First-hand knowledge.

Reading Sample
This sample chapter introduces intelligent assets, a key pillar of any Industry
4.0 implementation. You’ll walk through enterprise asset maintenance
strategies and how technologies like machine learning, AI, and Internet of
Things (IoT) help improve the performance of physical machines and other
assets. Key SAP solutions in this space are discussed including SAP S/4HANA
Asset Management, SAP Asset Performance Management (a combination of
SAP Asset Strategy and Performance Management and SAP Predictive Asset
Insights), and SAP Business Network Asset Collaboration.

“Intelligent Assets”

Contents

Index

The Authors

Saha, Jash, Das, Ketkale

Industry 4.0 with SAP

589 pages | 12/2023 | $89.95 | ISBN 978-1-4932-2487-6
www.sap-press.com/5775
 Chapter 6
Intelligent Assets
This chapter introduces SAP’s solutions for intelligent assets (SAP
S/4HANA Asset Management, SAP Asset Strategy and Performance
Management, SAP Business Network Asset Collaboration, SAP Asset Per- 6
formance Management, and SAP Predictive Asset Insights) and explains
how they can be applied to digital manufacturing. Each section intro-
duces one solution with architecture and integration with peripheral
software components, functionalities, and benefits.

In the previous chapter, we covered the details of SAP solutions for intelligent factories
with respect to Industry 4.0. In this chapter, you’ll learn about intelligent assets, enter-
prise asset maintenance strategies, SAP S/4HANA Asset Management, SAP Asset Per-
formance Management, and SAP Asset Strategy and Performance Management, along
with their functionalities and architecture. This chapter also explains the main func-
tionalities, architecture, and benefits of SAP Predictive Asset Insights and SAP Business
Network Asset Collaboration.

6.1 What Are Intelligent Assets?

Intelligent assets refers to another key pillar of Industry 4.0 that is also linked with intel-
ligent factories to implement the Industry 4.0 concept in the reality of manufacturing
process. In intelligent factories, you’ve learned how highly automated and connected
production processes help to improve productivity in shop floor manufacturing. To
achieve improved productivity and smooth manufacturing processes, it’s also required
to keep the assets operational as much as possible, which depends on the performance
and condition of assets in intelligent factories. Manufacturers want to keep the manufac-
turing process up and running with almost zero downtime, and asset downtime can be
minimized with proper maintenance of assets and advanced asset health monitoring.
The traditional scheduled maintenance approach of assets can help to keep the manu-
facturing operation in running condition to some extent, but data-driven asset health
analysis and predictive maintenance can provide more robust solutions for asset
maintenance. In data-driven asset maintenance, sensors attached to an individual
asset can provide data in a centralized hub where artificial intelligence (AI) driven
analysis can provide predictive maintenance reports for individual assets, and intelli-
gent mechanism can propose perfect maintenance timing for manufacturing assets to

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avoid unexpected downtimes of assets. Intelligent assets are linked with each other to
complete end-to-end process flow with a real-time event-based approach from one
machine to another, which means the downtime of one asset can interrupt the auto-
mated process flow and finally impact the productivity of manufacturing. A collabora-
tive asset maintenance approach helps to make a link among equipment suppliers,
manufacturers (users of equipment), and service providers by sharing an asset’s health
data; this helps to improve the maintenance mechanism and keeps all stakeholders in
sync to get real-time analysis and quick decision-making capabilities.
Intelligent assets uses intelligent technologies such as machine learning (ML), AI, and
Internet of Things (IoT) to improve the maintenance process and maximize the perfor-
mance of physical machines or assets for manufacturing. It also incorporates analytics
on a machine’s data, process automation to optimize asset utilization, predictive asset
maintenance with an improved asset monitoring approach, and connected assets with
collaborative asset maintenance. Let’s review the key features for the intelligent assets
solution in Industry 4.0, as follows:
쐍 Collecting asset’s operations data
Intelligent assets are equipped with sensors to capture data from individual equip-
ment. Using sensors, you can collect data for multiple parameters that are used to
measure equipment’s health as well as production-related conditions. Collected
data from sensors also helps to derive more insights on the performance and effi-
ciency of assets.
쐍 Analysis and data-driven decisions
Data collected from the assets when analyzed uses predictive analysis and ML algo-
rithms to find the anomalies and potential asset failures, as well as schedule mainte-
nance activity in advance. It helps to prevent unplanned downtime, optimize
maintenance cost of machines, and extend lifetime of assets. Intelligent assets data,
combined with advanced analytics and ML capabilities, empowers manufacturers to
drive meaningful insights and make data-driven decisions. By analyzing historical
and real-time data, manufacturers can optimize asset performance and improve
product quality.
쐍 Remote monitoring and control
Intelligent assets enable remote monitoring and controlling of assets. We’ve real-
ized how much remote monitoring is important during the COVID-19 pandemic to
continue manufacturing execution processes. With the help of remote connectivity,
shop-floor users can remotely monitor an asset’s performance and receive real-time
data for making quick decisions based on the situation. The remote connectivity can
also help to adjust settings, configuration, or operational strategies, which leads to
optimized asset utilization and reduced manual intervention.
쐍 Integration with other systems
Intelligent assets need to be integrated with existing business application and systems
such as manufacturing execution system (MES) or enterprise resource planning (ERP),
356
6.2 Enterprise Asset Maintenance Strategies
or supervisory control and data acquisition (SCADA)/historian. The intelligent assets
solution helps in data exchange, coordination, and decision-making between assets
and other components, and it enables seamless integration of intelligent assets into
the existing infrastructure, ensuring compatibility and interoperability.
쐍 Human-machine interface
Intelligent assets need to be designed to provide native user interfaces (UIs) for
humans. Such interfaces can be touchscreens, mobile apps, virtual reality (VR)– 6
enabled tools, augmented reality (AR), and so on. Those enable shop-floor users to
monitor, configure settings, and receive alert notifications.
쐍 Predictive maintenance of assets
Through continuous monitoring and analyzing asset performance data, intelligent
assets enable predictive maintenance strategies. Based on the advanced analysis
technique, systems can detect early signs of potential failures, notify others, and
schedule proactive maintenance activity, which can reduce unplanned downtime
and reduce maintenance cost.
쐍 Flexibility and customization
In Industry 4.0, customer-centric production is an important parameter. Intelligent
assets can be configured and programmed to adopt dynamic production require-
ments.
쐍 Efficiency improvement
Intelligent assets provide real-time data on multiple dimensions such as energy con-
sumption, utilization, and performance. By analyzing this data, manufacturers can
identify inefficiencies and optimize their asset usage to reduce energy consump-
tion, increase productivity, and minimize waste.
쐍 Machine-to-machine connection and autonomous operations
Intelligent assets should have the capability to allow connectivity to IoT infrastruc-
tures, which allows them to communicate with each other and exchange data. An
event can be triggered from one operation, and it can be moved automatically to the
target asset and can pass it to the next. Intelligent assets need to be designed to oper-
ate autonomously or semiautonomously, so that those assets can make decisions
and perform tasks without human interaction. Intelligent assets can leverage AI
algorithms to optimize performance based on real-time data and predefined busi-
ness rules.
6.2 Enterprise Asset Maintenance Strategies
Enterprise asset maintenance refers to the maintenance of physical assets of an organi-
zation throughout the lifecycle of the asset starting from acquisition to disposal. It’s
very important to establish an appropriate strategy for enterprise asset maintenance
where an effective strategy involves regularity and proactive approach to optimize
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6 Intelligent Assets
asset performance, reduce downtime of the asset, reduce maintenance costs, and keep
the asset active with regularity compliance. Different maintenance strategies are
shown in Figure 6.1 and are described in subsequent sections to help you decide which
one best fits your business.
Breakdown
Maintenance
Preventive
Maintenance
Enterprise Asset
Maintenance
Strategies
Condition Based
Maintenance
Predictive
Maintenance
Figure 6.1 Enterprise Asset Maintenance Strategies
6.2.1 Breakdown Maintenance
The breakdown maintenance strategy is very simple: the maintenance work is done
after asset breakdown—it’s also called the reactive approach of maintenance strategy.
In the breakdown maintenance strategy, repair activity isn’t planned ahead of time,
and the maintenance team’s involvement is required only when the breakdown takes
place. It requires minimum planning, but it has drawbacks also. If the strategy is
applied for all the equipment used for manufacturing, then there is a huge risk if criti-
cal equipment fails or the spare parts aren’t available from the supplier immediately.
Therefore, production may be stopped if there is no other option available, and opera-
tions costs may also increase due to an increasing production timeline. This type of
maintenance strategy can be applied for equipment that requires low cost of repair and
isn’t critical for manufacturing operations, or for which an alternate option is available
in case of breakdown.
The advantage of this type of strategy involves less planning, lower cost, and usefulness
for noncritical assets, but this strategy can’t be applied for critical equipment, as
unplanned downtimes can impact production. It can also lead to long downtimes and
production disruption if the critical spare parts aren’t available from the supplier on
time when a replacement is needed for the equipment parts. You need to decide for
which equipment in your manufacturing process you can use this strategy based on all
the advantages and disadvantages.
358
6.2 Enterprise Asset Maintenance Strategies
6.2.2 Preventive Maintenance
The preventive maintenance strategy refers to proactively maintaining the assets to
prevent unexpected downtime. It involves routine-based inspection, replacement of
components, and servicing assets based on some triggering condition or preplanned
schedule. Preventive maintenance plays a critical role in asset maintenance by mini-
mizing maintenance costs as well as minimizing downtime of assets. This approach
helps manufacturers create a safe environment and increases productivity. Preventive 6
maintenance increases an asset’s lifetime. As the planning is done in advance for pre-
ventive maintenance, it becomes easier for manufacturers to arrange the spare parts as
needed and for skilled technicians to perform maintenance activity. Preventive main-
tenance can be performed based on time or usage of assets.
Because the planning is done in advance, it’s also important to keep monitoring and
tracking the plant maintenance schedule. If it’s not done in time and not monitored or
audited, then a huge number of plant maintenance tasks can be queued, which can be
difficult and time-consuming activities when skilled technicians aren’t available. As an
advantage, preventive maintenance strategy helps to extend the lifetime of assets, pre-
vent unexpected downtime, reduce maintenance costs, and increase productivity.
However, there are some disadvantages because if plant maintenance tasks aren’t
monitored or maintenance tasks aren’t completed properly, then post-maintenance
activities needs to be performed, which can increase maintenance cost and time.
6.2.3 Condition-Based Maintenance
Condition-based maintenance refers to the approach where maintenance is only per-
formed when the maintenance is required for an asset. Therefore, real-time monitor-
ing and continuous tracking of an asset’s health is required. It’s also required to
perform a detailed inspection of the system. It works based on predefined conditions
or rules that help with early detection of issues and perform maintenance activities.
Condition-based maintenance can be more effective sometimes than preventive main-
tenance. It helps to replace or service the parts of assets that are about to fail, reduces
unnecessary cost for manufacturing, and saves time. Condition-based maintenance
calls for a skilled maintenance person who has a deep understanding of the particular
asset because the maintenance is performed based on the inspection of the asset,
trends and patterns of the captured data, or digitalizing the process to automatically
detect the failure condition and trigger the maintenance process.
6.2.4 Predictive Maintenance
Predictive maintenance uses advanced technologies such as IoT via sensors connected
with assets, data analytics, and predictive algorithms using ML models to identify
potential failures of the asset in advance. To enable predictive analytics, you need to col-
lect historical data for the asset performance and failure points from the maintenance
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 6 Intelligent Assets 6.3 SAP S/4HANA Asset Management

history record based on which the ML algorithm can identify patterns and anomalies SAP S/4HANA
that are used to predict the remaining useful life of the asset. The target of predictive Organization Structure Master Data
maintenance is to predict failure before it takes place, which can help to perform main-
Client
tenance at the perfect time. The main advantages of predictive maintenance are
reduced asset downtime, increased asset life span, cost savings through optimized Controlling Area Plant Maintenance
Technical Objects
Purchasing
maintenance schedules, and improved operational efficiency by addressing the issue Organization
Company Code Maintenance
Planning Plant
before it takes place. It also helps with data-driven decision-making ability, enhances Functional Location
6
user safety, and minimizes the risk of unplanned outage. Plant/Maintenance Plant
Maintenance Equipment
Planner Group
Storage
Location Bill of Material
Location
6.3 SAP S/4HANA Asset Management Maintenance
Storage
Location
Planning
Plant
SAP S/4HANA Asset Management contains the functionality for the process of manag- Maintenance Section
Execution
ing physical assets or equipment throughout their lifecycle. The SAP S/4HANA Asset Maint. Work
Center HR Master Data
Management process helps to increase the lifetime of assets, reduce the cost, improve
Personal Number
quality and efficiency, and keep tracking the health of assets and safety of operators. Org.
Unit Business SAP
SAP S/4HANA Asset Management performs accurate asset monitoring and helps with Partner User

quick decision-making, provides deeper visibility into asset performance and risk, and
manages assets centrally. Now you understand the phases covered in the asset lifecycle Figure 6.3 Organizational Structure in SAP S/4HANA Asset Maintenance
and how those are addressed with the SAP S/4HANA Asset Management solution.
The entire asset lifecycle can be divided into four phases—specification and design, 6.3.1 Key Functionality
procurement and execution, operation and maintenance, and shutdown and disposal—
SAP S/4HANA Asset Management helps manufacturers maintain and monitor physical
as shown in Figure 6.2. The investment planning and defining a project are performed
assets or equipment throughout their lifecycles. In this section, we’ll discuss the
in the specification and design phase. The procurement and execution phase is used
important functionalities of SAP S/4HANA Asset Management from multiple asset
for finalizing vendors for assets and execution of asset procuring. Plant maintenance
aspects, including acquisitions, real-time monitoring using assets data, maintenance
and external procurement are considered in the operation and maintenance phase.
of assets, and disposal of assets. We’ll split this functionality into two groups: asset
The shutdown and disposal phase is used for disposal of assets, which is the end of the
master data management and asset management business functions.
asset lifecycle.

Asset Master Data Management

Phases:
Specification Procurement Operation and Shutdown and Asset master data management is the root of asset management where you need to
and Design and Execution Maintenance Disposal
keep records of all asset-related essential data such as work centers, functional loca-
tions, equipment, equipment bills of material (BOMs), serial numbers, classifications,
Investment planning Vendor selection and measuring points and measuring counters, permits, warranties, and revisions.
Activities: Plant maintenance Disposal of asset
and define of a project execution

Figure 6.2 Phases and Activities in the Asset Lifecycle
Before going into the detailed functionalities of SAP S/4HANA Asset Management, you
need to understand its organizational structure and where you can find the hierarchi-
cal structure and position of each unit, as shown in Figure 6.3. In SAP S/4HANA, the
organizational structure represents an enterprise that holds all the master data and
processes for business.
Work Center
A maintenance work center is a fundamental organizational unit within SAP S/4HANA
Asset Management that represents a physical or virtual location where maintenance
activities are planned and carried out. It serves as a central point for managing mainte-
nance tasks, resources, and activities related to equipment, functional locations, or any
other assets in an organization.

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6 Intelligent Assets 6.3 SAP S/4HANA Asset Management

A maintenance work center can be associated with various maintenance processes,
such as preventive maintenance, corrective maintenance, and shutdown maintenance.
It helps in efficient resource allocation, task scheduling, and monitoring of mainte-
nance activities.
Figure 6.4 shows an example of a maintenance work center in SAP S/4HANA Asset
Management, which has the following characteristics:
Creating a structured maintenance work center is a crucial element in embracing
Industry 4.0 within SAP S/4HANA. Consultants must guarantee the alignment between
the physical maintenance workspace and the corresponding work center in the SAP
S/4HANA system to enable seamless interaction with Industry 4.0 technologies such as
digital twins and AR. This synchronization ensures optimal functionality and har-
nesses the potential of advanced Industry 4.0 tools.

쐍 Work center: Mechanical Workshop Functional Location 6

쐍 Description: Responsible for performing maintenance and repairs on mechanical
equipment across the plant
쐍 Location: Plant A, Building 2, Floor 3
쐍 Manager: John Smith
쐍 Responsibilities: Repairing pumps, maintaining conveyor belts, and servicing motors
쐍 Resources: A team of mechanics, technicians, and engineers
쐍 Equipment: Lathe machines, welding tools, hydraulic presses
쐍 Functional locations: Pump room, motor control room
Within SAP S/4HANA Asset Management, a functional location stands as a pivotal orga-
nizational entity designated to portray a precise site within a facility or plant wherein
equipment or assets are situated. In the SAP S/4HANA system, functional locations are
generated to effectively carry out and document maintenance operations, accumulate
data over extended periods, oversee maintenance expenses by sector, and assess the
influence of usage conditions on the probability of harm to installed components. This
structure furnishes a methodical approach to categorize assets based on their func-
tional or physical placement, thus simplifying the management of maintenance tasks,
the monitoring of asset efficiency, and the strategic planning of work orders.

쐍 Shift schedule: 24/7 operation with rotating shifts Following is an example of the characteristics of a functional location in SAP S/4HANA
쐍 Key performance indicators (KPIs): Mean time between failures, mean time to Asset Management:
repair, work order completion rate 쐍 Functional Location: Boiler Room 1
쐍 Activities: Planned maintenance tasks, emergency repairs, equipment inspections 쐍 Description: Boiler Room located in Plant A, Building 3, Floor 2
쐍 Equipment: Boiler Unit 1, Pumps A and B, Valves 1-10
Location: Plant A, Building 2, Floor 3 Location: Plant A, Building 1, Floor 2
쐍 Maintenance Work Centers: Mechanical Workshop, Electrical Maintenance
쐍 Responsible Manager: Sarah Johnson
Supervisor 쐍 Criticality: High (due to its impact on the plant’s overall operation)
쐍 Maintenance Strategy: Preventive maintenance every six months, corrective main-
tenance as needed
Engineer Planner
쐍 Spare Parts: Gaskets, seals, temperature sensors
쐍 Safety Considerations: Lockout/tagout procedures, fire safety measures
Technicians
쐍 Documents: Equipment manuals, maintenance procedures, safety guidelines

In essence, functional locations group assets based on either their physical or func-
Machines
tional placement. Therefore, from an Industry 4.0 perspective, the design of functional
Mechanical Workshop Electrical Maintenance locations holds immense significance, as the SAP S/4HANA functional location struc-
Maintenance Work Center Maintenance Work Center
ture is shared across all related SAP products in the asset management portfolio. Func-
tional locations establish a systematic framework for effectively overseeing assets in a
Functional Location
digital manufacturing context. This framework facilitates real-time monitoring and ad-
Equipment ministration of assets, bolstering predictive maintenance strategies and data-guided
decision-making. Through the integration of IoT-enabled assets into functional
Figure 6.4 Maintenance Work Center locations, enterprises can continuously collect data, oversee asset conditions, and

