In Pursuit of the Perfect PlantSAP Live and Local Webcast Tour 08

27 March, 2008

Globally Distributed Manufacturing Is the New NormMANUFACTURINGPLANTMANUFACTURINGPLANTMANUFACTURINGPLANTNEW CUSTOMERCUSTOMERSPOT MARKETCUSTOMERPlant ManagerProduct Variability - Inconsistent quality: by plant, by product, by shift Difficulty meeting tighter customer specifications Cant match quality to ordersNo visibility Cant see plant wide production status due to 10 - 200 disparate shop floor info systemsVarying process conditions lead to Higher energy use Lack of predictability Cant see business performance to plan, and recommend new plans to affect resultsCapacity erosion high offgrade produced and wide quality swingsMissed ordersOrdersreturnedOrderschangedInflexible production process contributes to Missed Opportunity Hidden capacity obscured by inefficient grade transitions & conservative operation

The 3 Pillars that must be aligned to enable the Perfect PlantReduced Raw Material CostsImproved QualityPerfect Plant Components and InfluencersThe Perfect PlantManufacturing Execution is monitored and nearly event free due to proactive monitoring and automated event handling that is tightly coupled with EAM and the enterprise Operational Scheduling / Planning Adjustments are not driven primarily by unplanned events in manufacturing but rather by demand shifts and other factors. Manufacturing is able to mange these changes more rapidly and reliably.Increased Profit MarginsAsset Performance and Utilization are monitored and events are triggered automatically. EAM processes are optimized and all asset content is available in a single source. EAM process are tightly linked to Manufacturing ProcessesImproved ComplianceWhat can really be controlled within the plant?DemandSupplyAsset PerformanceOperationalPlanningManufacturing Execution

Perfect Plant Ecosystem

Enabling Adaptive Manufacturing through SAP MIISAP MII enables adaptive manufacturing by synchronizing manufacturing operations with the enterprise to deliver a single version of the truth and drive manufacturing excellence.

SAP Manufacturing Integration and Intelligence (MII)MES Manufacturing Execution Systems, EMI Enterprise Manufacturing Intelligence, BW Business Warehouse (from SAP)SFAC Shop Floor Automation & Control,

SAP MII synchronizes manufacturing operations with the enterprise, in heterogeneous IT landscapes

MII Dashboards Plant Performance Dashboard

SAP MII Manufacturing Analytics

SAP MII Manufacturing Analytics

Value from SAP MII: Partial Listing of Customer Success$14 million in annual savings due to quality cost savings and process improvements from extending QMImproved Overall Equipment Effectiveness (OEE) from 65% to 80%; implemented in 120 daysSavings of $10 million in first year due to improved supply chain processes and visibility; implemented in 120 days

Deployed SAP xMII in over 30 plants globally for process improvement; 20 X ROI in the first two years

How SAP MII helps you address current manufacturing challengesPerformanceImprove manufacturing processes and customer satisfaction - leverage new revenue opportunitiesMinimize inventory, rework, overtime, and expediting costs consistently meet budgets Improve employee productivity, morale and quality of work life ResponsivenessVisibilityNear-time visibility into customer orders across multiple plants from scheduling to dispatching Proactively detect machine, material, labor, and quality issues before customers doEvaluate real-time KPIs* and actual production costs and variances against targetsRespond rapidly and cost-effectively to manufacturing exceptions Monitor, measure, analyze and control cost and target variancesBalance manufacturing priorities against changing demand conditions-align with business objectives*KPI Key Performance Indicator

Questions?

Our offer to youAberdeen Whitepaper: The Business Value of Plant Floor Visibility

SAP Whitepaper: In Pursuit of the Perfect Plant

Thank you