Shop Floor Basics SAP Manufacturing Execution. 17 th May ASUG

Shop Floor Basics SAP Manufacturing Execution 17 th May 2011 @ ASUG

Learning Points Overview of SAP Manufacturing Execution (ME) Learn how SAP Manufacturing Execution integrates disparate systems with shopfloor activities to create a single, comprehensive production record that is an aggregate account of the entire product history How you could utilize SAP Manufacturing Execution to capture, share, and store manufacturing data 2011 SAP AG. All rights reserved. 2 2

Agenda SAP ME Business Value SAP ME Overview A Day in the Life on the Shop Floor Turning Data into Information Reporting and KPIs SAP ME to ERP Integration Future Innovations Q & A 2011 SAP AG. All rights reserved. 3

SAP ME Business Value

Recovery and Global Restructuring Macro-Economic Data Drives Global Restructuring Efficiency & Margin Pressure Collaboration is Key Return to Quality Trends Restructuring in Supply and Demand Increased Margin Pressure Network Complexity Brand and Regulatory Impacts Impact Emerging Market Dominance Trade balances and currency valuation Margin expectations increase Profitability restored via higher productivity Product innovation focus Complex partner & JV networks Highly visible product recalls Traceability and food safety Cost Structures and Competition Expectations higher in emerging markets where growth is Hybrid Internal and Outsourced manufacturing Increased and uncertain regulatory climate 2011 SAP AG. All rights reserved. 5

Global Manufacturing Is Challenging: Adapt Profitably, Quickly, and Consistently to Demand Can t see Production Status Can t measure Performance Can t improve Execution CIO VP BU VP Manufacturing VP Sales VP Operations 2011 SAP AG. All rights reserved. 6 6

Put the Manufacturing Plant in Context Innovation Management VP, R&D Design View Portfolio Management VP Supply Chain Supply Chain View NPDI Sales & Marketing Supply Planning Sourcing Manufacturing Delivery Logistics After-Sales Service Demand Sensing Contract Mfg Outsourcers Suppliers VP Manufacturing Manufacturing View Internal Plants Plant Manager Internal Plant View 2011 SAP AG. All rights reserved. 7

The Perfect Plant Harmonizes Complex Manufacturing Network Interdependencies Plant-to-enterprise visibility Complete visibility across plants Quick adjustment to change, exception, and quality issues Optimal productivity and utilization of resources and assets Global coordination Up-to-date schedules Complete traceability, quality, and compliance Real-time event notifications and response Local execution Detailed production plans Identification and resolution of constraints to maintain optimal production Optimized work in progress (WIP) in response to reduced lead times Reliably produces to targets and delivers continuous improvements in cost, quality, and responsiveness 2011 SAP AG. All rights reserved. 8

Industries served with SAP Manufacuring Execution Aerospace & Defense Industrial Machinery & Components High Tech Automotive & Auto Electronics Medical Device low volume/high mix build-to-order assembly high volume/low mix repetitive manufacturing 2011 SAP AG. All rights reserved. 9

SAP Manufacturing Execution Data & Processes Stand-alone Manufacturing Execution System (MES) with out of box integration to ERP for discrete manufacturing Detailed definition of production processes, and dynamic control of WIP execution Real-time production information Product and process quality improvement: Role-specific provisioning of relevant information Zero-defect production Compliance with internal and external regulations Serialized Component Traceability Full Integration between shop floor and enterprise Production and Process Management Process definition and work instruction Process enforcement and data collection Paperless production (Operator Terminal) Alarm/Event Management Quality Management & Traceability Tests & SPC Defect recording and Non-conformance management Serial number / Batch / Time-based material Traceability Process-Traceability Plant /Machine Data Collection Time recording Machine connectivity Production monitoring (WIP, OEE, Yield, Line monitor, machine status, etc.) Production-Reporting & Dashboarding Enterprise Integration (ERP, PLM, etc.) 2011 SAP AG. All rights reserved. 10

What is SAP Manufacturing Execution? SAP ME is an application, not toolkit Ease of use/usability with configurable GUI Built-in business rules and logic Configurable system rules SAP compliant Product Solution Validation Product Standards Ramp-up Process Built on J2EE Architecture SDK for Extendibility Extend product capabilities Upgradeable product extensions Support partners and customers Product Configuration SAP Technology Stack Integrated or standalone SAP NetWeaver, SAP MII (limited license), Pco, SAP ERP Content included in product BusinessObjects for reporting is separate Enterprise Grade Software Will scale as business grows 2011 SAP AG. All rights reserved. 11

Traditional Traceability DISCRETE MANUFACTURING (HISTORICALLY) Shop floor fabrication and assembly processes run and managed by isolated applications: Excel spreadsheets Access databases Niche vendor applications RESULT: Individual silos of manufacturing operations and data Enterprise disconnected from shop floor decisions based on theory, not actual data Operational inefficiencies, lost productivity, wasted materials, etc. 2011 SAP AG. All rights reserved. 16 16

