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2013 Linx/AS LLC | www.linxas.com
SAP Recipe Development
Best Practices for the Chemicals Industry
STRATEGY IMPLEMENTATION ACCELERATION
Nico Bonthuys, Director, PLM Global Services Linx/AS
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2013 Linx/AS LLC | www.linxas.com
Introduction
SAP Recipe Development Overview
Developing a Strategy for Chemicals
Integration to SAP EHSM
Integration to Manufacturing
Implementation Recommendations
Close & Questions
AGENDA
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What We Do
Our success lies in fully understanding the
people and processes that drive your
business. Only then can we apply our in-
depth technical knowledge to design and
deliver the right solution.
From streamlining product development to
improving corporate sustainability to giving
your users access to SAP when, where, and
how they want itwe make SAP run like
youve never seen.
SAP Consulting for Product Lifecycle
Management (PLM)
SAP Consulting for Environment, Health &
Safety Management (EHSM)
SAP User Experience (UEx) Consulting
Software Innovations
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Over 15 years working with customers to develop PLM strategies and implement PLM solutions.
96-2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
SAP EH&S
RECIPE DEVELOPMENT RECIPE MANAGEMENT INTEGRATION OF FORMULATION SYSTEMS
SPECIFICATION MANAGEMENT EXPANDED USE OF EHS SPECIFICATION DATABASE
SAP PLM Process Industry Expertise
Zausner
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SAP Recipe Development Overview
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Recipe Development Overview
Product and Process structure definition for formulations
Equipment Requirements
Process Parameters
Integrated Specification (Substance) development and management
Fully integrated component of SAP ECC
Full change management including sophisticated alternate and version management
Multi-level formulation management
Formulation Capabilities include:
Formula Optimization
Formula aggregation, modeling, and comparison
Product Labeling**
Compliance verification
Property calculations
Key Capabilities
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Recipe Development Overview
Recipe General Data
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Recipe Development Overview
Recipe Formula View
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Recipe Development Overview
Recipe Alternate Formula Views
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Recipe Development Overview
Recipe Process Structure
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Recipe Development Overview
Recipe Equipment Requirements
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Recipe Development Overview
Recipe Process Parameters
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Recipe Development Overview
Recipe Calculations: Ingredients
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Recipe Development Overview
Recipe Calculations: Composition
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Recipe Development Overview
Recipe Calculations: Costs
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Recipe Development Overview
Recipe Calculations: Costs
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Provides a Single Source of Product Data that Drives the Downstream Processes
Documents
Packaging
Recipes
Product
Changes
Specifications
Portfolio &
Projects
SAP PLM
Single Source of
Product Data
Materials/BOMs
Achieving a Single Version of the Truth
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Developing a Strategy for Chemicals
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2013 Linx/AS LLC | www.linxas.com 19
Developing a PLM Strategy
How does SAP Recipe Development fit into your overall PLM strategy or program.
Identify your PLM requirements from innovation through development & commercialization.
Identify and prioritize the PLM pain points, gain opportunities and concept requirements.
Evaluate your IT landscape as-is and projected for the foreseeable future.
Evaluate the benefits of a unified solution over best of breed point solutions
Establish a strategic project roadmap that balances immediate needs with long-term PLM vision.
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2013 Linx/AS LLC | www.linxas.com
How does SAP Recipe Development integrate with EHSM to enable a design for compliance strategy?
Sustainable Innovation Operational Excellence
How does R&D hand over recipes to manufacturing?
