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February 3, 2021
David Wascom SVP, Executive Programs, ASUGJames Lafever Sr. SAP Business Applications Analyst, Milliken
Rakesh Gandhi VP, NA Industry 4.Now Hubs, SAP AmericasDavid Dreyer GTM Lead, NA Industry 4.Now COE, SAP AmericasSujit Hemachandran, Sr Industry 4.0 Digital Transformation Lead, Industry 4.Now Hubs, SAP AmericasBen Hughes Industry 4.0 Digital Transformation and Lead Architect, Industry 4.Now Hubs, SAP AmericasVivekananda Panigrahy Industry 4.0 Digital Technology Lead, Industry 4.Now Hubs, , SAP AmericasMatt Ruff Industry 4.0 Digital Transformation Services, , SAP Americas
ASUG Executive Exchangefor Discrete Industry Sector
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LEGAL DISCLAIMER
This presentation outlines our general productdirection and should not be relied upon in making apurchase decision. This presentation is not subjectto your license agreement or any other agreementwith SAP. SAP has no obligation to pursue anycourse of business outlined in this presentation orto develop or release any functionality mentioned inthis presentation. This presentation and SAP’sstrategy and possible future developments aresubject to change and may be changed by SAP atany time for any reason without notice. Thisdocument is provided without a warranty of anykind, either express or implied, including, but notlimited to, the implied warranties ofmerchantability, fitness for a particular purpose, ornon-infringement. SAP assumes no responsibilityfor errors or omissions in this document, except ifsuch damages were caused by SAP intentionally orgrossly negligent.
SAFE HARBOR STATEMENT
This document is intended to outline future product direction, and is not acommitment by SAP to deliver any given code or functionality. Any statementscontained in this document that are not historical facts are forward-lookingstatements. SAP undertakes no obligation to publicly update or revise anyforward-looking statements. All forward-looking statements are subject tovarious risks and uncertainties that could cause actual results to differ materiallyfrom expectations. The timing or release of any product described in thisdocument remains at the sole discretion of SAP. This document is forinformational purposes and may not be incorporated into a contract. Readersare cautioned not to place undue reliance on these forward-looking statements,and they should not be relied upon in making purchasing decisions.
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q Welcome and Kick-Off
q Industry 4.Now Overview
q Milliken’s Industry 4.0 Journey
q SAP Industry 4.Now Deep Dive on Outcomes
q Experience Industry 4.Now
q Key Take-Aways/ Q&A
Today’s Agenda
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Redundant, costly suppliers
Reactive fulfillment planning
Shift and workforce expansion
Source multiple suppliers
Expensive expedited delivery
Unplanned maintenance
A resilient supply chainA reactive supply chainBalance global and local
suppliersDisrupted supply
Continuous cross-functionalplanningReactive PO planningHighly variable demand
Industry 4.0 processdigitalization
Shift and workplaceexpansionInterrupted manufacturing
Inventory optimizationExtensive inventoryexpansionInventory shortages
Adaptive logistics carriernetwork
Increased delivery optionsand higher expedited costsDelayed shipments
Predictive maintenanceand service
Emergency maintenanceand repair dispatchAsset breakdowns
Digitalization – the Pathway to Resiliency
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Digital Supply Chain Design to OperateAchieving a Resilient Supply Chain
The Digital Supply Chain that isintegrated from design to operateacts more like a network.
Visibility, communication, planning,analysis, and execution areorchestrated across the criticaloperational phases based on real-time inputs and requirements.
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Live Enterprise: Digital Board Room to Digital Operations Center
Shop Floor to Top Floor(Inverse Historian)Supply Chain Control
towerFinancials
Digital Operations CenterDigital Board Room
Logistics Control Tower
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Manufacturing Operations View –Industry 4.NowProcess View – Design to Operate (D2O)
Winning Strategy
Copyright © 2019 Milliken & Company. All rights reserved | 11
SAP MII - Manufacturing Integration & Intelligence
Extensible manufacturing platform allowing rapid adaption to any manufacturing process
Integration: Provide interoperability (in)between Shop Floor solutions and enterprise ERP (PP,PM, MM, QM)
Intelligence: Visualize data from any of above sources to provide KPIs.Provide simple and efficient local User Interface and Dashboards
Innovation: Powerful SOA-enabled business logic to cover for customer specific processes aroundPlanning, Execution, Maintenance and Quality
• Allows Fast prototyping to achieve fast ROI• Broad and extensive Partner Network and Customer Community• Applicable to all Manufacturing Industries and Utilities
Copyright © 2019 Milliken & Company. All rights reserved | 12
EnvironmentalBuilding Management
PLAN MAKE DELIVER
ERP SCM PLM
LIMS/Inspection/Equipment Testing
MESSCADA/HMI
Plant DataCollection
WirelessIntegration
Plant Historian
Plant DB
DCS/PLCvia OPC
INTEGRATION
Distributor/Customers
Supplier/ContractManufacturer
PerformanceManagement Worker UIs
Plant Connectivity
ManufacturingAnalytics ERP Business
ProcessSimplification
Business Logic ServicesVisualization
Quality EnginePlant Information Catalog
Data Services
Manufacturing Integration & Intelligence
SAPNetweaverJAVA
Message ServiceManufacturing Data ObjectsKPI & Alert Framework
OEE Management
SAP MII - Manufacturing Integration & Intelligence
Copyright © 2019 Milliken & Company. All rights reserved | 13
SAP MII OEE – Standard Content
Rich Standard Content on top of MII for simple order execution along with calculating of keyOEE KPIs.
