SAP Plastics Overview

SAP Solutions for the Plastics Industry Enabling Business Transformation

SAP IBU Chemicals

September 2011

2011 SAP AG. All rights reserved. 2

Plastics Industry and Specific Requirements

SAP Background

SAP Value Proposition for the Plastics Industry

Partner Landscape

Customer Success Stories

Agenda


Plastics Industry

The plastics industry is one of the largest manufacturing

industries in the United States, accounting for more than US

$374 billion in annual shipments

The industry directly employs more than 1.1 million people

Plastics play an indispensable role in a wide variety of markets,

including packaging, building & construction, transportation,

consumer & institutional products, furniture and furnishings,

electrical & electronic components, adhesives, medical &

health care, industrial machinery, automotive, and others

Source: Plastics Industry Trade Association


Plastics Industry Landscape

Acetal- Acrylics ABS Alkyds Alloys/Blends

Cellulosics Diallyl Phthalates

Engineering Plastics Epoxies

Fluoropolymers Liquid Crystals

Melamine Nitrile Resins

Nylon Phenolics

Polyamide-Imide Polycarbonate Polyethylene Polyimides

Polypropylene Polystyrene

Polyurethanes PVC

Silicones TPO/TPE/TPU

Extruders

Injection Molding Machines Blow molding

Compression Presses Transfer Presses

Thermoforming Machines Molds / Dies

Auxiliary Equipment Liquid Dispensing Systems

Impregnators Plotters

Test & Measurements Components

Process Control Equipment

Accelerators Antioxidants

Antistats Blowing agents

Colorants Conductive

EMI shielding Fillers

Flame retardants Inhibitors

Lubricants Plasticizers Stabilizers

RESINS

ADDITIVES

MACHINERY

SUPPLIERS

DISTRIBUTORS

COMPOUNDERS

Injection Molding

Extrusion

Blow Molding

Blown / Cast Film

Coaters

Rotational Molding

Pultrusion

Thermoforming

Calandering

Compression Molding

Reaction Molding

Transfer Molding

PROCESSORS

Agricultural Appliances

Transportation Auto Packaging

Building and Construction Computers / Electronics / Electrical

Geotechnical Structures Telecommunication Medical / Health care Adhesives / Coatings

Furniture Industrial machinery

Fast Foods Consumer & Institutional Products

Recreation / Toys Rope & Cordage

Textile / Synthetic Fibers

FINAL GOODS

Custom Captive

WHOLESALE

TRADE

DECORATING

& ASSEMBLY

RECYCLING


Plastics Industry Requirements

The industry serves major original equipment manufacturers (OEM) as well as a

direct market for finished items

OEM customers belong to many verticals: automotive, home appliances,

electronics, communication, and lawn and garden. The go-to-market approach of

many of these segments is so aggressive that the component supplier is

expected to meet very short response times and high quality targets (from design

of mold to delivery)

Mold manufacturing and first-article approvals must be planned along with order

delivery management, requiring implementation of project management

methodologies and tools

Due to persistent price and margin pressure particularly for smaller

organizations strong efforts are required to maximize yield and throughput and

to minimize off-spec product and variability

Tight integration between plant-floor and business systems is required

Net working capital must be reduced through improved management of regrind


Plastics Industry Requirements - Continued

Production waste management strong requirements to schedule regrind, tool

changes, and downtime

Product profitability accurate cost calculations at the SKU level are necessary

and are to consider material content and labor

Tight integration between CAD/CAM systems and business application systems

(PlantStar and Matec systems)

With multiple choices in mold management, product costing and quotation

preparation requires a flexible approach that is controllable at the production

stage

Typically, manufacturing locations are distributed requiring close control of

production and delivery (including kits) with the ultimate goal of ensuring on-time

delivery with minimum inventory levels and costs of logistics

With limited budgets the industrys expectations of the business solution is high

in terms of time to implement and pricing


State of Plastics Industry

Manufacturing Methods

Job Shop

Repetitive

Management Control

Product Pricing & Low Margins

Material Usage

Delivery Management

Organizational Pressures

Cost Control

Delivery Response Time

Flexible Production Systems

IT challenges

Diverse systems

Lack of industry specific functionalities in current software

Limited budget and resource constraints


What Keeps You Awake At Night?

Shortened response time? - design of mold to delivery

Material management issues?

production planning based on family molds

production waste

recycling delivery management/kit supplies

Product costing and quotation - controllable at production stage?

Control mechanism - synchronizing kit parts production/delivery across multiple

plants?

Integration issues - Machine monitoring systems & business application(s)?


Software Requirements of the Plastics Industry

Provide a fast time to value

Affordable

Lower operating costs

Can be managed with a limited IT staff

Is easy to use and maintain

Leverage industry standards and best practices

Deliver market-leading functionality



SAP Background


Partner Landscape


Agenda


SAP Today

53,800+ SAP employees worldwide

120 countries

25 industries

37 languages

75 country offices

1,200+ services partners worldwide


SAP's Performance in the Last 10 Years

Revenue* Operating income* Employees

CAGR total revenues*: 5.5%

CAGR operating income*: 12.7%

24,480

28,410 28,797 29,610

32,205

35,873

2000 2001 2002 2003 2004 2005

6,265

7,341 7,413 7,025

7,514

8,509

2006

39,355

9,393

2007

44,023

10,242

2008

11,565

51,544

10,671

47,578

2,578 2,732 2,840 2,640

803 1,312

1,626 1,724

2,018

2,337

2009

*US GAAP


SAP Customers Within Global 500

SAP customer

Global 500 comp

CP

Re

tail

A&

D

Au

to

ME

&C

HT

Ch

em

Mil

l

Min

ing

O&

G

Lif

e S

c.

