SAP Quality Management: Overview and Plant Floor Integration Using SAP xmii. Dr. Manfred Schulz Solution Manager ASM Manufacturing SAP AG
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1 SAP Quality Management: Overview and Plant Floor Integration Using SAP xmii Dr. Manfred Schulz Solution Manager ASM Manufacturing SAP AG
2 SAP Quality Management: Overview and Plant Floor Integration Using SAP xmii Overview on SAP Quality Management Plant Floor Integration: xmii and SAP QM Customer Success Stories Outlook
3 mysap ERP Quality Management: What It Is Quality Management Staying Ahead of the Competition with Quality Audit Management Assessments Supplier, Product, Process, System and Environmental Audits Quality Engineering Specifications and Sampling Plans Document Management Stability Studies/Shelf Life Studies Advanced Product Quality Planning Quality Control and Assurance Sample and Batch Management Quality Inspections Statistical Process Control (SPC) Integrated Problem Management Certificate of Analyses (CoA) Gauge Calibration and Control Quality Improvement Corrective and Preventive Action (CAPA) Customer Complaint Management Quality Analytics Quality Manual SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.3
4 mysap ERP QM: Audit Management Key Functionality Audit planning (different audit types) Business partner management Audit scheduling and execution Audit valuation Corrective and Preventive Actions (CAPA) tracking Documentation of audit results Graphical evaluation of audit data Offline audit result capturing Key Benefits Standard compliance QS 9000; ISO 9000; ISO 19011; ISO14000, Consistent and transparent data company-wide; easy communication of quality information across company boundaries Easy appraisal of quality performance through detailed documentation and flexible reporting Benchmarking quality performance SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.4
5 mysap ERP QM: Quality Engineering Key Functionality Inspection Planning / Specifications / Advanced Product Quality Planning Sampling Procedures (ISO 2859, ISO 3951) Recipe and Trial Management Stability/Shelf Life Study Integrated Document Management Master Data and Change Management Supplier Management Key Benefits Consistent master data (free of redundancies: High product quality and compliance with standards Inspection planning integrated with purchasing and production Provides end users with direct access to relevant quality documentation Supports product development process SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.5
6 mysap ERP QM: Quality Control and Assurance Key Functionality Quality Inspections Goods receipt inspection In/post-process control Inspections at goods issue Events Goods movements Orders Deadline Monitoring Inspection Lot Quality Inspection stock Samples Skip lot Shop papers Inspection What are the inspection results? Decision Usage decision What happens with the product? Recurring inspections Test equipment Interfacing Supply Chain Usage Decision/Release Certificate of Analysis Statistical Process Control Problem Management Test Equipment Calibration Quality Information System Key Benefits Supports automatic or manual triggered inspections Integrated tightly with supply chain and beyond (e.g. inventory) Enables monitoring of critical product and process characteristics and allows instantaneous intervention Documents product quality to achieve regulatory compliance SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.6
7 mysap ERP QM: Quality Improvement Key Functionality Problem/Complaint Management Workflow Quality-related cost Follow-up functions Corrective And Preventive Actions (CAPA) Quality Analytics Predefined queries Early warning system Control charts Supplier evaluation Results history Procurement Production Sales Service Complaint against vendor Problem Notification Defect Damage Internal problem message Customer complaint Key Benefits Comprehensive problem handling for all types of complaints within mysap ERP Efficient processing of quality issues using workflows Higher quality performance, while lowering cost-of-quality delivery Documentation and audit trails enable rapid root-cause analysis to minimize cost of compliance and recalls SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.7
8 GMP/GLP Compliance Support Digital Signature in QM Sample drawing Results recording Usage decision (release) Electronic Batch Record (EBR) Deviation Analysis Audit Trail Change Management Batch Traceability Tight integration between QM and batch classification Batch where-used-list Batch Information Cockpit SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.8
