SAP Intelligent Factory

Enabling Industry 4.Now & Operational Excellence

David Dreyer, SAP NA COE, Digital Manufacturing & Industry 4.Now GTM
Aug 12, 2020
Table of Contents

• Market Drivers & Dynamics

• Industry 4.Now transformation

• Defining the Intelligent Factory

• SAP Intelligent Factory Solution Portfolio

• Accelerate Industry 4.Now

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Market Drivers and Dynamics
Industry 4.0 driving competitiveness in today’s challenging environment

Technology Enablers

Agility
Cloud computing
Individualized
products & services

Speed to market Autonomous systems

Product-Portfolio
Rotation
5G & Edge computing

Industrial Big Data Management

Sustainability Efficiency
Worker Safety Increase productivity
Additive Manufacturing
Sustainable operations Resource Utilization
Compliance Mixed-mode
production Augmented Reality

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Industry 4.0 in manufacturing today

Execution
• Enterprise Applications
• Enterprise Intelligence

• Manufacturing,
Orchestration & Execution
• Edge Intelligence Quality
• Automation
Technology
& Devices

Logistics

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Industry 4.Now enabling the Intelligent Factory

Industry 4.0 is all about the industrial

transformation using new digital
technologies …

… that makes it possible to

gather and analyze data across
machines and business systems …

… enabling faster, more flexible, and

more efficient end to end processes
to produce higher-quality individualized
goods at lower cost.

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Four Pillars of Industry 4.Now
Leveraging Intelligent Enterprise Technologies and Applications

Customer and
Employee Experience

The Intelligent Enterprise

Front Office Digital Supply Chain BackOffice

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

Intelligent Product
Intelligent Factory
Industry 4.Now Intelligent Assets
Empowered People

Artificial Intelligence

Data Driven Processing

IT/OT Integration

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The Intelligent Factory managing the Industrial Landscape
Connecting the heterogeneous automation floor to the business floor

Intelligent Factory

Maintenance
SAP ME SAP QIM

Intelligence
Predictions
Execution

Footprint
Quality
Insight

Carbon
Artificial
SAP MII SAP CAMS » Multiple vendors

SAP PCo SAP OEE » Multiple machines

Automation Connectivity » Harmonized protocols

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Intelligent Factory increases agility in responsiveness
Intelligent Enterprise

Collaboration with factories in real time across plan-to-

deliver processes increases resilient supply chain

Better Supply Chain visibility enables improved fill rates,

decreased buffer stock, real-time costing and on time delivery
Factory Factory Factory Customer

Transition from push to pull model enables reduced lead

times

Standard automated processes drive productivity Contract Factory

improvements and product-portfolio rotation Manufacturer

Responsiveness and supply continuity enables scaling and

time to value

Faster more efficient execution improves throughput,

increases quality, and reduces waste

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Driving Opportunity to reduce cost

Material & Resource Availability

Material and resource shortages are major drivers of schedule
delay and cost overruns

Quality & Root Cause Analysis

Disparate quality assurance systems for supplier performance,
receiving inspection and manufacturing break the end to end
quality value chain

Machine Learning & Analytics

3rd party applications cannot benefit from SAP’s Machine Learning
or Analytics platform without significant integration and
customization

Process Control & Automation

Process control and robotic process automation fall short due to
the break in the Manufacturing Value Stream

Plant Maintenance & Orchestration

Enable state-of-art business processes, machine to machine
communication and leverage new technologies to improve
automation capabilities

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SAP Digital Manufacturing for insights: Intelligent insights and analysis across
global plant operations
SAP Digital Manufacturing Cloud for insights (DMCi), SAP Manufacturing Intelligence & Integration (MII)

Adaption to any manufacturing process and global visibility

and analytics for key performance indicators across a single
plant or global operations

Full integration to combined business and operational data from

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

Manage and view harmonized data acquired from disparate

sources for better visibility into your plant operations

Business logic orchestration to enable customer-specific

processes for planning, execution, maintenance and quality

Manufacturing Performance Management with OEE Energy

Management to lower operational costs through an intuitive
tailored Worker UI

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SAP Digital Manufacturing Cloud for Execution: Schedule, automate processes and
resources to improve manufacturing efficiency, quality and productivity
SAP Digital Manufacturing Cloud for execution (DMCe); SAP Manufacturing Execution (ME)

Enable resource orchestration by dispatching and sequencing

operations to compress the manufacturing lifecycle and provide
real-time production performance tracking

Implement top-floor to shop-floor scenarios to achieve rapid

return-on-investment through out-of-the-box integration to
SAP solutions

Utilize intuitive user interfaces (UI) for production operators

and transform to paperless production, lowering cost and
increasing productivity.