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6 Intelligent Assets
anticipate potential malfunctions. This method optimizes processes, encourages col-
laboration, and harmonizes with Industry 4.0 principles, fostering streamlined re-
source allocation, peak asset performance, and adaptability in the evolving digital
realm.
Equipment
The term equipment is employed to represent distinct items for which businesses
maintain historical records, primarily for the purposes of plant maintenance or cus-
tomer service. These items can encompass autonomous entities such as tools or vehi-
cles, or they can extend to assembled components situated within functional locations,
such as pumps, motors, or gears. In SAP S/4HANA, a piece of “equipment” denotes a
tangible asset managed within SAP S/4HANA Asset Management, embodying physical
items necessitating monitoring and maintenance. In the landscape of Industry 4.0,
equipment assumes a pivotal role by serving as a bridge connecting the physical and
digital domains. This enables the integration of IoT sensors, which in turn facilitates
the real-time collection of data for predictive maintenance and remote monitoring.
The data derived from the equipment bolsters streamlined workflows, tailored mainte-
nance approaches, and the optimization of supply chain processes. Through its repre-
sentation as a digital twin, a piece of equipment empowers data-driven decision-
making, fosters a continuous improvement ethos, and seamlessly aligns with Industry
4.0’s foundational principles of heightened efficiency, personalized solutions, and
technological advancement.
Note
It’s imperative to exercise special care when designing functional locations, equip-
ment, and equipment BOMs because the design might vary depending on the busi-
ness’s KPIs to be achieved, whether with or without the integration of Industry 4.0.
Therefore, meticulous design thinking and the definition of KPIs based on user perso-
nas are necessary prior to configuring technical objects such as functional locations,
equipment, equipment BOMs, and other associated master data within SAP S/4HANA
Asset Management.
Classification
In SAP S/4HANA Asset Management, the classification of technical objects assumes a
significant role, especially in the context of Industry 4.0. Classification, a function
employed across various applications within the SAP system, including SAP S/4HANA
Asset Management, serves the purpose of assigning detailed attributes to technical
objects that go beyond the standard system’s predefined fields. It offers an alternative
search method where objects can be located based on their characteristics and features.
For instance, attributes such as power requirement or lifting height can be employed as
search criteria. This proves particularly useful in scenarios such as order processing,
where classification aids in identifying spare parts with specific features.
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6.3 SAP S/4HANA Asset Management
The system employs classification data to facilitate efficient searches, and the results
can be utilized to select components that match the required criteria and integrate
them into orders. Technical objects such as functional locations or equipment can be
associated with one or multiple classes through their master records. If an object is
linked to several classes, a standard class can be defined. Once a technical object is asso-
ciated with a class, all the attributes of that class are available for the object, and these
attributes can be assigned distinct values for each object. Characteristics within a class
6
can be assigned values, either manually or automatically, depending on the control
method. For automatic valuation, a characteristic can reference a table field or another
characteristic.
The classification of technical objects in SAP S/4HANA Asset Management holds a sig-
nificant role in Industry 4.0 due to its alignment with advanced technologies. Industry
4.0 uses classification attributes to integrate IoT data, enable predictive maintenance,
and support AR applications. These attributes define optimal operating conditions for
smart manufacturing, aid efficient resource allocation, and facilitate customized solu-
tions. The combination of classification and Industry 4.0 technologies enhances data-
driven decision-making, asset optimization, and the seamless integration of digital
advancements with physical asset management practices.
Equipment BOM
An SAP S/4HANA equipment BOM is a structured list that defines the components
required to assemble or maintain a specific equipment item. It details the parts, subas-
semblies, and materials needed to manufacture or service an equipment unit. The
equipment BOM provides essential information for planning, procurement, mainte-
nance, and accurate representation of equipment structures within the SAP system.
SAP S/4HANA equipment BOMs provide a structured representation of equipment
components, enabling Industry 4.0 principles such as predictive maintenance, digital
twins, AR integration, and optimized workflows. They serve as a foundational element
in achieving the potential of Industry 4.0 by seamlessly connecting physical assets
with digital capabilities.
Serial Number
SAP S/4HANA serial number management pertains to uniquely identifying individual
items, ensuring precise tracking and vigilance over serialized materials. These serial-
ized materials comprise products or assets assigned with distinct serial numbers, facil-
itating meticulous traceability throughout their entire lifecycle. This principle is
echoed in equipment BOMs, where components necessitate replacement during main-
tenance. These replacements, also known as maintenance, repair, and operations
(MRO) items, are themselves assets demanding thorough traceability, exact identifica-
tion, compliance adherence, warranty processing, and so on.
Within the scope of Industry 4.0, as well as in MRO scenarios, serial number manage-
ment emerges as a pivotal factor in attaining operational excellence. It fuses IoT-derived
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 6 Intelligent Assets 6.3 SAP S/4HANA Asset Management

data, propels predictive maintenance strategies, bolsters supply chain visibility, and Creating characteristics in the classification system is crucial before maintaining mea-
aligns harmoniously with the fundamental tenets of asset management and Industry suring points and counters in the SAP system. In SAP S/4HANA, data can be manually
4.0. This integration not only optimizes MRO but also cultivates streamlined inventory entered through the UI, with measuring documents capturing this data. Measurement
management and fuels progress in the ever-evolving landscape of interconnected man- readings can also be taken from maintenance notifications or orders, even using
ufacturing. mobile apps such as SAP Work Manager or SAP Asset Manager.
For valuable spares, SAP S/4HANA offers the capability to synchronize serial numbers, Barcode readers can facilitate data entry, transferring information to the SAP system
equipment, and asset master data. This synchronization establishes transparency in as- through the plant maintenance-process control system (PM-PCS) interface. The PM- 6
set maintenance, concurrently preserving asset value and facilitating asset accounting– PCS interface connects SAP with external systems, such as process control systems
related tasks such as depreciation calculations. (PCS), which generate data during technical process monitoring, control, regulation,
Figure 6.5 depicts the hierarchy of the technical objects or key master data objects used and optimization. This PCS data can be integrated into the SAP system through this
in SAP S/4HANA Asset Management. interface.
SCADA systems can be employed to filter relevant data from PCS and transfer it to SAP,
Functional Location –
Level 1
Power Production
(PW)
enhancing the foundation for performance-based, condition-based preventive mainte-
Maintenance
Functional
Functional Location – Plant A Plant B
Order nance, along with IoT-supported predictive maintenance.
Location
Task list Level 2 (PW-A) (PW-B)

Functional Location – Boiler Room – 1 Turbine Room – 1 Generator Room – 1 Boiler

Measuring points and counters are central to Industry 4.0, driving data-driven deci-
………. ……….. Permits
Level 3 (PW-A-BR1) (PW-A-TR1) (PW-A-GR1) Room – 2
sion-making, predictive maintenance, and operational efficiency. They collect real-
Equipment – Boiler
Level 1 Unit-1
Pump A Pump B …………
Maintenance
Notification
time data on parameters such as temperature and usage, underpinning process moni-
Equipment
Task List
Equipment – ……… Cartridge Casing
toring and analysis. This data facilitates predictive maintenance, anticipating equip-
Level 2
ment issues through pattern analysis. Moreover, constant monitoring via measuring
Rotating Flame
Thrust Bearing Journal Bearing
Spares and =
……..
Assembly Detector
Relief Valve ……………..
points detects anomalies, aiding preemptive issue identification. Counters track
Material BOM
Shaft Impellers Seal Sleeves ……..
resource use, optimizing energy and materials. They also integrate with IoT for auto-
Legend:
mated monitoring and support data-informed choices, while remote access enables
Functional Location BOM Equipment BOM Material BOM Install Base
distant monitoring and quality control. Overall, these components empower Industry
4.0’s drive toward efficient, adaptable manufacturing.
Figure 6.5 Master Data in SAP S/4HANA Asset Management
Measuring points and counters, in synergy with SAP S/4HANA for EHS environment
Measuring Point and Measuring Counter management and SAP S/4HANA for EHS workplace safety, play a pivotal role in advanc-
Measuring points are specific physical or logical locations where certain conditions are ing sustainable manufacturing within the framework of Industry 4.0. This integration
observed, such as coolant temperature after it exits pressure vessels in a nuclear power empowers businesses to monitor and enhance environmental performance by collect-
plant or the rotational speed of wind turbine blades. These measuring points are asso- ing real-time data on parameters such as emissions, resource consumption, and waste
ciated with technical objects. generation. By connecting these measurements to SAP S/4HANA for EHS environment
management and SAP S/4HANA for EHS workplace safety, companies can ensure regu-
Counters are resources used to quantify the damage, consumption, or reduction in the
latory compliance, optimize resource efficiency, and manage emissions and waste
useful life of an object, such as a vehicle’s mileage indicator or an electricity consump-
more effectively. The integration also promotes transparency and enables comprehen-
tion meter. Counters are also linked to technical objects.
sive reporting to stakeholders. Furthermore, the linkage between measuring points,
Measurements or counter readings can be recorded for each object requiring mainte- counters, and SAP S/4HANA for EHS environment management and SAP S/4HANA for
nance. These readings document an object’s condition or guide maintenance based on EHS workplace safety supports the entire product lifecycle, from design to disposal, fos-
meter data. Each measuring point or counter is linked to a specific characteristic (e.g., tering continuous improvement in sustainability practices and aligning manufactur-
kilometers, liters, operating hours), determining the unit in which readings are ing operations with eco-conscious principles.
recorded. For instance, ratio could use percent, and temperature might use degrees Cel-
sius or degrees Fahrenheit.

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6 Intelligent Assets
Permits
The work clearance management functionality as part of the permit to work solution
offers a systematic approach to ensure the secure and effective completion of opera-
tional and maintenance tasks on a worksite. It organizes the handling of risky activities,
diminishing potential hazards, and elevating the safety of personnel, equipment, and
the environment. For instance, during emergency maintenance at nuclear facilities
with elevated risks such as radiation exposure, the permit to work system establishes
safety protocols to alleviate dangers. While it doesn’t eliminate risks entirely, it delin-
eates secure procedures. Authorized personnel utilize official work permits that out-
line tasks, prerequisites, and precautions for executing high-risk tasks.
The permit to work system in work clearance management enhances the management
of work permits through the utilization of SAP Fiori apps. The initiation of work per-
mits takes place during the planning of maintenance, generated from predetermined
templates alongside correlated work orders. These templates correspond to job requi-
sites and safety standards, necessitating approval prior to implementation. The system
optimizes the life span of work permits, guaranteeing the establishment and adher-
ence to safety protocols before task commencement. Permit to work functions as a cru-
cial operational safety measure, guarding against unfavorable results while facilitating
efficient and protected task execution.
The integration of permits and work clearance management with SAP S/4HANA for
EHS workplace safety assumes a pivotal role in the “empowering people” facet of Indus-
try 4.0. It contributes to the creation of a secure work environment through thorough
monitoring and control, fostering maximal productivity.
Warranty
A warranty outlines the services a company provides in case of issues or damage to
technical objects such as equipment, functional locations, and so on. It’s a commit-
ment from manufacturers, suppliers, or vendors to offer services, partially or entirely
without charge, for a specific time frame. Warranties are crucial in business transac-
tions such as purchasing, sales, and product maintenance. For example, when you pur-
chase a new product, the manufacturer provides a guarantee covering a set period or
specific usage. Similarly, when selling or renting a product, legal obligations might
require offering a warranty. Providers of services might need to provide a written guar-
antee to protect both themselves and customers.
Before issuing warranties for individual items, defining fundamental conditions and
requisites is essential. These specifics can relate to your company, products, customers,
or regions, varying between countries or areas. Warranty claim processing is a seam-
lessly integrated cross-application component within the SAP solution, spanning mas-
ter data management, pricing, warranty checks, measurement documentation,
financial postings, and warranty data evaluation.
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6.3 SAP S/4HANA Asset Management
SAP Warranty Management is capable of gathering data from connected machines.
This data aids in early identification of warranty issues, preempting claims, and
enhancing overall machine performance. The solution employs big data analytics to
discern trends and patterns within warranty data, which is valuable for product design
enhancement and process optimization. Utilizing AI, it automates tasks such as claim
processing and data analysis, freeing up employees and boosting warranty process effi-
ciency. With cloud deployment options, organizations of any size can access SAP War-
6
ranty Management, reducing costs and enhancing scalability. In the context of
Industry 4.0, this tool uses progressive technologies such as connected machines, big
data, AI, and the cloud, effectively elevating efficiency, effectiveness, and customer sat-
isfaction in warranty management.
Maintenance Plan
A maintenance plan is essential for predictive or preventive maintenance. The Mainte-
nance Plan app facilitates the creation, modification, and display of maintenance plans
of different types, including time-based and performance-based single-cycle plans,
strategy plans, and multiple-counter plans. Single-cycle plans and strategy plans are
integral to portraying maintenance cycles in distinct ways:
쐍 Single-cycle plans
These demonstrate straightforward maintenance cycles. A single-cycle plan
involves creating a plan with precisely one time-based or performance-based cycle,
specifying the interval for executing the maintenance.
For example, an instance could be the annual maintenance or the repair of a photo-
copier after every 10,000 copies.
쐍 Strategy plans
These depict intricate maintenance cycles. In a strategy plan, a maintenance strategy
is assigned, encompassing predefined maintenance cycles (packages). A mainte-
nance strategy includes comprehensive scheduling details and can be linked to
numerous maintenance plans and task lists.
For example, strategy plans are optimal when varying maintenance tasks for a car
are due at different intervals, such as oil checks every 900 miles and oil changes
every 5,000 miles.
Maintenance Task List
The maintenance task list in SAP S/4HANA Asset Management addresses both recur-
ring and planned maintenance needs. This encompasses various activities such as
inspections, preventive maintenance, and planned repairs. The utilization of mainte-
nance task lists for planned maintenance provides several advantages:
쐍 Enhanced resource planning
This leads to more effective management of resources such as workforce and mate-
rials, resulting in improved operational efficiency.
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6 Intelligent Assets 6.3 SAP S/4HANA Asset Management

쐍 Enhanced production planning
The collaboration between plant maintenance and production is streamlined, lead-
ing to better insights into planned shutdowns and their implications on production
processes.
쐍 Increased machine availability
The implementation of planned preventive maintenance practices helps in mini-
mizing unexpected downtime, consequently boosting the availability of machines.
Types of task lists available include equipment task lists, functional location task lists,
and general task lists.
Personnel Number
Personnel number serves as the HR-related business entity employed to encompass all
varied data pertaining to an employee.
Business Partner
In SAP S/4HANA, the business partner concept is essential for generating master data,
encompassing individuals, groups, and organizations. This includes entities such as
customers, vendors, and personnel numbers. Notably, each personnel number necessi-
tates an associated mandatory business partner.
SAP User
For accessing an SAP system, each user requires an SAP user, housing distinct logon
parameters, consolidated roles with corresponding access privileges, and more. This
SAP user is linked with the personnel number (and the associated business partner).
Thus, when a user initiates a logon to an SAP S/4HANA system, all the diverse view-
points and data perspectives applicable to that user are encompassed.
present and projected utilization of work centers, construct schedules, and ascertain
necessary capacities prior to dispatching the scheduled work. This component helps
in effectively managing resources to match maintenance demands and ensure
streamlined operations.
Apart from these two key components, SAP S/4HANA Asset Management has another
component known as SAP S/4HANA solution for spatial asset management that can
play pivotal role in your journey with Industry 4.0. The SAP S/4HANA solution for spa- 6
tial asset management allows you to view and track movable assets and plan their
maintenance. It enables you to develop geospatially enriched business data.
Maintenance Management
Maintenance management has two distinct parts: maintenance planning and mainte-
nance execution. Maintenance planning is applicable for preventive or predictive
maintenance scenarios. For the rest, only maintenance execution is used.
Maintenance planning involves establishing schedules and outlining tasks to be exe-
cuted for technical assets such as equipment and functional locations, aiming to avert
equipment breakdowns and mitigate production losses. Crucially, the effectiveness of
maintenance planning hinges on master data elements such as maintenance plans and
maintenance task lists. The diagram depicted in Figure 6.6 elucidates the constituents
and procedural sequence inherent to maintenance planning. Ultimately, maintenance
plans yield maintenance orders, which serve as comprehensive planning aids for the
execution of maintenance tasks.
Maintenance Strategy Maintenance Plan Maintenance Order

Maintenance Strategy Maintenance Schedule Scheduled Calls

Asset Management Business Functions
SAP S/4HANA Asset Management has two key functions.
Maintenance Packages:
쐍 Maintenance management • Time-based Maintenance Items Maintenance Orders
• Performance-based
쐍 Resource scheduling • Counter-based

SAP S/4HANA Asset Management’s maintenance management function is centered

around efficiently planning, executing, and overseeing maintenance tasks for assets.
This aspect includes capabilities such as creating work orders, scheduling maintenance, • Functional Locations
• Equipment
implementing preventive and predictive maintenance strategies, monitoring asset • Assemblies
conditions, managing spare parts, and facilitating mobile maintenance. The overarch-
Activities:
ing aim is to optimize asset performance, boost reliability, extend asset lifecycles, and
• Equipment Tasklists
minimize operational interruptions. • Function Location Tasklists
• General Tasklists
The resource scheduling facet of SAP S/4HANA Asset Management offers insights into
maintenance workloads and available capacities for ongoing and future maintenance
Figure 6.6 Elements of the Maintenance Plan
activities. By utilizing the resource scheduling applications, users can assess the

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6 Intelligent Assets
Maintenance orders encapsulate detailed planning facets encompassing task types,
scope, timelines, and resource allocation. Beyond detailed planning and monitoring,
maintenance orders encompass directives for account assignment, settlement, bud-
geting, and the allocation and settlement of costs resulting from maintenance activi-
ties. Diverse types of maintenance orders can be discerned, as follows:
쐍 Preventive maintenance orders
Released per planned maintenance schedules upon reaching due dates.
쐍 Planned orders
Stemming from maintenance notifications such as malfunctions and maintenance
requests.
쐍 Unplanned orders
Created for immediate actions necessitated by unforeseen circumstances.
쐍 Calibration orders
Catering to calibration tasks.
쐍 Refurbishment orders
Refurbishment of maintenance spares as a cost saving measure compared to brand
new purchase and replacement.
쐍 Capital investment orders
Used for settling the costs of an investment measure to an asset under construction.
Investment measures are used to create new assets or maintain existing assets to
increase their value, which must then be capitalized.
Maintenance orders can undergo internal processing, being managed by in-house person-
nel, or can be externally processed by assigning them to external entities for execution.
Note
In addition to maintenance tasks planning, there are a couple of more important seg-
ments to focus on in terms of maintenance planning: planning of materials and services.
Materials in this case refers to MRO materials or spare parts, and service here refers to
maintenance-related services required. Based on the BOM, when spares get assigned to a
maintenance order, the material reservation (for stock item) or purchase requisition (for
nonstock item or external service requirement) gets generated. These reservations or
purchase requisitions are the demands for the procurement/inventory management
department to fulfill to ensure seamless maintenance functioning. SAP S/4HANA con-
sumption-based planning or demand-driven MRP (DDMRP) can be applicable to ensure
spare availability. For more precise planning requirements, you can implement SAP Inte-
grated Business Planning for Supply Chain (SAP IBP) and use it for MRO activities.
Once the maintenance order gets generated, maintenance execution starts. In case of
unplanned, emergency, or breakdown maintenance, maintenance execution starts
with a maintenance notification. A maintenance notification is information sent to the
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6.3 SAP S/4HANA Asset Management
concerned department indicating a malfunction/breakdown. Following are the most
commonly used types of notification:
쐍 Malfunction report
쐍 Maintenance request
쐍 Activity report
A malfunction report describes a malfunction at an object that affects its performance 6
in some respect. A maintenance request is a targeted instruction to the maintenance
department to perform an activity in the manner described. The decisive factor in this
case is that there is no malfunction. An activity report describes a maintenance or ser-
vice activity already performed, or one that wasn’t the result of a malfunction or dam-
age. It simply provides technical documentation of which activities were performed
when and with what results. Activity reports are therefore used for the technical confir-
mation of maintenance or service activities.
Apart from these three types of notification, service notification also exists through
which customer notifications are created and managed in the areas of maintenance
management and customer service.
In the era of Industry 4.0, there can be several sources of maintenance notifications.
Maintenance notification can be generated manually by shop floor operators when they
experience any issue with machines. Notifications can be raised with reference to a prod-
uct defect as well. In case of a connected machine or plant, maintenance notifications can
be generated based on feedback from IoT devices of permissible limit violations of any
parameters. For OEM, customers can also trigger notifications in collaborative environ-
ments that can be handled in collaboration with the suppliers as well.
Following thorough validation of the maintenance notification, a maintenance order is
generated with reference to the validated notification. Within the maintenance order,
the maintenance planner undertakes the process of planning the maintenance opera-
tions. This involves scrutinizing and confirming the maintenance tasks and schedules,
making necessary adjustments to the required materials (MRO/spares) essential for the
scheduled maintenance tasks, as well as including or excluding external services neces-
sary for task completion. Once these elements, encompassing activities, schedules,
safety precautions (e.g., permits), planned consumables (materials/services), antici-
pated costs, and settlement objects, have undergone meticulous validation, the mainte-
nance planner proceeds to authorize the release of the maintenance order.
Upon release, the maintenance supervisor is entrusted with obtaining a printed ver-
sion of the maintenance order and overseeing its execution through the utilization of
maintenance resources such as operators and equipment. In parallel, the inventory
clerk or warehouse personnel initiate the process of withdrawing components from
warehouse storage bins or triggering the requisite procurement procedures, as deemed
suitable. In scenarios involving service requirements, the procurement department
initiates the necessary procedures for service procurement.
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6 Intelligent Assets 6.3 SAP S/4HANA Asset Management

Simultaneously, the designated maintenance personnel responsible for the execution

Corrective Maintenance
of tasks consumes the stipulated materials (MRO/spares) or services by confirming the
Schedule Check and
service entry sheet in alignment with the service order associated with the mainte- Notification Order
(Optional) Release
Execute Confirm Settlement Complete

nance order. Furthermore, the maintenance personnel are also responsible for con- Standard Process – Available for all deployment models
firming the labor hours expended during the completion of individual maintenance
activities within the order. This meticulous record-keeping serves to actualize the cost Maintenance Process Using the Phase Model
allocation for the maintenance order.
Initiation Screening Planning Approval Preparation Scheduling Execution Settlement Complete 6
Subsequently, the maintenance planner or controller performs a comprehensive
Detailed planning as required in highly regulated industries—available for various scope items
assessment to verify the fulfillment of all maintenance tasks within the order. Upon
confirming task completion, the order is declared as “Technically Completed,” thus
paving the way for the finalization of maintenance cost settlement to the appropriate Maintenance Process Using the Phase Model

recipient. Ordinarily, maintenance costs are settled to a designated maintenance cost Report Plan Execute Document Complete

center. However, in the context of investment measures, costs may be allocated to