9 Integrated Enterprise Quality Management Workflow, authorization concept, QM manual Inventory management, batch management, change handling, CAPA, data warehouse, document management Quality-related costs, revenues Test equipment management, calibration planning and execution Human resources Logistics Finance and controlling Enterprise asset management Enterprise Quality Management within mysap ERP Research and development Procurement Production Sales Stability studies, flexible specifications, recipe management APQP Inspection planning, supplier release and COA, goods receipt inspection, sample management, audit management In-/post-process control, test equipment interfacing, deviation management, shop floor integration with xmii COA, quality data exchange, billing of analysis SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.9
10 SAP Quality Management: Overview and Plant Floor Integration Using SAP xmii Overview of SAP Quality Management Plant Floor Integration: xmii and SAP QM Customer Success Stories Outlook
11 Manufacturing Quality Metrics Are Most Important Source: AMR Research, 08/2006 SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.11
12 SAP Quality Management Is Part of SAP Manufacturing SAP Quality Management enables Shop Floor Managers and Operators to manage and assure product quality, monitor and improve quality standards and document quality compliance, for subsequent audit. Key Benefits: Higher product quality and customer satisfaction Superior, cost-effective quality compliance Exception based quality management Continuous quality improvement SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.12
13 Quality Control in Manufacturing Business Problem Business Business problem problem Manufacturing Manufacturing and and quality quality management management systems systemsare are often often separated. separated. Triggering Triggering preventive preventive actions actions through through statistical statistical process process control control and and trend trend analysis analysisas as well well as as tracking tracking of of material material defects defects is is difficult. difficult. SAP SAP offers offers a powerful powerful quality quality management management solution solutionas as integral integral part part of of mysap mysap ERP, ERP, however, however, the the user user interface interface to to record record in-process in-process quality quality data data is is not not suitable suitable for for operators operators or or quality quality inspectors inspectors in in the the shop shop floor. floor. Value to Customer Solution: Use SAP xmii to combine Manufacturing and Quality Management Processes! Comprehensive view on quality and production data in SAP xmii Easy user interface to access SAP QM results recording Pre-built mysap ERP integration Process optimization in the laboratory and production area Improved compliance through enhanced data visibility Easier to connect electronic test devices SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.13
14 What is the SAP xapp Manuf. Integration and Intelligence (xmii)? SAP NETWEAVER Other SAP Bus. Solu tions Manufacturing Intelligence Dashboards mysap ERP SAP Manufacturing mysap SCM SAP xmii Manufacturing Intelligence Manufacturing Integration SAP BI The SAP xapp Manufacturing Integration and Intelligence (xmii) is a packaged composite application that delivers: Manufacturing Intelligence: Real-time analytics engine that aggregates and delivers unified visualization of events, alerts, KPIs and decision support to production personnel thru role-based dashboards Manufacturing Integration: A single ISA-95 compliant layer enabling SAP ERP connectivity into real-time plant floor apps. (MES, SFA, LIMS,..) to drive plant-to-enterprise business process interoperability MES Manufacturing Execution Systems, EMI Enterprise Manufacturing Intelligence, BW Business Warehouse (from SAP) SFAC Shop Floor Automation & Control, LIMS = Laboratory Information Management Systems SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.14
15 SAP QM Productivity Pack for SAP xmii Use Cases Content Content SAP SAP will will deliver deliver generic generic templates templatesfor for quality quality data data entry entry and and visualization visualizationthat that enable enable a state-of-the-art state-of-the-art user user interface interface for for the the operator operator who who is is responsible responsible for for inprocesprocess quality quality checks. checks. A seamless seamless integration integrationbetween SAP SAP xmii xmii and and the the mysap mysap in- ERP ERP QM QM backend backend will will be be provided. provided. Use Cases for the Operator/Quality Inspector Retrieve a work list of QM inspection lot operations for his work center in SAP xmii Record inspection results online (synchronized with mysap ERP QM) Display inspection results Generate graphics for critical inspection characteristics (run chart, control chart, results history) to perform trend analysis Transfer results from electronic test devices Trigger quality notifications in mysap ERP QM This slide contains only intended developments and/or functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.15
