32756_GB_28555_4MFG_en

7/23/2019 32756_GB_28555_4MFG_en

http://slidepdf.com/reader/full/32756gb285554mfgen 1/16

SAP Business Suite powered by SAP HANA | Fact Book

ManufacturingFind Out How SAP® Business Suite powered bySAP HANA® Delivers Business Value in Real Time

7/23/2019 32756_GB_28555_4MFG_en



Disclaimer

This document is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no

obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release an

functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future

developments, products, and/or platforms directions and functionality are all subject to change and may be changed by SAP a

any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to

deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied

ncluding but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. Thi

document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors

omissions in this document, except if such damages were caused by SAP's willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially

from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only

of their dates, and they should not be relied upon in making purchasing decisions.

7/23/2019 32756_GB_28555_4MFG_en



SAP® Business Suite powered by SAP HANA

®

Manufacturing Successful manufacturers capture the opportunities of a globaleconomy while effectively managing their complex, distributed,and volatile business network. Changing customer demand,production standstills, and disrupted supply requirescontinuous adjustments of production and procurement plans.

Thriving in this environment begins wi th a new attitude towardchange. No longer considered an inconvenient disturbance of anotherwise exceptional plan, change becomes the agent thatdrives continuous adjustments of plans to reflect reality.

Reality changes in real time. Companies can reflect the reality ofplanning and operations at this speed of change to deliverresponsive manufacturing using SAP® Business Suite poweredby SAP HANA® to optimize cost and performance objectives.

SAP solut ions also support manufacturers in running their“ perfect plant” with integrated, comprehensive processes thatdeliver deep manufacturing planning, execution, and qualitymanagement capabilities.

SAP Business Suite powered by SAP HANA leads the way tonew, real-time business practices in key manufacturing areas:

Production Planning ................................................................................. 4

Material Requirements Planning ......................................................... 4

Efficient Manufacturing Operations ...................................................... 10

Global Plant Performance Management ........................................... 10

7/23/2019 32756_GB_28555_4MFG_en



4

Production Planning

Material Requirements Planning

Business Practices TodayMaterial requirements planning (MRP) forecasts procurement or production

of materials to satisfy internal requisitions and external orders from

customers or distribution channels.

Periodic MRP runs analyze demand based on sales orders, forecasts, stock

transfers, and dependent requirements. This analysis matches demand to

inventory levels, planned supply from production orders, purchase

requisitions, and purchase orders.

MRP runs plan production orders and purchase requisitions to fill the gap

between supply and demand. This process iterates because planned orders

create new demand for lower-level components or ingredients. New stock-

transfer requisitions create new demand for the supplying plants.

MRP runs usually occur once a day because they often run for several

hours.

Ambi tion

Sales orders and the supply chain continuously change and ignore the

runtime constraints of material requirements planning. MRP plans need to

reflect changes in sales and operations because they can become outdated

almost immediately.

Our customers can realize considerable advantages by running MRP more

frequently to reflect daily changes to supply and demand. Simulation and

analysis shows that tracking MRP supply-and-demand forecasts and actuals

more closely can reduce lead time and can improve order-fill rates and asset

usage, while reducing inventory levels.

In a first phase, SAP Business Suite powered by SAP HANA can run MRP

functions several times a day. Ultimately, periodic MRP functions can react

permanently on supply-and-demand signals and update production and

procurement plans in real time.

The next level of business practices may extend MRP from a single plant to

a network of plants and eventually reach beyond the walls of the enterprise

to connect customers and suppliers. This scenario suggests that a cloud-

based, collaborative MRP can move from local to global optimization.

Fast MRP5 to 10 times fasterthan on a classicdatabase (based oninternal testing of atypical SAP customerdata set)

7/23/2019 32756_GB_28555_4MFG_en



5

Challenges

Planners face the following challenges when running MRP:

• The consequences of supply-and-demand changes are invisible

until the next MRP run.

