In Pursuit of the Perfect Plant

SAP Live and Local Webcast Tour ‘08 27 March, 2008

200 disparate shop floor info systems SPOT MARKET CUSTOMER Difficulty meeting tighter customer specifications – Can’t match quality to orders Inflexible production process contributes to Missed Opportunity . Plant Manager Planners Plant Manager Plant Manager MANUFACTURING PLANT Product Variability .Globally Distributed Manufacturing Is the New Norm Lack of predictability Production Processes Shared Information Orders Shipped Capacity erosion – high offgrade produced and wide quality swings VP BU Varying process conditions lead to CIO Can’t see business performance to plan. and recommend new plans to affect results Higher energy use VP Sales VP Manuf.Inconsistent quality: by plant. by shift MANUFACTURING PLANT MANUFACTURING PLANT Missed orders CUSTOMER Orders changed Field Sales Orders returned Customer Service NEW CUSTOMER Hidden capacity obscured by inefficient grade transitions & conservative operation No visibility – Can’t see plant wide production status due to 10 . by product.

EAM process are tightly linked to Manufacturing Processes Perfect Plant Components and Influencers Increased Profit Margins Demand Operational Planning Supply Manufacturing Execution is monitored and nearly event free due to proactive monitoring and automated event handling that is tightly coupled with EAM and the enterprise Asset Performance Manufacturing Execution Improved Quality Improved Compliance Operational Scheduling / Planning Adjustments are not driven primarily by unplanned events in manufacturing but rather by demand shifts and other factors. EAM processes are optimized and all asset content is available in a single source. Manufacturing is able to mange these changes more rapidly and reliably. Reduced Raw Material Costs What can really be controlled within the plant? .The 3 Pillars that must be aligned to enable the Perfect Plant Demand Adaptive Manufacturing Supply The Perfect Plant Asset Performance and Utilization are monitored and events are triggered automatically.

Perfect Plant Ecosystem Delivery MII Best Practice The Perfect Plant Hardware Valued Partners Software SAP ERP .

Enabling Adaptive Manufacturing through SAP MII Adaptive Manufacturing Manufacturing Operations SAP Manufacturing (SAP ERP) SAP MII enables adaptive manufacturing by synchronizing manufacturing “A Single Version Reliably produce operations with the of enterprise to deliver “a single version of the truth” and drive the Truth” to target with manufacturing excellence. across the year-to-year Enterprise process and cost improvement Manufacturing Intelligence Manufacturing Integration SAP MII Manufacturing Synchronization Manufacturing Excellence .

. EMI – Enterprise Manufacturing Intelligence.) to drive plant-toenterprise business process interoperability SAP NETWEAVER Other SAP Bus. KPIs and decision support to production personnel thru role-based dashboards Manufacturing Integration: A single ISA-95 compliant layer enabling SAP ERP connectivity into real-time plant floor apps.SAP Manufacturing Integration and Intelligence (MII) The SAP Manufacturing Integration and Intelligence (MII) application delivers: Manufacturing Intelligence: Real-time analytics engine that aggregates and delivers unified visualization of events. (MES. BW – Business Warehouse (from SAP) SFAC – Shop Floor Automation & Control. alerts. legacy apps. Solu tions Manufacturing Intelligence Dashboards SAP ERP SAP Manufacturing SAP SCM XI SAP MII Manufacturing Intelligence Manufacturing Integration SAP BI MES – Manufacturing Execution Systems. SFA.

in heterogeneous IT landscapes Enterprise SAP NETWEAVER Other SAP Bus.SAP MII synchronizes manufacturing operations with the enterprise. Solu tions Manufacturing Intelligence Dashboards • Plan work orders • Check resources • Create mfg plan • Scheduling • Release work order • Close order • Shipping and logistics SAP Manufacturing (SAP ERP) XI SAP MII Manufacturing Intelligence Manufacturing Integration              Real-time events/alerts Order status Charge rates Life of inventory Yields Completions and usage Start and stop times Quality and lab data Process history Best practice deviations Efficiency Downtime tracking Rework scrap rates SAP BI .

MII Dashboards – Plant Performance Dashboard .

SAP MII – Manufacturing Analytics .

SAP MII – Manufacturing Analytics .

implemented in 120 days Savings of $10 million in first year due to improved supply chain processes and visibility. 20 X ROI in the first two years . implemented in 120 days Deployed SAP xMII in over 30 plants globally for process improvement.Value from SAP MII: Partial Listing of Customer Success $14 million in annual savings due to quality cost savings and process improvements from extending QM Improved Overall Equipment Effectiveness (OEE) from 65% to 80%.

morale and quality of work life Performance . material.How SAP MII helps you address current manufacturing challenges…    Near-time visibility into customer orders across multiple plants – from scheduling to dispatching Proactively detect machine. analyze and control cost and target variances Balance manufacturing priorities against changing demand conditions-align with business objectives Visibility   Responsiveness     *KPI – Key Performance Indicator Improve manufacturing processes and customer satisfaction . rework. and expediting costs – consistently meet budgets Improve employee productivity.leverage new revenue opportunities Minimize inventory. labor. measure. overtime. and quality issues before customers do Evaluate real-time KPIs* and actual production costs and variances against targets Respond rapidly and cost-effectively to manufacturing exceptions Monitor.

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Our offer to you Aberdeen Whitepaper: The Business Value of Plant Floor Visibility SAP Whitepaper: In Pursuit of the Perfect Plant .

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