digital manufacturing &...

Digital Manufacturing & Operations

Mohammad Kawasmi

Trends and Challenges in Manufacturing

Operations

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

Productivity improvementse.g. lower maintenance costs

(up to 60%), or lower capital

appropriations (25%)

Business Value Benchmarks

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

Source: IDC White Paper, sponsored by SAP, The Future Services Sector:

Continuous Delivery for Competitive Advantage, 2017

45© 20187 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL

Internet of Things as a Key Driver of Digital Transformation

Business Megatrends

Consumerization

Product personalization

Consumer experience

Sharing economy

Fast demand cycles

Digitization

Real-time visibility

Data-driven business models

Everything-as-a-service

Circular economy

Networks

Distributed manufacturing

Logistic & Manufacturing networks

Agile supplier networks

Smart Contracts

Technology Trends

Cloud scalability,

elasticity, availability

Machine learning,

Artificial intelligence

Ubiquitous connectivity,

Edge computing

In-Memory computing,

Big Data

Mobile &

conversational

Blockchain &

smart agents

Sensors built in /

intelligent things

Autonomous systems

& robotics


Global Manufacturing TrendsTransformation of business models and processes

Manufacturing Insights

3D Visualizations

Yesterday

Mass Production

Outsourced manufacturing

Offshoring

Fixed production lines

Standard products

Manual processes

Hierarchical decision process

Plant Based siloed information

Deterministic models

Paper based work instructions

Capital Intensive Manufacturing models

Analog products

Today

Mass customization

Distributed manufacturing networks

Nearshoring

Cyber physical systems

Individualized products

Fully automated processes

Decentralized flexible decision process

Global transparency

Predictive models

Smart 3D work instructions

Service based manufacturing models

Smart Products



More Challenges to Manufacturing Today…

Modular Assembly

» Assembly Line replaced by

Cellular Manufacturing

» New organizational

structures require ad-hoc

decisions

» Increasing Interoperability

AI / Machine Learning

» Insight to Automation

(immediate action)

» Pattern Recognition

» Autonomous Systems, Edge

Processing

Cyber-Security

» Increasing Interoperability =

Increasing Vulnerability

» Manage Complexity

Source: http://blog.audi.de/2016/11/23/modulare-montage-statt-fliessband

AI : Artificial Intelligence

http://blog.audi.de/2016/11/23/modulare-montage-statt-fliessband


Industry 4.0 – The Fourth Industrial Revolution

• Interoperability

• Information Transparency

• Technical Assistance

• Decentralization of Decisions

Design Principles

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".

What is Industry 4.0 AboutExamples of Industry 4.0 requirements


Smart Factory Operations


Factory Operational Analytics

Industry 4.0 requirements have different purposes

Digital Supply Chain Overview & Strategy

The Intelligent Digital Supply Chain of One, Powered by SAP Leonardo

Digital

ProductDigital

Assets

Digital

Logistics

Digital

Business

Planning

Digital

Manufacturing

Internet of Things

Big Data

Blockchain

Analytics

Machine Learning

Plan and Deliver to the

Customer Segment of

ONE

Design and Maintain the Product of ONE

Manufacture the Lot Size of ONE

Analyze and Manage the

Supply Chain of ONE

Powered by Leonardo

SAP Cloud Platform

Multi-Cloud Infrastructure

Microservices Open APIs Flexile Runtimes Integration

SAP Data Center Google Cloud Platform Mircrosoft Azure Amazon

Digital Twins

Network of


SAP S/4HANA MARKETING AND

COMMERCE

SAP S/4HANA HUMAN RESOURCES SAP S/4HANA MANUFACTURING SAP S/4HANA SUPPLY CHAIN

SAP S/4HANA SALES

SAP S/4HANA FINANCE

SAP S/4HANA SERVICE

SAP S/4HANA SOURCING &

PROCUREMENT

SAP S/4HANA ASSET MANAGEMENT

Digital Core S/4HANA EnterpriseManagement

SAP S/4HANA RESEARCH &

DEVELOPMENT

Products

Suite

Products

Suite

Cloud for

Service

Cloud for Marketing

INDUSTRIESCloud for

Sales

SAP S/4HANA SuiteIntroducing the next generation core and lines of business solutions for the digital economy

Streamlined

Procure to Pay

Accelerated Plan

to Product

Optimized

Order to Cash

Enhanced

Request to

Service

HR

ConnectivityCore Finance


SAP Leonardo Innovation Portfolio


SAP Digital Manufacturing & Operations

Strategy / Portfolio Overview

Trends Impacting Digital ManufacturingInternet of Things and Industry 4.0

SAP Digital Manufacturing runs industrial IoT with Industry 4.0 scenarios

Internet of Things

Internal INDUSTRIALscenario External scenario

SCADA / HMI

Machine Layer

MES

ERP (PLM, PP) » All industries

» All thingsand

devices

» Ubiquitous

» Personalized

SMART Industrial

THINGS & DEVICES

Industrie 4.0

» Manufacturing

industries

» OT-IT convergence

» Systems, things,

and devices on the

shop floor


How to accelerate and grow productivity and profitability in complex business

environment? How to run business and production seamlessly integrated?