•

Only one MRP run can be performed at a time, so the duration of anMRP run can constrain the frequency of MRP runs.

• Tuning MRP for speed is difficult in many databases without in-

memory capability. Many techniques already improve performance,

such as planning in the planning horizon only (NETPL), parallel

processing, and using aggregated dependent requirements. A real

break-through needs a change in technology.

• Currently, MRP can run only for a single plant. In multiplant

scenarios, the planning sequence must be defined manually. This

process still does not guarantee coverage of all stock transfer

requirements after all planning runs have finished.

Business Innovation with SAP HANA

SAP HANA software enables business process innovations that solve the

major MRP challenges with fast, simple, and cross-plant MRP.

Innovation in Detail with SAP HANA

Fast MRP: A large chunk of MRP runtime goes into reading many different

material receipts and requirements. SAP HANA can collect this information

with unprecedented speed. Net requirements calculation, lot sizing,

sourcing, scheduling, and bill-of-material (BoM) explosion now run directly in

SAP HANA and benefit from the optimized data access.

Simple MRP: Many performance measures required by classic MRP

become obsolete when running MRP functions in SAP HANA. Planning

within the planning horizon only and specifying application servers for

parallel processing is no longer necessary.

Cross-plant MRP: MRP functions enabled by SAP HANA use special

procurement keys to determine the planning sequence for multiple plants.

The MRP run automatically plans for supplying plants after receiving plants,

so that stock transfer requirements are covered after the MRP run.

SimpleMRP

Cross-PlantMRP

7/23/2019 32756_GB_28555_4MFG_en



6

Benefits

The main advantage of running MRP processes on SAP HANA involves

more-frequent planning runs that reflect daily changes in supply and

demand:

• More-current supply-and-demand information promotes better

decision making and results in timely delivery and happiercustomers.

• Faster reaction to demand changes reduces the risk of stock-outs,

reducing safety stocks and required working capital.

• Supply-and-demand matching runs more efficiently, providing more

lead time to identify and fix issues earlier and faster.

Customers also benefit from the new planning scopes supported by MRP

functions enabled by SAP HANA:

• Selective planning: Selected material in a selected location (such

as a distribution center) and its supplying locations (such as a

production plant)

• Multilevel planning:

Selected material in a selected location and its

supplying locations along with components in one or more

production locations, at multiple levels across the complete supply

chain

• Planning for planners: All the materials for which one planner is

responsible

SAP Smart Business Cockpit for MRP

SAP Smart Business for MRP consists of a set of apps providing newoptions for monitoring key performance indicators (KPIs) and alerts for

solving planning issues. The apps, available on desktop and tablet

computers, provide various ways to identify the most urgent and important

issues based on time to action, order values, or priorities. In addition, the

apps offer pre-evaluated solution proposals with simulation capabilities to

help solve issues quickly. See figures 1 through 4 for details of MRP cockpit

displays provided by these apps.

NewPlanningApps

7/23/2019 32756_GB_28555_4MFG_en



7

Figure 1: Preview of MRP Cockpit Showing Performance Indicators and Alerts

Figure 2: MRP Cockpit Displ ay of Li st-of-Material Shortages

7/23/2019 32756_GB_28555_4MFG_en



8

Figure 3: MRP Cockpit Displ ay of Detailed Supply-and-Demand Inform ation fo r Selected

Material

Figure 4: MRP Cockpit Display of Pre-Evaluated Solutions for Critical Situations

7/23/2019 32756_GB_28555_4MFG_en



9

Road Map and Outlook

Addi tional MRP features available in SAP HANA: The SAP ERP

application, with a 20-year history of continuous improvements, supports a

large number of business processes for a wide range of industries. The MRP

functions enabled by SAP HANA, already faster, cover many but not all

these business processes. Anticipated MRP functions in SAP HANA willenable planning of additional material types in SAP HANA.