Ba

nk

Wh

ole

sa

le

Ins

Me

dia

Se

rv.P

Te

lco

Uti

l

CP / Retail Discrete Process Financial

Services Services

# c

om

pan

ies

0

10

20

30

40

50

60

70

93%

47% 68%

88%

94%

77% 100%

100%

89%

100%

88%

100%

59%

49%

56%

72% 86%

73%

n.b. the Public Sector is not covered by the Global 500

Source: Fortune Magazine, Global 500, SAP Analysis


Over 65% of the SAP solutions for midsize companies were implemented within 13 weeks

0

10-11 weeks

12-13 weeks

> 14 weeks

10

20

30 25%

40%

35% 40

SAP can be quickly Implemented Predictable Implementation Times


Solution SAP Position Source

SAP ERP #1, Market leader Gartner, META

SAP CRM #1, Market leader Gartner, AMR

SAP FI #1, Market leader IDC

SAP HR #1, Market leader Forrester, AMR

SAP PLM #1, Market leader IDC

SAP SRM #1, Market leader AMR

SAP SCM #1, Market leader Gartner, AMR

SAP Portal Suite Leader META

Order Fulfillment #1, Market leader Forrester

SAP SEM #1, Market leader Gartner

SAP BI Suite leader META

Workforce Mgmt Suite leader, #2 overall Forrester

SAP Market Position


SAP Chemical Customer Base Growth: 2001 2010

1,881 new customers added in last 9 years with increasing velocity as the industry returns to growth

Customer base

expanding in both

weak and strong

markets

New customer

growth consistent

and sustained

Significant and well-

known brands added

each year

Strong chemical

base drives ongoing

development

1,078

2,959

93

156

189

73

2001 2002 2003 2004 2005

Despite market consolidation 1,881 new

customers added

2006

243

2007

221

2008

366

2009

260

280

2010


Strong SAP Presence in your Value Chain

Customers and partners find synergies as they interact across the value chain

Consumer

Electronics

Healthcare

Consumer

Products

Coatings

& Resins

CMs/EMS/O

DM

Plastics


Typical Contract Manufacturing

Key Challenges Today

Eng, Legal,

Finance,

HR

IT

Sales,

Marketing &

Service

Non-Optimal Customer Management

Limited view of global customer interactions

Manual / disconnected quotes management

Long Quote to Order to Cash process (ie. mold prep lead time)

Manual RMA process

Insufficient customer service

Supply

Chain Ops

Inadequate Visibility to Risk and Liability

Limited Visibility, Control in Mfg and Global Supply Chain

Inaccurate, insufficient and/or Fragmented Supply chain information

Manual / excel based planning, scheduling, tracking OEE and S&OP (ie Customer Supply)

Manual, slow, error prone ECN management and BOM synchronization

Infrequent, manual manufacturing data updates impacting data latency and accuracy

Inefficient quality management, enforcement and validation

Increasing compliance requirements: CFR Part 11, Reach, WEEE, Global Trade, etc

Limited visibility to end of life liability especially in long term

Disconnected PLM process impacting NPDI, TTM and innovation cycle time

Difficult to manage global governance and risk

High number of Quality Returns (RMA)

HQ

Disconnected Processes and Systems Limiting Growth

Lack of integration, automation and communication between fragmented systems & entities

Limited data sync between functional areas & geographies

Limited standardization: business process and systems

Prolific use of excel

Manual , disconnected AR payment processes driving high DSO and inaccuracies

Raw Materials

Production

Difficulty w/

Financial

Management &

Control

Difficult to measure margin

Long close times tying fragmented data to GL

Difficult to manage multiple legal and reporting entities

Limited ability to forecast cash flow, compare actuals to budget, and conduct global money management

Data availability, latency and quality impacting ability to conduct analysis, timely consolidation and decision support


IT

Supply

Chain

Ops

Eng, Legal,

Finance,

HR

HQ Sales &

Marketing

Automated, real-time cost and margin visibility

Financial data automatically tied to GL in realtime

Data availability reduces latency improving and data quality & analysis

Best practices and integrated processes for managing multiple legal and reporting entities

Best practices and tools for financial planning, consolidation, forecast and global money management

Unified WW compliance approach: CFR Part 11, Reach, WEEE, Global Trade, IFRS, Sustainability, etc

EOL inventory and financial planning

Collaborative PLM speeds up NPDI and TTM

Out of the box best practices for global governance and risk

Improved visibility to accurate data and advanced warning to potential challenges (ie quality)