Simplified processing of urgent tasks
project work breakdown structure (WBS) or to asset under construction categories.
Following the settlement process, the maintenance controller culminates the mainte- Figure 6.7 Overview of Maintenance Processing Models
nance order processing through the formal “business completion” of the maintenance
order, signifying its closure. Because the aspects of planning and executing maintenance have been covered, let’s
now delve into the analytical capabilities of SAP S/4HANA Asset Management. The ana-
lytical features within SAP S/4HANA Asset Management offer a comprehensive array
Note
of tools for overseeing, scrutinizing, and optimizing maintenance operations. By har-
While discussing the general maintenance order execution process, it’s important to
nessing insights derived from data, organizations can refine their maintenance
mention that SAP has the capability to equip the maintenance personnel with mobility
approaches, curtail expenses, minimize periods of inactivity, and prolong the opera-
and offline working capability. SAP Service and Asset Manager and SAP Maintenance
tional life of their assets. The discussion regarding SAP S/4HANA Asset Management
Assistant are two products that require separate licenses and are suitable in this
regard. Functionalities of SAP Service and Asset Manager will be discussed in detail in analytics can be organized around the categories of data pertinent to maintenance
Chapter 7, Section 7.4. business functions, as listed in in Table 6.1. For instance, analytics concerning master
data would encompass a range of analyses tied to technical objects, maintenance work
centers, task lists, maintenance plans, and the like.
When implementing SAP S/4HANA Asset Management, the question arises regarding
which process variants you want to use for structuring your maintenance processes. Steps Content Role Integration
This especially depends on the requirements which your company has during the
Master Technical objects/work Engineer/Mainte- AM/CO/FI-AA
screening of maintenance requests as well as during the planning and approval of
data center/task lists/mainte- nance Planner
maintenance orders. Depending on the various requirements, there are different
nance plans
approaches for modeling the maintenance process. The main variants, as depicted in
Figure 6.7, are as follows: Transaction Maintenance history: Maintenance Team AM/MM/FI/CO
data notifications/orders/
쐍 Corrective maintenance material consumptions/
쐍 Processes using the phase model costs
– Proactive maintenance Embedded CDS views, Maintenance Manager AM/MM/FI/CO/SAP
– Reactive maintenance analytics SAP Fiori–based analysis HANA

– Improvement maintenance
Table 6.1 Analytics with SAP S/4HANA Asset Management
– Operational and overhead maintenance
쐍 Emergency maintenance

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 6 Intelligent Assets 6.3 SAP S/4HANA Asset Management

The tracking phase comes into play once the execution of maintenance begins with a
Steps Content Role Integration
designated work center. Operation confirmation can be initiated once it’s observed to
Strategic Multiple systems: SAP Maintenance Manager AM/MM/FI/CO/ be accomplished. Subsequently, the review process ensues, constituting an ongoing
analytics Business Warehouse SAP BW/SAP Business-
cycle. Essential actions can be initiated from a unified dashboard, based on observa-
(SAP BW)/SAP Business- Objects BI/SAP HANA
Objects BI analysis
tions made by the maintenance planner.
SAP S/4HANA Asset Management for resource scheduling contains following apps to
Table 6.1 Analytics with SAP S/4HANA Asset Management (Cont.)
work with: 6
쐍 Resource Scheduling and Maintenance Planner app
Resource Scheduling The Resource Scheduling and Maintenance Planner app facilitates the monitoring of
SAP S/4HANA Asset Management for resource scheduling necessitates a distinct vital KPIs for work centers. The utilization of work centers in the current week and
licensing. SAP S/4HANA Asset Management, which includes resource scheduling, is the following one, priority evaluation of pending maintenance orders within the
adaptable for deployment either in the cloud or on-premises. To grasp the concept of subsequent four weeks, unconfirmed maintenance orders comprising at least one
resource scheduling, comprehending the role of resources within the maintenance order operation with a planned end date within the preceding six months, unallo-
function is essential. In this context, a resource can be characterized as an individual or cated tasks within work centers, and forthcoming, ongoing, and recent schedules are
a designated work center that can be allocated to a maintenance order or specific order
the KPIs encompassed by the app’s provisions.
operation.
쐍 Manage Work Center Utilization app
The operational procedure for resource scheduling can be broadly divided into four The Manage Work Center Utilization app supports the analysis and control of work
distinct stages—planning, freezing, tracking, and review—as illustrated in Figure 6.8.
center utilization. An array of maintenance order operations and suboperations
During the planning phase, maintenance planners allocate maintenance tasks or oper-
within the assigned work centers can be reviewed, encompassing vital details such
ations to specific work centers, taking into account their available capacity. Following
as maintenance order specifics, priority, planned start and end dates, and requisite
the completion of the planning for a set of work centers, the maintenance planner or
work. A compilation of maintenance orders featuring at least one operation in the
another responsible individual conducts a comprehensive review of the overall plan
designated work centers can also be viewed. Visualization of usage can be tailored
and makes adjustments if necessary to optimize maintenance operations.
using attributes such as work center, processing status, priority, or order type. The
capacity usage visualization applies to all or a subset of work centers.
Additionally, one or multiple order operations or suboperations can be dispatched
Plan Finalize/Freeze Track Review
or cancelled simultaneously. Alterations in the scheduling, such as shifting order
operations to an alternative date or work center, can balance the utilization across
Review
Select Share For Track
Schedule
work centers, as depicted in Figure 6.9. The selection of maintenance orders and
Operations Review Operation
Attainment order operations for scheduling; modification of available daily work center capac-
ity for a chosen week; and navigation to orders, technical objects (functional loca-
Add to Review Execute
Schedule Schedule Operation
tion, equipment), and work centers within the relevant app are all integral
functionalities. Furthermore, navigation to the maintenance schedule for an asset
(functional location, equipment) can also be effortlessly accomplished.
Check
Dispatch Confirm
Utilization 쐍 Manage Schedules app
The Manage Schedules app empowers users to establish and supervise schedules for
Schedule Freeze maintenance order operations intended for specific target weeks, as shown in Figure
Refine Schedule
6.10. The app offers several key features, including setting up schedules for defined
9 Use Standard Work Center 9 Optimize Work Center Utilization periods, assessing projected work center utilization at schedule and day levels, itera-
9 Simulate Multiple Schedule 9 Track Schedule Attainment tively adjusting schedule scopes until they are ready for finalization, facilitating col-
laboration by sharing schedules with fellow maintenance planners and reviewers,
Figure 6.8 Resource Scheduling Process Flow Diagram enabling automatic or manual scheduling for order operations, achieving work center

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6 Intelligent Assets
balance by reassigning operations or rescheduling, using a visual representation to
swiftly identify clashes and interconnections, dispatching all scheduled operations
simultaneously, monitoring execution, evaluating schedule attainment, engaging in
discussions, and tracking changes through the activity log.
Figure 6.9 Flexible Schedule Periods in the Manage Work Center Utilization App
Figure 6.10 Manage Schedules App: Paging through the Periods (e.g., Weekly)
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6.3 SAP S/4HANA Asset Management
쐍 Maintenance Scheduling Board app
The Maintenance Scheduling Board app offers a visual representation of mainte-
nance orders, order operations, and suboperations within work centers, presented
on a timeline interface. Its key features include the ability to view hierarchical struc-
tures of these elements, assign work centers, apply filters, access detailed informa-
tion, interact with associated technical objects, relocate operations to balance work
center usage, rearrange tasks through drag and drop, dispatch and cancel opera-
6
tions, manage relationships between tasks, set offsets for breaks, display con-
straints, personalize layouts, trigger scheduling, and adjust work center capacity for
specific weeks.
쐍 View Maintenance Schedule for Asset app
The View Maintenance Schedule for Asset app provides an organized view of assets
in their hierarchical arrangement, allowing visualization of maintenance windows
and planned shutdowns to facilitate strategic maintenance planning. Key features
encompass the display of subassets installed under a superior asset, visibility of
associated maintenance orders and items for the next four weeks, and a graphical
representation of rolled-up information from maintenance orders at the asset,
order, and item levels in a Gantt chart to promptly identify maintenance occur-
rences and potential shutdowns. Additionally, the app enables sharing of mainte-
nance schedules, accessing superior asset schedules, opening relevant apps for
maintenance orders and assets, identifying asset downtime-needing orders, reveal-
ing maintenance events in the chart for available maintenance windows, and link-
ing to other apps for further action. This app can be accessed through the
Maintenance Scheduling Board app and the Manage Work Center Utilization app.
쐍 Assign Maintenance Order Operation app
The Maintenance Order Operation app allows for the allocation of maintenance order
operations to designated responsible individuals, along with the flexibility to modify
or remove these assignments. The app’s primary functionalities include assigning
maintenance order operations to responsible personnel, altering assignment owner-
ship for such operations, and unassigning individuals from their responsibilities.
Additionally, users can allocate work centers to themselves through this app.
To summarize briefly, SAP S/4HANA Asset Management for resource scheduling offers a
KPI dashboard for maintenance planners, providing an overview of due maintenance
orders, insights into work center utilization, and the ability to track maintenance back-
logs. The system also facilitates maintenance schedule simulation, enabling the creation
and sharing of schedules for collaboration and optimization, as well as dispatching mul-
tiple activities for execution. The app presents a graphical representation of mainte-
nance activities, allowing easy tracking of work status and execution progress while
supporting the adjustment of activities to balance work center usage. This assists organi-
zations in gaining insights into current and projected workloads, swiftly locating open
work orders, optimizing schedules through simulation analysis, and effectively using
maintenance resources. Ultimately, the solution aids in reducing asset downtime and
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6 Intelligent Assets
enhancing overall productivity by grouping and scheduling maintenance orders by
asset, considering planned downtime tasks, and identifying dependencies.
Spatial Asset Management
SAP S/4HANA for spatial asset management is a solution within the SAP S/4HANA
Asset Management suite that focuses on enhancing asset management processes by
incorporating geographic and spatial data. This solution enables organizations to visu-
alize, monitor, and manage their assets in relation to their geographic location, leading
to improved decision-making, optimized maintenance strategies, and enhanced oper-
ational efficiency.
Note
For example, consider a utility company that manages a network of power distribution
assets. With SAP S/4HANA for spatial asset management, the company can integrate
geographic information system (GIS) data into its asset management processes. This
allows them to visualize the locations of power poles, transformers, and substations on
a map. By overlaying maintenance schedules and historical performance data onto the
map, the company can identify areas that require more frequent maintenance due to
environmental conditions or high usage. This geospatial insight helps the company
allocate resources effectively, plan maintenance activities based on proximity, and
make informed decisions to ensure uninterrupted power supply in critical areas.
The utilization of the SAP S/4HANA for spatial asset management solution necessitates
an independent license. This solution encompasses two distinctive components:
쐍 Linear asset management
Linear assets encompass technical systems featuring a linear infrastructure, with
variable conditions and properties along their lengths (dynamic segmentation).
Illustrative examples of linear assets are pipelines, roads, railway tracks, and over-
head power lines. These linear assets can be established as technical objects, storing
relevant linear data. Linear asset management offers functionalities for describing,
visualizing, and overseeing linear assets. Maintenance tasks can be executed for
these technical objects, yielding notifications, maintenance orders, and measure-
ment records. This comprehensive approach facilitates the tracking of linear asset
conditions, identification of damage or defects using start and end points, offset
measurements, and management of diverse maintenance tasks encompassing
planned, unplanned, and preventive activities.
쐍 Geographical Enablement Framework
The Geographical Enablement Framework is a tool for extracting valuable insights
from business data. It renders SAP Enterprise Asset Management (SAP EAM) busi-
ness objects such as equipment, functional locations, maintenance orders, and
maintenance notifications on a map, enabling users to analyze data with a geo-
graphical context. Geospatial data can be associated with technical objects created
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6.3 SAP S/4HANA Asset Management
through SAP Web UI or SAP GUI; for the latter, you can assign the spatial data in the
Geo-editor app in SAP Fiori. Notifications and orders can be analyzed on a map if
created through specific apps or transactions. The solution incorporates configu-
rable layers, akin to the GIS, to control data displayed on the map, aiding in identify-
ing correlations among objects for informed decisions.
Furthermore, this framework offers the ability to overlay external base maps and
reference layers, enhancing data interpretation. After analysis, users can initiate 6
business processes directly from the map, benefiting from streamlined workflows
and improved decision-making. Key benefits include accelerated data analysis, effi-
cient resource dispatching, and minimized customer outages. To utilize this frame-
work, prerequisites include proper configuration, licensing, and activation of the
relevant business function. The framework enhances the Geo Explorer and Geo Edi-
tor display, enabling the assignment of geospatial data to technical objects, mainte-
nance notifications, and orders. Automatic copying of geospatial data occurs
between objects, and the solution offers functionalities such as creating mainte-
nance notifications and orders in the Geo Explorer.
Note
The Geographical Enablement Framework doesn’t support linear asset management. The
migration of geospatial data using the SAP S/4HANA migration cockpit isn’t supported.
6.3.2 Architecture and Integration
SAP S/4HANA Asset Management occupies a pivotal role in an organization’s journey
toward embracing Industry 4.0 principles. It serves as a central hub for housing essen-
tial master data and the majority of transactional data pertaining to asset mainte-
nance. This centrality positions it as a critical component in establishing a connected
and intelligent operational landscape. Consequently, it becomes imperative to discern
the array of products that SAP S/4HANA Asset Management can seamlessly interface
with, whether from the SAP ecosystem or external components. Understanding these
interactions is paramount in comprehending how this amalgamation of elements, in
conjunction with SAP S/4HANA Asset Management, can effectively steer the Industry
4.0 transformation journey.
Notably, SAP S/4HANA Asset Management is intrinsically interwoven with various
other business functions, encompassing materials management, production, quality
management, inventory management/warehouse management, human resources,
financial accounting, asset accounting, investment management, project management,
and so on. This integration establishes a cohesive framework where asset management
harmoniously interfaces with these diverse operations.
Addressing the requisites of Industry 4.0, which underscore connectivity and real-time
insights, SAP S/4HANA Asset Management is engineered to interact synergistically
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 6 Intelligent Assets 6.3 SAP S/4HANA Asset Management

with an array of solutions. This includes the intelligent suite solutions, industry cloud
solutions, and business network solutions. This integration not only amplifies connec-
tivity but also facilitates the assimilation of real-time insights along with empowered
resources, which are pivotal in realizing the Industry 4.0 ethos.
Visualizing this interconnected ecosystem, Figure 6.11 portrays the architectural layout
and integration facets of SAP S/4HANA Asset Management, capturing its pivotal role in
orchestrating Industry 4.0’s transformative paradigm.
SAP Business Technology Platform
SAP Asset Strategy and
events for messaging, real-time business event triggers, queue processing, and configu-
ration support. In hybrid setups involving on-premise SAP S/4HANA and cloud-based
asset management apps, the integration component supports data replication and syn-
chronization patterns.
After assembling master data for all SAP Intelligent Asset Management components, the
focus shifts to comprehending the flow of transactional data from machines to SAP
S/4HANA Asset Management and other associated SAP functionalities. IoT capabilities in 6
SAP can directly extract data from machine sensors. In some instances, sensor or histo-
rian data can be channeled to the IoT capability in SAP via mechanisms such as SAP Plant
Connectivity or the production connector for SAP Digital Manufacturing. Currently, IoT

Safety Control
Performance Management capabilities are equipped to transmit machine data exclusively to SAP Predictive Asset
Production SAP Predictive Asset Insight
Data Connector Insights. Subsequently, SAP Predictive Asset Insights facilitates the distribution of
DCS PLC/SCADA Historians or SAP Plant SAP Business Network Asset Collaboration
Real-
Time
Connectivity machine data in tandem with business transactions across pertinent systems, including
SAP Service and Asset Manager
Devices
SAP S/4HANA Asset Management. For analytical requirements, SAP Predictive Asset
On- SAP 3D
Demand,
Advance Control Near Real- SAP S/4HANA
Visual
Enterprise
Insights can send data directly to SAP Analytics Cloud or via SAP Datasphere.
Time
IoT
Plant Databases Real- Asset
SAP Environ-
ment, Health,
SAP Extended
Warehouse
To uphold the foundational tenets of Industry 4.0, SAP S/4HANA Asset Management
Time Central
Measurement and Safety Management
Documents
Foundation
Management System aligns with SAP S/4HANA for EHS workplace safety and SAP SuccessFactors to empower
“Smart” Vehicles
SAP S/4HANA Asset individuals, ensuring a secure, compliant, and safe work environment. In scenarios
Management necessitating meticulous planning to ensure uninterrupted maintenance needs, inte-
SAP S/4HANA Core Functionality
(Production Planning, Quality Management, gration between SAP S/4HANA Asset Management, SAP Extended Warehouse Manage-
Materials Management, Controlling, Etc.)
ment (SAP EWM), and SAP IBP MRO functionalities can be established. This synergy
guarantees the availability of materials for seamless maintenance demands.
SAP SAP SAP Analytics
SuccessFactors
SAP IBP
Datasphere Cloud SAP 3D Visual Enterprise Viewer offers the ability to visualize technical objects, spare
parts, and instructions within both the SAP Web UI and SAP GUI transactions for SAP
Figure 6.11 Architecture and Integration Layout of SAP S/4HANA Asset Management with S/4HANA Asset Management. In the SAP Web UI, it can be accessed through the busi-
Connected Assets ness package for generic enterprise access management (EAM) functions. The viewer’s
inclusion of 2D and 3D model views, along with animated scenes, enhances mainte-
nance processes, expediting tasks such as locating necessary spare parts and perform-
Note ing maintenance operations. Users are limited to viewing only approved 2D images
The availability of integrations may vary based on the version of SAP S/4HANA and the and 3D scenes from within their organization. The integration of SAP 3D Visual Enter-
specific modules or products that an organization has implemented. Integration sce- prise Viewer empowers users to achieve tasks such as displaying graphical representa-
narios should be planned and implemented based on the organization’s requirements tions of equipment and functional locations, selecting spare parts using 2D or 3D
and objectives. images, and implementing multistep visual instructions.

SAP S/4HANA serves as the central repository for asset management master data, coor-
dinating seamlessly with the asset central foundation to address Industry 4.0 require-
ments. The asset central foundation encompasses the technology supporting SAP
Business Network Asset Collaboration, SAP Predictive Asset Insights, and SAP Asset
Strategy and Performance Management, which are accessible to customers through rel-
evant licenses. Integration capabilities ensure consistent asset master data between SAP
S/4HANA and the asset central foundation, relying on components such as data model
alignment, open REST application programming interfaces (APIs) for connectivity,
6.3.3 Key Benefits
Benefits offered by SAP S/4HANA Asset Management are well-aligned with the princi-
ples and goals of Industry 4.0. The platform’s holistic approach, data-driven decision-
making, predictive maintenance capabilities, and focus on sustainability all contribute
to a seamless integration of maintenance operations within the Industry 4.0 frame-
work. By using these benefits, organizations can position themselves to thrive in the
era of interconnected and automated manufacturing. Let’s delve deeper into how the

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key benefits of SAP S/4HANA Asset Management align with the principles and require-
ments of Industry 4.0 as follows:
쐍 Holistic maintenance management
In the context of Industry 4.0, where interconnectedness and automation are para-
mount, SAP S/4HANA Asset Management’s holistic approach becomes even more
valuable. Industry 4.0 emphasizes seamless integration across the entire value
chain. By covering the entire maintenance process from demand processing to plan-
ning and execution within a unified system, SAP S/4HANA supports this integration
and contributes to the realization of Industry 4.0’s interconnected vision.
쐍 Smart maintenance scheduling and resource allocation
Industry 4.0 thrives on data-driven decision-making and optimization. SAP S/4HANA
Asset Management’s smart scheduling and resource allocation align perfectly with
this principle. By using real-time data and advanced algorithms, the system optimizes
the allocation of human resources, tools, and materials. This not only enhances oper-
ational efficiency but also aligns with the goal of intelligent automation and optimiza-
tion that Industry 4.0 aims to achieve.
쐍 Real-time analytics and cost insights
Industry 4.0 emphasizes the importance of real-time insights to drive informed
actions. SAP S/4HANA Asset Management’s real-time analytics capabilities align with
this by providing immediate visibility into maintenance costs, breakdown rates, and
damages. This empowers organizations to make agile decisions based on accurate data,
contributing to the nimble and data-responsive nature of Industry 4.0 operations.
쐍 Asset performance monitoring and proactive issue detection
Industry 4.0 envisions a shift from reactive to proactive operations. SAP S/4HANA
Asset Management’s asset performance monitoring and proactive issue detection
resonate with this shift. By continuously monitoring asset health and using predic-
tive analytics, organizations can anticipate and address potential issues before they
escalate. This predictive approach aligns with Industry 4.0’s focus on minimizing
downtime and maximizing operational efficiency.
methodologies such as failure mode and effects analysis, checklists, risk and criticality
assessments, and reliability centered maintenance (RCM). The access strategy, engineer-
ing, and master data maintenance execution information of assets can be managed in
one central place as a single source of truth. The single source of truth is shared among
operator, original equipment manufacturers (OEM), and service provider for a collabo-
rative business approach.
Two key approaches can help to derive optimal maintenance strategies: the previously 6
mentioned reliability centered maintenance (RCM) and failure mode effects analysis
(FMEA). RCM clarifies the primary functions of the asset, functional failure, cause of
functional failure, effect of failure and recommendations to mitigate the effects. FMEA
can determine the way the equipment can fail and effects analysis.
6.4.1 Key Functionality
In this section you’ll learn about the key functionalities of SAP Asset Strategy and Perfor-
mance Management. SAP Asset Strategy and Performance Management helps to enable
a better decision-making approach for maintenance planning to assess failure probabil-
ity. As SAP Asset Strategy and Performance Management uses RCM and FMEA processes,
it helps to optimize the performance of assets and improves the maintenance strategy by
reducing bottlenecks and enhancing the decision-making strategy. SAP Asset Strategy
and Performance Management provides multiple key functionalities—define systems
and assets to analyze, asset risk and criticality analysis, perform asset assessment (RCM/
FMEA/preventive maintenance review [PMR]) analysis), develop recommended actions,
implement maintenance strategies, and monitor and continually reevaluate—as shown
in Figure 6.12.
Define Identify
Define
Asset Risk and
Systems and
Criticality
Assets to
Analysis
Analyze

쐍 Comprehensive environment, health, and safety (EHS) management

Industry 4.0 promotes a responsible and sustainable approach to manufacturing.
Verify Analyze
SAP S/4HANA Asset Management’s integration of EHS management aligns with this SAP Asset
Monitor and Strategy and
emphasis on sustainability. By ensuring compliance with environmental and safety Continually
Perform Asset
Reevaluate Performance Assessment
regulations, organizations contribute to ethical and responsible operations, a core Management
principle of Industry 4.0.

