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SAP xMIISAP xMIIxApp for ManufacturingxApp for ManufacturingIntegration & IntelligenceIntegration & Intelligence
De-Mystifying
Manufacturing Execution
Paul BorisDirector, Business Development
Emerging Solutions
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Key Topics
� xMII Use Cases
� Customer SuccessBenchmarking
� What is Manufacturing Execution ?
� What xMII DeliversOverview
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
What is it …
� Well Established …� v11.5
� Adaptive Manufacturing Summit 9/27 & 9/28 - Denver
� Hundreds of Servers Deployed in all industries
� Ability to Function as a Stand-alone Application
� Set of Integrated Tools …� Data Access
� Business Logic
� Visualization
� KPIs / Alerts / Metrics
� SPC Engine and Visualization
� Aggregate/Transform/Visualize data from multiple sources …� SAP Business Suite
� MES
� Non-SAP Business Systems
� Process Control, Shop Floor, Quality, Lab Systems, etc
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
What is does …
� Supports Operational Excellence Programs
� TPM
� Six-Sigma
� Lean
� Autonomous Maintenance
� …any program requiring the delivery of the right information, at the right time, to the right people, in the right format
� Helps to …
� Identify optimal performance ensuring you maintain the proper amount of equipment / personnel
� Identify suboptimal performance resulting from either under usage, or form over usage that strips supply-chain productivity
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Why it matters …
� Pratt & Whitney Canada – QM Integration
• $14MM Annual Savings
• Author QM Processes to the Front-line Operators
� PepsiCo - Asset/Order Performance
• Drive TE (OEE Derivative) from 65% to 85% in Capacity Constrained Environment
• Speed Acceptance of ERP Rollout wave
• Deliver Enterprise Integration
� Whirlpool Corporation – High-Availability
• 20x ROI in first 2 years
• Simplified Operator UI
• Integrated to Existing Shop Floor (MES) Applications
� Dow Corning – Customer Service / Inquiry & SPC, SQC
• Reduced Inquiry Response Time to Hours from Days
• Basis for Global Information Architecture
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Typical Initiatives – Framework vs. Point Decisions
� xMII can deliver Point Solutions
� OEE Accumulation
� KPI Calculation
� KPI Reporting
� Manufacturing Analytics
� Dashboarding
� …
� xMII can act as the tool supporting Operational Excellence
� MES Integration
� Multi-site Performance
� Quality Comparisons
� Re-use / Re-purpose Shop Floor Data at the Enterprise
� Shop Floor User Simplification
� TPM
� Lean Sigma
� High-Availability Options
� …
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
xMII Benefits – Framework vs. Point Decisions
� Simplify Acquisition and Presentation of data
� Deploy new or previously unavailable* views of data
� “Future-proof” Operational Technologies
� Author Business Processes to the front-line operations
� Compose Vertical / Horizontal Processes from existing data sets
� Dramatically reduce the time to deploy, cost and number of System Interfaces
* Based on existing disparity, the time to collect, aggregate, analyze and distribute Information often makes it dated (at best) or invalid (at worst).
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Performance Optimization
1
1. Equipment Status Changes and associated Status Codes immediately detected from existing Shop Floor Automation Systems
2. Status Codes are compared to Maintenance System for standard Event Descriptions
3. Status Codes are compared to Operational Excellence / TPM System for current acceptable Cause Codes for that asset
4. Operators enter additional commentary as needed
5. Maintenance can be alerted if the issue is beyond the operator’s abilities.
6. Real-time feedback on performance based on standard run rate and actual thru-put for order in process
7. Every event, including associated data, is captured for further review and analysis –only events over a certain threshold are shown on-screen / or require operator input
2 3 47
5
6
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Quality-centered Composites
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
MES – the fundamental model …
MESA INTERNATIONAL MES MODELfrom MES Explained: A High Level Vision, MESA International
MES Defined – The 11 Functions of MESexcerpted from MES Explained: A High Level Vision, MESA International
1. Resource Allocation and Status
2. Operations/Detail Scheduling
3. Dispatching Production Units
4. Document Control
5. Data Collection/Acquisition
6. Labor Management
7. Process Management
8. Quality Management
9. Maintenance Management
10. Product Tracking and Genealogy
11. Performance Analysis
“The announcement by SAP that it acquired Lighthammer will gain big points with
SAP users who’ve bought into the Adaptive Manufacturing vision. It’s a signal to the market that SAP clearly gets what’s needed to meet customers’ strategic goals
for manufacturing.”