16 SAP QM Productivity Pack for SAP xmii - Overview SAP QM Productivity Pack for SAP xmii SAP xmii (11.5) QM Results Recording Light weight for Operator on the Shop Floor Exchange of Inspection results SAP QM Inspection lot data (BAPIs or service-enabled) Interface box (e.g. Steinwald) 3rd party LIMS mysap ERP (SAP R/3) QM Master Data and Inspection Planning QM Results Recording Heavy weight (for Power Users) Electronic test equipments mysap ERP QM can be operated as a full-blown LIM-system SAP xmii can integrate data from mysap ERP QM (Rel. 4.6C and higher) and from 3rd party LIM-systems to improve productivity on the shop floor Planned Availability for SAP xmii 11.5: Q This slide contains only intended developments and/or functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.16
17 Quality Control in Manufacturing: Process Roles Measure and improve KPIs Quality Manager Quality Planning Released Production Order Create Inspection Lot (Automatically) SAP xmii Operator Record Quality Data (Results/Defects/IPC) Monitor Quality Data (SPC / SQC) Quality Inspector Approve Batch / Orders Control Produced Batch / Orders Plant Manager Audit, on Demand and Review Results SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.17
18 Step 1: Quality Planning in mysap ERP QM master data maintenance (characteristics, methods, ) Central inspection planning and distribution via ALE possible Engineering Workbench (EWB) for mass maintenance of task lists Inspection operations integrated in routings/master recipes or as separate inspection plans Release production order to trigger in-process inspection Demo Part 1 Role: Quality Planner SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.18
19 Step 2: Record Quality Data on Plant Floor Using SAP xmii Work lists with inspection lot operations (per work center) Display list of inspection points Select inspection characteristics (from QM inspection lot) Record results for characteristic Display run chart/control chart Exception management Automatic update of QM inspection lot in mysap ERP Demo Part 2 Roles: Quality Inspector or Operator This slide contains only intended developments and/or functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.19
20 Step 3: Quality Data Analysis - Options Quality reporting in mysap ERP: Inspection Work lists and reports Result histories and control charts Supplier evaluation QM Info System mysap ERP mysap BI Analytics based on mysap BI: Predefined queries with aggregated data from q-notifications and inspection lots SAP Analytics Business Packages using mysap BI content or ERP reports Quality Analytics with SAP xmii xmii Roles: Production Supervisor, Plant Manager or Quality Manager SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.20
21 SAP Manufacturing Intelligence Dashboards SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.21
22 Partner xapps based on SAP xmii to Drive QM Integration (1) Tata Consulting Services (TCS) is providing additional examples for dashboards and composite applications based on SAP xmii, e.g. Rapid Sigma. SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.22
23 Partner xapps based on SAP xmii to Drive QM Integration (2) Partner xapp from IBM: SAP xlc (LIMS Connect) SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.23
24 SAP Quality Management: Overview and Plant Floor Integration Using SAP xmii Overview on SAP Quality Management Plant Floor Integration: xmii and SAP QM Customer Success Stories Outlook
25 Customer Success Story Pratt and Whitney Canada Driving Quality Improvement thru Higher Visibility and Responsiveness with SAP xmii SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.25
26 SAP QM and SAP xmii at Pratt & Whitney Canada Results entry updates QM inspection lot SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.26
27 Pratt & Whitney Canada Driving Quality Improvement thru Higher Visibility & Responsiveness Value from the SAP xmii Solution: Savings from Quality Cost Avoidance will be realized in six major areas: internal scrap rework & repair lower supplier scrap resulting in lower material prices reduction in QN (quality notification) items reduction in warranty expense caused by manufacturing escapes improvement in engine retest ratio, and shop floor productivity improvement. SAP s xmii is a tool that will enable us to achieve roughly a $ 14 million saving per year in quality cost avoidance. In addition, we will avoid costly engine escapes at the end each of which could potentially cost us half a million dollars. How many are we going to avoid, we cannot know. Statistically speaking, if we avoid one, it would pay for the system by itself. Will reduce the probability of significant customer escapes*- a major customer escape can cost in excess of $ 500K The estimated annual savings are of $14MM per year at full implementation Claude Poliquin, Business Development Manager- Quality Presentation at the SAP xmii User Group Conference, Philadelphia, October 2005 * Customer escape is a defective aircraft engine or component delivered to the customer SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.27
28 SAP for Pharmaceuticals: SAP QM Used as LIMS SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.28
