How the Intelligent Factory Can Help You Drive Operational

Excellence: Experience Digital Manufacturing Operations

for Process Industries
Sam Castro Ben Hughes
Senior Director, Solution Management Industry 4.Now Hub OT Specialist
PUBLIC
SAP SAP
Welcome to Industry 4.Now Series – Drive Adoption and Gain Increment ROI
Our goal is to demonstrate how to realize your digital vision and transform of your plant/factory

Session Name Start Date Time Title

I4.Now Webcast Part 1 - Episode 1
I4.Now Webcast Part 1 - Episode 2
I4.Now Webcast Part 1 - Episode 3
Explore SAP’s Approach to Industry 4.0 and Intelligent Assets:
07-22-2020 2PM EST
The Industry 4.Now Strategy
How to Achieve Operational Excellence for Maintenance Processes:
08-06-2020 2PM EST
Industry 4.Now and SAP Intelligent Asset Management Solutions
Drive Operational Excellence and the Intelligent Factory:
Digital Manufacturing Operations for Discrete Industries
08-12-2020 2PM EST
Drive Operational Excellence Through the Intelligent Factory: Automated
Kanban and Intralogistics Material Flow for Discrete Manufacturing Industries

How the Intelligent Factory Can Help You Drive Operational Excellence -
I4.Now Webcast Part 1 - Episode 4 08-19-2020 2PM EST
Experience Digital Manufacturing Operations for Process Industries

Analytics from Shop Floor to Top Floor - Leverage a Digital Operations

I4.Now Webcast Part 1 - Episode 5 09-02-2020 2PM EST
Center for the Intelligent Factory

SAP Production Engineering & Operations (PEO) - New digital

manufacturing capabilities streamline manufacturing build package creation,
I4.Now Webcast Part 2 - Episode 1 09-09-2020 2PM EST
planning and shop floor operations for complex global production
environments.

Equipment Performance Management to have higher asset uptime and

I4.Now Webcast Part 2 - Episode 2 09-23-2020 2PM EST
reduce cost - ASPM
Run zero incident factories with SAP Industry 4.Now - Empowered Worker
I4.Now Webcast Part 2 - Episode 3 09-30-2020 2PM EST
portfolio

I4.Now Webcast Part 2 - Episode 4 10-14-2020 2PM EST SAP Industry 4.Now Technology - Architecture and Security deep dive

I4.Now Webcast Part 2 - Episode 5 10-21-2020 2PM EST Intelligent Products (Jupiter dependency)

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

REGISTRATION LINK:https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&partnerref=AEFWD&eventid=2504991&sessionid=1&key=502909439C1EB208F3043E8C26207C94&regTag=1239097&sourcepage=register
 How will an Industry 4.Now
Process Industry business
look like?
In today’s demo, we showcase the development
of a beverage which is manufactured using a
sample manufacturing line. This product is
representative for any kind of process industry
product.
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3
Industry 4.0 - by SAP
Leveraging Intelligent Enterprise Technologies and Applications

Business Network

Customer and Employee Experience

The Intelligent Enterprise

Front Office Supply Chain BackOffice

HR
Production Procure
Sales Service & Finance
& Logistics
& Support IT
Marketing

Intelligent Product
Industry 4.0 Intelligent Factory

by SAP Intelligent Assets

Empowered People

ECC S/4HANA Design to Consume ECC S/4HANA

Artificial Intelligence
Data Driven Processing

IoT/OT Integration
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4
The Intelligent Factory managing the Industrial Landscape
Connecting the heterogeneous automation floor to the business floor

Intelligent Factory

Maintenance
SAP ME SAP QIM

Intelligence
Predictions
Execution

Footprint
Quality
Insight

Carbon
Artificial
SAP MII SAP CAMS » Multiple vendors

SAP PCo SAP OEE » Multiple machines

Automation Connectivity » Harmonized protocols

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ CONFIDENTIAL 5

D2O from Discrete Industries to Process Industries
The life cycle of a valve for batch production

DISCRETE ASSEMBLY
Design product and assemble it
Design and operate a discrete
unit to produce and mix
syrups double
seated
valve

DESIGN PLAN PLAN MANUFACTURE MANUFACTURE DELIVER OPERATE

components procure components assemble and sell

BATCH PRODUCTION
Develop a recipe for a
concentrate. produce, mix and Develop recipe and produce batch
pack the product.