- Alison Smith“Lighthammer – SAP gets it,” June 23, 2005
Many plants now have information systems that leave plantwide activities to non-automated systems, while other areas have software. MES is the set of software functions that work with the management systems, people and practices to support operations excellence.
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
MES – How the Pieces Fit …
MESA INTERNATIONAL MES MODELfrom MES Explained: A High Level Vision, MESA International
� SAP Capability � There will be functional overlap
between components
� mySAP ERP and xMII are complementary and integrated
� MES Functionality Defined� Observation / Integration
� Enforcement
� Observation/Integration - xMII� Data Access (Plant & Enterprise)
� Machine Alerting / Alarming
� KPIs / Trending / Ad-Hoc Metrics
� SAP UI Simplification
� Drill-down / Across to Granular Data
� Enforcement – ECC & MES� BOM / Alternate Enforcement
� Effective / Expiration Dates
� Lot Track & Trace
� Serialization
� FIFO / LIFO Compliance
� True MES Capability� Observation + Enforcement
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
EndEndEndEnd----totototo----end Functionalityend Functionalityend Functionalityend Functionality
Suppliers & Contract
Manufacturers
Customers & Partners
Product Design & Quality
Marketing & Sales Supply Chain Management
Manufacturing & Assembly
Logistics & Distribution
Order Management Service Management
Enterprise Management & Support
Time-to-Market
Managing Innovation and
Development
Collaborative Engineering
Go-to-Market
Marketing
Sales Force Management
Channel Management
Supply-to-Market
Demand and Supply Planning
Sourcing and Procurement
Distributed Manufacturing
Quote-to-Cash
Quotation, Contract, and Order Management
Fulfillment and Logistics
After Sales Support
Customer Service Management
Service Parts Management
Field Service Management
Consulting and Engagement Management
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Demand and Supply Planning
Demand Planning (S1, S64)
Supply Network Planning (S1, S64)
Distribution Planning (S64, S1)
Supply Chain Monitoring and Control (S51, B12)
Sourcing and Procurement
Source of Supply Management (S12, S47)
Purchase Order Processing (S47, S12)
Supplier Collaboration (S10, S64)
Distributed Manufacturing
Production Planning (S64)
Production Scheduling (S64, S1)
Manufacturing Execution (S64)
Corrective Maintenance (S64)
Quality Assurance and Control (S62)
SupplySupplySupplySupply----totototo----MarketMarketMarketMarket
Suppliers & Contract
Manufacturers
Customers & Partners
Product Design & Quality
Marketing & Sales Supply Chain Management
Manufacturing & Assembly
Logistics & Distribution
Order Management Service Management
SAP Product Available SAP Product Available with Future Releases Future Focus Partner Product Available Partner Product Available with Future Releases
Supply-to-Market
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
MES – Where mySAP ERP & xMII fit …
Business Logic & Execution
Enforcement
Shop Floor Business Process
& Operator Interface
Start/End Run
Load Material
Alter
Setpoint
Enforcement Required
Material
Qualified
Additional
Datasets
CorrectBOM/Route
etc
Manual
and/or
Automated
Data
Collection
Lot Trace/Split/Merge
Yes
No
Yes
Yes
Yes
Log/Report/IgnoreNo
Log/Report/IgnoreNo
Log/Report/IgnoreNo
...
Log/Report/IgnoreNo
Yes
mySAP ERP
Transaction Complete
Query Master Data
...
Transaction Feedback
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
MES – How the Pieces Fit …
MESA INTERNATIONAL MES MODELfrom MES Explained: A High Level Vision, MESA International
� SAP Capability � There will be functional overlap
between components
� mySAP ERP and xMII are complementary and integrated
� MES Functionality Defined� Observation / Integration
� Enforcement
� Observation/Integration - xMII� Data Access (Plant & Enterprise)
� Machine Alerting / Alarming
� KPIs / Trending / Ad-Hoc Metrics
� SAP UI Simplification
� Drill-down / Across to Granular Data
� Enforcement – ECC & MES� BOM / Alternate Enforcement
� Effective / Expiration Dates
� Lot Track & Trace
� Serialization
� FIFO / LIFO Compliance
� True MES Capability� Observation + Enforcement
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
The Current State of Manufacturing - Disconnected
� Disparity of Systems and Data
� A typical manufacturing plant will have between 10 and 50 shop floor automation (SFA) systems
� A multi-site manufacturer will have between 40 and 700 SFA systems across its enterprise
… typically running in a disconnected fashion
Factory
Enterprise
DISCONNECT
DISCONNECT
DISCONNECT
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Using Manufacturing Operations as an Advantage …
SFAC - Shop Floor Automation and Control Systems
MES – Manufacturing Execution Systems
How are we hitting our targets?