Contract Manufacturers

Objectives Uniquely Enabled by SAP

Supply

Chain Ops

Risk Mitigation

and Liability

Control

Global Lean Operations, Supply Chain Visibility & Control

Real -time availability of supply chain information

Automated quality management, enforcement and validation

Automated manufacturing data

3600 view of global customer interactions

Integrated Inquiry-Quote-Order-Cash process

Systematized RMA process

Improved speed, flexibility and customer service

Integrated, End-to-End Business Process and Data Visibility

Single data repository for all business processes and geographies

Real-time, synchronized data availability

Standardized business process based on best practices

Automated, faster, more accurate business transactions

Financial

Management

& Control

Integrated ECN management and BOM synchronization

Exception based and systematized planning, scheduling, tracking, OEE and S&

Integrated, End-to-End Business Process

and Data Visibility

Ease of Customer Service


SAP Overall R&D Investment Impact into Solutions

Importantly, the stronger margin does not appear to becoming

at the expense of future growth R&D headcount is up Q/Q and

Y/Y and S&M headcount is down marginally quarter-on-quarter

and up year-on-year both indicating that capacity and product

investment are not being curtailed.

SalomonSmithBarney on SAP

SAP Best Practices business scenarios

Global Trade Management & Services

Manufacturing Intelligence & Dashboards

Configurable Product Planning & Execution

Compliance; EH&S, Environmental Compliance, REACH, GTS, RoHS/WEEE, Carbon Impact

Outsource Manufacturing & Multi-Tiered Inventory Solution for the Process Industry

Contract Manufacturing

Sustainability Performance Management

Enterprise Asset Management

Multi-Level ATP, CTP

RFID & Logistics Tracking

Hijunka Scheduling Lean Sequencing

MES Integration

Service Parts Planning & Management

Quality Management

Mix mode of batch & discrete business processes

Batch Management & Automatic Determination

Regulatory compliance (SOX, Global Trade)

Overall R&D Investment

$ Millions

363

572705

857 866 910951

1,0251,150

1,250

1,450

1,750

1,900

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


SAP Business All-in-One: Comprehensive, Flexible, and

Integrated Business Software

Best fit for companies looking for the most integrated and comprehensive industry solution to power their business end-to-end

What It Offers

Comprehensive functionality Broad and deep business functionality that leverages industry-specific best practices

Flexibility Tailored to match your business needs

Scalability Solutions that grow and adapt as your business needs change

Reliability Best-in-class, precision-engineered software leveraging SAPs 35+ years of industry leadership in business applications


The SAP Business All-in-One Solution Single, comprehensive, integrated end-to-end industry solution

SAP

Business

All-in-One

Solution

Implementation

SAP Business All-in-One

+

Fast,

proven,

and reliable

Lower

Risk

Reduced

Timeline

Fast ROI

SAP ERP SAPs next-generation ERP solution

Powered by SAP NetWeaver technology platform

Designed for all industries

Fully integrated within the SAP Business Suite

SAP Best Practices Best-in-class industry expertise in SAP ERP

Predefined end-to-end processes

Industry-specific documentation

Preconfigured system

+ Services

Deep industry knowledge

Focus on value creation and risk reduction

Delivery excellence


Best Practices, Pre-configuration & Customer Benchmarks Influencing Factors

Industry Best Practices Packages that provide preconfigured

business processes, documentation and project accelerators to streamline customer implementations

Configurable and extensible

Reusable documentation and configuration which can be adapted to specific needs

Preconfigured, ready-to-use business scenarios based on SAPs deep industry experience with > 40,000 implementations

Tools, content, and methodology to reduce costs compared to traditional approaches

Have a working, fully-documented prototype in only a few days right out of the box

Industry Benchmarks SAP captures KPIs from thousands of

companies (SAP CUSTOMERS AND NON-CUSTOMERS).

SAP surveys companies enabling processes and practices.

Quantifiable proof of which practices are in fact the best.

We have over 3,200 benchmarking surveys in our inventory, making it one of the largest in the world.

This is an important part of SAPs intellectual property.

This is more than making simple enhancements to an ERP system. Only SAP has the scientific,

quantifiable indications of best practices from our world class benchmarking database. How

important is it for your firm to adopt industry specific solutions that streamline your business

processes by assimilating best practices?



SAP Background


Partner Landscape


Agenda


Typical Challenges in the Plastics Industry Ecosystem The Need for Continuous Growth in Revenues and Productivity Drives Dynamics in the

Plastics Industry

Productivity and Efficiency

Foundation

for Increased

Operating Profits

Differentiation

and Innovation Foundation for

Increased Revenues

Markets rebound, strong growth

New opportunities in eastern

Europe, Latin America, and Asia

Globalization of trade, production,

and competition

Enhanced customer service with

proximity to customers

Market

Shortened product life cycles;

demand volatility

Collaborative development with

customers in virtual teams

Price pressure product

manufacturing

Complicated engineering change

process

Product Innovation

High price pressure and customer

power (conglomerates)

High raw-material prices due to

strong demand for crude and oil

High volatility in crude and raw

material prices

Redundant manufacturing

practices

Price and Margin Pressure

Higher productivity in a corporation

wide production processes

Optimization and integration of

global business processes

Optimized production planning and

production operations

Optimized supply chain planning

and execution

Optimized Processes

Many small and midsize companies

Emerging markets and competition in Asia

Competition

Increased regulatory burden

(SOX and FDA, CH Part 21)

Global product, transportation,

and import/export safety

requirements

Regulatory Requirements


What Does This Mean for Your Business?