Liquid
concentrate

IDEA PLAN PLAN PRODUCE DELIVER CONSUME

FORMULATE intermediates / procure batch & packing
materials

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

Showcase for the Design-To-Consume
Intelligent Manufacturing Enterprise for process industries scenario
Develop recipe and produce batch

Liquid
concentrate

IDEA PLAN PLAN PRODUCE DELIVER CONSUME

FORMULATE intermediates / procure batch & packing
materials

» Consumer input and » Plan Demand (IBP) » Trigger & Execute » Create & Release » The filled product is » Consume: make
sales forecast » Plan Supply (IBP) Procurement (S/4HANA) Process Order picked from the logistics available for end
(Experience and » Track & Trace Inbound (S/4HANA)* staging, loaded, and customers a drink with
Operational Data)
» Master Schedule for shipped to the customer. the individual recipe and
Production Material (GTT) » Execute Production
» Develop recipe & Order for batch » Transportation and comment from the
& Procurement (IBP & » Receive Procured production on the bottle
packaging BOM (SAP S/4HANA) Materials into Warehouse production (SAP DMCE) warehousing logistics
Recipe Development) processes are label
» Schedule Production (EWM in S/4HANA) » Integration of industrial
» Product Lifecycle Costing assets with SAP Shop automated, optimized,
(S/4HANA) » SAP Ariba networks (tbc) and monitored to ensure
» Handover to MFG & Floor Designer
maximum efficiencies.
Service » Execute production order
for packing order (SAP » The product is tracked as
DMCe) into bins it moves through the
warehouse and send to
» Receive bin into be consumed.
Warehouse area

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

 Design Recipe to Manufacturing BOM IDEA PLAN PLAN PRODUCE DELIVER CONSUME
Intelligent processes for innovative products FORMULATE intermediates /
materials
procure batch & packing

Releases recipe and creates

BOM for Manufacturing

START 01
Plan
Batch Demand
Traceability
Maria, 37
and Transport
Production
Engineer Management
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8
 Produce
The Intelligent Factory Floor IDEA PLAN PLAN PRODUCE DELIVER CONSUME
FORMULATE intermediates / procure batch & packing
materials

Tank Tank Tank

01 02 03
INPUT
WATER

Walter mixes the batch with an John executes the filling order: he
individual color realizing the recipe of selects one or multiple batches to be
Max executes the weigh one. After mixing he pumps batch to filled up. He documents the process
& dispense application. tanks and runs the CIP order. and prints labels.

05 06 07
Weigh & Start production Start filling the bottles and
Carol, 25 Launch Demo
Dispense Derek, 27 and mix the batch John, 44 prepare the batch
W&D EvoMixx Filling
Operator Operator
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Operator 9
Deliver
Prepare batches and Manage transportation logistics IDEA PLAN PLAN PRODUCE DELIVER CONSUME
FORMULATE intermediates / procure batch & packing
materials

Logistics handling Small 3D printed tanks including

area LED fill control inside bottling
bock. LED lights also inside
tubes simulating filling into filling
valve and then activate LED
BOX color under bottles (all together
with one fill process)

Prepare batches for Check status of delivery Plan inbound and

transport and ensure that and react to unexpected outbound transportation
the batches can be event requests
traceable

08 08 08 END

Ensure the batches Track and Trace Manage

Betty, 44 Betty, 44 Betty, 44 Transportation
are traceable
Logistics Logistics Logistics
Manager Launch Demo Manager Manager Launch Demo
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10
Solution Demo
Determining the
ROI of
Continuous
Improvement
Projects
Manufacturing Insights: Intelligence & Analytics Across Global Operations
SAP Manufacturing Integration and Intelligence (MII) & SAP Digital Manufacturing Cloud for insights (DMCi)

ISA-95 & ISA-88

Adaption to any manufacturing process and global visibility
and analytics for key performance indicators across a single
plant or global operations

Full integration to combined business and operational data from

ECC, S/4HANA and the Manufacturing Suite for improved
decisions

Manage and view harmonized data acquired from disparate

sources for better visibility into your plant operations

Business logic orchestration to enable customer-specific

processes for planning, execution, maintenance and quality

Manufacturing Performance Management with OEE Energy

Management to lower operational costs through an intuitive
tailored Worker UI
23% 15%
Improvement in Increase in
30%
Faster Order
OEE Throughput Creation
Manufacturing Analytics for Continuous Improvement
Cornerstone of SAP Manufacturing Performance Management