� Total Cost of Production and Variance� Labor and Resource Productivity� Order Fill Rates and Cycle Times� Fixed and Variable Asset Utilization
ERPCoordination
What’s happening during every shift?
� Material availability and consumption� Capacity availability and utilization� Schedule changes� Product Genealogy tracking and QM
MESObservation &
Enforcement
What’s happening at each line?
� Cycle Times / Operating Efficiencies � Machine Breakdowns / Unplanned Downtime� Quality Index� Predictive Maintenance requirements
SFACControl &
Repeatability
Gra
nu
lari
ty &
Ra
te o
f
Acq
uis
itio
n E
xp
lod
es
De
ma
nd
for A
ccu
racy &
Tim
elin
ess B
ecom
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ritica
l
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Using Manufacturing Operations as an Advantage …
SFAC - Shop Floor Automation and Control Systems
MES – Manufacturing Execution Systems
How are we hitting our targets?
� Total Cost of Production and Variance� Labor and Resource Productivity� Order Fill Rates and Cycle Times� Fixed and Variable Asset Utilization
ERPCoordination
What’s happening during every shift?
� Material availability and consumption� Capacity availability and utilization� Schedule changes� Product Genealogy tracking and QM
MESObservation &
Enforcement
What’s happening at each line?
� Cycle Times / Operating Efficiencies � Machine Breakdowns / Unplanned Downtime� Quality Index� Predictive Maintenance requirements
SFACControl &
Repeatability
xMII Creates a Monolithic view of Existing Apps or Data
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Using Manufacturing Operations as an Advantage …
How are we hitting our targets?
� Total Cost of Production and Variance� Labor and Resource Productivity� Order Fill Rates and Cycle Times� Fixed and Variable Asset Utilization
What’s happening during every shift?
� Material availability and consumption� Capacity availability and utilization� Schedule changes� Product Genealogy tracking and QM
What’s happening at each line?
� Cycle Times / Operating Efficiencies � Machine Breakdowns / Unplanned Downtime� Quality Index� Predictive Maintenance requirements
xMII Creates a Monolithic view of Existing Apps or Data
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Multi-Plant Context
Company
Plants R3, mySAP ERPSAP NetWeaver®
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
xMII Architecture
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Use Models Directly Supported by xMII
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
End-to-End Composition / xMII & SOA
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Typical MES Requirements – Where MES and xMII fit …
� General � Data Collection Devices & Terminals
� Transaction Validation
� Alarming / Alerting
� Machine Performance
� Order Dispatching� ERP Connectivity
� Order Prioritization & Completion
� Factory Order Execution� Order Display & Compliance
� Enter / Review Setup Data
� Incident Log
� Order Completion
� Alter Machine Status
� Machine Tracking� Machine Status
� Problem / Maintenance Alerting
� Machine Efficiency
� Quality� Application Integration
� Traceability
� Dashboards
ECC / MES
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Results of Using Manufacturing as an Advantage …
excerpted from:“Pursuing Manufacturing Excellence through Real-time Performance Management and Continuous Improvement”
Greg Gorbach
Vice President, ARC
SAP xMII Drives Greater ROI by exploiting opportunities to use and re-use plant systems and data to drive operational effectiveness.
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Rate of Return with Small Project teams
START
Operatordashboard
Supplierdashboard
D J F M A M AJ J OS N D J F M
2004 2005 2006
Plannerdashboard
Operatordashboard
CMM
Agile Development
Procurement dashboard
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
These customer examples illustrate in detail the innovative
business processes resulting from the rapid generation of
Manufacturing Composite Applications leveraging SAP xMII
� Notification / Response Time Reduction- Dow Corning
� Margin Analytics - Eastman Chemical
� Performance Optimization- PepsiCo
� Quality Improvement- Pratt & Whitney
� Efficiency Optimization- Nova Chemicals
xMII Manufacturing Composite Application Examples
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Notification & Customer Response Time - Dow Corning
5. Email report to Product Manager, Disposition to SAP QM, Close record in QN System
2. Find Batch(es) created in MES to satisfy Production Order
3. Get Historian and LIMS data for batches, run xMII Analytics
4. If SPC Alarm it is a Batch production problem – provide aggregate view of LOTS & CUSTOMERS
1. Look up customer PO from SAP & return SAP Production Order
1
2
5
3
4
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Business Case – Service Improvement
� Application Reduced Customer response time to QN from 7 Days to less than 1 Day
� Commitment of 4 hours for containment, 24 Hours for root cause analysis
� Business Benefit
� Increased market share in the electronics industry due to superior customer service – GM Speciality Materials Business “ROI? – either we get our response time to under 3 days or
we’re out of this business”