Implement Recommended
6.4 SAP Asset Strategy and Performance Management Implement Develop
Maintenance Recommended
SAP Asset Strategy and Performance Management is a cloud-based solution that helps Strategies Actions

manufacturers improve the performance of assets and optimize the performance strat-
egy. The optimal performance strategy is determined by using multiple assessment and Figure 6.12 Key Functionalities of SAP Asset Strategy and Performance Management

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6 Intelligent Assets 6.4 SAP Asset Strategy and Performance Management

Define Systems and Assets to Analyze
This app provides the information related to administrative activities to define the sys-
tem and asset-related master data. To start with defining the asset information, you
need to define a template, which represents a format to maintain metadata for the
model, equipment or location. A template consists of attributes and attribute groups
identified by unique names. It also inherits the metadata from its parent template. You
also need to define multiple objects, as shown in Figure 6.13.
Start
helps to create the location and assign it to the equipment. The location template
allows users to add values to definitions used in the template. A location can have three
statuses: Unpublished, In Revision, and Published.
쐍 Group
A group is used to group different business objects of similar types, functions, and
attributes for multiple purposes, as business objects aren’t always required to be
related by model, location, or function/system only. You can find the different
6
group types and related object type relations in Table 6.2. A group can also have the
same three statuses as the location: Unpublished, In Revision, and Published.

Group Type Related Object Type

Define
Criticality assessment Equipment, locations
Define Define Define Define Define Define
Class and System Documents
Model Equipment Location Group
Subclass Fleet Equipment

FMEA Equipment, locations

Access
Risk and Training Equipment, models, instructions, locations, spare parts, templates,
Criticality
documents, announcements
Figure 6.13 Asset Information and Scope Handover and com- Equipment, models, instructions, locations, spare parts, templates,
missioning documents, announcements
The objects are described in the following list:
Maintenance planner Equipment, locations, notifications, work orders, work order steps
쐍 Class and subclass
Organization Equipment, models, locations
Asset class and subclass are based on the ISO standard and are used to define asset
models based on global standards. A class is considered the top node in the classifi- Project Equipment, models, instructions, locations, spare parts, templates,
cation structure and can have multiple child subclasses. Subclasses represent the documents, announcements
child node of a class; it’s also possible to define multiple subclasses under one top- Spare parts kit Spare parts
level subclass. Each subclass will inherit attributes and attribute groups from its par-
Variant Models, spare parts
ent class or subclass.
쐍 Model Work center Equipment, locations, notifications, work orders, work order steps

An asset model represents a specific product or object that is identified by the man-
ufacturer. The model template can be a child of a subclass or used without a parent
object. There can be multiple model templates under the top-level model template.
Each model template will inherit attributes and attribute groups from its parent
class, subclass, and model templates.
쐍 Equipment
The equipment represents the individual maintainable object in SAP Asset Strategy
and Performance Management that requires an asset maintenance strategy. It’s also
possible to use equipment templates as references for defining equipment, or it can
be done through the path of class, subclass, and model.
쐍 Location
A location in SAP Asset Strategy and Performance Management corresponds to the geo
location (virtual location) where the equipment is installed. The location application
Table 6.2 Group Type and Related Object Types
쐍 System
System is used to link or connect objects in a logical way for additional analysis pur-
poses. The system is referred as a set of interrelated equipment or subsystems that
regularly interact or are independent. They are considered as a whole and serve a
common purpose. The common examples are control systems and transmission
systems. The system can be defined based on the model, and you can assign a sys-
tem template to it.
쐍 Documents
The documents are used to store asset information, firmware, failures, and instruc-
tions, which can support performance management in SAP Asset Strategy and Per-
formance Management.

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6 Intelligent Assets
Asset Risk and Criticality Analysis:
Assessment work is used for accessing the risks for certain assets/business objects to
find the calculated score of that business object. Risk and criticality assessment is used
to find the critical assets and determining the most suitable analytical process. The crit-
icality of the asset is determined based on the risk score, which is determined by differ-
ent dimensions and scales for different impacts. Financial risks also come as a
dimension under risk assessment during risk assessment creation. Based on the result
of the criticality assessment, the suitable analysis process is selected. The risk is calcu-
lated by Probability of failure × Consequence of failure, where the risk depends more on
criticality of the equipment. In the assessment template, the threshold definition is
used to determine the criticality of the asset. You can find the key steps for risk and crit-
icality assessments in Figure 6.14.
Perform Risk
Define Risk Create
Create Impacts Create Template and Criticality
Matrix Questionnaire
Assessment
Figure 6.14 Key Steps for Risk and Criticality Assessment
To do the risk and criticality assessment for an asset, first you need to create the risk
and criticality assessment template. From the SAP Fiori launchpad of SAP Asset Strat-
egy and Performance Management, click on the Assessment Template app tile, and
select Risk and Criticality. Then, click on the New button, and fill in the required details,
along with Calculation Method for Impact and Calculation Method for Dimension. In
the Information section, you can select roles as Not Required, Mandatory, or Optional.
In the Assignment section, you can assign equipment templates, location templates,
model templates, system templates, classes, and subclasses for which the analysis
needs to be done. In the Impact section, you can assign the impact from the Select
Impact/Sections popup. You can also assign dimensions to each impact by selecting
the dimension and clicking on the Add Dimensions option. If desired, enable a dimen-
sion as Financial Risk relevant. You can set the threshold values using the Thresholds
field in the header information. Finally, to publish the assessment template, click on
Publish, and a dialog box will appear to confirm if you want to create an announce-
ment. Click OK, enter the details for the announcement, and click Save and Publish.
To create the risk and criticality assessment, you need to open the Assessment app and
navigate to Risk and Criticality. After clicking on New, the Create Assessment window
opens where you select the assessment template you created earlier. Enter a descrip-
tion as well as a risk type (Current Risk, Mitigated Risk, or Unmitigated Risk). You can
now save the configuration.
Next, you need to provide required information for Information, Assignments, Docu-
mentation, Questions, and Answers. In the Assignment tab, you need to assign the
object you want to assess. You can assign one or more pieces of equipment, locations,
groups, or systems to the assessment.
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6.4 SAP Asset Strategy and Performance Management
Click on the Assign button and select the equipment that is currently modeled. In the
Documentation tab, you can assign an existing document or upload a new document.
The Questions and Answers tab shows the questions/answers you’ve assigned in the
risk and criticality template. The subject matter expert can check and answer those
questions in the list view or matrix view and then save those by clicking the Save but-
ton. The risk is calculated based on the calculation method defined in the associated
risk and criticality template. Finally, the Risk Score will be calculated by application, and
6
you need to publish it by clicking the Publish button.
Reliability Centered Maintenance Assessment
SAP Asset Strategy and Performance Management supports RCM assessment and
FMEA assessment. RCM assessment is used mainly for high criticality systems. RCM is
defined as a process to determine what must be done to keep assets doing what their
operators want them to do in their current operating context. The RCM process is stan-
dardized through Society of Automotive Engineers (SAE) standard JA1011. Per the RCM
process, the following seven points should be addressed in the following order:
1. Functions: What are the functions and associated desired standards of performance
of the asset in its present operating context?
2. Functional failures: In what ways can it fail to fulfill its functions?
3. Failure modes: What causes each functional failure?
4. Failure effects: What happens when each failure occurs?
5. Failure consequences: In what way does each failure matter?
6. Proactive tasks and task intervals: What should be done to predict or prevent each
failure?
7. Default actions: What should be done if a suitable proactive task can’t be found?
Now, let’s look into the key features of RCM assessment. At the beginning, you need to
understand the requirements from the asset and define the operating context and the
required functions. Because the RCM process is complex, you need to engage a team
with in-depth knowledge of asset and maintenance strategy. Following are the import-
ant RCM features for assessment:
쐍 Functions
Describe all the primary and secondary functions of the asset and associated desired
standard of performance of the asset.
쐍 Functional failures
A functional failure is when an asset isn’t able to perform a specific function to a
desired performance level. Before determining the function failure, you must
understand the functions and the desired level of performance of the asset. The
asset may not be able to satisfy the functions at all, or the asset’s performance isn’t
up to the desired level.
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6 Intelligent Assets
쐍 Failure modes
The failure mode causes functional failure and there can be one or multiple causes
for failure mode. You need to check all the possible events causing the inability of
the asset to perform the desired level of performance.
쐍 Failure effects
The failure effects describe what happens when each failure occurs and determines
the scope to which failure mode is useful.
쐍 Failure consequences
There are four categories to classify the failure effects: the environment, impact on
safety, cost, and operational capability. Each failure mode effect needs to be mapped
with any of the four categories. Maintenance strategies need to be selected for each
critical failure effect.
The RCM assessment process flow is shown in Figure 6.15.
‰ First you need to create the RCM template where you need to add description, the advance
checklist template details to create consequence evaluation, relevant for information, default
currency, and risk UoM.
‰ To start the RCM assessment, you need to navigate RCM assessment tile in the SAP Fiori
launchpad.
‰ To create new RCM assessment, you can use the RCM template which is created earlier. You
can assign the asset if it is not done.
‰ You need to understand the operating context in RCM assessment.
‰ You can maintain operational context and based on that the functions and functional failures
are determined.
‰ Alongside the operational context, all the maintenance plan information is also available
context information.
‰ To find the unknown details of assets you can assign functions, functional failures, failure
modes, and effects.
‰ After entering the required data, you need a consequence evaluation of the effect. The
consequence evaluation is performed using the advanced checklist template assigned in
the RCM template.
‰ The entire RCM process is completed when the reliability engineer creates a set of
recommendations.
Figure 6.15 RCM Assessment Process
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6.4 SAP Asset Strategy and Performance Management
Perform Failure Mode and Effect Analysis Assessment
FMEA determines the failure modes, causes of failure, and impact of failure on the asset
and system. FMEA is used to identify and recognize potential failures, including causes
and effects; evaluate effects and prioritize identified failure modes; and identify and
suggest recommendations to either eliminate or reduce potential failures from occur-
ring.
To perform FMEA, follow these steps: 6
1. Create a FMEA template by navigating to Assessment Template and selecting FMEA.
2. Provide the required information there, such as Short Description, Long Description,
Relevant For field information, Default Currency, and Risk UoM.
3. In the Information tab, select the roles required for assessment. You can also see the
announcements in the Announcements section.
4. In the Assignments tab, assign the objects to the FMEA template. The object is deter-
mined based on the value selection in the Relevant For field. The values can be
Groups, Equipment, Locations, Systems, and Models.
5. In the Impacts tab, add an impact for the assessment. You can also change or remove
the impact assigned to the template.
6. Define the thresholds in the header information by choosing Thresholds.
7. Finally, publish the FMEA assessment template.
After publishing the FMEA assessment template, it’s ready for the assessment to be
done:
1. In the Assessments app, choose FMEA.
2. Choose New and then provide the required details, and save the assessment.
3. In the Information tab, enter the scope description and save it.
4. In the Assignments tab, assign the Groups, Equipment, Locations, Systems, and Mod-
els to the assessment. If an equipment with model and location is already assigned,
it’s also possible to assign more equipment to the recommended list.
5. Choose an assigned object from the list to see the details. Select the assigned object,
and select Recommendations to visualize the details.
6. To see the recommendations, assign a failure mode to the selected object if it does
not exist, assign relevant effects and define severity to the failure mode, assign
causes, and define the values to calculate the risk priority number (RPN).
You can also create recommendations for unpublished assessments from the source
such as instructions, placeholder instructions, and imported tasks lists. In Recommen-
dation Details, provide the required details, and save the recommendation. You can
also edit or delete recommendations if the assessment isn’t published. Using the Pre-
ventive Maintenance Review app, you can manage the recommendations.
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6 Intelligent Assets 6.4 SAP Asset Strategy and Performance Management

In the Documentation tab, you can upload relevant documents to the assessment. Equipment, Locations, Models, and Systems. Select checklist type Simple and click OK.
Finally, you can save and publish the assessment. After publishing the assessment, the On the checklist object page, you can perform activities listed in Table 6.3.
RPN is calculated for the cause, and the highest RPN for the cause assigned to the failure
mode is displayed. Information Assignment Tab Sections Tab Result Indica- Timeline Tab
Tab tors Tab

Checklist Assessment See and high- Find multiple Assign impacts Store the over- See all the
light any options for or sections, and all checklist changes made
Now let’s discuss the checklist assessment requirement in SAP Asset Strategy and Per- 6
announce- assignment in select relevant result as well as for the checklist
formance Management. Let’s say you’ve performed a risk and criticality assessment on
ments in the Assignments dimensions or the section data.
a piece of equipment, and the assessment result suggested a periodic maintenance Highlight and subsection such questions for result into indi-
review using a checklist assessment as the next step. You can create a blank checklist as Announcement as the ability to impacts or sec- cators.
a template depending on the class and type of asset. The checklist will be filled out and sections, assign Class, tions.
submitted to SAP Asset Strategy and Performance Management by the reliability engi- respectively. Subclass, Equip-
neer. SAP Asset Strategy and Performance Management will suggest the criticality of ment Tem-
plates, Location
the asset, and the system will suggest if reevaluation is required. You can find the
Templates and
checklist assessment use case in Figure 6.16.
System Tem-
plates.
Reliability Centered Enter checklist
Maintenance
details such as
Estimated Cost,
Perform Failure Mode Recommended
and Effect Analysis
Frequency, and
Estimated
Risk and Criticality Periodic Maintenance
Interval
Equipment Checklist Assessment
Assessment RC Low Review Required.
In the Instruc-
tions subsec-
Task or Equipment tion, assign
Template
instructions to
the template.

Checklist Score Recommendation Table 6.3 Configuring the Simple Checklist Assessment Template

Figure 6.16 Checklist Assessment Use Case
The checklist assessment supports two types of assessments: simple checklist assess-
ment and advanced checklist assessment. The simple checklist assessment provides a
list of questions you can answer to determine the result of the assessment. For the
advanced checklist assessment, the system provides you a set of questions, and, based
on your answer, the next question is determined by the system.
Like other assessments, you also need to create the checklist assessment template and
use it for the checklist assessment. To create the simple checklist assessment, go to
path Assessment Template 폷 Checklists 폷 New. Next, enter the required information,
such as Description and Long Description, and select the relevant assignments from
After maintaining all the assessment template data, you can publish the assessment
template. Next, you need to perform the checklist assessment:
1. Open the Checklist Assessments app, and click on New to create a new checklist
assessment.
2. Provide the Description and Type for the checklist assessment.
Now, you can work with the activities in the different tabs of the assessment object
page, as follows:
쐍 Assessment
In this tab, you can assign equipment, locations, models, or systems objects to the
assessment. Next, you can assign or remove a checklist template to each object

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6 Intelligent Assets
using Manage Templates. You can select multiple checklist templates for an object.
You can also find the object ID, checklist template, completion status, and checklist
result for each of the objects in the list.
쐍 Checklist
In this tab, you can find all the objects and corresponding checklist templates
assigned to the object. All the configuration performed in the checklist template is
shown in the checklist assessment. You need to answer all of the checklist questions.
For each question, select an answer and maintain the attribute and indicator values.
After answering all the questions, you can set the checklist as complete via the Com-
plete button.
쐍 Documentation
In this tab, you can add, remove, or download documents assigned to the checklist.
You can publish the assessment, but first, you need to make sure all the objects and
respective assessment templates are set as completed.
Now, let’s discuss the advanced checklist assessment template configuration. For this
template, select checklist type Advanced, and then the remaining steps are the same as
for the simple checklist assessment template, except for one extra step: configuring
the answers and questions flow. After assigning all the sections and questions, you can
define the flow of questions in the Answer Configuration tab. Define the primary step
and secondary step for each question. In addition, assign questions or actions as the
primary step, but only assign actions as a secondary step. The most important point is
to select one question as the trigger question. The trigger question is the first question
that can be asked during the assessment.
Develop Recommended Actions
In this section, you’ll find out how to create the recommended actions during RCM and
FMEA assessments. The recommendation can be created from different sources such
as instruction, placeholder instruction, imported task list (maintenance plan), and
imported task list, as follows:
쐍 Instruction
The frequency given in this recommendation is considered in the PRM application
by the maintenance planner.
쐍 Placeholder instruction
Placeholder instruction is useful when there is no detailed instruction available. The
reliability engineer can create placeholder instructions.
쐍 Imported task list (maintenance plan)
If the plant maintenance system is connected with SAP Asset Strategy and Perfor-
mance Management, then all the task lists related to the maintenance plan are
imported to SAP Asset Strategy and Performance Management.
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6.4 SAP Asset Strategy and Performance Management
쐍 Imported task list
If the plant maintenance system is connected with SAP Asset Strategy and Perfor-
mance Management, then all the task lists that aren’t assigned to the maintenance
plan are imported to SAP Asset Strategy and Performance Management.
Following are the recommendation types:
쐍 Preventive
6
Recommendations help to prevent failure:
– Time-based: Recommends the time-based frequency, and only a single frequency
is allowed.
– Performance- or condition-based: Based on indicators available in the asset. Mul-
tiple frequencies are allowed using the AND/OR operators.
쐍 Corrective
Recommendations to correct the failure that has already occurred:
– Planned: Corrective measures are planned activities performed at a scheduled
frequency.
– Unplanned: Refers to the complete breakdown scenario where you can’t plan for
the frequency.
You can create recommendations for RCM assessment or FMEA assessment. The cre-
ated recommendation will be in Draft status before publishing the RCM assessment.
The status is changed to Open when it’s published. You can visualize the RCM and
FMEA recommendations from the technical object, as follows:
쐍 Visualize RCM or FMEA recommendations
You can visualize the RCM or FMEA assessments at the technical object level such as
equipment, model, location and system. When risk assessment is performed at the
recommendation, then the system can display the information, such as current risk,
remaining risk, estimated cost, and current financial risk.
쐍 Recommendations highlight card
In a highlighted card, you can visualize all the RCM or FMEA assessments and associ-
ated recommendations.
쐍 Recommendations at the failure mode page of the technical object
When the recommendation is created, you can navigate to the technical object; in
the Documentation section, you can move to Failure Modes subsection.
Following are the key features for recommendations:
쐍 RCM assessment recommendations capture the remaining risk and remaining
financial risk.
쐍 Recommendations calculate the mitigated risk and mitigated financial risk as the
difference between the current risk and the remaining risk.
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6 Intelligent Assets 6.4 SAP Asset Strategy and Performance Management

쐍 After initial creation, you need to change the source of recommendation. The source
can be instruction, placeholder instruction, or task list.
쐍 You need to capture the remaining risk and remaining financial risk manually when
a risk and criticality assessment template isn’t assigned to the RCM assessment tem-
plate.
provider. SAP Asset Strategy and Performance Management improves asset performance
and optimizes the asset performance strategy. The performance strategy is established
through multiple assessments and detailed analyses, as you can see in Figure 6.17. The
steps are as follows: define system and asset analyze, asset risk and criticality analysis, per-
form asset assessment, develop recommended actions, implement maintenance strate-
gies, and monitor and continually reevaluate, as we discussed in Section 6.4.1.