▪ SIMPLIFY

▪ HARMONIZE

▪ REDUCE

Need for SMART SIMPLIFICATION

(1) Top Floor to Shop Floor

(2) Customer to Operations

Accelerate the Enterprise SuccessHigher Productivity due to Simplification

SAP Digital

Manufacturing

SAP PCo to

Automation

SAP ERP

SAP IBP

Consumer/customer Business Networks


+++ CONTINUOUS INNOVATION +++

SAP Manufacturing Execution SuiteInnovation strategy

Includes SAP Manufacturing Execution,

SAP Manufacturing Intelligence and

Integration, and SAP Plant Connectivity

SAP Distributed

Manufacturing

(Cloud)

SAP Digital

Manufacturing Insights (Cloud)

SAP S/HANA

(on premise)

Manufacturing Engineering **

Manufacturing Planning

Side-by-side with

S/4HANA innovations

Rapid innovation through

side-by-side extensions

in the cloud

SAP MANUFACTURING

EXECUTION SUITE(On-premise)

SAP MII SAP ME SAP PCo

SAP MANUFACTURING

EXECUTION SUITE(On-premise)


SAP MII SAP ME SAP PCo

SAP Digital Manufacturing Industrial IoT

» Multiple vendors

» Multiple machines

Connected Manufacturing

SAP ME SAP QIM

SAP MII SAPCAMS

SAP PCo SAP OEE

Digital Manufacturing

SAP ME

SAP MII

SAP PCo

Asset Intelligence

Network

Distributed Manufacturing

Network

OEM Cloud

(Mindsphere)

S/4 HANA

Enterprise Management

» Business Context

» OEE, Energy Management


Insights


Machine

Layer

MES

ERP (PLM, PP)

SCADA / HMI

SAP Digital Manufacturing Solutions and Factory AutomationAutomation Pyramid in conjunction with IoT Cloud approach

IO-LINK

GREEN FIELD BROWN FIELD

SAP Manufacturing

Execution Suite

SAP ERP

SAP Cloud

Platform

Asset

Intelligence

Network

SM

AR

T

BR

IDG

E

SAP Leonardo

EdgeDevice

Operator

Supplier

Manufacturer

DIGITAL

TWIN

Partner

Applications

SAP PCo

DATA

DATA

GATEWAY


Insights


SAP Digital Manufacturing ArchitectureThe Digital Plant in the Extended Supply Chain

DESIGN PLAN RESPOND PRODUCE DELIVER OPERATE

ERP

MES(ME & MII)

PCo

PLC(Machine)

MONITOR

» Sensor detects material carrier

» Requests control parameters from ME

» Production plan

» Bill of materials (BoM)

» variant management

» production steps

» Production details management

» Detailed and flexible

» production step routing

» Shop floor controls for eachstep

» Mapping of ME production details

to PLC control parameters (recipe)

» Serial Numbers

» Quality results per lot

» Order confirmation

» Inventory update, Equipment usage

» Log parametric data

» tolerance checks

» Return „conformance“ or „non-conformance“ decisions

» Mapping of ME production details toPLC control

parameters (recipe)

» Machine reports completion and requests nextoperation

Connecto

rs


SAP Digital Manufacturing SolutionsThe foundation for Industry 4.0 in the Cloud and On-premise

Digital

Manufacturing

Execution

Production

Engineering &

Operations

Digital Manufacturing Suite S/4 HANA

(*New Cloud) (Cloud)(Cloud) (On Premise)

Manufacturing

Integration &

Intelligence

Manufacturing

Planning &

Scheduling

Digital

Manufacturing

Insights

Predictive

Quality

Distributed

Manufacturing

Environmental

Health &

Safety

(On Premise)


SAP Digital Manufacturing Cloud SolutionsThe foundation for Industry 4.0 in the Cloud and On-premise

2018 Digital Manufacturing Cloud

(Q3 2017)

Digital

Manufacturing

Insights

(Q2 2018)

Predictive

Quality

(Q2 2017)

Distributed

Manufacturing

Connected

Worker

Safety

(Q2 2018)


Use Case: Digital Twin

Ideas

Geometries

Stress Simulation

Cost

Designs

The Physical World

ENGINEERING

The Digital World

ASDESIGNED ASMAINTAINED

Performance

Issues

Stability

Closed Loop Engineering

Cost

OPERATION

?

. ..

DECOMMISSION

Production data

Quality Fingerprint

. ..

PRODUCTION

ASBUILT

Ramp Up

. ..

SHIP

ASDELIVERED


SAP S/4HANA: Manufacturing Engineering & Operationsis 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.

.

▪ Bridge the gap between product designand

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

Key Capabilities Product

Engineering

Manufacturing

engineering

Manufacturing

Plant


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


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.