Typical CEO questions

How do I ensure successful program launches on time and on budget?

How do I facilitate collaborative engineering change management between

suppliers & customers?

How do I improve information sharing with customers seamlessly?

How do I increase supply chain visibility?

How do I optimize product, customer and service portfolio profitability?

How do I determine optimal and visible inventory targets across the supply

chain?

How do I drive successful planning and replenishment in a dynamic and

ongoing manner?

How do I manage operating costs?


Integrated Software Solution Provide Best Practices for

Managing These Challenges

Productivity

and Efficiency Foundation

for Increased

Operating Profits

Differentiation

and Innovation Foundation for

Increased Revenues

More transparency enhances

decision support

Globally harmonized market

approach

Global coordination of supply and

demand

Manage end-of-life products better

Market

Reduced development times and

avoidance of duplication efforts from

knowledge management; visibility

and distribution across the entire

company

Product Innovation

Global purchasing

Eliminating redundancy in

processes and systems

Cost transparency as a basis for

consolidation

Reduction of TCO through

consolidation of IT systems

Price Pressure

Logistics collaboration and

automation

Optimized production planning,

execution, and asset management

Lean and agile processes

Streamlined engineering change

process for higher agility

Optimized Processes

360-degree view of the customer

Availability of specific information across regions, market segments, products, and competitors

Leverage multi-modal cross-geographic manufacturing

Competition

Fast close

Cost transparency at all levels of

decision making

Adaptive response to structural

or operational changes

Corporate Compliance and Visibility

The dynamics in the business environment must be strongly aligned with the IT strategy and represent a

major challenge to the adaptability and sustainability of IT architectures and solutions


SAP Experience in the Plastics Industry

Hundreds of plastics industry companies

run SAP software across all plastics

industry subsegments

Injection molders

Blow molders

Thermoformers

Extruders

Compounders

Plastic materials and resins

Sample customers

Ace Plastics

Amcor

AZ Electronic Materials

Basell

Bespak

Colder Products

DSM Engineered Plastics

Deerfield Plastics

Entegris

ICI Polyurethanes Group

Master Molds

Nampac

Nilkamal Plastics

Plastal

Plastek Group

Plastipak

Resolution Performance Prod

Rexam Plastics

SeaquistPerfect

Sheffield Plastics

Thermotech

Toray Plastics

Veka


Injection Molding Companies Serving Many Market

Segments

Injection molding companies

serving many market segments

Packaging

Pharmaceutical

Medical devices

Health Care

Consumer products

Food and beverage

Aerospace and defense

Automotive

High tech

Industrial

Personal care

Sample customers

Ace Plastics

AKsys

Amcor

Behr

Colder Products

Geiger Technik

Grammer

Karl Popp

Manner Plastics

Master Molds

Mennekes

Nilkamal Plastics

Plastal

Plastek Group

Plastic Omnium

Plastipak

Pressotechnik

Rexam Plastics

SeaquistPerfect

Spaeh Group

Thermotech

Valeo

Yapp Plastic Parts


SAP Best Practices for Chemicals / EHSM

Preconfigured Industry Templates

SAP ERP

Partner Packaged Services

Implementation Services

+

+

=

SAP Business All-in-One Solutions for Paints, Coatings and Inks

SAP implementation with defined scope and price

Available from SAP and qualified partners

SAPs Unique Approach to Industry-Specific, Low-Cost, and Low-Risk Implementation


SAPs Solution for the Plastics Industry

Drive Efficient HR Operations Talent Management Core HR & Payroll

Human Resources

Financial Value Chain Treasury and Financial Risk

Management

Commodity Risk Management Financial Shared-Services

Framework

Sustainability Strategy Manage Risk and Compliance for

Finance

Manage Financial Performance Accelerated Financial Close

Finance

Continuous Product and Service Innovation

Integrated Product Development REACH Compliance and Product

Stewardship

Product Development

Insight and Analytics Enterprise Information Management IT Security and Compliance Business Integration IT Operational and Service Excellence

Information Technology

Price and Margin Management E-Commerce Sales Force Management Customer Service Contact Center

Sales, Marketing and Service

Collaborative Demand and Supply Planning

Logistics and Fulfillment Management Manufacturing Network Planning and

Execution

Inventory Optimization

Supply Chain

Designing, Building and Commissioning of Assets

Manufacturing Visibility and Performance Optimized Asset Operations and

Maintenance

Efficient Manufacturing Operations Operational Risk Management Energy and Environmental Resource

Management

Manufacturing

Extended Procurement Spend Performance Management

and Related Services

Sourcing and Contract Management

Procurement Sustainability

Business

Network Transformation

Human Resources

Sales

Supply Chain

Product

Development

Finance


Manufacturing

Procurement


Best Practices Content at help.sap.com

http://help.sap.com/bp/industry/chemicals/


SAP Best Practices for the Plastics Industry Scenario Exmples

Stock Handling: Scrap and Blocked Stock (131)

