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Adaptive Manufacturing 1 PDF
Adaptive Manufacturing 1 PDF
Manufacturing:
Adaptive Manufacturing
Ian Ryan
SAP America
Agenda
DISCONNECT
What’s happening during every shift?
Material availability and consumption
? Capacity availability and utilization
MES Schedule changes
Product Genealogy tracking and QM
X
Visibility
Learning about machine, material, and quality
issues too late to take action
Customer orders lost on the factory floor
Lack of visibility into actual production costs
X
Ability to respond rapidly to manufacturing
Responsiveness exceptions
Ability to balance supply with demand priorities
Ability to align manufacturing with business goals
X
Constant rework, overtime, expedite orders, and
shortages
Performance
Lower customer satisfaction and lost revenues
Lower margins from focusing on the wrong priorities
Manufacturing integration: A
Factory
manufacturing integration platform to
connect manufacturing processes with
enterprise and supply chain processes
Push Pull
ETO
Model Inventory Manufacturing
Flexibility Flexibility
Push Pull
MTO
Model Inventory Manufacturing
Flexibility Flexibility
Push Pull
ATO
Model Inventory Manufacturing
Flexibility Flexibility
Push Pull
MTS
Model Inventory Manufacturing
Flexibility Flexibility
Manufacturing
Management
Subcontracting and
Management
Maintenance
Execution
Planning
Quality
Collaboration
Manufacturing Event
Management
Move Goods
Production Operator to Line & Manu-
facture Product
© SAP AG 2003, Adaptive Manufacturing - Operations, Ian Ryan / 15 Not part of the Manuf. Solution
A Typical Manufacturing Scenario
Plant Manager Report Up
Visibility
Role
Approve Production Plan Update Production Plans
Plant Manager Manuf. Intelligence
and Targets (Measure Plan vs. Actual)
Manufacturing Planning
Production Release Production Create detailed Production Develop Detailed
Production
SupervisorPlanner Orders Visibility
Plan and Schedule Monthly Production Plan
Maintenance Management
Manufacturing Execution
Manufacturing Planning
Move Goods
Qualitiy Management
Production Operator to Line & Manu-
facture Product
Quality Inspector
Create Quality Monitor, Review and
Quality Inspector Inspection Orders Approve Quality
Quality Management
Approve and Release
Quality Manager Produced Batch/Order
Maintenance Engineer
Create Preventive
Maintenance Plan Maintenance Management
Schedule
Maintenance
Maintenance
Execution
Invoke Safety and
EH&S Management
Handle substances as
Handle substances as Log Exposure and Handling
EH&S Professional Handling Instructions specified in MSDS for Compliance
based on MSDS
© SAP AG 2003, Adaptive Manufacturing - Operations, Ian Ryan / 16 Not part of the Manuf. Solution
Manufacturing Planning
Key Benefits
Feasible production schedules
High order fill rates with lower inventory on the shop floor
Accurate due date promises to customers
Higher labor and asset utilization
Technology Enablers
Optimization Algorthms, ATP, CTP, PTP
© SAP AG 2003, Adaptive Manufacturing - Operations, Ian Ryan / 17
The Manufacturing Planning & Scheduling Process
Develop supply
Net Forecast against
Forecast Demand Network Plan for
orders
Manufacturing
Detect unplanned
events or demand /
supply changes
Re-plan and
re-schedule
production, as needed
Not part of the Manuf. Solution Manuf. Soln. not within the scope of this process
© SAP AG 2003, Adaptive Manufacturing - Operations, Ian Ryan / 18
The Manufacturing Planning & Scheduling Process –
Pain Points & Solution Enablers
Constraint-based concurrent Develop supply
Constraint-based concurrent
Unconstrained Plans & Net Forecast against Unconstrained Plans
Forecast
Material Demand
and Capacity Network
Material andPlan for &
Capacity
Schedules orders Schedules are Infeasible
Planning &are Infeasible
Scheduling Manufacuring
Planning
Drill
Lackdown
of sufficient
into exceptions
data Lack
Plan-to-plan
of integrated
comparison,
analytics with
and reporting
library
for root-cause
root cause analysis of prevents
over 300 plan-to-plan
pre-configured
comparison
SCOR KPIs
Not part of the Manuf. Solution Manuf. Soln. not within the scope of this process
© SAP AG 2003, Adaptive Manufacturing - Operations, Ian Ryan / 19
The Manufacturing Planning & Scheduling Process
Detect unplanned
events or demand /
supply changes
Re-plan and
Detailed re-schedule
Production Scheduling production, as needed
Not part of the Manuf. Solution Manuf. Soln. not within the scope of this process
© SAP AG 2003, Adaptive Manufacturing - Operations, Ian Ryan / 20
Manufacturing Planning – Critical Solution Elements