Implement Maintenance Strategies 6

SAP Intelligent Asset Management

You’ve now completed the analysis and published the assessment. Using this result, Define Systems Asset Risk
Perform Asset
SAP Business and Assets to and Criticality
Assessment
the reliability engineer can set the recommendation in Open status. Next, you need to Network Asset Analyze Analysis
Collaboration
implement the recommendation, which is the key responsibility of the maintenance
planner. The maintenance planner can check all the open recommendations and SAP Asset Strategy
Monitor and Implement Develop
IoT and Edge SAP Predictive Continually Maintenance Recommended
and Performance
decide which will be implemented and which won’t. The open recommendations Services Asset Insights
Management Core
Reevaluate Strategies Actions

Functionality
related to equipment or function locations are available in the Preventive Maintenance SAP Plant
Connectivity
Review app. You can manage the recommendations in different ways, as follows: Sensor Asset Central Foundation
Data Foundation for Master Data and Transactional Data
쐍 Select one or more open recommendations, and choose Transform to, Link Instruc-
SAP Service
tion, or Match Instruction. If no instruction is assigned to the recommendation, then and Asset
Manager
the system will create a new instruction. If the recommendation is based on an SAP S/4HANA
or SAP
Maintenance
SAP ERP
Assistant
instruction, then it will be linked with the instruction.
쐍 Select one or more recommendations, and choose Schedule for Maintenance. Then,
Figure 6.17 Architecture and Integration of SAP Asset Strategy and Performance Management
the system will send a notification to the SAP EAM system, and the status of the rec-
ommendation will be changed to Implementation in Progress.
쐍 Create an instruction or link it with a recommendation. The status of the recom- 6.4.3 Key Benefits
mendation is set to Instruction Assigned. The key benefits of SAP Asset Strategy and Performance Management are as follows:
쐍 Select one or more recommendations and export the details into a spreadsheet. 쐍 Cost optimization
SAP Asset Strategy and Performance Management provides cost-effective mainte-
nance planning and helps to identify potential cost saving opportunities.
6.4.2 Architecture and Integration
쐍 Enhanced decision-making
The asset central foundation is the core for content, process, and integration of SAP Using real-time data and analysis, SAP Asset Strategy and Performance Manage-
Asset Strategy and Performance Management, SAP Predictive Asset Insights, and SAP ment provides valuable insights and helps with the data-driven decision-making
Business Network Asset Collaboration. The asset central foundation acts as the data functionality for asset management.
foundation for asset master data as well as transactional data. It helps with real-time
쐍 Increases asset lifecycle
synchronization of data from SAP Asset Strategy and Performance Management, SAP SAP Asset Strategy and Performance Management helps to extend the lifecycle of
Predictive Asset Insights, and SAP Business Network Asset Collaboration to SAP ERP/ assets through optimized maintenance and care.
SAP S/4HANA, as shown in Figure 6.17.
쐍 Centralized asset information
SAP Service and Asset Manager is also integrated in the SAP Enterprise Asset Manage- All asset-related data is stored in a centralized repository, simplifying data access
ment portfolio where SAP Service and Asset Manager provides a mobile-based solution and fostering collaboration among multiple stakeholders.
to manage work orders, notifications, material consumption, and condition monitor- 쐍 Improved asset performance
ing. SAP Service and Asset Manager is available as a packaged with mobile add-on for SAP Asset Strategy and Performance Management helps to optimize asset mainte-
SAP ERP and SAP S/4HANA. SAP Asset Strategy and Performance Management is one
nance strategies, reducing downtime and increasing overall equipment effective-
of the key parts in the SAP Intelligent Asset Management cloud-based solution to
ness (OEE).
establish a common collaboration platform for manufacturer, operator, and service

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6 Intelligent Assets 6.5 SAP Predictive Asset Insights

6.5 SAP Predictive Asset Insights Predictive Asset Insights are 360-degree view of assets, advanced analytics for decision
support, intuitive and scalable machine learning, simulation-based digital twins, and
The SAP Predictive Asset Insights solution helps to assess, predict, and optimize the business process integration, as shown in Figure 6.19. We’ll look at each of these in the
health of assets. It uses the combination of sensor data (operational technology data) as following sections.
well as maintenance data (IT data) to generate the digital insights of assets. SAP Predic-
tive Asset Insights plays a key role from an asset maintenance point of view where it
Advanced Intuitive and Simulation-
helps to predict the performance decrease as well as the malfunction of assets through 360 Degree
Analytics for Scalable Machine based Digital
Business Process
View of Assets Integration 6
advanced analytics, ML, IoT, digital insights, and final decision support, as shown in Fig- Decision Support Learning Twins

ure 6.18.
SAP Predictive Asset Insights is a software as a service (SaaS) solution available on the
public cloud provided by SAP, and you can access SAP Predictive Asset Insights using SAP
Intelligent Asset Management SAP Fiori launchpad, which can be accessed using https://
<tenant subdomain>.iam.cfapps.<region>.hana.ondemand.com (for standard licenses).
The available applications for SAP Predictive Asset Insights are organized into multiple
groups such as analytics, processes, master data, ML engine, and administration.
Machine
Learning (ML)
IoT Sensor Data and AI
ƒ Anomaly detection
ƒ Failure probabilities
ƒ Failure mode analysis
ƒ Remaining useful life
ƒ Root cause analysis
Maintenance
SAP ERP/ Data Digital Twin
SAP S/4HANA
Figure 6.18 SAP Predictive Asset Insights Solution Using ML and Digital Twin
6.5.1 Key Functionality
SAP Predictive Asset Insights and IoT take the central role to transform the asset main-
tenance strategy from a reactive approach to a predictive approach for asset mainte-
nance and service. SAP Predictive Asset Insights can provide full visibility into asset
health and predict the maintenance and service needed for assets by using ML and dig-
ital twin technologies. SAP Predictive Asset Insights offers deep, unified intelligence by
integrating operations and analytics using a single platform. By using business data
and operational data, you can predict malfunctions of an asset before they take place.
This is the main functionality of SAP Predictive Asset Insights, which acts as decision
support for asset management and reliability persons. The other functions of SAP
Figure 6.19 Core Functionalities of SAP Predictive Asset Insights
360 Degree View of Assets
SAP Predictive Asset Insights provides a single solution of comprehensive views of the
asset model, master data, transaction data, and performance data. The master data
apps allow you to browse all kinds of related information about equipment. You can
create or edit the master data based on the user role. Following is an overview of master
data objects available in SAP Predictive Asset Insights:
쐍 Equipment
A piece of equipment is a physical instance of a model. An operator can maintain
additional information specific to an item of equipment such as documents, infor-
mation, and installation location.
쐍 Models
A model is referred to as an abstract representation that defines all maintenance and
specification information related to new or existing products.
쐍 Functional locations
The functional location represents the physical location or area where the piece of
equipment can be installed or maintenance activity is performed. You need to main-
tain function location information for a piece of equipment and systems.
쐍 Locations
A location refers to the virtual record of location where the equipment is installed.
쐍 Functions
Functions refer to how the object is expected to operate. Functions can be assigned
to equipment, models, systems, and locations.
쐍 Failure modes
These modes represent the probable failures that can occur for a piece of equipment.
The failure model informs the operator about the possible failure, which helps them
handle failure modes efficiently.
쐍 Fingerprints
Fingerprints are defined as a collection of snapshots of the indicator chart, which is
derived from a set of indicators and metadata for a time period. It describes the state
of a single piece of equipment, which can be used for further process steps.

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6 Intelligent Assets
쐍 Spare parts
Spare parts represent the components that are located in inventory as spares. Per
the requirement, those parts can be fitted to a piece of equipment.
쐍 Groups
Groups allow you to group together multiple objects for different purposes.
쐍 Systems
A system is defined as a set of interrelated equipment or subsystems that regularly
interact. You can define a system based on a system model and assign a system tem-
plate to it.
쐍 Documents
The system allows you to create, display, or upload documents for equipment.
쐍 Announcements
An announcement refers to the information that is given to the equipment owner
or operator. For example, information is sent to the operator for instruction updates
for a piece of equipment.
쐍 Instructions
An instruction refers to the sequential sets that need to be performed for a specific
task execution.
쐍 Templates
The template defines the format that is created by a manufacturer to maintain the
metadata related to a model or a piece of equipment.
쐍 Rules
Rules are used to create and manage rules so that service technicians are notified
about possible alerts. You can set up rules for a model or piece of equipment.
From the Equipment app or Equipment Search app, you can find the list of existing
equipment (sourced from asset central foundation, which is connected with SAP ERP or
SAP S/4HANA, as we’ll discuss in Section 6.5.2). You can find 360-degree information
about equipment as shown in Figure 6.20.
Figure 6.20 Detailed Information on Equipment in SAP Predictive Asset Insights
400
6.5 SAP Predictive Asset Insights
Table 6.4 provides the 360-degree information about equipment, which is available
through the equipment detail view in multiple sections.
Section Details
INFORMATION Equipment/model information, highlight, installation location, busi-
ness partners
STRUCTURE & PARTS Structure, spare parts, visual parts 6
DOCUMENTATION Documents, instructions, failure modes, alert type, and so on
MONITORING Alerts, indicators
MAINTENANCE & Notifications, work orders, tickets, contracts
SERVICE
TIMELINE History and timeline of major equipment events
Table 6.4 Available Equipment Information
Advanced Analytics for Decision Support
SAP Predictive Asset Insights supports advanced analytics performed by ML in the
background. This advanced analytics helps with maintenance execution and decision
supports. You can find here multiple analytics use cases performed in SAP Predictive
Asset Insights.
In particular, failure mode represents the probable failures that can occur with a piece
of equipment. Failure mode analytics uses ML to generate the KPIs around docu-
mented failure modes. It provides the insight and analytics about the pattern of fail-
ures for the equipment or equipment model.
Failure mode analytics works per the steps explained: SAP Predictive Asset Insights
extracts topics from the historical text data in SAP EAM notification, and then the system
matches the topics to standard failure modes from ISO standards or from FMEA. Next,
the system provides an optional step where the expert users can double-check the ML
matching and provide feedback. Using the feedback, the system continuously assigns all
notifications to the specific failure mode. Based on this assignment, the system calcu-
lates metrics by different failure modes using actual dates in notifications. Finally, it pro-
vides insights on potential causes of the failure modes, as shown in Figure 6.21.
Failure mode analytics is displayed in multiple applications for different analyses such
as failure mode analytics on Equipment or Model pages and failure mode analytics in
the Failure Modes app, as follows:
쐍 Failure mode analytics on Equipment and Model pages
For equipment or model applications on the failure mode cards, it shows how often
the failure modes appeared in the notifications for the equipment and equipment
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6 Intelligent Assets 6.5 SAP Predictive Asset Insights

model. You can also find details that include the KPIs for mean time to repair, mean
time to failure, and mean time between failures.
쐍 Failure mode analytics in Failure Modes app
In this app, you can find the top words found within the notification for selected fail-
ure mode and equipment model.

SAP Predictive Asset Insights 6

uses unsupervised machine
learning to extract to topics
from notification texts of
EAM
SAP Predictive Asset Insights
matches topics to standard
failure modes

Expert users double check

the matching results

Figure 6.22 Machine Learning Engine in SAP Predictive Asset Insights

Failure Mode Analytics

Configuring Training Scoring
Model Model Model
SAP Predictive Asset Insights
uses supervised machine First you need to Next, you need to After training the
learning based on user configure a model train a model model, you can score
support to assign all the latest trained model
notifications to failure mode

Provides out-of-box metrics Figure 6.23 Process of Managing Models for Health Indicators
Failure mode to notification and visualizations
mappings are stored in the
system. Those are used for The Failure Mode Analytics Model Management app is used to configure, train, and
machine learning and score models for failure mode analytics. To find the analytics details about the pattern
analytics
of failure for equipment or an equipment model, your notification needs to be ana-
Figure 6.21 Failure Mode Analytics Flow lyzed by configuring, training, and scoring the model through the Failure Mode Analyt-
ics Model Management application. You’ve already seen the process flow previously.
Insightful and Scalable Machine Learning Follow these steps to manage models for failure mode analytics:
SAP Predictive Asset Insights provides a list of applications under Machine Learning 1. Configure the unsupervised model to train it.
Engine in the SAP Fiori launchpad. The applications are Health Indicator Data Set 2. Train the unsupervised model.
Configuration, Health Indicator Model Management, Failure Mode Analytics Model
3. Configure the supervised model.
Management, Failure Mode Analytics Validation, Leading Indicators Model Manage-
4. Train the supervised model.
ment, and Failure Curve Analytics Model Configuration Management, as shown in
Figure 6.22. 5. Use the latest trained model to score the data.

The Health Indicator Data Set Configuration app is used to configure the data sets that
you can use as input data when training and scoring models for equipment health indi-
cators. The Health Indicator Model Management app is used to configure, train, and
score models for equipment health indicators. You need to follow the steps as shown in
Figure 6.23. First, you need to configure a model, then train the model, and finally use
the latest trained model to score the data.
The Failure Mode Analytics Validation app is used to perform a validation activity to
improve failure mode analytics. Validation tasks are generated based on trained unsu-
pervised models, which are displayed in the Failure Mode Analytics Validation app. For
each unsupervised model, one validation task is generated. The validation task is a one-
time activity for each training execution. Once the validation task is performed, then
you can apply validation to the next supervised model training and scoring.

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6 Intelligent Assets 6.5 SAP Predictive Asset Insights

The Leading Indicators Model Management app is used to configure and train models 쐍 When you create equipment using only template in SAP Predictive Asset Insights, a
for leading indicators. Leading indicator refers to the predictive measurement of sensor type will also be created for every template.
equipment. It indicates a failure condition of the function failure of equipment. Lead- 쐍 Only one sensor will be created for each device corresponding to a piece of equipment.
ing indicator helps you analyze the possible failure based on the leading indicator’s 쐍 Each indicator group can have only one date type indicator for successful synchroni-
value such as temperature, pressure of pump machine, torque, oil level, and so on. You zation.
can configure and train leading indicator models for equipment health indicators.
쐍 The API for equipment creation should have properties so that IoT services and SAP
The Failure Curve Analytics Model Configuration Management app allows you to cre- Predictive Asset Insights sync is enabled, IoT services and SAP Predictive Asset 6
ate, train, and score model configurations for failure curve analytics. Failure curve ana- Insights sync is disabled, IoT services sync is enabled, and only the SAP Predictive
lytics allows you to view the age at which the equipment may fail within an age range Asset Insights sync is enabled.
and probability of failure by using the failure curve with different insights. It helps to
detect potential failure risk and plan actions to prevent the failure in advance. The fail-
ure curve with different insights is calculated per failure mode for a group of equip- Attributes Indicators
ment with similar operating conditions.
Creating
Creating Template Model
Simulation-Based Digital Twins
One of the key parts of SAP Predictive Asset Insights configuration is to configure Creating
Equipment
equipment modeling. When you’re creating equipment, the machine operational data SAP Predictive Asset Insights
synching through IoT is required. The IoT service is required for incorporation of the Publish
time series data from physical devices. The digital twin of the physical asset will be cre-
ated in SAP Predictive Asset Insights through synchronization of the physical asset’s
data through IoT. During equipment modeling, you need to follow these steps: Sensor
Device Sensor Capabilities
Types
1. Create indicators and indicator groups.
IoTServices
2. Create attributes and attribute groups.
3. Create alert type and alert type groups. Figure 6.24 Synchronization of Flow between SAP Predictive Asset Insights and IoT

4. Create the model template.

You also need to understand the mapping of objects and corresponding naming con-
5. Assign attribute groups and indicator groups to the model template. vention for SAP Predictive Asset Insights, as shown in Figure 6.25.
6. Create the model from the model template.
7. Assign the alert type group to the model. Gateway Device Sensor
8. Create the equipment.

Once the equipment is published, an external ID is created. The external ID will be created
Sensor
Capabilities Properties
if you use SAP-managed data persistence and streaming. Therefore, you need to configure Type
the external system where IoT will be used as the external system to synchronize the data.
While the equipment is created and published in SAP Predictive Asset Insights, it’s syn- Equipment Indicators
Equipment Indicator
Templates Group
chronized and objects are created in the IoT service, as shown in Figure 6.24.
During the synchronization process, you need to consider the key activities as follows:
Model
Model
쐍 Only the equipment with the model in the asset central foundation will be synchro- Templates
nized with IoT.
쐍 A device will be created for every piece of equipment. The device will be associated Figure 6.25 Mapping between Objects and Corresponding Naming Convention in
with capabilities corresponding to indicator groups. SAP Predictive Asset Insights

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6 Intelligent Assets 6.5 SAP Predictive Asset Insights

Business Process Integration and integration of SAP Intelligent Asset Management with SAP ERP and SAP S/4HANA.
SAP Predictive Asset Insights is a key component of the SAP Intelligent Asset Manage- You can find SAP Predictive Asset Insights in the SAP Intelligent Asset Management suite,
ment portfolio as well as being part of the comprehensive asset management portfolio. as shown in Figure 6.27, where IoT is integrated with SAP Predictive Asset Insights to syn-
SAP Predictive Asset Insights uses asset master data from the asset central foundation chronize the equipment/machine time series data and present the digital twin of the
and connects with IoT to sync time series data from physical assets to form digital asset using the equipment model in SAP Predictive Asset Insights. The SAP Predictive
twins. Using the ML functionality and AI, SAP Predictive Asset Insights provides the Asset Insights functionality helps to provide insight regarding the asset through the dig-
prediction of asset failure, anomaly detection, and analytics. It provides advanced ana- ital twin model and helps to predict the performance decrease as well as malfunction of
6
lytics for decision support of the asset management team and reliability engineer. the asset through the predictive approach using advance analytics, ML, and AI.
This centralized analytics information is shared by other components of SAP Intelli-
gent Asset Management for multiple business process integration, as shown in Figure
Advance Intuitive
360 Degree Simulation- Business
6.26. The third-party maintenance and service provider of the asset uses the asset View of
Analytics for and Scalable
Based Digital Process
Decision Machine
health indicators through SAP Business Network for Asset Collaboration. The reliability Assets
Support Learning
Twins Integration
engineer assesses the asset health indicators and real-time performance to determine
the maintenance strategy effectiveness through SAP Asset Strategy and Performance
SAP Intelligent Asset Management
Management. Maintenance and service technicians monitor the asset condition and
health indicators to prioritize work and plan resources through maintenance execu-
SAP Business
tion of SAP S/4HANA and SAP Service and Asset Manager. Network Asset
Collaboration

Reliability Engineer IoT and Edge SAP Asset Strategy

SAP Predictive
Services and Performance
Asset Insights
Management
SAP Asset
Strategy and SAP Plant
Performance Connectivity
Maintenance and Management Maintenance and
Service Provider Service Technicians
Sensor Asset Central Foundation
SAP Asset Health Data Foundation for Master Data and Transactional Data
Business Indicators and SAP S/4HANA
Network Real-Time Asset
Asset Performance Management SAP Service
Collaboration Asset Condition and Asset
and Health Indicators Manager
Asset Health to Prioritize Work
or SAP
Indicators and Plan Resources
Maintenance SAP ERP SAP S/4HANA
Assistant
Decision Support for
Asset Management Team
and Reliability Engineer
Figure 6.27 Architecture and Integration of SAP Predictive Asset Insights

SAP
Predictive
Asset
6.5.3 Key Benefits
Insights
SAP Predictive Asset Insights helps to monitor asset condition, predict asset health,
deliver spare parts proactively, improve planning of spare parts in advance, and curate
Figure 6.26 Seamless Business Process Integration
accurate technical staffing. When you’re using the entire business suite, then you can
send requests for maintenance order creation, scheduling service delivery, execution
6.5.2 Architecture and Integration of orders in mobile device, and visualization support for technicians. SAP Predictive
SAP Predictive Asset Insights is a key solution in the SAP Intelligent Asset Management Asset Insights provides several benefits, as follows:
suite as well as the SAP EAM portfolio. In Section 6.4.2, we discussed the related solutions

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6 Intelligent Assets 6.7 SAP Business Network Asset Collaboration

쐍 Increase asset availability
Helps to predict failures early and implement corrective actions. It converts
unplanned maintenance event downtimes to planned maintenance events.
쐍 Optimize service effectiveness
Increase the visibility into field assets to allow service providers to offer high-margin
service with lower risk.
쐍 Decrease maintenance cost
Continuous monitoring of asset health and predictive asset failure through advance
analytic helps to reduce maintenance costs and perform accurate planning.
쐍 Implementation of data-driven and condition-based approach
Using asset maintenance data and real-time IoT-based sensor data with ML- and AI-
based analytics helps make better asset health-related decisions.
SAP Asset Performance Management runs on SAP BTP and is provided as an SaaS solu-
tion. In the provider subaccount (managed by SAP), SAP Asset Performance Manage-
ment uses embedded SAP Analytics Cloud for its analytics dashboard, IoT for machine
data collection and storage, SAP AI Core for running ML models, SAP HANA Cloud for
data persistence, SAP BTP, Cloud Foundry runtime for microservices, and SAP Build
Work Zone for role-based app access. In the consumer or customer subaccount of SAP
BTP, SAP Asset Performance Management needs SAP Master Data Integration service
6
for master data distribution to SAP S/4HANA as well as the SAP Event Mesh and SAP
Destination services for integrating with the SAP S/4HANA system.
As one of the key solutions within the intelligent asset portfolio, SAP Asset Performance
Management can be used to enable connected assets for condition-based and predictive
maintenance and to digitalize and automate the maintenance planning process.