Time Recording (211)

Overhaul Management (886)

Refurbishment Management (887)

Work Clearance Management (888)

Bulk Manufacturing (without PI Sheet) (907)

Bulk Manufacturing (with PI Sheet and SAP ODA

Integration) (908)

Make-to-Stock (Process Industry) with Warehouse

Management (909)

Make to Order (Process Industry) (910)

Multiple Product Campaign Run including MQC (911)

Active Ingredient Processing (912)

Blending (913)

Repackaging (914)

Relabeling (915)

Storage Tank Management (916)

Subcontracting (External) (918)

Operational Maintenance (929)

Preventive Maintenance (930)

Investment Management in Plant Maintenance (932)

Engineering Change Management (934)

Subcontracting (Internal) (973)

Repetitive Manufacturing with QM (992)

Process Order with Co-Product and QM (993)

Work-in-Process (WIP) Batch (996)

Manufacturing

Procurement

Quotation for Procurement (128)

Consumable Purchasing (129)

Procurement without QM (130)

Procurement Contract (133)

Return to Vendor (136)

Procurement and Consumption of Consigned

Inventory (139)

Procurement of Batch-Managed Stock Materials (901)

Procurement of Warehouse-Managed Stock Materials

(902)

Procurement of Pipeline Materials (903)

Procurement of External Services (904)

Quality Management in Procurement (905)

Supply Chain

Lean Warehouse Management (124)

Stock Transfer with Delivery (134)

Stock Transfer without Delivery (135)

Physical Inventory / Inventory Count and Adjustment

(137)

SAP ERP Reports for Logistics (222)

Supply and Demand Planning (900)

Tank Trailer Filling (919)

Outbound Logistics (923)

Totes Handling (927)

Vendor Managed Inventory (928)

Product Development

Internal Order R&D Planning (177)

Internal Order R&D - Actual (185) Sustainability

Business

Network Transformation

Human Resources

Sales

Supply Chain

Product

Development

Finance


Manufacturing

Procurement


Scenario 900 Supply & Demand Planning

MRP = Material Requirements Planning

Pro

du

cti

on

Pla

nn

er

Str

ate

gic

Pla

nn

er

Schedule Copy Mgmt S003 > S999

Generate Planning Hierarchy

master data

Calculate proportional factors using actual data

Set Status of Background

Job for Statistical Forecast

Check sales history in

planning type

Schedule background

job for statistic forecast

Change local plan in flexible

planning

Schedule Planning Job

for Fixing Local Plan

Create global plan

Schedule Planning Job for Fixing Global Plan and

Creation of Consolidated Sales Data

Schedule copy mgmt S999 S076

Create rough cut plan

Disaggregate planning data

Transfer planning data to

demand management

Long term planning

Capacity leveling

Set up Purchasing info data from long term planning

Long term planning Material analysis

Transfer Demands to

Material Requirements

Planning

MRP run

Find capacity overloads

Analyze Overall capacity

loads

Capacity leveling

Does S003 contain sales data?

Create Demo Data Using Upload File

Yes

No

Reset Generation Time Stamp

Eve

nt

IT

Ad

min

istr

ato

r (P

rofe

ss

ion

al

Use

r)


Scenario 902 Procurement of Warehouse Managed Stock Materials

MRP = Material Requirements Planning, RFQ = Request for Quotation, GR/IR = Goods Receipt/Invoice Receipt, PPV = Purchase Price Variance

Yes

PO Approval required?

Create Purchase Requisition

MRP Generated Create Purchase Requisition

GR/IR PPV Small differences Use tax payable Vendor

Invoice Receipt by Line Item

Purchase Order (PO)

Print Purchase Order

Stock GR/IR PPV

Approve Purchase Order

No Send Purchase Order (to Vendor)

Receive Goods in Restricted Stock

Process Quality certificate

Usage Decision on inspection lot

Accept

Display the Bin Stock of the Material

Confirm Transfer Order

Create Transfer Order

Yes

Pu

rch

as

ing

M

an

ag

er

Bu

ye

r A

cc

ou

nts

P

aya

ble

W

are

ho

us

e

Cle

rk

Eve

nt

Qu

ali

ty

Sp

ec

iali

st


Scenario 909 Make-to-Stock (Process Industry) with Warehouse Management

Create inspection lot

manually

Results Recording Worklist

Record Usage Decision

Confirm Process Order

Display Storage Bin

Create Transfer Order

Confirm Transfer Order

Convert Bulk Planned Order and Release

Process Order

MRP Run?