29 Using SAP QM as Integrated Enterprise LIMS The Solution LIMS is not a separate product but based on SAP Quality Management Application integrated in mysap ERP Main focus is on In-Process and Quality Assurance & Control labs Selected Reference Customers: BASF, Germany Roche Diagnostics, Germany Clariant, Switzerland DSM Fine Chemicals, Austria Olin Corporation, USA Dow Corning, USA SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.29
30 More Than 4000 Customers Use SAP QM Today! mysap PLM QM accelerates the inspection processes up to 50%. Automation, bothwithin mysap PLM QM and selected bolt-ons (LIMS and Auto Data Collection), reduces our inspection costs by approximately $750,000 (USD) annually in our global labs, and assists in ISO, GMP, and legal compliance efforts. (Source: Dow Corning, Midland, Michigan, U.S.A.) mysap PLM offers a flexible and open solution for our quality management. We are using quality notifications to improve our company-specific development processes. The associated workflow functions enable us to efficiently solve problems that arise in the development phase. (Source: Porsche AG, Germany) Our efforts are focused on our customers and their demands for high quality. The quality of purchased parts plays a decisive role. Thanks to the transparency of data in mysap PLM Quality Management our optimization process is supported and we are in a position to improve our quality and thereby lower costs. (Source: ZF Passau GmbH (Automotive Supplier), Germany) Using Quality Management with mysap PLM as our Enterprise Laboratory Information Management System (LIMS), we were able to accelerate our inspection processes, reduce costs and fulfill legal requirements. (Source B.Braun Melsungen AG (Life Sciences), Germany) SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.30
31 SAP Quality Management: Overview and Plant Floor Integration Using SAP xmii Overview on SAP Quality Management Plant Floor Integration: xmii and SAP QM Customer Success Stories Outlook
32 New in Quality Management with mysap ERP 2005 Multiple Specifications Plan, test, and classify batches according to different characteristics Operation Completion Function Indicate when inspections are complete in one work center/laboratory and trigger follow-up actions Flexible Reporting Capabilities Create analytical online reports on quality data combined with graphical representation Enhancements to Audit Management Function Link corrective actions to ERP QM notifications and evaluate audit data with mysap BI Quality Inspection Engine (QIE) QIE is delivered with mysap SCM 5.0/SAP NetWeaver 2004s to support service-based quality inspections in a heterogeneous system landscape SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.32
33 Key Objectives for Quality Management with SAP Quality Management with SAP Strategic Themes Leverage SAP xmii for QM Adopt Enterprise SOA for QM scenarios Support improvement processes and compliance Key Headlines Deliver QM content for SAP xmii Enable test equipments/interface box connectivity using SAP xmii Provide dashboard for Six Sigma Project Lead and Quality Inspector Provide Failure Mode and Effect Analysis (FMEA) tool to enable Design for Six Sigma and support NPDI process Enhance product compliance Continuous improvements for QM as LIMS/CAQ Develop enterprise services to enable new QM scenarios Note: The information in this Roadmap is proprietary of SAP. This document contains only intended strategies, developments, and/or functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.33
34 7 Key Points to Take Home Quality Management from SAP Offers a solution seamlessly integrated with the supply chain with various control options at every stage Supports Good Manufacturing Practices (GMP) and other legal requirements Offers an end-to-end solution for QM and lowers Total Cost of Ownership (TCO) Provides consolidated and predefined quality key figures they can be analyzed and drilled down to any detail Enables proactive tracking of Corrective And Preventive Actions (CAPA) Drives decision-making to the shop floor through integration with SAP xmii Is a flexible and scalable solution built on latest SAP NetWeaver technology SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.34
35 Your Turn: Questions? Thank you for your attention Dr. Manfred Schulz Application Solution Management Manufacturing Compliance/QM & Six Sigma SAP AG Dietmar-Hopp-Allee 16 D Walldorf Germany SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.35
36 Copyright 2006 SAP AG. All Rights Reserved No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iseries, pseries, xseries, zseries, z/os, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, and Informix are trademarks or registered trademarks of IBM Corporation. Oracle is a registered trademark of Oracle Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. MaxDB is a trademark of MySQL AB, Sweden. SAP, R/3, mysap, mysap.com, xapps, xapp, SAP NetWeaver, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages. SAP AG 2006, SAP QM Overview and SAP xmii, Denver 2006 p.36
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