Performance optimization: Additional functions such as product

configuration will run directly in SAP HANA in a nondisruptive way.

Insight and decision support f or planners: In the next phases, MRP will

contain what-if analysis and decision-support elements. Next phases may

also include support for subcontracting or make-or-buy decisions. These

enhancements will show planners clearer pictures for better decision mak-

ing.

Addi ti onal apps and features in SAP Smart Business for MRP: Newfeatures will continuously enlarge and enrich the set of apps to cover

additional aspects such as a dedicated analysis of production orders and

production requirements.

Product Landscape Requirements

SAP ERP 6.0 with SAP enhancement package 7 SPS 05 or above

(SAP Smart Business for MRP requires SP 3.)

SAP Fiori for ERP 1.0 SPS 03

SAP NetWeaver® 7.40

How to Get Started

For information on how to get started, see the business function

documentation in Service Marketplace and SAP help portal (log-in required).

http://help.sap.com/erp2005_ehp_07/helpdata/en/81/9f1a74147f4a9089132288e7c6ab3c/content.htm?frameset=/en/46/4afb86d8d551ede10000000a114a6b/frameset.htm


http://service.sap.com/sap/support/notes/1955289



http://help.sap.com/fiori_bs2013/helpdata/en/83/abb152784afb27e10000000a44176d/content.htm?frameset=/en/83/abb152784afb27e10000000a44176d/frameset.htm&current_toc=/en/3b/b24f52f10a5c64e10000000a423f68/plain.htm&node_id=138&show_children=true%23jump138







7/23/2019 32756_GB_28555_4MFG_en



10

Efficient Manufacturing Operations

Global Plant Performance Management

Business Practices TodayMost manufacturers manually calculate plant performance indicators and

capture weekly or monthly in data warehouses and legacy systems for

retrospective performance analysis.

This means that deviations from planned performance cannot be detected

early enough to prevent unplanned downtime. Side effects include waste

and product quality, order fill rates, and ultimately, return on the production

assets.

Ambi tion

Plants need an integrated system that connects the corporate “top-floor”

system with the shop-floor system to deliver responsive manufacturing for

achieving and sustaining optimal performance.

Real-time visibility into plant operations and continuous performance

analysis across assets and plants are strategic to reducing manufacturing

cost. This visibility also helps increase the return on assets while optimizing

order fill rates, product quality, and resource usage.

Intuitive user interfaces on stationary and mobile devices and machine-to-

machine connectivity increase acceptance on the shop floor, improve data

quality, and lay the foundation for effective performance analysis andcorrective action.

Challenges

Identifying and resolving performance bottlenecks on the shop floor is

challenging, especially in a manufacturing environment without a

comprehensive system to understand and analyze losses in operational

performance:

• No real-time performance management platform can run without the

ability to continuously gather, compare, analyze, and visualize

production data per plant and across multiple production sites.

• Decentralized production data capturing and batch-driven data

consolidation disguise machine maintenance issues and production

bottlenecks.

• Manual capturing of root causes for downtime, efficiency loss, and

poor quality is tedious, error prone, and frustrating. Postmortems are

interesting, but today manufacturers focus on anticipating and

preventing incidents.

SAP ERP andSAP HANA:Plant systemOne solution that integratesthe corporate system withthe shop-floor system

7/23/2019 32756_GB_28555_4MFG_en



11

• Unplanned downtime, suboptimal performance, and poor product

quality contribute to decreased asset usage. Poor product yields and

quality result in increased costs of goods sold and, ultimately, late

orders and reduced responsiveness to customers.

• Production event data stored in disconnected systems on machine

and plant levels make it difficult to consolidate data for near-timeroot-cause analysis.