Capabilities:
Integrates solution for production planning and detailed
scheduling that is integrated with Manufacturing
Execution online
Peg individual plans and production schedules to actual
sales orders
Dynamically calculates and optimizes changeovers
Support multi level capacity requirements planning; bi-
directional propagation of order changes
Supports exception-based management – proactively
detects plan deviations and automatically alerts
planners
Delivers what-if and scenario analysis to drive the most
optimal plan
Offers integrated analytics and reporting, with a library
of pre-packaged SCOR KPIs
Time
Quality Control
Not part of the Manuf. Solution, Manuf. Soln. not within the scope of this process
Little
Integration
to no integration
to WMS
Quality Control and
with
TMS
WMS/TMS
via APIs
Automated
Inability to
cost-variance
monitor /
measure
tracking via
cost BW
variances
reports Store or pack and
dispatch order
True
Inability to
track true
production Document production Monitor variance against
Production
costs docu- costs plan and budget
Costs
mented
Outbound
Processing
Quality Control
Not part of the Manuf. Solution, Manuf. Soln. not within the scope of this process
Capabilities
Offers an integrated manufacturing execution, detailed
scheduling and planning solution
Increase Revenues
Improved Production Yields, Order Fill Rates and On-Time Shipments
Higher Manufacturing Volumes with Shorter Lead Times
Higher customer satisfaction from better order fulfillment
Validate Equipment
Ready for Use
Automated Quality
Notifications
Validate Approved
Materials
• Automate Weighing &
Reconciliations
• Complete Traceability
Quality Planning
Variable
Limited inspection
Inspection
Entry
entry Options
options
Supports
Does Corrective
not support & &
Corrective Manual
Automated
or rudimentary
exception
alert
Preventive Actions (CAPA) detection
based exception
and management
detection
Audit
Lack Mgmt. andanalytics
of integrated Businessand
Intelligence
reporting –
doessupports
not support continuous improvement
continuous improvement
Quality Engineering
Quality Planning
Capabilities
A quality management solution integrated with
manufacturing execution, that supports GMP (good
manufacturing practices) and lowers Total-Cost-of
Ownership (TCO)
Offers an end-to-end solution for QM, comprising:
quality planning,
quality control,
quality exception detection and management, and
quality audit and performance management
Integrates with Quality Control Instrumentation
through built-in interfaces
Enables proactive tracking of Corrective and Preventive
Actions (CAPA)
Drives decision making to the shop floor thru a role based
dashboards
Increase Revenues
Key Benefits:
Predictive maintenance minimizes asset downtime and maximizes
asset utilization
Preventive maintenance lowers operational expenses (reduced MRO
inventory and maintenance costs)
Technology Enablers
RFID, GIS, Remote & Mobile & Condition Monitoring
© SAP AG 2003, Adaptive Manufacturing - Operations, Ian Ryan / 37
© SAP AG 2003, Adaptive Manufacturing - Operations, Ian Ryan / 38
One System – Multiple Access Methods
SAP EAM BW
Maintenance
Equipment Maintenance Maintenance
Execution &
Master Data Planning Analysis
Documentation
FMEA
Optimize
Strategies
Document
manufacturing assets
Document
maintenance event
Document Integrated
Financial Financial and
and maintenance views of
manufacturing assets Maintenance
assets View of Manuf. Asset
not integrated
Automated
Inability Robust Predictive and
Exception
to detect Lack of Predictive or
Preventive Maintenance
(in
Detection
real-time)
& Preventive Maintenance
minimizes downtime
Resolution
or resolve
Detect unplanned viamachine
SCADA or Trigger and execute
maintenance events Mobile
breakdowns
Option maintenance
Document
Drill down maintenance event
Inability to Integrated
into, and fix Inability to
drill down analytics & data
root causes Measure actual asset aggregate
and analyze reporting enable
to prevent performance against and
right measure
Analyze root causes
root causes time perfor-
recurrence planned actual asset
of excep- mance moni-
& minimize performance
tions toring & analysis
downtime Inability
Integrated
to drive
Performance
Corrective
Management
& Preventive
supports
Action (CAPA)
CAPA
Maintenance Execution
(Portal and/or
Mobile Solution)
Document
maintenance event
Capabilities
offering an integrated physical (technical, maintenance)
and business (financial value across life cycle)
perspective that drives decision support pertaining
to repair, refurbishment and scrapping of the asset.
