Sap RM

SAP Recipe Development
Best Practices for the Chemicals Industry

STRATEGY IMPLEMENTATION ACCELERATION
Nico Bonthuys, Director, PLM Global Services Linx/AS
2013 Linx/AS LLC | www.linxas.com

AGENDA
Introduction
SAP Recipe Development Overview
Developing a Strategy for Chemicals
Integration to SAP EHSM
Integration to Manufacturing
Implementation Recommendations
Close & Questions

What We Do
Our success lies in fully understanding the

people and processes that drive your
business. Only then can we apply our in-
depth technical knowledge to design and
deliver the right solution.
From streamlining product development to
improving corporate sustainability to giving
your users access to SAP when, where, and
how they want itwe make SAP run like
youve never seen.
SAP Consulting for Product Lifecycle

Management (PLM)
SAP Consulting for Environment, Health &

Safety Management (EHSM)
SAP User Experience (UEx) Consulting
Software Innovations

SAP PLM Process Industry Expertise
Over 15 years working with customers to develop PLM strategies

and implement PLM solutions.
96-2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
SAP EH&S
Zausner
RECIPE DEVELOPMENT RECIPE MANAGEMENT INTEGRATION OF FORMULATION SYSTEMS

SPECIFICATION MANAGEMENT EXPANDED USE OF EHS SPECIFICATION DATABASE

SAP Recipe Development Overview

Recipe Development Overview
Key Capabilities
Product and Process structure definition for formulations
Equipment Requirements
Process Parameters
Integrated Specification (Substance) development and management
Fully integrated component of SAP ECC
Full change management including sophisticated alternate and version management
Multi-level formulation management
Formulation Capabilities include:
Formula Optimization
Formula aggregation, modeling, and comparison
Product Labeling**
Compliance verification
Property calculations

Recipe General Data

Recipe Formula View

Recipe Alternate Formula Views

Recipe Process Structure

Recipe Equipment Requirements

Recipe Process Parameters

Recipe Calculations: Ingredients

Recipe Calculations: Composition

Recipe Calculations: Costs

Recipe Calculations: Costs

Achieving a Single Version of the Truth
Provides a Single Source of Product Data that Drives the Downstream Processes
SAP PLM
Specifications
Recipes
Materials/BOMs
Single Source of
Packaging Product Data
Documents
Product
Changes
Portfolio &
Projects

Developing a Strategy for Chemicals

Developing a PLM Strategy
How does SAP Recipe

Development fit into your
overall PLM strategy or
program.
Identify your PLM requirements from
innovation through development &
commercialization.
Identify and prioritize the PLM pain

points, gain opportunities and
concept requirements.
Evaluate your IT landscape as-is and

projected for the foreseeable future.
Evaluate the benefits of a unified

solution over best of breed point
solutions
Establish a strategic project roadmap

that balances immediate needs with
long-term PLM vision.
2013 Linx/AS LLC | www.linxas.com 19
Critical Integration Points
How does SAP Recipe Development

integrate with EHSM to enable a design
for compliance strategy?
Sustainable Innovation Operational Excellence
How does R&D hand over recipes to

manufacturing?
Sustainable Innovation Responsive Manufacturing

Challenges across the Product Lifecycle
ISSUE NUMBER 1
Disconnected Business
Processes and Data
Head of Head of R&D Head of Head of Head of

Marketing Procurement Manufacturing Service
Market Product Procurement Manufacturing Service

Reports Reports Reports Reports Reports
Maintenance &
Manufacturing
Project Mgmt
Management
Management
Ramp-Up to
Compliance
Compliance
Component
Production
Innovation
Recycling
Portfolio
Sourcing
Service
Check
Check
& Task
Product
Design
Authoring
Authoring
Tools
Tools
Authoring
Authoring
Tools
Tools
ISSUE NUMBER 2 ISSUE NUMBER 3

Missing single Insufficient Sustainability
source of truth Approach

Integration to EHSM

Common Compliances Issues Encountered in Product Development
ISSUES IMPACT
A significant amount of product data Wasted effort and time dealing with data
(formulas, finished product & raw accuracy issues.
materials) in multiple systems.
Inefficient processes drive delays in
No integration to SAP /ERP systems - compliance approval, which pose a
from development through competitive disadvantage with regard to
commercialization. cost & speed to market.
Processes in place not efficient, Undue exposure to regulatory &

resulting in manual entry & re-entry, compliance risks through lack of data
data redundancy, and prone to error. consistency, data unification & process
automation.
Where interfaces are created to avoid
data entry errors, potential points of Significant effort required to address
failure still exist. changes to products due to reformulation
and regulatory requirements
High volume of new and changed
formulations drive high workload for
Product Stewardship