� $1.4M Cost avoidance due to faster containment
� Deployment Time – 6 weeks
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
1. Display key products in production, future planned runs and calculated values.
1
23
5
4
5. Drill-down into LIMS details to verify quality levels.
2. Drill-down into MES for batches in production and planned for a single product.
3. Drill-down into laboratory data for a single batch
4. Display customers that have open demand for product with specifications in production.
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
4
Performance Optimization – Visual Plant
1. Real-time Kanban Bin Status based on data from individual operations and business system – can be directly tied to mySAP ERP.
2. Current Order and Release Status for targeted operations –Ability to generate tickets, re-generate tickets, view documents as well as track status of orders
3. Real-time Operation Metrics with Drill In for trending analysis
4. Ability to monitor ticket status and find lost or stranded bins or loads.
1
2
3
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Ability to analyze root causes of constraints that impacted losses in Production Capacity and contribution margins drives Continuous Process Improvement
Impact of Manufacturing Excellence on Bottom Line
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
SPC – On the Fly
The date or time column must be the first column in the Excel file and must have a column heading.
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
SPC – On the Fly
Imported file, Selected the column,
selected the standard chart type from
the SPC module.
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Plant to ERP - Production Operations
Interactive Workcenter
Schedule: Production
Schedule updated every 30
minutes.
Double Clicking on a
production order provide
the confirmation screen
to enter new production.
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Opportunity – Streamline Interaction with Plants
Quality Management
Back
en
d A
pp
licati
on
sS
AP
R3,
Leg
ac
y,
etc
Pallet Labeling
Warehousing
Material Movement
Recipe Management
Line MonitoringFie
ld In
frastr
uctu
re
SAP GUI
Output Management Fie
ld D
evic
es C
on
necti
vit
ySupply Chain
SA
P x
MII
Sh
op
Flo
or
Co
nn
ecti
vit
y
SAP Standard PatternFor Plant Connectivity Library of xMII Objects
+ -
Radio Terminal Devi ce
F
N
R
Sampling of BusinessProcesses Deliveredto Sites
ANY Single ProcessIs Divided into MultipleInteractions…
Any Interaction, to Multiple Interfaces to systems, devices, processes…
Retain Device and System Flexibility at the Plant Floor
� Decouple Operators and Operations from the technology stack� Leave existing systems in place as you rationalize your infrastructure� Extend the life of legacy applications until new technologies are introduced
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Point vs. Platform – ROI moving Forward
Industry Trends and InitiativesAMR, Gartner, ARC
Your Long RangeManufacturing Architecture
SAP’s Adaptive EnterpriseAdaptive Manufacturing, DDSN, E-SOA
Point Solution Path
SOA Approach
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
� Simplify Acquisition and Presentation of data
� Deploy new or previously unavailable* views of data
� “Future-proof” Operational Technologies
� Author Business Processes to the front-line operations
� Compose Vertical / Horizontal Processes from existing data sets
� Dramatically reduce the time to deploy, cost and number of System Interfaces
xMII Benefits – Framework vs. Point Decisions
Many plants now have information systems that leave plantwide activities to non-automated systems, while other areas have software. MES is the set of software functions that work with the management systems, people and practices to support operations excellence.
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Questions …
SAP AG 2005 - SAP xMII – Improved Manufacturing Execution & Integration, Paul Boris, Emerging Solutions
Glossary
• ECC – Enterprise Core Components, mySAP ERP
• KPI – Key Performance Indicator
• MES – Manufacturing Execution System
• OEE – Overall Equipment Effectiveness
• QN – Quality Notification
• SFAC – Shop Floor Automation & Control
• SOA – Service Oriented Architecture
• SPC – Statistical Process Control
• SQC – Statistical Quality Control
• TPM – Total Productive Manufacturing
• VIP – SAP Cross-app for Plant Maintenance Simplification
• xMII – SAP Cross-app for Manufacturing Integration & Intelligence
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