Advanced Analytics

Statistical
Continuous
Improvement
Predictive

https://blogs.sap.com/2020/05/28/dsc-green-thursday-leveraging-the-connection-of-industry-4.0-and-sustainability-with-sap-manufacturing-solutions/
https://blogs.sap.com/2020/06/02/manufacturing-how-to-apply-analytics-to-improve-plant-performance-and-roi
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ SAP PUBLIC
https://www.automation.com/library/white-papers/oee-for-the-enterprise
 SAP Digital Manufacturing – Management of OEE @ Scale
Ensure Reporting Consistency & Scale

SAP Digital Manufacturing Cloud for insights

(Public Cloud)

ISA-95 & ISA-88

SAP S/4 or ECC 6

(Private Cloud Or On-Premise)

SAP Mfg Suite

(Private Cloud Or On-Premise)

SAP DMCe - Discrete

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL
SAP MII OEE 15
https://www.automation.com/library/white-papers/oee-for-the-enterprise SAP DMCe - Process (Discrete & Process)
SAP Digital Manufacturing Cloud for Insights
Overall Equipment Effectiveness Analysis & Associated Time Model
OEE Insights
Manufacturing Insights provides real-time insight into manufacturing operations
with high fidelity data about the operations. This allows manufacturers to get insight
while operations are running during a shift rather than after the fact when the shift
is completed.

▪ Overall equipment effectiveness (OEE) analytics based on SAP ME, SAP DME and SAP
MII-OEE
▪ Complete visibility of time loss happening in different bucket
▪ Shift wise analysis of different losses
▪ Root cause analysis for all OEE losses (availability/quality/performance)
▪ OEE time element chart provides all losses in a single view
Availability Quality

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL Performance 16
SAP Digital Manufacturing Cloud for insights – OEE Insights

Drill-down for detailed root- Fund operations based on need

cause analysis and identify the and ROI potential
ROI potential for Continuous
Improvement projects

Availability Quality

Performance

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 17

SAP Manufacturing Integration and Intelligence
Self-Service Composition Environment (SSCE)

Self-Service Composition
Environment
• A simplified browser(HTML5) based
design tool for dashboard creation by
consuming different MII objects e.g.
queries, display template, MDO, KPI,
resource files & plant information
catalogue via drag & drop
• Form based reporting dashboard
using UI elements.
• Source code generation for the
designed dashboard and possibility to
extend through custom coding using
script assistance
• Integrating tag value changes directly
to browser using web socket interface
or through catalogue query template
• Comprehensive tool usable for a
business user and IT developer
• Reduce the time required for
dashboard creation
• Dashboard accessibility from mobile
devices

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 18

Wrap-up
Call to Action

Visit Industry 4.0 on SAP.COM [Link]

Read the SAP Industry 4.0 Strategy Whitepaper [Link]

Drive Adoption with Industry 4.Now Hubs [Link]

Contact us by phone +1-800-872-1727

Or see our complete list of local country numbers

Email Contact - E-mail us with comments, questions or

feedback.

Register for Industry 4.Now Webinar Series [Link]

Next Session on September 2nd: “Analytics from Shop Floor
to Top Floor - Leverage a Digital Operations Center for the Intelligent Factory”

"
© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 20
Questions?
Thank you.
Contact information:
Ben Hughes
Industry 4.Now Hub OT Specialist
SAP
ben.hughes@sap.com
Salvatore (Sam) Castro
Senior Director, Solution Management
SAP
salvatore.castro@sap.com
SAP Design to Operate - High Level Building Blocks Discrete Industry
Design Plan Manufacture Deliver Operate