Key Benefits:
Minimize the number and cost of EH&S incidents on the shop floor
Lower EH&S compliance costs
Improve the health, morale and productivity of production personnel
Technology Enablers
RFID, Energy Mgmt, SOA – ROHS, WEEE
© SAP AG 2003, Adaptive Manufacturing - Operations, Ian Ryan / 46
Compliance Now Has Many Drivers
Operational Compliance
Financial Compliance
✔
7-8% of drugs
worldwide are
counterfeit,
50% in some
countries
Shrinkage and
counterfeits
F43GLVSD335324FL4234GERF33 account for
0.22 – 0.73% of
revenues for
manufacturers
F43GLVSD335324FL4234GERF33
$30B problem for US
retailers
$50B worldwide
01.000D34.00FKD.000234DCK
Counterfeit rate
01.000DF3E.0043F.000324FG
growing at 6-8%
annually
Efficient,
Inefficient,
Receive materials Check validity of MSDS integrated
paper-based
from supplier against records electronic
process
process
Manual,
Online,paper-based
integrated system
processensures
may lead
higher to
accuracy
errors and
andaccidents
lower incidents
Paper-based,
Automatedinefficient
documentation
documentation
lowers
results
compliance
in penalties
costsandand
compromises
secures
employee
employeehealth
healthand
& safety
safety
Lack ofBI
Integrated integrated analytics andand
enables improvement
reporting renders assessment
institutionalization difficult
of best practices
© SAP AG 2003, Adaptive Manufacturing - Operations, Ian Ryan / 50
EH&S Management – Critical Solution Elements
Capabilities
Offer a comprehensive solution for EH&S management
and compliance with regulations, for a manufacturing
context
Integration across Materials Management, Inventory,
Sales & Distribution, Financials, Human Resources and
Business Warehouse
Automated EH&S tasks enabling compliance in
Purchasing such as MSDS preparation, waste
classification, shipping
Full integration in Logistics for distribution of legal
required documentation (like MSDS, Tremcards, labels,
etc.)
Exposure group monitoring
Site inspections and Incident/Accident management
Flexible web based portal solution with configurable
business package for specifications
Visibility
Management
Management
Maintenance
material/ labor and quality exceptions, and monitor, measure
Execution
Planning
Quality
and analyze actual production against plan targets, rapidly &
cost-effectively
Are you challenged by….
your production personnel spending 30-40% of their work time looking
for information across multiple, disconnected systems?
a lack of real-time actionable intelligence needed by your production
personnel for right time decisions?
inability to monitor, measure and control performance (KPIs) for your
people, assets and plants in near-time, to positively performance?
Key Benefits:
Real-time snapshot of factory / production line operations at a glance
Aggregated data from multiple systems for right-time decisions
Visibility to exceptions, KPIs, reports and tasks on one configurable UI
Monitor, analyze & resolve exceptions/deviations via workflows in ERP
Technology Enablers
Visualization Technology, SOA web services, standards based
© SAP AG 2003, Adaptive Manufacturing - Operations, Ian Ryan / 52
The Manufacturing Intelligence Dashboard for Plant
Managers
My favorites
Pertinent KPI watch list,
with trends and drill downs
Manufacturing Visibility
Analytics for Manufacturing delivers
Manufacturing
Management
actionable intelligence to enable production
Management
Maintenance
Execution
Planning
Quality
personnel to monitor, measure, analyze, control
and improve their production processes and key
performance indicators (KPIs) to meet or exceed
their production targets.
Key Benefits:
Continuously monitor, measure and improve production processes
Exception-based-management approach to production KPIs
Analyze actual vs. budgeted costs to meet or exceed targets
“ 2005 was a year that saw manufacturing rediscovered and redefined as a critical and full
participant in a new generation of Demand-Driven Supply Networks (DDSNs).
The MES market finally broke through the $1B barrier this past year, with many vendors
growing revenue by 30% to 40% in the past 18 months. Also helping was the Enterprise
Manufacturing Intelligence (EMI) market, which AMR Research defined and anticipated in 2003.
It finally gained credibility with SAP’s acquisition of the leading EMI vendor, Lighthammer, in
mid-2005.
Momentum is going to continue to build in 2006. Spending on manufacturing applications in
2005 climbed to become the third largest application area after ERP and desktop software for
most industry segments.
Of those surveyed, 31% will upgrade or extend their manufacturing applications in 2006,
moving manufacturing into the second spot in application spending priorities behind ERP,
but ahead of Supply Chain Management (SCM).
- Colin Masson
Manufacturing becomes an Enterprise Software Category in 2006, December 21st, 2005
Manufacturing intelligence
SAP NETWEAVER dashboards: Role-based, configurable,
dashboards that deliver alerts, reports, KPIs
and decision support to different production
Other SAP Business Solu tions
Manufacturing
Intelligence personnel (part of mySAP ERP)
Manufacturing
Quality
mySAP SCM
SAP NetWeaver
SAP NETWEAVER
Manuf. Intelligence Dashboards
Manufacturing Visibility
SAP Mobile Asset Management
Manufacturing
Manufacturing
Management
Management
Maintenance
Execution
Planning
communicate and respond to unforeseen events
Quality
or exceptions on the factory floor.
Key Benefits:
Detection of manufacturing events and exceptions in real-time
Early response to exceptions to minimize fire-fighting and customer
issues
Key Benefits:
Real-time snapshot of factory and
production line operations at a glance SAP NETWEAVER
Manufacturing
Manufacturing
Management
Management
Maintenance
Execution
Planning
Quality
Monitor, analyze, and resolve
exceptions and deviations via
workflows within ERP