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In Pursuit of the Perfect Plant

SAP Live and Local Webcast Tour 08 27 March, 2008

Globally Distributed Manufacturing Is the New Norm


Lack of predictability

Production Processes Shared Information Orders Shipped


Capacity erosion
high offgrade produced and wide quality swings

VP BU
Varying process conditions lead to

CIO

Cant see business performance to plan, and recommend new plans to affect results

Higher energy use

VP Sales VP Manuf.
Plant Manager

Planners

Plant Manager

Plant Manager

MANUFACTURING PLANT

Product Variability - Inconsistent quality: by


plant, by product, by shift

MANUFACTURING PLANT

MANUFACTURING PLANT

Missed orders

CUSTOMER

Orders changed Field Sales

Orders returned

Customer Service NEW CUSTOMER

Hidden capacity
obscured by inefficient grade transitions & conservative operation

No visibility Cant see


plant wide production status due to 10 - 200 disparate shop floor info systems

SPOT MARKET CUSTOMER

Difficulty meeting tighter customer specifications

Cant match quality to orders

Inflexible production process contributes to

Missed Opportunity

The 3 Pillars that must be aligned to enable the Perfect Plant


Demand Adaptive Manufacturing Supply The Perfect Plant
Asset 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 Processes

Perfect Plant Components and Influencers


Increased Profit Margins

Demand

Operational Planning

Supply

Manufacturing Execution
is monitored and nearly event free due to proactive monitoring and automated event handling that is tightly coupled with EAM and the enterprise

Asset Performance

Manufacturing Execution

Improved Quality

Improved Compliance

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.

Reduced Raw Material Costs


What can really be controlled within the plant?

Perfect Plant Ecosystem

Delivery

MII
Best Practice

The Perfect Plant

Hardware
Valued Partners

Software

SAP ERP

Enabling Adaptive Manufacturing through SAP MII

Adaptive Manufacturing
Manufacturing Operations
SAP Manufacturing (SAP ERP)

SAP MII enables adaptive manufacturing by synchronizing manufacturing A Single Version Reliably produce operations with the of enterprise to deliver a single version of the truth and drive the Truth to target with manufacturing excellence. across the year-to-year
Enterprise process and cost improvement
Manufacturing Intelligence

Manufacturing Integration

SAP MII

Manufacturing Synchronization

Manufacturing Excellence

SAP Manufacturing Integration and Intelligence (MII)


The SAP Manufacturing Integration and Intelligence (MII) application 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, legacy apps.) to drive plant-toenterprise business process interoperability

SAP NETWEAVER
Other SAP Bus. Solu tions Manufacturing Intelligence Dashboards

SAP ERP SAP Manufacturing SAP SCM


XI SAP MII Manufacturing Intelligence Manufacturing Integration

SAP BI

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
Enterprise SAP NETWEAVER
Other SAP Bus. Solu tions Manufacturing Intelligence Dashboards

Plan work orders


Check resources Create mfg plan Scheduling Release work order Close order Shipping and logistics

SAP Manufacturing (SAP ERP)


XI SAP MII Manufacturing Intelligence Manufacturing Integration

Real-time events/alerts Order status Charge rates Life of inventory Yields Completions and usage Start and stop times Quality and lab data Process history Best practice deviations Efficiency Downtime tracking Rework scrap rates

SAP BI

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 QM Improved Overall Equipment Effectiveness (OEE) from 65% to 80%; implemented in 120 days Savings 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 challenges


Near-time visibility into customer orders across multiple plants from scheduling to dispatching Proactively detect machine, material, labor, and quality issues before customers do Evaluate real-time KPIs* and actual production costs and variances against targets Respond rapidly and cost-effectively to manufacturing exceptions Monitor, measure, analyze and control cost and target variances Balance manufacturing priorities against changing demand conditions-align with business objectives

Visibility

Responsiveness


*KPI Key Performance Indicator

Improve manufacturing processes and customer satisfaction - leverage new revenue opportunities
Minimize inventory, rework, overtime, and expediting costs consistently meet budgets Improve employee productivity, morale and quality of work life

Performance

Questions?

Our offer to you

Aberdeen Whitepaper: The Business Value of Plant Floor Visibility

SAP Whitepaper: In Pursuit of the Perfect Plant

Thank you