6.7 SAP Business Network Asset Collaboration

6.6 SAP Asset Performance Management
Previously known as SAP Asset Intelligence Network, SAP Business Network Asset Col-
SAP Asset Performance Management is a new solution which combines the functionality
laboration plays a key role in Industry 4.0 by providing a cloud-based collaborative
of both SAP Asset Strategy and Performance Management and SAP Predictive Asset
platform for manufacturers, operators, and service providers where collaboration hap-
Insights into a single solution. Though SAP Asset Strategy and Performance Management
pens among business partners across the lifecycle of assets, as shown in Figure 6.28.
and SAP Predictive Asset will continue to be available for existing customers, strategi-
The collaboration approach enables a single version of truth for assets and helps to
cally, SAP suggests that all new customer move to SAP Asset Performance Management. enhance the performance of assets, reduce operational cost, and provide safe operation
In addition to the functionality detailed in Section 6.4 and Section 6.5, the key features execution.
available in SAP Asset Performance Management are as follows:
쐍 Manage asset master data replication from SAP S/4HANA
쐍 Visualize and analyze asset health based on measurement points via integration
with IoT
Operator Manufacturer
쐍 Monitor asset health and automatically trigger maintenance actions enabling con-
dition-based and predictive maintenance Model 1

쐍 Perform risk and criticality assessments for specific assets

SAP Asset Performance Management helps you to define and streamline maintenance
Service Equipment Equipment Equipment Supplier
planning by analyzing asset performance data using IoT and SAP S/4HANA. SAP Asset Provider 1 2 3
Performance Management also leverages ML models for anomaly detection and prob-
ability of failure calculations and, based on configurable rules, triggers maintenance Physical Physical Physical
processes in the SAP S/4HANA system. Moreover, you can view asset performance ana- Device 1 Device 1 Device 1

lytics through predefined dashboards available as part of the solution.

SAP Asset Performance Management uses SAP One Domain Model for integrating mas- Manufacture/ Operate/ Retire and
Design Commissioning
Build Maintenance Decommission
ter and transactional data with SAP S/4HANA or SAP ERP, including technical objects
for the asset master, classifications, measuring points, catalog and code groups, plant
maintenance notifications, plant maintenance work orders, task lists, and mainte-
nance plans. Figure 6.28 Collaboration Platform of SAP Business Network Asset Collaboration

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6 Intelligent Assets
SAP Business Network Asset Collaboration is also used as an asset business network for
multiple business partners. Technically, it enables business partners to collaborate on
a shared digital twin of the asset throughout the asset’s lifecycle.
6.7.1 Key Functionality
SAP Business Network Asset Collaboration is a cloud-based business network for col-
laboration with key stakeholders such as manufacturers, operators, suppliers, and ser-
vice providers. It provides the functionality of electronic data handover from the OEM
to the operator. It also supports asset data integrity to improve the operational perfor-
mance with trusted data sources. SAP Business Network Asset Collaboration provides a
collaborative network service for collecting asset data, managing equipment/assets,
collecting asset performance analysis data, and helping with required maintenance.
Consider an example where a manufacturing organization holds multiple assets to
keep their manufacturing process up and running on a regular basis. Those assets must
be maintained in a timely manner, and the maintenance team needs to work closely to
optimize the manufacturing execution process. Sometimes, the maintenance activity
becomes very difficult due to different types of assets used, incomplete operator’s
manual, and missing drawings or other critical machine information. The situation is
created where the operator, the OEM, and the service providers aren’t in sync, and the
asset data is in silos. Therefore, SAP Business Network Asset Collaboration plays a key
role in solving such issues by improving data availability and reducing master data
maintenance through a single collaborative platform for asset data exchange.
To understand this better, consider a scenario where SAP Business Network Asset Col-
laboration acts as a collaboration platform between an asset manufacturer and opera-
tor. The operator needs a new piece of equipment and has raised a request to the
supplier. After receiving the request, the manufacturer creates the new equipment in
the SAP Business Network Asset Collaboration platform. After successful creation of
the equipment, it will be shared with the operator. After receiving the newly created
equipment, the operator will synchronize it with the backend system for maintenance.
During the operation and maintenance of the asset, the detailed information along
with feedback will be shared back with the manufacturer. Based on the information
and feedback, manufacturers can also provide additional information and digital ser-
vices through the collaborative platform.
SAP Business Network Asset Collaboration focuses on the following multiple key areas:
쐍 Content
SAP Business Network Asset Collaboration allows a unique identifier for each asset
along with provisions to maintain other details such as maintenance schedule and
warranty information for better maintenance capabilities. It helps service providers
line up the spare parts and resources that are essential for maintenance.
410
6.7 SAP Business Network Asset Collaboration
쐍 Network
It provides the collaborative platform for asset OEMs, asset operators, and service
providers to share the feedback on asset performance, OEE, and best practices for
asset management to extend the asset’s lifecycle.
쐍 Applications
The collaborative platform allows the OEM to maintain the asset’s latest informa-
tion related to spare parts, drawings, and maintenance information. The predictive 6
maintenance approach is more useful than the reactive maintenance approach.
Time series data from assets is streamed continuously to the SAP Business Network
Asset Collaboration platform for the predictive approach. Using that data, the sys-
tem can make multiple suggestions such as the next maintenance due date,
required resources from the service provider, and so on.
쐍 Integrations
It provides the required integration with core systems such as SAP ERP or SAP
S/4HANA. Asset master data and time service real-time sensor data are transferred
in the SAP Business Network Asset Collaboration platform, which can also be shared
with key stakeholders.
Now that you understand the key areas covered by SAP Business Network Asset Col-
laboration, let’s discuss its key functionalities and their usage by multiple business
stakeholders through the collaborative approach, such as asset intelligence through
collaboration, asset taxonomy, and collaborative maintenance execution.
Asset Intelligence through Collaboration
In a manufacturing organization, there can be thousands of assets involved to con-
tinue shop-floor executions, and maintenance procedure can be different for individ-
ual assets as the assets are used for different activities and supplied by different OEMs.
It’s very difficult for plant managers or maintenance personnel to keep all those assets
up and running and perform maintenance activity on time for optimized performance
of the manufacturing process. Asset operators need to contact service providers per
requirements, and service providers don’t have any detailed information of the current
health of the assets in question.
Similarly, the asset operator needs to contact the OEM for new equipment, and the
OEM sends the equipment per the request by the asset operator, but there’s no real-
time visibility of the new asset status to the operator or to the OEM after it’s commis-
sioned. The asset data and lifecycle remain siloed from major stakeholders. There is no
collaboration among key business stakeholders and no common taxonomy of assets
that can be shared by multiple business stakeholders. Maintenance activities become
very difficult due to insufficient maintenance data for assets and poor asset data integ-
rity, as shown in Figure 6.29.
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 6 Intelligent Assets 6.7 SAP Business Network Asset Collaboration

Asset Taxonomy
The key collaborative scenarios supported by SAP Business Network Asset Collabora-
Manufacturer (OEM) Engineering Service Provider Asset Operator tion are asset definition, enrichment, and asset-related master data. such as classifica-
tion and characteristics. In SAP Business Network Asset Collaboration, it’s mandatory
Asset Lifecycle
to support the classification and characteristics of a given industrial sector or geo-
Manufacture/ Operate and Retire and
Design Commission graphical region. SAP Business Network Asset Collaboration supports multiple indus-
Build Maintenance Decommission

try standards to maintain the right taxonomy for assets to increase the efficiency of
6
operation and maintenance.
Equipment Specification Failure Mode Obsolescence
Model and Drawings Effect Analysis Analysis A comprehensive asset taxonomy is a critical element for asset data integrity. You can
see the collaboration supported by SAP Business Network Asset Collaboration in a
Manufacturer Failure Modes Maintenance
Spare Parts History common taxonomy in Figure 6.30. SAP Business Network Asset Collaboration provides
Recommendations
the global standard classification based on the industry standard. The manufacturer
Services Sensor Data and
and Updates Asset/Equipment Predictive Insights and supplier provide the model template and model information in sharing behavior.
Equipment, system, and location information is shared by the operator and service
Figure 6.29 Siloed Asset Information provider. The collaboration platform presents the hierarchy and common taxonomy.

The SAP Business Network Asset Collaboration platform addresses the siloed asset data
Class
and collaborative asset information with a single version of truth. It provides a com-
mon place where each key player can find the asset information in one place. It shares Manufacturer SAP
best practices for optimal equipment availability, provides real-time asset information (OEM) Subclass

for better maintenance, and allows you to select your preferred alliances from the
available key players. The collaboration approach completely changes the value of
Classified as
business from the selling pattern (selling of assets) to the service-based pattern (pay
Engineering and
Specialization of
per use). You can see the transformation of siloed assets to collaboration in Table 6.5. Construction Manufacturer Model Template Model
Supplier
Asset Intelligence with the Noncollaborative Asset Intelligence with the Collaborative
Approach Approach
Equipment
Asset Operator Template
Siloed asset data Collaborative asset data an Instance of
Specialization of
Equipment
Multiple versions of truth for asset informa- Single version of truth for asset information
Operator
tion Service Provider Part of
Specialization of
Location/System
Service Provider Location/System
Siloed asset information Collaborative asset information Template

Limited benchmarking capabilities Advanced benchmarking capabilities

Figure 6.30 Collaboration in the Common Taxonomy
Value through selling Value through service

Selling of asset Pay per use of asset

Note
Visibility per location Visibility to key stakeholders
The industry standards supported by SAP Business Network Asset Collaboration are as
Table 6.5 Asset Intelligence through the Noncollaborative Approach to the Collaborative follows:
Approach 쐍 ISO 14224:2006 – Petroleum, Petrochemical and Natural Gas Industries
쐍 EN 15380 – Railway Applications
쐍 ISO 15926-1:2004 – Industrial Automation Systems and Integration

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6 Intelligent Assets 6.7 SAP Business Network Asset Collaboration

Collaborative Maintenance Execution able to complete the job quickly. The EMM technician can log in to SAP Business Net-
As you know, SAP Business Network Asset Collaboration provides a collaborative plat- work Asset Collaboration and find the work order using the Work Orders app. Then the
form for operator, manufacturer, and service provider. All the key stakeholders benefit technician navigates to the Confirmations tab of the app and sends the confirmation of
from the collaboration process where shard information reduces manual effort and completed work to the JEC maintenance planner to complete the work order, as you
rework and improves accuracy and overall planning. For better understanding, con- can see in Figure 6.32.
sider an example for maintenance execution where there is an electric motor manufac-
turer company called EMM and a business partner electric company called JEC in which Review and
Share Work Order Execute Job 6
EMM supplies electric motors to JEC.
For seamless collaboration and end-to-end asset maintenance and service, both com-
panies use SAP Business Network Asset Collaboration. You can consider EMM as the
OEM, supplier, and service provider for electric motors to JEC, which is the operator or Create and Review and Send Confirmation
Synchronize Acknowledge of completed work
buyer of the motors. Now, you can see how the collaboration works for them for main- Work Order Work Order
tenance purposes by considering the service planner and technician from company
EMM and the maintenance planner from company JEC, as shown in Figure 6.31. Maintenance Maintenance
Service Planner Technician Technician
Planner Company Planner Company
Company EMM Company EMM Company EMM
JEC JEC

Company EMM Company JEC

Figure 6.32 Collaborative Maintenance Execution Using SAP Business Network Asset
Collaboration

Service Technician Maintenance 6.7.2 Architecture and Integration

Planner Planner
Figure 6.31 Key Business Stakeholders for Collaboration
The JEC maintenance planner finds an issue with motor M01, and because it’s a very
critical asset, the maintenance planner creates a work order in the SAP S/4HANA sys-
tem immediately. It’s the first step in collaborative maintenance and service. After cre-
ating the work order in SAP S/4HANA, the work order is synchronized in SAP Business
Network Asset Collaboration. Now, the maintenance planner can log in to SAP Business
Network Asset Collaboration and search for the equipment. After that, the mainte-
nance planner shares the work order with the service planner of EMM from the Main-
tenance & Service property in the Equipment app. The service planner can also share
the information with subcontractors. Now, the EMM service planner can receive the
work order that came from JEC.
To find the details of the work order, the service planner can log in to SAP Business Net-
work Asset Collaboration and go to the Work Orders application. The details of the work
order will show the information shared by the JEC maintenance planner, and the ser-
vice planner can accept the work order to acknowledge it. After that, the EMM techni-
cian receives the service order to move to the field. Now, the technician can get all the
required information, such as component and spare parts list, document, design, and
specifications from SAP Business Network Asset Collaboration, and the technician is
The goal of SAP Business Network Asset Collaboration is to maintain a global registry
for assets that uses common definitions. The common definitions are shared by key
business stakeholders such as asset operators, manufacturers, OEMs, and service pro-
viders to deliver a collaborative business model. Asset operators access the latest main-
tenance strategies and manuals from the OEM, and the OEM receives asset usage data
as well as failure information from the operator for analysis.
SAP Business Network Asset Collaboration provides the following integration options:
쐍 Integration of asset central foundation with SAP Enterprise Asset Management
Describes integration between the asset central foundation and SAP EAM using SAP
Mobile Add-On.
쐍 Integration with SAP Service Cloud and SAP Commerce Cloud
Refers to integration of SAP Business Network Asset Collaboration with SAP Service
Cloud and SAP Commerce Cloud.
쐍 Integration with IoT capabilities
Describes the integration of SAP Business Network Asset Collaboration with IoT
capabilities. IoT capabilities help organizations connect with assets through sensor
data and get real-time visibility of asset health.
쐍 Other integration scenarios
Other integration scenarios are available for SAP Business Network Asset Collaboration

414 415
 6 Intelligent Assets 6.8 Summary

such as integration with SAP Digital Manufacturing, SAP Manufacturing Execution 쐍 Helps to maximize uptime and operational equipment effectiveness and perfor-
(ME), product lifecycle management (PLM) in SAP S/4HANA, SAP Intelligent Product mance with faster commission and maintenance processes.
Design, and SAP Fieldglass. 쐍 Improves service quality and reduces costs throughout the asset lifecycle through

The asset central foundation is the foundation for SAP Intelligent Asset Management collaboration on a common platform.
components for integration, processes, and content of SAP Business Network Asset 쐍 Drives customer service and satisfaction by enabling common asset definitions and
Collaboration, SAP Asset Strategy and Performance Management, and SAP Predictive transparent maintenance collaboration across business partners.
Asset Insights, as shown in Figure 6.33. 6

• Risk and Criticality 6.8 Summary

• Strategy Review
• Risk Centered Maintenance (RCM) • Collaboration SAP Cloud
• Failure Mode and Effects Analysis (FMEA) • Network Solutions In this chapter, you’ve learned about intelligent assets with enterprise asset mainte-
• Equipment Definition SAP Ariba, SAP Customer
• Condition Monitoring Experience nance strategies, along with available on-premise as well as cloud-based SAP solutions
• Derived Indicator Management
• ML enabled analytics and predictions for intelligent assets such as asset management with SAP S/4HANA, SAP Asset Strategy
SAP Asset
Real-time engineering
and Performance Management, SAP Predictive Asset Insights, SAP Asset Performance
Strategy and
3D virtual simulation
IoT Service
Performance Management, and SAP Business Network Asset Collaboration. You’ve also seen the
Management
details of each SAP solution for intelligent assets, along with their architecture and key
SAP Predictive SAP Business SAP Digital
Asset Insights Network Asset
benefits.
Manufacturing
Collaboration
In the next chapter, you’ll learn about intelligent personal safety and empowered peo-
Asset Central Foundation ple with respect to Industry 4.0.
Holds Master Data, Transactional Data, Equipment, Work Order etc.

Mobile Asset
Management
SAP ERP SAP S/4HANA

SAP Service and

Asset Manager

Figure 6.33 Integration Overview of SAP Business Network Asset Collaboration

6.7.3 Key Benefits

In the following list, you’ll see several benefits of SAP Business Network Asset Collabo-
ration:
쐍 Provides a cloud-based asset management network for collaboration between man-
ufacturers, operators, and service providers. It provides a central place for the source
of truth and reduces rework time for key stakeholders.
쐍 Provides an asset data foundation for asset definition, commissioning, and mainte-
nance, which helps with collaborative asset management and maintenance among
business partners.
쐍 Points toward the Industry 4.0 foundation for asset connectivity, remote condition
monitoring, and collaborative service.

416 417
Contents

Foreword by Sumanta Chakraborty ................................................................................................ 15

Foreword by Amitabh Ray .................................................................................................................. 17
Preface ....................................................................................................................................................... 19

1 Introduction to Industry 4.0 23

1.1 Main Trends and Challenges in Manufacturing ...................................................... 23

1.2 Transformations in the Manufacturing Industry over the Ages ...................... 24

1.3 Key Concepts of Industry 4.0 ............................................................................................ 25

1.3.1 Cyber-Physical Systems ........................................................................................ 26
1.3.2 Internet of Things and Digital Twins ............................................................... 27
1.3.3 Vertical Integration: Top Floor to Shop Floor Integration in
Manufacturing Processes .................................................................................... 29
1.3.4 Virtual Visualization of Production Lines and Processes .......................... 32
1.3.5 Predictive Analysis through Operational Data ............................................. 33
1.3.6 Horizontal Integration: End-to-End Digitalization ...................................... 34
1.4 Importance of Industry 4.0 in Manufacturing .......................................................... 37

1.5 Key Technology Enablers for Industry 4.0 .................................................................. 40

1.5.1 Internet of Things ................................................................................................... 40
1.5.2 Industrial Internet of Things ............................................................................... 43
1.5.3 Machine Learning and Artificial Intelligence ................................................ 43
1.5.4 Cloud Computing ................................................................................................... 45
1.5.5 Big Data ..................................................................................................................... 46
1.5.6 Augmented Reality ................................................................................................ 46
1.5.7 Robotics ..................................................................................................................... 47
1.5.8 3D Printing ................................................................................................................ 48
1.5.9 5G and 6G Network Capabilities ....................................................................... 49
1.6 Challenges to Implementing Industry 4.0 .................................................................. 50
1.6.1 Heterogeneous Data Sources ............................................................................. 50
1.6.2 Multiple Technologies and Platforms ............................................................. 52
1.6.3 High Data Volume .................................................................................................. 53
1.6.4 User Adoption and Change Management ..................................................... 53
1.7 Approach for Industry 4.0 Adoption ............................................................................. 55
1.7.1 Assess Current State and Maturity ................................................................... 56
1.7.2 Define Objectives and Road Map ...................................................................... 57

7
Contents Contents

1.7.3 Define Architecture ............................................................................................... 58 2.5 Developing Cross-Component IIoT Apps Using SAP BTP ..................................... 125
1.7.4 Kick-Start and Pilot ................................................................................................ 58
2.6 Summary ................................................................................................................................... 127
1.7.5 Implement and Rollout ........................................................................................ 58
1.7.6 Review and Improve .............................................................................................. 58
1.8 Key SAP Solutions for Industry 4.0 ................................................................................ 59
1.8.1 Intelligent Products ............................................................................................... 59
3 Process Automation and Analytics 129

1.8.2 Intelligent Factories ............................................................................................... 60

1.8.3 Intelligent Assets .................................................................................................... 61 3.1 Analytics Platform for Industry 4.0 ............................................................................... 130
1.8.4 Empowered People ................................................................................................ 62 3.1.1 Challenges ................................................................................................................ 130
3.1.2 Journey of Data in a Manufacturing Ecosystem .......................................... 133
1.9 Summary ................................................................................................................................... 63
3.1.3 Revolutionary Disruptions in Manufacturing Data Analytics ................. 134
3.2 Analytics in Manufacturing .............................................................................................. 137
3.2.1 Descriptive Analytics ............................................................................................. 137
2 Internet of Things Platforms, Edge Gateways, 3.2.2 Diagnostic Analytics .............................................................................................. 139
and Digital Twins 65 3.2.3 Predictive Analytics ................................................................................................ 141
3.2.4 Prescriptive Analytics ............................................................................................ 146
2.1 What Is an Internet of Things Platform? .................................................................... 66 3.2.5 Robotic Process Automation .............................................................................. 148
2.1.1 Elements of a Successful Internet of Things Platform ............................... 67 3.3 Best Practices for Implementing Artificial Intelligence and
2.1.2 Components of an Internet of Things Platform ........................................... 68 Machine Learning .................................................................................................................. 149
2.2 Role of the Industrial Internet of Things and Edge Gateways in 3.3.1 People: Who Are Your Drivers? .......................................................................... 150
Industry 4.0 .............................................................................................................................. 70 3.3.2 Process: When Should You Start the Journey? ............................................. 154
2.2.1 Challenges in Implementing the Internet of Things in 3.3.3 Procedure: Technology ......................................................................................... 157
Manufacturing Ecosystems ................................................................................ 72 3.4 Key Use Cases of Artificial Intelligence/Machine Learning in
2.2.2 Standards and Reference Models for Industrial Internet of Things Industry 4.0 .............................................................................................................................. 164
Implementation ...................................................................................................... 73 3.4.1 Driving Production Excellence through Statistical Process Control
2.3 Internet of Things Gateway Solutions and Integration with and Statistical Quality Control ........................................................................... 164
Internet of Things .................................................................................................................. 76 3.4.2 Predictive and Prescriptive Maintenance ....................................................... 167
2.3.1 Key Functionality of an Industrial Internet of Things Gateway 3.4.3 Driving Product Engineering Innovation ........................................................ 168
Platform ..................................................................................................................... 76 3.4.4 AI-Powered Advanced Planning ........................................................................ 170
2.3.2 Components of Edge Gateways ........................................................................ 81 3.4.5 Conversational Artificial Intelligence for Training and Service
2.3.3 Reference Architecture for an Industrial Internet of Things Support ...................................................................................................................... 173
Platform ..................................................................................................................... 83 3.5 AI/ML Services in SAP Business Technology Platform .......................................... 176
2.3.4 Choosing an Industrial Internet of Things Platform ................................... 84 3.5.1 SAP HANA Cloud ..................................................................................................... 176
2.3.5 Comparing Industrial Internet of Things Platforms in the Market ....... 89 3.5.2 SAP Master Data Governance ............................................................................ 178
2.4 Digital Twins ............................................................................................................................ 94 3.5.3 SAP Analytics Cloud ............................................................................................... 178
2.4.1 What Is a Digital Twin? ........................................................................................ 95 3.5.4 SAP Datasphere ....................................................................................................... 180
2.4.2 Types of Digital Twins and Their Applications ............................................. 96 3.5.5 SAP Data Intelligence Cloud ............................................................................... 182
2.4.3 What Drives the Digital Twin Initiative in Manufacturing? .................... 102 3.5.6 SAP AI Services ......................................................................................................... 184
2.4.4 Best Practices for Digital Twins ......................................................................... 113 3.5.7 SAP AI Core ................................................................................................................ 187
2.4.5 Digital Twin Enablers from Data Ingestion to Consumption .................. 124 3.5.8 SAP AI Launchpad ................................................................................................... 188
3.5.9 SAP Build Process Automation ........................................................................... 189