▪ 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)

Key Capabilities

SAP Manufacturing Integration &

IntelligenceSAP Manufacturing Execution

Devices and EquipmentShop Floor

DCS

&

SCADA

PLC

SAP Plant Connectivity

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

Devices

&

Sensors

LIMS …

SAP ERP or S/4HANA


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.

▪ 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 enterpriseERP

▪ Intelligence: Visualize data using plant information

hierarchy from “corporate” ERP and design own

dashboards

▪ Orchestration via business logic to enable

customer-specific processes for planning,

execution, maintenance and quality

▪ Plant Performance Management with out-of-the-

box content on OEE management. Capabilities to

build and visualize customer specific KPIs withKPI

framework

Key Capabilities

KPI & Alert

Management

Composition &

Visualization

Energy

Monitoring

Overall

Equipment

Effectiveness

Out-of-the-box

Integration

SAP MII

SAP ERP or S/4HANATop Floor

Business

Intelligence

Process

Orchestration

SAP Plant Connectivity

Integration

Devices and EquipmentShop Floor

DCS

&

SCADA

PLC

Plant DB

&

Historians

Devices

&

Sensors

LIMS …


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.

▪ Industry 4.0 enabled shop floor executionsolution

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 personalizeddashboards

for operators with browser-based UI

▪ Easy integration “out of the box” to SAP ERPand

via SAP Plant Connectivity to the shop floor

Key Capabilities Industry 4.0 A thing is born Multi-plant


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.

▪ Analyze manufacturing performance within and

across manufacturing plants of an enterprise

▪ Data acquisition from multiple disparate

manufacturing application and harmonizationof

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

Key Capabilities Global Analytics Multi-plant


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.

▪ Collaboration between customers and service

providers on design optimization, quality and pricing

▪ Technical and economical part assessmentby

customers

▪ Integration with S/4HANA Cloud for sourcingand

procurement

▪ Service offering advertisement by service providers

▪ Extensibility to enable scenarios specific to

domains, customers or service providers.

Key Capabilities Customer SAP Distributed

Manufacturing

Service Bureaus

SAP Distributed Manufacturing

Back 30© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL

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

▪ 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

Key Capabilities Predictive Quality

Improvements

Deep Dive

* Planned Innovation

SAP Predictive Quality*

Back 31© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL

SAP EHS Solution Portfolio

Incident

Management

Safety

Observations

EHS Incident Management

EHS Health and Safety

EHS Environment Management

Management of Change

Maintenance Safety

Operational Risk

Assessment

Occupational

HealthIndustrial Hygiene

and Sampling

Chemical

ManagementChemical Approval

Emissions

Management

Regulatory and

Permit Compliance

Management of

Change

Permit to WorkWork

Clearance/LOTO

EHS Audit

Management

Rea

l Tim

e E

HS

Rep

ortin

g a

nd

An

aly

tics

Actio

n T

rac

kin

g a

nd

Ta

sk

Ma

nag

em

en

t


SAP Connected Worker Safety – Solution Approach

Ensure Worker

SafetyBusiness Goal

Business Need

Functionality

Demonstrate

complianceat

all times

Improve work

efficiency and

loweroperating

costs

Better Decision

making

Monitorworkers

for real time

awareness


Monitor conditions

against regulatory

and other boundaries

Ability to link the

informationflowing

from the worker to

enterprise data for

better insightProactively Manage

Worker Fatigue and

other hazard inducers

React immediately to a hazardous situation or

incident

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

Wearable monitoring

NotificationsAnalytics

Environment / Exposure monitoring Device Management

IH Statistics

calculationsDevice Interfaces

Provide worker and

coworkers continuously

relevant information

based on a changing

work environment

SAP Digital Manufacturing Success Stories Examples

99.5%First pass yield

3%Manufacturing productivity

improvement

100%Track and Trace

10%Increase in productivity

75%Reduction in manual

execution & data capturing

7%Reduction manufacturing costs

19%Increase in net margin

21days to 6hoursCycle time

65% to 80%Increase in OEE

20%Reduction in production breakdown

6.5%Increase in final product quality

More than 2,000 customers running successful Industry 4.0 projects with SAP Digital Manufacturing

3%Decrease in scrap (materialwaste)

15%Faster production lead time

50%Fewer stock corrections


Value Proposition

78NAL© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTER

Key Opportunities Areas in Manufacturing

2. Energy

4. Mfg Planning

6. AssetAvailability and Efficiency

1. Raw Materials

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

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

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

Key Value Drivers

Improve Cost

Structure

8. Quality

ManageAsset

Performance

Drive Compliance 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

Key Strategic Goals

Key Areas ofOpportunity

7. Compliance

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

Increase Operations

Efficiency

3. MaintenanceMaterials & 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

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

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

Contact information:

Mohammad Kawasmi

Digital Supply Chain Executive

[email protected]

Thank you.

mailto:[email protected]

digital manufacturing &...

Documents