Islands of R&D, ERP, and Compliance
Re-enter
data or
interface
EH&S Systems
R&D Systems
Re-enter Re-enter
data or data or
interface interface
SAP
This common scenario in chemicals industries creates areas of

risk to data integrity and operational inefficiency.
Comprehensive Product Development & Innovation Approach
Continuous Product and Service

Innovation:
The entire organization needs to ensure a
continuous stream of profitable innovation
Head of Head of Head of Head of Head of

Marketing Engineering/R&D Procurement Manufacturing Service
1
Product Intelligence
Project Management
Manufacturing
Management
Management
Maintenance
Product Component & Ramp-Up to
Innovation
Recycling
& Service
Portfolio
Design Task Sourcing Production
Embedded Product Compliance

3
Product Visualization and Collaboration
2
Authoring Tools
Integrated Product Embedded Product

Development: Compliance:
Connecting R&D with the Being sustainable starts with
Business simply being compliant
with existing regulations

Unified Solution of Integrated SAP Modules
SAP EH&S
SAP RD SAP ERP

Recipe Transfer to Product Stewardship

SAP ERP-EHS Integrated Business Process Flow
Product Safety (MSDS and Labels)
Label Packages
Maintain Product Process Customer Generate MSDS/ and Distribute
Safety Data Author Documents Order Labels, Documents MSDS
Product Safety Product Safety Customer Service Fulfillment Fulfillment
Mgr. Mgr.
SAP Maintain Product &

Generate MSDS Automatic MSDS
EHSM Substance Data Author Documents
/Labels Automatically Shipment
Repository
Integration with RD
Out-of-the-box Sales Order Inventory Sales and

Material Master
Integration Processing Management Distribution
Integration
Maintain Material
Customer Order Automatic Label Ship Product to
Master Data
SAP ERP Processed Printing Customer
Repository
Compliant Compliant
Label MSDS

SAP ERPEHS Integrated Business Process Flow
Substance Volume Tracking in Purchasing
Maintain Product Update Registration

Compliance Data Purchase Material Quantity Purchase Material Track the Volume
Compliance Expert Purchaser Compliance Expert Purchaser System
SAP Maintain Product &

Update the
EHSM Substance Data Check the Volume Check the Volume Track the Volume
Registration Quantity
Repository
Integration with RD
Out-of-the-box Material Master Purchase Order Purchase Order

Integration Integration Processing Processing
Assign to material Create Purchase Block Purchase

Purchase material
SAP ERP master order Order

Chemical Compliance Integration
Production Materials are the relevant objects throughout

Production Order the Supply Chain, i.e. are sold, purchased, manufactured
Material A | 10 kg
Material
MaterialAA Substance
Material AA
Goods Movement
Goods Receipt
Material A | 10 kg
SVT Composition
Purchase - Import
Component 01
Purchase Order
Client 4711 Substances are relevant for
10 | Material A | 10 kg Component 02
20 | Material B | 12 kg REACH and need to be tracked!
30 | Material C | 15 kg

Business Benefits
Significantly greater flexibility with addressing

changing regulatory compliance requirements
Reduction of compliance risk
Opportunity to automate checks and processes

focuses EHS staff on more value-added tasks
Single version of truth from R&D to Product

Stewardship to Manufacturing
Scalability to expand to other regions of the

world

Integration to Manufacturing

Typical R&D-to-Manufacturing Scenario

Product Structure Synchronization (RD to ERP)
Product Structure Synchronization

for Handover to Manufacturing
R&D Process Manufacturing
BOM
Synchronize
Process Order
Formula mBOM Requires:
Recipe BOM (plant)
Output Matl
1 2 3 PP-PI* Recipe keys:
Version
R&D Structures Features of PSS:
RM Recipe & Formulas
Introduction of Mfg data (plant)
Recipe Effectivity
Usage
Controlled release process

Reconciliation of differences
Update of Mfg BOM

Integration to Manufacturing (RD to MES)
Why this scenario doesnt always work for chemicals?
RD Recipes for chemical manufacturers often contain

more process detail that are required in PP-PI Master
Recipes
Requirement frequently raised for RD Recipe

transformation to MES (DCS and/or PLC)
Standard Integration/Interface from RD does not exist
Industry standards and ISA-88 and ISA-95

ISA-88 for Batch Processing
ISA-95 for Continious Processing
Integration Methods and Standards depends on MES and