Create Bulk Process Order

for CH-3200

No

Yes

Quality Notifications

Defect Recording

Period End Closing General Plant (181)

Post-Process Control for GranuSAP, Blue

Putaway of Produced Material

Sh

op

Flo

or

Sp

ec

iali

st

Qu

ali

ty S

pe

cia

lis

t W

are

-ho

us

e

Cle

rk

Pro

du

cti

on

P

lan

ne

r E

ve

nt


Scenario 918 Subcontracting (External)

MRP = Material Requirements Planning, PO = Purchase Order, GR/IR = Goods Receipt/Invoice Receipt, PPV = Purchase Price Variance

Create Purchase

Order

Approval of Purchase

Order (Optional)

Stock Transfer for

Subcontractor without Delivery

Stock Transfer for

Subcontractor with

Delivery

Processing Deliveries

and Picking

Goods Receipt for Subcontract

Order (without WM)

Results Recording

Record Usage

Decision

Invoice Verification

Pu

rch

-a

se

r

Pu

rch

-a

se

r M

an

ag

er

Pu

rch

as

er

Ch

em

ica

ls

Wa

re-h

ou

se

C

lerk

Q

ua

lity

S

pe

cia

lis

t

Ac

co

un

ts

Pa

ya

ble

A

cc

ou

nt-

an

t


Scenario 918 Subcontracting (External)

Create Planned

Independent Requirement

Material Requirements Planning at Plant Level

Evaluation of the

Stock/Requirement List

Initial Stock Posting

Create Process

Order

Release Process

Order

Create PO for External

Processing with Material

Number

(Purchasing Manager) Release

Purchase Order

(Optional)

(Purchaser Chemicals)

Create Outbound Delivery Request

Pick Confirmation

(Optional)

Generate Transfer

Order (Optional)

Confirm Transfer

Order (Optional)

Post Goods Issue to

Subcontractor Transfer

Stock

Stock Overview (Optional)

Posting In-time

Consumption of

Components

Receiving a Subcontract

Purchase Order Goods Receipt

(Accountant) Enter Invoice

(Manager) Release Blocked Invoices

Results Recording

Record Usage

Decision

Derivation Monitor

(Optional)

Process Order

Confirmation

Str

a-

teg

ic

Pla

n-

ne

r

Pro

du

c-t

ion

P

lan

-n

er

Wa

reh

ou

se

Cle

rk

Pro

du

c-

tio

n

Pla

nn

er

Sh

op

fl

oo

r S

pe

c-

iali

st

Pu

r-ch

aser

Acc-

ou

nts

P

ayab

le

Qu

ali

ty

Sp

ecia

l-is

t

En

gin

eeri

ng

S

pe

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st


Scenario 929 Operational Maintenance

Ch

em

ica

ls M

ain

ten

an

ce

Sp

ec

iali

st

Pu

rch

as

ing

M

an

ag

er

Se

rvic

e E

mp

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nt

Maintenance Notification

Entering a Malfunction

Report

Entering a Maintenance

Order

Confirming a Maintenance

Order

Goods Issue to Maintenance

Order

Create Purchase Order from Purchase

Requisition in Maintenance Order

for External Services

Create Purchase Order from Purchase

Requisition in Maintenance Order

for Non-Stock Material

Approval of Purchase

Orders

Goods Receipt to Purchase

Order

Maintain a Service Entry

Sheet

Approve the Service Entry

Sheet

Invoice Receipt to Purchase

Order

Show Costs on Maintenance

Order

Complete the tasks in the Notification

Technically Completing a Maintenance

Order

Settling the Maintenance

Order

Closing the Maintenance

Order Business View


AR= Accounts Receivable, COGS = Cost of Goods Sold, MRP = Material Requirement Planning

Scenario 973 Subcontracting (Internal)

SAP 2010 / Page 40

Planned Independent

Requirements

Execution of MRP Run

Sales Order Processing

Posting Materials Provided

Availability Check of Non

Provided Materials

Convert Planned

Order into Process

Order

Release Process

Order

Process Order Confirmation

Shipping Delivery

Goods Issue for Delivery

Billing

Pro

du

cti

on

P

lan

ne

r S

ale

s A

dm

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istr

ato

r W

are

-ho

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Cle

rk

Sh

op

Flo

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Sp

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Wa

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Billi

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SAP Best Practices Adds Significant Value

Global, external, and cross-industry university study1)

Conclusion: SAP Best Practices are a significant value-add

22% shorter project duration

71% lower project risk

28% increased satisfaction among project stakeholders

Customer Quotes2)

Theres no way we could have designed and implemented our system in five months, and kept our ongoing IT costs so low, without SAP Best Practices.

Michael Thompson, Systems Manager, FutureFuel Chemical Company

The fact that SAP understands the chemical industry was a huge differentiator. We leveraged SAP Best Practices for Chemicals as the template to drive us forward

and accelerate our implementation.

Blake Barthelmess, Chief Information Officer, REC Silicon Inc.

Sources: 1) Study, University of Ludwigshafen, Germany 2) SAP Business Transformation Studies

Project costs reduced by 20% - lower TCO

Higher net present value (NPV)

Shorter break-even period


Customers and Analysts Confirm... Only SAP Offers Industry-Specific Functionality and Best Practices

We are taking this step (implementing SAP MII) to make sure that transactions are always available at our plants. SAP ensures that all transactions would be stored and later

forwarded to the corporate system. We implemented 17 sites in one year and have speeded

up our production set-ups

John Niemzyk, Vice President and CIO , Rexam

SAPs major asset resides in the native integration of functionalities of PLM in the total solution, which eliminates the interfacing procedures. In short, SAP made it possible for us

to carry out a project with only one tool able to manage both the operational and the

decisional information.