Product & Customer Traceability ERP SAP Visiprise Manufacturing MES & Execution SAP ERP & SAP ERP Product & customer traceability Plant Floor Suppliers Customer Internal & customer traceability, global enterprise, As-Built & As-shipped, downstream supply chain 2011 SAP AG. All rights reserved. 18 18

Full Supply Chain Traceability ERP Visiprise MES, SAP Manufacturing ERP & Quality Execution, SAP ERP & Quality Management Entire supply chain traceability Plant Floor Quality Management Customer Suppliers Entire supply chain traceability, preventative action, responsiveness 2011 SAP AG. All rights reserved. 19 19

SAP ME Overview

SAP Manufacturing Execution - Solution Suite 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 Production Metrics (BOBJ) Test and Repair 2011 SAP AG. All rights reserved. 21

SAP Manufacturing Execution Functionality Operator logs into an operation and a machine and selects a unit to work on Operator Dashboard configured to present the operator with only the information that s needed to perform this job on this unit Material consumption Data collection Diagrams/Documents Dashboard enforces correct operation, machine status is correct, operator is certified; process is enforced, data is collected, and next step is determined based on outcome 2011 SAP AG. All rights reserved. 22 22

SAP Manufacturing Execution Unit-Level Tracking Operator logs into an operation and a Material machine Consumption and selects a unit to work on Operator Dashboard Data Collection configured to present the operator with only the information that s Visual needed Instructions to perform this job on this unit Material consumption Data collection Diagrams/Documents Dashboard enforces correct operation, machine status is correct, operator is certified; process is enforced, data is collected, and next step is determined based on outcome 2011 SAP AG. All rights reserved. 23 23

SAP ME: SDK (Java) Key Features Develop new SAP ME functionality as well as extend current functionality to support customer specific requirements Leverage published API and Web Service libraries Facilitate and control customization projects using other supported tools such as source code control products Key Benefits Empowers partners and customers to build their own customizations Intended to preserve customizations during the upgrade process Supports new service packs and patch releases thereby reducing cost Reduces overall risk when customizing and upgrading 2011 SAP AG. All rights reserved. 29

A day in the life on the shop floor

Meet the Team: Dave Downs Production Manager Charlie Greene Line Technician Meeting the production schedule Maximizing production Number of good units produced per shift Minimizing downtimes Peter Chang Quality Assurance Manager Jane White Plant Manager First Pass Yield Asset Effectiveness Escape prevention Production Efficiencies Quality and Compliance Global Standards 2011 SAP AG. All rights reserved. 32 32

Error Proofing and Quality Gating Prevent Escapes Check for open Nonconformances Prevent work against jobs on hold Value Add verification Verify correct operator with up-to-date certification Correct Material consumed at specific times Material, Machine, Man, Method No defects, No breakdowns, Correct operator, Defined Process 2011 SAP AG. All rights reserved. 38 38

SAP Manufacturing Execution 5.2 Review RTC: 18 June 2009 Time Sensitive Material (TSM) Floor Stock Management (FSM) Overall Equipment Effectiveness (OEE) Tool Management (TM) Production Metrics Powered by Business Objects (SAPMEBOBJ) Globalization Software Development Kit (SDK) ERP Integration (SAPMEINT) 2011 SAP AG. All rights reserved. 40

Turning data into information Reporting and KPIs

SAP Manufacturing Execution Visibility and Analytics Enterprise Level Plant Level Dashboards Dashboards Reporting Link production data with information from enterprise systems Benchmarking and Reporting across plants e.g. OEE Report Drill-down Plan vs. Actual KPI-Cockpit according to VDMA 66412 standard Packaged solution from SAP Consulting 14 pre-defined Business Objects Universes 25 pre-defined Reports with Business Objects Web Intelligence Ad-hoc Reporting with Business Objects Explorer 2011 SAP AG. All rights reserved. 42

Business Objects Web Intelligence BusinessObjects Web Intelligence allows users to Run, copy and edit predefined web intelligence reports, scheduled and on demand Perform ad-hoc quiries and create new reports Modify and extend universes with Business Objects Universe Designer software Translate universes with Business Objects Translation Manager SAP 2007 / Page 44 44

Viewing ME ODS Reports using BusinessObjects Web Intelligence XI 3.1 SAP 2007 / Page 45 45

Overall Equipment Effectiveness (OEE) Report with MII Overall Equipment Effectiveness (OEE) report considers the availability, performance, and production quality of a machine or production line to determine the net or true efficiency of that machine or production line. OEE Report Results Properties By Hour, Day, Week or Month Each value is displayed as a percentage (%) Actual vs. Target OEE Display and Filter Options Written in MII and pulled from WIP SAP 2007 / Page 46 46

SAP ME to ERP Integration

SAP Manufacturing Execution Out-of-the-box Integration with SAP ERP ME/ERP Integration Pre-defined interfaces Communication based on Web Services, BAPI, RFC Using SAP MII as integration platform End-to-end process integration Seamless end-to-end process integration between ME und ERP Can be extended with customer-specific scenarios 2011 SAP AG. All rights reserved. 48