Bi-Direction top-floor to shop floor integration. Ability to download production/process order,collect production, rework, waste, standard value key, raw material etc. and post it back to ERPsystem.
Capture the root causes for downtime, efficiency loss and poor quality. Facilitates analysis andcorrective action at the plant level and across plants
Analysis real time information on OEE, Availability, Performance and Quality on varioushierarchy levels along with business context
Operator friendly UI design Responsive and device friendly UI, State-of-the-art technologies
Automation Support of Green field and Brown field factories Support of Manual, Semi-automatic and Automatic Production environment
Copyright © 2019 Milliken & Company. All rights reserved | 14
SAP OEE – Overall Equipment Effectiveness
Copyright © 2019 Milliken & Company. All rights reserved | 15
Milliken’s Journey
July – Sept 2017 – Proof of Concept Project – Integrator 1• Custom built application using MII toolset
December 2017 – Gillespie plant asked to run POC application in production• Engaged remote consultants to “fix” code
April 2019 – RFQ – Implementation at GillespieApril 2019 – SAP Manufacturing presentations – New York and RMCMay 2019 – Blueprint Workshop – Integrator 2
• Proposed custom solution
July 2019 – Signed SOW with SAP Consulting – Standard OEE ImplementationAugust 2019 – First full-time consultant engagedOctober & November 2019 – Go Live with Core EquipmentJanuary 2021 – S/4 ConversionFebruary 2021 – Go-Live with New Equipment
Proof of Concept22 Months
Implementation5 Months for Core Equipment
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SAP’s Strategy for Industry 4.0SAP Industry 4.Now approach addresses three business priorities with one leading strategy
Center on Customersso their input and preferences
are the source of all you do
Reinvent Productionusing intelligent assets
and processes that dynamicallyadapt to production priorities and
deliver customization at scale
Connect the Entire Companyorchestrating sales, service,and logistics with productionto transform how you work
Move digitalization and Industry 4.0 from factory-focused initiatives to a company-wide, competition-beatingbusiness strategy. Combine manufacturing automation with enterprise business execution.
1 2 3
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Industry 4.0 – by SAPLeveraging Intelligent Enterprise Technologies and Applications
Customer and Employee Experience
Sales Service& Support
Marketing
Front Office
HR
IT
Procure& Finance
BackOffice
Production& Logistics
Supply Chain
The Intelligent Enterprise
Intelligent ProductIntelligent Factory
Intelligent AssetsEmpowered People
Business Network
CXDesign to Operate S/4HANAIndustry Cloud Sustainability
TechnologyEnablersIoT Cloud
& Edge
Intelligent Decisions
Data Driven Processes
IT/OT Integration
by SAP
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OperateProduct Designand Engineering
Manufactureand Assemble
Deliver
Importance of Digital TwinIt is all about the lifecycle and data of One Product
Design Manufacture Deliver IOperate
Engineering Model(s)and BOM presented as
Digital Twin
Manufacture andAssemble Product as
Physical Twin
Product Deliverywith Design and
Manufacturing Definition
Service,Maintenance and
Operational History
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The Digital Thread that Ties Everything TogetherWhere technology and the entire product lifecycle meet
A single digital thread that integrates all the real-time information, feedback, performance,and data on a product from inception to sunset. Enabling processes to evolve from reactive to predictive.