Business Innovation with SAP HANA

The SAP Overall Equipment Effectiveness Management (SAP OEE

Management) application monitors the effectiveness of manufacturing

processes by capturing information on manufacturing productivity loss. The

application categorizes this information into availability, performance, and

quality impacts, and then distills it into a system of KPIs and underlying

performance data. This systemization builds the foundation to measure

manufacturing performance, identify optimization potential, collaborate on

corrective action, and implement resolutions in real time.

Key features of SAP OEE Management include:

• Real-time combination of quantitative performance metrics with

target values, qualitative context, and potential reasons for

performance issues

• Combination of plant performance with business context for

understanding broader implications of substandard plant

performance

• Facilitation of corrective action on the plant level and across plants

for the entire enterprise

• Enablement of performance improvements beyond the plant level,

including supply chain, sustainability, financials, and customer

relationship

• Storage for a broad set of granular manufacturing data for detailed

analysis, complex production modeling, and predictive analytics

including regression and heuristics

This data becomes the foundation for plant operations that takes corrective

action before actual quality of performance issues occur. Check figure 5 for

a sample report from SAP HANA of analysis of manufacturing KPIs using

drill-down and filtering functions.

7/23/2019 32756_GB_28555_4MFG_en



12

Figure 5: Report from SAP HANA Analyzing Manufacturing KPIs with Multilevel Drill-

Down and Filtering

Innovation in Detail with SAP HANAState-of-the-art reporting: Intuitive reports (built with SAP UI5) support

analysis of operational performance.

Global plant performance comparison: SAP HANA provides the ability to

compare performance across the global manufacturing organization

(multiple regions, countries, and plants). Data from multiple shop-floor

systems can be analyzed in a single report.

Real-time manufacturing analytics : SAP HANA enables the capacity to

locate losses in performance, identify root causes by drilling down to the line

item data, and fix the problem.

Integrated solution: SAP OEE Management provides integration of the

manufacturing shop floor, the corporate SAP ERP application, and SAP

HANA. This integration establishes a single source for all production

planning, execution, and analysis processes.

Automat ion support : SAP HANA enables immediate analysis of high-

frequency and large-volume manufacturing data received from automated

systems on the shop floor.

Bidirectional top-floor to shop-floor integration: A download of a

production order or process order to the SAP Manufacturing Integration and

Intelligence (SAP MII) application collects information for confirmations andpropagation of confirmations back to SAP ERP.

See figure 6 for a comprehensive solution approach from SAP.

7/23/2019 32756_GB_28555_4MFG_en



13

Figure 6: Comprehensive Solution Approach

Benefits

Universally accepted metrics: Overall equipment effectiveness is an

industry-wide standard to measure and benchmark plant performance. This

KPI system provides a holistic picture of the manufacturing operations.

High-speed manufacturing analytics: Large volumes of manufacturing

data that used to take days to analyze can now be understood with a few

clicks.

Extensibility: Customers can easily extend SAP OEE Management with

their specific reports that just plug into the standard reports.

Personalization: Individual users can personalize reports in SAP OEE

Management using the variant feature. Users can also analyze reports with

other reporting tools like SAP BusinessObjects Analysis, edition for Microsoft

Office.

Enterprise-wide data analysis: In combination with SAP ERP and the shop

floor, SAP OEE Management supports distributed and detailed plant-level

analysis, as well as central, consolidated global analysis.

Shop-floor acceptance: Shop-floor operators now have a highly intuitive

user experience for data entry and real-time analysis of SAP OEE

Management, which fosters acceptance and bottom-up processoptimization.

7/23/2019 32756_GB_28555_4MFG_en



14

Lean and intuiti ve solution: SAP OEE Management, a lightweight solution,

can function in discrete and process manufacturing industries.

Paperless shop floo r:

Data collection on the shop floor is completely

automated with integrated confirmation from SAP ERP and replication from

SAP HANA, which helps eliminate paper from the shop floor.

Full cycle of continuous improvement: SAP OEE Management

orchestrates manufacturing execution and manufacturing performance

analysis. See details of the software’s user interface in figure 7.