L5 LBN AIN
Business Networks

EPD Supply Chain Control Tower

▪ Collaboration
▪ Engineering S/4 ePP/DS
L4 ▪ Connected Products IBP
▪ Finite production
S/4 TM S/4 PM
Enterprise ▪ Visualization ▪ Forecast planning DMC
Business Processes ▪ PLC (future) ▪ Inventory S/4 PEO ▪ Resource Orchestration
Optimization ▪ Change Impact Analysis ▪ Shop Floor Design
S/4 PLM ▪ Demand Driven ▪ Change Record ▪ Shop Floor Insight S/4 Yard Logistics ASPM
▪ Engineering Control MRP ▪ Master Data Mgmt ▪ Root Cause Analysis
Center Versioning ▪ Predictive Quality
▪ Product Compliance S/4 QM
S/4 EHS S/4 EWM PDMS
▪ Change Record

L3 S/4 PEO ME & MII DMC S/4 EWM

Manufacturing Asset Manager
Operations ▪ Complex Assembly ▪ Mfg. Execution Mfg. Execution ▪ Log. Execution
Management

L0-2 Plant Connectivity IoT and EDGE

Monitoring &
Process Control

Business
Technology Analytics Database & Data Intelligent Application Integration
Management Technologies Development
Platform

Legend:

Deployed on Deployed in Deployed Deployed on

Mobile the Cloud On Premise the EDGE

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 23

 ISA-M Methodology
Example for Hybrid Digital Manufacturing Landscape User-Centric Process
Consumption Invocation

IoT/OT Data
Integration Movement

SAP Digital
Manufacturing Cloud

S/4HANA
ERP
Manufacturing Manufacturing Manufacturing
Insights Execution Network
Manufacturing Process

Data Lake Asset Central

Business Data

Common data lake Plant 5 Plant 6 Plant 7 Common data foundation

Master Data

for master and transactional data

(e.g. equipment, work order)

Machine
Data

Plant 1 Plant 2 Region Plant 5 Plant 6

ME/MII/PCo MII-OEE/PCo ME/MII/PCo PCo MII/PCo

Plant 3 Plant 4
SAP OEE - System Landscape & Technology
SAP Digital Manufacturing Cloud for insights

Cross-site Analytics on Premise & Public Cloud

Central Admin & Planning

ECC & S/4 HANA

OEE Configuration
(SLT or SDI Replication)

MII Operator to
Production OEE Plant Goods Issue/Receipt EWM Interface
Confirmations Configuration (IDocs) OEE Transactional Data (Synchronous)
& Maintenance (SLT or SDI Replication)
Notifications MII & ME
MII (BAPI / RFC) MII EWM

… …
Plant Manager Reports
Automated Data Collection (IoT/OT)

Plant - n Operator
Plant - 1 Plant - 2
Dashboard
PCo & Edge
PCo
… …
PCo Services

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 25

SAP OEE Content Link Repository
SAP OEE General Links
o Positioning BLOG and Business Purpose: https://blogs.sap.com/2014/09/30/oee-for-the-enterprise/
o SAP Education Training course for OEE (SCM 390): https://training.sap.com/course/scm390-sap-overall-equipment-effectiveness-classroom-016-us-en
o OEE Content Help Documentation: https://help.sap.com/viewer/386f983a90564cc8bda9a53dffda9691/15.2.0/en-US
o OEE Content Book: https://www.amazon.com/Manufacturing-Performance-Management-using-Effectiveness/dp/1484211510/ref=sr_1_1?ie=UTF8&qid=1529436898&sr=8-
1&keywords=SAP+Manufacturing+performance+Management&dpID=51JuKWxjbvL&preST=_SY291_BO1,204,203,200_QL40_&dpSrc=srch

SAP MII Component of SAP OEE

o OEE for MII: https://help.sap.com/viewer/386f983a90564cc8bda9a53dffda9691/15.2.0/en-US
o SAP MII Configuration Guide (incl. OEE Content): https://help.sap.com/viewer/31baef129a284534a7c01e35ca177d7a/15.2.0/en-US
o OEE Content Architecture: https://help.sap.com/viewer/386f983a90564cc8bda9a53dffda9691/15.2.0/en-US/0aae6d93a3bb4405b6a8979b2fe9da8b.html