8 9
Contents Contents

3.6 Building Ethical Artificial Intelligence .......................................................................... 190 5.2.1 Data Classification ................................................................................................. 259
5.2.2 Production Planning and Control ...................................................................... 262
3.7 Summary ................................................................................................................................... 192
5.2.3 Quality Management ............................................................................................ 271
5.2.4 Plant Maintenance/Asset Management ........................................................ 273
5.2.5 Product Traceability ............................................................................................... 273
4 Intelligent Product Development and Operations 193 5.3 Warehouse Management in SAP S/4HANA .............................................................. 275
5.3.1 Warehouse Overview ............................................................................................ 276
4.1 What Are Intelligent Products? ....................................................................................... 193 5.3.2 Inbound Processing ............................................................................................... 279
4.1.1 The Need for Intelligent Product Design and Development .................... 195 5.3.3 Storage and Operations ....................................................................................... 285
4.1.2 Key Components of Intelligent Product Design and Development ...... 196 5.3.4 Outbound Processing ............................................................................................ 290
4.1.3 Benefits of Intelligent Product Design and Development for
5.4 SAP Warehouse Robotics ................................................................................................... 294
Industry 4.0 ............................................................................................................... 198
4.1.4 Challenges of Intelligent Product Design and Development for 5.5 Manufacturing Execution with SAP Digital Manufacturing .............................. 298
Industry 4.0 ............................................................................................................... 200 5.5.1 SAP Digital Manufacturing for Execution ...................................................... 303
4.1.5 Intelligent Product Design and Development for Existing Products 5.5.2 SAP Digital Manufacturing for Insights .......................................................... 333
versus New Products ............................................................................................. 201 5.5.3 Shop Floor Integration Using the Production Connectivity Model ........ 334
4.1.6 Enablers of Intelligent Product Design and Process Development 5.5.4 Working with the Production Process Designer .......................................... 338
for Industry 4.0 ........................................................................................................ 203 5.5.5 Managing Artificial Intelligence/Machine Learning Scenarios ............... 343
5.5.6 Enhancements in SAP Digital Manufacturing .............................................. 344
4.2 SAP S/4HANA for Intelligent Products ......................................................................... 204
5.5.7 Integration Scenarios of SAP Digital Manufacturing ................................. 347
4.2.1 Key Functionalities of Product Lifecycle Management in
5.5.8 SAP Digital Manufacturing for Edge Computing ......................................... 348
SAP S/4HANA ........................................................................................................... 205
5.5.9 Key Benefits of SAP Digital Manufacturing ................................................... 350
4.2.2 Key Functionalities of SAP S/4HANA Manufacturing for Production
Engineering and Operations ............................................................................... 210 5.6 SAP Manufacturing Suite ................................................................................................... 352
4.2.3 Architecture and Integration .............................................................................. 216 5.6.1 Components of SAP Manufacturing Suite ..................................................... 352
4.2.4 Key Benefits .............................................................................................................. 218 5.6.2 Key Functionality of SAP Manufacturing Suite ............................................ 353

4.3 SAP Enterprise Product Development for Intelligent Products ........................ 220 5.7 Summary ................................................................................................................................... 353
4.3.1 Key Functionalities ................................................................................................. 221
4.3.2 Architecture and Integration .............................................................................. 238
4.3.3 Key Benefits .............................................................................................................. 243
6 Intelligent Assets 355
4.4 SAP Teamcenter for Intelligent Products .................................................................... 244
4.4.1 Key Functionalities ................................................................................................. 244 6.1 What Are Intelligent Assets? ............................................................................................ 355
4.4.2 Architecture and Integration .............................................................................. 251
6.2 Enterprise Asset Maintenance Strategies .................................................................. 357
4.4.3 Key Benefits .............................................................................................................. 252
6.2.1 Breakdown Maintenance .................................................................................... 358
4.5 Summary ................................................................................................................................... 254 6.2.2 Preventive Maintenance ...................................................................................... 359
6.2.3 Condition-Based Maintenance .......................................................................... 359
6.2.4 Predictive Maintenance ....................................................................................... 359
5 Intelligent Factories 255 6.3 SAP S/4HANA Asset Management ................................................................................ 360
6.3.1 Key Functionality .................................................................................................... 361
5.1 What Are Intelligent Factories? ...................................................................................... 255 6.3.2 Architecture and Integration .............................................................................. 381
6.3.3 Key Benefits .............................................................................................................. 383
5.2 SAP S/4HANA Manufacturing .......................................................................................... 259

10 11
Contents Contents

6.4 SAP Asset Strategy and Performance Management ............................................. 384 8 Implementing Industry 4.0 Scenarios 475
6.4.1 Key Functionality .................................................................................................... 385
6.4.2 Architecture and Integration .............................................................................. 396
8.1 Process Manufacturing and Discrete Manufacturing ........................................... 475
6.4.3 Key Benefits .............................................................................................................. 397
8.2 Implementing Make-to-Order and Make-to-Stock Scenarios ........................... 479
6.5 SAP Predictive Asset Insights ........................................................................................... 398
6.5.1 Key Functionality .................................................................................................... 398 8.3 Configure-to-Order Manufacturing for Lot Size of One Production ............... 484
6.5.2 Architecture and Integration .............................................................................. 406 8.4 Engineer-to-Order Manufacturing for Lot Size of One Production ................. 486
6.5.3 Key Benefits .............................................................................................................. 407
8.5 Automated Production Line with Closed-Loop Machine Integration
6.6 SAP Asset Performance Management ......................................................................... 408 and Control ............................................................................................................................... 489
6.7 SAP Business Network Asset Collaboration .............................................................. 409 8.6 Real-Time Plant Visualization .......................................................................................... 492
6.7.1 Key Functionality .................................................................................................... 410
8.7 Real-Time Manufacturing Operations Tracking and KPI Analysis ................... 495
6.7.2 Architecture and Integration .............................................................................. 415
6.7.3 Key Benefits .............................................................................................................. 416 8.8 After-Sale Remote Service of Products ........................................................................ 498

6.8 Summary ................................................................................................................................... 417 8.9 Architectural Scenarios of Industry 4.0 Implementation .................................... 500
8.9.1 Manufacturing Execution System and IT-OT Integration ........................ 500
8.9.2 IoT-Based Scenarios for Digital Twin and Data Collection ....................... 507
8.9.3 Automated and Intelligent Workflows ........................................................... 511
7 Intelligent Personal Safety and 8.9.4 Real-Time and Big Data Analytics ..................................................................... 513
Empowered People 419 8.10 Summary ................................................................................................................................... 516

7.1 What Are Empowered People? ........................................................................................ 421

7.2 Environment, Health, and Safety Management in SAP S/4HANA .................. 423 9 Planning and Change Management for Your
7.2.1 Key Functionalities ................................................................................................. 424
7.2.2 Architecture and Integration .............................................................................. 454
Industry 4.0 Implementation 517

7.2.3 Key Benefits .............................................................................................................. 455

9.1 Industry 4.0 Readiness and Maturity Assessment .................................................. 518
7.3 SAP 3D Visual Enterprise .................................................................................................... 456
9.1.1 Industry 4.0 Readiness and Maturity Assessment Frameworks ............. 519
7.3.1 Key Functionalities ................................................................................................. 456
9.1.2 Assessing Process Maturity ................................................................................. 539
7.3.2 Architecture and Integration .............................................................................. 462
9.1.3 Assessing People Maturity .................................................................................. 539
7.3.3 Key Benefits .............................................................................................................. 463
9.1.4 Assessing Technology Maturity ......................................................................... 540
7.4 SAP Service and Asset Manager ...................................................................................... 464
9.2 Developing the Road Map and Plan for Industry 4.0 Adoption ........................ 542
7.4.1 Key Functionalities ................................................................................................. 465
9.2.1 SIRI Prioritization Framework: TIER .................................................................. 543
7.4.2 Architecture and Integration .............................................................................. 470
9.2.2 Road Map Plan for Industry 4.0 ......................................................................... 548
7.4.3 Key Benefits .............................................................................................................. 472
9.2.3 How to Convince Your Project Sponsor to Invest in Industry 4.0 ........... 549
7.5 Summary ................................................................................................................................... 473 9.2.4 Common Concerns Raised by the Project Sponsors and
Mitigations ............................................................................................................... 551
9.3 Change Management Needed for Industry 4.0 Adoption ................................... 553
9.3.1 Information Technology and Operational Technology
Change Management ........................................................................................... 553

12 13
Contents

9.3.2 Logistics and Supply Chain Change Management ...................................... 556

9.3.3 People and Process Change Management .................................................... 557
9.4 Technical Skill Sets Needed for Industry 4.0 Adoption ......................................... 561

9.5 Tips and Strategies for Industry 4.0 Program Management .............................. 562
9.5.1 Key Reasons for Failures of Industry 4.0 Initiatives .................................... 562
9.5.2 Financial Parameters to Review for Industry 4.0 Investments ............... 563
9.5.3 Pitfalls to Avoid in Industry 4.0 Programs ...................................................... 565
9.5.4 Tips to Avoid Budget Overrun for Industry 4.0 Programs ......................... 567
9.6 Summary ................................................................................................................................... 570

Conclusion ............................................................................................................................................... 571

The Authors ............................................................................................................................................. 579
Index .......................................................................................................................................................... 581