Figure 7: Operator-Grade User Interface of SAP® OEE Management with SAP HANA

Road Map and Outlook

The intended road map of SAP OEE Management working with SAP HANA

includes:

• Translating operational performance into financial performance by

providing cost-based reports in SAP HANA

• Integration with the quality management component in SAP ERP:

losses incurred by rejections in the quality department will be

integrated into SAP OEE Management

•

Integration with the plant maintenance module: real-timenotifications will be integrated with SAP OEE Management for

analysis in SAP HANA

• Integration with the enterprise tag catalog and self-service

composition environment in SAP MII

PaperlessShop FloorNo more use of paperto track operations(based on an SAP cus-tomer proof of conceptfor an implementationproject)

7/23/2019 32756_GB_28555_4MFG_en



15

Product Landscape Requirements

• On-premise application based on SAP NetWeaver 7.30 or higher

• SAP ERP 6.0 or above for a configuration for SAP OEE

Management

• SAP Fiori for SAP ERP 1.0 or above

• SAP HANA 1.0 or above for enterprise data warehouse for SAP

OEE Management

• Analytics foundation 1.0 or above for SAP HANA

• SAP MII 14.0 for plant connectivity and integration with SAP ERP

Central Component (SAP ERP)

• SAP Plant Connectivity 2.3 for automated data gathering

Figure 8: Product Landscape in SAP OEE Management with SAP HANA

Watch the speed demo.

Find out more in the RKT Learning Map.

* Source: SAP internal lab tests as of Sept. 2013. All performance KPIs are preliminary. SAP internal lab measurements and productive customer

performance can deviate.

http://demo.tdc.sap.com/SpeedDemo/fe7fe7675a31bc9a/



https://websmp110.sap-ag.de/~form/handler?_APP=00200682500000002672&_EVENT=DISPLAY&_SCENARIO=&_HIER_KEY=501100035870000011088&_HIER_KEY=601100035870000224070&_HIER_KEY=601100035870000254918&





7/23/2019 32756_GB_28555_4MFG_en


www.sap.com

CMP28555 (14/08)

© 2014 SAP AG or an SAP affiliate company. 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 AGor an SAP aff iliate company. SAP and other SAP products andservices mentioned herein as well as their respective logos are

trademarks or registered trademarks of SAP AG (or an SAPaffiliate company) in Germany and other countries. Please seehttp://www.sap.com/corporate-en/legal/copyright/index.epx#tradema

for additional trademark information and not ices. Some software

products marketed by SAP AG and its distributors contain proprietarysoftware components of other software vendors.

National product specifications may vary.

These materials are provided by SAP AG or an SAP affiliate companfor informational purposes only, without representation or warranty of

any kind, and SAP AG or its affiliated companies shall not be liable fo

errors or omissions with respect to the materials. The only warrantiesfor SAP AG or SAP affiliate company products and services are thosthat are set forth in the express warranty statements accompanying

such products and services, if any. Nothing herein should beconstrued as constituting an additional warranty.

In particular, SAP AG or its affiliated companies have no obligation topursue any course of business outlined in this document or any

related presentation, or to develop or release any functionality

mentioned therein. This document, or any related presentation, andSAP AG’s or it s affiliated companies’ strategy and possible futuredevelopments, products, and/or platform directions and functionality

are all subject to change and may be changed by SAP AG or itsaffiliated companies at any time for any reason without notice. Theinformation in this document is not a commitment, promise, or legal

obligation to deliver any material, code, or functionality. All forward-

looking statements are subject to various risks and uncertainties thatcould cause actual results to differ materially from expectations.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and t heyshould not be relied upon in making purchasing decisions.

http://www.sap.com/corporate-en/legal/copyright/index.epx%23trademark

http://www.sap.com/corporate-en/legal/copyright/index.epx%23trademark

Documents

32756_GB_28555_4MFG_en