As Maintained Performance Vending Machine Sensors Robots DCS/PLC Weigh Scales CNCs Auto LIMS/Inspection/ Equipment Testing Engine Chemicals CPG Batteries Pumps AGVs Motors Drinks 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 10

Industry 4.0 Digitization has big pay back Performance Cost -7% Net Margin + 19% Dividend +25% Share Repurchase >2.5MM Demand +40% From 21 day schedule to 6 hour 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 11

SAP MES Plan / Sequence Production Order APO ERP ME Communication AGV- and line control Automation Equipment with Inst ructions Real Time Tracking, Backflush and Reporting 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 15

Future Factory - Today Integration to Shop Floor Speeds Production with Traceability Three Machining Lines, One Engine Assembly Line 37 Second Takt time per Engine 5 Plant Connectivity / Kepware OPC Server platforms / 20,000 Tags 6000+ Transactions / Minute at full rate 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 16

Airbus AOS-MES Project Rate 63-45 to 60 planes per month