14
Index
2D visual navigation ............................................ 232
360 degree view of assets .................................. 399
3D animations ....................................................... 458
3D data ...................................................................... 458
3D design ................................................................. 247
3D model ........................................................ 458, 509
3D printing ......................................................... 48–49
5G network ................................................................. 50
6G network ................................................................. 50
A Asset model ............................................................ 386
acatech Industrie 4.0 Maturity Index ........... 526
assessment .......................................................... 537
culture .................................................................. 535
digital capability .............................................. 530
dimensions ......................................................... 529
dynamic collaboration .................................. 534
information processing ................................. 532
information system ......................................... 531
organizational structure ............................... 533
resources .............................................................. 529
social collaboration ........................................ 536
stages .................................................................... 526
structured communication .......................... 531
willingness to change ..................................... 536
Additive manufacturing ....................................... 48
Adoption plan ........................................................ 542
approaches ............................................................ 55
skills ....................................................................... 561
Advanced checklist assessment ...................... 394
Advanced planning systems ............................ 170
Agglomerative clustering .................................. 144
Agile development ............................................... 196
AI enterprise ........................................................... 150
Air emission management ............................... 438
AI revolution ........................................................... 134
Alternative components .................................... 265
Amazon S3 ............................................................... 162
Analog native organization .............................. 157
Analytics Builder ................................................... 178
Apache Hadoop ..................................................... 135
Apache Nifi .............................................................. 505
Apache Spark .......................................................... 135
Architectural scenarios ...................................... 500
Architecture ............................................................... 58
Artificial general intelligence (AGI) ............... 136
Artificial intelligence (AI) ......... 43, 136, 256, 477
Artificial narrow intelligence (ANI) ............... 136
Assessment Template app ................................ 388
Asset Administration Shell ..................... 122, 156
Asset Central app .................................................. 484
Asset central foundation .......................... 382, 472
Asset class and sub-class ................................... 386
Asset digital twin ..................................................... 98
Asset lifecycle ................................................ 141, 360
Asset management network ............................ 416
Asset master data management .................... 361
Assign Maintenance Order Operation
app ......................................................................... 379
Assign OEE Reason Code app ........................... 316
Augmented reality (AR) .............................. 46, 477
Automated production line ............................. 489
Automatic invoice processing ........................ 186
Automation ............................................................ 258
Autonomous guided vehicles (AGVs) .......... 294
Auto regressive integrated moving average
(ARIMA) ............................................................... 143
AWS ............................................................................ 142
AWS IoT ....................................................................... 90
Azure ......................................................................... 142
Azure Data Lake .................................................... 162
Azure IoT ..................................................................... 90
B
Batch management ............................................. 273
Batch number barcode ....................................... 274
Big data ........................................... 46, 129, 477, 513
BMW .......................................................................... 110
BOM management .............................................. 245
Bosch ......................................................................... 108
Breakdown maintenance .................................. 358
Budgeting ................................................................ 567
Bullwhip effect ...................................................... 109
Business entity recognition ............................. 184
Business intelligence .......................................... 163
Business partner ................................................... 370
Buyoff ........................................................................ 316
C
CAD integration .................................................... 206
Case management ............................................... 206
Categorical analysis ............................................. 139
581
Index
Cell-based manufacturing ................................. 327
Change management ......................... 53, 517, 553
IT and OT ............................................................. 553
logistics ................................................................ 556
people and processes ...................................... 557
roles ....................................................................... 559
Change records ...................................................... 209
Checklist Assessments app ............................... 393
Chemical approval ............................................... 428
Chemical management ...................................... 427
Chief digital office (CDO) ................................... 153
Chief information officer (CIO) ....................... 153
Classification .......................................................... 364
Classification systems ......................................... 206
Closed-loop .............................................................. 268
Closed-loop machine integration ........ 489–490
Cloud computing ..................................................... 45
Cloud connector .................................................... 471
Cloud processing ...................................................... 79
Cobots ........................................................................ 174
CodeArt ..................................................................... 103
Collaboration ................................................ 236, 420
Collaboration folders .......................................... 207
Collaboration projects ........................................ 208
Collaborative maintenance execution ........ 414
Collaborative network service ......................... 410
Collaborative robot (cobot) ................................. 47
Common taxonomy ............................................ 413
Complex assembly ............................................... 215
Compliance management ................................. 249
Compliance tasks .................................................. 447
Component digital twin ........................................ 97
Computational fluid dynamics (CFD) ........... 169
Computer-aided design (CAD) ............... 457, 487
Computer vision system ................................... 174
Concept development ........................................ 221
Condition-based maintenance ....................... 359
Configuration management .................. 207, 228
Configure Inspection Points app .................... 316
Configure Production Connectivity app ..... 336
Configure-to-order (CTO) ........................ 475, 484
Connected products ............................................ 236
Constrained Application Protocol (CoAP) ..... 74
Continuous improvements ....................... 55, 197
Conversational AI bots ....................................... 173
Convolutional neural network (CNN) .......... 145
Corrective and preventive actions
(CAPA) ................................................................... 447
Correlation analysis ............................................. 140
Cost and license model .......................................... 89
Crew management ............................................... 472
Cumulocity ................................................................. 90
582
Customer-centric production .......................... 257
Cyber-attack ............................................................ 157
Cyber-physical systems ........................................ 26
D Documents .............................................................. 387
Data acquisition ....................................................... 77
Data analysts ........................................................... 152
Data analytics ........................................................... 88
Data attribute recommendation .................... 185
Database as a service (DbaaS) ........................... 176
Database management ....................................... 152
Data-driven design ............................................... 196
Data engineer .......................................................... 152
Data governance .................................................... 156
Data integration ...................................................... 79
Data lakes ................................................................. 162
Data science ............................................................. 135
Data scientists ........................................................ 152
Data sources .............................................................. 50
Data steward ............................................................ 156
Data storage ............................................................... 88
Data volume .............................................................. 53
Decision support systems (DSS) ...................... 147
Decision tree model ............................................. 142
Deep learning .......................................................... 136
Deep reinforced learning ................................... 166
Define Robot Settings app ................................. 296
Demand forecast ................................................... 171
Demand management ........................................ 262
Demand processing ............................................. 468
Deploy Shop Floor Elements app .................... 341
Design Production Process app ....................... 338
Design Thinking ...................................................... 54
Device management .............................................. 88
Diagnostic analytics ............................................. 139
Digital champions ................................................. 132
Digital insights ....................................................... 398
Digitally interconnected .................................... 256
Digital native organization ............................... 157
Digital office ............................................................ 153
Digital shadow ........................................................ 527
Digital thread ............................................................ 36
Digital transformation ........................................ 134
Digital Twin Defined Language (DTDL) ........ 122
Digital twins ............................ 27, 94–95, 258, 363,
399, 404, 507
predictive analytics ......................................... 115
real-time monitoring ...................................... 114
reference architecture ..................................... 121
solution adopter journey .............................. 119
Discrete manufacturing ........................... 303, 475
Dispatching and monitoring ........................... 326
Dispatching and Monitoring 2.0 app .... 494, 497
Display Safety Relevant Info app .................... 432
Docker ....................................................................... 152
Downtime losses ................................................... 137
Dynamic routing ............................................ 32, 328
E Gartner ........................................................................ 85
EBOM ......................................................................... 210
Edge computing ............................................. 52, 349
Edge device ................................................................. 65
Edge processing ........................................................ 77
Edge storage ............................................................... 78
EHS in SAP S/4HANA ........................................... 423
architecture ........................................................ 454
benefits ................................................................. 455
EHS management ................................................. 384
EHSM metrics ......................................................... 451
Elastic cloud ............................................................ 135
Electronic and electrical CAD (ECAD) ........... 247
Embedded EWM ................................... 61, 282, 288
Emissions ................................................................. 438
Employee empowerment .................................. 419
Empowered people .................................... 368, 421
Engineering ............................................................. 223
Engineering change management ................ 206
Engineer-to-order (ETO) .................. 210, 475, 486
Enterprise asset maintenance ......................... 357
Enterprise product structure ........................... 225
Environmental sustainability .......................... 438
Environment management .............................. 425
Envision Digital ........................................................ 90
Equipment ............................................ 364, 386, 400
Equipment BOM .................................................... 365
Equipment warranties ........................................ 469
Ethical AI .................................................................. 190
Ethical Impact Assessment (EIA) .................... 191
Event-driven planning ........................................ 267
Execute Logistics Orders app ........................... 319
Explainable AI (XAI) models ............................. 167
Extended production engineering ................ 210
Extended production operations ................... 214
F 70, 130
Factory twin ............................................................ 100
Failure mode analytics ....................................... 401
Failure mode analytics validation ................. 403
Failure mode effects analysis (FMEA) ........... 385
FDA 21 CFR Part 11 ............................................... 157
Index
Finite element analysis (FEA) .......................... 169
Flink ........................................................................... 135
Ford Otosan ............................................................ 103
Frequency analysis .............................................. 139
Functional location .................................... 309, 363
G
Gateway ....................................................................... 65
Gaussian mixture models (GMM) ................. 144
GDPR ......................................................................... 157
Generative AI ......................................................... 136
Generative design ................................................ 168
Genetic algorithm ................................................ 147
Genetic algorithm models ................................ 172
Geographical Enablement Framework ........ 380
Geographic information system (GIS) ......... 380
Globalization ............................................................. 23
Goods issue ............................................................. 292
Google ....................................................................... 142
Gradient boosting algorithm .......................... 144
Graphical warehouse layout (GWL) .............. 278
Greenhouse gas (GHG) emissions ................. 440
H
Handling unit ........................................................ 274
Harmonized document management ... 205–206
Horizontal integration .......................................... 34
Hypothesis testing ............................................... 140
I
IAPM digital twin .................................................. 167
IBM Decision Optimization ............................. 148
Idea management ................................................ 221
Identify Risk app ................................................... 430
IDocs .......................................................................... 218
IIoT platform ............................................................. 83
Inbound warehouse processes ....................... 279
Incident data entry .............................................. 425
Incident management ....................................... 425
Indicator service ................................................... 340
Industrial Internet of Things (IIoT) ................. 43,
Industrial Internet Reference Architecture
(IIRA) ........................................................................ 75
Industrial revolutions ........................................... 24
Industry focus ........................................................... 87
InfluxDB ................................................................... 516
Information technology (IT) ..................... 87, 129
583
Index
Infrastructure as a service (IaaS) ..................... 135
Initialize Embedded Analytics app ................ 334
Integer programming models (IP) ................. 146
Integrated product and process
engineering ........................................................ 209
Integration .................................................................. 51
Integration platform ........................................... 505
Intelligent assets ............................................ 61, 355
Intelligent enterprise .......................................... 259
Intelligent factories ................................................. 60
Intelligent handover ............................................ 233
Intelligent processes ............................................ 194
Intelligent product design ................................ 198
Intelligent products ...................................... 59, 194
Intelligent technologies ..................................... 356
Intelligent workflows .......................................... 511
Internal routing ..................................................... 282
International Centre for Industrial
Transformation (INCIT) ................................. 519
International Organization for Standardization
(ISO) 27001 ............................................................ 74
International Society of Automation-95
(ISA-95) .................................................................... 74
Internet of Things (IoT) ................ 27, 40, 66, 129,
256, 303, 383
Inventory clerks .................................................... 467
Inventory levels ..................................................... 476
Inventory management ..................................... 469
IoT device management ....................................... 68
IoT devices .................................................................. 66
IoT gateway ................................................................ 76
IoT platform .............................................. 41, 67, 510
IP .................................................................................. 157
ISA-95 ............................................................... 300, 501
ISO 27001 ................................................................. 157
ISO 9001 .................................................................... 157
ISO code .................................................................... 264
IT integration .......................................................... 500
IT-OT strategy ......................................................... 153
J Manage Bill of Materials app ............................ 305
Job hazard analysis (JHA) ................................... 430
K Manage Carrier app .............................................. 311
Key performance indicators (KPIs) ............... 290,
421, 495
Kit-to-stock management ................................. 288
K-means clustering .............................................. 144
Kubernetes .............................................................. 152
584
L Manage Equipment Connectivity
Labor tracking ......................................................... 332
Lanner ........................................................................ 103
Leading indicators model management ..... 404
Learn, evaluate, architect, and deliver
(LEAD) .................................................................... 523
Legacy machines ................................................... 130
Linear asset management ................................. 380
Line Monitor POD app ........................................ 324
Liner regression ..................................................... 142
Lisp .............................................................................. 135
Live Monitoring POD app .................................. 333
Load management ................................................ 292
Load Resources with Components app ........ 321
Location .................................................................... 386
Logistics regression .............................................. 142
Lot size of one ........................................ 24, 484, 486
Low-code/no-code ................................................ 346
M
Machine learning .......................................... 43, 136
Machine learning engine ................................... 402
Machine learning frameworks ......................... 152
Maintenance management ............................... 371
Maintenance notification ........................ 268, 372
Maintenance orders ............................................. 372
Maintenance plan ................................................. 369
Maintenance Planner app .................................. 377
Maintenance planning ........................................ 371
Maintenance Scheduling Board app .............. 379
Maintenance task list ........................................... 369
Maintenance technicians ................................... 466
Make-to-order (MTO) ................................. 475, 479
Make-to-stock (MTS) ............................................ 479
Malfunction report ............................................... 373
Manage AI/ML Scenarios app ........................... 343
Manage Analytical Data Sets app .................... 343
Manage Automatic Triggers app ........... 336, 342
Manage Business Settings app ......................... 332
Manage Buyoffs app ............................................. 316
Manage Cancellations app ................................. 319
Manage Certifications app ................................. 312
Manage Custom Data app .................................. 312
Manage Dashboard app ...................................... 333
Manage Data Collection app ............................. 308
Manage Data Types app ...................................... 313
Manage Document Print Templates app ..... 315
app ............................................................... 337, 493
Manage Floor Stocks app ................................... 321
Manage Holds app ................................................ 320
Manage Integration Workflows app ............. 330
Manage Logistics Orders app ........................... 319
Manage Material Groups app .......................... 305
Manage Materials app ......................................... 305
Management of change ..................................... 436
Manage Next Number app ................................ 313
Manage Nonconformance Codes app .......... 312
Manage Nonconformance Groups app ....... 312
Manage OEE Reason Codes app ...................... 316
Manage OEE Time Model Configuration
app ......................................................................... 313
Manage Operation Activities app .................. 307
Manage Orders app .................................... 318, 323
Manage Plants app ............................................... 312
Manage Printer app ............................................. 315
Manage Resource app ......................................... 308
Manage Resource Assignments app ............. 321
Manage Resource Types app ............................ 309
Manage Risk Assessment Task app ................ 430
Manage Routing/Recipes app .......................... 306
Manage Schedules app ....................................... 377
Manage Set Point app ......................................... 310
Manage Shifts app ................................................ 309
Manage Staging 2.0 app ..................................... 321
Manage Standard Rates app ............................. 313
Manage Storage Locations app ....................... 310
Manage Time Tracking app .............................. 320
Manage Tools app ................................................. 310
Manage Tools Assignments app ..................... 320
Manage Transport Systems app ..................... 320
Manage User Assignments app ....................... 312
Manage Work Centers app ................................ 309
Manage Work Center Utilization app ........... 377
Manage Work Instruction app ......................... 308
Manufacturing .......................................................... 37
Manufacturing analytics platform ................ 132
Manufacturing change management .......... 213
Manufacturing data analytics .......................... 134
Manufacturing execution ....................... 214, 317
Manufacturing execution systems (MES) ... 270
Manufacturing planning ................................... 324
Manufacturing process planning ................... 250
Manufacturing reference structure .............. 211
Manufacturing trends ............................................ 23
MapReduce .............................................................. 135
Mass customization ................................................ 38
Index
Master data ............................................................. 263
Master recipe ......................................................... 307
Material flow system (MFS) .............................. 295
Material master ..................................................... 264
Material safety data sheet (MSDS) ................. 428
MBOMs ..................................................................... 211
MDP modeling ...................................................... 147
Measuring points ................................................. 366
Mechanical design management .................. 246
Message Queuing Telemetry Transport
(MQTT) .................................................................... 73
Meta domain model ............................................ 252
Metaheuristic algorithm model ..................... 172
Meter management ............................................ 472
MG Motor India .................................................... 105
MindSphere ............................................................... 90
MING stack .............................................................. 515
Mixed integer linear programming
(MILP) ................................................................... 146
ML engineers .......................................................... 152
ML models ............................................................... 136
Mobile Application Integration Framework
(MAIF) ................................................................... 471
Mobile push notifications ................................ 466
Model-based reference architecture ............ 160
Model-based system engineering
(MBSE) ......................................................... 224, 245
Model build ............................................................. 163
Model performance ............................................. 159
Model retrain ......................................................... 163
Modular design ..................................................... 196
Modular production ........................................... 327
Monitor Production Processes app .............. 342
Mosquitto ................................................................ 515
MQTT broker .......................................................... 502
Mrovides manufacturing data objects
(MDO) ................................................................... 496
Multi-layered neural networks ....................... 146
N
Natural language processing (NLP) ............... 173
Neural networks ................................................... 136
New product introduction (NPI) .................... 169
NIST Cybersecurity Framework ......................... 74
NLP accelerators ................................................... 148
Noise, vibration, and harshness (NVH) ....... 165
Nonconformance ................................................. 311
Non-linear programming model ................... 147
NVIDIA ...................................................................... 110
585
Index
O Process manufacturing ....................................... 475
Occupational health ............................................ 434
OEE Hierarchy app ............................................... 309
Omniverse platform ............................................ 110
One class SVM ........................................................ 167
Open Platform Communication Unified
Architecture (OPC UA) ...................................... 73
Operation Activity POD app ............................. 323
Operational risk assessment ............................ 430
Operational technology (OT) .................... 87, 129
Order POD app ....................................................... 323
Original equipment manufacturers
(OEM) ............................................................. 72, 410
OT integration ........................................................ 501
Overall equipment effectiveness (OEE) ....... 303
Overlay authoring tool ....................................... 494
Overlay Authoring Tool app ............................. 317
P Production Process Administration app ..... 341
Packing ...................................................................... 292
Pallet planning ....................................................... 292
Partnerships ............................................................... 89
People maturity ..................................................... 539
Percentile analysis ................................................ 139
Period end closing ................................................ 271
Permits ...................................................................... 368
Personas ................................................................... 261
Personnel number ............................................... 370
Physical inventory ............................................... 286
Pitfalls ........................................................................ 565
Plan, do, check, act (PDCA) cycle ..................... 518
Planning simulation ............................................ 267
Plant gateway ......................................................... 508
Plant maintenance ............................................... 208
Plant maintenance-process control system
(PM-PCS) interface ........................................... 367
Platform as a service (PaaS) .............................. 135
PLM in SAP S/4HANA .......................................... 205
POD Designer app ................................................. 314
POD plugins ............................................................ 322
Post-Production Reporting POD app ............ 323
Predictive analytics ............................. 33, 141, 384
Predictive asset maintenance .......................... 356
Predictive maintenance ........... 39, 257, 357, 359
Predict maintenance ........................................... 398
Pre-startup safety review (PSSR) ..................... 436
Preventive maintenance ............................ 39, 359
Principal component analysis ......................... 166
Process hazard analysis (PHA) ......................... 436
Process industry .................................................... 303
586
Process mapping ................................................... 197
Process maturity ......................................... 117, 539
Process parameters .............................................. 272
Process safety management (PSM) ................ 436
Product configuration ......................................... 246
Product data replication ..................................... 207
Product design ....................................................... 222
Product development ......................................... 513
Product document management ................... 247
Product genealogy ................................................ 275
Product innovation .............................................. 225
Production connectivity model ...................... 334
Production connector ......................................... 268
Production engineering and operations ..... 270
Production integration portal ......................... 212
Production monitoring ...................................... 215
Production planning ............................................ 267
Production planning and scheduling ........... 172
Production process design ................................ 339
Production process planning ........................... 213
Production resources and tools ...................... 267
Production runs ..................................................... 476
Production scheduling ........................................ 109
Production version ............................................... 307
Product lifecycle management
(PLM) ............................................................ 205, 488
Product parameters ............................................. 272
Product traceability .............................................. 273
Product variety ....................................................... 476
Product visualization .......................................... 248
Programmable logic controllers
(PLCs) ........................................................... 300, 507
Program management ........................................ 562
Project sponsors .................................................... 549
concerns ............................................................... 551
Project systems ...................................................... 207
Proof of concept (PoC) .................................... 54, 86
Proximity factor .................................................... 546
Publishing ................................................................ 163
Putaway processes ................................................ 284
Q SAP 3D Visual Enterprise Manufacturing
Quality checking ...................................................... 38
Quality management ... 208, 215, 222, 272, 513
Qualtrics .................................................................... 223
Quantum computing .......................................... 109
Quantum computing machines ..................... 158
R SAP Asset Strategy and Performance
Radio-frequency identification (RFID) ............ 65
RAMI 4.0 ...................................................................... 74
Random forest ....................................................... 144
Readiness and maturity assessment ... 518–519
Real-time plant visualization ........................... 492
Recipe management ............................................ 207
Recover Production Processes app ................ 343
Recurrent neural networks (RNN) .................. 145
Reference models ................................................. 160
Regional focus ........................................................... 87
Regression analysis .............................................. 140
Regulatory and permit compliance .............. 446
Regulatory compliance ...................................... 222
Reliability centered maintenance (RCM) .... 385
Remote service of products .............................. 498
Reprint Document app ....................................... 316
Requirements engineering ............................... 245
Requirements management ............................ 222
Resource planning ................................................ 171
Resource scheduling ............................................ 376
Risk and criticality assessments ........... 385, 388
Risk assessment ..................................................... 433
Road map plan ....................................................... 548
Robotic process automation ............................ 148
Robotics ............................................................. 47, 477
Root cause analysis .............................................. 140
Route optimization .............................................. 172
Routing ..................................................................... 306
Routing type ........................................................... 307
RPA bots .................................................................... 148
S Management ..................................................... 242
Safety data sheets (SDS) ..................................... 428
Safety engineers .................................................... 468
SAP for Qualtrics Experience Management ... 239
SAP 3D Visual Enterprise .................. 62, 423, 456
architecture ........................................................ 462
benefits ................................................................. 463
SAP 3D Visual Enterprise Author ................... 458
SAP 3D Visual Enterprise Generator ............. 457
Planner ....................................................... 209, 459
SAP 3D Visual Enterprise Viewer .......... 383, 460
SAP AI Core .............................................................. 187
SAP AI Launchpad ................................................. 188
SAP AI Services ....................................................... 184
SAP Analytics Cloud ................ 148, 178, 451, 514
SAP Ariba Sourcing .............................................. 240
SAP Asset Performance Management .......... 408
Index
Management .............................................. 62, 384
SAP Audit Management ........................... 447–448
SAP BTP, Cloud Foundry
environment ............................................ 126, 511
SAP BTP Talk ........................................................... 182
SAP Build Apps ...................................................... 125
SAP Build Process Automation ............. 125, 189,
271, 512
SAP Business Application Studio ................... 125
SAP Business Network ........................................ 480
SAP Business Network Asset
Collaboration ........................................... 240, 409
SAP Business Network for Asset
Management .............................................. 63, 499
SAP Business Network for Logistics ................. 63
SAP Business Network Supply Chain
Collaboration .................................................... 480
SAP Business Technology Platform
(SAP BTP) .......................................... 176, 269, 344
SAP Business Warehouse .................................. 182
SAP Commerce Cloud ......................................... 240
SAP Data Intelligence Cloud ............................ 182
SAP Datasphere .................................. 180, 455, 514
SAP Digital Boardroom ............................. 179, 451
SAP Digital Manufacturing .............. 61, 303, 383,
481, 485, 490, 496, 504
enhancements .................................................. 345
SAP Digital Manufacturing for insights ...... 333
SAP Document Center ........................................ 242
SAP Document Management .......................... 241
SAP Engineering Control Center .................... 241
SAP Enterprise Portfolio and Project
SAP Enterprise Product Development ........... 60,
220, 230, 485
SAP Extended Warehouse Management
(SAP EWM) ................................................. 277, 486
SAP Field Service Management ...................... 469
SAP Gateway ........................................................... 471
SAP HANA Cloud ......................................... 126, 176
SAP HANA Cloud, data lake .............................. 162
SAP Integration Suite .... 126, 263, 345, 347, 504
SAP Intelligent Asset Management ....... 62, 406
SAP Maintenance Assistant ............................. 374
SAP Manufacturing Execution (SAP ME) ...... 61,
302, 327, 353
SAP Manufacturing Integration and
Intelligence (SAP MII) ............................. 61, 353
SAP Manufacturing Suite .................................. 352
SAP Master Data Governance (SAP MDG) .... 178
SAP Mobile Platform SDK ................................. 126
587
Index
SAP Mobile Services ............................................. 470
SAP Plant Connectivity ................... 269, 353, 491
SAP Predictive Asset Insights .......... 62, 383, 398
SAP Print service ................................................... 315
SAP S/4HANA ............................................... 204, 481
SAP S/4HANA Asset Management ................ 273,
360–361, 370, 375
SAP S/4HANA for EHS environment
management ..................................................... 423
SAP S/4HANA for EHS workplace safety ..... 424
SAP S/4HANA for spatial asset
management ..................................................... 380
SAP S/4HANA Manufacturing ............................ 61
SAP S/4HANA Manufacturing for production
engineering and operations ................. 60, 302
SAP Service and Asset Manager .............. 62, 374,
423, 464
architecture ........................................................ 470
benefits ................................................................. 472
SAP Teamcenter ................................... 60, 244, 252
SAP Warehouse Robotics ................................... 295
SAP Workflow Management ............................ 149
SARA 312 .................................................................. 428
Scalability .................................................................... 89
Schedule Labor app .............................................. 325
Schedule Tools app ............................................... 326
Security ................................................................ 81, 89
Semantic interoperability .................................... 51
Sensors ...................................................................... 477
Serial number ......................................................... 365
Serial number management ............................ 274
Service lifecycle management ......................... 250
Service parts management ............................... 208
Service technicians .............................................. 467
Service Ticket Intelligence ................................ 187
Setpoints service ................................................... 341
Shop floor control (SFC) .................. 214, 274, 305
merge .................................................................... 333
split ........................................................................ 333
Shop floor integration ........................................... 29
Simple checklist assessment ............................ 392
Simulated annealing ........................................... 172
Simulation ............................................................... 477
Single cycle plan .................................................... 369
Single neural networks ....................................... 146
SIRI framework ...................................................... 520
assessment .......................................................... 523
maturity band ................................................... 524
organization ...................................................... 522
process .................................................................. 520
technology .......................................................... 521
TIER ........................................................................ 543
588
Index
Slotting process ...................................................... 287 V Warranty claim ..................................................... 368
Smart factory ............................................................ 40 Warranty management ..................................... 369
Smart Industry Readiness Index (SIRI) ......... 519 Value-added service (VAS) ................................. 289 Waste disposal ....................................................... 442
Software design management ......................... 247 Variant configuration ......................................... 207 Waste management ............................................ 442
Sparkplug B .............................................................. 123 Vendor ....................................................................... 132 Water/wastewater management ................... 444
Specification management ............................... 226 View Labor Schedule app ................................... 494 Wave management ............................................. 291
Spot planning ......................................................... 269 View Maintenance Schedule for Asset WIP transport ......................................................... 329
Staging ....................................................................... 292 app ......................................................................... 379 Workcell ................................................................... 328
Virtual commissioning ...................................... 102 Work center ............................................................ 361
Standardization ....................................................... 51
Virtual visualization ............................................... 32 Work Center POD app ......................................... 322
Statistical analysis ................................................. 134
Visual inspection .................................................. 343 Work centers and resources ............................. 265
Statistical process control (SPC) ...................... 164
Visual product lifecycle and asset Work clearance management ...... 368, 451, 469
Statistical quality control (SQC) ...................... 164
analytics ............................................................... 230 Worker safety ......................................................... 277
Stock lookup ............................................................ 469
Visual spare and service ..................................... 232 Work orders ................................................... 414, 469
Strategy plan ........................................................... 369
Visual work instruction ...................................... 231 Work permit management .............................. 449
Summary statistics ............................................... 138
Workplace safety ......................................... 424, 427
Supervised learning models ............................. 136 Workplace sampling and industrial
Supervisory control and data acquisition
W
hygiene ................................................................ 432
(SCADA) ................................................................ 300 Warehouse ............................................................... 275 World Economic Forum (WEF) ........................... 75
Supplier management ........................................ 249 Warehouse management system (WMS) .... 277
Supply chain .............................................................. 34
Support vector regression ................................. 143
Sustainability ............................................................ 39
Sustainable manufacturing .......... 257, 269, 367
SVM modeling ........................................................ 143
System twin ............................................................... 99
T
Technology maturity ........................................... 540
Technology vision ................................................... 88
Templates ................................................................. 337
ThingWorx ................................................................. 90
TIER ............................................................................. 543
cost profile ........................................................... 545
formula ................................................................. 544
Time series ............................................................... 139
Traceability .............................................................. 351
Transaction MIGO ................................................. 271
Transportation unit .............................................. 280
U
UNESCO ..................................................................... 191
Unified data strategy ........................................... 153
Unified namespace .................... 30, 156, 501, 503
Unit of measurement (UoM) ............................ 264
Unsupervised learning models ....................... 136
User-centric design ............................................... 196
589
 First-hand knowledge.

Dipankar Saha works as an IT architect and SME for Industry 4.0 and SAP manufacturing
solutions and has worked in several projects on product development, consulting, and
implementations in this domain working with global clients. Dipankar is an SAP-certified
associate enterprise architect. He has more than 20 years of experience in the IT industry
and has a bachelor’s degree in chemical engineering. Dipankar has coauthored several
books on SAP Manufacturing Integration and Intelligence (SAP MII) and SAP Manufac-
turing Execution (SAP ME) published by SAP PRESS and has written a few other books
and several popular technical blogs and articles on manufacturing and sustainability topics.

Chandan Jash has worked on several SAP manufacturing implementations and sup-
port projects globally in different roles using SAP MII and SAP ME and has implemented
Industry 4.0-based solutions. With more than 18 years of experience in the IT industry,
he has helped build SAP ME competency inside IBM and works as a technical architect
and SME for SAP ME and SAP MII implementation projects. Chandan is also a regular
participant in the SAP community by blogging, publishing articles, providing solutions,
and presenting at global SAP events. He has a bachelor’s degree in computer science and
engineering.

Soumya Das is an SAP manufacturing solution architect and SME with a rich and diverse
professional background spanning more than 18 years. With a bachelor’s degree in pro-
duction engineering and a master’s degree in project management, Soumya combines a
strong educational foundation with real-world expertise. Soumya is an alumnus of the
prestigious Indian Institute of Management, Calcutta. As an SAP Certified SAP S/4HANA
Manufacturing Consultant and Project Manager, Soumya has successfully led numer-
ous projects involving product solutioning, consulting, and implementations in the core
manufacturing and Industry 4.0 sectors, collaborating with global clients.

Anupkumar Ketkale is a seasoned Industry 4.0 thought leader and consultant with more
than a decade of invaluable experience at the forefront of technological innovation in
Industry 4.0 and a master’s degree in mechanical engineering from Michigan Technolog-
ical University, USA. With a profound understanding of the rapidly evolving landscape
of Industry 4.0, he has emerged as a trusted voice in guiding organizations through the
transformative journey of digitalization for manufacturing organizations and building
manufacturing CoE for IT organizations. Anupkumar’s extensive expertise encompasses
a wide spectrum of Industry 4.0 technologies, strategies, and their real-world applications for automobile,
textile, oil and gas, pharmaceutical, and CPGR industries spanning the globe.

Saha, Jash, Das, Ketkale

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