Sustainable Innovation Responsive Manufacturing
Critical Integration Points
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Challenges across the Product Lifecycle
ISSUE NUMBER 1 Disconnected Business Processes and Data
ISSUE NUMBER 2 Missing single source of truth
ISSUE NUMBER 3 Insufficient Sustainability Approach
Recyclin
g
Ram
p-U
p to
Pro
duction
Com
ponent
& T
ask
Sourc
ing
Product
Design
P
ort
folio
Managem
ent Project Mgmt
Manufa
ctu
ring
Main
tenance &
Serv
ice
Innovation
Managem
ent
Product
Reports
Authoring
Tools
Head of
Procurement
Head of R&D Head of
Manufacturing
Head of
Marketing
Market
Reports
Authoring
Tools Authoring
Tools Authoring
Tools
Procurement
Reports
Manufacturing
Reports Service
Reports
Com
plia
nce
Check
Com
plia
nce
Check
Head of
Service
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Integration to EHSM
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Common Compliances Issues Encountered in Product Development
IMPACT
Wasted effort and time dealing with data
accuracy issues.
Inefficient processes drive delays in
compliance approval, which pose a
competitive disadvantage with regard to
cost & speed to market.
Undue exposure to regulatory &
compliance risks through lack of data
consistency, data unification & process
automation.
Significant effort required to address
changes to products due to reformulation
and regulatory requirements
ISSUES
A significant amount of product data
(formulas, finished product & raw
materials) in multiple systems.
No integration to SAP /ERP systems -
from development through
commercialization.
Processes in place not efficient,
resulting in manual entry & re-entry,
data redundancy, and prone to error.
Where interfaces are created to avoid
data entry errors, potential points of
failure still exist.
High volume of new and changed
formulations drive high workload for
Product Stewardship
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Re-enter data or
interface
EH&S Systems
SAP
R&D Systems
Islands of R&D, ERP, and Compliance
Re-enter data or
interface
Re-enter data or
interface
This common scenario in chemicals industries creates areas of
risk to data integrity and operational inefficiency.
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2013 Linx/AS LLC | www.linxas.com
Comprehensive Product Development & Innovation Approach
Continuous Product and Service Innovation: The entire organization needs to ensure a continuous stream of profitable innovation
Head of
Procurement
Head of
Engineering/R&D
Head of
Manufacturing
Head of
Marketing
Head of
Service
Recyclin
g
Ramp-Up to
Production
Embedded Product Compliance
Component &
Task Sourcing
Product
Design
P
ort
folio
Managem
ent Project Management
Manufa
ctu
ring
Main
tenance
& S
erv
ice
Innovation
Managem
ent
Product Visualization and Collaboration
Product Intelligence
Authoring Tools
Integrated Product Development: Connecting R&D with the Business
1
2 3
Embedded Product Compliance: Being sustainable starts with simply being compliant with existing regulations
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SAP RD
SAP EH&S
SAP ERP
Unified Solution of Integrated SAP Modules
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Recipe Transfer to Product Stewardship
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SAP ERP-EHS Integrated Business Process Flow
Maintain Product Safety Data
Label Packages and Distribute MSDS
Generate MSDS/ Labels, Documents
Process Customer Order Author Documents
Product Safety Mgr.
Product Safety
Mgr.
Customer Service Fulfillment Fulfillment
SAP
EHSM
Out-of-the-box
Integration
SAP ERP
Author Documents Generate MSDS
/Labels Automatically
Automatic MSDS
Shipment
Maintain Material
Master Data
Repository
Customer Order
Processed
Maintain Product &
Substance Data
Repository
Ship Product to
Customer
Material Master
Integration
Integration with RD
Sales Order
Processing
Automatic Label
Printing
Inventory
Management
Sales and
Distribution
Compliant
MSDS
Compliant
Label
Product Safety (MSDS and Labels)
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SAP ERPEHS Integrated Business Process Flow
Maintain Product
Compliance Data Track the Volume Purchase Material
Update Registration
Quantity Purchase Material
Compliance Expert Purchaser Compliance Expert Purchaser System
SAP
EHSM
Out-of-the-box
Integration
SAP ERP
Check the Volume Track the Volume Update the
Registration Quantity Check the Volume
Assign to material
master
Create Purchase
order
Block Purchase
Order
Maintain Product &
Substance Data
Repository
Purchase material
Material Master
Integration
Purchase Order
Processing
Purchase Order
Processing
Substance Volume Tracking in Purchasing
Integration with RD
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Material A Material A
Component 01
Substance A
SVT Composition
Production Order
Material A | 10 kg
Production Materials are the relevant objects throughout
the Supply Chain, i.e. are sold, purchased, manufactured
Substances are relevant for
REACH and need to be tracked!