Jean-Louis Gautier, Supply Chain Manager, Thales ED

Briefing: SMB Companies May Be Able to Leapfrog with SAP

Small and medium businesses have an opportunity to leapfrog their larger competitors by adopting the SAP Business All-in-One solution, deploying at 50% lower cost and in a

fraction of the time of previous SAP R/3 implementations.

Colin Masson, AMR Research

Briefing: SAPs New Packaged Solution for the Chemical Industry (updated)

Our final assessment is that SAP has done a good job with this . . . chemical packaged solution. It addresses the vast majority of issues (scenarios) a company may face . . . .

SAP is the first of the major ERP suppliers to provide such a solution for this market . . . .

SAP should find a welcome reception.


SAP Already Addressing Customer Needs

Solutions for Sustainability Management

SAP Business Suite

R&D

Finance

and

Human Capital

Manufacturing

& SCM

Enterprise

Asset

Management

Sales &

Marketing Purchasing

Business Process Integration

REACH and Product

Compliance Environmental

Compliance

SAP Environment,

Health & Safety

(EHS) Management Recycling Administration

Health and Safety

Support for Legal Process

Substance & Material Management

Supply Chain Collaboration

Compliance for Ingredients

Product Compliance Reporting

Customer and Supplier Communication

Incident/ Accident Management

Preventive and Occupational Medicine

Hazardous Substance Management

Environmental Performance

Air Emissions

Water Emissions

Product Safety and Stewardship

MSDS and Label

Management

Dangerous Goods Management

Waste Management

Permit Management

Resource Consumption Industrial

Hygiene and Safety


Chemical Companies Build upon SAP Best Practices North America, EMEA, MENA

Chemical companies having implemented based on SAP Best Practices for Chemicals


Chemical Companies Build upon SAP Best Practices India, China

Chemical companies having implemented based on SAP Best Practices for Chemicals


Great Customers, Great Brands, Great Relationships

Applied Tech Products


Analyst Quotes: Live in 5 Months are real SAP Best Practices for Chemicals



SAP Background


Partner Landscape


Agenda


SAP Partners Serving the Plastics Industry

Partner Solution Region URL

it.chemicals USA, EMEA itelligence

Hi-Pace

Chemicals USA, APA

Hitachi

Consulting

ChemOne USA, India

Yash

Technologies

All-in-One

Chemicals USA, EMEA Enowa Consulting

AAES EMEA, USA Accenture

Note: All partners listed above offer SAP Business All-in-One solutions based on SAP Best Practices



SAP Background


Partner Landscape


Agenda


Gartner Validates SAP Business All-in-One

SAP has rich domain experience in target vertical markets, and many sub-sector solutions are offered by a globally diverse partner channel,

which is tightly managed.

The competency of the partner channel with respect to deployments

and post-deployment modifications is strong.

SAP Business All-in-One solution is one of the broadest and deepest solutions in the market, and its Best Practices and the fast-start program

reduce the effort needed for the early phases of an implementation

The Business All-in-One fast-start methodology and prepackaged offerings by major partners helps to improve successful on-time, on-

budget deployments.

Source: Gartner - Magic Quadrant for Midmarket and Tier 2-Oriented ERP for Product-Centric Companies, June 4, 2009


HEWI Heinrich Wilke: Injection Molder Establishes a Product-costing Analysis System

Key Challenges Increase transparency and efficiency in manufacturing

processes and production scheduling

Establish a product-costing analysis system

Put in internal quality and management information system

Project Objective Implement functionality for manufacturing and production

Why SAP Solutions One-stop solution available through intelligence AG as

supplier for license, integration, and hotline

Implementation Highlights Implemented a fully integrated SAP ERP application

Rolled out SAP software to 318 users

Key benefits Process optimization during connection to complex product

variant structures for fitting hardware products

Permanent availability of information

Knowledge transfer through itelligence AG and SAP

Web Site www.hewi.com

Industry Mill products metal and plastics processing

Solutions and services SAP ERP, which includes functionality for sales and distribution,

materials management, production planning, variant configuration, warehouse management with radio frequency identification (RFID), quality management, financials, controlling, HR, and product life-cycle management

SAP Solution Manager application management solution

Existing environment Intermec radio scanners with RFID technology, document

management system, electronic data exchange, automatic shelf control, and interface to scales

Implementation partner intelligence AG


Ace Plastics: Injection Molder

Five-Month Implementation

Company name Ace Plastics Co. Limited www.acemold.com

Industry Plastics injection tool making, molding, and secondary operations

Key challenges Improve cost and business-segments analysis to develop growth

strategies

Increase financial visibility; reflect timely and accurate financial data and effective budget control

Enhance production planning and management; enable JIT delivery and effective inventory control

Achieve real-time management across different departments

Solutions and services Functionality of SAP ERP Financials and controlling

Materials management

Sales and distribution

Production planning

Existing environment ERP system

Implementation highlights Fast implementation in just eight months

Thorough education provided for all departments, enabling excellent interdepartmental cooperation and support

Key benefits Improved financial reporting efficiency by 70%, providing an up-

to-date, crystal-clear picture of the companys financial status

Comprehensive and accurate cost analysis facilitates intelligent and fast decision making

Integrated business processes and real-time information flow enable better production planning and operational efficiency

Inventory control significantly improved, with purchasing lead-time reduced by 50%

Improved interdepartmental collaboration and accountability


Grammer: SAP Supports Injection Molding Auto Supplier - Integrates production processes using SAP

Summary GRAMMER AG an automotive supplier based in Amberg, Germany

integrated and optimized its production planning processes with software from the SAP for Automotive solution portfolio, including the SAP Advanced Planning & Optimization (SAP APO) component. The company can now ensure that it delivers its products on time.