SAP EdgeServices
SAP Industry4.Now/ SAP IoT
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BusinessNetworks5
Enterprise &Supply Chain4
Industry 4.0Operations3
Factory/Plant
Sensing &Control
Industry 4.0Monitoring
PhysicalThings
2
1
0
Discrete Factories & Process Plants
Digital Supply Chain
Manufacturing Operations Management
Automation, CNC, IO, PLC, …(physical shop floor)
Machines, Devices, Sensors, Tools, Shelves, KanbanBoxes, Workers, Forklifts, Tags, AGVs, etc.
Manufacturing, Engineering, Process & Simulation
Inventory Manufacturing Quality
Maintenance EnvironmentHealth, Safety
3rd PartyExtensions
Horizontal Integration
Vert
ical
Inte
grat
ion
Key Differentiators
From many digital twinsTo one digital lifecycle thread
From siloed applicationsTo standardized digitization
From process dataTo data driven processes
From deterministic processesTo predictive and prescriptive processes
From managed on premiseTo managed EDGE
ECC S/4HANA
Target Solution Blueprint – Industry 4.NowLeveraging SAP Intelligent Enterprise
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Intelligent Factory - Let’s Experience Live
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Showcase - Industrial Partnerships
Double-seated valve
Torque driver andtightening technology
Warehouse
RoboticsWeighing scales discrete
Sensors
Automation technology
Gesture control
Bottling bock
Brown field connectivity to cloud
Weighing scales processSensor button technology
Grippers
Digital 3D environments
Inhouse Geotracking
OPC UA empowerment
MIR AGV
Industry 4.0 Torque driver
Robotics
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Use Cases covered in SAP Industry 4.Now ShowcaseDiscrete Industries – Intelligent Factory
q Real-time shop floor toTop floor analytics
q Digital OperationsCenter
q Digital Thread/One PaneGlass – Manufacturing &Maintenance
q Personalization
q Lot Size of One
q “As-built” Genealogy
q Production Order Scheduling- Production planner down toone day horizon
q Inbuilt Quality Managementw/ Visual Inspection
q Lights out Factory
q Modular Manufacturing(Matrix Production)
q Automation of ProductionMaterial Flow - AutomatedWarehouse
q Dynamic routing
q Digital twin of finalmanufactured equipment
Powered by SAP Industry 4.Now
Typical Industries
q IMC
q Automotive
q High-Tech
q A&D
q ….other hybrid process/discrete manufacturerse.g. Building materials, etc.
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10% reduction in operating costs.
What you just Experienced drives the Business Outcomes and Values
SAP Performance Benchmarking, n = 203
SAP Performance Benchmarking, n = 202
State-of-the-art business processes
Connected manufacturing
Top floor to shop floor visibility
Faster more efficient execution
Advanced analytics
40% increasing in operating efficiency.
SAP Performance Benchmarking insights pertain to year 2017 and run on overall data collected in the last 5 years. Number of data points analyzed for every insight is provided above.The insight states average performance difference between organizations with high and low maturity on the following best practice.
Situational Awareness160% increase in output.
SAP Performance Benchmarking, n = 203
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State-of-the-art showcases
Experience Explore Learn Move
Focused deep-dive Industry 4.Nowworkshops
Online interactive Learning Journeyguides for Experts and Executives Support of pilot projects*
Up-to-date demo scenarios Virtual Interaction with Experts Innovation Service Packages forIndustry 4.Now*
*SAP® Services and Support offerings provided at an additional cost
Industry 4.Now – Drive Adoption
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Industry 4.Now Online
Industry 4.0 on SAP.COM LINK
Industry 4.0 Strategy Whitepaper [Link]
Industry 4.Now Brochure LINK
Industry 4.Now Hub Brochure [Link]
Videos for D2O and D2C Showcase [Link]
Experience Digitally [Link]
Industry 4.Now Roadmap [Link]
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Key Take-Aways / Q&A
q Supports innovation to meet shop-floor needs and productivity
outcomes
q Enable End to End Digital Thread with true IT and OT
interoperability with an enterprise grade Industry 4.0 solutions
q Time to Value with one digital platform that can scale to multiple
plants and provides full shop-floor to top floor visibility
q Standard based connectivity and Interoperability with diverse
OEMs hardware and solutions
q Support hybrid deployment and builds on top of existing
investments and builds on top
Thank you.Rakesh Gandhi rakesh.gandhi@sap.comDavid Dreyer david.dreyer@sap.comSujit Hemachandran sujit.Hemachandran@sap.comBen Hughes ben.hughes@sap.comVivek Panigrahy vivek.panigrahy@sap.comMatt Ruff matt.ruff@sap.com
www.sap.com/contactsap
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