Goods Receipt
Material A | 10 kg
Goods Movement
Purchase Order
Client 4711
10 | Material A | 10 kg
20 | Material B | 12 kg
30 | Material C | 15 kg
Purchase - Import
Material A
Component 02
Chemical Compliance Integration
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2013 Linx/AS LLC | www.linxas.com
Significantly greater flexibility with addressing changing regulatory compliance requirements
Reduction of compliance risk
Opportunity to automate checks and processes focuses EHS staff on more value-added tasks
Single version of truth from R&D to Product Stewardship to Manufacturing
Scalability to expand to other regions of the world
Business Benefits
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2013 Linx/AS LLC | www.linxas.com
Integration to Manufacturing
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Typical R&D-to-Manufacturing Scenario
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Product Structure Synchronization (RD to ERP)
Product Structure Synchronization
for Handover to Manufacturing
Features of PSS:
Introduction of Mfg data (plant)
Controlled release process
Reconciliation of differences
Update of Mfg BOM
Synchronize
Formula mBOM Recipe BOM (plant)
R&D
R&D Structures
RM Recipe & Formulas
2 3 1
Process Manufacturing
Process Order
Requires:
Output Matl
Recipe keys:
Version
Effectivity
Usage
PP-PI*
Recipe
BOM
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2013 Linx/AS LLC | www.linxas.com
RD Recipes for chemical manufacturers often contain more process detail that are required in PP-PI Master Recipes
Requirement frequently raised for RD Recipe transformation to MES (DCS and/or PLC)
Standard Integration/Interface from RD does not exist
Industry standards and ISA-88 and ISA-95
ISA-88 for Batch Processing
ISA-95 for Continious Processing
Integration Methods and Standards depends on MES and Client specific chemical processes
Integration to Manufacturing (RD to MES)
Why this scenario doesnt always work for chemicals?
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Integration to Manufacturing/MES
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Integration to Manufacturing ERP/MES
XML/OXML/B2MML and other formats
ISA-88 - Batch Processing
ISA-95 - Continuous Processing
PI-PCS PSS
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Implementation Recommendations
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2013 Linx/AS LLC | www.linxas.com
Establish a blueprint prototype based on industry standard processes.
SAP PLM RDS for Process Industries will provide a baseline development system.
Limited process scenario.
Can augment RDS with partner extensions to better support to-be scenario e.g.:
Linx/AS process accelerators include support for over 30 processes/sub-processes
Linx/AS functional accelerators include solutions to overcome many industry-specific requirements, such as specification workflow solution for collaborative design and approvals, data collaboration (collection), etc.
Alternative is a hosted prototype.
Either way, involve business users from the beginning.
Process/Functional Design
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2013 Linx/AS LLC | www.linxas.com
Think Like a Product Developer
SAP Recipe Management/Development originally developed as solution for food Industry
Need to configure/design experience for chemical industry product developer
Formula Views
Calculations
Compliance Checks
Reduce clutter and leverage custom layouts
Again, get the business involved from the beginning.
User Experience
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2013 Linx/AS LLC | www.linxas.com
Formula View - Adjust for Chemical specific use
User Experience
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2013 Linx/AS LLC | www.linxas.com
Recipe/Calculations - Adjust for Chemical specific use
User Experience
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2013 Linx/AS LLC | www.linxas.com
Close & Questions
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2013 Linx/AS LLC | www.linxas.com
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www.linxas.com
Nico Bonthuys Director, PLM Global Services Linx/AS [email protected]