Web site www.grammer.com

Key challenges Minimize setup times and downtime

Integrate production processes

Optimize buffer stock

Improve ability to make changes and expedite product customizations

Project objectives Optimize production planning to ensure that deadlines are met

Utilize machines and tools optimally

Use and expand internal SAP software expertise to meet future requirements promptly and independently

Solutions and services SAP APO, a part of the SAP Supply Chain Management application

Just-in-time and just-in-sequence software from SAP for Automotive

Why SAP solution Covered all required functions

Precluded need for costly interfaces

Used throughout the company since 1998

Implementation highlights Process definition, customizing, and training in just three months

Easy integration of SAP APO into a complex overall process

Key benefits Reliable deadlines

Versatile, customer-specific make-to-order production

Detailed machine scheduling

Optimization of setup time


Toray Plastics: Implemented Five Divisions in Five Months

Company name Toray Plastics (America) Inc. - www.toraytpa.com

Industry Synthetic fibers, textiles, and plastics

Key challenges Build a solid foundation for continuous improvement activities

Streamline corporate structure

Improve customer satisfaction

Increase information access for better decision making

Standardize business processes

Implementation partner SAP Consulting, part of SAP Customer Services Network

Solutions and services SAP Enterprise Service Select

SAP ERP

RWD Info Pak delivered by SAP Education, part of SAP Customer Services Network

Offshore delivery services provided by SAP Consulting

Existing environment Ross Systems and legacy manufacturing execution system

Implementation highlights Best-practices approach with SAP Enterprise Service Select

Five-month implementation time across five divisions

High level of user acceptance with documentation and online support

Key benefits Increased productivity

Inventory visibility

Streamlined processes

Platform for growth

Improved competitive position

Rapid implementation at lower cost


Why SAP solutions Fast implementation times and lower total cost of ownership

Preconfigured business processes, allowing the company to meet an overwhelming percentage of its needs

Easily configurable software, enabling the company to accommodate different size business units and country-specific financial, statutory, and process requirements

Implementation highlights Rapid implementation in nine months

On time at a fixed budget

Elimination of business blueprinting with preconfigured best practices

Strong executive sponsorship

Key benefits Worldwide visibility into financial, sales, manufacturing, and supply-chain

metrics

15% reduction in inventory in first year

Faster month-end close (three days instead of seven days)

Streamlined financial consolidation processes (a half day instead of eight days)

Less administrative work

Reduction in IT costs (less than 2% of revenue)

Summary AZ Electronic Materials is a worldwide leader in electronic

materials for the flat-panel display, semiconductor, and printing markets. Working with partner Accenture, the 400 million company used the SAP Best Practices for Chemicals offering to beat a tight deadline to bring up a worldwide information system.

Web site www.az-em.com

Key challenges Link separate information silos residing throughout subsidiaries

to enable information transparency worldwide

Project objective Install global information system across nine countries in less

than one year

Solutions and services SAP Best Practices for Chemicals

SAP NetWeaver Business Intelligence component

SAP ERP application, including the SAP Environment, Health & Safety application

SAP Recipe Management application

AZ Electronic Materials:

15% Reduction in Inventory in First Year


Thales Electron Devices: Injection Molding Medical

Device Manufacturer

Reduced time-to-market by up to 50%


Borealis: SAP Advanced Planning & Optimization (APO)


REXAM Speeds Production Set-ups Using SAP


REXAM: 25% Reduction in Inventory

Company Name Rexam - www.rexam.com

Industry Consumer packaging

Key Challenges Improve key performance indicators for order-to-cash,

demand-to-supply, and procure-to-pay processes

Improve customer and supplier access to relevant information and key business processes

Solutions and Services SAP NetWeaver

SAP NetWeaver Portal and SAP NetWeaver Business Intelligence

Existing Environments SAP Business Suite

Implementation Highlights Highly enthusiastic reception from vendors and customers

Personalized profiles used to constrain a vendors visibility into the system so the vendor views only authorized information

100+ portal profiles for suppliers

Key Benefits Increased efficiency (85% of all cans in the Americas now

ordered through the portal)

Immediate execution of portal orders on the plant floor

Time spend on special customer orders cut from 3 4 hours per week to 15 minutes per week

Improved cash flow (99.7% current accounts receivable for the Americas at close of year)

25% reduction in aluminum inventory

75% productivity improvement

Easy portal access to critical information and for hundreds of employees, customers, and suppliers

30% reduction in call center staff


Customers..

Applied Tech Products


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Documents

SAP Plastics Overview