Client specific chemical processes

Integration to Manufacturing/MES

Integration to Manufacturing ERP/MES
PI-PCS
PSS
XML/OXML/B2MML and other formats

ISA-88 - Batch Processing
ISA-95 - Continuous Processing

Implementation Recommendations

Process/Functional Design
Establish a blueprint prototype based on industry

standard processes.
SAP PLM RDS for Process Industries will provide a baseline

development system.
Limited process scenario.
Can augment RDS with partner extensions to better support to-be
scenario e.g.:
Linx/AS process accelerators include support for over 30
processes/sub-processes
Linx/AS functional accelerators include solutions to overcome

many industry-specific requirements, such as specification
workflow solution for collaborative design and approvals, data
collaboration (collection), etc.
Alternative is a hosted prototype.
Either way, involve business users from the beginning.

User Experience
Think Like a Product Developer

SAP Recipe Management/Development originally
developed as solution for food Industry
Need to configure/design experience for
chemical industry product developer
Formula Views
Calculations
Compliance Checks
Reduce clutter and leverage custom layouts

Again, get the business involved from the
beginning.

User Experience
Formula View - Adjust for Chemical specific use

User Experience
Recipe/Calculations - Adjust for Chemical specific use

Close & Questions

HEADQUARTERS:
920 Harvest Drive
Suite 150
Blue Bell, Pennsylvania 19422
United States
Nico Bonthuys phone:

fax:
610.992.9333
610.992.9338
Director, PLM Global Services email: info@linxas.com
Linx/AS South Africa:

Verona Office Park Unit 4
nbonthuys@linxas.com Cnr Malibongwe & MacArthur Str
Robindale, 2194
South Africa
Europe:
5th Floor West
14 Fenchurch Avenue
London
EC3M 5BS
UK
www.linxas.com

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SAP Recipe Development

Best Practices for the Chemicals Industry

2013 Linx/AS LLC | www.linxas.com

2013 Linx/AS LLC | www.linxas.com

Our success lies in fully understanding the

SAP Consulting for Product Lifecycle

SAP Consulting for Environment, Health &

2013 Linx/AS LLC | www.linxas.com

Over 15 years working with customers to develop PLM strategies

RECIPE DEVELOPMENT RECIPE MANAGEMENT INTEGRATION OF FORMULATION SYSTEMS

2013 Linx/AS LLC | www.linxas.com

2013 Linx/AS LLC | www.linxas.com

2013 Linx/AS LLC | www.linxas.com

Recipe General Data

2013 Linx/AS LLC | www.linxas.com

Recipe Formula View

2013 Linx/AS LLC | www.linxas.com

Recipe Alternate Formula Views

2013 Linx/AS LLC | www.linxas.com

Recipe Process Structure

2013 Linx/AS LLC | www.linxas.com

Recipe Equipment Requirements

2013 Linx/AS LLC | www.linxas.com

Recipe Process Parameters

2013 Linx/AS LLC | www.linxas.com

Recipe Calculations: Ingredients

2013 Linx/AS LLC | www.linxas.com

Recipe Calculations: Composition

2013 Linx/AS LLC | www.linxas.com

Recipe Calculations: Costs

2013 Linx/AS LLC | www.linxas.com

Recipe Calculations: Costs

2013 Linx/AS LLC | www.linxas.com

2013 Linx/AS LLC | www.linxas.com

2013 Linx/AS LLC | www.linxas.com

How does SAP Recipe

Identify and prioritize the PLM pain

Evaluate your IT landscape as-is and

Evaluate the benefits of a unified

Establish a strategic project roadmap

How does SAP Recipe Development

How does R&D hand over recipes to

2013 Linx/AS LLC | www.linxas.com

Head of Head of R&D Head of Head of Head of

Market Product Procurement Manufacturing Service

ISSUE NUMBER 2 ISSUE NUMBER 3

2013 Linx/AS LLC | www.linxas.com

2013 Linx/AS LLC | www.linxas.com

Processes in place not efficient, Undue exposure to regulatory &

2013 Linx/AS LLC | www.linxas.com

This common scenario in chemicals industries creates areas of

Continuous Product and Service

Head of Head of Head of Head of Head of

Design Task Sourcing Production

Embedded Product Compliance

Integrated Product Embedded Product

2013 Linx/AS LLC | www.linxas.com

SAP RD SAP ERP

2013 Linx/AS LLC | www.linxas.com

2013 Linx/AS LLC | www.linxas.com

Product Safety (MSDS and Labels)

SAP Maintain Product &

Out-of-the-box Sales Order Inventory Sales and