React quickly to unexpected events by monitoring the entire

manufacturing process to optimize resources and speed
execution utilizing built-in intelligence

Collaborative integration to allow you to respond quickly

to unexpected events

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Manufacturing Engineering: Integrate and connect engineering and
manufacturing processes to meet production requirements
SAP S/4HANA for Manufacturing Production Engineering and Operations

Enhanced manufacturing collaboration throughout

the global enterprise leveraging latest design master
Product SAP S/4HANA Mfg for Manufacturing
data (digital twin) for consumption within production Engineering Production Eng & Ops Plant

Optimize engineering to manufacturing BOM’s and

manage routings and operations with 3D visuals, work
instructions, and data collection parameters to gain
process efficiency

Manage and analyze the impact of change to minimize

production disruption from revised routings, work instructions
and production orders

Streamline manufacturing build package creation, planning

and shop floor operations for global production
environments to reduce cycle time

Meet delivery expectations despite updates to existing

production orders triggered by engineering changes, quality
issues, or product configuration changes

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Solutions Demonstration

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 How will an Industry 4.Now
Discrete Industry business
look like?
In today’s demo, we showcase the development
of a double seated valve which is manufactured
using a sample manufacturing line. This product
is representative for any kind of discrete industry
product.
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SAP Design to Operate - High Level Building Blocks Discrete Industry
Design Plan Manufacture Deliver Operate

L5 LBN AIN
Business Networks

EPD Supply Chain Control Tower

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

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

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

L0-2 Plant Connectivity IoT and EDGE

Monitoring &
Process Control

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

Legend:

Deployed on Deployed in Deployed Deployed on

Mobile the Cloud On Premise the EDGE

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 Meet Your Cast for Today's Session

Susan, 37 Maria, 35 Betty, 44 Rafael, 28 Carol, 25 Derek, 27 Ala, 32 John, 44 Benno, 55 The AGV, 4 John, 44
Lead Production Reliability Planner Worker Worker Procurement Worker Warehouse Smart AGV Maintenance
Engineer Supervisor Engineer Clerk Engineer

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Discrete Industries – Design to Operate
Life cycle of a valve for batch production

DISCRETE ASSEMBLY Design product and assemble it

Design and operate a discrete
Double seated
unit to manufacture : →
valve

DESIGN PLAN PLAN MANUFACTURE MANUFACTURE DELIVER OPERATE

components procure components assemble and sell

Valve operated at the InterMiXX plant

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Double Seated Valve
Intelligent processes for innovative products

Control
Head

Valve

Personalized Plate
OIF 2020

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Manufacture (1/5)
Customer Order creation and Labor Scheduling

InterMixx wants to buy a

valve that is configured and
individualized to the Maria ensures the customer order Maria ensures the labor workforce is
company’s use case. A gets fulfilled in time and quality by effectively dispatched
purchase order is created in managing resource orchestration on
the Internet store. the shop floor

05 06 07

Create Customer Order Schedule Labor Dispatch Order

Maria, 35
Production
Supervisor

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Manufacture (2/5)
Manufacturing the Control Head

Let’s see if we can fix the

quality issue by some manual
rework

10
Rework

John starts component manufacturing with

the help of universal robot and putting the
respective cap from customer order. After the
Intelligent actors are checking
control head kit is prepared on the XPlanar
weight and visual checks
failed
printing the personalized plate.

08 09 ?
passed
John, 44 Manufacture component and print John, 44 Quality Control
Worker personalized plate Worker

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Manufacture (3/5)
Assembling the Control Head and the Valve

Component is waiting in
production buffer until
requested in time and
sequence from main
assembly line. Send
mobile workstation to
picking areas in order to
Mobile workstation has all
get material to assemble. Derek manually assembles
components to assemble
And the Valve is picked up stored. Now a dynamic the components. Production
from the warehouse by decision is made, which documentation and intuitive
second mobile assembly station to drive worker guidance are
workstation. to. provided.

11 12 13
Start main Dynamic Decision Assemble components
assembly process is taken Derek, 27
AGV, 4 Worker
Mobile Industrial Robot

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 Manufacture (4/5)
Final assembly and functional verification

The finally assembled product gets a Outbound logistics is

full functional test. Carol “calls” the next created and product is
product which will be supplied by the sent to the warehouse
AGV. Carol is supported by work where it is ready to be
instructions on wearables. delivered.

14 15
Perform functional test Move product to Warehouse
Carol, 25 Carol, 25
Worker Worker

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 Manufacture (5/5)
Track Manufacturing Performance and Overall Equipment Effectiveness

Maria has to ensure that the plant is Maria has to also ensure that the
running smoothly. So, she checks equipment are used effectively
for insights in the SAP Digital
Manufacturing Cloud.

16 17

Check insights Check overall equipment

Maria, 35 Maria, 35 effectiveness
Production Supervisor Production Supervisor

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Component Build

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Component Personalization

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Final Assembly

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Assembly Functional Test

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Put away to Warehouse

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Call to Action

Visit Industry 4.0 on SAP.COM [Link]

Read the SAP Industry 4.0 Strategy Whitepaper [Link]

Get further information with additional [Links] on the

following slide

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

Or see our complete list of local country numbers

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

feedback.

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Further Information
Strategy papers: Industry 4.0, SAP Digital Supply Chain (DSC),
S/4HANA, Industry 4.0 and Design-to-Operate Strategies

SAP Industry 4.0 Strategy • Industry 4.0

SAP DSC Strategy Whitepaper • Digital Supply Chain

• Supply Chain Planning and Delivery

SAP Design-to-Operate • Digital Manufacturing
Strategy Whitepapers • Intelligent Asset Management

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Thank you.
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