Synchronous Events Asynchronous Web Services Fully Integrated End to End Business Process Management Manufacturing Intelligence Manufacturing Integration Inbound Security Transformation Workflow Web Service SOAP IDOC ME MII ERP Outbound Web Service NW Message Enrichment Message Format Message Transfer Message Callback SOAP Web Service SOAP PCo SAP JCO BAPI/RFC 2011 SAP AG. All rights reserved. 49

SAP ME and ERP Integration SAP ME 5.2 SP5 SAP Enterprise Resource Planning Plant Maintenance Inventory and Warehouse Management Quality Management Production Order Planned Order Material BOM Routing Operation Material Classifications Inventory Receipt w/ Batch Inventory Reservation Equipment Scheduled Downtime UOM Support RMA Service Order Work Center HR User w/ Certification Master Data Authoring and Engineering Change Management Production Planning SAP Manufacturing Execution WIP (Lot and Serial #) Tacking and Genealogy Manufacturing Process Control Production Yield Confirmation Production Scrap Confirmations Planned Order Backflush Planned Order Scrap Component Consumption Parent Batch Number Component Batch Number Equipment Unscheduled Downtime Equipment Usage Inventory Return Inventory Scrap Inventory Unreserved DC Batch and Batch Characteristics UOM Support RMA Service Order Complete Quality Notification TcM PLM Adapter Defect Tracking and Resolution Data Collection Labor Tracking 2011 SAP AG. All rights reserved. 50

Plant Connectivity Solution Enhancements New native connectors for market leading applications; Additional data transformation and scripting capabilities to push more functionality closer to the data source; Continued investment in OPC-UA (Unified Architecture) to enable more full featured interop scenarios; Partner SDK with certification program; Continued investment to fully support other SAP solutions (ME, ERP, EWM); Key Benefits Plug-n-Play connectivity to plant applications and automation systems; Real-time monitoring for exception management; Integration with SAP Solution Manager to simplify administration of total solution landscape; Native API connectors to market leaders for maximum performance and simplest implementation PLANNED INNOVATIONS 2011 SAP AG. All rights reserved. 51

Future Innovations

SAP ME 6.0 New Functionality RTC: June 15, 2011 Enhanced Security UME Configuration Data Transfer Tool New Production Operator Dashboard Shop Work Bench Visual Test & Repair Floor Stock Management Sampling Electronic Time Sheet NetWeaver ADS Integration Earned Standards Message Board 2D Barcode Operation Standard Labor Time Recording Phantom BOM Support Data Field List DHR Improvements Technical Enhancements SAPMEINT Interfaces USER EXPERIENCE, TCO, EXTENSIBILITY, NW ADOPTION, MULTI-INDUSTRY 2011 SAP AG. All rights reserved. 53

SAP ME 6.0: New Production Operator Dashboard Features Modular plug-in and layout configuration Highly configurable to meet the disparate needs of the shop floor w/out custom coding Transact at both the production unit and operation levels Filter work by production unit, operation/resource, or work center/end item number Updated design to reflect modern look and feel Benefits Modular configuration supports customer process/workflow requirements Support for multi-mode manufacturing in both high volume and complex assembly environments Ease of setup and configuration allow a build your own approach right down to the user 2011 SAP AG. All rights reserved. 54

SAP ME 6.0: Technical Enhancements Extensibility The ME domain object model for persistence will be available for reuse to better support custom data objects and services New UI framework based on LSF (WPMF) for extensibility The plug-in/layout architecture enables small but nondisruptive changes PODs converted to WPMF (rest of app on older UI framework) New tool to generate web services from API PLUS documentation and samples All new API s will be available as web services Legacy web services hand coded and based on legacy code) Backwards compatibility with legacy web services maintained Additional APIs (and web services) published (approximately 500 in total) Documentation for WPMF plug-in writing and API to be included in SDK version 2.x Extending EXISTING POD UIs can be done through creation of plug-ins Existing core plug-ins cannot be extended Security NetWeaver UME integration (single sign-on) Auditing NetWeaver Administration Measurement Framework integration Import the measurements into the License Administration Workbench (LAW) for consolidation Solution Manager New Solution Manager content added to cover 6.0 scope TCO Diagnostics New activities to be used by SAP Services and Support to diagnose issues, particularly around transaction mgmt and DB settings Installation NetWeaver CTC integration to improve SAPMEINT installation and configuration process Database Consolidated ME DB scripts to reduce number of manual steps to decrease potential errors 2011 SAP AG. All rights reserved. 55

SAP Manufacturing Execution: Key Capabilities Serialized component traceability (as-built record) Real-time enforcement of engineering changes, quality, regulatory, requirements at the front line Dynamic routing based on real-time in process characteristics Granular WIP tracking with additional level detail for critical characteristics: revision level, quality status, lot characteristics Management of multi-level non-conformance processes Enterprise Grade Software Will scale as business grows 2011 SAP AG. All rights reserved. 56

Thank You! Contact information: Mike Lackey VP of Solution Management Manufacturing Execution mike.lackey@sap.com +1.404.643.2465