HANA Component of SAP OEE

o HANA for Manufacturing: https://help.sap.com/viewer/3220c0ea70dc446a89afbe40f8834383/1.0%2009%202016/en-US
▪ https://help.sap.com/doc/saphelp_hba/1.0/en-US/36/246652498f617fe10000000a44538d/frameset.htm
▪ https://help.sap.com/viewer/e781b2dcabad4f96980a0a8e8a89ae6d/1.0%2009%202016/en-
US/72007c5253f1902ee10000000a44538d.html?q=SAP%20HANA%20Live%20for%20Manufacturing
▪ https://help.sap.com/viewer/search?q=SAP%20HANA%20Live%20for%20Manufacturing&language=en-US&state=PRODUCTION&format=standard,html,pdf,others
o Lumira: https://help.sap.com/viewer/386f983a90564cc8bda9a53dffda9691/15.2.0/en-US/89d2bf5508658809e10000000a441470.html
o OEE Content Architecture: https://help.sap.com/viewer/386f983a90564cc8bda9a53dffda9691/15.2.0/en-US/0aae6d93a3bb4405b6a8979b2fe9da8b.html

SAP ECC (or S/4) Component of SAP OEE

o OEE content (non-modifying ABAP Add-on) General Note: https://launchpad.support.sap.com/#/notes/1804140

SAP Digital Manufacturing Cloud for insights (SAP Cloud Platform) component of OEE
o SAP Digital Manufacturing Cloud: https://help.sap.com/viewer/p/SAP_DIGITAL_MANUFACTURING_CLOUD
o Digital Manufacturing Cloud for insights -> OEE Insights Portion: https://help.sap.com/viewer/de1d05db7d6e42f6ac2ba773dd5fd555/latest/en-US/a9c3bd84dc2d4c72bd4ebc140db71cca.html
 SAP OEE-INT
SAP OEE and ECC Integration delivered as standard content

Enterprise Resource Planning

Plant Hierarchy
Production Planning
Reason Code
❑ Plant Hierarchy Material Management
❑ Production Order
❑ Production Yield Confirmation
❑ Process Order
❑ Production Scrap Confirmation
❑ Work Center
SAP OEE-INT ❑ Production Rework Confirmation
❑ Material
15.3 Interfaces ❑ Component Goods Movement
❑ Shift Definition
❑ *Plant Maintenance Notification
❑ Data Collection Element
❑ Customized Extensions
❑ FLOC and Equipment Mapping
❑ Plant Reason code
❑ Customized Extensions
OEE Performance Mgmt.
Manage Orders
Manage Downtime
Performance Analysis
Raw Material Consumption
Data Collection
SAP MII Component of SAP OEE *Introduced in OEE 15.1
o OEE for MII: https://help.sap.com/viewer/386f983a90564cc8bda9a53dffda9691/15.2.0/en-US
o SAP MII Configuration Guide (incl. OEE Content): https://help.sap.com/viewer/31baef129a284534a7c01e35ca177d7a/15.2.0/en-US
o OEE Content Architecture: https://help.sap.com/viewer/386f983a90564cc8bda9a53dffda9691/15.2.0/en-
US/0aae6d93a3bb4405b6a8979b2fe9da8b.html
 SAP Manufacturing Integration and Intelligence
Out of the Box Integrations

Out-of-the-Box EWM Integration Filling Line

• A component consumption can be reported directly to SAP

EWM. Blowing m/c Filling m/c Labeling m/c Packing m/c * Palletizer

• A separate message is triggered upon SFC complete,

scrap or container close.
• Consumption can also be reported immediately upon
component assembling.
Goods Issue/Material Goods Receipt/Material
• Consumption is reported against the production supply
Consumption Production
area associated with a work center.
• Goods issue messages can be aggregated to decrease a
network load.

Benefit
• Standard out-of-the-box Mobile Application launch pad

• Disconnected Availability – Buffering - Goods Issue and Goods Receipt

SAP EWM

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 28

SAP Digital Manufacturing Cloud
Analytical Model Based Extensions

▪ Provides a means to allow customers and (or) partners an

extension mechanism to integrate non-SAP MES. SAP Digital Manufacturing Cloud
▪ Acquire and consolidate data from non-SAP MES and 3rd
party systems to build analytical models.
Analytical Dashboard
▪ Publish the developed analytical model to generate
Manufacturing
Modeler Designer
dynamic APIs to feed the data from external sources. Insights
▪ Develop personalized KPIs using external data as input
and visualize through Dashboard Designer.
▪ Build custom defined measures and attributes and perform
slice and dice across dimensions for analytical processing.

3rd party systems

(for Custom KPI’s only)

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ INTERNAL 29